PSA_GROUP_REGISTRATION_DOCUMENT_2017

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

31 December 2016

Carrying amount

Maturity

Notional amount

2 to 5 years

Assets

Liabilities

< 1 year

> 5 years

(in million euros)

Currency risk Fair value hedges: Currency swaps, currency options and forward > foreign exchange contracts Cash flow hedges: Currency options and forward foreign exchange > contracts

65

(41)

820

820

-

-

3

(7)

561

445

116 22

- - - -

Cross-currency swaps > Trading instruments (1) Total currency risks Interest rate risk Cash flow hedges: Interest rate options > Total interest rate risks

- -

- -

22

-

2,048 2,040

8

68

(48)

3,451

3,305

146

1

(2) (2)

7 7

- -

7 7

- -

1

Commodity risk Cash flow hedges: Swaps >

22 22 91

(3) (3)

324 324

210 210

114 114

- - -

Total commodity risks

TOTAL

(53)

3,782

3,515

267

Of which: TOTAL FAIR VALUE HEDGES TOTAL CASH FLOW HEDGES

65 26

(41) (12)

820 914

820 655

-

-

259 - Currency trading instruments: derivative instruments not qualifying for hedge accounting under IAS 39. As IAS 21 requires receivables and (1) payables denominated in foreign currencies to be systematically remeasured at the closing exchange rate with any gains or losses taken to income, the Group has elected not to designate these receivables and payables as part of a documented hedging relationship, although their impact on income is the same.

Impact of hedging Instruments on income and equity (2) Impact of cash flow hedges (a)

2017

2016

(in million euros)

Change in effective portion recognised in equity Change in ineffective portion recognised in profit or loss

39 (5)

(10)

(8)

Effective portion reclassified to the income statement under “Cost of goods and services sold” Effective portion reclassified to the income statement under “Finance costs”

(13)

(27) (36)

(9)

Impact of fair value hedges (b)

2017

2016

(in million euros)

Change in ineffective portion recognised in profit or loss

(23) (23)

(37) (37)

NET IMPACT ON INCOME (LOSS)

The “Net gain (loss) on hedges of borrowings” presented in Note 12.2.A also includes gains and losses on economic hedges that do not qualify for hedge accounting under IAS 39.

213

GROUPE PSA - 2017 REGISTRATION DOCUMENT