Groupe Renault - 2019 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

In the event of default, the non-defaulting party has the right to suspend execution of its payment obligations and to demand payment or transfer of a termination balance for all terminated transactions. The ISDA and FBF framework agreements do not meet the requirements for netting in the financial statements. The Group currently has no legally enforceable right to net the reported amounts, except in the case of default or a credit event.

Netting agreements and other similar commitments A2 FRAMEWORK AGREEMENTS FOR OPERATIONS ON FINANCIAL FUTURES AND SIMILAR AGREEMENTS The Group negotiates its derivatives contracts in accordance with the framework agreements issued by the International Swaps and Derivatives Association (ISDA) and the FBF ( Fédération Bancaire Française ).

NETTING OF FINANCIAL ASSETS AND LIABILITIES: SUMMARY

Amounts not netted in the statement of financial position

Amounts in the statement of financial position eligible for netting

Financial instruments assets/liabilities

Guarantees included in liabilities

Off-balance sheet guarantees

December 31, 2019 (€ million)

Net amounts

Assets Derivatives on financing operations of the Automotive (excluding AVTOVAZ) segment

265 177 441 883

(173)

- -

- - - -

92

Derivatives on financing operations of the Sales Financing segment

(37)

140 244 476

Sales financing receivables on dealers*

-

(197) (197)

TOTAL ASSETS

(210)

Derivatives on financing operations of the Automotive (excluding AVTOVAZ) segment Derivatives on financing operations of the Sales Financing segment

92

(37)

- -

- -

55

TOTAL LIABILITIES 150 Sales financing receivables held by Banco RCI Brasil, whose exposure is covered by pledges of “letras de cambio” (bills of exchange) subscribed by dealers and reported * under other debts represented by a certificate. 360 (210)

(Negotiable European Commercial Paper), or financing via the banking sector or public or semi-public bodies. Medium-term refinancing for the Automotive (excluding AVTOVAZ) segment in 2019 was mostly provided by bond issues. Renault SA issued two bonds under its EMTN program: two Eurobonds, one with a nominal value of €1 billion issued on June 24, 2019 with 6-year maturity and a coupon of 1.25%, and the other with a nominal value of €500 million issued on October 4, 2019 with 8-year maturity and a 1.125% coupon. The contractual documentation for this financing contains no clause that could affect the continued supply of credit in the event of any change in Renault’s credit rating or financial ratio compliance. However, certain types of financing, particularly market financing, contain standard clauses ( pari passu , negative pledge and cross-default clauses). The Automotive (excluding AVTOVAZ) segment also has confirmed credit lines opened with banks worth €3,480 million, maturing at various times up to 2024. None of these credit lines was drawn at December 31, 2019. These confirmed credit facilities form a liquidity reserve. The contractual documentation for these confirmed bank credit facilities contains no clause that might adversely affect credit availability or continuation as a result of a change in Renault’s credit rating or financial ratio compliance. Liquidity risk management refers to an internal model to define the level of the liquidity reserve the Automotive segment must maintain to finance its operations and development. The Automotive liquidity reserve is closely monitored by a monthly regular review and reporting that is validated internally.

Management of financial risks of the 25 – B – Automotive (excluding AVTOVAZ) and Sales Financing segments The Automotive (excluding AVTOVAZ) and Sales Financing segments are exposed to the following financial risks: liquidity risks; P market risks (foreign exchange, interest rate, equity and P commodity risks); counterparty and credit risks. P Liquidity risks B1 The Automotive (excluding AVTOVAZ) and Sales Financing segments are financed via the capital markets, through: long-term resources (bond issues, private placements, project P financing, term deposits, etc.); short-term bank loans or commercial paper issues and sight P deposits; securitization of receivables by Sales Financing. P The Automotive (excluding AVTOVAZ) segment needs sufficient financial resources to finance its day-to-day business and the investments necessary for future growth. It therefore regularly borrows on the banking and capital markets to refinance its gross debt for the Automotive (excluding AVTOVAZ) segment, and this exposes it to liquidity risks in the event of extended market closures or tensions over credit availability. As part of its centralized cash management policy, Renault SA handles most refinancing for the Automotive (excluding AVTOVAZ) segment through long-term resources via the capital markets (bond issues and private placements), short-term financing such as NEU CP

402 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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