CONSOLIDATED FINANCIAL STATEMENTS 2019
Unaudited document – Statutory auditors’ report on the consolidated financial statements will be issued shortly




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4.2 Notes to the consolidated financial statements
CONSOLIDATED FINANCIAL STATEMENTS 2019 ......................................................................................................................................... 1
4.2.1 Consolidated income statement .................................................................................................................................................. 3
4.2.2 Consolidated comprehensive income......................................................................................................................................... 4
4.2.3 Consolidated financial position ................................................................................................................................................... 5
4.2.4 Changes in consolidated shareholders’ equity ......................................................................................................................... 7
4.2.5 Consolidated cash flows .............................................................................................................................................................. 8
4.2.6 Notes to the consolidated financial statements....................................................................................................................... 10
4.2.6.1 Information on operating segments and regions .......................................................................................................................... 10
A – Information by operating segment ........................................................................................................................................................... 11
A1 – Consolidated income statement by operating segment .................................................................................................................... 11
A2 – Consolidated financial position by operating segment ...................................................................................................................... 13
A3 – Consolidated cash flows by operating segment ................................................................................................................................ 16
A4 – Other information for the Automotive segments: net cash position or net financial indebtedness and operational free cash flow . 20
B – Information by region ............................................................................................................................................................................... 22

4.2.6.2 Accounting policies and scope of consolidation ........................................................................................................................... 23
Note 1 – Approval of the financial statements ........................................................................................................................................... 23
Note 2 – Accounting policies ...................................................................................................................................................................... 23
Note 3 – Changes in the scope of consolidation ....................................................................................................................................... 23

4.2.6.3 Consolidated income statement .................................................................................................................................................... 40

Note 4 – Revenues..................................................................................................................................................................................... 40
Note 5 – Operating margin: details of income and expenses by nature ................................................................................................... 41
Note 6 – Other operating income and expenses ....................................................................................................................................... 42
Note 7 – Financial income (expenses)....................................................................................................................................................... 43
Note 8 – Current and deferred taxes ......................................................................................................................................................... 44
Note 9 – Basic and diluted earnings per share .......................................................................................................................................... 48

4.2.6.4 Operating assets and liabilities, shareholders’ equity ................................................................................................................... 49
Note 10 – Intangible assets and property, plant and equipment ............................................................................................................... 49
Note 11 – Impairment tests on fixed assets (other than leased assets) ................................................................................................... 53
Note 12 – Investment in Nissan ................................................................................................................................................................. 55
Note 13 – Investments in other associates and joint ventures .................................................................................................................. 60
Note 14 – Inventories ................................................................................................................................................................................. 63
Note 15 – Sales Financing receivables ..................................................................................................................................................... 64
Note 16 – Automotive receivables ............................................................................................................................................................. 66
Note 17 – Other current and non-current assets ....................................................................................................................................... 67
Note 18 – Shareholders’ equity .................................................................................................................................................................. 68
Note 19 – Provisions for pensions and other long-term employee benefit obligations ............................................................................. 73
Note 20 – Change in provisions ................................................................................................................................................................. 78
Note 21 – Other current and non-current liabilities .................................................................................................................................... 79

4.2.6.5 Financial assets and liabilities, fair value and management of financial risks .............................................................................. 80
Note 22 – Financial assets – cash and cash equivalents .......................................................................................................................... 80
Note 23 – Financial liabilities and sales financing debts ........................................................................................................................... 81
Note 24 – Financial instruments by category, fair value and impact on net income ................................................................................. 87
Note 25 – Derivatives and management of financial risks......................................................................................................................... 91

4.2.6.6 Cash flows and other information................................................................................................................................................ 100
Note 26 – Cash flows ............................................................................................................................................................................... 100
Note 27 – Related parties ........................................................................................................................................................................ 101
Note 28 – Off-balance sheet commitments and contingent assets and liabilities ................................................................................... 103
Note 29 – Fees paid to statutory auditors and their network ................................................................................................................... 105
Note 30 – Subsequent events .................................................................................................................................................................. 106
Note 31 – Consolidated companies ......................................................................................................................................................... 107




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4.2.1 Consolidated income statement

(€ million) 2019 (1)
Notes 2018
Revenues 4 55,537 57,419
Cost of goods and services sold (44,665) (45,417)
Research and development expenses 10-A (2,658) (2,598)
Selling, general and administrative expenses (5,552) (5,792)
Operating margin 5 2,662 3,612
Other operating income and expenses 6 (557) (625)
Other operating income 6 80 149
Other operating expenses 6 (637) (774)
Operating income (loss) 2,105 2,987
Cost of net financial indebtedness 7 (311) (308)
Cost of gross financial indebtedness 7 (386) (373)
Income on cash and financial assets 7 75 65
Other financial income and expenses 7 (131) (45)
Financial income (expenses) 7 (442) (353)
Share in net income (loss) of associates and joint ventures (190) 1,540
Nissan 12 242 1,509
Other associates and joint ventures 13 (432) 31
Pre-tax income 1,473 4,174
Current and deferred taxes 8 (1,454) (723)
Net income 19 3,451
Net income – parent-company shareholders’ share (141) 3,302
Net income - non-controlling interests’ share 160 149
(2)
Basic earnings per share in € (0.52) 12.24
Diluted earnings per share (2) in € (0.52) 12.13
Number of shares outstanding (in thousands)
for basic earnings per share 9 271,639 269,850
for diluted earnings per share 9 273,569 272,222


(1) The figures for 2019 are established in application of IFRS 16 “Leases”. The impacts of application of IFRS 16 from January 1, 2019 are
presented in note 2-A2. The figures for 2018 have not been restated.
(2) Net income – parent-company shareholders’ share divided by the number of shares stated.




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4.2.2 Consolidated comprehensive income

2019 2018
(€ million)

Gross Tax effect Net Gross Tax effect Net

NET INCOME 1,473 (1,454) 19 4,174 (723) 3,451

Other components of comprehensive income from parent company and
Subsidiaries

Items that will not be reclassified subsequently to profit or loss (137) 49 (88) (356) (3) (359)

Actuarial gains and losses on defined-benefit pension plans (194) 50 (144) 53 (16) 37

Equity instruments at fair value through equity 57 (1) 56 (409) 13 (396)

Items that have been or will be reclassified to profit or loss in subsequent
periods (67) (81) (148) (483) 29 (454)

Translation adjustments on foreign activities 119 - 119 (213) - (213)

Translation adjustments on foreign activities in hyperinflationary economies (99) - (99) (175) - (175)

Partial hedge of the investment in Nissan (70) (87) (157) (102) 32 (70)
(1)
Fair value adjustments on cash flow hedging instruments (17) 6 (11) 7 (4) 3
(2)
Debt instruments at fair value through equity - - - - 1 1

Total other components of comprehensive income from parent company
and subsidiaries (a) (204) (32) (236) (839) 26 (813)
Share of associates and joint ventures in other components of
comprehensive
income

Items that will not be reclassified to profit or loss in subsequent periods 24 - 24 (206) - (206)

Actuarial gains and losses on defined-benefit pension plans 23 - 23 (68) - (68)

Other 1 - 1 (138) - (138)

Items that have been or will be reclassified to profit or loss in subsequent
periods (3) 352 - 352 956 - 956

Translation adjustments on foreign activities 407 - 407 960 - 960

Other (55) - (55) (4) - (4)

Total share of associates and joint ventures in other components of
comprehensive income (b) 376 - 376 750 - 750

Other components of comprehensive income (a) + (b) 172 (32) 140 (89) 26 (63)

COMPREHENSIVE INCOME 1,645 (1,486) 159 4,085 (697) 3,388

Parent company shareholders’ share 1 3,221

Non-controlling interests’ share 158 167

(1) Including €10 million reclassified to profit or loss in 2019 (€6 million in 2018).
(2) Including €(1) million reclassified to profit or loss in 2019 (€2 million in 2018).
(3) Including €3 million reclassified to profit or loss in 2019 following the full consolidation of ZAO GM-AVTOVAZ at December 31, 2019.




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4.2.3 Consolidated financial position

December 31, December 31,
ASSETS (€ million) Notes
2019 (1) 2018
NON-CURRENT ASSETS

Intangible assets and goodwill 10-A 6,949 5,913

(2)
Property, plant and equipment 10-B 16,900 14,304

Investments in associates and joint ventures 21,232 21,439

Nissan 12 20,622 20,583

Other associates and joint ventures 13 610 856

Non-current financial assets 22 1,072 928

Deferred tax assets 8 1,016 952

Other non-current assets 17 1,224 1,485

Total non-current assets 48,393 45,021
CURRENT ASSETS

Inventories 14 5,780 5,879

Sales Financing receivables 15 45,374 42,067

Automotive receivables 16 1,258 1,399

Current financial assets 22 2,216 1,963

Current tax assets 17 86 111

Other current assets 17 4,082 3,779

Cash and cash equivalents 22 14,982 14,777

Total current assets 73,778 69,975

TOTAL ASSETS 122,171 114,996

(1) The impacts of application of IFRS 16 “Leases” from January 1, 2019 are presented in note 2-A2. The figures for 2018 have not been
restated.
(2) Including €669 million of right-to-use assets resulting from IFRS 16 “Leases” at the date of initial application.




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SHAREHOLDERS’ EQUITY AND LIABILITIES December 31, December 31,
Notes
2019 (1) 2018 (2)
(€ million)
SHAREHOLDERS’ EQUITY

Share capital 1,127 1,127

Share premium 3,785 3,785

Treasury shares (344) (400)

Revaluation of financial instruments 232 236

Translation adjustment (2,584) (2,826)

Reserves 32,489 30,265

Net income – parent-company shareholders’ share (141) 3,302

Shareholders’ equity – parent-company shareholders’ share 34,564 35,489

Shareholders’ equity – non-controlling interests’ share 767 599

Total shareholders’ equity 18 35,331 36,088

NON-CURRENT LIABILITIES

Deferred tax liabilities 8 1,044 135
Provisions for pension and other long-term employee benefit obligations –
long-term 19 1,636 1,531

Other provisions – long-term 20 1,458 1,463

Non-current financial liabilities 23 8,794 6,209

Provisions for uncertain tax liabilities – long-term 8-C 187 140

Other non-current liabilities 21 1,734 1,572

Total non-current liabilities 14,853 11,050

CURRENT LIABILITIES
Provisions for pension and other long-term employee benefit obligations –
short-term 19 64 56

Other provisions – short-term 20 1,064 1,100

Current financial liabilities 23 2,780 2,463

Sales Financing debts 23 47,465 44,495

Trade payables 9,582 9,505

Current tax liabilities 8-C 223 289

Provisions for uncertain tax liabilities – short-term 8-C 8 22

Other current liabilities 21 10,801 9,928

Total current liabilities 71,987 67,858

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 122,171 114,996

(1) The impacts of application of IFRS 16 “Leases” from January 1, 2019 are presented in note 2-A2. The figures for 2018 have not been
restated.
(2) The figures for 2018 include a reclassification of provisions for uncertain tax liabilities, in application of an IFRIC decision of September
2019. These provisions are presented in specific lines instead of in other provisions as previously (note 2-A3). Shareholders’ equity at
December 31, 2018, has also been adjusted by an amount of €(57) million due to correction of an error concerning operations in the
Americas region, with a corresponding entry in other provisions.




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4.2.4 Changes in consolidated shareholders’ equity
Net
Shareholders Shareholde
income
’ equity rs’ equity
Number of Revaluation (parent – Total
Share Share Treasury Translation (parent – (non-
(€ million) shares of financial Reserves company sharehold
capital premium shares adjustment company controlling
(thousands) instruments sharehol ers’ equity
shareholders interests’
ders’
’ share) share)
share)
Balance at December
31, 2017 (1) 295,722 1,127 3,785 (494) 809 (3,376) 26,265 5,212 33,328 294 33,622
Transition to IFRS 9 – ( (
Opening adjustments (21) (73) (94) 2) 96)
Transition to IFRS 15 – ( (
Opening adjustments (229) (229) 9) 238)
Application of IAS 29 -
Opening adjustments 14 65 79 79
Adjusted balance at
January 1, 2018 295,722 1,127 3,785 (494) 788 (3,362) 26,028 5,212 33,084 283 33,367
2018 net income 3,302 3,302 149 3,451
Other components of
comprehensive
income (2) (3) (538) 487 (30) (81) 18 (63)
2018 comprehensive
income (538) 487 (30) 3,302 3,221 167 3,388
Allocation of 2017 net
income 5,212 (5,212)
Dividends (958) (958) (94) (1,052)
(Acquisitions) /
disposals of treasury
shares and impact of
capital increases 94 94 94
Changes in ownership
interests (4) 33 39 72 241 313
Index-based
restatement in 2018 of
equity items in
hyperinflationary
economies 3 86 89 1 90
Cost of share-based
payments and other (14) 13 (112) (113) 1 (112)
Balance at December
31, 2018 (5) 295,722 1,127 3,785 (400) 236 (2,826) 30,265 3,302 35,489 599 36,088
2019 net income (141) (141) 160 19
Other components of
comprehensive
income (3) (4) 267 (121) 142 (2) 140
2019 comprehensive
income (4) 267 (121) (141) 1 158 159
Allocation of 2018 net
income 3,302 (3,302)
Dividends (966) (966) (96) (1,062)
(Acquisitions) /
disposals of treasury
shares and impact of
capital increases 56 56 56
Changes in ownership
interests (5) (5) 106 101
Index-based
restatement in 2018 of
equity items in
hyperinflationary
economies (25) 59 34 34
Cost of share-based
payments and other (45) (45) (45)
Balance at December
31, 2019 295,722 1,127 3,785 (344) 232 (2,584) 32,489 (141) 34,564 767 35,331

(1) Including €669 million of right-of-use assets resulting from IFRS 16 “Leases” at the date of initial application.
(2) Shareholder’s equity at December 31, 2018 has been adjusted by an amount of €(57) million due to correction of an error concerning operations in the
Americas region, with a corresponding entry in other provisions.
(3) Changes in reserves correspond to actuarial gains and losses on defined-benefit pension plans recognized during the period.
(4) Changes in ownership interests in 2018 include the effects of capital increases by Alliance Rostec Auto b.v. and AVTOVAZ, and acquisitions of shares in
AVTOVAZ by Alliance Rostec Auto b.v. as a result of a mandatory tender offer and a mandatory squeeze out (note 3-B).
(5) The application of IFRS 16 “Leases” and IFRIC 23 “Uncertainty over income tax treatments” did not lead to any adjustments of opening shareholders’
equity.




Details of changes in consolidated shareholders’ equity in 2019 are given in note 18.




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4.2.5 Consolidated cash flows
2019 (1)
(€ million) Notes 2018

Net income 19 3,451
Cancellation of dividends received from unconsolidated listed investments (46) (44)
Cancellation of income and expenses with no impact on cash
Depreciation, amortization and impairment 3,809 3,245
Share in net (income) loss of associates and joint ventures 190 (1,540)
Other income and expenses with no impact on cash before interest and tax 26-A 1,937 1,396
Dividends received from unlisted associates and joint ventures 4 2
Cash flows before interest and tax (2) 5,913 6,510
Dividends received from listed companies (3) 625 828
Net change in financing for final customers (2,612) (3,596)
Net change in renewable dealer financing (659) (160)
Decrease (increase) in Sales Financing receivables (3,271) (3,756)
Bond issuance by the Sales Financing segment 23-C 3,869 4,245
Bond redemption by the Sales Financing segment 23-C (4,034) (3,148)
Net change in other debts of the Sales Financing segment 3,696 2,435
Net change in other securities and loans of the Sales Financing segment (428) 61
Net change in financial assets and debts of the Sales Financing segment 3,103 3,593
Change in capitalized leased assets (1,059) (519)
Change in working capital before tax 26-B 1,214 551
CASH FLOWS FROM OPERATING ACTIVITIES BEFORE INTEREST AND TAX 6,525 7,207
Interest received 78 67
Interest paid (368) (332)
Current taxes (paid) / received 8-C (636) (657)
CASH FLOWS FROM OPERATING ACTIVITIES 5,599 6,285
Property, plant and equipment and intangible investments 26-C (5,022) (4,407)
Disposals of property, plant and equipment and intangible assets 31 131
Acquisitions of investments involving gain of control, net of cash acquired 5 (29)
Acquisitions of other investments (157) (215)
Disposals of investments involving loss of control, net of cash transferred 2 -
Disposals of other investments 36 8
Net decrease (increase) in other securities and loans of the Automotive segments (2) (150)
CASH FLOWS FROM INVESTING ACTIVITIES (5,107) (4,662)
Dividends paid to parent-company shareholders 18-D (1,035) (1,027)
Transactions with non-controlling interests (10) 11
Dividends paid to non-controlling interests 18-H (96) (94)
(Acquisitions) sales of treasury shares (36) (41)
Cash flows with shareholders (1,177) (1,151)
Bond issuance by the Automotive segments 23-C 1,557 1,895
Bond redemption by the Automotive segments 23-C (574) (1,455)
Net increase (decrease) in other financial liabilities of the Automotive segments (59) (242)
Net change in financial liabilities of the Automotive segments 23-B 924 198
CASH FLOWS FROM FINANCING ACTIVITIES (253) (953)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 239 670

(1) The impacts of application of IFRS 16 “Leases” from January 1, 2019 are presented in note 2-A2. The figures for 2018 have not been restated.
(2) Cash flows before interest and tax do not include dividends received from listed companies.
(3) Dividends received from Daimler (€46 million in 2019 and €44 million in 2018) and Nissan (€579 million in 2019 and €784 million in 2018).




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(€ million) 2019 2018

14,777
Cash and cash equivalents: opening balance 14,057
239
Increase (decrease) in cash and cash equivalents 670
(34)
Effect of changes in exchange rate and other changes 50
14,982
Cash and cash equivalents: closing balance (1) 14,777

(1) Cash subject to restrictions on use is described in note 22-C.




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4.2.6 Notes to the consolidated financial statements
4.2.6.1 Information on operating segments and regions
The operating segments defined by Renault are the following:
• The “Automotive excluding AVTOVAZ” segment, consisting of the Group’s automotive activities as they existed before
Renault acquired control of the AVTOVAZ group under IFRS 10. This segment comprises the production, sales, and
distribution subsidiaries for passenger and light commercial vehicles, automobile service subsidiaries for the Renault,
Dacia and Samsung brands, and the subsidiaries in charge of the segment’s cash management. It also includes
investments in automotive-sector associates and joint ventures, principally Nissan.
• The “AVTOVAZ” segment, consisting of the Russian automotive group AVTOVAZ and its parent company Alliance Rostec
Auto b.v., which was formed at the end of 2016, after Renault acquired control over them, as defined by IFRS 10, in
December 2016.
• The “Sales Financing” segment, which the Group considers as an operating activity in its own right, carried out for the
distribution network and final customers by RCI Banque, its subsidiaries and its investments in associates and joint
ventures.




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A – Information by operating segment
A1 – CONSOLIDATED INCOME STATEMENT BY OPERATING SEGMENT

Automotive Intra
TOTAL Sales Intersegment CONSOLIDATED
AVTOVAZ (1)
(excluding Automotive
(€ million)
AUTOMOTIVE Financing transactions TOTAL
AVTOVAZ) (1) Transactions
2019 (2)
External sales 49,002 3,130 - 52,132 3,405 - 55,537
Intersegment sales 105 774 (774) 105 18 (123) -
Sales by segment 49,107 3,904 (774) 52,237 3,423 (123) 55,537
Operating margin (3) 1,289 156 (1) 1,444 1,223 (5) 2,662
Operating income 762 130 (1) 891 1,294 (80) 2,105
Financial income (expenses) 179 (111) - 68 (10) (500) (442)
(4)



Share in net income (loss) of associates and joint ventures (213) 2 - (211) 21 - (190)
728 21 (1) 748 1,305 (580) 1,473
Pre-tax income
(1,122) 51 - (1,071) (383) - (1,454)
Current and deferred taxes
(394) 72 (1) (323) 922 (580) 19
Net income

(1) In 2019, external sales by the Automotive (excluding AVTOVAZ) segment include sales to the AVTOVAZ group, which amount to €246 million in 2019, and these sales are thus included in the AVTOVAZ segment’s intersegment
transactions.
(2) The impacts of application of IFRS 16 “Leases” from January 1, 2019 are presented in note 2-A2. The figures for 2018 have not been restated.
(3) Details of amortization, depreciation and impairment are provided in the statement of consolidated cash flows by operating segment.
(4) Dividends paid by the Sales Financing segment to the Automotive segments are included in the Automotive segments’ financial income and eliminated in the intersegment transactions. They amount to €500 million in 2019.




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Automotive Intra
TOTAL Sales Intersegment CONSOLIDATED
AVTOVAZ (1)
(€ million) (excluding Automotive
AUTOMOTIVE Financing transactions TOTAL
AVTOVAZ) (1) Transactions
2018
External sales 51,171 3,040 - 54,211 3,208 - 57,419
Intersegment sales 96 815 (815) 96 18 (114) -
Sales by segment 51,267 3,855 (815) 54,307 3,226 (114) 57,419
Operating margin (2) 2,202 204 - 2,406 1,204 2 3,612
Operating income 1,583 209 - 1,792 1,193 2 2,987
Financial income (expenses) (3) (97) (95) - (192) (11) (150) (353)

Share in net income (loss) of associates and joint ventures 1,527 (3) - 1,524 16 - 1,540
Pre-tax income 3,013 111 - 3,124 1,198 (148) 4,174
Current and deferred taxes (369) (26) - (395) (330) 2 (723)
Net income 2,644 85 - 2,729 868 (146) 3,451

In 2018, external sales by the Automotive (excluding AVTOVAZ) segment include sales to the AVTOVAZ group, which amount to €311 million in 2018, and these sales are thus included in the AVTOVAZ segment’s intersegment
(1)
transactions.
Details of amortization, depreciation and impairment are provided in the statement of consolidated cash flows by operating segment.
(2)
Dividends paid by the Sales Financing segment to the Automotive segments are included in the Automotive segments’ financial income and eliminated in the intersegment transactions.
(3)




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A2 – CONSOLIDATED FINANCIAL POSITION BY OPERATING SEGMENT

Automotive Intra-
TOTAL Sales Intersegment CONSOLIDATED
(excluding AVTOVAZ Automotive
(€ million)
AUTOMOTIVE Financing transactions TOTAL
AVTOVAZ) Transactions
December 31, 2019 (1)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment and intangible assets and goodwill 21,701 1,740 - 23,441 408 - 23,849
Investments in associates and joint ventures 21,087 3 - 21,090 142 - 21,232
Non-current financial assets – equity investments 7,478 - (1,025) 6,453 2 (5,577) 878
Non-current financial assets – other securities, loans and
derivatives on financing operations of the Automotive segments 194 - - 194 - - 194
Deferred tax assets and other non-current assets 1,446 469 (108) 1,807 433 - 2,240
Total non-current assets 51,906 2,212 (1,133) 52,985 985 (5,577) 48,393
CURRENT ASSETS
Inventories 5,379 352 - 5,731 49 - 5,780
Customer receivables 1,175 183 (87) 1,271 46,252 (891) 46,632
Current financial assets 1,197 5 (7) 1,195 1,948 (927) 2,216
Current tax assets and other current assets 3,003 66 (3) 3,066 5,984 (4,882) 4,168
Cash and cash equivalents 12,231 70 (3) 12,298 2,762 (78) 14,982
Total current assets 22,985 676 (100) 23,561 56,995 (6,778) 73,778
TOTAL ASSETS 74,891 2,888 (1,233) 76,546 57,980 (12,355) 122,171

SHAREHOLDERS’ EQUITY AND LIABILITIES
35,214 1,108 (1,028) 35,294 5,632 (5,595) 35,331
SHAREHOLDERS’ EQUITY
NON-CURRENT LIABILITIES
2,604 37 - 2,641 640 - 3,281
Long-term provisions
7,106 821 - 7,927 867 - 8,794
Non-current financial liabilities
1,982 60 (108) 1,934 844 - 2,778
Deferred tax liabilities and other non-current liabilities
11,692 918 (108) 12,502 2,351 - 14,853
Total non-current liabilities
CURRENT LIABILITIES
1,034 66 - 1,100 36 - 1,136
Short-term provisions
3,785 100 (10) 3,875 - (1,095) 2,780
Current financial liabilities
9,520 487 (84) 9,923 48,253 (1,129) 57,047
Trade payables and Sales Financing debts
13,646 209 (3) 13,852 1,708 (4,536) 11,024
Current tax liabilities and other current liabilities
27,985 862 (97) 28,750 49,997 (6,760) 71,987
Total current liabilities
74,891 2,888 (1,233) 76,546 57,980 (12,355) 122,171
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES

13
(1) The impacts of application of IFRS 16 “Leases” from January 1, 2019 are presented in note 2-A2.




