Groupe Renault - 2019 Universal Registration Document

01

OVERVIEW OF RENAULT AND THE GROUP GROUPE RENAULT

Results Net banking income (NBI) reached €2,096 million, an increase of 8.6% compared to 2018. This growth can be explained by both the increase in Financing activities (increase in Average Productive Assets (APA) of 6.8%) and by the increase in Services activities (11.2% compared to the previous year). Operating expenses amounted to €597 million, or 1.26% of APA, an improvement of 1 basis point over last year. With an operating coefficient of 28.5%, RCI Banque demonstrates its ability to manage its operating costs while supporting strategic projects and the growth of its activity.

The cost of risk of Customer activity (financing of individuals and companies) remained under control at 0.47% of APA compared to 0.51% in 2018. In Network activity (dealer financing), the cost of risk was negative, as in 2018, at -0.09% of APA in 2019, compared to -0.33% the previous year. The total cost of risk was well-mangaged at 0.37% of APA compared to 0.33% in 2018, confirming the solidity of the acceptance and recovery process.. Pre-tax income stood at €1,327 million, compared to €1,215 million last year. Consolidated net income (parent company shareholders’ share) reached €903 million at the end of December, compared with €858 million in 2018.

RESULTS (€ million)

1,400

30%

1,327

1,300

28%

1,215

1,200

26%

1,077

1,100

1,000

24%

912

903

900

858 (1)

844

22%

800

539

19.2% (2)

20%

700

18.7%

18.0% (3)

417

600

18%

469

18.6%

18.2%

500

16%

400

14%

300

200

12%

2019

2015

2016

2017

2018

ROE as a %

After-tax profits in € million

Pre-tax profits in € million

(1) Net earnings after tax were impacted by deferred taxes of €47 M at end 2018. (2) Excluding the impact of deferred taxes, ROE reached 18.1% in 2018. (3) Excluding the impact of start-ups, ROE reached 17.6% in 2019 compared to 19.8% in 2018.

The balance sheet Good commercial performances, especially in Europe, drove historic growth in net assets at the end of December 2019 to €51.0 billion, compared to €46.9 billion at the end of December 2018 (+8.8%). Consolidated equity amounted to €5,702 million against €5,307 million at December 31, 2018 (+7.4%). Deposits from individual customers in France, Germany, Austria, the United Kingdom and Brazil (savings accounts and term deposits) reached €17.7 billion at the end of December 2019 compared to €15.9 billion at the end of December 2018 and represented around 35% of net assets at the end of December 2019.

Solvency The total capital ratio  (1) came to 16.87% as at December 31, 2019 (of which Core Equity Tier One was 14.41%) compared to 15.48% as at December 31, 2018 (including the Core Equity Tier One ratio of 15.46%). The total capital ratio increased at the end of 2019 following the issue of Tier 2 subordinated bank debt totaling €850 million. This issue strengthens RCI Banque regulatory capital in anticipation of the expected recalibration of the parameters of our internal models following the review conducted by the ECB and the application of the EBA Guidelines on the definition of defaulted receivables.

Ratio including interim profits net of forecast dividends, subject to the approval of the regulator in accordance with Article 26 (2) of (1) Regulation (EU) No. 575/2013.

50 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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