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 provision established for this defined-benefit top-up pension plan amounted to €72 million at December 31, 2018. The portion of this provision corresponding to economically active members has been transferred to profit and loss in 2019 as a plan curtailment (positive impact of €41 million on the income statement) and a plan settlement (positive impact of €23 million on the income statement).

Main changes in the Group’s defined-benefit plans Following publication of France’s ordinance 2019-697 of July 3, 2019 reforming supplementary defined-benefit pension plans in application of Article 197 of the “Pacte” law, the Group terminated the defined-benefit top-up pension plan that was set up in France in late 2004, entailing the loss of the corresponding rights for plan members still working. This plan was open to members of the Group’s Executive Committee who had been with the group for at least 5 years, including 2 years in the Executive Committee, with payment of the related pension conditional on holding an executive position with the Group at the time of retirement.

Main actuarial assumptions used to calculate provisions and other data for the most significant plans 19 – B –

04

December 31, 2019

December 31, 2018

Main actuarial assumptions and actual data for the Group’s retirement indemnities in France

Renault s.a.s.

Others 60 to 67

Renault s.a.s.

Others 60 to 67

Retirement age Discount rate*

60 to 65

60 to 65

0.79%

0.1% to 2% 1% to 3% 6 to 20 years €189 million

1.69%

0.8% to 2% 1% to 2.7% 7 to 20 years

Salary increase rate

2.5%

2.5%

Duration of plan Gross obligation

13 years

13 years

€1,158 million €174 million The rates used to value the Group’s obligations in France vary between companies depending on the maturities of obligations. The benchmark for the discount rate is the * zero-coupon rate plus the average spread curve for issuers rated AA as published by Reuters. €1,035 million

December 31, 2019

December 31, 2018

Main actuarial assumptions and actual data for the Group’s supplementary pensions in the UK

Automotive excl. AVTOVAZ

Sales Financing

Automotive excl. AVTOVAZ

Sales Financing

Financial discount rate*

2.10% 2.80%

2.10% 2.80%

2.85%

2.85% 3.10%

Pension inflation rate (salary increase rate for 2018)

2%

Duration of plan

20 years 12.74%

23 years 15.52%

18 years (3.95)%

25 years (5.37)%

Actual return on fund assets

Gross obligation

€370 million €319 million

€44 million €31 million

€325 million €270 million

€33 million

Fair value of assets invested via pension funds €25 million The discount rate was determined by reference to the interest rate curve established by Deloitte based on the iBoxx £ index for AA-rated corporate bonds (DTRB £ AA * corporate bond yield curve).

Net expense for the year 19 – C –

2019

2018

(€ million)

Current service cost

98

94 (3) 25 (1)

Past service cost and (gain)/loss on settlement Net interest on the net liability (asset) Effects of workforce adjustment measures

(84)

28

-

Net expense (income) for the year recorded in the income statement

42

115

389

GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019