14
Automotive
Intra- Automotive TOTAL Intersegment CONSOLIDATED
(€ million) (excluding AVTOVAZ Sales Financing
Transactions AUTOMOTIVE transactions TOTAL
AVTOVAZ)
December 31, 2018
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment and intangible assets and goodwill 18,448 1,422 - 19,870 347 - 20,217
Investments in associates and joint ventures 21,314 11 - 21,325 114 - 21,439
Non-current financial assets – equity investments 6,907 - (855) 6,052 2 (5,201) 853
Non-current financial assets – other securities, loans and derivatives on
financing operations of the Automotive segments 75 - - 75 - - 75
Deferred tax assets and other non-current assets 1,738 342 (107) 1,973 464 - 2,437
Total non-current assets 48,482 1,775 (962) 49,295 927 (5,201) 45,021
CURRENT ASSETS
Inventories 5,515 321 - 5,836 43 - 5,879
Customer receivables 1,295 205 (80) 1,420 42,854 (808) 43,466
Current financial assets 1,415 - (6) 1,409 1,369 (815) 1,963
Current tax assets and other current assets 2,764 157 (4) 2,917 5,028 (4,055) 3,890
Cash and cash equivalents 11,691 89 (3) 11,777 3,094 (94) 14,777
Total current assets 22,680 772 (93) 23,359 52,388 (5,772) 69,975
TOTAL ASSETS 71,162 2,547 (1,055) 72,654 53,315 (10,973) 114,996

SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY (1) 36,004 908 (859) 36,053 5,249 (5,214) 36,088

NON-CURRENT LIABILITIES
Long-term provisions 2,529 27 - 2,556 578 - 3,134
Non-current financial liabilities 5,508 688 - 6,196 13 - 6,209
Deferred tax liabilities and other non-current liabilities 1,070 34 (106) 998 709 - 1,707
Total non-current liabilities 9,107 749 (106) 9,750 1,300 - 11,050
CURRENT LIABILITIES
Short-term provisions 1,103 44 - 1,147 31 - 1,178
Current financial liabilities 3,258 94 (9) 3,343 - (880) 2,463
Trade payables and Sales Financing debts 9,279 495 (78) 9,696 45,311 (1,007) 54,000
Current tax liabilities and other current liabilities 12,411 257 (3) 12,665 1,424 (3,872) 10,217
Total current liabilities 26,051 890 (90) 26,851 46,766 (5,759) 67,858
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 71,162 2,547 (1,055) 72,654 53,315 (10,973) 114,996

(1) The figures for 2018 include a reclassification of provisions for uncertain tax liabilities, in application of an IFRIC decision of September 2019. These provisions are presented in specific lines instead of in other provisions as previously
(note 2-A3). Shareholders’ equity at December 31, 2018, has also been adjusted by an amount of €(57) million due to correction of an error concerning operations in the Americas region, with a corresponding entry in other provisions.

15
A3 – CONSOLIDATED CASH FLOWS BY OPERATING SEGMENT

Automotive Intra
TOTAL Sales Intersegment CONSOLIDATED
(excluding AVTOVAZ Automotive
(€ million)
AUTOMOTIVE Financing transactions TOTAL
AVTOVAZ) transactions
2019 (1)

Net income (2) (394) 72 (1) (323) 922 (580) 19
Cancellation of dividends received from unconsolidated listed investments (46) - - (46) - - (46)
Cancellation of income and expenses with no impact on cash
Depreciation, amortization and impairment 3,607 120 - 3,727 82 - 3,809
Share in net (income) loss of associates and joint ventures 213 (2) - 211 (21) - 190
Other income and expenses with no impact on cash, before interest
and tax 1,355 50 - 1,405 475 57 1,937
Dividends received from unlisted associates and joint ventures 4 - - 4 - - 4
Cash flows before interest and tax 4,739 240 (1) 4,978 1,458 (523) 5,913
(3)


Dividends received from listed companies (4) 625 - 625 - - 625
Decrease (increase) in sales financing receivables - - - - (3,353) 82 (3,271)
Net change in financial assets and Sales Financing debts - - - - 2,968 135 3,103
Change in capitalized leased assets (1,002) - - (1,002) (57) - (1,059)
Change in working capital before tax 1,829 15 - 1,844 (635) 5 1,214
CASH FLOWS FROM OPERATING ACTIVITIES BEFORE INTEREST
AND TAX 6,191 255 (1) 6,445 381 (301) 6,525
Interest received 73 5 - 78 - - 78
Interest paid (301) (87) 1 (387) - 19 (368)
Current taxes (paid)/received (367) (11) - (378) (258) - (636)
CASH FLOWS FROM OPERATING ACTIVITIES 5,596 162 - 5,758 123 (282) 5,599

(1) The impacts of application of IFRS 16 “Leases” from January 1, 2019 are presented in note 2-A. The figures for 2018 have not been restated.
(2) Dividends paid by the Sales Financing segment to the Automotive segments are included in the net income of the Automotive (excluding Avtovaz) segment. They amount to €500 million in 2019.
(3) Cash flows before interest and tax do not include dividends received from listed companies.
(4) Dividends received from Daimler (€46 million) and Nissan (€579 million).




16
Automotive Intra-
TOTAL Sales Intersegment CONSOLIDATED
(excluding AVTOVAZ Automotive
(€ million)
AUTOMOTIVE Financing transactions TOTAL
AVTOVAZ) transactions
2019

CASH FLOWS FROM OPERATING ACTIVITIES 5,596 162 - 5,758 123 (282) 5,599
Purchases of intangible assets (2,016) (67) - (2,083) (3) - (2,086)
Purchases of property, plant and equipment (2,846) (95) 15 (2,926) (10) - (2,936)
Disposals of property, plant and equipment and intangibles 16 27 (14) 29 2 - 31
Acquisitions and disposals of investments involving gain or loss of control,
net of cash acquired (55) (9) - (64) 71 - 7
Acquisitions and disposals of other investments and other (120) - - (120) (1) - (121)
Net decrease (increase) in other securities and loans of the Automotive
segments (3) 1 - (2) - - (2)
CASH FLOWS FROM INVESTING ACTIVITIES (5,024) (143) 1 (5,166) 59 - (5,107)
Cash flows with shareholders (1,165) (1) - (1,166) (511) 500 (1,177)
Net change in financial liabilities of the Automotive segments 1,180 (49) - 1,131 - (207) 924
CASH FLOWS FROM FINANCING ACTIVITIES 15 (50) - (35) (511) 293 (253)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 587 (31) 1 557 (329) 11 239



Automotive Intra-
TOTAL Sales Intersegment CONSOLIDATED
(excluding AVTOVAZ Automotive
(€ million)
AUTOMOTIVE Financing transactions TOTAL
AVTOVAZ) transactions
2019

Cash and cash equivalents: opening balance 11,691 89 (3) 11,777 3,094 (94) 14,777
Increase (decrease) in cash and cash equivalents 587 (31) 1 557 (329) 11 239
Effect of changes in exchange rate and other changes (47) 12 (1) (36) (3) 5 (34)
Cash and cash equivalents: closing balance 12,231 70 (3) 12,298 2,762 (78) 14,982




17
Automotive Intra-
TOTAL Sales Intersegment CONSOLIDATED
(excluding AVTOVAZ Automotive
(€ million)
AUTOMOTIVE Financing transactions TOTAL
AVTOVAZ) Transactions
2018
Net income 2,644 85 - 2,729 868 (146) 3,451


Cancellation of dividends received from unconsolidated listed investments (44) - - (44) - - (44)
Cancellation of income and expenses with no impact on cash
Depreciation, amortization and impairment 3,066 109 - 3,175 70 - 3,245
Share in net (income) loss of associates and joint ventures (1,527) 3 - (1,524) (16) - (1,540)
Other income and expenses with no impact on cash, before interest
and tax 825 90 (1) 914 503 (21) 1,396

Dividends received from unlisted associates and joint ventures 2 - - 2 - - 2
Cash flows before interest and tax(1) 4,966 287 (1) 5,252 1,425 (167) 6,510
Dividends received from listed companies (2) 828 - - 828 - - 828
Decrease (increase) in sales financing receivables - - - - (3,586) (170) (3,756)
Net change in financial assets and Sales Financing debts - - - - 3,593 - 3,593
Change in capitalized leased assets (509) - - (509) (10) - (519)
Change in working capital before tax 781 16 6 803 (331) 79 551
CASH FLOWS FROM OPERATING ACTIVITIES BEFORE INTEREST
AND TAX 6,066 303 5 6,374 1,091 (258) 7,207
Interest received 71 5 (2) 74 - (7) 67
Interest paid (263) (95) 2 (356) - 24 (332)
Current taxes (paid)/received (388) (14) - (402) (255) - (657)
CASH FLOWS FROM OPERATING ACTIVITIES 5,486 199 5 5,690 836 (241) 6,285

(1) Cash flows before interest and tax do not include dividends received from listed companies.
(2) Dividends received from Daimler (€44 million) and Nissan (€784 million).




18
Automotive Intra-
TOTAL Sales Intersegment CONSOLIDATED
(excluding AVTOVAZ Automotive
(€ million)
AUTOMOTIVE Financing transactions TOTAL
AVTOVAZ) Transactions
2018

CASH FLOWS FROM OPERATING ACTIVITIES 5,486 199 5 5,690 836 (241) 6,285
Purchases of intangible assets (1,735) (32) - (1,767) (4) - (1,771)
Purchases of property, plant and equipment (2,557) (83) 19 (2,621) (15) - (2,636)
Disposals of property, plant and equipment and intangibles 126 31 (24) 133 - (2) 131

Acquisitions and disposals of investments involving gain or loss of control,
net of cash acquired (15) (2) - (17) (12) - (29)
Acquisitions and disposals of other investments and other (159) - - (159) (48) - (207)

Net decrease (increase) in other securities and loans of the Automotive
segments (156) - 6 (150) - - (150)
CASH FLOWS FROM INVESTING ACTIVITIES (4,496) (86) 1 (4,581) (79) (2) (4,662)
Cash flows with shareholder (1,149) - - (1,149) (153) 151 (1,151)
Net change in financial liabilities of the Automotive segments 233 (139) (7) 87 - 111 198
CASH FLOWS FROM FINANCING ACTIVITIES (916) (139) (7) (1,062) (153) 262 (953)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 74 (26) (1) 47 604 19 670




Automotive Intra-
TOTAL Sales Intersegment CONSOLIDATED
(excluding AVTOVAZ Automotive
(€ million)
AUTOMOTIVE Financing transactions TOTAL
AVTOVAZ) Transactions
2018

Cash and cash equivalents: opening balance 11,718 130 (3) 11,845 2,354 (142) 14,057

Increase (decrease) in cash and cash equivalents 74 (26) (1) 47 604 19 670

Effect of changes in exchange rate and other changes (101) (15) 1 (115) 136 29 50

Cash and cash equivalents: closing balance 11,691 89 (3) 11,777 3,094 (94) 14,777




19
A4 – OTHER INFORMATION FOR THE AUTOMOTIVE SEGMENTS: NET CASH POSITION OR NET
FINANCIAL INDEBTEDNESS AND OPERATIONAL FREE CASH FLOW
The net cash position or net financial indebtedness and operational free cash flow are only presented for the Automotive
segments, since these indicators are not relevant for monitoring Sales Financing activity.
The net cash position or net financial indebtedness includes all non-operating interest-bearing financial liabilities and
commitments less cash and cash equivalents and other non-operating financial assets such as marketable securities or the
segment’s loans.


Net cash position (net financial indebtedness)

December 31, 2019
(€ million) Automotive Intra-
Total
AVTOVAZ (1)
(excluding Automotive
Automotive
AVTOVAZ) (1) transactions
(7,106) (821) - (7,927)
Non-current financial liabilities
(3,785) (100) 10 (3,875)
Current financial liabilities
Non-current financial assets – other securities, loans and
64 - - 64
derivatives on financing operations
1,180 1 (7) 1,174
Current financial assets
12,231 70 (3) 12,298
Cash and cash equivalents
Net cash position (net financial indebtedness) of the
2,584 (850) - 1,734
Automotive segments

(1) The impacts of application of IFRS 16 “Leases” from January 1, 2019 are presented in note 2-A2. The figures for 2018 have not been
restated.



December 31, 2018
Automotive Intra-
(€ million)
Total
(excluding AVTOVAZ Automotive
Automotive
AVTOVAZ) transactions
Non-current financial liabilities (5,508) (688) - (6,196)
Current financial liabilities (3,258) (94) 9 (3,343)
Non-current financial assets – other securities, loans and
derivatives on financing operations 55 - - 55
Current financial assets 1,415 - (6) 1,409
Cash and cash equivalents 11,691 89 (3) 11,777
Net cash position (net financial indebtedness) of the
Automotive segments 4,395 (693) - 3,702




20
Operational free cash flow

2019
Automotive Intra-
(€ million)
TOTAL
(excluding AVTOVAZ Automotive
AUTOMOTIVE
AVTOVAZ) transactions
Cash flows (excluding dividends from listed companies) before
4,739 240 (1) 4,978
interest and tax
1,829 15 - 1,844
Changes in working capital before tax
73 5 - 78
Interest received by the Automotive segments
(301) (87) 1 (387)
Interest paid by the Automotive segments
(367) (11) - (378)
Current taxes (paid) / received
Acquisitions of property, plant and equipment, and intangible
(4,846) (135) 1 (4,980)
assets net of disposals
(1,002) - - (1,002)
Capitalized leased vehicles and batteries
125 27 1 153
(1)
Operational free cash flow of the Automotive segments

(1) The definition of Operational free cash flow used in 2019 is the same as in 2018. In 2018, Operational free cash flow was presented after
deduction of rental expenses in cash flows from operating activities, while from 2019, as a result of application of IFRS 16, only cash flows
relating to interest paid are presented in cash flows from operating activities. The residual balance, consisting of lease payments, is presented
in cash flows from financing activities (net change in financial liabilities of the Automotive segments) and is thus excluded from the Operational
free cash flow. Without application of IFRS 16, the Operational free cash flow for 2019 would amount to €57 million.



2018
Automotive Intra-
(€ million)
TOTAL
(excluding AVTOVAZ Automotive
AUTOMOTIVE
AVTOVAZ) transactions
Cash flows (excluding dividends from listed companies)
4,966 287 (1) 5,252
before interest and tax
781 16 6 803
Changes in working capital before tax
71 5 (2) 74
Interest received by the Automotive segments
(263) (95) 2 (356)
Interest paid by the Automotive segments
(388) (14) - (402)
Current taxes (paid) / received
Acquisitions of property, plant and equipment, and intangible
(4,166) (84) (5) (4,255)
assets net of disposals
(509)
Capitalized leased vehicles and batteries - - (509)
492 115 - 607
Operational free cash flow of the Automotive segments




21
B – Information by Region

The Regions presented correspond to the geographic divisions used for Group management. The Regions are defined in section
1.3.1.3 of the Universal Registration Document.
Consolidated revenues are presented by location of customers. The Group adjusted its international organization in 2019. The
former Asia-Pacific and Africa-Middle East-India regions were reorganized to form two new regions:
• The China region specifically covers the Group’s activities in China;
• The Africa – Middle East – India – Asia-Pacific region covers Africa and Middle-East countries, India, the countries of
the ASEAN (Association of South-East Asian Nations), Korea, Japan and Australia.
Figures for 2018 correspond to the new segments adopted in 2019.
Property, plant and equipment and intangibles are presented by location of subsidiaries and joint operations.



Europe (1) Americas China Africa – Eurasia Consolidated
(€ million)
Middle-East total
– India –
Asia-Pacific
2019

Revenues 36,516 4,435 127 7,038 7,421 55,537

Including AVTOVAZ 42 3 - 14 3,317 3,376

Property, plant and equipment and
intangibles 17,392 852 179 1,307 4,119 23,849

Including AVTOVAZ - - - - 1,740 1,740

2018

Revenues 36,704 4,684 275 8,194 7,562 57,419

Including AVTOVAZ 39 2 - 18 3,292 3,351

Property, plant and equipment and
14,800 821 - 1,180 3,416 20,217
intangibles

Including AVTOVAZ - - - - 1,422 1,422

(1) Including the following for France :

(€ million) 2019 2018

Revenues 13,581 13,533

Property, plant and equipment and intangibles 13,773 11,735




22
4.2.6.2 Accounting policies and scope of consolidation
NOTE 1 – APPROVAL OF THE FINANCIAL STATEMENTS
The Renault Group’s consolidated financial statements for 2019 were examined at the Board of Directors’ meeting of February
13, 2020 and will be submitted for approval by the shareholders at the General Shareholders’ Meeting.


NOTE 2 – ACCOUNTING POLICIES
In application of European regulations, the Renault Group’s consolidated financial statements for 2019 are prepared under IFRS
(International Financial Reporting Standards) as issued by the lASB (International Accounting Standards Board) at December 31,
2019 and adopted by the European Union at the year-end.


2 – A. Changes in accounting policies
A1 – Changes in accounting policies in 2019
The Renault Group applies the accounting standards and amendments that have been published in the Official Journal of the
European Union and are mandatory from January 1, 2019.

New amendments that became mandatory on January 1, 2019

IFRS 16 Leases

IFRIC 23 Uncertainty over income tax treatments

IAS 28 amendment Long-term Interests in Associates and Joint Ventures

IFRS 9 amendment Prepayment Features with Negative Compensation

IAS 19 amendment Plan Amendment, Curtailment or Settlement

Annual improvements to IFRS, 2015-2017 Various measures concerning:
cycle
Amendments to IFRS 3 “Business Combinations” and
-
IFRS 11 “Joint Arrangements” named “Previously held
interest in a joint operation”;
Amendments to IAS 12 “Income Taxes” named “Income
-
tax consequences of payments on financial instruments
classified as equity”;
Amendments to IAS 23 “Borrowing Costs” named
-
“Borrowing costs eligible for capitalization”.

The changes related to application of IFRS 16 and IFRIC 23 are presented below.
The other standards and amendments that became mandatory on January 1, 2019 have no significant impact on the Group’s
financial statements.
New standards and amendments published in the Official Journal of the European Union that are applied early by the
Group
The Renault Group has opted for early application in 2019 of the amendments to IAS 39, “Financial Instruments: recognition and
measurement”, IFRS 9, “Financial instruments” and IFRS 7 “Financial instruments: Disclosures” concerning the interest rate
benchmark reform, which were published in the Official Journal of the European Union on January 16, 2020.
Due to early application of these amendments in the Group’s consolidated financial statements at December 31, 2019, the interest
rate hedging relationships (cash flow hedges or fair value hedges) remain unchanged during the period of uncertainty caused by
the replacement of a benchmark rate.
As the method and date for replacing LIBOR rates in the interest rate benchmark reform is not yet completely finalized, the
Renault group applies these amendments to hedging relationships that include LIBOR rates. The Group considers there is no
uncertainty over the EURIBOR rate as the new method for determining EURIBOR has been validated by the ESMA (European
Security and Market Authority).
The Group has not opted for early application of the following new amendments published in the Official Journal of the European
Union, which will be mandatory for financial years beginning on or after January 1, 2020.

New amendments published in the Official Journal of the European Union that are not applied early by the Group

Amendments to IAS 1 and IAS 8 Definition of material

Amendment to IFRS 3 Definition of a business


23
A2 – Changes in the financial statements as a result of first application of IFRS 16 “Leases”
The Renault Group has applied IFRS 16, “Leases” since January 1, 2019. This standard replaces IAS 17 “Leases”, and the
associated IFRIC and SIC interpretations. It eliminates the previous distinction between operating leases and finance leases for
the lessee.
Under IFRS 16, a lessee recognizes an asset related to the right of use and a financial liability that represents the lease obligation.
The right-of-use asset is amortized over the expected term of the lease and the lease liability, initially recognized at the present
value of lease payments over the expected term of the lease, is unwound using the implicit interest rate of the lease agreement
if it can be readily determined, or at the incremental borrowing rate otherwise. In the income statement, amortization of the right-
of-use asset is recorded in the operating margin, and a financial expense corresponding to the interest on the lease liability is
recorded in financial income and expenses, replacing the lease payments previously charged to the operating margin. The tax
impact of this consolidation adjustment is recognized via deferred taxes. In the cash flow statement, cash flows from operating
activities are impacted by interest expenses paid, and cash flows from financing activities are impacted by the reimbursed lease
liability. Previously, cash flows from operating activities were impacted by the total amount of lease payments.
The Group has chosen to apply the exemptions allowed by IFRS 16. Consequently, in the case of leases with a term of 12 months
or less, and leases of low-value assets, it continues to recognize lease payments in the income statement on a straight-line basis
over the term of the lease contract.
The definition of the performance indicators (see note 4.2.6.1-A4) used to calculate the remuneration of key executives and other
members of Group personnel is unchanged. Consequently, these indicators are affected by application of IFRS 16 as described
above.
The changes resulting from adoption of IFRS 16 are applied under the simplified retrospective approach in the financial
statements of 2019. The comparative figures for the year 2018 have not been restated for application of IFRS 16 and are thus
identical to the figures published in the 2018 consolidated financial statements, which complied with the accounting principles in
force at the time under IAS 17.
The Group has applied IFRS 16 to lease contracts previously identified as leases under IAS 17 “Leases” and IFRIC 4 “Determining
when an arrangement contains a lease”, and has chosen to apply the following exemptions and simplification measures to
determine values at the date of initial application (1 January 2019):
Accounting for leases with a residual term of less than 12 months at the date of first application in the same way as short-
▪
term leases;
Excluding of initial direct costs from the measurement of right-of-use assets at the date of initial application;
▪
Adjusting the right-of-use asset at the date of initial application by the amount of provisions for onerous leases recognized
▪
immediately before the date of initial application.
The term of the lease is the non-cancellable period of a lease contract during which the lessee has the right to use the leased
asset, extended by any renewal options the Group is reasonably certain to exercise. For French commercial leases, the lease
term is generally 9 years.
The IFRIC’s agenda decision of November 2019 concerning the lease contract term and its impact on improvements to leased
buildings has no significant impact on the Group’s financial statements, and does not affect our analysis of the term of leases.
In the balance sheet at January 1, 2019, the financial liabilities relating to leases are equal to the discounted value of future lease
payments, determined using the incremental borrowing rate at December 31, 2018, defined on the basis of the residual term of
the lease. As a lessee, the Group uses the incremental borrowing rate, calculated for each monetary zone as the risk-free rate
applicable in the zone, plus the Group’s risk premium for the local currency. The weighted average incremental borrowing rate
applied to lease liabilities at January 1, 2019 was 2.35%.
Right-of-use assets were measured at January 1, 2019 as the value of lease liabilities at that date, adjusted for prepaid lease
payments or lease incentives for the leases concerned that were recognized in the statement of financial position at December
31, 2018.

