PSA_GROUP_REGISTRATION_DOCUMENT_2017

GROUPE PSA Activities and Strategy

Interiors A world leader in this business, Faurecia designs and produces instrument panels, central consoles and door panels that meet both the expectations of car buyers and the requirements of car manufacturers. The trend towards a more networked vehicle that takes more of the burden off the driver is impelling Faurecia to develop innovative solutions, particularly in the areas of Smart Surfaces, Infotainment and Human-Machine Interaction (“HMI”). The contribution of expertise from such sources as TactoTek, Parrot Automotive or Jiangxi Coagent is helping to accelerate the development of these innovations. The Interiors activity accounted for 31% of Groupe Faurecia’s value-added sales in 2017. Clean Mobility The world leader in emissions control technologies, Faurecia engineers, manufactures and markets a range of complete exhaust systems corresponding to every market requirement. For compliance with increasingly stringent international standards, Faurecia boasts a solid portfolio of technology and innovation both for passenger cars and for utility models and lorries, including the ASDSTM innovative solution for reducing nitrogen oxide emissions. The “Clean Mobility” Activity accounted for 27% of the Faurecia group’s value added sales in 2017. Industrial footprint 1.3.1.2.2. Today, the Faurecia Group works with virtually all the car manufacturers, requiring a world-wide presence so as to be as close as possible to its customers. It can adapt its worldwide production facilities to fit the needs and expectations of car manufacturers. While two thirds of its facilities manufacture components and are therefore located to optimise production and logistics costs, the other third operate on a just-in-time basis. Customers 1.3.1.2.3. The Faurecia Group boasts a widely-diversified customer portfolio. In 2017, of the Faurecia Group’s main customers (representing over 5% of its value added sales) Ford accounted for 18.3%, followed by the Volkswagen Group with 17.8%, Renault-Nissan with 13.8%, Groupe PSA with 13.7% (including sales to Opel from August to December 2017), Daimler with 6.2%, GM with 5.9% (including Opel sales from January to July 2017), and FCA also with 5.9%. Closely involved in the sales policy of the Groupe PSA brands, Banque PSA Finance (BPF), directly and wholly controlled by Groupe PSA companies, works in 18 countries, alongside partners in most of those countries, to distributed financing and service offers designed to stimulate vehicle sales by the dealership networks for the Groupe PSA brands. Through its local operating entities, BPF: provides dealers of the brands with financing for their inventories „ of new and used vehicles, and of spare parts, along with other financing such as for working capital; offers individuals and businesses a complete range of financing „ and services, as well as savings products in France and Germany. BPF’s commercial offer will typically tie insurance and services into the financing package in order to best meet the increasing mobility needs of individuals or companies. Since 2015, BPF has instituted a business model based on cooperation agreements, featuring two major partnerships in BANQUE PSA FINANCE 1.3.1.3.

Europe, with the Group Santander for the Peugeot, Citroën, DS brands, and with BNP Paribas Group for the Opel and Vauxhall brands. The governance scheme deployed under these cooperation agreements means that loan decisions are independent of the brands, while also allowing the development of commercial offers that are appropriate, innovative and fully supportive of the Push to Pass growth plan. On its principal markets, Banque PSA Finance carries on business through joint ventures: a partnership with Santander Consumer Finance (SCF) begun in „ 2015 in 11 European countries with 10 JVs (Germany, Austria, Belgium/Luxembourg, Spain, France, Italy, Netherlands, Poland, United Kingdom, Switzerland), a commercial agreement in Portugal and a JV with Banco Santander Brasil in Brazil. Excluding financing business, two subsidiaries jointly held between BPF and SCF were started up in Malta in 2015 as insurance companies; a partnership in the form of a single JV between Groupe PSA and „ BNP Paribas, started up in 2017, with the acquisition of the Opel Vauxhall financing business, and operating in eight main countries (Germany, the United Kingdom, France, Italy, Belgium, the Netherlands, Switzerland and Austria). Outside Europe, BPF also conducts its Business in the form of joint Arrangements: in China , through Dongfeng Peugeot Citroën Automobile Finance „ Co. (DPCAFC), a company of which 25% is held by BPF, 50% by DPCA and 25% by Dongfeng Motor Group. DPCAFC’s results are consolidated in the accounts of BPF using the equity method; in Argentina, BPF finances end customers through PSA Finance „ Argentina Compania Financiera, a 50%-held partnership with a subsidiary of Groupe BBVA. This company’s operations are managed by BPF, with the partner providing half the refinancing of loan production. In 2017, a new insurance activity was started up in partnership with BNP Paribas; in Turkey with TEB/Cetelem; „ in Mexico with BNP Paribas. „ Or acting Alone: in Russia, in both the banking and the new leasing business, which „ began in 2017. For more information on the implementation of the legal transactions in each country of the Cooperation, please refer to BPF’s Annual Report at www.banquepsafinance.com. Refinancing strategy 1.3.1.3.1. Following the establishment of the partnership with Santander, the financing required for these jointly-held entities is no longer BPF’s responsibility. Since the last launch on 1 October 2016, BPF finances only the activities outside the scope of the framework agreement with SCF and outside Brazil, i.e. chiefly in Argentina, Mexico and Russia. In 2017, the joint acquisition of the Opel and Vauxhall captive financing companies by Groupe PSA and BNP Paribas was finalised. In this partnership, BNP Paribas Personal Finance handles the financing. For the financing of activities outside the scope of the partnerships with Santander and BNP Paribas Personal Finance, BPF relies on a capital structure and an equity ratio that are compliant with regulatory requirements, and are backed by the quality of the bank’s assets. Its financing is ensured by the broadest possible range of liquidity sources, matching of maturities of assets and liabilities.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT