Groupe Renault - 2019 Universal Registration Document

RENAULT: A RESPONSIBLE COMPANY

ANNUAL GENERAL MEETING OF RENAULT ON APRIL 24, 2020

FINANCIAL STATEMENTS

GROUPE RENAULT

CORPORATE GOVERNANCE

RENAULT AND ITS SHAREHOLDERS

ADDITIONAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

These instruments are presented as non-current assets, apart from those maturing within 12 months of the closing date, which are classified as current assets. Investments in non-controlled companies in which Renault does not have significant influence Investments in non-controlled companies in which Renault does not have significant influence are classified as equity instruments at fair value through profit and loss. The fair values of such financial assets are determined in priority by reference to the market price. If this is not possible, the Group uses a valuation method that is not based on market data. In an exception to this rule, the Group has made an irrevocable option to present the Daimler shares at fair value other components of comprehensive income. Marketable securities and negotiable debt instruments Short-term investments in the form of marketable securities and negotiable debt instruments are undertaken for the management of cash surpluses, but do not meet the requirements to qualify as cash equivalents. These are debt instruments carried at fair value through other components of comprehensive income, except for shares in investment funds (UCITS) which are carried at fair value through profit and loss. Impairment equivalent to expected credit losses is booked upon initial recognition of debt instruments carried at fair value through other components of comprehensive income. Loans Loans essentially include loans for investment of cash surpluses and loans to associates. Loans are carried at amortized cost. Impairment equivalent to expected credit losses is recognized upon initial recognition of the financial asset, and when there is objective evidence of loss of value caused by an event arising after the initial recognition. Cash and cash equivalents 2 – V – Cash includes cash on hand, current accounts and other demand deposits, with the exception of bank overdrafts, which are included in financial liabilities. These instruments are stated at amortized cost except for shares in investment funds (UCITS) which are carried at fair value through profit and loss. Cash equivalents are investments held for the purpose of meeting short-term cash commitments. For an investment to qualify as a cash equivalent, it must be considered as liquid, be readily convertible for a known amount of cash and be subject to an insignificant risk of change in value. Bank accounts subject to restrictions due to sector-specific regulations (for example, banking or insurance regulations) or bank accounts allocated to increasing credit on securitized receivables are included in cash and cash equivalents.

Financial liabilities of the Automotive 2 – W – segments and Sales Financing debts

The Group recognizes a financial liability (for the Automotive segments) or a Sales Financing debt when it becomes a party to the contractual provisions of a financial instrument. Financial liabilities and Sales Financing debts comprise redeemable shares, bonds, other debts represented by a certificate, borrowings from credit institutions, lease liabilities in application of IFRS 16 (notes 2-A2 and 2-L), other interest-bearing borrowings and derivative liabilities related to financial transactions (note 2-X). Redeemable shares are listed subordinated debt instruments that earn a variable return indexed on consolidated revenues. They are carried at amortized cost, determined by discounting forecast coupons using the effective interest rate on borrowings. Financial liabilities not concerned by specific hedge accounting methods (note 2-X) are generally recorded at amortized cost using the effective interest rate method. financial expense calculated in this way includes issuance expenses and issuance or redemption premiums, together with the impact of debt renegotiations when the old and new terms are not substantially different. Derivatives and hedge accounting 2 – X – Measurement and presentation Derivatives are initially stated at fair value. This fair value is subsequently reviewed at each closing date: the fair value of forward exchange contracts and currency swaps is P determined by discounting future cash flows, using closing-date market rates (exchange and interest rates); the fair value of interest rate derivatives is the amount the Group P would receive (or pay) to settle outstanding contracts at the closing date, taking into account interest rates forward curves and the quality of the counterparty to each contract at the closing date. This fair value includes accrued interest; the fair value of commodity derivatives is based on market P conditions. The Automotive segments’ derivatives are reported in the financial position as current if they mature within 12 months and non-current otherwise. All Sales Financing segment derivatives are reported in the financial position as current. Hedge accounting The treatment of derivatives designated as hedging instruments depends on the type of hedging relationship:

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fair value hedge; P cash flow hedge; P hedge of a net investment in a foreign operation. P

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019