The difference between the lease liability at the date of initial application, and the operating lease commitments reported in the
notes to the financial statements at December 31, 2018 under IAS 17 are explained in the following table:



January 1, 2019
(€ million)

Off balance sheet lease commitments at December 31, 2018 661
Leases outside the scope of application of IFRS 16 and exemptions (71)
Discount effect on leases (78)
Effects of differences in effective dates (54)
Effects of optional extensions not included in off balance sheet commitments 205
Other 25
Finance leases existing at December 31, 2018 78
Lease liability at January 01, 2019 766




24
The table below presents the effects of application of IFRS 16 on the consolidated financial position at January 1, 2019:

Automotive Sales
(excluding AVTOVAZ Financing Total
(€ million)
AVTOVAZ)
Tangible assets – rights of use 602 11 56 669
Land - 8 - 8
Buildings 578 3 56 637
Other (1) 24 - - 24
Other current assets and liabilities (1) - 1 -
Financial liabilities and Sales Financing debts
(current and non-current) – Lease liabilities 696 15 55 766
Financial liabilities and Sales Financing debts
(current and non-current) – Other interest-
bearing borrowings (74) (4) - (78)
Provisions (2) (19) - - (19)

(1) Leases of IT, operating, and transportation equipment.
(2) Mainly the provision for costs on vacant leased premises in Korea, estimated until the end of the lease contracts and reclassified as a charge
to the right of use.


Application of IFRS 16 has no significant impact on the Group’s operating margin and financial income and expenses.


At December 31, 2019, lease payments not restated in the statement of financial position are as follows:

(€ million)
December 31, 2019
Lease payments for short-term leases (33)

Lease payments for leases of low-value assets (31)

Other lease payments including variable lease payments (48)

Information relating to lease liabilities is presented in note 23.



Changes in cash flows relating to lease liabilities by operating segment are as follows:

Automotive
Sales
(excluding AVTOVAZ Total
2019 (€ million)
Financing
AVTOVAZ)
Net change in other debts of the Sales Financing
segment - - (5) (5)
Interest paid (22) (2) - (24)
CASH FLOWS FROM OPERATING ACTIVITIES (22) (2) (5) (29)
Net increase (decrease) in other financial
liabilities of the Automotive segments (1) (94) (2) - (96)
CASH FLOWS FROM FINANCING ACTIVITIES (94) (2) - (96)
Increase (decrease) in cash flows (116) (4) (5) (125)

(1) This corresponds to repayment of the lease liability for the Automotive segments.


In the statement of consolidated cash flows at December 31, 2019, application of IFRS 16 led to a €96 million increase in cash
outflows from financing activities and a decrease of the same amount in cash outflows from operating activities. This impact only
concerns the Automotive segments, as all Sales financing segment cash flows are classified as cash flows from operating
activities.


A3 – First application of IFRIC 23 “Uncertainty over income tax treatments”
The mandatory application of IFRIC 23 “Uncertainty over income tax treatments” did not lead to identification of any situation that
called into question the accounting positions taken in the financial statements at December 31, 2018. It thus has no impact on
shareholders’ equity at January 1, 2019. To determine the provisions relating to uncertain tax liabilities, the Group uses a case-
by-case method, generally based on the most probable value.
During the first half-year of 2019, the IFRIC committee was asked for guidance on classification of uncertain tax liabilities in the
consolidated financial position. In September 2019, the IFRIC concluded that they should be presented as current tax liabilities
and/or included in deferred taxes. This was not the approach used by the Group, which had classified provisions for uncertain tax
liabilities in provisions (note 20) in view of the qualitative characteristics that determine useful financial information, as defined in
the Conceptual Framework for Financial Reporting.



25
These provisions have now been reclassified and are reported on specific lines in the consolidated financial position (4.2.3),
broken down into a short-term and a long-term portion, at December 31, 2019 and for all the periods presented. This presentation
on specific lines complies with IAS 1.55.



2 – B. Estimates and judgments
In preparing its financial statements, Renault has to make estimates and assumptions that affect the book value of certain assets
and liabilities, income and expense items, and the information disclosed in certain notes. Renault regularly revises its estimates
and assessments to take account of past experience and other factors deemed relevant in view of the economic circumstances.
If changes in these assumptions or circumstances are not as anticipated, the figures reported in Renault’s future consolidated
financial statements could differ from the estimates established at the time the financial statements were finalized.
In general, the main items in the Group’s consolidated financial statements that are dependent on estimates and judgments at
December 31, 2019 are:
• Capitalization of research and development expenses and their amortization period (notes 2-K and 10-A),
• The depreciation and amortization periods for fixed assets other than capitalized development expenses (notes
2-K, 2-L and 10).
• Any impairment on fixed assets (notes 2-M and 11) and operating receivables (notes 16 and 17), particularly
impairment on assets in Argentina, which has been in a hyperinflationary situation since 2018 (note 11-B) and
assets in China (notes 6-B and 13),
• The recoverable value of leased vehicles classified as property, plant and equipment or in inventories (notes 2-G,
10-B and 14),
• Investments in associates, notably Nissan (notes 2-M, 12 and 13);
• Sales financing receivables (notes 2-G and 15);
• Recognition of deferred taxes (notes 2-I and 8);
• Determination of sales incentive programs recorded in other liabilities (notes 2-G and 21);
• Provisions, particularly vehicle and battery warranty provisions (note 2-G), provisions for pensions and other long-
term employee benefit obligations (notes 2-S and 19) and provisions for workforce adjustment measures (notes
2-T and 6-A), provisions for legal risks and tax risks (other than income tax risks) (note 20) and provisions for
uncertain tax liabilities (note 21);
• Determination of lease liabilities, particularly the incremental borrowing rates and the value of renewal options that
are reasonably certain to be exercised (note 23),
• The value of assets in Iran, mainly comprising shares, a shareholder loan and commercial receivables (note 6-D)
and in general the value of Group assets located in all areas concerned by country risks.


2 – C. Consolidation principles
The consolidated financial statements include the financial statements of all companies controlled exclusively by the Group either
directly or indirectly (subsidiaries). Jointly controlled companies are accounted for under the equity method when they are
classified as joint ventures and consolidated on the basis of the percentage share specific to each balance sheet and income
statement item when they are classified as joint operations.
Companies in which the Group exercises significant influence (associates) are included in the financial statements on an equity
basis.
Significant intercompany transactions and unrealized internal profits are eliminated.
Investments in non-significant companies that are controlled exclusively by the Group but not consolidated, even though they
fulfil the above criteria, are recorded as other non-current assets.
Their consolidation would have a negligible impact on the consolidated financial statements, since they are Group-financed
entities whose losses, if any, are recognized via impairment losses, and which:
• acquire almost all their purchases from Group companies or
• carry out almost all their sales transactions with Group companies.
Put options on non-controlling interests are carried in the consolidated financial position at fair value, and classified in other
financial liabilities in the Automotive segments and in other non-current liabilities in the Sales Financing segment, with a
corresponding adjustment to equity.


2 – D. Presentation of the consolidated financial statements
Valuation basis
The consolidated financial statements are established under the historical cost convention, except for certain categories of assets
and liabilities, in compliance with IFRS rules. The categories concerned are detailed in the following notes.




26
Operating income and operating margin
Operating income includes all revenues and costs directly related to the Group’s activities, whether recurrent or resulting from
non-recurring decisions or operations, such as restructuring costs. The operating margin corresponds to the operating income
before other operating income and expenses, which are by nature unusual or significant and could affect comparability of the
margin. Other operating income and expenses cover:
• restructuring costs relating to discontinued activities and workforce adjustment costs;
• gains or losses on partial or total disposal of businesses or operating entities, gains or losses on total or partial disposals
of investments in associates and joint ventures, other gains and losses relating to changes in the scope of consolidation
such as acquisitions of control, as defined by IFRS 10, over entities previously accounted for under the equity method,
and direct acquisition costs for entities that are fully consolidated or consolidated on a line-by-line percentage of interest
basis;

• gains or losses on disposal of property, plant and equipment or intangible assets (except leased assets sales);
• impairment on property, plant and equipment or intangible assets and goodwill (excluding goodwill of associates or
joint ventures);
• unusual items, i.e. income and charges that are unusual in their frequency, nature or amount, relating to significant
litigation or impairment of operating receivables.

Share in net income of associates and joint ventures
The share in net income of associates and joint ventures reported in the Group’s consolidated income statement comprises the
share in these entities’ profits or losses, impairment and recoveries of impairment relating to these entities (note 2-M). The
impairment booked is limited to the net book value of the investment, unless an additional commitment has been made.
The gain or loss resulting from the sale or loss of significant influence or joint control over associates and joint ventures accounted
for by the equity method, and the gain or loss on acquisition of control, as defined by IFRS 10, over companies that were already
consolidated but not controlled, is reported in other operating income and expenses in the Group’s consolidated income
statement. This includes transfers of accumulated translation adjustments during the period the entity was accounted for by the
equity method.
The Group recognizes a deferred tax liability on dividend distributions for all differences between the book and tax values of its
investments in associates and joint ventures (note 2-I). This tax is included in current and deferred taxes in the Group’s income
statement.
Goodwill relating to associates and joint ventures is included in the value of the relevant entities as stated in the assets in the
consolidated statement of financial position. In the event of impairment, an impairment loss is booked and included in the
consolidated income statement via the share in net income (loss) of associates and joint ventures (note 2-J).
Acquisition expenses related to investments in associates and joint ventures are included in the initial acquisition cost for these
investments.
Cross-investments between a consolidated entity and an associate are neutralized in measuring the investment in the associate
as stated in the assets of the statement of financial position. Nissan’s 15% stake in Renault is therefore neutralized in valuing the
investment in Nissan shown in the assets of the consolidated statement of financial position (note 12).
Dividends received from unlisted associates and joint ventures are included in the Automotive segments’ operational free cash
flow, while dividends received from listed associates and joint ventures, i.e. Nissan, are excluded from the operational free cash
flow of the Automotive (excluding AVTOVAZ) segment.


Reporting by operating segment
The information by operating segment is based on internal reporting to the Group Executive Committee, identified as the “Chief
Operating Decision-Maker”. This information is prepared under the IFRSs applicable to the consolidated financial statements. All
Group financial data are assigned to the operating segments. The “Intersegment transactions” and “Intra-Automotive” columns
are reserved for transactions between the segments, which are carried out on near-market terms. Dividends paid by the Sales
Financing segment to the Automotive (excluding AVTOVAZ) segment are included in the Automotive (excluding AVTOVAZ)
segment’s financial income.
The indicator used to evaluate segment performance is the operating margin.
Apart from taxes and the associates’ share in net income, income and expenses relating to sales financing are recorded as
operating items. The tax effect inherent to the French consolidated taxation system is included in the tax expense of the
Automotive (excluding AVTOVAZ) segment.
Assets and liabilities are specific to each segment. Receivables assigned by the Automotive (excluding AVTOVAZ) segment to
the sales financing companies are treated as operating assets by the assignee when the risks and benefits are substantially
transferred. These receivables are mostly receivables on the dealership network.
Vehicles and batteries for which the Automotive (excluding AVTOVAZ) segment has a repurchase commitment are included in
the segment’s assets. When these assets are financed by the Sales Financing segment, the Sales Financing segment recognizes
a receivable on the Automotive (excluding AVTOVAZ) segment.




27
Current and non-current assets and liabilities
Sales financing receivables, other securities, derivatives, loans and financial liabilities of the Sales Financing segment (other than
redeemable shares and subordinated loans) are considered as current assets and liabilities, because they are used in this
operating segment’s normal business cycle.
For the Automotive segments, in addition to items directly related to the business cycle, all assets and liabilities maturing within
one year are classified as current.



2 – E. Translation of the financial statements of foreign companies
The Group’s presentation currency is the euro. For foreign companies, the functional currency is generally the local currency. In
cases where most transactions are carried out in a different currency, that is adopted as the functional currency.
Foreign companies’ accounts are established in their functional currency, and subsequently translated into the Group’s
presentation currency as follows:
• financial position items other than components of shareholders’ equity, which are stated at historical value, are translated
at the closing exchange rate;
• income statement items are translated at the average exchange rate for the period;
• the translation adjustment is one of the other components of comprehensive income, and therefore has no impact on net
income.
Goodwill generated by a business combination with a foreign company is treated as an asset or liability of the entity acquired, as
appropriate. It is therefore expressed in the relevant entity's functional currency, and translated into euros at the closing rate.
When a foreign company is sold, the accumulated translation adjustments on its assets and liabilities are transferred to other
operating income and expenses in the income statement.
In an exception to the above principles, the financial statements of entities in hyperinflationary economies are translated in
accordance with IAS 29 “Financial reporting in hyperinflationary economies”. Non-monetary balance sheet items, income
statement items, comprehensive income items and cash flow statement items are adjusted for inflation in their original local
currency, then all the financial statements are translated at the closing exchange rate for the period. This hyperinflationary
accounting leads to recognition of a gain or loss resulting from exposure to hyperinflation, which is classified as other financial
income and expenses and thus included in reserves the following year.
To determine whether a country is in hyperinflation, the Group refers to the list published by the International Practices Task
Force (IPTF) of the Center for Audit Quality. The financial statements of the Group’s subsidiaries in Argentina are consolidated
in accordance with the principles of IAS 29, which are applied from January 1, 2018.
It should be noted that the IFRIC is currently examining questions submitted to it about application of IAS 21 “The Effects of
Changes in Foreign Exchange Rates” and IAS 29 “Financial Reporting in Hyperinflationary Economies” to the financial statements
of entities operating in a hyperinflationary economy. These questions particularly concern the classification of accumulated
translation adjustments prior to the hyperinflation period, and classification of the effects of index-based restatement and
translation of the financial statements of hyperinflationary economy subsidiaries in reserves or in the translation adjustment
included in equity. Allocation of the effects of index-based restatement for hyperinflation and translation of the accounts between
reserves and the translation adjustment could be affected by the IFRIC’s forthcoming conclusions.


2 – F. Translation of foreign currency transactions
Transactions undertaken in a currency other than the functional currency of the entity concerned are initially translated to and
recorded in the functional currency, using the rate applicable at the transaction date.
For financial reporting purposes, monetary assets and liabilities in currencies other than the functional currency are translated at
the closing rate. All resulting foreign exchange differences are recognized in the income statement, except for foreign exchange
gains and losses on financial instruments designated as hedges of a net investment in a foreign entity (note 2-X).
The following impacts are therefore recorded in net income:
• translation adjustments related to financial operations by the Automotive segments are included in the net financial income;
• other translation adjustments are included in the operating margin.
Derivatives are measured and recorded as described in note 2-X.


2 – G. Revenues and margin
Revenues comprise all proceeds from sales of the Group’s automotive goods, services related to these sales, and the various
sales financing products marketed by the Group’s companies to their customers.




28
Sales of goods and services and margin recognition
• Sales and margin recognition
Sales of automotive goods are recognized at the date control is transferred. The transfer of control over automotive goods takes
place when the goods are made available to the distribution network in the case of non-Group dealers (at the time they are added
to or removed from stock, depending on the contractual arrangements) or upon delivery to the end-user in the case of direct
sales.
However, there is no transfer of control in the case of goods sold under an operating lease by a Group finance company, or in
the case of goods sold with a buy-back commitment if it is highly likely that they will be returned. In such transactions, the revenues
are recognized progressively over the lease period, and a used vehicle sale is recorded when control of the used vehicle is
transferred.
The difference between the price paid by the customer and the buy-back price is treated as rental income, and spread over the
period the automotive item is at the customer’s disposal. The production cost for the new automotive item concerned is recorded
in inventories for contracts of less than one year, or included in property, plant and equipment under fixed assets leased to
customers when the contracts exceed one year. The forecast resale value takes account of recent known developments on the
second-hand automotive market but also future anticipated developments over the period in which the automotive goods will be
sold, which may be influenced by factors both external (economic situation, taxation) and internal (changes in the range or the
manufacturer’s pricing strategy). As soon as a loss is expected on the resale, a provision (if the automotive item is in inventories)
or additional depreciation (if the automotive item is included in property, plant and equipment) is recognized to cover the loss.


• Sales incentive programs


Sales incentive programs based on the volumes or prices of products sold are deducted from sales when the sales operations
concerned are recorded. Any provisions are based on estimates of the most probable amount.
The Group undertakes certain promotional campaigns offering reduced-interest customer credit or discounts on services.
Because these are sales incentives, the cost of these operations is recognized as a reduction in sales by the Automotive segment
when the vehicle sale takes place, and is not spread over the duration of the financing or the services concerned.


• Warranty
The Group makes a distinction between insurance-type warranties and service-type warranties. Provisions are established for
insurance-type warranties, while service-type warranties give rise to revenue that is spread over the duration of the warranty
extension.
The estimated or incurred costs relating to manufacturer’s product or part warranties classified as insurance-type warranties are
charged to expenses when the sales are recorded. Provisions for costs to be borne by Renault are valued on the basis of observed
data by model and engine, i.e. the level of costs, and their distribution over the periods covered by the manufacturer’s warranty.
In the event of product recalls following incidents that come to light after the vehicle has been put on the market, provisions are
established to cover the costs involved as soon as the decision to undertake the recall campaign has been made. Amounts
claimed from suppliers are deducted from the warranty expense when it is considered practically certain they will be recovered.
• Services related to sales of automotive products
Revenues from service contracts sold by the Group are recognized on a percentage-of-completion basis. These contracts may
be for warranty extensions, maintenance or insurance.
Such service contracts may be sold separately to the final customer or included free of charge in a sale package covering a
vehicle and related services. In either case, the Group considers service contracts as a separate service obligation from delivery
of the vehicle, and allocates a portion of revenue to the service contract.
When the customer makes regular payments for the service contract, the revenue is recognized on a straight-line basis. When
the contract is prepaid (for example, when it is paid for by the customer at the time of the vehicle purchase), the amounts received
are recorded as deferred income, and spread over the duration of the contract, on a straight-line basis for warranty extensions
and following an experience curve for maintenance contracts.
• Impairment of customer receivables
Impairment is booked in respect of the Automotive segment’s customer receivables to reflect the prospective assessment of the
credit risk at the inception of the receivable and any deterioration of that risk over time. When there is an incurred credit loss,
impairment is recorded individually for each receivable.


Sales financing revenues and operating margin recognition
• Sales financing revenues
Sales financing revenues are generated by financing operations for sales of vehicles to dealers and end-users. These financing
operations take the form of loans from the Sales Financing segment companies, and are carried in the balance sheet at amortized
cost under the effective interest rate method, less any impairment. Income on these contracts is calculated so as to give a constant
interest rate over the period, and is included in sales revenues.




29
• Sales financing costs
The costs of sales financing are considered as operating expenses and included in the operating margin. They mainly comprise
interest incurred by sales financing companies to refinance their customer loan transactions, other costs and revenues directly
related to administration of this type of refinancing (temporary investments, hedging and management of exchange and interest
rate risks), and the cost of risks related to receivables. Refinancing comes from diversified sources: public and private bond
issues, public and private securitization backed by Automotive segments loans, negotiable debt instruments, savings collected
and financing from credit institutions and assimilates.
• Commissions payable to business intermediaries
Commissions are treated as external distribution costs, and therefore deferred as contract acquisition costs, so as to give a
constant interest rate over the term of the financing contracts.
• Classification and impairment of receivables
The impairment method for financial receivables depends on the category concerned. For healthy receivables (stage 1),
impairment is equivalent to the 12-month expected credit loss; for receivables on which the credit risk has significantly deteriorated
since initial recognition (stage 2), impairment is equivalent to the lifetime expected losses; and for receivables in default (stage
3), impairment is equivalent to the incurred credit loss.
The Sales Financing segment uses an internal scoring system or external ratings to identify any significant deterioration in the
credit risk. In addition, this segment has decided to use the assumptions set out in the standard and thus downgrades any
receivable outstanding after 30 days to stage 2, and any receivable still outstanding after 90 days to stage 3.
The Sales Financing segment refers to the current recommendations of the Basel Committee to generate the parameters needed
to calculate the probability of default and the loss rates in the event of default on loans and financing, finance lease receivables,
irrevocable financing commitments, and financial guarantees given to customers and dealers in its principal countries of business
(Germany, Brazil, Spain, France, Italy and the United Kingdom for customer and dealer financing, Korea for customer financing
only). These assets account for more than 85% of financial assets. For other assets, a standard approach based on a simplified
methodology is applied.
As the assumptions used are essentially based on observable market data, the calculation of impairment for expected credit
losses in the Sales Financing segment also incorporates forward-looking macro-economic data (GDP, long-term rates, etc) to
reflect changes in indicators and sector-specific information.
• Write-off rules
The gross book value of a financial asset is written off when there are no reasonable expectations of recovery. The asset is
derecognized via a loss account, and the associated impairment is reversed when the non-recoverability of receivables is
confirmed, or at the latest when the Sales Financing segment’s rights as creditor are extinguished. Examples of receivables that
become non-recoverable and are derecognized are waivers negotiated with customers (notably as part of a recovery plan), time-
barred receivables, receivables concerned by an unfavourable legal judgement (when the outcome of a lawsuit or litigation is
negative), and receivables owed by a customer that no longer exists.



2 – H. Financial income (expenses)
The cost of net financial indebtedness comprises the cost of gross financial indebtedness less income associated with cash, cash
equivalents and financial assets of the Automotive segments. The cost of gross financial indebtedness consists of income and
expenses generated by the Automotive segments’ financial indebtedness during the period, including the impact of the effective
portion of the related interest rate hedges.
Other financial income and expenses mainly include foreign exchange gains and losses on financial items and related hedges,
the gain or loss caused by exposure to hyperinflation (note 2-E), the net interest on provisions for pensions, and dividends and
impairment of companies that are neither controlled nor under significant influence by the Group.


