Groupe Renault - 2020 Universal Registration Document

01

EARNINGS REPORT – 2020 GROUPE RENAULT

Automotive operational free cash flow 1.3.2.1.2 AUTOMOTIVE OPERATIONAL FREE CASH FLOW

2020

2019

Change

(€ million)

Cash flow after interest and tax (excluding dividends received from publicly listed companies)

+1,523 -1,527 -3,827

+4,144 +1,829 -4,846 -1,002

-2,621 -3,356 +1,019

Change in the working capital requirement

Tangible and intangible investments net of disposals

Leased vehicles and batteries

-839

+163

Operational free cash flow excl. AVTOVAZ Operational free cash flow AVTOVAZ Automotive operational free cash flow

-4,670

125 +28

-4,795

+119

+91

-4,551

+153

-4,704

In 2020, the Automotive operational free cash flow including AVTOVAZ segment reported negative operational free cash flow of -€4,551 million. The change is resulting from: cash flow after interest and tax (excluding dividends received from P publicly listed companies) of +€1,523 million, including -€325 million of restructuring costs. It included no dividend from RCI (compared to €500 million in 2019); a negative change in the working capital requirement of P -€1,527 million (of which +€326 million in working capital requirements related to sales with a buyback commitment);

property, plant and equipment and intangible investments net of P disposals of -€3,827 million, a decrease of -€1,019 million compared with 2019; investments related to vehicles with buyback commitments and P leased batteries for -€839 million; and AVTOVAZ operational free cash flow for +€119 million, largely due P to a positive impact related to a change in the accounting presentation of reverse factoring programs in accordance with the December 2020 IFRIC IC decision, and including -€14 million in restructuring costs.

Capex and research & development 1.3.2.1.3 TANGIBLE AND INTANGIBLE INVESTMENTS NET OF DISPOSALS BY OPERATING SEGMENT

Tangible investments net of disposals (excluding capitalized leased vehicles and batteries) and intangible (excluding capitalized development costs)

Capitalized development costs

Total

2020 (€ million)

Automotive excluding AVTOVAZ

2,522

1,305

3,827

AVTOVAZ

98 10

74

172

Sales Financing Mobility Services*

0

10 12

1

11

TOTAL

2,631

1,390

4,021

Tangible investments net of disposals (excluding capitalized leased vehicles and batteries) and intangible (excluding capitalized development costs)

Capitalized development costs

Total

2019 (€ million)

Automotive excluding AVTOVAZ

2,921

1,925

4,846

AVTOVAZ

75 10

60

135

Sales Financing Mobility Services*

0 0

10

0

0

TOTAL

3,006

1,985

4,991

New segment as of 01/01/2020. *

outside Europe , the investments are mainly for the renewal of the P Global Access (successor of LOGAN and SANDERO in Romania and Morocco, and of DUSTER in Russia and Brazil), the C (XM3 in Korea), the AB (CLIO Hybrid in Turkey) and the LCV (successor of DOKKER in Morocco) ranges, and the industrialization of engines of these vehicles.

Total gross investment in 2020 decreased compared to 2019, with Europe accounting for 68% and the rest of the world for 32%: in Europe , the investments made are mainly to renew the LCV P (KANGOO and TRAFIC), C (KADJAR) and EV ranges, but also to introduce the hybrid engines for the AB (CAPTUR) and C (MEGANE) ranges;

80 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020

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