PSA_GROUP_REGISTRATION_DOCUMENT_2017

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

Breakdown of goodwill at end of period C.

31 December 2017

31 December 2016

(in million euros)

Net Automotive Opel Vauxhall CGU

1,810 1,216

-

Faurecia CGUs Faurecia CGU

1,218

172 122

172 124

Automotive Peugeot Citroën DS CGU Financing activities Peugeot Citroën DS CGU

1

-

TOTAL

3,321

1,514

Impairment tests on goodwill allocated to the Automotive Equipment CGUs are discussed in Note 8.3.

PROPERTY, PLANT AND EQUIPMENT 8.2. Accounting policies A. Cost (1) In accordance with IAS 16 “Property, Plant and Equipment” , property, plant and equipment are stated at acquisition or production cost. They are not revalued. Capitalised costs include the portion of specific tooling expenses incurred by the Group under cooperation agreements that is not billed to its partners. The cost of items of property, plant and equipment that take at least twelve months to get ready for their intended use includes related borrowing costs (see Note 12.2.A). Government grants are recognised as a reduction in the cost of the corresponding assets. Maintenance costs are expensed as incurred. Leased assets include vehicles leased to retail customers by the Group’s companies and vehicles sold with a buyback commitment, which are recognised according to the method described in Note 5.1.A.(1)(a). Assets acquired under finance leases, as defined in IAS 17 “Leases”, are recognised at an amount equal to the present value of the future lease payments, or to the fair value of the leased property, whichever is lower. A financial liability is recognised in the same amount. The assets are depreciated by applying the method and rates indicated below.

Depreciation (2) Standard method (a)

Depreciation is calculated on a straight-line basis to write off the acquisition or production cost of the assets, less any residual value, over their estimated useful lives. Property, plant and equipment generally have no residual value, except for rental vehicles. The main useful lives of property, plant and equipment are as follows:

(in years) Buildings

20 - 30

Material and tooling Computer equipment

4 - 16 3 - 4 4 - 7

Vehicles and handling equipment

Fixtures and fittings

10 - 20

Specific tooling (b) In the Peugeot Citroën DS and Opel Vauxhall Automotive segments, specific tooling is depreciated over the estimated lives of the corresponding models, which are generally shorter than the useful lives of the tooling concerned due to the frequency of model changes. In the Automotive Equipment segment, specific tooling is depreciated based on the quantity of parts delivered to the customer, provided that accumulated depreciation at each year-end does not represent less than the amount that would be recognised if the asset were depreciated on a straight-line basis over five years. The estimated useful lives of property, plant and equipment are reviewed periodically, particularly whenever a decision is made to halt production of a vehicle or mechanical sub-assembly.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT