Groupe Renault - 2019 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

SHAREHOLDERS’ EQUITY NOTE 18 Share capital 18 – A –

Capital management 18 – B – In managing its capital, the Group’s objective is to guarantee continuity of business in order to provide returns for shareholders and benefits for other stakeholders, and to maintain optimum capital structure in order to optimize its cost. The Group may adjust dividend payments to shareholders, redeem some of the capital or issue new shares. The Group’s objectives are monitored in different ways in the different operating segments. The Sales Financing segment must comply with regulatory ratios specific to banking operations. The minimum solvency ratio (shareholders’ equity including subordinated loans to total weighted risks) is 8%. RCI Banque’s Core Tier 1 solvency ratio is 14.41% at December 31, 2019 (15.46% at December 31, 2018). The Group also partially hedges its investment in Nissan (notes 12-G and 25-B2).

The total number of ordinary shares issued and fully paid at December 31, 2019 is 295,722 thousand, with par value of €3.81 per share (unchanged since December 31, 2018). Treasury shares do not bear dividends. They account for 1.54% of Renault’s share capital at December 31, 2019 (1.71% at December 31, 2018). The Nissan group holds approximately 15% of Renault through its wholly-owned subsidiary Nissan Finance Co. Ltd. (no voting rights are attached to these shares).

Renault treasury shares 18 – C – In accordance with decisions approved at General Shareholders’ Meetings, the Board of Directors decided to allocate all Renault treasury shares to current stock-option and performance share plans and other share-based payment agreements awarded to Group managers and executives.

December 31, 2019

December 31, 2018

Total value of treasury plans (€ million)

344

400

Total number of treasury shares

4,548,736

5,058,961

Distributions 18 – D – At the General and Extraordinary Shareholders’ Meeting of June 12, 2019, it was decided to distribute a dividend of €3.55 per share giving a total amount of €1,035 million (€3.55 per share or a total of €1,027 million in 2018). This dividend was paid in June 2019. Translation adjustment 18 – E – The change in translation adjustment over the year is analyzed as follows:

2019

2018

(€ million)

Change in translation adjustment on the value of the investment in Nissan Impact, net of tax, of partial hedging of the investment in Nissan (note 12-G)

401

997 (70) 927

(157)

Total change in translation adjustment related to nissan Changes related to hyperinflationary economies Other changes in translation adjustment TOTAL CHANGE IN TRANSLATION ADJUSTMENT

244 (99) 125 270

(175) (250)

502

Changes related to hyperinflationary economies consist of changes in the translation adjustment attributable to the Argentinian subsidiaries since January 1, 2018. In 2019, other changes in the translation adjustment mostly resulted from movements in the Russian rouble and the Romanian leu.

384 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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