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

Deferred income includes deferred income on Automotive service contracts such as maintenance and warranty extension contracts. It takes the form of payments received under contracts defining a customer payment schedule that does not depend on the group’s execution of its performance obligation (advance payment in full, or regular payments due at the end of specified periods). Deferred income is transferred to revenues over the duration of the contracts, and breaks down as follows:

2019

2018

(€ million)

Deferred income on Automotive service contracts (maintenance and warranty extensions) at January 1

817 341

720 351

Deferred income received during the period

Deferred income recognized in revenues during the period

(313)

(253)

Change in scope of consolidation

-

-

Translation adjustments and other changes

1

(1)

Deferred income on Automotive service contracts (maintenance and warranty extensions) at December 31

846 329 464

817 271 479

To be recognized in revenues within one year

04

in 1 to 3 years in 3 to 5 years

53

67

Financial assets and liabilities, fair value and management of financial risks

4.2.6.5

FINANCIAL ASSETS – CASH AND CASH EQUIVALENTS NOTE 22 Current/non-current breakdown 22 – A –

December 31, 2019

December 31, 2018

Non-current

Current

Total Non-current

Current

Total

(€ million)

Investments in non-controlled entities

878

-

878

853

-

853 921 426 691

Marketable securities and negotiable debt instruments Derivatives on financing operations by the Automotive segments

-

1,375

1,375

-

921 378 664

49

216 625

265 770

48 27

Loans and other

145

TOTAL FINANCIAL ASSETS

1,072 1,072

2,216 2,221

3,288 3,293

928 928

1,963 1,974

2,891 2,902

Gross value Impairment

- - - -

(5)

(5)

- - - -

(11)

(11)

Cash equivalents

8,375 6,607

8,375 6,607

8,091 6,686

8,091 6,686

Cash

TOTAL CASH AND CASH EQUIVALENTS

14,982

14,982

14,777

14,777

Information on the counterparty risks associated with financial assets and cash and cash equivalents is provided in notes 25-B6 and 25-C2. Investments in non-controlled entities 22 – B – At December 31, 2019, investments in non-controlled entities include €812 million (€755 million at December 31, 2018) for the Daimler shares purchased under the strategic partnership agreement. These shares are carried at fair value through other components of comprehensive income by option. If the Daimler shares were sold, the gain on sale would not be transferred to profit and loss. Their fair value is determined by reference to the stock market price. At December 31, 2019, the stock market price (€49.37 per share) was higher than the acquisition price (€35.52 per share) and the unrealized gain on the Daimler shares held is €228 million. The increase in fair value over the year, amounting to €228 million (compared to a €409 million decrease in 2018), is recorded in other components of comprehensive income for 2019. Investments in non-controlled entities also include €43 million at December 31, 2019 (€57 million at December 31, 2018) paid to the Fund for the Future of the Automobile ( Fonds Avenir Automobile –

FAA). Under the support plan for these suppliers introduced by the French authorities and automakers, Renault has made a commitment to pay a total of €200 million as funds are called. The outstanding amount for Renault at December 31, 2019 is €54 million. The fair value of these securities is determined by reference to the most recent net asset value reported by the FAA’s management company, after adjustment for any relevant information that becomes known afterwards. Cash not available to the Group 22 – C – The Group has liquidities in countries where repatriation of funds can be complex for regulatory or political reasons. In most of these countries, such funds are used locally for industrial or sales financing purposes. Some current bank accounts held by the Sales Financing Securitization Fund are used to increase credit on securitized receivables, and consequently act as guarantees in the event of default on payment of receivables (note 15-B1). These current bank accounts amount to €540 million at December 31, 2019 (€551 million at December 31, 2018).

393

GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019