Groupe Renault - 2019 Universal Registration Document

RENAULT: A RESPONSIBLE COMPANY

ANNUAL GENERAL MEETING OF RENAULT ON APRIL 24, 2020

GROUPE RENAULT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

RENAULT AND ITS SHAREHOLDERS

ADDITIONAL INFORMATION

THE ALLIANCE

On October 20, 2016, Nissan, which is 43.4% owned by Renault, acquired a 34% stake in Mitsubishi Motors, thus becoming its largest shareholder. The acquisition of Mitsubishi Motors by Nissan enabled the expanded Alliance to consolidate its industrial position, the three manufacturers having a combined sales volume of more than 10.76 million units in 2018. On March 12, 2019, the Alliance Operating Board was set up. This is a body that oversees the operations and governance of the Alliance between Renault, Nissan and Mitsubishi Motors and heralds a new beginning for the world’s leading automotive alliance.

43.4%

34%

01

RENAULT-NISSAN B.V.

50%

50%

RENAULT

NISSAN MITSUBISHI MOTORS

15%

1.55%

1.55%

3.1%

3.1%

Functioning of the Alliance in 2019 1.2.3

The Alliance Operating Board 1.2.3.1 The Alliance Operating Board was created on March 12, 2019. It is in charge of operational coordination between Renault, Nissan and Mitsubishi Motors and will take new initiatives that will create value for their respective shareholders and employees. This new Alliance Operating Board comprises four members, appointed by Renault (2 members, including the Chairman of the Alliance Operating Board), by Nissan (1 member), and by Mitsubishi Motors (1 member). Mr Jean-Dominique Senard, Chairman of the Board of Directors of Renault, chairs the Alliance Operating Board, which also includes the Chief Executive Officer of Nissan, Mr Makoto Uchida, the Chief Executive Officer of Renault, Ms Clotilde Delbos, and the Chairman of the Board of Directors of Mitsubishi Motors, Mr Osamu Masuko, who have permanent seats on the Board. The decisions of the Alliance Operating Board are made by all members by consensus, in accordance with the Alliance’s “win-win” principle. The Alliance Operating Board meets monthly, and as often as the Alliance’s interest requires, in Paris or Yokohama. This new Alliance Operating Board oversees Alliance operations and governance issues involving Renault, Nissan and Mitsubishi Motors. In practice, the Board replaces RNBV in its governance functions. In any event, RNBV continues to exist, and supports the Alliance Operating Board, particularly for decisions and proposals that are delegated to RNBV pursuant to the RAMA, the Management Agreements and the by-laws of Renault s.a.s. and of RNBV. The new Alliance Operating Board may be assisted by specific operating committees that make recommendations on new sources of value creation between the three automakers. During 2019, the Alliance Operating Board worked on programs aiming at significantly improving and accelerating the operating effectiveness of the Alliance in the interest of the three companies, including action plans whose objective is to maximize the contribution of the Alliance in order to support the strategic plan and the operating results of each company.

In December 2019, the Alliance Operating Board appointed a General Secretary, Mr Hadi Zablit, whose role is to coordinate and facilitate the major projects of the Alliance that are going to be launched to accelerate the operating efficiency of the respective companies. The Alliance General Secretary reports to the Alliance Operating Board. On January 30, 2020, the Alliance Operating Board defined a new framework to further strengthen its business model and consolidate its governance structure. The three partner companies reaffirmed that the Alliance is essential for strategic growth and improving their respective competitiveness This new framework will strengthen the Alliance member companies’ ability to leverage on their strengths and boost their strategies. The Board also reaffirmed the key programs aimed at supporting initiatives that will enable each member to become more competitive and to increase their profitability in the context of the Each of the three companies will be the reference company for a P dedicated Region: Nissan for China, Renault for Europe, and Mitsubishi for South-East Asia; Engineering will work on a leader/follower model, expanding this P scheme to platforms, powertrains and key technologies. This means one company will lead in the Alliance for the development of each key technology, which will then be shared with the Alliance partners; The three companies will pool their CAFE credits in Europe from P 2020; For light commercial vehicles (LCVs), Renault will develop and P manufacture the Mitsubishi light commercial vehicle at its Sandouville plant, based on the Renault TRAFIC platform which will be marketed in Oceania; and The three companies will concertedly announce the measures P needed to improve their performance over the time horizon of their respective strategic plans. This new scheme will enhance the effectiveness and efficiency of the Alliance projects, in order to optimize the use of resources and investments within the three companies. automotive industry’s transition to new mobility services. The Alliance Operating Board has therefore decided:

59 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019