PSA_GROUP_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2017 Notes to the consolidated financial Statements at December 2017

Translation of transactions in foreign (2) currencies

Specific method (b) Certain subsidiaries outside the euro zone carry out most of their transactions in euros or US dollars, which is accordingly recognised as their functional currency. Non-monetary items in these subsidiaries’ accounts are translated at the historical exchange rate and monetary items at the year-end exchange rate. The resulting translation gains and losses are recognised directly in profit or loss. The Group does not operate in hyperinflationary countries within the meaning of IAS 21 “The Effects of Changes in Foreign Exchange Rates”. COMPOSITION OF THE GROUP 3.2. The Group consists of the Peugeot S.A. holding company, listed on Euronext, and its affiliates consolidated in accordance with Note 3.1. The Group’s operations are organised around five main segments (see Note 4): the Peugeot Citroën DS Automotive segment, covering the „ design, manufacture and sale of passenger cars and light commercial vehicles under the Peugeot, Citroën and DS brands. It mainly comprises wholly owned subsidiaries, as well as jointly controlled subsidiaries for the production of vehicles or subassemblies in Europe and for industrial and commercial activities in China. These jointly controlled subsidiaries are consolidated in accordance with IFRS 11 (see Note 3.1); the Opel Vauxhall Automotive segment, covering the design, „ manufacture and sale of passenger cars and light commercial vehicles under the Opel and Vauxhall brands. It mainly comprises wholly owned subsidiaries; the Automotive Equipment segment, corresponding to the „ Faurecia Group comprising the Interior Systems, the Automotive

In compliance with IAS 21, transactions in foreign currencies are translated into the subsidiary’s functional currency at the exchange rate on the transaction date. At each balance sheet date, monetary items are translated at the closing rate and the resulting translation adjustment is recognised in profit or loss, as follows: in recurring operating income, for commercial transactions „ carried out by all Group companies and for financing transactions carried out by the Banque PSA Finance Group; in interest income or finance costs for financial transactions „ carried out by the manufacturing and sales companies. Seating and the Clean Mobility businesses. Faurecia is listed on Euronext. Peugeot S.A. holds 46.3% of Faurecia’s capital and 63.09% of its voting rights which give exclusive control by the Group. The exercise of all the dilutive instruments issued by Faurecia would have no impact on the Group’s exclusive control; the Finance segment, corresponding to the Banque PSA Finance „ Group, which provides retail financing to customers of the Peugeot, Citroën, DS and Opel Vauxhall brands and wholesale financing to the brands’ dealer networks. Banque PSA Finance is classified as a financial institution. This mainly stems from the partnership between Banque PSA Finance and Santander Consumer Finance for the Peugeot, Citroën and DS brands as well as from the partnership with BNP Paribas for the Opel Vauxhall brands. The Group’s other activities are housed under “Other businesses”, which notably includes the Peugeot S.A. holding company, and minority stakes in the GEFCO Group as well as in Peugeot Scooters (Peugeot Motocycles) both consolidated by the equity method.

31 December 2017

31 December 2016

Fully consolidated companies Manufacturing and sales companies (1)

317

278

Finance companies

18

18

335

296

Joint operations Manufacturing and sales companies Companies at equity Manufacturing and sales companies

3

3

55 43 98

50 29 79

Finance companies (2)

CONSOLIDATED COMPANIES

436

378

39 new companies fully consolidated, of which 34 for the Automotive Division Opel Vauxhall. (1) 14 new companies accounted at equity, of which 12 for the Finance Division Opel Vauxhall. (2)

172

GROUPE PSA - 2017 REGISTRATION DOCUMENT