Groupe Renault - 2020 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

subject to a tax inspection or preliminary audit. No assigned tax receivables remained in the balance sheets at December 31, 2020. The assigned receivables are derecognized when the associated risks and benefits are substantially transferred, as described in note 2-P. The Automotive segments assign their dealership receivables to the Sales financing segment. The total dealership receivables transferred to the Sales financing segment principally concerns the Groupe Renault. The amounts are presented in note 15-D.

Automotive segments financing by reverse factoring programs The accounting treatment for these programs is described in note 2-P Assignment of receivables and reverse factoring. At December 31, 2020, reverse-factoring programs concerned €26 million of financial liabilities (€44 million at December 31, 2019).

FINANCIAL INSTRUMENTS BY CATEGORY, FAIR VALUE AND IMPACT ON NET INCOME NOTE 24 Financial instruments by category and fair 24 - A - value by level IFRS 9 defines three categories of financial instruments: financial assets at fair value through other components of P comprehensive income;

level 2: instruments whose fair values are derived from observable P market prices and are not included in level 1; level 3: instruments whose fair values are derived from P unobservable inputs on the market; the fair value of investments in non-controlled entities is generally based on the share of net assets. Fair values have been determined on the basis of information available at the end of the year and do not therefore take account of subsequent movements. In 2020, no financial instruments were transferred between level 1 and level 2, or into or out of level 3.

financial assets at fair value through profit or loss; P loans and receivables carried at amortized cost. P The following breakdown by level of fair value is presented for financial instruments carried in the balance sheet at fair value: level 1: instruments whose fair values are derived from quoted P prices in an active market; fair value is generally identical to the most recent quoted price;

December 31, 2020

Balance sheet value

Equity instruments valued under the applicable standard

Fair value of financial assets at amortized cost

Fair value level of financial assets at fair value

Fair value through profit and loss

Fair value through equity

Amortized cost

FINANCIAL ASSETS AND OTHER ASSETS (€ million)

Notes

Total

Sales Financing receivables

15 16 17 17

40,820

- - - -

- - - -

40,820

40,645 (1)

3

Automotive customer receivables

910

910

(2)

Tax receivables (including current taxes due) Other receivables and prepaid expenses

1,951 2,680

1,951 2,680

(2)

(2)

Derivatives on operating transactions of the Automotive segments Derivatives on financing operations of the Sales Financing segment Investments in unconsolidated controlled entities

17

31

8

23

-

2

17 17 22 22 22 22 22 22

230

196

34

- -

2

91

91

Daimler shares

951

951

1 3 1 2 3

Other investments in non-controlled entities

46

46 94

- -

Marketable securities and negotiable debt instruments Derivatives on financing operations of the Automotive segments

426

332

393 618

393

- -

-

Loans and other

-

618

(2)

Cash and cash equivalents

21,697 70,844

8,709 9,446

380

12,608 59,587

1 & 3

(2)

TOTAL FINANCIAL ASSETS AND OTHER ASSETS 91 The fair value of sales financing receivables is estimated by discounting future cash flows at rates that would be applicable to similar loans (conditions, maturity and debtor (1) quality) at the year-end. Receivables with a term of less than one year are not discounted, as their fair value does not differ significantly from their net book value. This is a level 3 fair value, as it uses recognized models for which certain significant data, such as the credit risk associated with the portfolio of receivables, are not based on observable market data. The Group does not report the fair value of financial assets such as Automotive customer receivables, tax receivables or cash and cash equivalents because their net book (2) value after impairment is a reasonable approximation of their fair value. 1,720

398 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020

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