Groupe Renault - 2019 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Impairment related to operations in Iran 6 – C – The Group’s exposure to risks on business with Iran has been fully written off since 2013 and consists of securities, a shareholder loan and commercial receivables. This situation changed little during 2019. The gross amount in the assets at December 31, 2019 was €782 million, including €677 million of customer receivables (€782 million and €677 million respectively at December 31, 2018). As a result of the United States’ withdrawal from the JCPOA (Joint Comprehensive Plan of Action) and the reinstatement from August 6, 2018 of sanctions for the automobile sector in Iran, there were no sales of CKD in 2019. Sales of CKD represented €319 million in 2018.

Other unusual items 6 – D – In 2018 and 2019, impairment tests on certain vehicles led to recognition of unusual expenses corresponding to advance and future payments to partners and suppliers in connection with those vehicles, amounting to €(78) million in 2019 and €(71) million in 2018.

FINANCIAL INCOME (EXPENSES) NOTE 7 (€ million)

2019

2018

Cost of gross financial indebtedness  (1) Income on cash and financial assets COST OF NET FINANCIAL INDEBTEDNESS

(386)

(373)

75

65

(311)

(308)

Dividends received from companies that are neither controlled nor under significant influence

59 30

78 14

Foreign exchange gains and losses on financial operations

Gain/Loss on exposure to hyperinflation

(34)

(31)

Net interest expenses on the defined-benefit liabilities and assets corresponding to pension and other long-term employee benefit obligations

(28)

(25) (81) (45)

Other  (2)

(158) (131) (442)

OTHER FINANCIAL INCOME AND EXPENSES

FINANCIAL INCOME (EXPENSE)  (3)

(353)

The financial interest determined upon initial application of IFRS 16 in 2019 is presented in note 2-A2. (1) Other items mainly comprise expenses on assignment of receivables, changes in fair value (the investments in FAA and Partech Growth), bank commissions, discounts and (2) late payment interest. No impairment was recognized in 2019 on financial items included in or excluded from net financial indebtedness. (3) The net liquidity position (or net financial indebtedness) of the Automotive segments is presented in the information by operating segment (see section 4.2.6.1 – A4).

368 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

Find out more at www.groupe.renault.com