20 REGISTRATION DOCUMENT Including the annual financial report 18 GROUPE PSA - 2018 REGISTRATION DOCUMENT -1 CONTENTS MESSAGE OF THE PRESIDENT 2 KEY FIGURES 3 CONSOLIDATED FINANCIAL GROUPE PSA 5 STATEMENTS AT 31 DECEMBER 2018 143 1.1. History and highlights of the Company’s business 6 5.1. Consolidated statements of income 144 1.2. Organisational structure 7 5.2. Consolidated comprehensive income 146 1.3. Activities and strategy 9 5.3. Consolidated statements of financial position 148 1.4. Risk management and internal control procedures 20 5.4. Consolidated statements of cash flows 150 1.5. Risk factors DPEF.B 23 5.5. Consolidated statements of changes in equity 152 1.6. Vigilance plan 34 5.6. Notes to the consolidated financial statements at 31 December 2018 153 5.7. Report of the Supervisory Board: DECLARATION ON observations of the Supervisory Board EXTRA-FINANCIAL PERFORMANCE 37 on the Report of the Managing Board 2.1. Social responsibility: an integral part of and on the 2018 consolidated financial the Group’s strategy 38 statements 221 2.2. Embracing environmental issues 41 5.8. Statutory Auditors' Report on the 2018 consolidated financial statements 222 2.3. Societal commitment to sustainable development 57 PEUGEOT S.A. FINANCIAL 2.4. Human resources: driving Groupe PSA STATEMENTS FOR THE YEAR transformation 65 ENDED 31 DECEMBER 2018 227 2.5. Groupe PSA CSR performance 78 6.1. Income statement for the year ended 2.6. Report by the independent third party, 31 December 2018 228 on the consolidated non-financial statement included in the group 6.2. Balance sheets at 31 December 2018 229 management report 78 6.3. Cash flow statements for the year 2.7. Reporting scope, methodology and ended 31 December 2018 231 cross-reference tables 81 6.4. Notes to Peugeot S.A. financial statements 232 6.5. Company financial Results for the past CORPORATE GOVERNANCE 85 five years 246 3.1. Management and Supervisory Bodies 86 6.6. Statutory Audit Report on the financial statements 247 3.2. Compensation of corporate officers 114 6.7. Statutory Auditors’ Report on Related Party Agreements and Commitments 251 ANALYSIS OF THE BUSINESS AND GROUP OPERATING RESULTS IN INFORMATION ABOUT THE 2018 AND OUTLOOK 129 COMPANY AND ITS SHARE 4.1 Analysis of consolidated annual CAPITAL 255 results 130 7.1. Information about Peugeot S.A. 256 4.2. Financial position and liquidity 132 7.2. Information on the share capital 258 4.3. Parent-company results 134 7.3. Ownership structure 261 4.4. Major contracts 136 7.4. Corporate financial instrument markets 263 4.5. Capital expenditure in research & development 136 4.6. Recent events and outlook 141 ADDITIONAL INFORMATION 265 8.1. Persons responsible for the Registration Document 266 8.2. Historical financial information 267 8.3. Documents available to the public 267 8.4. Persons responsible for auditing the accounts 268 8.5. Cross-reference tables 269 Annual Financial Report elements are clearly identified in this table of contents with the sign AFR REGISTRATION DOCUMENT including the annual financial report The original French version of this Registration Document, which contains all of the information in the Management Report, was filed with the French securities regulator (Autorité des Marchés Financiers – AMF) on 26 March 2019, in accordance with the provisions of Article 212-13 of the AMF General Regulations. It may be used in connection with a financial transaction in conjunction with an Offering Memorandum approved by the AMF. It was prepared by the issuer and is the responsibility of the person whose Signature appears therein. It contains all of the information concerning the Annual Financial Report GROUPE PSA - DOCUMENT2018 REGISTRATION DE RÉFÉRENCE DOCUMENT 2016 1 A GLOBAL PRESENCE... MESSAGE OF THE CHAIRMAN OF THE MANAGING BOARD Three years after the launch of our Push to Pass pp Agility is essential to adapting our business to the employees worldwide strategic plan, we have demonstrated our ability seven mega-trends that will shape the future of our to perform well sustainably. In 2018, Groupe PSA industry(1). This value is embedded in all fields of our delivered again record results, led by its dynamic strategic plan: based on our Core Model Strategy, we efficiency drive and created value for its stakeholders. will have up to 116 product launches in all regions by The results demonstrate once again Groupe PSA’s 2021, and capitalise on a young range. Soon, we will resilience and its ability to overcome the challenges expand our geographic footprint, enter North America of a chaotic world. with Peugeot, India with Citroën, and move back into Russia with Opel, while increasing the international The Push to Pass plan is a first step towards achieving visibility of DS. The energy transition is our priority the Group’s vision to be a great global carmaker with and is driving our Core Techno Strategy: 50% of our cutting-edge efficiency and the preferred mobility range will be electrified by 2021 and 100% by 2025. provider worldwide for lifetime customer relationships. We