PSA - 2019 Universal Registration Document

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Human resources: driving Groupe PSA transformation

ORGANISATION OFWORKING HOURS 2.4.2.3.

In every host country, working hoursare equal toor less than the legal work week or industry practices.

Short-time work DPEF.4  Short-timeworkprovidesleveragefor theGroupto avoidjob losses duringa periodof recessionin the automotivemarketsthat callsfor significantandrapidadjustment of activity. The Grouphas set up schemesfor modulatingworkinghours, also called banks of hours, in most countrieswhere it has industrialor logistics facilities. Thus, in these countries, working hours are determinedon an annualor multi-yearbasis. In 2019, the number of short time work hours amounted to 1,523,158 of which 706,817 for Faurecia.

Absenteeism DPEF.5  In 2019, based on 309 million hours worked, absenteeism for sickness stood at 2.9%. Paid absences for sickness amountedat 6,091,311 hourswithinAutomotivedivision,at 2,978,963 hourswithin Faurecia andat 12,033 hours within other activities.

Developing human capital 2.4.3.

Groupe PSAaims to offer the best opportunitiesfor development and employabilityto all its employeesand intends to build talent. The successof the Push to Pass plan is due to the managementof talentat eachlevel ofthe organisation. The aim is to allow each individualto express their talent on an individual and collective basis. The human resources ambition is summedup in the slogan: “Unleashingthe power of our talent to win”. The talent development programmes aim to constantly encourage initiative and creativity and to reward performance based onresults. TALENT MANAGEMENT  DPEF.10  2.4.3.1. Contributing directly to the Company’s strategy, the talent management implementedby Groupe PSAaimsto diversifyprofiles and experiences, identify talent more extensively within the organisation,assign young talent to key positions, support new businesses,protectexpertiseand know-how,promoteand develop localskills, andobjectify and rewardperformance. Groupe PSA talent management priorities are to identify and develop key talents, increase the number of women and internationalprofilesin top managementas a lever of performance, promote expatriation for high potentials while developing local talent, implement specific development actionsof key talents. A fundamentalpart of the TalentManagementCycle,TalentReview provides all levels of management (including the Executive Committee)withan opportunityto identifyand evaluatethe talents withinthe organisation to ensurethatsuccessionplansare readyfor all of our key and/or strategic roles. Development plans exist for all levels of employee within Groupe PSAand are updated as part of a mid-year professional development review, this action allows the Group to focus on specific development actions to help to reach operational objectives, e.g. career plans for key local talents or women, retention actions, annual promotions, etc.

The AnnualAppraisalis a fundamentalstrategyto assessindividual performance and development. Groupe PSA applies the same processgloballyfor all staff and managerlevel employeesusing a commonIT systemaroundthree key milestones:objectivesetting, professionaldevelopment review,annualappraisal. PROFESSIONAL TRAINING DPEF.10  2.4.3.2. PSA University, launched to support employees as the Group’s dynamic changes, is a powerful lever for performanceand the developmentof human capital within the Group. The purpose of PSA University is to pass on expertise and know-howto all the womenandmenworkingfor Groupe PSAworldwide.TheUniversity is committedto developingthe employabilityof employeesand contributing to cultural change, both of which are essential to ensuring success. PSA University is structured in four academies: Research & Development Academy, Industrial Academy, Sales & Marketing Academy and Corporate Academy. They act to implement job familiesobjectivesby providingan adequatelearningofferingand organizingthe rollout of this offeringaccordingto the prioritiesof the business lines concerned throughoutthe diverse countries. To support change, PSA Universityseeks to transformthe Group intoa “learningorganization”andgiveemployeesownershipof their owndevelopment.As partof the ongoingupdateof knowledgeand skills, employees have access to new educational resources, in particularthroughdigital training. The LeadershipAcademy,part of PSAUniversity,runs programmes thatare speciallydesignedfor managers.The“Leadership In Action” programme,which works on leadershipconceptsand is based on collective intelligence, was designed to help managers become motivating leadersfor theirteamswhocankeepupwiththe cultural changes under way by adopting new values and behaviors.This programme is implemented internationally,notablyin LatinAmerica andAsia.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT