PSA - 2019 Universal Registration Document

GROUPE PSA Activities and strategy

ACTIVITIES AND STRATEGY

1.3.

Business model  DPEF.A

1.3.1.

INPUTS CAPITAL

OPERATING ACTIVITIES

OUTPUTS

OUTCOMES

PRODUCTS

VALUE CREATION FOR STAKEHOLDERS

FINANCIAL Financial capacity to finance the economic development, either in-house or from financial markets INDUSTRIAL Manufacturing resources available for production, research and development, logistics. INTELLECTUAL Intangible assets such as intellectual property and organisational capital RELATIONAL Stakeholder relations : ability to share information, brands and reputation HUMAN Motivation of employees to be innovative and adhere to the values of the company

ECO-DESIGN

A GREAT CAR MAKER WITH CUTTING EDGE EFFICIENCY

DEVELOP PRODUCTS AND SERVICES

INVESTORS AND SHAREHOLDERS Dividend to be distributed

BUY AND MANUFACTURE

to shareholders: €1.23 per share*

CUSTOMERS Recommendation rate:

+4pts (purchase of new vehicles) and +6pts (after-sales) vs 2018

EMPLOYEES Redistribution to employees multiplied by 5.4 in six years

SERVICES A MOBILITY PROVIDER FOR A LIFETIME CUSTOMER RELATIONSHIP

USE

Raw materials

SUPPLIERS AND PARTNERS Joint innovation: more than 300 suppliers involved in projects to develop future technologies

SELL, DELIVER, AND MAINTAIN

HOST COMMUNITIES AND CIVIL SOCIETY Local sourcing rate: 89% in Europe

USED CARS SPARE PARTS AND AFTER-SALES SERVICES

MOBILITY SERVICES

LIFE FRIENDLY ENVIRONMENT 37% of the R&D budget devoted to clean tech

ENVIRONMENTAL Renewable and non- renewable environmental processes and resources.

RECYCLE

MANAGE PRODUCT END-OF-LIFE

* Dividend persharecalculated onthebasisof thetotalnumber of outstanding sharesof thecompany minusthetreasury sharesof thecompany as of 25 February 2020.Theactual dividend persharewilldepend onthenumber oftreasury shares heldattheex-dividendateandanyshares issued orcancelled prior to this date.

Main activities of the Group 1.3.2.

Groupe PSA’s operations are organised around three main segments: the Automotive segment, covering mainly the design, n manufactureand sale of passenger cars and light commercial vehicles under the Peugeot, Citroën, DS, Opel and Vauxhall brands;

the AutomotiveEquipmentsegment,comprisedof the Faurecia n Group,which specialisesin Interiors,Seating,CleanMobility,and cockpitelectronicsand softwareand advanceddriverassistance systems(ClarionElectronics); the Financesegment,corresponding to the BanquePSA Finance n Group(BPF),financessalesto customersof the Peugeot,Citroën, DS, Opel and Vauxhall brands and its dealer networks.BPF is classifiedas a financial institution.

The breakdown of revenue and adjustedoperatingincome byactivity isas follows:

Revenue

Adjusted operating income

2019

2018

Change

2019

2018

Change

(in million euros)

Automotive

58,943 58,553

390 243

5,037 1,227

4,466 1,263

571

Faurecia

17,768 (1,980) 74,731

17,525 (2,051) 74,027

(36) 100 635

Other businesses and eliminations*

71

60

(40)

TOTAL

704 6,324

5,689

Group sales (in thousands of new vehicles) -10.3% Including the activities of Banque PSA Finance not covered by the partnership signed with Santander Consumer Finance. * 3,479 3,878

Regardingsegmentinformation– businesssegmentsand principalmarkets– please refer to Note 4 to the 2019 ConsolidatedFinancial Statements(seeSection 5.6below). Information on the revenueand resultsof the variousoperating segments is presented in Section 4.1 below.

9 GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT