Groupe Renault - 2019 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Finance: In addition to its activity for Renault, Renault Finance P acts as the Nissan group’s counterparty in financial instruments trading to hedge foreign exchange and interest rate risks. Renault Finance undertook approximately €17 billion of forex transactions on the foreign exchange market for Nissan in 2019 (€18 billion in 2018). Operations undertaken with Nissan on foreign exchange and interest rate derivatives are recorded at market price and included in the positions managed by Renault Finance. In the balance sheet, the derivative assets on the Nissan group amount to €26 million at December 31, 2019 (€30 million at December 31, 2019) and derivative liabilities amount to €4 million at December 31, 2019 (€69 million at December 31, 2018). Renault’s Sales Financing segment helps to attract customers and build loyalty to Nissan brands through a range of financing products and services incorporated into the sales policy, principally in Europe. In 2019, RCI Banque recorded €148 million of service revenues in the form of commission and interest received from Nissan (€158 million in 2018). The balance of sales financing receivables on the Nissan group is €86 million at December 31, 2019 (€133 million at December 31, 2018) and the balance of liabilities is €184 million at December 31, 2019 (€148 million at December 31, 2018). The Alliance partners hold investments in associates and joint-ventures that manage their cooperation. Details of these entities’ activity and location, and the Groupe Renault’s influence over them, are given in note 13. AVTOVAZ J2 In 2019, total sales by AVTOVAZ to Nissan and purchases by AVTOVAZ from Nissan amounted to an estimated €118 million and €23 million respectively (€260 million and €35 million in 2018). In the AVTOVAZ financial position at December 31, 2019, the balances of transactions between AVTOVAZ and the Nissan group consist mainly of: a non-current receivable for jointly controlled assets amounting to P €25 million (€27 million at December 31, 2018); operating receivables and payables amounting respectively to P €0 million and €18 million (€12 million and €37 million at December 31, 2018).

Operations between the Groupe Renault and 12 – J – the Nissan group Automotive (excluding AVTOVAZ) and Sales Financing J1 Renault and Nissan follow joint strategies for vehicle and component development, purchasing, production and distribution resources. Since April 1, 2014 the two companies have also been engaged in a convergence project for four key functions: Engineering, Manufacturing and Supply Chain Management, Purchasing and Human Resources. This cooperation is reflected in synergies that reduce costs, particularly in the support functions and sales to Nissan. The Automotive (excluding AVTOVAZ) segment is involved in operations with Nissan on two levels: industrial production: crossover production of vehicles and P components in the Alliance’s manufacturing plants: sales by the Groupe Renault to the Nissan group in 2019 P totalled approximately €3,374 million (€4,162 million in 2018), comprising around €2,272 million for vehicles (€2,871 million in 2018), €985 million for components (€1,169 million in 2018), and €117 million for services (€123 million in 2018). The decrease is mainly driven by sales of vehicles made by Renault Samsung Motors for Nissan North America, and the Nissan Micra made in Flins, France, purchases by the Groupe Renault from the Nissan group in 2019 P totalled approximately €1,896 million (€2,184 million in 2018), comprising around €1,046 million of vehicles (€1,068 million in 2018), €655 million of components (€884 million in 2018), and €195 million of services (€223 million in 2018), the balance of Groupe Renault receivables on the Nissan group P is €521 million at December 31, 2019 (€859 million at December 31, 2018) and the balance of Groupe Renault liabilities to the Nissan group is €738 million at December 31, 2019 (€872 million at December 31, 2018);

378 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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