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

RENAULT SA ANNUAL FINANCIAL STATEMENTS

Translation of foreign currency receivables D. and liabilities Receivables and liabilities denominated in foreign currencies are translated as follows: all receivables and liabilities in foreign currencies are converted at P the year-end exchange rate; exchange differences arising between the date of transactions and P December 31 are recorded in Other assets and Deferred income (translation adjustment); a provision for risk equal to the unrealized exchange losses is P established after determining an overall foreign exchange position for each currency (including derivatives); Unrealized losses affecting Nissan hedge are no longer covered by provisions in the income statement. Under regulation ANC 2015-05, no provisions are recorded in the income statement for unrealized losses on the hedging instrument until the hedged cash flows are realized (date of liquidation or sale of the investment). Redeemable shares E. Redeemable shares are recorded in a separate line of shareholders’ equity at nominal value with no subsequent revaluation. Loans and financial debts F. Loans are stated at their nominal amount. Loan costs, including issuance expenses, and bond redemption premiums, which are recorded in Other Assets, are amortized on a straight-line basis over the corresponding duration. Provisions for risks and liabilities G. Provisions for risks and liabilities are defined in accordance with ANC regulation 2014-03. They are established for probable payment obligations existing at the year-end. A contingent liability, in contrast, is an obligation that is neither probable nor definite at the date the financial statements are established, or a probable obligation that cannot be reliably estimated. Provisions are not established for contingent liabilities, but an off-balance sheet commitment is reported where relevant.

Derivatives H. Changes in the value of hedging derivatives are not recognized in the balance sheet unless partial or total recognition of such changes is relevant to ensure symmetrical treatment to the hedged item . This symmetrical treatment would involve revaluation of the hedging instrument in a transition account, with a corresponding entry in a cash instrument account, in parallel to the translation adjustments booked on the hedged item. Foreign exchange gains and losses on loans set up for the Nissan hedge have no longer been included in profit and loss since the application of ANC regulation 2015-05 from January 1, 2017. They are recorded in specific accounts under other receivables or other liabilities and the accumulated amounts will be transferred to the income statement at the date of liquidation or sale of the investment. The value of derivatives in an Isolated Open Position is adjusted to market value in the balance sheet at each year-end, via an entry to the translation adjustment account. If the market value indicates an unrealized loss, an equivalent provision is recognized in the income statement. The positive or negative difference between the spot price and the forward price of the hedge is spread over the duration of the hedge in the financial result. Assumptions and methods used Unrealized foreign exchange gains and losses correspond to the difference between the spot price and the year-end price. Net extraordinary items I. Exceptional items are revenues and expenses resulting from events or transactions that are clearly distinct from the company’s normal business operations, and are not expected to recur on a frequent or regular basis.

04

Investment income and expenses

4.4.2.3 Details are as follows:

2019

2018

(€ million)

Dividends received from Nissan Motor Co Ltd.

579

784

Dividends received from Daimler Dividends received from Renault s.a.s

54 23 52 43

60

916

Dividends received from Dacia

10 33 12

Interest on loans

Increases provisions related to subsidiaries and affiliates

(260)

TOTAL

491

1 814

All interest on loans concerns Group subsidiaries. In view of declining sales volumes and the downward revision of our prospects on the Chinese market, impairment of €260 million was recorded on the shares in Dongfeng Renault Automotive Company.

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019