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

Nissan financial information under IFRS 12 – F – The table below presents Nissan financial information, restated under IFRS for the purposes of the Renault consolidation, for the years 2018 and 2017. The restatements do not include the fair value adjustments of assets and liabilities applied by Renault at the time of the acquisitions in 1999 and 2002, or the elimination of Nissan’s investment in Renault accounted for under the equity method.

2019

2018

(¥ billion)

(€ million)  (1)

(¥ billion)

(€ million)  (2)

Revenues

10,316

84,520

11,764

90,201

Net income Parent company shareholders’ share

85

698

451

3,458

Non-controlling interests’ share

(14)

(115)

20

151

Other components of comprehensive income Parent company shareholders’ share

04

(154)

(1,264)

(220)

(1,688)

Non-controlling interests’ share

23

185

31

237

Comprehensive income Parent company shareholders’ share

(69)

(566)

231

1,771

Non-controlling interests’ share

9

70

51

388 784

Dividends received from Nissan

71

579

101

December 31, 2019

December 31, 2018

(¥ billion)

(€ million)  (1)

(¥ billion)

(€ million)  (2)

Non-current assets

7,877

64,597 91,734

7,886

62,664 93,736

Current assets TOTAL ASSETS

11,186 19,063

11,797 19,683

156,331

156,400

Shareholders’ equity Parent company shareholders’ share

5,655

46,378

5,887

46,775

Non-controlling interests’ share

364

2,984

297

2,359

Non-current liabilities

5,345 7,699

43,828 63,142

5,874 7,625

46,675 60,591

Current liabilities

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 156,400 Converted at the average exchange rate for 2019 i.e.122.06 JPY = 1 EUR for income statement items, and at the December 31, 2019 rate i.e. 121.94 JPY = 1 EUR for financial (1) position items. Converted at the average exchange rate for 2018 i.e.130.4 JPY = 1 EUR for income statement items, and at the December 31, 2018 rate i.e. 125.8 JPY = 1 EUR for financial (2) position items. 19,063 156,331 19,683

Hedging of the investment in Nissan 12 – G – The Group has partially hedged the yen/euro exchange risk on its investment in Nissan since 1999. Details of this hedge are given in note 25-B2. At December 31, 2019, the corresponding hedging operations totalled ¥84 billion (€689 million) of private placements in bonds issued directly in yen on the Japanese Samurai bond market. During 2019, these operations generated unfavourable foreign exchange differences of €(70) million (unfavourable difference of €(102) million in 2018). The net unfavourable effect of €(157) million after deferred taxes (including the effect of non-recognition as described in note 8) is recorded in the Group’s translation adjustment reserve (note 18-E). Valuation of Renault’s investment in Nissan at 12 – H – stock market prices Based on the quoted price at December 31, 2019 of ¥636 per share, Renault’s investment in Nissan is valued at €9,554 million (€12,809 million at December 31, 2018 based on the price of ¥880 per share).

Impairment test of the investment in Nissan 12 – I – At December 31, 2019, the stock market value of the investment was 53.7% lower than the value of Nissan in Renault’s statement of financial position (37.8% at December 31, 2018). In application of the approach presented in the note on accounting policies (note 2-M), an impairment test was carried out at December 31, 2019. An after-tax discount rate of 6.95% and a growth rate to infinity (including the effect of inflation) of 2.25% were used to calculate value in use. The terminal value was calculated under profitability assumptions consistent with Nissan’s past data and balanced medium-term prospects. The test results did not lead to recognition of any impairment on the investment in Nissan at December 31, 2019. A reasonably possible change in the main assumptions used should not result in a recoverable value that is lower than the book value of the investment in Nissan.

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019