PSA_GROUP_REGISTRATION_DOCUMENT_2017

MESSAGE OF THE PRESIDENT OF THE MANAGING BOARD

Two years after the launching of our Push to Pass strategic plan, Groupe PSA is continuing to accelerate, is establishing new records – in sales, revenue and earnings – and is changing scale with the acquisition of Opel Vauxhall. Four years after experiencing a worrying economic situation, we now have sound fundamentals, and our earnings are strengthened daily thanks to the commitment of the teams who place efficiency, the satisfaction of our customers and the quality of our products at the heart of their concerns. For the last four years, our sales drive has been backed by the rigorous deployment of our core model strategy in support of an unprecedented product offensive, featuring the launch of six new SUVs in 18 months and the phased renewal of the light commercial vehicle range. All our new products are commercially successful, enjoying recognition by the experts. After the Car of the Year award obtained in 2017 by the Peugeot 3008, the Autobest prize was awarded in 2018 to the new Citroën C3 Aircross. Our Core Technology Strategy meets consumer expectations and places us on track to offer electric versions across our whole range of models in 2025. 2017 also marked a turning point in history of Groupe PSA, which now includes the Opel and Vauxhall brands in addition to the Peugeot, Citroen and DS brands, and our mobility brand Free2move. Constructing a European champion gives us strength to secure the foothold in our historic region, as well as providing a wonderful opportunity to reinforce our international positions by offering our customers the best of our know-how and expertise world-wide. This buoyant context has been made possible through mature social dialogue with the unions and through multi-year agreements, such as the “New Momentum for Growth” performance agreement signed in 2016 by five unions out of six, representing 80% of employees, or the new framework agreement signed in Germany with the IG Metall union and the Opel Works Council in 2017, in addition to the agreements covering all European countries. Group employees can be proud of these results and the progress made in 2017 which reflect both individual and collective commitment every step of the way. The excellent results obtained in 2017 thus afforded payment to employees of the fruits of growth and performance, through a redistribution which has been multiplied four fold in four years. Our shareholders will enjoy a dividend payment of €0.53 per share in 2018, which will be put to the vote of the Shareholders’ General Meeting on 24 April 2018. This direct result reflects performance in 2017, when the Group had already resumed payment of dividends the year before (of €0.48 per share).

However, running a business transcends achieving annual business and sales objectives, and also calls for forecasting skills. More than ever, we must be Darwinian and agile, leveraging the strength of our three markers: Financial performance and non-financial performance feed from one another: in September 2017, Groupe PSA became our industry’s leader in the Dow Jones Sustainability Index, and is included in all the world-leading SRI indices (1) ; p Responsibility, which guides us daily in committing ourselves to decisions for which we shall answer in the future. Our Group has a long-standing commitment to Corporate Social Responsibility. It has consistently renewed its endorsement of the principles of the ILO and the Global Compact, and supports the 17 Global Sustainable Development Goals published in September 2015 by the UN Member States, a roadmap for tackling issues of public concern on a world scale. In 2018, we shall continue to deploy our Global Framework Agreement on Social Responsibility signed with the IndustriAll trade-union federation, and we shall involve ourselves in the actions conducted and share in the results achieved; p Transparency, since responsibility cannot forego transparency in creating sustainable value. We will unhesitatingly overturn the codes by undertaking innovative actions with demanding stakeholders, as with our commitment, unique in the automotive industry, to publish in 2018 the nitrous-oxide emissions of our vehicles in real-life use, following on from the publication in 2017 of the findings at our brand sites of fuel consumption under real driving conditions. Groupe PSA is more than ever committed to creating value. We are steeling ourselves as of today to achieve the goals set for 2018 which will mark the end of the first phase of the Push to Pass plan and the first full year of implementation of the PACE! plan for Opel Vauxhall. As agents of our performance, we shall continue to seek optimum satisfaction for our customers, our shareholders, the Groupe PSA employees and, on a wider canvas, for our stakeholders, in order to make 2018 another successful year! To conclude, we shall live up to our mission in order to respond to the legitimate and growing demands for mobility, which is synonymous with freedom of movement. This is responsibility’s claim on us! p Performance, since performance is the only safeguard.

CARLOS TAVARES

(1) Socially Responsible Investment.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT