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

SALES FINANCING RECEIVABLES NOTE 15 Sales financing receivables by nature 15 - A -

December 31, 2020

December 31, 2019

(€ million)

Dealership receivables

7,862

10,901 25,016 10,305 46,222

Financing for end-customers Leasing and similar operations

23,383 10,639 41,884 (1,064) 40,820

Gross value Impairment*

(848)

Net value

45,374

The change of €216 million in impairment in 2020 notably reflects revision of the expected credit loss assumptions in the context of the COVID-19 pandemic. *

04

Details of fair value are given in note 24-A.

Assignments and assets pledged as guarantees for management of the liquidity reserve 15 - B - Assignment of sales financing assets B1

December 31, 2020

December 31, 2019

Balance sheet value

Fair value Balance sheet value

Fair value

(€ million)

Assigned receivables carried in the balance sheet

11,790

11,743

10,508

10,504

Associated liabilities

3,259

2,916

3,243

3,264

The Sales Financing segment has undertaken several public securitization operations (in Germany, France and Italy) and several conduit financing operations (Brazil, the United Kingdom and Germany) involving loans to final customers and receivables on the dealership network. Both types of operation are conducted through special purpose vehicles. Some public operations were subscribed by RCI Banque, which makes it possible to have securities eligible as collateral for the European Central Bank. In 2020, RCI Banque Group undertook two public securitization operations in France, associated with the rents from leases with purchase options. One was a public operation backed by lease rent receivables, totalling €950 million of Class A instruments rated AAA by DBRS and Aaa by Moody’s (of which €200 million were self-subscribed by RCI) and €41.5 million of Class B instruments rated AA(Low) by DBRS and Aa3 par Moody’s. The other was for an original amount of €474 million of Class A instruments rated AAA by DBRS and Aaa by Moody’s, entirely self-subscribed by RCI. The receivables assigned through such operations are not derecognized, as all risks are retained by the Group. The associated liabilities correspond to securities resulting from the securitization operations, and are recognized in other debts represented by a certificate.

The difference between the receivables assigned and the amount of the associated liabilities corresponds to the higher credit necessary for these operations, and the share of securities retained by RCI Banque to form a liquidity reserve. Securitized assets can no longer be assigned or pledged. Subscribers to debt securities only have claims on the assets assigned. Assets pledged as guarantees for management of the B2 liquidity reserve For management of its liquidity reserve, the Sales Financing segment has provided guarantees to the Banque de France under France’s central collateral management system 3G (G estion Globale des Garanties ) in the form of assets with a book value of €7,465 million at December 31, 2020 (€5,882 million at December 31, 2019). These guarantees comprise €6,675 million in the form of shares in securitization vehicles, €104 million in euro bonds and €686 million in sales financing receivables (€5,325 million of shares in securitization vehicles, €151 million in euro bonds and €406 million in sales financing receivables at December 31, 2019). The funding provided by the Banque de France against these guarantees amounts to €2,250 million at December 31, 2020 (€2,700 million at December 31, 2019). All assets provided as guarantees to the Banque de France remain in the balance sheet.

Sales financing receivables by maturity 15 - C -

December 31, 2020

December 31, 2019

(€ million)

-1 year

20,727 19,675

23,174 21,675

1 to 5 years

+5 years

418

525

TOTAL SALES FINANCING RECEIVABLES – NET VALUE

40,820

45,374

381

GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020