PSA_GROUP_REGISTRATION_DOCUMENT_2017

GROUPE PSA Risk Factors

Off-balance sheet commitments are identified within each Group company and reported to the Consolidation Department. Asset control procedures are based on annual inventories of goods held by the Group as well as inventories of property, plant and equipment held at Group sites, based on cycle counts which ensure that each asset is counted, in general, at least once every three years. The inventories are governed by strict procedures concerning segregation of tasks and count controls to ensure that the results are reliable.

Investment and financing strategies and strategies for evaluating counterparty risks arising from financial market transactions are approved by the Finance Department. The Financial Communications Department, which reports to the Finance Department, is responsible for relations with investors and the financial markets authorities. It coordinates the work done by the various Group entities on preparing the annual Registration Document and ensures that the timetable for its preparation and publication is met, in conjunction with the Statutory Auditors. The Management Control Department is responsible for drawing up and presenting summary data used to analyse results and provide forecasts.

Examination of internal control procedures 1.4.6. for the preparation of this report

statements fulfil the quality criteria defined for each operational category in the application guide included in the above-mentioned Reference Framework. Since 1 August 2017, Groupe PSA has supported Opel Vauxhall in defining a scheme for managing its own risks, with the ultimate aim of incorporating those risks in the Groupe PSA scheme. As a result, Groupe PSA has implemented an action plan including a detailed roadmap, designed to fully include Opel Vauxhall within the Group’s risk management scope for the 2018 financial year and thus ensure consistent, consolidated presentation of information.

This report was based on the following main procedures: identifying all existing practices within the Group operating units „ and departments concerning risk analysis procedures, conduct of and regular updates to the procedures and analyses; verifying that Group internal control procedures and processes „ comply with the general principles of the AMF’s Reference Framework for Risk Management and Internal Control Systems; obtaining assurance at the level of the Finance Department – with „ input from the accounting, consolidation, financial communications and management control teams – that processes for the preparation and approval of the consolidated financial

RISK FACTORS 1.5.

Groupe PSA conducts its activities in an environment of radical changes for the automotive industry, changes with respect to technology, consumption patterns and new competitive forces in the automotive industry. It is therefore exposed to risks that, if materialised, could have a significant adverse effect on its business, financial position, earnings or outlook. This section sets out the main identified risks. The various operating units of the Group identify and assess risks and evaluate the related internal controls on an ongoing basis, in France and abroad (Faurecia has its own arrangements for these activities; for further details please refer to the Faurecia Registration Document available for consultation on its website www.faurecia.com), and report thereon to the Executive Committee

and to the Supervisory Board’s Finance and Audit Committee on an annual basis. In addition, the Group conducted a series of interviews with outside observers to obtain a realistic and relevant perspective as to its ability to address these risks in its environment. However, other risks may exist or occur, which are either not known to Groupe PSA at the date of this Registration Document or whose realisation has not been deemed likely to have a material adverse effect on the Group, its business, financial position, earnings or outlook. For more information on risk management, please refer to Section 1.4, of this Registration Document.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT