Groupe Renault - 2020 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

initial recognition, and receivables in default). For exposures that received extensions during the lockdown periods, the method consists of covering non-overdue outstanding amounts concerned by current or previous moratoriums at the provision rate used for

Breakdown of sales financing receivables by 15 - D - level of risk Difficulties with recovery of receivables during the COVID-19 pandemic led to an increase in the impairment of receivables due to

customer credit with higher risk since initial recognition. The Sales the higher amounts transferred to receivables in default, and an Financing segment also raised the provision estimate for the increase in the calculation parameters. In accordance with the forward-looking scenario concerning the customer segments most recommendation of ESMA, the Sales Financing segment did not severely affected by the crisis. The Sales Financing segment also always consider that payment date extensions granted raised the weighting of the “adverse” forward-looking scenario, systematically to a large population of outstanding receivables while continuing the higher weighting for the stability scenarios and should give rise to transfer of the receivables to the three stages of reducing the weighting of the most optimistic scenarios. risk (healthy receivables, receivables showing higher credit risk since

Financing for final customers

December 31, 2020

Dealer financing

(€ million)

Gross value

34,022 29,148

7,862 7,514

41,884 36,662

Healthy receivables

4,170

284

4,454

Receivables showing higher credit risk since initial recognition

Receivables in default

704

64

768

% of total receivables in default

2.1% (951) (226) (252) (473)

0.8% (113)

1.8%

Impairment

(1,064)

Impairment in respect of healthy receivables

(63) (17) (33)

(289) (269) (506)

Impairment in respect of receivables showing higher credit risk since initial recognition

Impairment in respect of receivables in default

Total net value

33,071

7,749

40,820

Financing for final customers

Dealer financing

December 31, 2019

(€ million)

Gross value

35,321 31,690

10,901 10,527

46,222 42,217

Healthy receivables

Receivables showing higher credit risk since initial recognition

3,034

298

3,332

Receivables in default

597

76

673

% of total receivables in default

1.7% (747) (173) (167) (407)

0.7% (101)

1.5% (848) (230) (177) (441)

Impairment

Impairment in respect of healthy receivables

(57) (10) (34)

Impairment in respect of receivables showing higher credit risk since initial recognition

Impairment in respect of receivables in default

Total net value

34,574

10,800

45,374

Customer credit risk is assessed (using a scoring system) and monitored by type of activity (customers and dealers). There is no indication at the year-end that the quality of sales financing receivables not yet due or unimpaired has been adversely affected, nor is there any significant concentration of risks within the sales financing customer base as defined by the regulations.

Exposure of sales financing to credit risk 15 - E - The maximum exposure to credit risk for the Sales Financing activity is represented by the net book value of sales financing receivables plus the amount of irrevocable financing commitments for customers reported under off-balance sheet commitments given (note 28-A). This risk is reduced by guarantees provided by customers, as reported in off-balance sheet commitments received (note 28-B). In particular, guarantees held in connection with overdue or impaired sales financing receivables amounted to €866 million at December 31, 2020 (€821 million at December 31, 2019).

382 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020

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