PSA_GROUP_REGISTRATION_DOCUMENT_2017

PEUGEOT S.A. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 Notes to Peugeot S.A. financial Statements

Other marketable securities Other marketable securities consist of money market securities purchased under resale agreements. Interest income on these securities is recognised in “Financial income.” No impairment provisions are recorded for these securities if there is no tangible probability of default by the issuer or of loss expected at the time of purchase by a third party (firm commitment to buy at an agreed upon date). F. Untaxed provisions primarily concern reinvested capital gains on sales of shares in subsidiaries and affiliates qualifying for rollover relief under the former Article 40 of the French Tax Code and the tax spreading out of the acquisition costs on equity investments. G. Borrowings are stated at their nominal amount. Debt issuance costs are not capitalised but are expensed in full in the period when they are incurred. When the face value of non-convertible bonds is higher than the amount received by Peugeot S.A., the discount is amortised over the life of the bond. H. Company employees are entitled to length-of-service awards payable on retirement and supplementary pension benefits under defined contribution or defined benefit plans. UNTAXED PROVISIONS BORROWINGS RETIREMENT COMMITMENTS OPEL VAUXHALL ACQUISITION A. On 31 July 2017, Peugeot S.A. acquired the automotive businesses of Opel Vauxhall for €1,129.3 million of which €649.1 million was paid in the form of equity warrants (BSA) to the beneficiaries of General Motors. 39,727,324 equity warrants were issued, at a unit price of €16.34. They are exercisable as from the fifth anniversary of the resolution date and up to the ninth (9 th ) anniversary of their issue date, namely from 25 July 2022 until 25 July 2026. These warrants carry a right to the allotment of a maximum of 39,727,324 shares in the Company with a nominal value of €1 each, at the rate of one share for one warrant. SIGNIFICANT EVENTS NOTE 2

The Company has not elected to recognise its retirement obligations in the balance sheet. Further information on these is provided in Note 23

INCOME TAXES I. Peugeot S.A. and its over 95%-owned subsidiaries in France elected to file a consolidated tax return, in accordance with Article 223A of the French General Tax Code. The effects of Group relief recorded in the Company’s income statement comprise: the total income corresponding to the sum of the tax due by „ profitable subsidiaries; the net tax expense or tax benefit resulting from setting off the „ taxable profits and losses of the companies in the tax group; the income corresponding to any repayments from profitable „ subsidiaries to which tax savings were transferred in prior periods; any adjustments of income tax expense for prior periods; „ charges to provisions for contingencies set up to cover the „ estimated net income tax expense that may be due following periodic tax audits of subsidiaries in the tax group. CHANGES IN MEASUREMENT METHOD J. There were no changes in measurement method during the year.

DISTRIBUTION OF DIVIDENDS B. On 17 May 2017, Peugeot S.A. paid dividends to its shareholders of €430.9 million, equivalent to €0.48 per share. C. On 21 September 2017, CACIB and Peugeot S.A. entered into an equity futures contract in two tranches, the first of these being allocated to the completion of the Accelerate 2017 operation, and the second to hedging the future LTI plans. D. In the last quarter of 2017, Peugeot S.A. launched its second employee shareholding plan. This operation was finalised on 14 December 2017. Under the plan, its grantees were allotted 1,228,869 treasury shares at the subscription price of €16.35, and 279,646 shares as a bonus contribution by the employer. SHARE BUYBACK TRANSACTION ACCELERATE 2017

TANGIBLE AND INTANGIBLE FIXED ASSETS

NOTE 3

No additions to or removals of property, plant and equipment or intangible assets were conducted in 2017.

251

GROUPE PSA - 2017 REGISTRATION DOCUMENT