Groupe Renault - 2019 Universal Registration Document
RENAULT: A RESPONSIBLE COMPANY
ANNUAL GENERAL MEETING OF RENAULT ON APRIL 24, 2020
GROUPE RENAULT
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
RENAULT AND ITS SHAREHOLDERS
ADDITIONAL INFORMATION
RISK FACTORS
“property damage and operating losses”: the Alliance buys a P capacity of €2 billion per claim with sub-limits on certain types of guarantees, particularly natural disasters and problems with suppliers. Deductibles for the Group’s manufacturing activities may amount to €5 million per claim; “civil liability”: the Group buys a capacity of €260 million to cover P general civil liability and civil liability for products and repairs carried out by Renault Retail Group sales subsidiaries; in addition, specific “Environmental Liability” coverage of €30 million was purchased; “cyber” risks: the Group has “cyber” insurance coverage. P Taking into account insurance market trends, the Group may decide to review the suitability of this cover. Renault’s insurers partially reinsure these global programs with MRC, a captive reinsurance company wholly-owned by the Group for Renault risks.
MRC mainly operates as follows: “transportation and storage of vehicles in depots”: MRC covers up P to €10 million per incident with a maximum annual limit of €25 million; “property damage and consequential operating losses”: up to €30 P million per incident, with a maximum annual limit of €30 million; “civil liability”: up to a maximum annual commitment of €2.3 P million. Finally, some risks, such as defects covered by manufacturer’s warranties and vehicle recall campaigns, are not insured. The reasons for keeping deductibles high include the Group’s consistent policy of prevention, and a desire to make each risk-bearing entity more accountable. The insurance department is actively involved in defining the Group’s prevention and protection policy. Risks related to the political and economic situation Risk factors: economic sanctions against Russia in the event of a geopolitical P crisis; military conflict, emergency state or other factors of instability P affecting execution of warranty obligations on export markets; change of government policy related to export support. P The company carries out continuous monitoring of current political and economic events, search for new markets, redistribution of export volumes to the Customs Union countries and to nearby and remote emerging markets. Industrial accidents Risk factors: risk of production interruption because of equipment breakdown; P fire, loss of life or damage to property during the operation of P hazardous production facilities. To reduce the possible negative consequences and losses, in the event of emergencies, the company carries out capital repairs of manufacturing facilities and equipment, conducts a set of measures for labor protection and fire safety, including insurance against possible risks associated with the operation of industrial facilities.
01
Risk factors for the AVTOVAZ group 1.6.2 AVTOVAZ makes every effort to control the main risks related to the company’s operations. Analysis is performed based on the categorization of risks in use within Groupe Renault: risks related to strategy and governance, risks related to operations, and risks related to transversal functions. The company systematically monitors the possible risks inherent in both the main operating activities and the implementation of investment projects. The Company develops and applies a methodology and requirements for identifying, analysing and developing measures to respond to substantial risks.
Risks related to operations 1.6.2.1 Market risk The company is exposed to the following risks that may affect LADA sales volumes: overall decrease of sales of new vehicles in the world. On domestic P market, deterioration of economic conditions may lead to decrease in demand; rising prices for raw materials and services may lead to the need P to increase prices for products; increasing competition on domestic and foreign markets. P To increase its competitiveness, the company performs marketing analyses and promptly develops appropriate price solutions, carries out measures to modernize and upgrade the model range, to improve the quality and reduce the cost of the current model range, to optimize the export structure, and to search for new markets.
109
GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019
Made with FlippingBook - professional solution for displaying marketing and sales documents online