Groupe Renault - 2019 Universal Registration Document

04

RENAULT SA ANNUAL FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Notes to the annual financial statements 4.4.2 The following disclosures constitute the notes to the balance sheet at December 31, 2019, before appropriation of net profit for the year, which shows total assets of €31,924 million and to the income statement for the year then ended, which shows net profit of €383 million. The financial statements cover the twelve-month period from January 1 to December 31, 2019.

the shareholders’ equity of these companies is determined under P the accounting policies applied in the consolidated financial statements; as this is a valuation method, intercompany eliminations are not taken into account; in valuing a subsidiary, its holdings in companies wholly controlled P by the Group are valued in the same way; the change during the year in the overall percentage of P shareholders’ equity corresponding to these interests is not an income or loss item; it is included in shareholders’ equity under "Equity valuation difference". This amount cannot be distributed or used to offset losses. When it is negative, a provision for general impairment is established as a charge against income. Investments in companies not wholly controlled by Renault SA are valued at acquisition cost, less related expenses, or at their book value if this is lower. The book value takes account of the share of net assets and profitability prospects. Provisions are established when the book value of the investments is lower than the gross value. Loans granted and receivables relating to subsidiaries and affiliates are recorded at historical cost. Impairment is recognized when there is a risk that these advances will not be recovered. Marketable securities B. Marketable securities are valued at acquisition cost, excluding related expenses and accrued interest for bonds, or at market value if this is lower. Treasury shares held for the purposes of free share plans and stock option plans are included in marketable securities. These shares are covered by a provision for expenses, corresponding to the difference between the value of the shares (acquisition price or net book value at the date of reallocation) and the exercise price of the options for beneficiaries, when that exercise price is lower than the acquisition cost. Treasury shares not allocated to a specific plan are also included in marketable securities. Impairment is recorded if the stock market price falls below the book value. The fair value of securities is determined mainly by reference to market prices. Receivables C. Receivables are stated at nominal value. Impairment is recognized when their realizable value falls below historical cost, notably based on age and the risk of non-recovery.

The financial statements for 2019 were approved for issue by the Board of Directors’ meeting of Renault SA on February 13, 2020. These financial statements are included in the consolidated financial statements of Group Renault. 4.4.2.1 The Board of Directors met on January 24, 2019, it has taken note of the resignation of its Chairman and Chief Executive Officer Carlos Ghosn. The Board of Directors has decided to provide Renault with a new governance structure and to institute a separation of the functions of Chairman of the Board and Chief Executive Officer. The Board of Directors co-opted Jean-Dominique Sénard as new Director and elected him Chairman. On the latter’s proposal, the Board appointed Thierry Bolloré as Chief Executive Officer. At its meeting held on October 11, 2019, the Board of Directors decided to end the mandate of Thierry Bolloré as Chief Executive Officer of Renault SA with immediate effect and appoint, with immediate effect, Clotilde Delbos as Chief Executive Officer of Renault SA for an interim period, until a process was completed to appoint a new Chief Executive Officer. 4.4.2.2 Renault SA has drawn up its annual financial statements were approved in accordance with the provisions of regulation 2014-03 of the ANC (Autorité des Normes Comptables), approved by the ministerial decision of September 8, 2014 concerning the French chart of accounts. The following methods were applied in valuing balance sheet and income statement items: Investments A. As allowed by CNC (Conseil National de la Comptabilité) notice no34 (July 1988), as an alternative to the standard valuation method for investments carried in the balance sheet, Renault SA has opted to state investments in wholly-controlled companies at equity: this method is applied to all companies that are fully consolidated P in the Group’s financial statements; Significant events Accounting policies

426 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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