2 – I. Income tax
The Group recognizes deferred taxes for all temporary differences between the tax and book values of assets and liabilities in
the consolidated statement of financial position. Deferred taxes are calculated at the latest tax rate enacted at the closing date
applicable to the period when temporary differences are reversed. Each individual fiscal entity (legal entity, establishment or group
of entities that pays tax to the tax administration) that is authorized to offset its current tax assets and liabilities reports deferred
tax assets and liabilities net. Recognition of deferred tax assets depends on the probability of future recovery.
For associates and joint ventures, a deferred tax liability on dividend distributions is booked for all differences between the book
value and tax value of shares held.
Tax credits that can only be used against a taxable profit are recorded as a deduction from the income tax payable. Tax credits
that are recoverable regardless of whether the company makes a taxable profit are set against the relevant nature of expense.




30
To determine the provisions for uncertain tax liabilities, the Group uses a case-by-case method based on the most probable
value. In view of their qualitative characteristics these provisions are reported on specific lines in the consolidated financial
position.


2 – J. Goodwill
Non-controlling interests (formerly called “minority interests”) are carried at fair value (the full goodwill method) or at their share
in the fair value of assets acquired and liabilities transferred (the partial goodwill method). To date Renault has only recognized
goodwill valued under the partial goodwill method. The choice of which method to use is made for each individual case.
Goodwill is not amortized, but impairment tests are carried out at least annually or whenever there is evidence of loss of value.
After initial recognition, goodwill is stated at cost less any accumulated impairment.
Goodwill relating to associates and joint ventures is included in the value of the entities concerned as reported in the assets in
the statement of financial position. In the event of impairment, an impairment loss is booked and included in the consolidated
income statement via the share in net income (loss) of associates and joint ventures.
Acquisitions of additional investments concerning non-controlling interests in companies controlled by the Group are treated as
equity transactions. The positive or negative difference between the cost of acquiring shares and the book value of the non-
controlling interests acquired is recorded in shareholders’ equity.


2 – K. Research and development expenses and other intangible assets
• Research and development expenses
Development expenses incurred between the decision to begin development and implement production facilities for a new vehicle
or component (e.g. engine or gearbox) and the subsequent approval of the design for mass production are capitalized as
intangible assets. They are amortized on a straight-line basis from the date of approval for production, over the expected market
life of the vehicle or part, which is initially no longer than seven years. Market lives are regularly reviewed and subsequently
adjusted if there is a significant difference from the initial estimate. Capitalized development expenses mainly comprise the cost
of prototypes, the cost of studies invoiced by external firms, the cost of personnel assigned to the project and a share of overheads
dedicated exclusively to development activities.
Borrowing costs directly attributable to the development of a project requiring at least 12 months of preparation before
commissioning are included in the gross value of the asset, which is a “qualifying asset”. The capitalization rate for borrowing
costs is limited such that capitalized borrowing costs do not exceed the total borrowing costs borne during the year. When a
project is financed through a specific borrowing, the capitalization rate is equal to the interest rate on the borrowing.
Expenses incurred before the decision to begin product development are recorded as costs in the period they are incurred, in
the same way as research expenses. Expenses incurred after the start of mass production are treated as production costs.
• Other intangible assets
Other intangible assets comprise patents, leasehold rights, intangible business assets, licences, software, brands and similar
rights purchased by the Group. When they have a finite useful life, patents, leasehold rights, licences, brands and similar rights
purchased are amortized on a straight-line basis over the period of protection stipulated by the contact or the law, or over the
useful life if shorter. Intangible business assets and softwares are amortized over their useful life. The useful life of intangible
assets is generally between 3 and 5 years. Intangible assets with an indefinite useful life, such as the Lada brand (note 11-C),
are subjected to an impairment test at least once a year and when there is any indication of impairment.


2 – L. Property, plant and equipment and right-of-use assets
The gross value of property, plant and equipment corresponds to historical acquisition or production cost.
Design and preparation expenses are included in the asset’s production cost.
The production cost for property, plant and equipment also includes financing costs borne during the construction phase, under
the same method as for intangible assets. When a project is financed through a specific borrowing, the capitalization rate is
equal to the interest rate on the borrowing.
Investment subsidies received are deducted from the gross value of the assets concerned.
Subsequent expenses for property, plant and equipment, except those incurred to increase productivity or prolong the life of an
asset, are charged to expenses as incurred.
Assets leased to customers include vehicles leased for more than one year from a Group finance company with a buy-back
commitment by the Group, and vehicles sold under an agreement including a clause for buy-back after a minimum one year of
use. Assets leased to customers also include batteries leased to electric vehicle users by Group finance companies (note 2-G).




31
Right-of-use assets
The following policies are applied in the 2019 financial statements, which comply with the standards applicable at January 1,
2019. The 2018 financial statements were prepared under the previous accounting policies: assets used by the Group under
finance leases were treated as assets financed by credit, with recognition of a financial liability (note 23-A).
A contract contains a lease if it gives the lessee the right to use an identified asset for a specified period of time in exchange for
payment.
At the contract’s commencement date, a lessee recognizes an asset related to the right of use, and a financial liability that
represents the lease obligation. The right-of-use asset is amortized over the term of the lease. The lease liability is initially
recognized at the present value of lease payments over the expected term of the lease. The discount is unwound using the implicit
interest rate of the lease agreement if it can be readily determined, or at the incremental borrowing rate otherwise. As lessee, the
Group uses the incremental borrowing rate, calculated for each monetary zone as the risk-free rate applicable in the zone, plus
the Group’s risk premium for the local currency. In the income statement, amortization of the right-of-use asset is recorded in the
operating margin, and a financial expense corresponding to the interest on the lease liability is recorded in financial income and
expenses, replacing the lease payments previously charged to the operating margin. The tax impact of this consolidation
adjustment is recognized via deferred taxes. In the cash flow statement, cash flows from operating activities are impacted by
interest expenses paid, and cash flows from financing activities are impacted by the reimbursed lease liability.
Lease payments on short-term leases (12 months or less) and leases of low-value assets are treated as operating expenses and
amortized on a straight-line basis.

The term of the lease is the non-cancellable period of a lease contract during which the lessee has the right to use the leased
asset, extended by any renewal options the Group is reasonably certain to exercise.

Improvements to leased buildings are depreciated over a duration that is equal to or shorter than the lease term used to estimate
the lease liability.

When a lease contract contains a purchase option the Group is reasonably certain to exercise, it is in substance a purchase
rather than a lease. The corresponding liability is considered as a financial liability under IFRS 9, and the asset as a tangible
asset in compliance with IAS 16.

Provisions for repairs required contractually by lessors are recognized at the start of the lease, with a corresponding tangible
asset.

The Group is a party to leases of real estate property (land, concessions, warehouses, offices, etc) and movable property (IT and
operating equipment, transport equipment).




Depreciation
In the Automotive (excluding AVTOVAZ) segment and the Sales Financing segment, depreciation is calculated on a straight-
line basis over the following estimated useful lives:

Buildings (1) 15 to 30 years
Specific tools 2 to 7 years
Machinery and other tools (other than press lines) 5 to 15 years
Press lines and stamping installations 20 to 30 years
(2)
Other tangible assets 4 to 6 years

Buildings in use before 1987 are depreciated over a period of up to 40 years.
(1)
Except for leased batteries, which are depreciated over periods of 8 to 10 years depending on the models.
(2)



Useful lives are regularly reviewed, and accelerated depreciation is recorded when an asset's useful life becomes shorter than
the initially expected period of use, particularly when it is decided to withdraw a vehicle or component from the market.
Depreciation for the AVTOVAZ segment is calculated on a straight-line basis over useful lives that may be longer than those
used in other Renault Group companies.


2 – M. Impairment
Impairment of fixed assets (other than leased assets)
Fixed assets are subjected to impairment tests as soon as there is any indication of a loss of value, such as significant adverse
changes in the market in which the company operates, or changes affecting the circumstances and manner of use of the assets.




32
For the Automotive (excluding AVTOVAZ) segment, impairment tests are carried out at two levels:

• At the level of vehicle-specific assets (including components)
Vehicle-specific assets (including components) consist of capitalized development expenses and tools. Impairment
tests are carried out by comparing the net book value of the assets with the recoverable value, calculated based on
discounted future cash flows related to the vehicle and its components. These assets may be specific to the model
and/or the country of destination.

• At the level of cash-generating units
A cash-generating unit is defined as a coherent subset that generates largely independent cash flows. Other cash-
generating units may represent an economic entity (plant or subsidiary) or the whole Automotive (excluding
AVTOVAZ) segment. Net fixed assets related to cash-generating units notably include goodwill, specific assets and
capacity assets, and components of working capital.

For each of the two levels, impairment tests are carried out by comparing the net book value with the recoverable value.
Recoverable value is defined as the higher of value in use or fair value less selling costs.

Value in use is the present value of estimated future cash flows expected to arise from the use of an asset. Future cash flows
derive from the business plan drawn up and validated by the Management, plus a terminal value based on discounted normative
cash flows after application of a growth rate to infinity. They also include the dividends paid by the Sales Financing segment to
the Automotive (excluding AVTOVAZ) segment; these dividends represent, in cash form, the Sales Financing segment’s
contribution as taken into consideration in internal assessments of project profitability. The assumptions underlying the business
plan include estimates of market developments in countries in which the Group operates and its share of those markets, changes
in the sale price of products and the prices of purchased components and commodities. The pre-tax discount rate used is the
weighted average cost of capital as determined by the company.

When the recoverable value is lower than the net book value, impairment equivalent to the difference is recorded against the
assets concerned.

For the Sales Financing segment, an impairment test is carried out at least once a year or whenever there is an indication of
loss of value, by comparing the book value and recoverable value of assets. Recoverable value is defined as the higher of fair
value (less selling costs) and value in use. The value in use is based on a market approach, determined by using multiples for
each group of cash-generating units made up of legal entities or groups of legal entities in the same country. The same discount
rate is used for all cash-generating units tested: a risk-free 10-year rate increased by the average risk premium for the sector in
which the cash-generating units operate. The forecast horizon for income and losses is one year.
For AVTOVAZ, impairment tests are also carried out at two levels (on specific assets and on the whole Group).The AVTOVAZ
Group as a whole is considered as one cash-generating unit, and no tests are conducted for individual factories or economic
entities.
Impairment of investments in associates and joint ventures
Impairment tests of the value of investments in associates and joint ventures are carried out as soon as there is any indication of
a loss of value, essentially significant adverse changes in the markets in which the company operates, or a major or long-term
decline in stock market value.
Impairment tests are carried out in compliance with IAS 28 and IAS 36, by comparing the book value of the investment in the
associate or joint venture with the recoverable value, which is the higher of value in use and fair value, less selling costs. The
value in use is equal to the share of the present value of future estimated cash flows expected by the associate or joint venture.
If the associate or joint venture is listed, the fair value is its stock market value.


When the recoverable value is lower than the book value, impairment equivalent to the difference is recorded against the relevant
investment in an associate or joint venture, and included in the Group’s income statement via the share in net income (loss) of
associates and joint ventures.


2 – N. Non-current assets or groups of assets held for sale
Assets held for sale are non-current assets or groups of assets that are available for immediate sale and have a high probability
of being sold.
Non-current assets or groups of assets considered to be held for sale are measured and recorded at the lower of net book value
or fair value less selling costs. No further amortization is recorded once an asset is classified as held for sale (or included in a
group of assets held for sale). These assets are reported on a specific line of the consolidated financial position.


2 – O. Inventories
Inventories are stated at the lower of cost or net realizable value. Cost corresponds to acquisition cost or production cost, which
includes direct and indirect production expenses, a share of manufacturing overheads based on a normal level of activity and the
results of any related hedges. The normal level of activity is assessed site by site, in order to determine the share of fixed costs
to be excluded in the event of below-normal activity.




33
Inventories of the Automotive (excluding AVTOVAZ) segment and the Sales Financing segment are valued under the FIFO (First
In First Out) method. Inventories of AVTOVAZ are valued at weighted average cost.
When the net realizable value is lower than the financial position value, impairment equal to the difference is recorded.


2 – P. Assignment of receivables
Receivables assigned to third parties (through securitization, discounting, or factoring) are removed from Group assets when the
associated risks and benefits are also substantially transferred to the third parties in question.
The same treatment applies to assignments between the Automotive (excluding AVTOVAZ) and Sales Financing segments.


2 – Q. Treasury shares
Treasury shares are shares held for the purposes of stock option plans, performance share plans and other share-based payment
arrangements awarded to Group managers and executives.


They are recorded at acquisition cost and deducted from Group shareholders’ equity until the date of sale.
When these shares are sold, the sale price is directly included in consolidated shareholders’ equity. Consequently, no gain or
loss on treasury shares is included in the net income for the period.


2 – R. Stock option plans / Performance share attribution plans and other share-based payments
agreements
The Group awards stock option plans, performance share attribution plans and other share-based payments, all for Renault
shares. The grant date is the date at which beneficiaries are informed of the decision to grant these options or performance
shares, and the terms of the relevant plans. For plans subject to performance conditions, an estimate of achievement of those
conditions is taken into account in determining the number of options or shares attributed. This estimate is reviewed annually
based on changes in the probability of performance condition achievement. The final fair value of services rendered in return for
attribution of options or shares is measured by reference to the fair value of those options or shares at their grant date, using a
suitable binomial mathematical model that assumes exercise of the options is spread over the exercise period on a straight-line
basis. Entitlements to attribution of performance shares are valued based on the share value at grant date less dividends expected
during the vesting period. Where relevant, a discount is applied to reflect the fact that the shares must be held for a certain period.
The share price volatility factor applied is implicit volatility at the grant date. The expected dividend used is determined by
reference to the dividend payout schedule announced at the time each plan is valued.
The total fair value calculated in this way is spread on a straight-line basis over the vesting period for the relevant plan. The cost
is included in personnel expenses, with a corresponding adjustment to consolidated reserves. When the option is exercised, the
cash amount received by the Group in settlement of the exercise price is booked in cash and cash equivalents, with a
corresponding adjustment to consolidated reserves.


2 – S. Pensions and other long-term employee benefit obligations
The Group’s payments for defined-contribution benefit plans are recorded as expenses for the relevant period.
For defined-benefit plans concerning post-employment benefits, the Group uses the Projected Unit Credit Method to determine
the present value of its obligations. Under this method, benefits are attributed to periods of service according to the plan's benefit
formula, principally on a straight-line basis over the years of service.
The future payments for employee benefits are measured on the basis of future salary increases, retirement age, mortality and
length of employment with the company, and are discounted at a rate determined by reference to yields on long-term high quality
corporate bonds of a duration corresponding to the estimated average duration of the benefit plan concerned.
The actuarial gains and losses resulting from revisions of the underlying assumptions and experience-based adjustments are
included in other components of comprehensive income.
The net expense for the year, corresponding to the current period service cost plus the past service cost where relevant, is
charged to the operating margin. The interest expense on the net defined-benefit liability (asset) is recorded in the net financial
income and expenses.




34
2 – T. Workforce adjustment measures
The estimated cost of workforce adjustment measures, which for accounting purposes is treated as an employee benefit, is
covered by a provision over the estimated residual employment period of the employees concerned.
The estimated cost of termination indemnities is recognized as soon as a detailed plan has either been announced or is in
progress.


2 – U. Financial assets
The Group recognizes a financial asset when it becomes a party to the contractual provisions of a financial instrument.
Financial assets comprise investments in non-controlled companies in which Renault does not exercise significant influence,
marketable securities, negotiable debt instruments, loans, and derivative assets related to financial transactions (note 2-X).
These instruments are presented as non-current assets, apart from those maturing within 12 months of the closing date, which
are classified as current assets.


Investments in non-controlled companies in which Renault does not have significant influence
Investments in non-controlled companies in which Renault does not have significant influence are classified as equity instruments
at fair value through profit and loss. The fair values of such financial assets are determined in priority by reference to the market
price. If this is not possible, the Group uses a valuation method that is not based on market data.
In an exception to this rule, the Group has made an irrevocable option to present the Daimler shares at fair value other
components of comprehensive income.


Marketable securities and negotiable debt instruments
Short-term investments in the form of marketable securities and negotiable debt instruments are undertaken for the management
of cash surpluses, but do not meet the requirements to qualify as cash equivalents. These are debt instruments carried at fair
value through other components of comprehensive income, except for shares in investment funds (UCITS) which are carried at
fair value through profit and loss.
Impairment equivalent to expected credit losses is booked upon initial recognition of debt instruments carried at fair value
through other components of comprehensive income.


Loans
Loans essentially include loans for investment of cash surpluses and loans to associates.
Loans are carried at amortized cost. Impairment equivalent to expected credit losses is recognized upon initial recognition of the
financial asset, and when there is objective evidence of loss of value caused by an event arising after the initial recognition.



2 – V. Cash and cash equivalents
Cash includes cash on hand, current accounts and other demand deposits, with the exception of bank overdrafts, which are
included in financial liabilities. These instruments are stated at amortized cost except for shares in investment funds (UCITS)
which are carried at fair value through profit and loss.
Cash equivalents are investments held for the purpose of meeting short-term cash commitments. For an investment to qualify as
a cash equivalent, it must be considered as liquid, be readily convertible for a known amount of cash and be subject to an
insignificant risk of change in value.
Bank accounts subject to restrictions due to sector-specific regulations (for example, banking or insurance regulations) or bank
accounts allocated to increasing credit on securitized receivables are included in cash and cash equivalents.


2 – W. Financial liabilities of the Automotive segments and Sales Financing debts
The Group recognizes a financial liability (for the Automotive segments) or a Sales Financing debt when it becomes a party to
the contractual provisions of a financial instrument.
Financial liabilities and Sales Financing debts comprise redeemable shares, bonds, other debts represented by a certificate,
borrowings from credit institutions, lease liabilities in application of IFRS 16 (notes 2-A2 and 2-L), other interest-bearing
borrowings and derivative liabilities related to financial transactions (note 2-X).
Redeemable shares are listed subordinated debt instruments that earn a variable return indexed on consolidated revenues. They
are carried at amortized cost, determined by discounting forecast coupons using the effective interest rate on borrowings.
Financial liabilities not concerned by specific hedge accounting methods (note 2-X) are generally recorded at amortized cost
using the effective interest rate method. financial expense calculated in this way includes issuance expenses and issuance or
redemption premiums, together with the impact of debt renegotiations when the old and new terms are not substantially different.



35
2 – X. Derivatives and hedge accounting
Measurement and presentation
Derivatives are initially stated at fair value. This fair value is subsequently reviewed at each closing date.
• The fair value of forward exchange contracts and currency swaps is determined by discounting future cash flows, using
closing-date market rates (exchange and interest rates).
• The fair value of interest rate derivatives is the amount the Group would receive (or pay) to settle outstanding contracts at
the closing date, taking into account interest rates forward curves and the quality of the counterparty to each contract at
the closing date. This fair value includes accrued interest.
• The fair value of commodity derivatives is based on market conditions.
The Automotive segments’ derivatives are reported in the financial position as current if they mature within 12 months and non-
current otherwise. All Sales Financing segment derivatives are reported in the financial position as current.
Hedge accounting
The treatment of derivatives designated as hedging instruments depends on the type of hedging relationship:
• fair value hedge;
• cash flow hedge;
• hedge of a net investment in a foreign operation.
The Group identifies the hedging instrument and the hedged item as soon as the hedge is set up, and documents the hedging
relationship, stating the hedging strategy, the risk hedged and the method used to assess the hedge’s effectiveness. The Sales
Financing segment documents micro-hedges relationships, which hedge one or more homogeneous items, and macro-hedges
relationships, which hedge several items involving similar types of risk. This documentation is subsequently updated such that
the effectiveness of the designated hedge can be demonstrated.
Hedge accounting uses specific measurement and recognition methods for each category of hedge.
• Fair value hedges: the hedged item is adjusted to fair value up to the risk hedged and the hedging instrument is recorded
at fair value. As changes in these items are recorded in the income statement simultaneously, only the ineffective portion
of the hedge has an impact on net income. It is recorded in the same income statement item as changes in the fair value
of the hedged item and the hedging instrument.
• Cash flow hedges: no adjustment is made to the value of the hedged item; only the hedging instrument is adjusted to fair
value. Following this adjustment, the effective portion of the change in fair value attributable to the hedged risk is recorded,
net of taxes, in other components of comprehensive income, while the ineffective portion is included in net income. The
cumulative amount included in shareholders’ equity is transferred to the income statement when the hedged item has an
impact on net income.
• Hedge of a net investment in a foreign operation: the hedging instrument is adjusted to fair value. Following this
adjustment, the effective portion of the change in fair value attributable to the hedged exchange risk is recorded, net of
taxes, in other components of comprehensive income, while the ineffective portion is included in net income. The
cumulative amount included in shareholders’ equity is transferred to net income at the date of liquidation or sale of the
investment. The interest rate component of borrowings in yen used to hedge the investment in Nissan is considered as
the ineffective portion, and is therefore recorded directly in financial income and expenses.


Derivatives not designated as hedges
Changes in the fair value of derivatives not designated as hedges are recognized directly in financial income, except in the case
of derivatives entered into exclusively for reasons closely related to business operations. In this case, changes in the fair value
of derivatives are included in the operating margin.




36
NOTE 3 – CHANGES IN THE SCOPE OF CONSOLIDATION



Automotive AVTOVAZ Sales Total
(excluding Financing
AVTOVAZ)
Number of companies consolidated at December
31, 2018 118 54 40 212

Newly consolidated companies (acquisitions,
formations, etc.) 10 1 2 13

Deconsolidated companies (disposals, mergers,
liquidations, etc.) - 2 - 2

Number of companies consolidated at December
31, 2019 128 53 42 223




The following companies were included in the scope of consolidation for the first time in 2019.

3 – A. Automotive (excluding) AVTOVAZ segment
• In March and June 2019, Renault s.a.s. took a 15% stake in new electricity storage companies Tokay 1 and Tokay 2,
which have registered share capital of €3.5 million and €1. 3 million respectively. As the Group has significant influence
over Tokay 1 and Tokay 2, they are accounted for by the equity method in the consolidated financial statements.


• In June 2019, Renault s.a.s., in partnership with the Nissan group, set up the joint ventures Alliance Mobility Company
France and Alliance Mobility Company Japan, which are dedicated to driverless mobility services. The Group holds 50%
of the capital of each of these entities, which amounted to a total €100,000 and 10 million yen respectively at June 30,
2019. Both entities undertook capital increases subscribed in equal shares by Renault and Nissan during the second
half-year of 2019, for amounts of €51.6 million and 4,901 million yen respectively. These two joint ventures are accounted
for by the equity method in the consolidated financial statements.

• In July 2019, Renault s.a.s. acquired an investment in the Chinese company JMEV Jiangxi Jiangling Group Electric
Vehicle Co. Ltd and committed to participate, subject to conditions, in a capital increase of up to RMB 1 billion, after
which the Group will own 50% of JMEV. Renault holds the majority on the Board of Directors, with 4 of the total 7
directors, and key decisions for control analysis purposes are taken by a simple majority. This takeover reinforces the
Group’s presence in the electric vehicle sector on the Chinese market. The terms and amount of the capital increases
are still in negotiation with the Chinese partner, and a first capital increase is expected to take place in 2020.
Due to the fact that the Group has effective control, after analysis of the substance of this acquisition JMEV and its
subsidiaries are fully consolidated in the Group’s consolidated financial statements to reflect the assets acquired and
liabilities transferred as required by IFRS 10, with a three-month time lag in accounting data. The accounts of JMEV
and its subsidiaries included in the consolidation are for the period July 16 to September 30, 2019. The costs of this
takeover are not significant at December 31, 2019 and are recorded in other operating expenses.
The assets acquired and liabilities transferred are recorded at December 31, 2019 at their book value in the financial
statements of JMEV and its principal subsidiary, JMEVS. No contingent liabilities or translation adjustments have been
recognized at this stage. The goodwill stated in the financial statements at December 31, 2019 is thus provisional and
the final fair values of the assets acquired and liabilities transferred will be determined within 12 months.

