PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

Electrification: an ambitious plan to roll out hybrid and electric technologies By 2025, 100% of the models sold by the Group worldwide will be available in electric or plug-in hybrid versions. To best support the deployment of electric vehicles, in July 2017, Groupe PSA created a department dedicated to electric vehicle programmes, and on 4 December 2017, it announced the creation of a joint venture with the Nidec Leroy-Somer holding company in the field of electric traction motors. As a result of this agreement, the design and production stages of the main components of the electric traction motor are based in France. Electric vehicles Since 2010, the Group has sold 31,200 electric vehicles worldwide. Its range, which covers both the PC and LCV segments (Peugeot iOn and Partner, Citroën C-Zéro and Berlingo) was expanded in 2017 with new versions of electric minivans for individual owners: Peugeot Partner Tepee Electric and Citroën e-Berlingo Multispace Groupe PSA is continuing its strategic cooperation with Bolloré, reflecting their common interest in sustainable mobility. Since 2016, the Rennes industrial site has produced the Citroën e-Mehari, a four-seater electric cabriolet equipped with lithium metal polymer technology batteries enabling it to run for 200 kilometres on one charge in urban use. In September 2017, the launch of the limited edition NOUVELLE E-MEHARI “Styled by Courrèges” was awarded the “Origine France Garantie” label and is an introduction to the new generation of E-MEHARI. To support its ambition to offer 100% of electric models by 2025, the Group is developing a range of electric vehicles with Dongfeng Motor. Based on an electric version of the CMP platform (e-CMP), it will spawn a new generation of versatile and spacious electric vehicles with ion-lithium battery technology, enabling them to run for up to 450km on one charge and offering ultra-rapid charging solutions providing an off-vehicle charge range (OVC) of up 12km per minute. Five electric versions will be marketed by 2021, the first of which in 2019. Plug-in hybrid vehicles The Group is developing a plug-in hybrid powertrain coupled with a petrol engine to support its global growth. It will emit less than 50g/km of CO 2 (or 2l/100km) in all areas combined, with a range of 50km in urban and suburban areas in full electric mode. Seven plug-in hybrid vehicles will be launched on a gradual basis between 2019 and 2021. To make them easier to use, hybrid plug-in vehicles will be supplied with a four-hour charging device with the option to quick charge in under two hours. Micro-hybrid vehicles: Stop & Start and e-HDi technologies Stop & Start technology allows the engine to shut down automatically when the vehicle is standing still or in neutral and to start up again instantly and noiselessly when reactivated by the driver. As a result, it helps to reduce carbon emissions by up to 15% in city driving. Introduced by the Group in 2004, this technology is now deployed across almost the entire fleet of Peugeot, Citroën and DS vehicles in Europe and across over 40% of vehicles in China.

Ongoing optimisation of internal combustion engines The Group is rolling out innovative high-tech solutions to optimise internal combustion engine performance: downsizing (reducing engine size and number of cylinders); „ increasing torque while reducing maximum power, thereby „ lengthening the power and torque bands and increasing fuel efficiency; reducing mechanical friction (oil, piston rings, oil pump, actuators, „ accessories, permeability, etc.); optimising combustion technology. „ Groupe PSA is preparing a new phase for the future of internal combustion engines by adding a 48 V mild hybrid linked to a small battery. This new generation of electric internal combustion engines (48 V Mild-Hybrid) facilitates an approximate 15% reduction in CO 2 emissions, for a low cost. Reducing petrol engine fuel consumption and exhaust emissions In less than ten years, Groupe PSA will have upgraded all of its petrol engine ranges, in line with its goal of reducing CO 2 emissions not only in Europe but also in other major markets, including China and Brazil. In 2017, the EB Turbo PureTech three-cylinder, 1.2 litre petrol engine, launched in 2013, won the International Engine of the Year Award for the third year in a row. It already emitted 18% less CO 2 than the previous generation of four-cylinder atmospheric engines. In 2017, it was significantly improved to boost performance and consumption (by up to 4%): introduction of a particulate filter, performance optimisation, reduced friction and introduction of a new turbocharger. To meet the growing demand from customers for petrol engines, the Group will double production between now and 2019. This engine completes the modular family of 3-cylinder PureTech petrol engines (1-litre and 1.2-litre) with many high-tech features unveiled by the Group in 2012, offering petrol vehicles emitting less than 100g/km of CO 2 in the non-turbo version and less than 110g/km with the turbo engine. Since 2006, Groupe PSA has marketed the EP 1.4 and 1.6 litre range of four-cylinder petrol engines. Reducing diesel engine fuel consumption and exhaust emissions In late 2013, the Group unveiled BlueHDi, a new exhaust line which due to its Selective Catalytic Reduction (SCR) after-treatment system, drastically reduces nitrogen oxide emissions (NO x ) and further improves the level of CO 2 emissions (by as much as 4% compared with the previous generation of diesel engines). In September 2017, Groupe PSA launched a new Diesel BlueHDi powertrain with a smaller 1.5l cylinder (compared to 1.6l previously), thus allowing it to reduce consumption. It has been improved to boost performance and power has increased to 130hp. Thus, Groupe PSA has not abandoned making improvements to the emissions levels of diesel vehicles, despite the reduction in sales of these vehicles. However, it is also preparing for the takeover by new electrified technologies which have less emissions.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT