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

Nissan financial information under IFRS 12 - F - The table below presents Nissan financial information, restated under IFRS for the purposes of the Renault consolidation, for the twelve-month period from January 1 to December 31 of each year. The restatements do not include the fair value adjustments of assets and liabilities applied by Renault at the time of the acquisitions in 1999 and 2002, or the elimination of Nissan’s investment in Renault accounted for under the equity method.

2020

2019

(¥ billion)

(€ million) (1)

(¥ billion)

(€ million) (2)

Revenues

7,378

60,590

10,316

84,520

Net income Parent company shareholders’ share

(1,395)

(11,458)

85

698

Non-controlling interests’ share

5

40

(14)

(115)

Other components of comprehensive income Parent company shareholders’ share

04

(142)

(1,167)

(154)

(1,264)

Non-controlling interests’ share

(10)

(79)

23

185

Comprehensive income Parent company shareholders’ share

(1,537)

(12,624)

(69)

(566)

Non-controlling interests’ share

(5)

(39)

9

70

Dividends received from Nissan

-

-

71

579

December 31, 2020

December 31, 2019

(¥ billion)

(€ million) (1)

(¥ billion)

(€ million) (2)

Non-current assets

6,336

50,093 82,475

7,877

64,597 91,734

Current assets TOTAL ASSETS

10,432 16,769

11,186 19,063

132,568

156,331

Shareholders’ equity Parent company shareholders’ share

4,115

32,535

5,655

46,378

Non-controlling interests’ share

357

2,823

364

2,984

Non-current liabilities

5,702 6,594

45,080 52,130

5,345 7,699

43,828 63,142

Current liabilities

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 156,331 Converted at the average exchange rate for 2020 i.e.121.78 JPY = 1 EUR for income statement items, and at the December 31, 2020 rate i.e. 126.49 JPY = 1 EUR for financial (1) position items. Converted at the average exchange rate for 2019 i.e.122.06 JPY = 1 EUR for income statement items, and at the December 31, 2019 rate i.e. 121.94 JPY = 1 EUR for financial (2) position items. 16,769 132,568 19,063

Hedging of the investment in Nissan 12 - G - The Group has partially hedged the yen/euro exchange risk on its investment in Nissan since 1999. Details of this hedge are given in note 25-B2. At December 31, 2020, the corresponding hedging operations totaled ¥18 billion (€145 million) of private placements in bonds issued directly in yen on the Japanese Samurai bond market. In 2020 these operations generated foreign exchange differences that offset each other in 2020 (they generated an unfavourable effect of -€70 million in 2019). Valuation of Renault’s investment in Nissan 12 - H - at stock market prices Based on the quoted price at December 31, 2020 of ¥560 per share, Renault’s investment in Nissan is valued at €8,110 million (€9,554 million at December 31, 2019 based on the price of ¥636 per share).

Impairment test of the investment in Nissan 12 - I - At December 31, 2020, the stock market value of the investment was 44.5% lower than the value of Nissan in Renault’s statement of financial position (53.7% at December 31, 2019). In application of the approach presented in the note on accounting policies, an impairment test was carried out at December 31, 2019. An after-tax discount rate of 6.95% and a growth rate to infinity (including the effect of inflation) of 2.25% were used to calculate value in use. The terminal value was calculated under profitability assumptions consistent with Nissan’s past data and balanced medium-term prospects. The test result did not lead to recognition of any impairment on the investment in Nissan at December 31, 2019 and it was considered that a reasonably possible change in the main assumptions used should not result in a recoverable value lower than the book value of the investment in Nissan.

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020