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

RCI BANQUE RATINGS AT DECEMBER 31, 2019 RCI BANQUE GROUP’S PROGRAMS AND ISSUANCES

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The group’s issuances are concentrated on eight issuers : RCI Banque, DIAC, Rombo Compania Financiera (Argentina), RCI Financial Services Korea Co Ltd (South Korea), Banco RCI Brasil (Brazil), RCI Finance Maroc, RCI Leasing Polska (Poland) and RCI Colombia S.A. Compañia de Financiamiento (Colombia).

Issuer

Instrument

Market

Amount

S & P

Moody’s

Other

RCI Banque S.A. RCI Banque S.A. RCI Banque S.A. RCI Banque S.A.

Euro CP Program euro Euro MTN Program euro NEU CP (1) Program French NEU MTN (2) Program French NEU CP (1) Program French NEU MTN (2) Program French

€2,000m A-2 (negative outlook)

P2

R&I: A-1 (stable outlook) R&I: A- (stable outlook)

€23,000m BBB (negative outlook) Baa1 (stable outlook)

€4,500m A-2 (negative outlook)

P2

€2,000m BBB (negative outlook) Baa1 (stable outlook)

Diac S.A. Diac S.A.

€1,000m A-2 (negative outlook) €1,500m BBB (negative outlook)

Rombo Compania Financiera S.A.

Bond Program

Argentinian ARS 6,000m

Ba2.ar (under revision) Fix Scr: AA (arg) (negative outlook)

RCI Financial Services Korea Co Ltd Bonds

South Korean

KRW 1,610bn (3)

KR, KIS, NICE : A+

Banco RCI Brasil S.A. RCI Finance Maroc RCI Leasing Polska

Bonds

Brazilian Morrocan

BRL 3,303m (3) MAD 2,500m

Aaa.br(stable outlook)

BSF Program Bond Program

Polish

PLN 500m

RCI Colombia S.A. Compañia de Financiamiento

CDT : Certificado de Depósito a Término

Colombian COP 630bn (3)

AAA.co

Negotiable European Commercial Paper (NEU CP), new name for Certificates of Deposit. (1) Negotiable European Medium-Term Note (NEU MTN), new name for Negotiable Medium-Term Notes. (2) Outstandings (3)

RCI Banque (Europe scope) also has €4.5 billion of undrawn committed credit lines, €2.4 billion of assets that constitute eligible collateral for ECB monetary policy operations, €2.2 billion of high-quality liquid assets (HQLA) and €0.5 billion of short-term financial assets, allowing RCI Banque to secure the continuity of its commercial business activity for nearly 12 months without access to external sources of liquidity (centralized refinancing scope).

Foreign exchange risks Risk factors RCI Banque is exposed to currency risks which might have a negative impact on its financial position. Management procedures and principles Sales financing subsidiaries are required to refinance in their local currencies and therefore have no foreign exchange exposure. No foreign currency exposure is allowed in respect of RCI Banque refinancing, the trading room being used to ensure that all flows are hedged. RCI Banque’s residual exposure for other assets and liabilities ( e.g. accrued interest not yet due on foreign currency borrowings) is kept at a marginal level for both RCI Banque and Groupe Renault. At December 31, 2019, the RCI Banque group’s consolidated foreign exchange position amounted to €6.3 million. Lastly, equity and annual earnings for RCI Banque subsidiaries outside the euro zone are themselves subject to foreign exchange movements are not specifically hedged. Interest rate risks Risk factors RCI Banque’s operating profit may be affected by changes in market interest rates or rates on customer deposits.

Management procedures and principles Interest rate risk is monitored daily: sensitivity is calculated by currency, by management entity and by asset portfolio, thus verifying that each entity respects its individual imposed limits. Sensitivity to interest rate risk is measured using the same methodology throughout the entire RCI Banque group. The sensitivity consists of measuring the impact of a 100 bps rise in interest rates on the value of balance sheet flows. The system limits the Group’s global exposure and the exposure of each entity. In 2019, RCI Banque’s overall sensitivity to interest rate risk was kept below the limit set by the Group (€50 million). RCI Banque group is exposed to counterparty risk from its investments of surplus cash, and in its management of currency risk, interest rate risk and payment flows. Management procedures and principles Counterparty risk is managed via a system of limits fixed by RCI Banque, then validated by its shareholder as part of the consolidation of Groupe Renault’s counterparty risks. This risk is managed through daily monitoring and summary reports to management. Counterparty risk Risk factors

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019