are deploying our Free2Move mobility brand To achieve this vision in today’s uncertain world, we worldwide, expanding our offering in the aftermarket need to enhance our fighting spirit and boost our and becoming more actively engaged in the circular creativity. The Darwinian mindset we are developing economy. is key to adapting to this challenging environment and standing out from our competitors, leveraging pp Efficiency and effectiveness, to leverage the results our three core values: of all our operations and investments, to offer competitive mobility services and state-of-the-art pp as a global team, to boost our Win together, technologies and products to our customers, as a key performance and gain a competitive edge. In 2018, driver of sustainable growth. Groupe PSA was one of the most efficient OEMs, with a Group recurring operating margin of 7.7%. Thanks to Groupe PSA’s teams have no limit and, by embracing the results achieved in the past four years, the profits these core values, they are supporting the Group’s redistributed to employees have increased 4.5 fold in central purpose, which is to preserve freedom of five years and in 2019, our shareholders will benefit movement by providing safe, sustainable, affordable from a dividend payment of €0.78 per share, pending and enjoyable mobility. We are ready to make a the approval of the Annual Shareholders’ Meeting on positive contribution to the economy, society and 25 April 2019. It represents a pay out ratio of 25%, the environment, guided by a commitment to which will be increased to 28% next year. responsibility and transparency. CARLOS TAVARES Chairman of the Managing Board of Groupe PSA (1) Climate change, divergence of the markets, connectivity and the autonomy of products, digitalisation, changes in customer behaviour and the sharing economy. 2 GROUPE PSA - 2018 REGISTRATION DOCUMENT Implantations industrielles, R&D et commerciales des activités automobiles M POR CHIFFRES CLÉS M POR A GLOBAL PRESENCE... RUSSIA Kaluga(12) UNITED STATES OF AMERICA BELARUS UKRAINE RUSSIA JAPAN CHINA (12) (12) UZBEKISTAN (14) Mizushima Kaluga MEXICO (7) Xiangyang Jizzakh 2019 (12) UNITED STATES OF AMERICA MOROCCO Okazaki BELARUS Casablanca TUNISIA Wuhan(14) UKRAINE Kenitra 2019 Tunis(1) Shanghai / Wuhan / Shenzhen Delhi(16) Chengdu(14) JAPAN BRAZIL ALGERIA CHINA (2) (15) UZBEKISTAN (12) MEXICO Oran 2019 Shenzhen Xiangyang(14) Mizushima Jizzakh 2019 (7) INDIA Okazaki(12) (3) MOROCCOVIETNAM Hosur 2019 Porto Real Wukro(10) Chu LaiCasablanca(6) TUNISIA Wuhan(14) Kenitra 2019 Tunis(1) Shanghai / Wuhan / Shenzhen NIGERIA ETHIOPIA MALAYSIA Delhi(16) Chengdu(14) BRAZIL (9) (8)ALGERIA Kaduna (15) Gurun Oran 2019 (2) Shenzhen São Paulo URUGUAY KENYA (5) (4) INDIA CHILE Montevideo Thika (3) VIETNAM Palomar MANUFACTURING LOCATIONS Hosur 2019 Porto Real Wukro(10) Chu Lai(6) Automotive production plant NIGERIA ETHIOPIA MALAYSIA Kaduna (9) (8) in partnership Gurun ARGENTINA 211,013 São Paulo URUGUAY KENYA CHILE in the planningMontevideo stage (5) Thika(4) employees worldwide Palomar Components factory, casting in partnership ARGENTINAin the planning stage Assembly plant …A EUROPEAN LEADER in partnership in the planning stage MANUFACTURING LOCATIONS OTHER LOCATIONS Automotive production plant R&D centre UNITED KINGDOM in partnership Les inclusions ou exclusions au périmètre de reporting RSE sont précisées en § 8.4.1 NB : n’apparaissent pas les sites tertiaires,THE sièges NETHERLANDS sociaux, sites informatiques,POLAND les activités non automobiles, ainsi que les pays où les véhiculesEllesmere du Groupe sont commercialisés par un importateur. in the planning stage SALES LOCATIONS Port GERMANY Components factory, casting Luton Countries where the Group operates with Kolin(13) Gliwice BELGIUM in partnership a subsidiary that commercializes Tychy vehicles and / or mobility services CZECH Les inclusions ou exclusions au périmètre de reporting RSE sont préciséesin the en planning § 8.4.1 stage REPUBLICNB : n’apparaissent pas les sites tertiaires, sièges sociaux, sites informatiques, les activités non automobiles, LUXEMBOURG ainsiSLOVAKIA que les pays où les véhicules du Groupe sont commercialisés par un importateur. Countries where only mobility services of AUSTRIA Assembly plant FRANCE Trnava the Group are commercialized Aspern in partnership SWITZERLAND HUNGARY Szentgotthárd in the planning stage Partenaires industriels (cf. § 2.0.3.3.1) ITALY (1) STAFIM IndustrialOTHER LOCATIONS partners (2) Iran Khodro Vigo (3) SAIPA Zaragoza (1) STAFIM- (2)R&D centre Condor Electronics, Palpa Pro and l’Entreprise Nationale de Production de Machines-Outils - (3) CK BIRLA- (4) URYSIA - (5) EASA(4) Condor and NordexElectronics, - (6) Palpa THACO - (7) SC Pro and l’Entreprise Mangualde Uzavtosanoat - (8) Naza Automotive Manufacturing Nationale – (9) PAN de ProductionNigeria Ltd de Machines-Outils– (10) MIE Madrid Val di Sangro(11) (MesfinSALES Industrial LOCATIONS Engineering’s) - (11) FIAT - (12) Mitsubishi(5) CK Birla - (13) Toyota - (14) Dongfeng PORTUGAL Motor Corp.