PSA_GROUP_REGISTRATION_DOCUMENT_2017

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

Expenses recognised in the income statement F. These expenses are recorded as follows: service cost is recorded under “Selling, general and administrative expenses”; „ the impact of restructuring is reported under “Non-recurring operating income” or “Non-recurring operating expenses”; „ interest cost and the normative return on external funds are recorded under “Other financial expenses” and “Other financial income” „ respectively.

Pension expenses break down as follows:

2017

2016

United Kingdom Germany Other Total

United Kingdom Other Total

France

France

(in million euros)

Service cost Interest cost

(49) (24)

(62) (56)

(48) (26)

(14) (173) (7) (113)

(43) (36)

(10) (71)

(16) (69) (17) (124)

Normative return on external funds Effect of curtailments and settlements Total (before minimum funding requirement liability)

13

75

22

4 114

23 29

94

7 124 4 33

1

-

-

-

1

-

(59)

(43)

(52) (17) (171)

(27)

13 (22) (36)

Change in minimum funding requirement liability (IFRIC 14)

-

-

4

-

4

-

-

-

-

TOTAL

(59)

(43)

(52) (17) (171)

(27)

17 (22) (32)

SHARE-BASED PAYMENT 7.2. Stock options and performance shares are granted to Group management and certain employees under equity-settled share-based payment plans. These plans are recognised in accordance with IFRS 2 “Share-based Payment” . Employee stock options A. No plan was awarded between 2009 and 2017. The last plan expired on 19 August 2016. Performance share plans B. Peugeot S.A. performance share plan (1) 2015 performance share plan (a) A performance share plan was established in 2015. At the end of the vesting period on 31 March 2017, 2,019,000 treasury shares were delivered to French tax resident beneficiaries. As of 31 December 2017, 379,124 shares were potentially attributable to foreign residents; the relevant vesting period ends on 31 March 2019. The personnel expenses associated with this plan, measured in accordance with IFRS 2, was €4.4 million for the 2017, excluding payroll taxes.

2016 Performance share plan (b) A performance share plan was established in 2016 (see Note 6.2.B.(1).(b) to the 2016 consolidated financial statements). The allocation of performance shares is subject to a condition of presence within the Group at the end of the vesting period. Taking into consideration the performance targets, the shares will vest in two equal portions subject to continued employment on 3 June 2019 and 3 June 2020. At year-end 2017, 1,907,491 shares were potentially attributable to the beneficiaries of the plan. The personnel expenses associated with this plan, measured in accordance with IFRS 2, was €7.1 million for 2017, excluding payroll taxes. 2017 performance share plan (c) Plan characteristics Following the authorisation given by the Extraordinary Shareholders’ Meeting of 27 April 2016 and the Supervisory Board at its meeting of 27 April 2016, the Peugeot S.A. Managing Board adopted a performance share plan on 10 April 2017. This plan covers a maximum of 2,693,000 shares. The allocation of performance shares is subject to a condition of presence within the Group at the end of the vesting period. Vesting is subject to two performance conditions relating to the percentage of the Peugeot Citroën DS Automotive segment’s average recurring operating income (ROI) over the 2017-2019 period and Group revenue growth between 2016 and 2019 at constant exchange rates. In light of the objectives, the shares will vest in two equal parts subject to presence within the Company at 14 April 2020 and 14 April 2021.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT