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

The assets acquired and liabilities transferred are recorded at December 31, 2019 at their book value in the financial statements of JMEV and its principal subsidiary, JMEVS. No contingent liabilities or translation adjustments have been recognized at this stage. The goodwill stated in the financial statements at

December 31, 2019 is thus provisional and the final fair values of the assets acquired and liabilities transferred will be determined

within 12 months.

A breakdown of the net assets acquired is shown in the following table: Amounts at the date of acquisition of control (€ million) (RMB million)

Property, plant and equipment and intangible assets

192

1,477

Inventories

28

215

Customer receivables

229 490

1,762 3,769

Other assets

Cash and cash equivalents

17

131

04

Financial liabilities

(253) (443)

(1,946) (3,407)

Other liabilities

NET ASSETS ACQUIRED

260

2,000

Amounts at the date of acquisition of control (€ million) (RMB million)

Fair value of the consideration paid (A) JMEV net assets – 50% acquired Share of net assets acquired (B) PROVISIONAL GOODWILL (A) - (B)

130 260 130

1,000 2,000 1,000

-

-

In December 2019, the Group set up the new entity Renault MAI P (Mobility As an Industry) to accelerate development in new types of mobility and form strategic partnerships. The company’s share capital is €165 million. As of December 31, 2019 it holds the investments in Flit Tech (a taxi reservation platform), iCabbi (software development for taxis) and Marcel (a private car hire app) which were previously held by RCI Banque. The Group has finalized determination of the fair values of the P assets acquired and liabilities transferred from Les Éditions Croque Futur, in which it acquired a 40.26% investment in March 2018. This company operates in the written press sector, notably owning the magazine titles Challenges, Historia, Sciences et Avenir, Histoire and La Recherche . Les Éditions Croque Futur, over which the Group has significant influence, is accounted for by the equity method. The principal adjustments concern the magazine titles, recognized at €9.7 million (on a 100% basis), and subscriber relations, recognized at €8.1 million (on a 100% basis). The final goodwill at the acquisition date is €8 million. In July 2019, after a capital increase to which the Group did not subscribe, its investment was reduced to 35.11%. The Group has finalized determination of the fair values of the P assets acquired and liabilities transferred from Carizy, in which it acquired a 96.08% investment in June 2018. Carizy operates in the expert advice and intermediation sector for used vehicles, notably owning the website Carizy.com. It is fully consolidated. The main adjustment concerns the brand, recognized at €3 million. The final goodwill at the acquisition date is €24 million.

AVTOVAZ 3 – B – There was no change during 2019 in Renault’s percentage P ownership of Alliance Rostec Auto b.v. At December 31, 2018, Renault held 61.09% of the capital of Alliance Rostec Auto b.v., which held 100% of AVTOVAZ. The percentage ownership applied in the consolidated financial statements at December 31, 2018 was 67.61% including the capital increase that took place in early 2019 in accordance with the shareholders’ decisions made on November 28, 2018 and signed by Renault s.a.s.. The impact of these operations and the change in Renault s.a.s.’s investment in Alliance Rostec Auto b.v. and Alliance Rostec Auto b.v.’s investment in AVTOVAZ were recognized directly in shareholders’ equity – parent company shareholders’ share and non-controlling interests’ share, in the respective amounts of €72 million and €245 million. The value of the non-controlling interest at December 31, 2019 is €83 million (€52 million at December 31, 2018). In July 2019, AVTOVAZ sold AO Smolensk-LADA and AO Dal-Lada. P The operation generated a gain of €0.5 million. In December 2019 PAO AVTOVAZ acquired a further 50% interest P in addition to its initial 50% shareholding in ZAO GM-AVTOVAZ, for the price of €5.9 million. ZAO GM-AVTOVAZ and its subsidiary JVS were previously accounted for by the equity method in the Groupe Renault consolidation. Among other consequences, the takeover entails ownership of the right to use the NIVA brand. Control was acquired on December 16, 2019. As the impact of these entities on net income and changes in cash between December 16 and 31, 2019 are non-significant, full consolidation is applied from December 31, 2019.

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019