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

Insurance against risks 1.6.2.3 As required by current legislation, AVTOVAZ has organized the compulsory insurance of civil liability as the owner of hazardous objects, as customs agent, and vehicle liability insurance. Due to requirements of regulating bodies, the company has organized civil liability insurance for capital construction objects, voluntary medical insurance for highly qualified foreign specialists, as well as for employees on international business trips. Operational risk insurance programs are implemented in synergy with the relevant insurance programs described in 1.6.1.

In accordance with Collective Agreement terms, the company has organized insurance coverage for the employees: voluntary medical insurance and accident insurance. Due to the performance of contractual obligations within the framework of the operational activities, the company obtained insurance of goods supplied for export and insurance of short-term accounts receivable for export. The choice of companies for the organization of insurance was carried out in accordance with the policy of the company in the field of risk insurance from among the largest insurance companies of the Russian Federation, included in the list of potential partners of the company, approved by the President of the company.

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Risk factors for Sales Financing (RCI Banque SA) 1.6.3 As indicated in section 1.5.3, the Sales Financing segment (RCI Banque) has its own risk management system in compliance with banking and insurance regulations. Under banking regulations, RCI Banque has been supervised by the European Central Bank on a consolidated basis since January 1, 2016. Risks arising from economic conditions Risk factors

RCI Banque’s credit risk is dependent on economic factors, particularly the rate of growth, the unemployment rate and household disposable income in the countries in which the RCI group has operations. Management procedures and principles In a complex economic environment, RCI Banque has put in place systems and procedures that respond to the legal and regulatory obligations that correspond to its banking status and allow it to globally apprehend all of the risks associated with its activities, by reinforcing the management and control systems. Regulatory measures might have a negative impact on RCI Banque and the economic environment in which the RCI Banque group operates. Management procedures and principles The RCI Banque group has procedures that enable it to gain an overall insight into regulatory developments referring to its activities and to ensure that the Group complies with the various regulatory requirements. Risks linked to the regulatory environment Risk factors

Risks linked to the Company’s

1.6.3.1

environment

Geographical risks Risk factors

RCI Banque has operations in several countries. It is therefore faced with risks linked to activities pursued internationally. These risks include, in particular, economic and financial instability, and changes in government, social and central bank policies. RCI Banque’s future results may be negatively impacted by one of these factors. Management procedures and principles RCI Banque’s geographical locations are chosen, in the framework of its growth strategy, to support manufacturers, and take into account the risks of instability which are inherent to a global approach. The scope of the financial policy extends to all of RCI Banque’s consolidated subsidiaries, including those whose refinancing is not centralized. Subsidiaries located in a country outside the euro zone for which RCI Banque deems the currency transfer and convertibility risk to be significant (in particular Brazil and Argentina) are generally refinanced locally to limit any cross-border risk or is subject to specific insurance ( e.g. in Russia).

Financial risks

1.6.3.2 Liquidity risks Risk factors

The Sales Financing business depends on access to financial resources: restrictions on access to liquidity might have a negative impact on its financing activity.

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019