A breakdown of the net assets acquired is shown in the following table:

Amounts at the date of acquisition of control
(€ million) (RMB million)

192 1,477
Property, plant and equipment and intangible assets

28 215
Inventories

229 1,762
Customer receivables

490 3,769
Other assets

17 131
Cash and cash equivalents

(253) (1,946)
Financial liabilities

(443) (3,407)
Other liabilities

Net assets acquired 260 2,000




37
Amounts at the date of acquisition of control
(€ million) (RMB million)

130 1,000
Fair value of the consideration paid (A)

260 2,000
JMEV net assets – 50% acquired

130 1,000
Share of net assets acquired (B)

- -
Provisional goodwill (A) - (B)



• In December 2019, the Group set up the new entity Renault M.A.I. (Mobility As an Industry) to accelerate development
in new types of mobility and form strategic partnerships. The company’s share capital is €165 million. As of December
31, 2019 it holds the investments in Flit Tech (a taxi reservation platform), iCabbi (software development for taxis) and
Marcel (a private car hire app) which were previously held by RCI Banque.

• The Group has finalized determination of the fair values of the assets acquired and liabilities transferred from Les
Éditions Croque Futur, in which it acquired a 40.26% investment in March 2018. This company operates in the written
press sector, notably owning the magazine titles Challenges, Historia, Sciences et Avenir, Histoire and La Recherche.
Les Éditions Croque Futur, over which the Group has significant influence, is accounted for by the equity method. The
principal adjustments concern the magazine titles, recognized at €9.7 million (on a 100% basis), and subscriber
relations, recognized at €8.1 million (on a 100% basis). The final goodwill at the acquisition date is €8 million. In July
2019, after a capital increase to which the Group did not subscribe, its investment was reduced to 35.11%.

• The Group has finalized determination of the fair values of the assets acquired and liabilities transferred from Carizy, in
which it acquired a 96.08% investment in June 2018. Carizy operates in the expert advice and intermediation sector for
used vehicles, notably owning the website Carizy.com. It is fully consolidated. The main adjustment concerns the brand,
recognized at €3 million. The final goodwill at the acquisition date is €24 million.


3 - B. AVTOVAZ

• There was no change during 2019 in Renault’s percentage ownership of Alliance Rostec Auto b.v. At December 31,
2018, Renault held 61.09% of the capital of Alliance Rostec Auto b.v., which held 100% of AVTOVAZ. The percentage
ownership applied in the consolidated financial statements at December 31, 2018 was 67.61% including the capital
increase that took place in early 2019 in accordance with the shareholders’ decisions made on November 28, 2018
and signed by Renault s.a.s.. The impact of these operations and the change in Renault s.a.s.’s investment in Alliance
Rostec Auto b.v. and Alliance Rostec Auto b.v.’s investment in AVTOVAZ were recognized directly in shareholders’
equity – parent-company shareholders’ share and non-controlling interests’ share, in the respective amounts of €72
million and €245 million.
The value of the non-controlling interest at December 31, 2019 is €83 million (€52 million at December 31, 2018).

• In July 2019, AVTOVAZ sold AO Smolensk-LADA and AO Dal-Lada. The operation generated a gain of €0.5 million.

• In December 2019 PAO AVTOVAZ acquired a further 50% interest in addition to its initial 50% shareholding in ZAO
GM-AVTOVAZ, for the price of €5.9 million. ZAO GM-AVTOVAZ and its subsidiary JVS were previously accounted for
by the equity method in the Renault group consolidation. Among other consequences, the takeover entails ownership
of the right to use the NIVA brand. Control was acquired on December 16, 2019. As the impact of these entities on net
income and changes in cash between December 16 and 31, 2019 are non-significant, full consolidation is applied from
December 31, 2019.

The fair value of the consideration paid at the acquisition date breaks down as follows:
€5.9 million (411 million roubles) corresponding to the previous investment. This valuation has led to
o
recognition of a loss on the sale of the previously-held shares amounting to €(7.3) million, recorded in other
operating expenses.
€5.9 million in cash (411 million roubles).
o

The costs of the takeover recorded in other operating expenses are not significant.

Determination of the fair values of assets acquired and liabilities transferred will take place within 12 months. The assets
acquired and liabilities transferred were recorded at their book value in the accounts of ZAO GM-AVTOVAZ, established
under US GAAP and restated under IFRS at December 31, 2019.




38
A breakdown of the net assets acquired is shown in the following table:

At December 31, 2019
(€ million) (RUB million)

17 1,213
Property, plant and equipment and intangible assets

40 2,809
Other assets

9 589
Cash and cash equivalents

(33) (2,290)
Provisions

(13) (934)
Financial liabilities

(27) (1,872)
Other liabilities

Net assets acquired (7) (476)




At December 31, 2019, goodwill breaks down as follows:

At December 31, 2019
(€ million) (RUB million)

12 822
Fair value of the consideration paid (A)

(7) (476)
ZAO – GM AVTOVAZ net assets – 100% acquired

(7) (476)
Share of net assets acquired (B)

19 1,298
Provisional goodwill (A) - (B)




39
4.2.6.3 Consolidated income statement
NOTE 4 – REVENUES
4 – A. Breakdown of revenues

2019 2018
(€ million)

44,226
Sales of goods - Automotive segment (including AVTOVAZ) 43,901

8,046
Sales to partners of the Automotive segment (including AVTOVAZ) 6,203
(1)

(2)
578
Rental income on leased assets 630
1,361
Sales of other services 1,398

1,939
Sales of services - Automotive segments (including AVTOVAZ) 2,028
27
Sales of goods - Sales Financing segment 36
Rental income on leased assets (2) 119
116
2,100
Interest income on sales financing receivables 2,210
Sales of other services (3) 962
1,043
3,181
Sales of services - Sales Financing segment 3,369
57,419
Total Revenues 55,537

(1) Most partners are automakers. The Automotive segments’ main partners are Nissan and Daimler. Sales to partners include sales of parts,
components, and vehicles to be sold under the partners’ own brands, and other services such as engineering developments.
(2) Rental income recorded by the Group on vehicle sales with a buy-back commitment or fixed asset rentals.
(3) Mainly income on services comprising insurance, maintenance, and replacement vehicles under a financing contract or otherwise.




4 – B. 2018 revenues applying 2019 scope and methods

Automotive AVTOVAZ Sales Total
(€ million)
(excluding Financing
AVTOVAZ)

2018 revenues 51,171 3,040 3,208 57,419

Changes in scope of consolidation 5 (10) - (5)

2018 revenues applying 2019 scope and methods 51,176 3,030 3,208 57,414

2019 revenues 49,002 3,130 3,405 55,537




40
NOTE 5 – OPERATING MARGIN: DETAILS OF INCOME AND EXPENSES BY NATURE
5 – A. Personnel expenses
Personnel expenses amount to €6,706 million in 2019 (€6,703 million in 2018).
The average workforce during the year for consolidated entities is presented in section 2.4- Human Capital of the 2019 Universal
Registration Document.
Details of pensions and other long-term employee benefit expenses are presented in note 19.
Share-based payments concern stock options, performance shares and other share-based payments granted to personnel, and
amounted to a personnel expense of €89 million for 2019 (€97 million in 2018).
The plan valuation method is presented in note 18-G.


5 – B. Foreign exchange gains/losses
In 2019, the operating margin includes a net foreign exchange gain of €42 million, mainly related to movements in the Turkish lira
(compared to a net foreign exchange loss of €72 million in 2018 related to movements in the Argentinian peso, Brazilian real and
Turkish lira).




41
NOTE 6 – OTHER OPERATING INCOME AND EXPENSES


2019 2018
(€ million)


Restructuring and workforce adjustment costs (236) (306)
Gains and losses on total or partial disposal of businesses or operating entities, and other
gains and losses related to changes in the scope of consolidation (5) 3
Gains and losses on disposal of property, plant and equipment and intangible assets (except
leased asset sales) (10) 65
Impairment of property, plant and equipment, intangible assets and goodwill (excluding
goodwill of associates and joint ventures) (229) (276)
Impairment related to operations in Iran - (47)
Other unusual items (77) (64)
Total (557) (625)




6 – A. Restructuring and workforce adjustment costs
Restructuring and workforce adjustment costs mainly concern the Europe region in 2019 and 2018.
In 2019 these costs include €89 million of complementary expenses related to revision of the assumptions regarding the higher
than anticipated numbers signing up to the French career-end work exemption plan set out in the initial agreement signed on
January 13, 2017 and amended on April 16, 2018 named “Renault France CAP 2020 – Contrat d’Activité pour une Performance
durable” (activity contract for sustainable performance).


6 – B. Impairment of fixed assets and goodwill (excluding goodwill of associates and joint ventures)
At December 31, 2019, impairment amounting to €(229) million net was recorded (€(276) million in 2018), comprising
€(239) million of new impairment and €10 million of impairment reversals. This impairment concerns intangible assets (net
increase of €(201) million) and property, plant and equipment (net increase of €(28) million) (notes 10 and 11). New impairment
was principally recorded as a result of impairment tests on internal combustion engine vehicles made for the Chinese market, in
view of the lower sales volumes and the downward revision of Renault’s prospects on that market (notes 10 and 11). Reversals
of impairment relate to electric vehicles.



6 – C. Impairment related to operations in Iran
The Group’s exposure to risks on business with Iran has been fully written off since 2013 and consists of securities, a shareholder
loan and commercial receivables. This situation changed little during 2019. The gross amount in the assets at December 31,
2019 was €782 million, including €677 million of customer receivables (€782 million and €677 million respectively at December
31, 2018).
As a result of the United States’ withdrawal from the JCPOA (Joint Comprehensive Plan of Action) and the reinstatement from
August 6, 2018 of sanctions for the automobile sector in Iran, there were no sales of CKD in 2019. Sales of CKD represented
€319 million in 2018.


6 – D. Other unusual items
In 2018 and 2019, impairment tests on certain vehicles led to recognition of unusual expenses corresponding to advance and
future payments to partners and suppliers in connection with those vehicles, amounting to €(78) million in 2019 and €(71) million
in 2018.




42
NOTE 7 – FINANCIAL INCOME (EXPENSES)

2019 2018
(€ million)

(386)
Cost of gross financial indebtedness (1) (373)
75
Income on cash and financial assets 65
(311)
Cost of net financial indebtedness (308)
59
Dividends received from companies that are neither controlled nor under significant influence 78
30
Foreign exchange gains and losses on financial operations 14
(34)
Gain/Loss on exposure to hyperinflation (31)
Net interest expenses on the defined-benefit liabilities and assets corresponding to pension
(28)
and other long-term employee benefit obligations (25)
(158)
Other (2) (81)
(131)
Other financial income and expenses (45)
(442)
Financial income (expense) (3) (353)

(1) The financial interest determined upon initial application of IFRS 16 in 2019 is presented in note 2-A2.
(2) Other items mainly comprise expenses on assignment of receivables, changes in fair value (the investments in FAA and Partech Growth),
bank commissions, discounts and late payment interest.
(3) No impairment was recognized in 2019 on financial items included in or excluded from net financial indebtedness.



The net liquidity position (or net financial indebtedness) of the Automotive segments is presented in the information by operating
segment (see section 4.2.6.1 – A4).




43
NOTE 8 – CURRENT AND DEFERRED TAXES
As Renault SA elected to determine French income taxes under the domestic tax consolidation regime when it was formed, this
is the regime applicable to the Group in which Renault SA is taxed in France.
The Renault Group also applies other optional tax consolidation systems in Germany, Italy, Spain, Romania and the UK.


8 – A. Current and deferred taxes

(€ million)
2019 2018
Current income taxes (626) (690)
Deferred tax income (charge) (828) (33)
Current and deferred taxes (1,454) (723)


The current income tax charge for entities included in the French tax consolidation group amount to €117 million in 2019
(€90 million in 2018).The increase in the current income tax charge between 2018 and 2019 is notably due to the higher level of
provisions for tax risks.
In 2019, €509 million of the current income tax charge comes from foreign entities including AVTOVAZ (€600 million in 2018).
This charge decreased in 2019, largely due to the lower taxable income in certain subsidiaries, and tax reassessments recognized
in 2018.

The deferred tax charge for 2019 reflects the fact that recognition of deferred tax assets on tax loss carryforwards under the
French tax consolidation system has been discontinued (with an effect of €(753) million), mainly as there were no prospects of
taxable income for the tax consolidation group on the horizon of the Drive the Future plan. The plan’s assumptions are currently
being revised to reflect the unfavourable market conditions.


8 – B. Breakdown of the tax charge

(€ million)
2019 2018
Income before taxes and share in net income of associates and joint ventures 1,663 2,634
Statutory income tax rate in France 34.43% 34.43%
Theoretical tax income (charge) (573) (907)
Effect of differences between local tax rates and the French rate (1) 194 249
Tax credits 78 33
Distribution taxes (56) (86)
Change in unrecognized deferred tax assets (2) (1,012) 73
(3)
Other impacts 8 -
Current and deferred tax income (charge) excluding taxes based on interim taxable
profits (1,361) (638)
Taxes based on interim taxable profits (4) (93) (85)
Current and deferred tax income (charge) (1,454) (723)

(1) The main contributors to the tax rate differential are Korea, Spain, Morocco, Romania, Switzerland, Turkey and the United Kingdom.
(2) The deferred tax charge for 2019 includes the effect of discontinued recognition of deferred tax assets on tax loss carryforwards related to
entities included in the French tax consolidation group (see note 8-A).
(3) Other impacts mainly include the effect of permanent differences, reduced-rate taxations, tax reassessments, specific tax regimes, prior year
adjustments and changes in future year tax rates adopted before the end of the period.
(4) The Group’s main taxes based on taxable profits are the CVAE in France and the IRAP in Italy.


French tax consolidation group
For the French tax consolidation group, the current tax charge amounts to €(117) million, principally consisting of the business
tax Cotisation sur la valeur ajoutée des entreprises (CVAE), and the deferred tax charge amounts to €(950) million, principally
due to discontinuation of recognition of deferred tax assets on tax loss carryforwards (see note 8-A).


Entities not in the French tax consolidation group
The effective tax rate across all foreign entities including AVTOVAZ is 19.4% in 2019 (28.7% in 2018).




44
8 – C. Changes in current tax liabilities, current tax receivables and provisions for uncertain tax liabilities


Current taxes Translation
(€ million)
December 31, in the income adjustment December 31,
2018 statement Net taxes paid and other 2019


Current taxes excluding uncertain tax positions (570) 570


Provisions for uncertain tax liabilities – short-
term (22) (5) 12 7 (8)


Provisions for uncertain tax liabilities – long-term (140) (51) 13 (9) (187)


Tax receivables – short-term 111 (28) 3 86


Tax receivables – long-term 19 5 (3) 21


Current tax liabilities – short-term (289) 64 - (225)


Current tax liabilities – long-term - - - -


TOTAL (321) (626) 636 (2) (313)



8 – D. Breakdown of net deferred taxes
D1 – Change in deferred tax assets and liabilities
Other
components of
(€ million)
December Income comprehensive Translation December
31, 2018 statement (1) income adjustments Other 31, 2019
Deferred tax assets 952 86 (35) 32 (19) 1,016
Deferred tax liabilities (135) (914) 3 (22) 24 (1,044)

Net deferred taxes 817 (828) (32) 10 5 (28)
- French tax consolidation group 178 (952) (46) - (20) (840)
- AVTOVAZ 196 70 - 31 4 301
- Other 443 54 14 (21) 21 511

(1) The deferred tax charge for 2019 includes the effect of discontinued recognition of deferred tax assets on tax loss carryforwards related to
entities included in the French tax consolidation group (see note 8-A).




45
D2 – Breakdown of net deferred tax assets by nature

2019 2018
(€ million)

Deferred taxes on:

Investments in associates and joint ventures excluding AVTOVAZ (1) (193) (181)

Fixed assets excluding AVTOVAZ (2,350) (2,044)

Provisions and other expenses or valuation allowances deductible upon utilization
815 750
excluding AVTOVAZ

Loss carryforwards excluding AVTOVAZ (2) 4,871 4,434

Other items excluding AVTOVAZ 783 764

Net deferred tax assets (liabilities) excluding AVTOVAZ 3,926 3,723

Fixed assets of AVTOVAZ (23) (16)

Provisions and other expenses or valuation allowances deductible upon utilization of
56 54
AVTOVAZ

Loss carryforwards of AVTOVAZ 327 294

Non-interest bearing financial liabilities in roubles of AVTOVAZ (43) (42)

Other items of AVTOVAZ 19 (12)

Net deferred tax assets (liabilities) of AVTOVAZ 336 278

Unrecognized deferred tax assets related to tax losses (note 8-D3) (4,023) (2,944)

Other unrecognized deferred tax assets (267) (240)

Net deferred tax assets (liabilities) reported (28) 817

(1) Including tax on future dividend distributions.
(2) Including €4,286 million for the French tax consolidation group entities and €585 million for other entities at December 31, 2019 (€3,864 million
and €570 million respectively at December 31, 2018).



The residual unrecognized deferred tax assets of entities included in the French tax consolidation group amounted to
€3,442 million (€2,344 million at December 31, 2018). They comprise tax losses that can be carried forward indefinitely to set
against future taxable income up to a limit of 50% of that income. €393 million of these unrecognized assets were generated by
items booked through shareholders’ equity (effects of the partial hedge of the investment in Nissan), and €3,049 million were
generated by items affecting the income statement (respectively €265 million and €2,079 million at December 31, 2018).
For entities not in the French tax consolidation group, unrecognized deferred tax assets totalled €848 million at December 31,
2019 (€840 million at December 31, 2018), including €34 million for AVTOVAZ (€82 million at December 31, 2018) and
€814 million for the Group excluding AVTOVAZ (€758 million at December 31, 2018) and principally comprise tax loss
carryforwards generated by the Group in Brazil, India, and to a lesser extent in Argentina.




46
D3 – Breakdown of deferred taxes on tax losses by expiry date
Unrecognized loss carryforwards represent a potential tax saving of €4,023 million at December 31, 2019.

December 31, 2019 December 31, 2018
(€ million)

Deferred taxes on: Recognized Unrecognized Total Recognized Unrecognized Total

Tax losses that can be carried forward indefinitely (1) 879 3,848 4,727 1,565 2,760 4,325

Tax losses expiring in more than 5 years - 29 29 5 53 58

Tax losses expiring in between 1 and 5 years 3 104 107 - 49 49

Tax losses expiring within 1 year - 8 8 2 - 2

Total deferred taxes on tax losses (excluding
AVTOVAZ) 882 3,989 4,871 1,572 2,862 4,434

Total deferred taxes on tax losses of AVTOVAZ 293 34 327 212 82 294

Total deferred taxes on tax losses of the Group 1,175 4,023 5,198 1,784 2,944 4,728

(1) Including recognized and unrecognized deferred taxes corresponding to tax loss carryforwards of entities included in the French tax
consolidation group, which amount to €842 million and €3,442 million respectively at December 31, 2019 and €1,520 million and
€2,344 million respectively at December 31, 2018 (note 8-D2).




47
NOTE 9 – BASIC AND DILUTED EARNINGS PER SHARE



2019 2018
(in thousands of shares)

295,722 295,722
Shares in circulation
(4,700) (6,490)
Treasury shares
(19,383) (19,382)
Shares held by Nissan x Renault’s share in Nissan
271,639 269,850
Number of shares used to calculate basic earnings per share

The number of shares used to calculate the basic earnings per share is the weighted average number of ordinary shares in
circulation during the period, i.e. after neutralization of treasury shares and Renault shares held by Nissan.



2019 2018
(in thousands of shares)

271,639 269,850
Number of shares used to calculate basic earnings per share
1,930 2,372
Dilutive effect of stock options, performance share rights and other share-based payments
273,569 272,222
Number of shares used to calculate diluted earnings per share


The number of shares used to calculate the diluted earnings per share is the weighted average number of ordinary shares
potentially in circulation during the period, i.e. the number of shares used to calculate the basic earnings per share plus the
number of stock options and rights to performance shares awarded under the relevant plans, that have a dilutive effect and fulfil
the performance conditions at the reporting date when issuance is conditional (note 18-G).




48
4.2.6.4 Operating assets and liabilities, shareholders’ equity

NOTE 10 – INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT


10 – A. Intangible assets and goodwill
A1 – Changes in intangible assets and goodwill
Changes in 2019 in intangible assets were as follows:

December Acquisitions / (Disposals) Translation Change in December
(€ million)
31, 2018 (amortization and / reversals adjustment scope of 31, 2019
impairment) consolidation
and other
Capitalized
development
expenses 9,671 1,985 (69) 14 12 11,613

Goodwill 996 - - 112 43 1,151

Other intangible
assets 1,044 101 (14) 23 6 1,160

Intangible assets,
gross 11,711 2,086 (83) 149 61 13,924

Capitalized
development
expenses (5,078) (1,123) 69 (2) - (6,134)

Goodwill (24) - - - (24)

Other intangible
assets (720) (109) 14 (2) - (817)

Amortization and
impairment (5,798) (1,256) 83 (4) - (6,975)

Capitalized
development
expenses 4,593 862 - 12 12 5,479

Goodwill 996 (24) - 112 43 1,127

Other intangible
assets 324 (8) - 21 6 343

Intangible assets,
net 5,913 830 - 145 61 6,949



Most goodwill is located in Europe and Eurasia.
Acquisitions of intangible assets in 2019 comprise €1,985 million of self-produced assets and €101 million of purchased assets
(respectively €1,717 million and €55 million in 2018).
In 2019, amortization and impairment of intangible assets include €206 million of impairment concerning vehicles (including
components), compared to €42 million of impairment in 2018 (note 6-B).
Changes in 2018 in intangible assets were as follows:

Gross value Amortization and Net value
(€ million)
impairment
Value at December 31, 2017 10,721 (5,481) 5,240

Acquisitions / (amortization and impairment) (1) 1,772 (950) 822

(Disposals) / reversals (623) 623 -

Translation adjustment (159) 10 (149)

Change in scope of consolidation and other - - -

Value at December 31, 2018 11,711 (5,798) 5,913

(1) Including impairment of €42 million concerning intangible assets.




49
A2 – Research and development expenses included in income

2019 2018
(€ million)

Research and development expenses (3,697) (3,516)

Capitalized development expenses 1,985 1,717

Amortization of capitalized development expenses (946) (799)

TOTAL INCLUDED IN INCOME (2,658) (2,598)

Research and development expenses are reported net of research tax credits for the vehicle development activity.
The rise in research and development expenses is explained by efforts to respond to new issues for connected, driverless and
electric vehicles, and ensure that engines comply with new regulations applicable, particularly in Europe. In addition to reflecting
this rise in development expenses, the increase in capitalized development expenses is also attributable to the start of the
capitalization phase for development expenses on significant programs, and resumption of capitalization of development
expenses concerning electric vehicles.




