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 residual unrecognized deferred tax assets of entities included in the French tax consolidation group amounted to €3,442 million (€2,344 million at December 31, 2018). They comprise tax losses that can be carried forward indefinitely to set against future taxable income up to a limit of 50% of that income. €393 million of these unrecognized assets were generated by items booked through shareholders’ equity (effects of the partial hedge of the investment in Nissan), and €3,049 million were generated by items affecting the income statement (respectively €265 million and €2,079 million at December 31, 2018).

For entities not in the French tax consolidation group, unrecognized deferred tax assets totalled €848 million at December 31, 2019 (€840 million at December 31, 2018), including €34 million for AVTOVAZ (€82 million at December 31, 2018) and €814 million for the Group excluding AVTOVAZ (€758 million at December 31, 2018) and principally comprise tax loss carryforwards generated by the Group in Brazil, India, and to a lesser extent in Argentina.

Breakdown of deferred taxes on tax losses by expiry date D3 Unrecognized loss carryforwards represent a potential tax saving of €4,023 million at December 31, 2019.

04

December 31, 2019

December 31, 2018

(€ million)

Deferred taxes on:

Recognized Unrecognized

Total

Recognized Unrecognized

Total

Tax losses that can be carried forward indefinitely* Tax losses expiring in more than 5 years Tax losses expiring in between 1 and 5 years

879

3,848

4,727

1,565

2,760

4,325

-

29

29

5

53 49

58 49

3

104

107

-

Tax losses expiring within 1 year

-

8

8

2

-

2

TOTAL DEFERRED TAXES ON TAX LOSSES (EXCLUDING AVTOVAZ) TOTAL DEFERRED TAXES ON TAX LOSSES OF AVTOVAZ TOTAL DEFERRED TAXES ON TAX LOSSES OF THE GROUP

882 293

3,989

4,871

1,572

2,862

4,434

34

327

212

82

294

1,175 4,728 Including recognized and unrecognized deferred taxes corresponding to tax loss carryforwards of entities included in the French tax consolidation group, which amount to * €842 million and €3,442 million respectively at December 31, 2019 and €1,520 million and €2,344 million respectively at December 31, 2018 (note 8-D2). 4,023 5,198 1,784 2,944

BASIC AND DILUTED EARNINGS PER SHARE NOTE 9 (thousands of shares)

2019

2018

Shares in circulation

295,722 (4,700) (19,383) 271,639

295,722 (6,490) (19,382) 269,850

Treasury shares

Shares held by Nissan x Renault’s share in Nissan

Number of shares used to calculate basic earnings per share

The number of shares used to calculate the basic earnings per share is the weighted average number of ordinary shares in circulation during the period, i.e. after neutralization of treasury shares and Renault shares held by Nissan.

2019

2018

(thousands of shares)

Number of shares used to calculate basic earnings per share

271,639

269,850

Dilutive effect of stock-options, performance share rights and other share-based payments

1,930

2,372

Number of shares used to calculate diluted earnings per share

273,569

272,222

The number of shares used to calculate the diluted earnings per share is the weighted average number of ordinary shares potentially in circulation during the period, i.e. the number of shares used to calculate the basic earnings per share plus the number of

stock-options and rights to performance shares awarded under the relevant plans, that have a dilutive effect and fulfil the performance conditions at the reporting date when issuance is conditional

(note 18-G).

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019