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

2018 revenues applying 2019 scope and methods 4 – B –

Automotive (excluding AVTOVAZ)

Sales Financing

AVTOVAZ

Total

(€ million)

2018 revenues

51,171

3,040

3,208

57,419

Changes in scope of consolidation

5

(10)

-

(5)

2018 revenues applying 2019 scope and methods

51,176 49,002

3,030 3,130

3,208 3,405

57,414 55,537

2019 revenues

OPERATING MARGIN: DETAILS OF INCOME AND EXPENSES BY NATURE NOTE 5 Personnel expenses 5 – A – Personnel expenses amount to €6,706 million in 2019 (€6,703 million in 2018).

04

Foreign exchange gains/losses 5 – B – In 2019, the operating margin includes a net foreign exchange gain of €42 million, mainly related to movements in the Turkish lira (compared to a net foreign exchange loss of €72 million in 2018 related to movements in the Argentinian peso, Brazilian real and Turkish lira).

The average workforce during the year for consolidated entities is presented in section 2.4- Human Capital of the 2019 Universal registration document. Details of pensions and other long-term employee benefit expenses are presented in note 19. Share-based payments concern stock-options, performance shares and other share-based payments granted to personnel, and amounted to a personnel expense of €89 million for 2019 (€97 million in 2018). The plan valuation method is presented in note 18-G.

OTHER OPERATING INCOME AND EXPENSES NOTE 6 (€ million)

2019

2018

Restructuring and workforce adjustment costs

(236)

(306)

Gains and losses on total or partial disposal of businesses or operating entities, and other gains and losses related to changes in the scope of consolidation Gains and losses on disposal of property, plant and equipment and intangible assets (except leased asset sales) Impairment of property, plant and equipment, intangible assets and goodwill (excluding goodwill of associates and joint-ventures)

(5)

3

(10)

65

(229)

(276)

Impairment related to operations in Iran

-

(47) (64)

Other unusual items

(77)

TOTAL

(557)

(625)

Restructuring and workforce adjustment costs 6 – A – Restructuring and workforce adjustment costs mainly concern the Europe region in 2019 and 2018. In 2019 these costs include €89 million of complementary expenses related to revision of the assumptions regarding the higher than anticipated numbers signing up to the French career-end work exemption plan set out in the initial agreement signed on January 13, 2017 and amended on April 16, 2018 named “Renault France CAP 2020 – Contrat d’Activité pour une Performance durable” (activity contract for sustainable performance).

Impairment of fixed assets and goodwill 6 – B – (excluding goodwill of associates and joint-ventures) At December 31, 2019, impairment amounting to €(229) million net was recorded (€(276) million in 2018), comprising €(239) million of new impairment and €10 million of impairment reversals. This impairment concerns intangible assets (net increase of €(201) million) and property, plant and equipment (net increase of €(28) million) (notes 10 and 11). New impairment was principally recorded as a result of impairment tests on internal combustion engine vehicles made for the Chinese market, in view of the lower sales volumes and the downward revision of Renault’s prospects on that market (notes 10 and 11). Reversals of impairment relate to electric vehicles.

367

GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019