PSA_GROUP_REGISTRATION_DOCUMENT_2017

ANALYSIS OF THE BUSINESS AND GROUP OPERATING RESULTS IN 2017 AND OUTLOOK Automotive Expertise to deliver useful technologies

ATTRACTIVE CARS 4.5.2.3. Brand differentiation 4.5.2.3.1 Groupe PSA’s R&D innervates the DNA of its three historic brands…

As proof of its technological maturity, Groupe PSA is the first car manufacturer to have obtained, in July 2015, the necessary French authorisations to allow its autonomous prototypes to travel on the open road then, in March 2017, for conducting tests with layman drivers. At the end of 2017, 20 Groupe PSA prototypes were travelling the roads of Europe. These drivers travelled over 150,000 km in autonomous driving mode. Two new prototypes also arrived in China at the year-end, and open-road travelling began. Additionally, in 2017, Groupe PSA signed a strategic partnership agreement with nuTonomy for the testing of fully autonomous vehicles in Singapore. Connected, autonomous cars that are 4.5.2.2.3. safe and reliable: a new electronic architecture Groupe PSA is designing a new electronic architecture as the nervous system of tomorrow’s connected, autonomous car: NEA “New Electronic Architecture”, presented at the Innovation Days in June 2017. This architecture imparts safety and reliability to connected, autonomous cars. NEA accesses all the car’s automation and connectivity functions „ with maximum operating dependability and data protection (cybersecurity). NEA’s design is ingenious and disruptive: „ it is modular, adjusting to our customers’ needs the degree of „ equipment sophistication, the vehicle’s onboard electrical and electronic capabilities, and the purchase cost; it is open-ended, so that innovations can be added without „ overhauling the electronic architecture, and can be offered to our customers rapidly. From 2020, all vehicles designed on the EMP2 platform will be „ equipped with NEA. This architecture will subsequently be phased in to all the Group’s cars.

Peugeot: Excellence, Allure, Emotion; „ Citroën: Optimistic, Human, Smart; „ DS: Avant-garde, Refinement, Technology; „

…and that of the two new brands: Opel: Innovation accessible to all; „ Vauxhall: Great Design and ingenious technology. „ The new body styles launched in 2017 illustrate this clear differentiation: for Peugeot: the new 5008; „ for Citroën: C5 Aircross and C3 Aircross; „ for DS: DS 7 Crossback; „ for Opel: Grandland X and Crossland. „ The in-car experience 4.5.2.3.2 Given the changes to the ways in which we use our cars, the driver and passenger experience has become a key element in the design of Groupe PSA cars. This experience notably involves new HMIs (human machine interface), capable of creating new relationships with our cars. In 2016, Groupe PSA opened its “User Experience Cockpit Team” workspace; a new approach to envisioning the in-car experience of the future. This approach has seen practical embodiments in 2017 on all the new models. Open Innovation initiative which links it to a wide range of partners that enable it to detect new trends, identify technological and/or scientific gems and to assist in its international expansion: The “individuals” ecosystem incorporates Group employees, customers, and users of mobility services in general. The aim is to involve customers in the innovation process, right from the beginning. In support of this approach, incubators were set up in France as early as 2015, followed by Latin America in 2016. The scoreboard in 2017 is 455 candidate projects and 19 transformed, including the 3D-printed parts project for the DS3 Darkside. The “academic” ecosystem focuses on scientific partnerships with the most advanced universities and laboratories in their respective fields. They are targeted so as to benefit from their expertise and explore ways to branch out into new research. In this respect, Groupe PSA created StelLab in 2010 to lead its scientific partnerships. StelLab is part of a network that today includes 17 OpenLabs and 6 academic chairs that are managed in direct collaboration with the PSA university.

Groupe PSA Innovation 4.5.3.

Innovation guarantees a genuine potential for differentiation in a demanding, fast-evolving market. Innovation enables Groupe PSA to stand out from the competition and bring to birth the car of tomorrow. Groupe PSA commands a portfolio of high-value innovations protected by industrial property rights, particularly featuring a large number of patents. In 2017, Groupe PSA published 1,021 patents in France, an increase compared to 2016 (930). This high number of patents is testament to the Group’s commitment to protecting and promoting its innovations. In fact, innovation is central to the Group’s strategy.

OPEN INNOVATION 4.5.3.1.

To increase the scope of opportunities available (reduction of development expenditure, detection of new trends and Time to Market acceleration), Groupe PSA structures its work around an

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GROUPE PSA - 2017 REGISTRATION DOCUMENT