Groupe Renault - 2020 Universal Registration Document

GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY

ANNUAL GENERAL MEETING OF RENAULT ON APRIL 23, 2021

FINANCIAL STATEMENTS

GROUPE RENAULT

CORPORATE GOVERNANCE

RENAULT AND ITS SHAREHOLDERS

ADDITIONAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

The residual unrecognized deferred tax assets of entities included in the French tax consolidation group amounted to €3,845 million (€3,442 million at December 31, 2019). They comprise tax losses that can be carried forward indefinitely to set against future taxable income up to a limit of 50% of that income. €372 million of these unrecognized assets were generated by items booked through shareholders’ equity (effects of the partial hedge of the investment in Nissan), and €3,473 million were generated by items affecting the income statement (respectively €393 million and €3,049 million at December 31, 2019).

For entities not in the French tax consolidation group, unrecognized deferred tax assets totaled €913 million at December 31, 2020 (€848 million at December 31, 2019), including €252 million for AVTOVAZ (€34 million at December 31, 2019) and €661 million for the Group excluding AVTOVAZ (€814 million at December 31, 2019) and principally comprise tax loss carryforwards generated by the Group in Brazil, India, and to a lesser extent in Argentina.

Breakdown of deferred taxes on tax losses by expiry date D3 Unrecognized loss carryforwards represent a potential tax saving of €4,596 million at December 31, 2020.

04

December 31, 2020

December 31, 2019

(€ million)

Deferred taxes on:

Recognized Not recognized

Total Recognized Not recognized

Total

Tax losses that can be carried forward indefinitely* Tax losses expiring in more than 5 years Tax losses expiring in between 1 and 5 years

724

4,196

4,920

879

3,848

4,727

3 7 2

78 67

81 74

-

29

29

3

104

107

Tax losses expiring within 1 year

3

5

-

8

8

TOTAL DEFERRED TAXES ON TAX LOSSES (EXCLUDING AVTOVAZ) TOTAL DEFERRED TAXES ON TAX LOSSES OF AVTOVAZ TOTAL DEFERRED TAXES ON TAX LOSSES OF THE GROUP

736

4,344

5,080

882 293

3,989

4,871

-

252

252

34

327

736 5,198 Including recognized and unrecognized deferred taxes corresponding to tax loss carryforwards of entities included in the French tax consolidation group calculated at the * income tax rate of 28.14%, which amount to €701 million and €3,845 million respectively at December 31, 2020 and €842 million and €3,442 million respectively at December 31, 2019 (note 8-D2). 4,596 5,332 1,175 4,023

BASIC AND DILUTED EARNINGS PER SHARE NOTE 9 (thousands of shares)

2020

2019

Shares in circulation

295,722 (4,990) (19,383) 271,349

295,722 (4,700) (19,383) 271,639

Treasury shares

Shares held by Nissan x Renault’s share in Nissan

Number of shares used to calculate basic earnings per share

The number of shares used to calculate the basic earnings per share is the weighted average number of ordinary shares in circulation during the period, i.e. after neutralization of treasury shares and Renault shares held by Nissan.

2020

2019

(thousands of shares)

Number of shares used to calculate basic earnings per share

271,349

271,639

Dilutive effect of stock options, performance share rights and other share-based payments

-

-

Number of shares used to calculate diluted earnings per share

271,349

271,639

The number of shares used to calculate the diluted earnings per share is the weighted average number of ordinary shares potentially in circulation during the period, i.e. the number of shares used to calculate the basic earnings per share plus the number of stock

options and rights to performance shares awarded under the relevant plans, that have a dilutive effect and fulfil the performance conditions at the reporting date when issuance is conditional

(note 18-G).

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020