Groupe Renault - 2020 Universal Registration Document

GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY

ANNUAL GENERAL MEETING OF RENAULT ON APRIL 23, 2021

GROUPE RENAULT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

RENAULT AND ITS SHAREHOLDERS

ADDITIONAL INFORMATION

INTERNAL CONTROL AND RISK MANAGEMENT

Risks related to operations 1.5.2.2 Risks related to geopolitical instability and economic conditions - high risk with impact ≈ probability The Group has industrial and commercial operations in a large number of countries (see sections 1.1, 1.2, 1.3 of this Document). Some of these countries may present specific risks that could have an adverse impact on the Group’s industrial and commercial operations, sales, revenues, income statement or balance sheet, despite a geographical spread of sales that limits the overall impact of regional contingencies while taking advantage of opportunities. These risks and opportunities may relate to the changing economic related situations, political or regulatory instability, social unrest, protectionism, nationalizations, fluctuating interest rates and exchange rates, lack of foreign currency liquidity or foreign exchange control measures. In 2020, the risks were also health-related, in relation with the COVID-19 pandemic and its consequences, such as the numerous production unit, suppliers site and customer sales point shut-downs. The health crisis has also contributed to the deterioration of the economic situation. These disruptions were experienced on all markets by most of automotive industry actors. Groupe Renault and the industry remain exposed to the risk related to geopolitical instability and economic conditions and its consequences depending on the evolution of the health situation. Specific risks Europe The Group’s activities remain heavily dependent on the European market, which in 2020 represented approximately half of its sales (see the Group’s worldwide sales in Chapter 1.1.3.2 of this Document and the breakdown of sales in the Europe Region). Eurasia In Turkey, the Group is exposed to geopolitical risk, and macroeconomic and regulatory instability. As a result, the market is highly volatile, leading the Group to implement a risk management policy aimed at combining the short-term adaptability of its production system and the preparation of alternative solutions for the main logistics flows. Turkey accounted for less than 5% of Groupe Renault sales and just over 11% of production in 2020 (see chapters 1.1.3.2 and 1.1.3.4 of this Document for sales and production figures for 2019, as well as chapter 1.1.3.8 for the renewal of the partnership with Oyak). In Russia, the Group ensures, through its various sites and via the AVTOVAZ group, a major player in the Russian market (see chapter 1.1.3.1 paragraph Lada: complete transformation of the range continues and chapter 1.1.6.2 Detailed organization chart at December 31, 2020), a management aligned as closely as possible with fluctuations in the economic environment. This management, which is likely to affect sales volumes (which represented 13% of the Group’s sales in 2020), revenues and profits (see chapters 1.1.3.2 for sales and 1.1.3.8 for the 2020 results), includes the consideration of:

risks related to the political and economic situation (economic P sanctions or other factors of instability resulting in changes in government policy in support of local integration and export assistance);

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risks related to changes in customs regulations; P risks related to the situation of local suppliers. P

Stronger local integration also remains a priority at all production facilities. In 2020, production at the sites in Russia represented slightly less than 19% of Groupe Renault’s production (see chapter 1.1.3.4). Americas In a volatile political and economic environment that has worsened with the global health crisis, the main countries in the region have been impacted by exchange rates and falling GDP. The automotive market fell as a result, and the Americas region accordingly rolled out a vigorous plan in 2020 with the restructuring of industrial capacity accompanied by a reduction in headcount, the elimination of unprofitable sales and higher price increases than the market. These measures helped offset most of the exogenous impacts from the time the market recovery started in the second half of 2020. The subsidiaries benefit from an increasingly optimized structure that should make it possible, if necessary, to face further turbulence in 2021 or benefit fully if there is an economic recovery. In this plan, sales in the Americas accounted for less than 9% of Groupe Renault sales in 2020, compared with more than 11% in 2019. Africa, Middle-East, India, Pacific In Iran, US sanctions continued to apply throughout the year, preventing the import of all foreign components for vehicle production in the country (see chapter 1.1.3.8 of this Document). In Algeria, faced with an economic crisis and diminishing foreign exchange reserves, the public authorities have blocked since early 2020 all imports of components for vehicle production, which has halted production (see chapters 1.1.3.2 and 1.1.3.4 of this Document for sales and production, 1.1.3.8 for partnership data, and 1.1.6). Groupe Renault has taken measures to safeguard its local assets, with a structured plan to adapt the workforce and shut down the RAP plant in Oran. The site has been preserved, and will be able to resume for the needs of the Group when the broader context allows. Risk management In terms of industrial locations, the Group’s geographical choices are made taking into account the risks of instability built into a global industrial approach in order to ensure risk diversification. Manufacturing investments represent a major part of the Group’s exposure to political risks. Country risk related to manufacturing and financial investment is in principle not hedged, but the risk of non-achievement of objectives is included in the expected profitability calculation. From an operational standpoint, the Group continuously increases the level of local integration in order to reduce the impact of political and foreign exchange risks and make its products more competitive.

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020