50
10 – B. Property, plant and equipment
Changes in 2019 in property, plant and equipment were as follows:

(€ million) December Acquisitions / (Disposals) / Translation Change in December 31,
31, 2018 (depreciation reversals adjustments scope of 2019
and consolidation
impairment) and other (1)

Land 571 12 (4) 2 73 654

Buildings 6,623 189 (50) 7 82 6,851

Specific tools 16,831 1,185 (227) (52) 249 17,986

Machinery and other tools 12,793 821 (287) (17) 318 13,628

Fixed assets leased to
3,734 1,752 (973) 15 - 4,528
customers

Other tangibles 914 70 (29) (2) 25 978

Right-of-use assets - 117 (1) 5 749 870

- Land - 3 - 1 10 14

- Buildings - 103 (1) 3 704 809

- Other assets - 11 - 1 35 47
(2)
Construction in progress 2,116 758 (1) 21 (391) 2,503

Gross value 43,582 4,904 (1,572) (21) 1,105 47,998

Land

Buildings (4,226) (259) 41 3 (23) (4,464)

Specific tools (14,240) (1,003) 225 27 (78) (15,069)

Machinery and other tools (9,069) (701) 270 16 (63) (9,547)

Fixed assets leased to
(831) (419) 282 (5) 5 (968)
customers

Other tangibles (912) (53) 18 69 (36) (914)

Right-of-use assets - (114) - - (22) (136)

- Land - (1) - - - (1)

- Buildings - (103) - - (15) (118)

- Other assets - (10) - - (7) (17)

Construction in progress - - - - - -

Depreciation and
impairment (3) (29,278) (2,549) 836 110 (217) (31,098)

Land 571 12 (4) 2 73 654

Buildings 2,397 (70) (9) 10 59 2,387

Specific tools 2,591 182 (2) (25) 171 2,917

Machinery and other tools 3,724 120 (17) (1) 255 4,081

Fixed assets leased to
2,903 1,333 (691) 10 5 3,560
customers

Other tangible 2 17 (11) 67 (11) 64

Right-of-use assets - 3 (1) 5 727 734

- Land - 2 - 1 10 13

- Buildings - - (1) 3 689 691

- Other assets - 1 - 1 28 30
(2)
Construction in progress 2,116 758 (1) 21 (391) 2,503

Net value 14,304 2,355 (736) 89 888 16,900

(2) Including right-of-use assets following first application of IFRS 16. Details of the impacts of this standard are given in note 2-A2.
(3) Items classified as “construction in progress” are transferred to completed asset categories via “acquisitions / (depreciatio n and
impairment)”.
(4) Depreciation and impairment in 2019 include impairment of €33 million, mainly concerning vehicles (including components) (see note 6-B).




51
Changes in property, plant and equipment in 2018 were as follows:

Gross value Depreciation Net value
(€ million)
and impairment
Value at December 31, 2017 41,343 (27,761) 13,582
(1)
Acquisitions / (depreciation and impairment) 4,029 (2,294) 1,735

(Disposals) / reversals (1,506) 697 (809)

Translation adjustments (656) 312 (344)
(2)
Change in scope of consolidation and other 372 (232) 140

Value at December 31, 2018 43,582 (29,278) 14,304

(1) Including €234 million of impairment on property, plant and equipment.
(2) This includes right-of-use assets resulting from first application of IFRS 16. Details of the impacts of this standard are given in note 2-A2.




52
NOTE 11 – IMPAIRMENT TESTS ON FIXED ASSETS (OTHER THAN LEASED ASSETS)
The Group carried out impairment tests on its fixed assets under the approach described in the section on accounting policies
(note 2-M).


11 – A. Impairment tests on vehicle-specific assets (including components)
Following impairment tests of specific assets dedicated to vehicles (including components), impairment of €239 million was
booked during 2019, comprising €206 million for intangible assets and €33 million for property, plant and equipment (impairment
in 2018 amounted to €126 million, comprising €63 million for intangible assets and €63 million for property, plant and equipment).
This impairment was allocated in priority to capitalized development expenses. It mainly concerns vehicles made for the Chinese
market, in view of the lower sales volumes and the downward revision of the prospects for those assets.
Impairment for intangibles and property, plant and equipment was recognized in 2013 in respect of electric vehicles. As the market
for electric vehicles grew substantially in 2018 and that trend was confirmed in 2019, residual impairment of €5 million on intangible
assets and €3 million on property, plant and equipment was reversed in 2019. Residual impairment of €38 million was reversed
during 2018 (€21 million for intangible assets and €17 million for property, plant and equipment).


11 – B. Impairment tests of country-specific assets or cash-generating units of the Automotive (excluding
AVTOVAZ) segment
Argentina, China and other countries:
In 2018, the cash-generating unit corresponding to Argentina was subjected to an impairment test following the application of
hyperinflationary accounting, and in view of the recession on the local automobile market in the second half-year.
An analysis of specific assets dedicated to the Chinese market (in the second half-year of 2019), the Turkish market (in the
second half-year of 2018) and the Iranian market was also conducted following the significant decline in automobile sales in China
and Turkey and the suspension of Renault’s activities in Iran (see note 6-C).
The tests performed in 2018 for the Argentina cash-generating unit led to recognition of impairment on its assets amounting to
€188 million at December 31, 2018 (i.e. the total value of the industrial assets). No impairment was booked at January 1, 2018.
The test conducted in 2019 on specific assets dedicated to the Chinese market led to recognition of impairment as described in
note 11-A above, and impairment on investments in joint ventures operating on the Chinese market (see note 13).
In 2018, no impairment was recognized on intangibles and property, plant and equipment dedicated to the Iranian and Turkish
markets as a result of the impairment tests conducted.
Automotive (excluding AVTOVAZ) segment:
The recoverable value used for the purpose of impairment tests for the Automotive (excluding AVTOVAZ) segment is the value
in use, determined under the discounted future cash flow method on the basis of the following assumptions:

2019 2018
Growth rate to infinity 1.7% 1.9%

After-tax discount rate 8.5% 8.7%



The assumptions used for impairment testing at December 31, 2019 are taken from the six-year strategic plan, Drive the Future
2017-2022, which was announced in October 2017. These assumptions were updated using data from the 2020 budget and
Renault’s best estimate of trends in results for 2021 and 2022, which will be affected by adverse market conditions. The revision
of the strategic plan, which was still in process at the year-end, will be finalized during 2020.
In 2019 as in 2018, no impairment was recognized on assets included in the Automotive (excluding AVTOVAZ) segment as a
result of the impairment test.
A reasonably possible change in the main assumptions used should not result in a recoverable value that is lower than the book
value of the assets tested.



11 – C. Impairment tests on the AVTOVAZ cash-generating unit and the Lada brand
Impairment tests of the AVTOVAZ cash-generating unit
AVTOVAZ was delisted from the Moscow stock exchange in May 2019, and consequently reference is no longer made to its
market capitalization to assess the recoverable value of its net assets (including goodwill).

In application of the approach presented in the note on accounting policies (note 2-M to the consolidated financial statements for
2018), an impairment test was conducted at June 30, 2019 but no impairment was recognized at that date as a result. A further
test was conducted at December 31, 2019 due to the decline of the Russian market. The annual impairment test will now be
conducted at 31 December every year.




53
For the impairment test of the AVTOVAZ cash-generating unit, an after-tax discount rate of 14% and a growth rate to infinity
(including the effect of inflation) of 4% were used to calculate value in use.

The test results did not lead to recognition of any impairment at December 31, 2019. A reasonably possible change in the key
assumptions used should not result in a recoverable value that is below book values.

Impairment tests of the Lada brand
For the purpose of allocation of the purchase price of AVTOVAZ, the Lada brand was recognized at its fair value at the date
control was acquired (in late 2016), i.e. 9,248 million Russian roubles (€132 million at the exchange rate of December 31, 2019).
Since this brand is an intangible asset with an indefinite useful life, an impairment test was carried out at December 31, 2019
based on a discount rate of 14% and a growth rate to infinity of 4%. No impairment was booked in 2019, as the recoverable value
was higher than the book value.
A reasonably possible change in the key assumptions used should not result in a recoverable value that is below the book value.
The annual impairment test will now be conducted at 31 December every year




54
NOTE 12 – INVESTMENT IN NISSAN

Renault’s investment in Nissan in the income statement and financial position:

(€ million) 2019 2018

Consolidated income statement
Share in net income (loss) of associates accounted for by the equity
242 1,509
method

Consolidated financial position

Investments in associates accounted for by the equity method 20,622 20,583




12 – A. Nissan consolidation method
Renault and the Japanese automaker Nissan have developed an alliance between two distinct companies with common interests,
uniting forces to achieve optimum performance. The Alliance is organized so as to preserve individual brand identities and respect
each company’s corporate culture.
Consequently:
• Renault is not assured of holding the majority of voting rights in Nissan’s Shareholders’ Meeting.
• The terms of the Renault-Nissan agreements do not entitle Renault to appoint the majority of Nissan directors, nor to hold
the majority of voting rights at meetings of Nissan’s Board of Directors; Renault cannot unilaterally appoint the President
of Nissan.
• In March 2019, Renault, Nissan and Mitsubishi announced the creation of the new Alliance Board, a supervisory body to
oversee Alliance operations and governance involving Renault, Nissan and Mitsubishi. This Board has four members:
The Chairman of the Board of Renault, the Chief Executive Officer of Renault, the Chief Executive Officer of Nissan and
the Chief Executive Officer of Mitsubishi Motors. Decisions are taken by consensus. In November 2019, the Board added
the post of Alliance General Secretary, who reports to the Alliance Board and the CEOs of the three alliance companies.
• At December 31, 2019, the Renault Group occupied two seats on Nissan’s Board of Directors and was represented by
Jean-Dominique Senard, Chairman of the Renault Board. The appointment of Pierre Fleuriot to replace Thierry Bolloré
will be put to the vote at the next extraordinary general shareholders’ meeting to be held on February 18, 2020. Pierre
Fleuriot is the senior independent director in the Renault Group.
• Renault can neither use nor influence the use of Nissan’s assets in the same way as its own assets.
• Renault provides no guarantees in respect of Nissan’s debt.
In view of this situation, Renault is considered to exercise significant influence over Nissan, and therefore uses the equity method
to include its investment in Nissan in the consolidation.


12 – B. Nissan consolidated financial statements included under the equity method in the Renault
consolidation
The Nissan accounts included under the equity method in Renault’s financial statements are Nissan’s consolidated accounts
published in compliance with Japanese accounting standards (as Nissan is listed on the Tokyo Stock Exchange), after
adjustments for the requirements of the Renault consolidation.
Nissan publishes consolidated financial statements quarterly, and annually at March 31. For the purposes of the Renault
consolidation, Nissan results are included in line with the Renault calendar (the results for the period January to December are
consolidated in Renault’s annual financial statements).
Nissan held 0.7% of its own treasury shares at December 31, 2019 (0,7% at December 31, 2018). Consequently, Renault’s
percentage interest in Nissan is 43.7% (43.7% at December 31, 2018). Renault holds 43.7% of voting rights in Nissan at
September 30, 2019 (43.7% at September 30, 2018).




55
12 – C. Changes in the investment in Nissan as shown in Renault’s statement of financial position

Share in net assets
(€ million)

Before Neutralization Net
neutralization proportional to Goodwill Total
Nissan’s
investment in
Renault (1)
At December 31, 2018 20,822 (974) 19,848 735 20,583

2019 net income 242 242 242

Dividend distributed (579) (579) (579)

Translation adjustment 353 353 24 377

Other changes (2) (1) (1) (1)

At December 31, 2019 20,837 (974) 19,863 759 20,622

(1) Nissan has held 44,358,000 Renault shares since 2002, corresponding to an investment of around 15%. The neutralization is based on
Renault’s percentage holding in Nissan.
(2) Other changes include the effect of Renault dividends received by Nissan, the change in actuarial gains and losses on pension obligations,
the change in the financial instruments revaluation reserve and the change in Nissan treasury shares.




12 – D. Changes in Nissan equity restated for the purposes of the Renault consolidation

December 2019 net Dividends Translation Other December
31, 2018 income adjustment changes (1) 31, 2019


(¥ billion)
Shareholders' equity – Parent-company
shareholders’ share under Japanese
GAAP 5,338 42 (151) (117) (61) 5,051

Restatements for compliance with IFRS:
Provision for pension and other long-term
employee benefit obligations (65) (14) 1 51 (27)

Capitalization of development expenses 712 41 (1) 752

Deferred taxes and other restatements (99) 4 (10) (17) (122)

Net assets restated for compliance with
IFRS 5,886 73 (151) (127) (27) 5,654

Restatements for Renault Group
requirements (2) 111 (6) (10) 41 25 161

Net assets restated for Renault Group
requirements 5,997 67 (161) (86) (2) 5,815

(€ million)

Net assets restated for Renault Group
requirements 47,650 554 (1,325) 808 - 47,687
Renault’s percentage interest 43.7 % 43.7 %

Renault's share (before neutralization effect
described below) 20,822 242 (579) 353 (1) 20,837

Neutralization of Nissan’s investment in
Renault (3) (974) (974)

Renault's share in the net assets of
Nissan 19,848 242 (579) 353 (1) 19,863

(1) Other changes include the effect of Renault dividends received by Nissan, the change in actuarial gains and losses on pension obligations,
the change in the financial instruments revaluation reserve and the change in Nissan treasury shares. In 2019, they also include the impacts
of the first application of IFRS 16 (€(16) million) and IFRIC 23 (€(37) million).
(2) Restatements for Renault Group requirements essentially correspond to revaluation of fixed assets by Renault for the acquisitions undertaken
between 1999 and 2002, and elimination of Nissan’s investment in Renault accounted for under the equity method.
(3) Nissan has held 44,358 thousand Renault shares in Renault since 2002, an ownership interest of about 15%. The neutralization is based on Renault’s
percentage holding in Nissan.




56
12 – E. Nissan net income under Japanese GAAP
Since Nissan’s financial year ends at March 31, the Nissan net income included in the 2019 Renault consolidation is the sum of
Nissan’s net income for the final quarter of its 2018 financial year and the first three quarters of its 2019 financial year.

January to March April to June 2019 July to September October to January to
2019 2019 December 2019 December 2019
Fourth quarter of First quarter of Second quarter of Third quarter of Reference period for
Nissan’s 2018 Nissan’s 2019 Nissan’s 2019 Nissan’s Renault’s 2019
financial year financial year financial year 2019financial year consolidated
financial statements

(¥ billion) (€ million) (1) (¥ billion) (€ million) (1) (¥ billion) (€ million) (1) (¥ billion) (€ million) (1) (¥ billion) (€ million) (1)

2 20 7 52 59 495 (26) (217) 42 350
Net income –
Parent-
company
shareholders’
share

(1) Converted at the average exchange rate for each quarter.




12 – F. Nissan financial information under IFRS
The table below presents Nissan financial information, restated under IFRS for the purposes of the Renault consolidation, for the
years 2018 and 2017. 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.




57
2019 2018
(1)
(€ million) (2)
(¥ billion) (€ million) (¥ billion)

Revenues 10,316 84,520 11,764 90,201

Net income

Parent-company
shareholders’ share 85 698 451 3,458

Non-controlling interests’
share (14) (115) 20 151

Other components of
comprehensive income

Parent-company
shareholders’ share (154) (1,264) (220) (1,688)

Non-controlling interests’
share 23 185 31 237

Comprehensive income

Parent-company
shareholders’ share (69) (566) 231 1,771

Non-controlling interests’
share 9 70 51 388

Dividends received from Nissan 71 579 101 784

December 31, 2019 December 31, 2018
(1)
(€ million) (2)
(¥ billion) (€ million) (¥ billion)

Non-current assets 7,877 64,597 7,886 62,664

Current assets 11,186 91,734 11,797 93,736

TOTAL ASSETS 19,063 156,331 19,683 156,400

Shareholders’ equity

Parent-company
shareholders’ share 5,655 46,378 5,887 46,775

Non-controlling interests’
share 364 2,984 297 2 359

Non-current liabilities 5,345 43,828 5,874 46 675

Current liabilities 7,699 63,142 7,625 60,591

TOTAL SHAREHOLDERS’
EQUITY AND LIABILITIES 19,063 156,331 19,683 156,400

(1) 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 position items.
(2) Converted at the average exchange rate for 2018 i.e.130.4 JPY = 1 EUR for income statement items, and at the December 31, 2018 rate i.e.
125.8 JPY = 1 EUR for financial position items.



12 – G. Hedging of the investment in Nissan
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, 2019, the corresponding hedging operations totalled ¥84 billion (€689 million) of private placements in bonds
issued directly in yen on the Japanese Samurai bond market.
During 2019, these operations generated unfavourable foreign exchange differences of €(70) million (unfavourable difference of
€(102) million in 2018). The net unfavourable effect of €(157) million after deferred taxes (including the effect of non-recognition
as described in note 8) is recorded in the Group’s translation adjustment reserve (note 18-E).


12 – H. Valuation of Renault’s investment in Nissan at stock market prices
Based on the quoted price at December 31, 2019 of ¥636 per share, Renault’s investment in Nissan is valued at €9,554 million
(€12,809 million at December 31, 2018 based on the price of ¥880 per share).




58
12 – I. Impairment test of the investment in Nissan
At December 31, 2019, the stock market value of the investment was 53.7% lower than the value of Nissan in Renault’s statement
of financial position (37.8% at December 31, 2018).
In application of the approach presented in the note on accounting policies (note 2-M), 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 results did not lead to recognition of any impairment on the investment in Nissan at December 31, 2019.
A reasonably possible change in the main assumptions used should not result in a recoverable value that is lower than the book
value of the investment in Nissan.



12 – J. Operations between the Renault Group and the Nissan Group
J1 – Automotive (excluding AVTOVAZ) and Sales Financing
Renault and Nissan follow joint strategies for vehicle and component development, purchasing, production and distribution
resources. Since April 1, 2014 the two companies have also been engaged in a convergence project for four key functions:
Engineering, Manufacturing and Supply Chain Management, Purchasing and Human Resources. This cooperation is reflected in
synergies that reduce costs, particularly in the support functions and sales to Nissan.
The Automotive (excluding AVTOVAZ) segment is involved in operations with Nissan on two levels:
• Industrial production: cross-over production of vehicles and components in the Alliance’s manufacturing plants:

- Sales by the Renault Group to the Nissan group in 2019 totalled approximately €3,374million (€4,162 million in 2018),
comprising around €2,272 million for vehicles (€2,871 million in 2018), €985 million for components (€1,169 million in
2018), and €117 million for services (€123 million in 2018). The decrease is mainly driven by sales of vehicles made by
Renault Samsung Motors for Nissan North America, and the Nissan Micra made in Flins, France,

- Purchases by the Renault Group from the Nissan group in 2019 totalled approximately €1,896 million (€2,184 million
in 2018), comprising around €1,046 million of vehicles (€1,068 million in 2018), €655 million of components
(€884 million in 2018), and €195 million of services (€223 million in 2018),

- The balance of Renault Group receivables on the Nissan group is €521 million at December 31, 2019 (€859 million at
December 31, 2018) and the balance of Renault Group liabilities to the Nissan group is €738 million at December 31,
2019 (€872 million at December 31, 2018).

• Finance: In addition to its activity for Renault, Renault Finance acts as the Nissan group’s counterparty in financial
instruments trading to hedge foreign exchange and interest rate risks. Renault Finance undertook approximately €17 billion
of forex transactions on the foreign exchange market for Nissan in 2019 (€18 billion in 2018). Operations undertaken with
Nissan on foreign exchange and interest rate derivatives are recorded at market price and included in the positions managed
by Renault Finance. In the balance sheet, the derivative assets on the Nissan group amount to €26 million at December 31,
2019 (€30 million at December 31, 2019) and derivative liabilities amount to €4 million at December 31, 2019 (€69 million at
December 31, 2018).


Renault’s Sales Financing segment helps to attract customers and build loyalty to Nissan brands through a range of financing
products and services incorporated into the sales policy, principally in Europe. In 2019, RCI Banque recorded €148 million of
service revenues in the form of commission and interest received from Nissan (€158 million in 2018). The balance of sales
financing receivables on the Nissan group is €86 million at December 31, 2019 (€133 million at December 31, 2018) and the
balance of liabilities is €184 million at December 31, 2019 (€148 million at December 31, 2018).
The Alliance partners hold investments in associates and joint ventures that manage their cooperation. Details of these entities’
activity and location, and the Renault Group’s influence over them, are given in note 13.

J2 – AVTOVAZ
In 2019, total sales by AVTOVAZ to Nissan and purchases by AVTOVAZ from Nissan amounted to an estimated €118 million
and €23 million respectively (€260 million and €35 million in 2018).
In the AVTOVAZ financial position at December 31, 2019, the balances of transactions between AVTOVAZ and the Nissan Group
consist mainly of:
- a non-current receivable for jointly controlled assets amounting to €25 million (€27 million at December 31, 2018),
- operating receivables and payables amounting respectively to €0 million and €18 million (€12 million and €37 million at
December 31, 2018).




59
NOTE 13 – INVESTMENTS IN OTHER ASSOCIATES AND JOINT VENTURES
Details of investments in other associates and joint ventures are as follows in the Group’s financial statements:

(€ million)
2019 2018
Consolidated income statement
Share in net income (loss) of other associates and joint ventures (432) 31
Associates accounted for under the equity method 43 27
Joint ventures accounted for under the equity method (475) 4
Consolidated financial position

Investments in other associates and joint ventures 610 856
Associates accounted for under the equity method 479 420
Joint ventures accounted for under the equity method 131 436

(1) The loss recorded in 2019 principally corresponds to impairment of investments in joint ventures accounted for under the equity
method: Dongfeng Renault Automotive Company and Renault Brilliance Jinbei Automotive Company (note 13-C).




60
13 – A. Information on the principal other associates and joint ventures accounted for under the equity
method

Percentage ownership and Investments in Investments in
voting rights held by the other associates other associates
Group and joint and joint
Country ventures at ventures at
December 31, December 31,
of December 31, December 31,
2019 2018
Name Main activity
location 2019 2018
Associates
Automotive (excluding AVTOVAZ)
Motorlu Araclar
Imal ve Satis A.S
(MAIS) Turkey Automotive sales 49% 49% 59 34
Renault Nissan
Automotive India
Private Limited Vehicle
(RNAIPL) India manufacturing 30% 30% 210 206
Sales Financing
Automotive sales
financing
RN Bank Russia 30% 30% 84 63
Joint ventures
Automotive (excluding AVTOVAZ)
Renault Algérie Vehicle
Production Algeria manufacturing 49% 49% 22 8
Dongfeng Renault
Automotive
Company China Automaker 50% 50% - 260
Renault Brilliance Commercial vehicle
Jinbei Automotive manufacturing in
Company China China 49% 49% - 74
Alliance Ventures Finance for new
b.v. Netherlands technology start-ups 40% 40% 61 51
Alliance Mobility
Company Japan Driverless vehicle
(1)
and mobility services
Japan 50% 3
Alliance Mobility
Company France Driverless vehicle
(1)
France and mobility services 50% 4
Other non-
significant
associates and
joint ventures 167 160
TOTAL 610 856

(1) Newly consolidated companies in 2019.




