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

POST-BALANCE SHEET EVENTS

01

Directive 2018/843 of May 30, 2018 amended Directive 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing . This text, which is to be transposed into French law in early 2020: strengthens the transparency of complex legal entities and legal P structures by broadening access to registers of beneficial owners; sets out the enhanced due diligence measures to be implemented P with respect to business relationships or transactions involving high-risk third countries; sets out the guarantees to be put in place to mitigate high money P laundering risks associated with entering into a remote business relationship; and establishes the principle of consolidated supervision of AML-CFT P procedures by banking and insurance groups. Directive 2016/97 of January 20, 2016 on insurance distribution , transposed in France by Decree 2018-361 of May 16, 2018, aims to ensure better consumer protection and harmonize national rules for the distribution of insurance products. This text requires the establishment of governance procedures for the design and distribution of insurance products and the delivery of a new standardized information document (IPID) to customers.

On February 25, 2019, the European Banking Authority published Outsourcing Guidelines (EBA/GL/2019/02). These guidelines set forth a governance framework for outsourcing operations. Accordingly, they require an evaluation of each subcontractor, the keeping of a register of services outsourced, and the inclusion in contracts with subcontractors of a certain number of clauses to ensure good control of the risks associated with the outsourcing. On January 18, 2017, the European Banking Authority published guidelines on the application of the definition of default (EBA/GL/2016/07). The purpose of this text is to harmonize the definition of default by providing a detailed clarification of the various reasons for default (including the counting of days in arrears), the conditions for a return to non-default and the associated processes. The text will be applicable starting January 1, 2021. In addition, on September 28, 2016, the European Banking Authority published a text entitled “Final report DRTS on materiality threshold for credit obligation past due” (RTS/2016/06). This text introduces a single methodology for the counting of days in arrears (Day Past Due counting) based on the application of absolute and relative materiality thresholds. In its Regulation 2018/1845 of November 21, 2018, the absolute threshold was set at €100 for exposures to retail customers and €500 for other exposures. These rules must be obeyed starting December 31, 2020. Finally, the European Banking Authority also published guidelines for estimates of probability of default and estimates of loss given default (EBA-GL-2017-16). These guidelines are part of the wider work of the European Banking Authority to reduce unjustified variability in the results of internal models while preserving the risk sensitivity of capital requirements.

POST-BALANCE SHEET EVENTS 1.8 On January 28, 2020, Renault’s Board of Directors decided to appoint Mr Luca de Meo as Chief executive Officer of Renault S.A., and Chairman P of Renault s.a.s., and to appoint Ms Clotilde Delbos as Chief Operating Officer of Renault, with effect from July 1, 2020 (for more details, see chapter 3.1). Between December 31, 2019, the financial year-end date, and the date of registration of this document, the coronavirus (Covid-19) epidemic P broke out. In the pandemic context and fully complying with the measures taken by the different governments at the date of March 17, 2020, Groupe Renault have stopped the activity of certain of its business establishments and plants. Given the rapid spread of the pandemic, the continuity of production activities in the Group’s other plants worldwide will depend on the health situation and the government decisions in each country. Groupe Renault plans to restart production activities as soon as conditions allow it, and will implement all appropriate measures to effectively meet commercial demand. Downgrading of the financial rating by Moody’s and Fitch (for more details, see chapter 1.6.1.3). P

123

GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019