PSA_GROUP_REGISTRATION_DOCUMENT_2017

ANALYSIS OF THE BUSINESS AND GROUP OPERATING RESULTS IN 2017 AND OUTLOOK Parent-company Results

Information regarding any restrictions on the use of capital 4.2.6.

Please refer to Note 15.1 to the consolidated financial statements at 31 December 2017.

Information regarding the anticipated sources of funds 4.2.7. needed to fulfil certain commitments

Please refer to Section 4.2.4 above.

PARENT-COMPANY RESULTS 4.3.

Peugeot S.A. performs senior management, oversight and supervisory functions and provides services for which it receives a flat fee. Peugeot S.A.’s assets mainly correspond to: equity investments in direct subsidiaries; „ treasury shares classified as marketable securities. „ Peugeot S.A. is also head of a tax group set up with its more than 95%-owned subsidiaries in France.

Other Financial Income was €5 million, stable compared with 2016. Reversals on provisions for impairment in value of equity investments and treasury shares totalled €20 million, versus €1,071 million in 2016. Financial expense for depreciation, amortisation and provisions amounted to €22 million, versus €104 million in 2016. Interest and similar expenses amounted to €119 million, compared with €151 million in 2016. After taking these items into account, net financial income for the year was positive at €245 million, versus a gain of €1,497 million in 2016. NET NON-RECURRING INCOME Net non-recurring income (see Note 20) of a positive €18 million in 2017, primarily consists of reversals of provisions for contingencies. Profit (Loss) of the Period Taking into account the net income tax benefit of €177 million, determined in accordance with the rules governing the tax consolidation of Peugeot S.A. and its 95% or more controlled subsidiaries, Peugeot S.A. reported €416 million in net profit, compared with €1,611 million for 2016.

Results

NET OPERATING INCOME Operating income – which primarily comprises management fees received from the main subsidiaries, reinvoiced personnel costs and rental income – amounted to €147 million in 2017, versus €244 million in 2016. The management fees are calculated as a percentage of the operating divisions’ revenue, and cover the operating expenses incurred by the Company for its corporate functions; those fees amounted to €89 million versus €112 million in 2016. These fees are invoiced to direct Peugeot S.A. subsidiaries based on the consolidated revenue of the division concerned. Operating expenses amounted to €171 million in 2017, versus €258 million in 2016, and mainly corresponded to payroll costs, other purchases and external charges. Thus, net operating income was negative, at €24 million compared with a negative €14 million in 2016.

Balance Sheet

ASSETS

Equity investments in subsidiaries and affiliates constitute the major share of non-current assets. Before deducting provisions, the gross value of equity investments was €18,955 million at 31 December 2017, an increase of €2,373 million over 2016. Impairments of equity investments totalled €644 million at 31 December 2017, unchanged compared with 2016. These movements are described in Note 5 to the Company financial statements.

NET FINANCIAL INCOME (EXPENSE)

Financial income consists largely of income from shares in subsidiaries and affiliates. Income from shares in subsidiaries and affiliates amounted to €360 million, compared with €676 million in 2016.

146

GROUPE PSA - 2017 REGISTRATION DOCUMENT