PSA_GROUP_REGISTRATION_DOCUMENT_2017

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

OFF-BALANCE SHEET COMMITMENTS AND CONTINGENT NOTE 17 LIABILITIES

Off-balance sheet commitments given in the normal course of business were as follows at 31 December 2017:

Notes

31 December 2017

31 December 2016

(in million euros)

Financing commitments > Operating commitments >

12.9 8.4

884

863

3,346 4,230

2,413 3,276

Manufacturing and sales compagnies

(1)

Finance companies

12

10

13.6

475

Of which Opel Vauxhall Automotive segment (1)

CONTINGENT LIABILITIES 17.1. Automotive equipment

Automotive business The customs agreement governing the automotive industry between Brazil and Argentina provides for the payment of penalties by the Argentine automotive industry should the average ratio of imports to exports vis-à-vis Brazil exceed a certain threshold over the 2015-2020 period. Penalties may be payable by the Group should the automotive industry as a whole and the Group not hit the required ratio. No provision has been funded due to the uncertainties surrounding developments in the automotive markets in Argentina and Brazil between now and 2020 and the steps that the Group could take. Representations and warranties were made to JSC Russian Railways (RZD) as part of its acquisition of the GEFCO Group from PSA in December 2012. At 31 December 2017, the Group had not identified any material risks associated with these representations and warranties. Under the logistics and transportation service agreements entered into by the PSA and GEFCO Groups, the Group gave guarantees regarding the satisfactory performance of the logistics contracts and a five-year exclusivity clause. An amendment signed in November 2016 supplemented these logistics and transportation service agreements. This amendment, which came into effect on 1 January 2017, extends the exclusivity clause until the end of 2021 and confirms the guarantees regarding the satisfactory performance of the logistics contracts given by PSA Group. At 31 December 2017, the Group had not identified any material risks associated with these guarantees. COMMITMENTS CONNECTED 17.2. WITH THE GEFCO GROUP

On 25 March 2014, the European Commission and the Department of Justice of the United States of America and on 27 November 2014, the Competition Commission of South Africa, initiated an enquiry covering certain suppliers of emission control systems on the basis for suspicions of anti-competitive practices in this segment. Faurecia is one of the companies covered by these enquiries. On 28 April 2017 the European Commission decided to terminate the investigation of certain suppliers of emission control systems initiated on 25 March 2014. The other inquiries are ongoing. On 19 May 2017, the Brazilian Competition Authority (CADE) initiated an inquiry concerning Faurecia Emissions Control Technologies do Brasil and some of its former employees, alleging anti-competitive practices in the Brazilian emission control market. Faurecia agreed settlements with claimants in the three ongoing class actions, which had been filed in the United States District Court for the Eastern District of Michigan against a number of suppliers of emission control systems, including various Faurecia Group companies, claiming anti-competitive practices involving exhaust systems. These settlements, for non-material amounts, for the amount of the defence legal fees, brought these class actions to an end. Two class actions involving similar claims were also filed in Canada but are at a very preliminary stage. In the event that anti-competitive practices are proven, possible sanctions include fines, criminal charges or civil damages. Faurecia is at present unable to predict the consequences of such inquiries and class actions including the level of fines or sanctions that could be imposed: therefore, no accruals were accounted for as of 31 December 2017.

RELATED PARTY TRANSACTIONS NOTE 18

Transactions with companies accounted for by the equity method are disclosed in Note 11.5. Other than these transactions, there were no significant transactions with other related parties.

Related parties are companies subject to significant influence consolidated by the equity method, members of the managing bodies and shareholders holding more than 10% of Peugeot S.A. capital.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT