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

Changes in Automotive financial liabilities and derivative assets on financing operations 23 – B –

Change resulting from acquisition or loss of control over subsidiaries and other operating units

Foreign exchange changes with no effect on cash flows

Other changes with no effect on cash flows

Change in cash flows

December 31, 2019

December 31, 2018

(€ million)

Renault SA redeemable shares

277

-

- - - - -

-

4

281

Bonds

5,246

983

58

(3) (1)

6,284

Other debts represented by a certificate Borrowings from credit institutions Lease liabilities in application of IFRS 16  (1)

649 957

-

-

648 982 723 610

121 (94)

(11)

(85) 816

1

Other interest-bearing borrowings

362 (117)

250

16

99

FINANCIAL LIABILITIES OF THE AUTOMOTIVE (EXCLUDING AVTOVAZ) SEGMENT (EXCLUDING DERIVATIVES) Derivatives on financing operations of the Automotive (excluding AVTOVAZ) segment TOTAL FINANCIAL LIABILITIES OF THE AUTOMOTIVE (EXCLUDING AVTOVAZ) SEGMENT

04

7,491

893

250

64

830

9,528

395 (67)

-

(48)

(12)

268

7,886

826

250

16 30 76

818 116 (58)

9,796

Borrowings from credit institutions Other interest-bearing borrowings Lease liabilities in application of IFRS 16  (1) Other non-interest-bearing borrowings

752 (20)

- - - - -

878

6 (27)

(3) 16 20

(2)

2 5

16

15

-

-

FINANCIAL LIABILITIES OF AVTOVAZ (EXCLUDING DERIVATIVES)  (2) TOTAL FINANCIAL LIABILITIES OF THE AUTOMOTIVE SEGMENT INCLUDING AVTOVAZ (A) Derivative assets on Automotive financing operations (excluding AVTOVAZ) (B) NET CHANGE IN AUTOMOTIVE FINANCIAL LIABILITIES IN CONSOLIDATED CASH FLOWS (SECTION 4.2.5) (A) – (B)

773 (49)

113

74

911

8,659 777 426 (147)

250

129

892 (11)

10,707

-

(3)

265

924 The effects of first application of IFRS 16 “Leases” under the simplified retrospective approach are presented in note 2-A2. The other changes with no impact on cash flows (1) principally comprise the effects of first application at January 1, 2019 and new leases concluded in 2019. Figures are presented after elimination of intra-Group transactions. The negative figure reported for Other interest-bearing borrowings is thus explained by elimination of (2) the cash loaned by AVTOVAZ to the Automobile (excluding AVTOVAZ) segment. Intra-Group transactions between the Automotive (excluding AVTOVAZ) and AVTOVAZ segments are presented in the consolidated financial position by segment in section 4.2.6.1-A4.

In 2019, Renault SA and Renault Do Brasil SA redeemed bonds for a total of €551 million and €23 million respectively. Changes in financial liabilities of the AVTOVAZ segment During 2019, the AVTOVAZ group repaid financial liabilities totalling €234 million and contracted new financial liabilities totalling €186 million. At December 31, 2019, the AVTOVAZ group’s average interest rate was 7.6% for outstanding rouble-denominated bank loans (at December 31, 2018, the average rate was 10.16% for loans in roubles and 3.00% for loans in other currencies). At December 31, 2019, the AVTOVAZ group had €583 million of floating-rate bank loans (€414 million at December 31, 2018). At December 31, 2019, the AVTOVAZ group has confirmed credit lines opened with banks in the amount of €1,347 million (€1,299 million at December 31, 2018). At December 31, 2019, the AVTOVAZ group has €474 million of undrawn available confirmed borrowing facilities (€519 million at December 31, 2018), which can be used for operating activities (in 2018 it had available confirmed borrowing facilities of €329 million for operating activities and €190 million for investments). At December 31, 2019, the AVTOVAZ group was in compliance with all the covenants included in its loan agreements with banks.

Changes in financial liabilities and sales 23 – C – financing liabilities Changes in redeemable shares of the Automotive (excluding AVTOVAZ) segment The redeemable shares issued in October 1983 and April 1984 by Renault SA are subordinated perpetual shares listed on the Paris Stock exchange. They earn a minimum annual return of 9% comprising a 6.75% fixed portion and a variable portion that depends on consolidated revenues and is calculated based on identical Group structure and methods. The return on redeemable shares, amounting to €20 million for 2019 (€21 million for 2018), is included in interest expenses. Redeemable shares are stated at amortized cost. These shares are traded for €557 at December 31, 2019 and €601 at December 31, 2018. The financial liability based on the stock market value of the redeemable shares at December 31, 2019 is €444 million (€479 million at December 31, 2018). Changes in bonds of the Automotive (excluding AVTOVAZ) segment Renault SA issued two Eurobonds under its EMTN program in 2019: one on June 24, 2019 with a nominal value of €1 billion, 6-year maturity and a 1.25% coupon, and the other on October 4, 2019 with a nominal value of €500 million, 8-year maturity and a 1.125% coupon.

395

GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019