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

A reasonably possible change in the key assumptions used should not result in a recoverable value that is below the book value. The annual impairment test will now be conducted at December 31 every year.

Impairment tests of the Lada brand For the purpose of allocation of the purchase price of AVTOVAZ, the Lada brand was recognized at its fair value at the date control was acquired (in late 2016), i.e. 9,248 million Russian roubles (€132 million at the exchange rate of December 31, 2019). Since this brand is an intangible asset with an indefinite useful life, an impairment test was carried out at December 31, 2019 based on a discount rate of 14% and a growth rate to infinity of 4%. No impairment was booked in 2019, as the recoverable value was higher than the book value.

INVESTMENT IN NISSAN NOTE 12 Renault’s investment in Nissan in the income statement and financial position:

04

2019

2018

(€ million)

Consolidated income statement Share in net income (loss) of associates accounted for by the equity method

242

1,509

Consolidated financial position Investments in associates accounted for by the equity method

20,622

20,583

at December 31, 2019, the Groupe Renault occupied two seats on P Nissan’s Board of Directors and was represented by Jean-Dominique Senard, Chairman of the Renault Board. The appointment of Pierre Fleuriot to replace Thierry Bolloré will be put to the vote at the next Extraordinary General Shareholders’ Meeting to be held on February 18, 2020. Pierre Fleuriot is the Senior Independent Director in the Groupe Renault; Renault can neither use nor influence the use of Nissan’s assets in P the same way as its own assets; Renault provides no guarantees in respect of Nissan’s debt. P In view of this situation, Renault is considered to exercise significant influence over Nissan, and therefore uses the equity method to include its investment in Nissan in the consolidation. Nissan consolidated financial statements 12 – B – included under the equity method in the Renault consolidation The Nissan accounts included under the equity method in Renault’s financial statements are Nissan’s consolidated accounts published in compliance with Japanese accounting standards (as Nissan is listed on the Tokyo Stock exchange), after adjustments for the requirements of the Renault consolidation. Nissan publishes consolidated financial statements quarterly, and annually at March 31. For the purposes of the Renault consolidation, Nissan results are included in line with the Renault calendar (the results for the period January through December are consolidated in Renault’s annual financial statements). Nissan held 0.7% of its own treasury shares at December 31, 2019 (0,7% at December 31, 2018). Consequently, Renault’s percentage interest in Nissan is 43.7% (43.7% at December 31, 2018). Renault holds 43.7% of voting rights in Nissan at September 30, 2019 (43.7% at September 30, 2018).

Nissan consolidation method 12 – A – Renault and the Japanese automaker Nissan have developed an alliance between two distinct companies with common interests, uniting forces to achieve optimum performance. The Alliance is organized so as to preserve individual brand identities and respect each company’s corporate culture. Consequently: Renault is not assured of holding the majority of voting rights in P Nissan’s Shareholders’ Meeting; the terms of the Renault-Nissan agreements do not entitle P Renault to appoint the majority of Nissan directors, nor to hold the majority of voting rights at meetings of Nissan’s Board of Directors; Renault cannot unilaterally appoint the President of Nissan; in March 2019, Renault, Nissan and Mitsubishi announced the P creation of the new Alliance Board, a supervisory body to oversee Alliance operations and governance involving Renault, Nissan and Mitsubishi. This Board has four members: The Chairman of the Board of Renault, the Chief Executive Officer of Renault, the Chief Executive Officer of Nissan and the Chief Executive Officer of Mitsubishi Motors. Decisions are taken by consensus. In November 2019, the Board added the post of Alliance General Secretary, who reports to the Alliance Board and the CEOs of the three alliance companies;

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019