PSA_GROUP_REGISTRATION_DOCUMENT_2017

GROUPE PSA Activities and Strategy

Wholesale financing 1.3.1.3.3. Banque PSA Finance, via its subsidiaries, provides financing for new and demonstration vehicles and spare parts for the dealer networks of Peugeot, Citroën, DS, Opel and Vauxhall within the areas where BPF is established. As at 31 December 2017, wholesale financing for the Peugeot, Citroën and DS, as well as Opel Vauxhaull dealership networks represented 32% of BPF’s total loans outstanding, amounting to €10,916 million under IFRS 8 (loans outstanding of this type amounted to €61 million, or 18% of total loans outstanding, under IFRS 5). At 31 December 2017, financing of the Opel Vauxhall dealer networks amounted to €3,021 million under IFRS 8. As the financial partner of the dealer networks, Banque PSA Finance also helps the dealers manage, track and control their financial risks in line with country-specific developments. Insurance and services 1.3.1.3.4. In addition to retail lending, every year BPF expands its offering with insurance products (credit insurance, private health insurance, auto insurance, etc.) and automotive services coordinated with Groupe PSA’s brands (extended warranties, maintenance contracts, roadside assistance, etc.). Through all of its subsidiaries, PSA Insurance designs and distributes a full range of insurance products and services in collaboration with its own insurance companies or in partnership with major insurance carriers. In 2017, BPF sold 1,625,361 insurance policies and/or services within the Peugeot Citroën DS scope, up by +4.5%, or on average a little less than two contracts per customer financed. The contribution of this business to BPF’s recurring operating income was €198 million under IFRS 8 (€15 million under IFRS 5). 2017 was the eigth year running of sales growth for this strategic business. In addition, the “Push to Pass” plan is drawing on the digitalisation of the Group and its competitive teams in order to build: a product offensive enabling the launch of “one new vehicle per „ region, per brand and per year”. This product offensive revolves around a global vehicle design strategy (“Core model strategy”) incorporating target technologies (“Core technology strategy”); the Group’s international expansion and profitable growth in all its „ host regions; the expansion of the Group’s business activities, primarily in the „ areas of after-sales services and used vehicles, incorporating the development of multi-brand offerings with the aim of expanding its customer base. The Group is also expanding its activities to mobility services to meet the needs of its customers (“Core services strategy”), including car-sharing, connected services, leasing, fleet management and sharing.

At 31 December 2017, as at 31 December 2016, no collateralised financing was sought from the ECB and no assets were deposited with the ECB as collateral. At 31 December 2017, as at 31 December 2016, only the bond financing and a few non-euro-zone bank credit lines remained in the BPF balance sheet. This is due to the transfer or cessation of the securitisation operations carried on for the creation of the joint ventures with SCF, and the cessation in early December 2016 of its bank deposit activity (consumer savings) in Belgium. Following the redemption of the tranche that matured in April 2016, BPF had no outstanding bonds guaranteed by the French State. Financial services to end customers 1.3.1.3.2. Financial services to Peugeot Citroën DS as well as Opel and Vauxhall end customers represented 68% of Banque PSA Finance’s total loans outstanding, amounting to €23,188 million at 31 December 2017, versus €15,589 million at 31 December 2016 under IFRS 8 (under IFRS 5 presentation, loans outstanding of this type amounted to €270 million, or 82% of total loans outstanding). Banque PSA Finance serves both individuals and corporate fleets with: loans for the purchase of new and second-hand cars; „ short- and long-term operating leases (hire); „ finance leases (vehicles sold with a buyback commitment); „ an array of related services, such as insurance, maintenance and „ extended warranties. Spurred by a sustained focus on building customer loyalty for the Groupe PSA brands, BPF offers diversified financing products and services, as well as bundled offers, that together with the three brands provide a comprehensive range of mobility solutions. In 2017, BPF’s penetration rate among buyers of new Peugeot, Citroën, DS, Opel and Vauxhall vehicles reached 30.0% in vs. 30.8% in 2016. On 5 April 2016, Groupe PSA presented its strategic plan for profitable growth, “Push to Pass”, covering the period from 2016 to 2021. The “Push to Pass” plan has raised the Groupe PSA’s structural performance level and has set the following operational targets: deliver over 4.5% Automotive recurring operating margin (1) on „ average in 2016-2018, and target more than 6% by 2021; deliver 10% Group revenue growth by 2018 vs 2015 (2) , and target „ additional 15% by 2021 (2) . The Push to Pass plan marks a first stage towards Groupe PSA’s vision for itself: “a world-ranking car manufacturer with optimum efficiency, supplying standard-setting mobility services”, making the customer the core concern of its activities. This plan builds on the momentum of the previous plan, “Back in the Race”, in terms of operational excellence and differentiation between the Peugeot, Citroën and DS brands. The Group’s strategic trends 1.3.2.

Recurring operating income as a percentage of revenue. (1) At constant (2015) exchange rates. and at constant perimeter (excluding OV). (2)

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GROUPE PSA - 2017 REGISTRATION DOCUMENT