PSA_GROUP_REGISTRATION_DOCUMENT_2017

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

FINANCIAL ASSETS AT 31 DECEMBER 2017

NOTE 4

Loans & advances to invested entities (Note 6)

Other long-term investments (Note 7)

Long-term loans & receivables (Note 8)

Invested entities (Note 5)

(in million euros)

Cost at 1 January 2017

16,582.8 2,372.7

1,363.7

151.9

24.7

additions > disposals >

-

-

-

-

(1,363.7)

(1.0)

(18.2)

Cost at 31 December 2017 Impairment at 1 January 2017

18,955.5 (643.8)

- - - - - - -

150.9 (30.5)

6.5 (1.1)

additions > reversals >

(0.5)

-

(0.1)

- -

6.0

0.1

other changes >

-

-

Provisions for impairment at 31 December 2017

(644.3) 18,311.2

(24.5) 126.4

(1.1)

NET COST AT 31 DECEMBER 2017

5.4

SHARES IN SUBSIDIARIES AND AFFILIATES

NOTE 5

GROSS VALUES A. On 17 March 2017, Peugeot S.A. subscribed €80.0 million to a second increase in the share capital of PSA Ventures. On 5 July 2017, Peugeot S.A. subscribed €202.3 million, for 9,348,180 shares, to the increase in the share capital of BPF. On 31 July 2017, Peugeot S.A. acquired the shares of Opel Automobile GmbH for €1,129.3 million. On 19 December 2017, Peugeot S.A. subscribed €900.0 million to the increase in the share capital of Opel Automobile GmbH. The acquisition costs incorporated in the gross value of the equity investment in Opel Automobile GmbH amounted to €61.1 million. Peugeot Citroën DS Automotive Division 1) Peugeot S.A. owns automotive subsidiaries through four central companies, namely PSA Automobiles S.A., Automobiles Peugeot, Automobiles Citroën, Conception d’Équipements Peugeot Citroën, which are inseparable. The shares taken altogether had a gross value of €13,835.8 million at 31 December 2017. At year-end 2017, the net carrying amount of these investments, of €13,835.8 million, was compared with the market value based on the stock-market price, and the present value of the discounted future cash flows. These tests include the business of the Peugeot Citroën DS Automotive Division excluding China and the Chinese operations. The net carrying amount remained below one of these two values, and hence, no impairment was recognised. Opel Automobile GMBH 2) This operation was finalised on 31 July 2017. The fair value adopted for these shares is €2,090.4 million. It represents the purchase price, the €900.0 million subscription to the capital increase and the acquisition costs. CARRYING VALUES B.

Faurecia 3) At 31 December 2017 the cost value of Peugeot S.A.’s investment in Faurecia was €1,609.4 million. The investment by Peugeot S.A. (63,960,006 shares and 127,920,012 voting rights) represented at 31 December 2017 46.33% of the capital and 63.09% of the voting rights. The stock market value of the Faurecia shares held by Peugeot S.A. at 31 December 2017 was €4,165.7 million. This represented the share price paid in transactions between minority shareholders not leading to control. No impairment was recognised at that date as this value far exceeded their carrying amount. Grande Armée participations 4) At 31 December 2017, the gross value of the equity investment in that subsidiary was €408.9 million. The net carrying amount of the investment in this subsidiary was assessed on the basis of its adjusted equity. A provision for impairment in the amount of €0.1 million was recorded, bringing the impairment of the investment to €342.2 million. Peugeot Motocycles 5) The opening gross value of the shares in this subsidiary was €301.6 million and the net carrying amount was nil. The valuation of the shares in this subsidiary on the basis of its equity capital led to the recognition of a provision of €3.8 million for negative net assets. PSA Ventures 6) At 31 December 2017, the gross value of the shares in this subsidiary amounted to €100.0 million. The net carrying amount of the investment in this subsidiary was assessed on the basis of its adjusted equity. A provision for impairment of €0.4 million was recognised.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT