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

REGULATORY ENVIRONMENT

Directive 2000/53/EC of September 18, 2000 on end-of-life vehicles (ELVs) defines the measures to be taken to prevent and limit waste from end-of-life vehicles and their components, and to ensure that they are reused, recycled, or recovered. Vehicle and equipment manufacturers must take into account the dismantling, reuse, and recovery of vehicles in the design and production of their products, limit the use of hazardous substances, and integrate an increasing share of recycled materials into vehicles. The reuse and recycling rate for end-of-life vehicles must reach a minimum of 85% by weight per vehicle per year on average. The reuse and recovery rate must reach a minimum of 95% by weight per vehicle per year on average. Producers (manufacturers or importers) must set up ELV collection systems, and owners may drop off their ELVs at authorized treatment facilities only, at no cost to them (unless the vehicle is incomplete). Groupe Renault is subject to European competition law, which prohibits agreements that prevent, restrict, or distort competition. By way of exception, agreements limiting competition (in particular through selection of resellers or provision for exclusive terms for them) are authorized when they may contribute to improving the production and distribution of products or to promote technical or economic progress. The purpose of the European Commission’s block exemption regulations no. 330/2010 of April 20, 2010 and no. 461/2010 of May 27, 2020 , which are applicable to the distribution of new vehicles and the supply of spare automotive parts and to repair and maintenance services for motor vehicles respectively, is to exempt from the prohibition of cartels, agreements presumed to improve distribution without eliminating competition. The criteria for this automatic exemption depend on the market shares of the parties to an agreement (maximum threshold of 30%) and the absence of any marked restrictions on competition. As applied to the automotive sector, this exemption is in principle applicable to the selection by manufacturers of their network of authorized distributors and repairers. However, the presence of one of the following restrictions may prohibit the exemption from being applied: setting the price (fixed or minimum) at which distributors can P resell vehicles or spare parts (prohibition of resale price maintenance);

There is currently no need for producers to contribute to the economic balance of the sector, as the costs of processing ELVs is offset by the sale of stripped vehicles to approved shredders and parts and materials on the used vehicle, renovation and recycling market. In conclusion, European and global environmental regulations have changed significantly over the past 20 years, Groupe Renault is ensuring that the regulations that apply to it are identified as soon as possible and taken into account in its production system. New challenges mean that Groupe Renault must remain vigilant and continually reduce its impact on its resources and environment. Even though the European Union is still the leader in this area, countries like Korea, China, and India, which are strongly impacted by the scarcity of resources (water in particular) and increasing pollution (air and waste) are beginning to introduce more stringent regulations.

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European regulations applicable to the distribution of new 1.7.3 vehicles and spare parts

the distribution of geographic markets or customers between P distributors (market distribution); the ban on sourcing by authorized distributors from other P authorized distributors (restriction of cross-deliveries); the ban on the resale by authorized distributors of spare parts to P independent repairers for use in repair or maintenance services; and the ban on the use by authorized repairers of spare parts of a P quality equivalent to original parts for repair or maintenance services. Similarly, under Regulation no. 461/2010, any restriction concerning access by independent repairers to the technical information necessary for the repair and maintenance of vehicles is presumed to exclude the benefit of exemption from the selection by Renault of its network of authorized repairers. Regulation no. 330/2010 expires on May 31, 2022. Its effectiveness has been under evaluation by the European Commission since October 2018, and it will decide no sooner than the second quarter of 2020 whether to let the regulation lapse or to extend or revise it. Regulation no. 461/2010 expires on May 31, 2023. Its effectiveness has been under evaluation by the European Commission, and it will decide no sooner than the second quarter of 2021 whether to let the regulation lapse or to extend or revise it.

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019