61
The tables below show the total amount of sales and purchases made between the Renault Group and the principal other
associates and joint ventures accounted for by the equity method, as well as the Renault Group's balance sheet positions with
those entities.

2019 2018
(€ million)
Sales to other Sales to other
In the consolidated income statement associates and associates and
joint ventures Purchases joint ventures Purchases
Motorlu Araclar Imal ve Satis A.S (MAIS) 817 (2) 1,261 12
Renault Nissan Automotive India Private Limited (RNAIPL) 6 (406) 3 (357)
RN Bank - (11) (3) -
Renault Algérie Production 3 (125) 9 (102)
Dongfeng Renault Automotive Company 67 (30) 206 (7)



December 31, 2019
(€ million)
Sales
In the consolidated financial position Financial Automotive Other Financing Trade Other
assets receivables assets debts payables liabilities
Motorlu Araclar Imal ve Satis A.S (MAIS) - - - - 5 -
Renault Nissan Automotive India Private Limited (RNAIPL) 20 53 201 - 68 -
RN Bank 60 - - - - 1
Renault Algérie Production - 40 - - 114 5
Dongfeng Renault Automotive Company - 20 - - 24 3


December 31, 2018
(€ million)
Sales
In the consolidated financial position Financial Automotive Other Financing Trade Other
assets receivables assets debts payables liabilities
Motorlu Araclar Imal ve Satis A.S (MAIS) - - - - 25 4
Renault Nissan Automotive India Private Limited (RNAIPL) 18 54 402 - 57 3
RN Bank 80 - 2 3 - 3
Renault Algérie Production - 86 - - 115 3
Dongfeng Renault Automotive Company - 9 - - 9 3



13 – B. Cumulative financial information on other associates accounted for under the equity method

December 31, 2019 December 31, 2018
(€ million)

Investments in associates 479 420

Share in income (loss) of associates 43 27

Share of associates in other components of comprehensive income 1 (29)

Share of associates in comprehensive income 44 (2)



13 – C. Cumulative financial information on joint ventures accounted for under the equity method

December 31, 2019 December 31, 2018
(€ million)

Investments in joint ventures 131 436
(1)
Share in income (loss) of joint ventures (475) 4

Share of joint ventures in other components of comprehensive income 4 (7)

Share of joint ventures in comprehensive income (471) (3)

(1) Including €(466) million of share in income (loss) and impairment on the investments in the joint ventures Dongfeng Renault Automotive
Company and Renault Brilliance Jinbei Automotive Company (including a financial liability of €63 million (RMB 490 million) in connection with
the capital increase by Renault Brilliance Jinbei Automotive Company which took place in early January 2020 and for which the Renault Group
was committed at December 31, 2019).




62
NOTE 14 – INVENTORIES

December 31, 2019 December 31, 2018
(€ million)

Gross Gross
Impairment Net value Impairment Net value
value value
Raw materials and supplies 1,724 (290) 1,434 1,748 (299) 1,449
Work in progress 330 (7) 323 395 (3) 392
Used vehicles 1,465 (141) 1,324 1,383 (126) 1,257
Finished products and spare parts 2,842 (143) 2,699 2,931 (150) 2,781
TOTAL 6,361 (581) 5,780 6,457 (578) 5,879




63
NOTE 15 – SALES FINANCING RECEIVABLES
15 – A. Sales financing receivables by nature

December 31, 2019 December 31, 2018
(€ million)

Dealership receivables 10,901 10,233

Financing for end-customers 25,016 23,606

Leasing and similar operations 10,305 9,008

Gross value 46,222 42,847

Impairment (848) (780)

Net value 45,374 42,067

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



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


December 31, 2019 December 31, 2018
(€ million)

Balance sheet Fair value Balance sheet Fair value
value value
Assigned receivables carried in the balance
10,508 10,504 11,010 10,980
sheet

Associated liabilities 3,243 3,264 2,781 2,645

The Sales Financing segment has undertaken several public securitization operations and several conduit financing operations
(in Germany, Brazil, France, the United Kingdom and Italy) 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.
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.


B2 – Assets pledged as guarantees for management of the 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 (Gestion Globale des Garanties) in the form of assets with book value of
€5,882 million at December 31, 2019 (€7,454 million at December 31, 2018). These guarantees comprise €5,325 million in the
form of shares in securitization vehicles, €151 million in euro bonds and €406 million in sales financing receivables (€6,184 million
of shares in securitization vehicles, €159 million in euro bonds and €1,111 million in sales financing receivables at December 31,
2018). The funding provided by the Banque de France against these guarantees amounts to €2,700 million at December 31,
2019 (€2,500 million at December 31, 2018. All assets provided as guarantees to the Banque de France remain in the balance
sheet.


15 – C. Sales financing receivables by maturity

December 31, 2019 December 31, 2018
(€ million)

- 1 year 23,174 21,184

1 to 5 years 21,675 20,403

+ 5 years 525 480

Total sales financing receivables – net 45,374 42,067




64
15 – D. Breakdown of sales financing receivables by level of risk
Financing for December
(€ million) final customers Dealer financing 31, 2019
Gross value 35,321 10,901 46,222
Healthy receivables 31,690 10,527 42,217
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% 0.7% 1.5%

Impairment (747) (101) (848)
(
Impairment in respect of healthy receivables (94) (57) 151)
Impairment in respect of receivables showing higher credit risk since initial (
recognition (167) (10) 177)
(
Impairment in respect of receivables in default (486) (34) 520)
Total net value (*) 34,574 10,800 45,374

Financing for December 31,
(€ million) final customers Dealer financing 2018
Gross value 32,614 10,233 42,847
Healthy receivables 28,754 9,705 38,454
Receivables showing higher credit risk since initial recognition 3,324 445 3,770
Receivables in default 536 83 623
% of total receivables in default 1.6% 0.8% 1.5%
Impairment (670) (110) (780)
Impairment in respect of healthy receivables (93) (69) (239)
Impairment in respect of receivables showing higher credit risk since initial
recognition (154) (10) (163)
Impairment in respect of receivables in default (423) (31) (378)
Total net value (*) 31,944 10,123 42,067



15 – E. Exposure of sales financing to credit risk
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 €821 million at December 31, 2019 (€678 million at December 31, 2018).
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.




65
NOTE 16 – AUTOMOTIVE RECEIVABLES
Net value of Automotive receivables


December 31, 2019 December 31, 2018
(€ million)

Gross value 2,073 2,178
(1)
Impairment for incurred credit losses (807) (770)

Impairment for expected credit losses (8) (9)

AUTOMOTIVE RECEIVABLES – NET VALUE 1,258 1,399

(1) Including €(674) million related to Iran at December 31, 2019.



These receivables do not include accounts receivable assigned to the Group’s sales financing companies or other non-Group
entities when substantially all the risks and benefits associated with ownership of the receivables are transferred. The risk of
dilution (essentially the risks of non-settlement after a commercial dispute) is retained by the Group, but is considered negligible.
Receivables assigned in this way to Group sales financing companies are included in sales financing receivables, principally
dealership receivables.
There is also no significant concentration of risks in the Automotive customer base (excluding AVTOAZ and with AVTOVAZ), and
no single non-Group customer accounts for more than 10% of the total sales revenues of the Automotive segments.
The management policy for credit risk is described in note 25.
The maximum exposure to credit risk for Automotive (excluding AVTOVAZ) receivables is represented by the net book value of
those receivables.
The impairment model for Automotive receivables is presented in notes and 2-G.
Details of fair value are given in note 24-A.




66
NOTE 17 – OTHER CURRENT AND NON-CURRENT ASSETS


December 31, 2019 December 31, 2018
(€ million)


Non- Current Total Non- Current Total
current current
Prepaid expenses 179 456 635 245 368 613

Tax receivables (excluding current taxes due) 314 1,884 2,198 465 1,712 2,177

Tax receivables (on current taxes due) 21 86 107 19 111 130

Other receivables 605 1,555 2,160 603 1,566 2,169
(1)
Investments in controlled unconsolidated entities 105 - 105 153 - 153

Derivatives on operating transactions of the Automotive
- 10 10 - 10 10
segments

Derivatives on financing transactions of the Sales Financing
- 177 177 - 123 123
segment

TOTAL 1,224 4,168 5,392 1,485 3,890 5,375

Gross value 1,361 4,370 5,731 1,613 4,082 5,695

Impairment (137) (202) (339) (128) (192) (320)

(1) Investments of over €10 million in controlled unconsolidated entities concern iCabbi.



Investments in controlled unconsolidated entities
Controlled unconsolidated entities include Flit Tech (a taxi reservation platform), iCabbi (software development for taxis) and
Marcel (a private car hire app). The financial statements of these entities are not fully consolidated at December 31, 2019 because
their consolidation would not have a significant impact given the thresholds applied by the Group. However, their contribution to
the Group's results, amounting to €(56) million in 2019 (€(29) million in 2018), is included in the cost of goods and services sold.
The most significant entities will be fully consolidated in 2020. As these entities were transferred in December 2019 to the new
company Renault M.A.I (see note 3-A), they will no longer be part of the Sales financing segment from January 1, 2020.




67
NOTE 18 – SHAREHOLDERS’ EQUITY
18 – A. Share capital
The total number of ordinary shares issued and fully paid at December 31, 2019 is 295,722 thousand, with par value of €3.81 per
share (unchanged since December 31, 2018).
Treasury shares do not bear dividends. They account for 1.54% of Renault’s share capital at December 31, 2019 (1.71% at
December 31, 2018).
The Nissan Group holds approximately 15% of Renault through its wholly-owned subsidiary Nissan Finance Co. Ltd (no voting
rights are attached to these shares).


18 – B. Capital management
In managing its capital, the Group’s objective is to guarantee continuity of business in order to provide returns for shareholders
and benefits for other stakeholders, and to maintain optimum capital structure in order to optimize its cost. The Group may adjust
dividend payments to shareholders, redeem some of the capital or issue new shares.
The Group’s objectives are monitored in different ways in the different operating segments.
The Sales Financing segment must comply with regulatory ratios specific to banking operations. The minimum solvency ratio
(shareholders’ equity including subordinated loans to total weighted risks) is 8%. RCI Banque’s Core Tier 1 solvency ratio is
14.41% at December 31, 2019 (15.46% at December 31, 2018).
The Group also partially hedges its investment in Nissan (notes 12-G and 25-B2).


18 – C. Renault treasury shares
In accordance with decisions approved at General Shareholders’ Meetings, the Board of Directors decided to allocate all Renault
treasury shares to current stock option and performance share plans and other share-based payment agreements awarded to
Group managers and executives.


December 31, 2019 December 31, 2018
Total value of treasury plans (€ million) 344 400

Total number of treasury shares 4,548,736 5,058,961




18 – D. Distributions

At the General and Extraordinary Shareholders’ Meeting of June 12, 2019, it was decided to distribute a dividend of €3.55 per
share giving a total amount of €1,035 million (€3.55 per share or a total of €1,027 million in 2018). This dividend was paid in June
2019.


18 – E. Translation adjustment
The change in translation adjustment over the year is analyzed as follows:

2019 2018
(€ million)

Change in translation adjustment on the value of the investment in Nissan 401 997

Impact, net of tax, of partial hedging of the investment in Nissan (note 12-G) (157) (70)

TOTAL CHANGE IN TRANSLATION ADJUSTMENT RELATED TO NISSAN 244 927

Changes related to hyperinflationary economies (99) (175)

Other changes in translation adjustment 125 (250)

TOTAL CHANGE IN TRANSLATION ADJUSTMENT 270 502


Changes related to hyperinflationary economies consist of changes in the translation adjustment attributable to the Argentinian
subsidiaries since January 1, 2018. In 2019, other changes in the translation adjustment mostly resulted from movements in the
Russian rouble and the Romanian leu.




68
18 – F. Financial instrument revaluation reserve
F1 – Change in the financial instrument revaluation reserve
The figures below are reported net of tax effects.

Equity Debt
Cash flow instruments instruments
hedges (1) at fair value at fair value Total
(€ million)
At December 31, 2018 (21) 253 3 235
(2)


Changes in fair value recorded in shareholders’ equity (76) 57 1 (18)
(1)
Transfer from shareholders’ equity to profit and loss 10 - (1) 9
Other - - - -
At December 31, 2019 (87) 310 3 226

(1) For a breakdown of the amounts related to cash flow hedges transferred from shareholders’ equity to profit and loss, see note F2 below,
and for the schedule of amounts related to cash flow hedges transferred from shareholder’s equity to the income statement, see note F3
below.
(2) The revaluation reserve for equity instruments at fair value mainly relates to the Daimler shares (note 22-B).



F2 – Breakdown of the amounts related to cash flow hedges transferred from the financial instrument revaluation
reserve to the income statement

2019 2018
(€ million)

Operating margin 14 7

Other operating income and expenses - 1

Net financial income (expense) - -

Share in net income of associates and joint ventures - -

Current and deferred taxes (4) (2)
Total transferred to the income statement for cash flow hedges 10 6



F3 – Schedule of amounts related to cash flow hedges transferred from the financial instruments revaluation reserve
to the income statement

December 31, 2019 December 31, 2018
(€ million)

Within one year - (6)

After one year (24) (9)

Revaluation reserve for cash flow hedges excluding associates and joint ventures (24) (15)

Revaluation reserve for cash flow hedges – associates and joint ventures (63) (6)

Total revaluation reserve for cash flow hedges (87) (21)

This schedule is based on the contractual maturities of hedged cash flows.


18 – G. Stock option and performance share plans and other share-based payments
The Board of Directors periodically awards performance shares to Group executives and managers, with prices and exercise
periods specific to each plan. Until 2012, it also periodically granted stock options, each with their own vesting and required
holding periods. All plans include performance conditions which determine the number of options or performance shares granted
to beneficiaries. Loss of the benefit of stock options or performance shares follows the applicable regulations: all options and
rights are forfeited in the event of resignation or termination and a decision is made for each individual case when an employee
leaves at the Company’s instigation.
New performance share plans were introduced in 2019, concerning 1,462 thousand shares with initial total value of €50 million.
The vesting period for rights to shares is 3 years, with no minimum holding period.




69
Share-based payments have been valued by the methods described in the accounting policies (note 2-R). The main details are
as follows:



Initial Share
Unit Expense Expense Dividend
value price at Interest Exercise Duration of
Plan fair for 2019 for 2018 Volatility per share
(thousands grant rate price (€) option
value (€ million) (€ million) (€)
of €) date (€)

Plan 18 3,422 9.31 - - 36.70 37.28% 2.28% 38.80 4-8 years 0.30 – 1.16

Plan 19 1,608 5.36 - - 27.50 42.24% 1.99% 26.87 4-8 years 1.19 – 1.72

Plan 20 2,708 6.87 - - 40.39 35% 0.71% 37.43 4-8 years 1.57 – 2.19

66.51
51,509 78.75 N/A (0.10)% N/A 3-5 years 1.90 – 2.22
- (10)
Plan 22 (1)
19,138 76.58 N/A (0.03)% N/A 4 years 1.90 – 2.22
65.19 5 (7)

66.38
53,728 80.25 N/A (0.48)% N/A 3-4 years 2.40 – 2.88
(20) (18)
Plan 23 (1)
19,929 76.16 N/A (0.48)% N/A 4 years 2.40 – 2.88
65.72 (7) (5)
bis
Plan 23 5,348 65.34 3 (1) 76.99 N/A (0.48)% N/A 4 years 2.40 – 2.88

66.18
53,646 N/A (0.56)% N/A 3-4 years 3.15 – 3.34
(31) (18)
Plan 24 (1) 82.79
22,167 N/A (0.57)% N/A 4 years 3.15 – 3.34
66.16 (4) (6)

63 533 73.37 (23) (19) 90.64 N/A (0.57)% N/A 3-4 years 3.55 – 4.25
Plan 25 (1)
23 096 69.73 (2) (5) 88.93 N/A (0.57)% N/A 4 years 3.55 – 4.25

Plan 26 49,618 42.50 (10) - 54.99 N/A - N/A 3 years 3.55 – 3.50

TOTAL (89) (89)

(1) For these plans, performance shares were awarded at different dates within the stated period. The figures also include shares awarded as part of
the variable remuneration for the post of Chairman and CEO until January 23, 2019. The information reported may correspond to weighted
averages based on quantities awarded per grant date.



G1 – Changes in the number of stock options and share rights held by personnel and other share-based payments

Stock options Share rights

Weighted
average share
Weighted average
Quantity price at grant Quantity
exercise price (€)
and exercise
dates (€)
Options outstanding and rights not yet vested at
248,774 36 - 4,714,171
January 1, 2019

Granted - - - 1,462,030

(95,787) (1) 49 (2) (1,214,438) (3)
Options exercised or vested rights 35
(1)
(618,434) (4)
Options and rights expired and other adjustments 36 -
(50,000)

Options outstanding and rights not yet vested at
102,987 37 - 4,343,329
December 31, 2019

(1) Stock options exercised or expired in 2019 were granted under plans 18 and 19 in 2011 and plan 20 in 2012.
(2) Price at which the shares were acquired by the Group to cover future options.
(3) Performance shares vested were mainly awarded under plan 22 for non-residents in 2015 and plan 23 for residents in 2016.
(4) Rights expired notably include 455,658 share rights of the resigning Chairman and Chief Executive Officer.




70
G2 – Stock options
For plans current in 2019, options attributed vest after a period of 4 four years the exercise period then covers the following four
years:

Options
Exercise outstanding
Plan Type of plan Grant date Exercise period
price (€) at December
31, 2019
Stock purchase
Plan 18 April 29, 2011 38.80 - April 30, 2015 – April 28, 2019
options

Stock purchase
Plan 19 December 8, 2011 26.87 - December 9, 2015 – December 7, 2019
options

Stock purchase December 13, 2016 – December 12,
Plan 20 December 13, 2012 37.43 102,987
options 2020

TOTAL 102,987




G3 – Performance share plan and other share-based payment agreements
For plans 22 to 25, vesting and minimum holding periods are different depending on whether beneficiaries are French tax
residents or tax residents of other countries, in order to take account of local tax constraints.

The vesting period for shares awarded to French tax residents is three years followed by a holding period of one year (two years
for plan 22).
For non-French tax residents, the vesting period is four years and there is no minimum holding period.
As from plan 26, the vesting period is 3 years with no holding period for French or foreign tax residents.

Share rights awarded
Plan Type of plan Grant date Vesting date Holding period
at December 31, 2019

Plan 22 Performance shares February 11, 2015 February 11, 2019 None
- (1)

April 29, 2019 – April
- (1) April 29, 2019
Performance shares 29, 2020
Plan 23 April 29, 2016
314,610 April 29, 2020
None

Performance shares
bis (1)
Plan 23 July 27, 2016 - July 27, 2020 None

February 9, 2020 –
983,010 February 9, 2020
Performance shares February 9, 2021
Plan 24 February 9, 2017
292,650 February 9, 2021
None

February 15, 2021 –
1,062,759 February 15, 2021
Performance shares February 15, 2022
Plan 25 February 15, 2018
278,150 February 15, 2022
None

Performance shares
Plan 26 June 12, 2019 1,412,150 June 12, 2022 None

TOTAL 4,343,329

(1) The share rights concerned by this plan expired or vested in 2019.




71
18 – H. Share of non-controlling interests

Dividends paid to
Net income – Shareholders’ equity – non-controlling
Percentage of
non-controlling non-controlling interests
ownership and voting
Entity interests’ share interests’ share (minority
rights held by non-
Country of shareholders)
controlling interests (€ million) (€ million)
location
(€ million)

December December 2019 2018 December December 2019 2018
31, 2019 31, 2018 31, 2019 31, 2018

Automotive (excl. AVTOVAZ)

Renault Samsung
Korea
Motors 20% 20% 24 36 202 205 (24) (33)

Oyak Renault Otomobil
Turkey
Fabrikalari 48% 48% 83 55 295 270 (56) (41)

JMEV China 50% (6) 123 -

Other 3 6 12 27 (4) (7)

Total - Automotive (excluding
AVTOVAZ) 104 97 632 502 (84) (81)

Sales Financing

Banco RCI Brasil (1) Brazil 40% 40% 24 19 - - (9) (8)

Rombo Compania
Argentina
Financiera (1) 40% 40% - (2) - - - -

Other 7 7 52 45 (2) (5)

Total – Sales Financing 31 24 52 45 (11) (13)

AVTOVAZ

Alliance Rostec Auto
Netherlands
b.v. 32% 32% - - 756 663 - -

AVTOVAZ Russia 32% 32% 11 16 (668) (603) 7 -

LLC Lada Izhevsk Russia 32% 32% 6 7 (21) (19) (5) -

Other 8 5 16 11 (3) -

Total AVTOVAZ 25 28 83 52 (1) -

TOTAL 160 149 767 599 (96) (94)

(1) The Group has granted to minority shareholders in these companies put options to sell their investments. A liability corresponding to these put
options is included in other liabilities, amounting to €144 million for the Brazilian subsidiary and €7 million for the Argentinian subsidiary at
December 31, 2019 (€127 million and €13 million respectively at December 31, 2018). A corresponding charge is made to shareholders’ equity,
allocated in priority to the non-controlling interests’ share with any residual amount allocated to the parent-company shareholders’ share. The
liability is stated at fair value. Fair value is determined by estimating the potential purchase price, taking into account future results of the
financing portfolio as it exists at the closing date and the provisions of the partnership contracts. This is a level 3 fair value, as it uses recognized
models but their significant data are not based on observable market data.



New partnership agreements were signed in 2018 with Oyak in Turkey, including perfectly symmetrical put and call options for
non-controlling investments, entitling Renault, subject to certain conditions, to purchase Oyak’s shares in Oyak Renault (call) and
to sell its shares in Mais (put), and entitling Oyak to sell its shares in Oyak Renault (put) and purchase Renault’s shares in Mais
(call). The exercise price for the put option, if exercised, will be determined by three independent experts who would be appointed
at the exercise date.
Analysis of the contracts did not identify any circumstances beyond the control of Renault SA that could lead to Oyak’s put option
exercised without Renault SA being able to object. Consequently, no liability is recognized at December 31, 2019 in connection
with these options.
There are no significant restrictions on the Group’s capacity to access or use its assets and settle its liabilities, other than
restrictions that result from the regulatory framework in which the subsidiaries operate. The local supervisory authorities may
require banking subsidiaries to keep a certain level of capital and liquidities, limit their exposure to other group parties, and comply
with other ratios.




72
NOTE 19 – PROVISIONS FOR PENSIONS AND OTHER LONG-TERM EMPLOYEE BENEFIT OBLIGATIONS
19 – A. Pension and benefit plans
Pensions and other long-term employee benefit obligations essentially concern active employees. These benefits are covered
either by defined-contribution plans or defined-benefit plans.
• Defined-contribution plans
The Group makes earnings-related payments, in accordance with local custom, to the national organizations responsible for
paying pensions and similar financial benefits. There is no actuarial liability concerning these pension arrangements.
The total expense for defined-contribution plans was €603 million in 2019 (€588 million in 2018).
• Defined-benefit plans
The accounting treatment of defined-benefit plans is described in note 2-S, and involves establishment of provisions. These plans
concern:
- indemnities payable upon retirement or departure, in application of legislation or agreements in certain countries
such as France and Turkey;
- supplementary pensions providing employees with contractual income; the countries applying this type of plan
are in Europe (e.g. the United Kingdom, France, Germany, the Netherlands, and Switzerland);
- other long-term benefits, chiefly long-service awards and flexible holiday entitlements.
Defined-benefit supplementary pension plans are generally covered by contracts with pension funds or insurance companies. In
such cases, the obligations and assets are valued separately. The difference between the obligation and the fair value of the
assets held to fund it may indicate underfunding or overfunding. In the event of underfunding, a provision is booked. In the event
of overfunding, an asset is recognized subject to certain conditions.
• Principal defined-benefit plans of the Group
In France, the Group’s retirement indemnities result from agreements negotiated with each French entity and employee
representatives. They are based on employees’ salaries and length of service; payment is conditional on being in the company’s
employment at the time of retirement. Retirement benefit obligations for France are entirely covered by provisions, and account
for most of the Group’s liabilities for retirement indemnities.
The Group’s most significant supplementary pension plan is in the United Kingdom, where two defined-benefit pension plans are
managed as part of a dedicated pension fund comprising two compartments: one concerns Automotive subsidiaries (excluding
AVTOVAZ) and the other RCI Financial Services Ltd, together covering approximately 1,780 people. This plan has been closed
to new members since 2004, and no further rights can be earned under it after December 31, 2019. All employees benefit from
a defined-contribution pension plan from January 1, 2020.
This pension fund (a trust) is a legal entity in its own right. It is administered by a board of Trustees with equal representation for
the participating companies and their current and former employees. The fund is governed by local regulations, which set the
minimum funding requirements that can lead to additional contributions being made by the Group. The asset investment policy is
defined for each section of the fund by a supervisory body which examines the performance of investments quarterly. The risks
associated with these plans are the usual risks (lower future returns on fund assets, a decline in the equities markets, longer life
expectancy for beneficiaries, a rise in inflation, etc).
The fund compartment dedicated to the Automotive (excluding AVTOVAZ) segment is underfunded and the Group has made a
commitment to cover the shortfall by 2027 through payments amounting to £5 million maximum per year. Underfunding at
December 31, 2019 is valued at £44 million for the fund compartment dedicated to the Automotive (excluding AVTOVAZ)
segment, and £11 million for the fund compartment dedicated to RCI Financial Services Ltd.


• Main changes in the Group’s defined-benefit plans


Following publication of France’s ordinance 2019-697 of July 3, 2019 reforming supplementary defined-benefit pension plans in
application of article 197 of the “Pacte” law, the Group terminated the defined-benefit top-up pension plan that was set up in
France in late 2004, entailing the loss of the corresponding rights for plan members still working. This plan was open to members
of the Group’s Executive Committee who had been with the group for at least 5 years, including 2 years in the Executive
Committee, with payment of the related pension conditional on holding an executive position with the Group at the time of
retirement.
The provision established for this defined-benefit top-up pension plan amounted to €72 million at December 31, 2018. The portion
of this provision corresponding to economically active members has been transferred to profit and loss in 2019 as a plan
curtailment (positive impact of €41 million on the income statement) and a plan settlement (positive impact of €23 million on the
income statement).




73
19 – B. Main actuarial assumptions used to calculate provisions and other data for the most significant
plans

Main actuarial assumptions and actual December 31, 2019 December 31, 2018
data for the Group’s retirement
Renault s.a.s. Others Renault s.a.s. Others
indemnities in France
Retirement age 60 to 65 60 to 67 60 to 65 60 to 67
(1)
Discount rate 0.79% 0.1% to 2% 1.69% 0.8% to 2%

Salary increase rate 2.5% 1% à 3% 2.5% 1% à 2.7%

Duration of plan 13 years 6 to 20 years 13 years 7 to 20 years

Gross obligation €1,158 million €189 million €1,035 million €174 million

(1) The rates used to value the Group’s obligations in France vary between companies depending on the maturities of obligations. The benchmark
for the discount rate is the zero-coupon rate plus the average spread curve for issuers rated AA as published by Reuters.




Main actuarial assumptions and actual December 31, 2019 December 31, 2018
data for the Group’s supplementary
Automotive Sales Automotive Sales
pensions in the UK
excl. AVTOVAZ Financing excl. AVTOVAZ Financing

Financial discount rate (1) 2.10% 2.10% 2.85% 2.85%

Pension inflation rate (salary increase rate for
2018) 2.80% 2.80% 2% 3.10%

Duration of plan 20 years 23 years 18 years 25 years

Actual return on fund assets 12.74% 15.52% (3.95)% (5.37)%

Gross obligation €370 million €44 million €325 million €33 million

Fair value of assets invested via pension funds €319 million €31 million €270 million €25 million

(1) The discount rate was determined by reference to the interest rate curve established by Deloitte based on the iBoxx £ index for AA-rated
corporate bonds (DTRB £ AA corporate bond yield curve).



19 – C. Net expense for the year

2019 2018
(€ million)

Current service cost 98 94

Past service cost and (gain) / loss on settlement (84) (3)

Net interest on the net liability (asset) 28 25

Effects of workforce adjustment measures - (1)

Net expense (income) for the year recorded in the income
42
statement 115




74
19 – D. Detail of balance sheet provision
D1 – Breakdown of the balance sheet provision

December 31, 2019
(€ million)

Present value Fair value of Net defined-
of the fund assets benefit liability
obligation (asset)
Retirement and termination indemnities

France 1,347 - 1,347

Europe (excluding France) 17 - 17

Americas 2 - 2

Africa - Middle East – India – Asia-Pacific 3 - 3
(1)
Eurasia 54 - 54

Total retirement and termination indemnities 1,423 - 1,423

Supplementary pensions

France 85 (65) 20

United Kingdom 414 (350) 64
(2)
Europe (excluding France and the United Kingdom) 308 (200) 108

Americas 3 - 3

Africa - Middle East – India – Asia-Pacific 5 - 5

Total supplementary pensions 815 (615) 200

Other long-term benefits

France (3) 72 - 72

Europe (excluding France) 3 - 3

Americas 2 - 2

Total other long-term benefits 77 - 77
(4)
TOTAL 2,315 (615) 1,700

(1) Essentially Romania and Turkey.
(2) Essentially Germany and Switzerland.
(3) Flexible holiday entitlements and long-service awards.
(4) Total net liability due within one year: €64 million; total net liability due after one year: €1,636 million.



D2 – Schedule of amounts related to net defined-benefit liability

December 31, 2019
(€ million)

<1 year 1 to 5 years 5 to 10 years >10 years Total
Present value of obligation 73 332 417 1,493 2,315

Fair value of plan assets (9) (64) (77) (465) (615)

Net defined-benefit liability (asset) 64 268 340 1,028 1,700


The weighted average duration of plans is 15 years at December 31, 2019 (14 years at December 31, 2018).




75
19 – E. Changes in obligations, fund assets and the provision

Present Fair value of the Net defined-
(€ million)
value of fund assets benefit liability
the (A) +(B)
(B)
obligation
(A)
Balance at December 31, 2018 2,116 (529) 1,587

Current service cost 98 - 98

Past service cost and gain/loss on plan curtailment, modification and settlement (84) - (84)

Net interest on the net liability (asset) 40 (12) 28

Net expense (income) for 2019 recorded in the income statement (19-C) 54 (12) 42

Actuarial gains and losses on the obligation resulting from changes in (3) - (3)
demographic assumptions

Actuarial gains and losses on the obligation resulting from changes in financial 233 - 233
effects

Actuarial gains and losses on the obligation resulting from experience effects 16 - 16

Net return on fund assets (not included in net interest above) - (52) (52)

Net expense (income) for 2019 recorded in other components of 246 (52) 194
comprehensive income

Employer’s contributions to funds - (22) (22)

Employee’s contributions to funds - (1) (1)

Benefits paid under the plan (117) 19 (98)

Benefits paid upon liquidation of a plan -

Effect of changes in exchange rate 21 (18) 3

Effect of changes in scope of consolidation and other (5) - (5)

Balance at December 31, 2019 2,315 (615) 1,700


Accumulated actuarial gains and losses, net of tax (excluding the associates’ share) recorded in other components of
comprehensive income amounted to an expense of €735 million at December 31, 2019 (an expense of €596 million at December
31, 2018).
A 100 base point decrease in discount rates used for each plan would result in a €420 million increase in the amount of obligations
at December 31, 2019 (€272 million at December 31, 2018), and a 100 base point increase in discount rates used for each plan
would result in a €322 million decrease in the amount of obligations at December 31, 2019 (€229 million at December 31, 2018).




76
19 – F. Fair value of fund assets
Details of the assets invested via pension funds and insurance companies are as follows:

December 31, 2019
(€ million)

Assets listed on Unlisted assets Total
active markets
Pension funds

Cash and cash equivalents - - -

Shares 112 - 112

Bonds 202 - 202

Shares in mutual funds and other 40 5 45

Total – Pension funds 354 5 359

Insurance companies -

Cash and cash equivalents 1 7 8

Shares 7 - 7

Bonds 203 5 208

Real estate property 17 1 18

Shares in mutual funds and other 5 10 15

Total - Insurance companies 233 23 256

TOTAL 587 28 615

Pension fund assets mainly relate to plans located in the United Kingdom (57.2%). Insurance contracts principally concern
Germany (5.5%), France (10.6%), the Netherlands (20%) and Switzerland (5.5%). The actual returns on plan assets in the United
Kingdom are shown in note 19-B.
The weighted average actual rate of return on the Group’s main funds was 8.84% in 2019 ((1.28)% in 2018).
At the date of this report, the best estimate of contributions that will be payable to the funds in 2019 is approximately €11 million.
The Group’s pension fund assets do not include Renault Group’s financial instruments. Real estate investments do not include
real estate properties occupied by the Group.




77
NOTE 20 – CHANGE IN PROVISIONS


Provisions
(€ million)
Provisions for
for litigation
Provisions
and risks commitments
Restructuring Warranty concerning for insurance given and
activities (1) Total
provisions provisions other taxes other


At December 31, 2018 (2)
437 1,001 240 480 405 2,563


Increases 259 628 78 84 124 1,173


Reversals of provisions for application (224) (591) (31) (41) (93) (980)


Reversals of unused balance of provisions (22) (31) (47) - (110) (210)


Changes in scope of consolidation - - 28 - - 28


Translation adjustments and other changes - 9 (40) - (21) (52)


At December 31, 2019 (3) 450 1,016 228 523 305 2,522

(1) Technical reserves established by the Sales Financing segment’s insurance companies.
(2) The figures for 2018 include a reclassification of provisions for uncertain tax liabilities, in application of an IFRIC decision of September 2019.
These provisions are presented in specific lines instead of in other provisions as previously (note 2-A3). 2018 figures also include a €(57)
million adjustment due to correction of an error concerning operations in the Americas region, with a corresponding entry in provisions.
(3) Short-term portion of provisions: €1,064 million; long-term portion of provisions: €1,458 million.




All known litigation in which Renault or Group companies are involved is examined at each closing. After seeking the opinion of
legal advisors, any provisions deemed necessary are set aside to cover the estimated risk. During 2019, the Group recorded no
provisions in connection with significant new litigation. Information on contingent liabilities is provided in note 28-A2.
Increases to restructuring provisions essentially comprise the effect of workforce adjustment measures in the Europe region (note
6-A).
At December 31, 2019, “Other provisions” include €84 million of provisions established in application of environmental regulations
(€99 million at December 31, 2018). These include provisions to cover expenses relating to end-of-life vehicles and used batteries,
the costs of a plan to improve nitrogen oxide (NOx) emissions by diesel vehicles amounting to €8 million (note 28-A2), and
environmental compliance costs for industrial land in the Europe region and for industrial sites in the Americas and Eurasia
regions.




78
NOTE 21 – OTHER CURRENT AND NON-CURRENT LIABILITIES


December 31, 2019 December 31, 2018
(€ million)

Non- Current Total Non- Current Total
current current
Current taxes due 2 223 225 - 289 289
(1)
Provisions for uncertain tax liabilities 187 8 195 140 22 162

Tax liabilities (excluding current taxes due) 30 1,235 1,265 45 1,176 1,221

Social liabilities 22 1,415 1,437 21 1,451 1,472

Other liabilities 248 6,415 6,663 169 5,723 5,892

Deferred income 1,432 1,722 3,154 1,337 1,573 2,910

Derivatives on operating transactions of the Automotive segments - 14 14 - 5 5

Total other liabilities 1,732 10,801 12,533 1,572 9,928 11,500

Total 1,921 11,032 12,953 1,712 10,239 11,951

(1) The figures for 2018 include a reclassification of provisions for uncertain tax liabilities, in application of an IFRIC decision of September 2019.
These provisions are presented in specific lines instead of in other provisions as previously (note 2-A3).

Other liabilities mainly correspond to amounts payable under sales incentive programs (€2.455 million at December 31, 2019 and
€2,442 million at December 31, 2018) and deferred income recorded in connection with sales contracts including a buy-back
commitment (€675 million at December 31, 2019 and €408 million at December 31, 2018).
Deferred income includes deferred income on Automotive service contracts such as maintenance and warranty extension
contracts. It takes the form of payments received under contracts defining a customer payment schedule that does not depend
on the group’s execution of its performance obligation (advance payment in full, or regular payments due at the end of specified
periods). Deferred income is transferred to revenues over the duration of the contracts, and breaks down as follows:

2019 2018
(€ million)

Deferred income on Automotive service contracts
817 720
(maintenance and warranty extensions) at January 1
Deferred income received during the period 341 351

Deferred income recognized in revenues during the period (313) (253)

Change in scope of consolidation - -

Translation adjustments and other changes 1 (1)

Deferred income on Automotive service contracts
(maintenance and warranty extensions) at 846 817
December 31
To be recognized in revenues - within one year 329 271

- in 1 to 3 years 464 479

- in 3 to 5 years 53 67




79
4.2.6.5 Financial assets and liabilities, fair value and management of financial risks
NOTE 22 – FINANCIAL ASSETS – CASH AND CASH EQUIVALENTS
22 – A. Current / non-current breakdown

December 31, 2019 December 31, 2018
(€ million)

Non- Current Total Non- Current Total
current current
Investments in non-controlled entities 878 - 878 853 - 853

Marketable securities and negotiable debt instruments - 1,375 1,375 - 921 921

Derivatives on financing operations by the Automotive
segments 49 216 265 48 378 426

Loans and other 145 625 770 27 664 691

Total financial assets 1,072 2,216 3,288 928 1,963 2,891

Gross value 1,072 2,221 3,293 928 1,974 2,902

Impairment - (5) (5) - (11) (11)

Cash equivalents - 8,375 8,375 - 8,091 8,091

Cash - 6,607 6,607 - 6,686 6,686

Total cash and cash equivalents - 14,982 14,982 - 14,777 14,777



Information on the counterparty risks associated with financial assets and cash and cash equivalents is provided in notes 25-B6
and 25-C2.


22 – B. Investments in non-controlled entities
At December 31, 2019, investments in non-controlled entities include €812 million (€755 million at December 31, 2018) for the
Daimler shares purchased under the strategic partnership agreement. These shares are carried at fair value through other
components of comprehensive income by option. If the Daimler shares were sold, the gain on sale would not be transferred to
profit and loss. Their fair value is determined by reference to the stock market price. At December 31, 2019, the stock market
price (€49.37 per share) was higher than the acquisition price (€35.52 per share) and the unrealized gain on the Daimler shares
held is €228 million. The increase in fair value over the year, amounting to €228 million (compared to a €409 million decrease in
2018), is recorded in other components of comprehensive income for 2019.
Investments in non-controlled entities also include €43 million at December 31, 2019 (€57 million at December 31, 2018) paid to
the Fund for the Future of the Automobile (Fonds Avenir Automobile – FAA). Under the support plan for these suppliers introduced
by the French authorities and automakers, Renault has made a commitment to pay a total of €200 million as funds are called.
The outstanding amount for Renault at December 31, 2019 is €54 million. The fair value of these securities is determined by
reference to the most recent net asset value reported by the FAA’s management company, after adjustment for any relevant
information that becomes known afterwards.


22 – C. Cash not available to the Group
The Group has liquidities in countries where repatriation of funds can be complex for regulatory or political reasons. In most of
these countries, such funds are used locally for industrial or sales financing purposes.
Some current bank accounts held by the Sales Financing Securitization Fund are used to increase credit on securitized
receivables, and consequently act as guarantees in the event of default on payment of receivables (note 15-B1). These current
bank accounts amount to €540 million at December 31, 2019 (€551 million at December 31, 2018).




80
NOTE 23 – FINANCIAL LIABILITIES AND SALES FINANCING DEBTS
23 – A. Current / non-current breakdown

December 31, 2019 December 31, 2018
(€ million)
Non- Non-
Current Total Current Total
current current
Renault SA redeemable shares 281 - 281 277 - 277

Bonds 5,671 613 6,284 4,665 581 5,246

Other debts represented by a certificate - 648 648 - 649 649

Borrowings from credit institutions 363 619 982 314 643 957
(1)
Lease liabilities in application of IFRS 16 608 115 723

Other interest-bearing borrowings (2) 134 476 610 210 152 362

Financial liabilities of the Automotive (excluding
AVTOVAZ) segment (excluding derivatives) 7,057 2,471 9,528 5,466 2,025 7,491

Derivatives on financing operations of the Automotive
(excluding AVTOVAZ) segment 49 219 268 42 353 395

Total financial liabilities of the Automotive (excluding
AVTOVAZ) segment 7,106 2,690 9,796 5,508 2,378 7,886

Borrowings from credit institutions 807 71 878 667 85 752
(2) (3)
Other interest-bearing borrowings - (3) (3) 6 - 6

Lease liabilities in application of IFRS 16 (1) 14 2 16

Other non-interest-bearing borrowings - 20 20 15 - 15

Financial liabilities of AVTOVAZ (excluding derivatives) 821 90 911 688 85 773

Total financial liabilities of the Automotive segment
including AVTOVAZ 7,927 2,780 10,707 6,196 2,463 8,659
(4)
Diac redeemable shares and subordinated loans 867 - 867 13 - 13

Bonds - 18,825 18,825 - 18,902 18,902

Other debts represented by a certificate - 5,114 5,114 - 4,527 4,527

Borrowings from credit institutions - 5,480 5,480 - 4,931 4,931

Other interest-bearing borrowings, including lease liabilities
(5)
- 17,954 17,954 - 16,053 16,053

Financial liabilities and debts of the Sales Financing
segment (excluding derivatives) 867 47,373 48,240 13 44,413 44,426

Derivatives on financing operations of the Sales Financing
segment - 92 92 - 82 82

Financial liabilities and debts of the Sales Financing
segment 867 47,465 48,332 13 44,495 44,508

Total financial liabilities of the Automotive segment
including AVTOVAZ, and financial liabilities and debts
of the Sales Financing segment 8,794 50,245 59,039 6,209 46,958 53,167

(1) The effects of first application of IFRS 16 “Leases” under the simplified retrospective approach are presented in note 2-A2. Lease liabilities are
now presented separately for the Automotive segments.
(2) The financial liability recognized at December 31, 2019 in application of IAS 16 for leases analysed in substance as purchases amounts to
€26 million. Other interest-bearing borrowings at December 31, 2018 included finance lease liabilities of the Automotive (excluding AVTOVAZ)
and AVTOVAZ segments, amounting to €74 million and €4 million respectively.
(3) Figures are represented after elimination of intragroup transactions. The negative figure reported for Other interest-bearing borrowings at
December 31, 2019 is thus explained by elimination of the cash loaned by AVTOVAZ to the Automobile (excluding AVTOVAZ) segment.
Intragroup transactions between the Automotive (excluding AVTOVAZ) and AVTOVAZ segments are presented in the consolidated financial
position by segment in section 4.2.6.1-A2. The AVTOVAZ financial lease liability amounts to €16 million at December 31, 2019 (€3 million at
December 31, 2018).
(4) Including subordinated loans of RCI Banque, amounting to €850 million at December 31, 2019.
(5) Including lease liabilities of the Sales Financing segment, amounting to €53 million at December 31, 2019.




81
23 – B. Changes in Automotive financial liabilities and derivative assets on financing operations

December Change in Change Foreign Other December
(€ million)
31, 2018 cash flows resulting exchange changes 31, 2019
from changes with no
acquisition with no effect on
or loss of effect on cash flows
control over cash flows
subsidiaries
and other
operating
units
Renault SA redeemable shares 277 - - - 4 281

Bonds 5,246 983 - 58 (3) 6,284

Other debts represented by a
certificate 649 - - - (1) 648

Borrowings from credit institutions 957 121 - (11) (85) 982

Lease liabilities in application of
IFRS 16 (1) (94) - 1 816 723

Other interest-bearing borrowings 362 (117) 250 16 99 610

Financial liabilities of the
Automotive (excluding
AVTOVAZ) segment (excluding
derivatives) 7,491 893 250 64 830 9,528

Derivatives on financing
operations of the Automotive
(excluding AVTOVAZ) segment 395 (67) - (48) (12) 268

Total financial liabilities of the
Automotive (excluding
AVTOVAZ) segment 7,886 826 250 16 818 9,796

Borrowings from credit institutions 752 (20) - 30 116 878

Other interest-bearing borrowings 6 (27) - 76 (58) (3)

Lease liabilities in application of
IFRS 16 (1) (2) - 2 16 16

Other non-interest-bearing
borrowings 15 - - 5 - 20

Financial liabilities of AVTOVAZ
(excluding derivatives) (2) 773 (49) - 113 74 911

TOTAL FINANCIAL LIABILITIES
OF THE AUTOMOTIVE
SEGMENT INCLUDING
AVTOVAZ (a) 8,659 777 250 129 892 10,707

Derivative assets on Automotive
financing operations (excluding
AVTOVAZ) (b) 426 (147) - (3) (11) 265

Net change in Automotive
financial liabilities in
consolidated cash flows
(section 4.2.5) (a) – (b) 924

(1) The effects of first application of IFRS 16 “Leases” under the simplified retrospective approach are presented in note 2-A2. The other changes
with no impact on cash flows principally comprise the effects of first application at January 1, 2019 and new leases concluded in 2019.
(2) Figures are presented after elimination of intragroup transactions. The negative figure reported for Other interest-bearing borrowings is thus
explained by elimination of the cash loaned by AVTOVAZ to the Automobile (excluding AVTOVAZ) segment. Intragroup transactions between
the Automotive (excluding AVTOVAZ) and AVTOVAZ segments are presented in the consolidated financial position by segment in section
4.2.6.1-A4.



23 – C. Changes in financial liabilities and sales financing liabilities
Changes in redeemable shares of the Automotive (excluding AVTOVAZ) segment
The redeemable shares issued in October 1983 and April 1984 by Renault SA are subordinated perpetual shares listed on the
Paris Stock Exchange. They earn a minimum annual return of 9% comprising a 6.75% fixed portion and a variable portion that
depends on consolidated revenues and is calculated based on identical Group structure and methods. The return on redeemable
shares, amounting to €20 million for 2019 (€21 million for 2018), is included in interest expenses.
Redeemable shares are stated at amortized cost. These shares are traded for €557 at December 31, 2019 and €601 at December
31, 2018. The financial liability based on the stock market value of the redeemable shares at December 31, 2019 is €444 million
(€479 million at December 31, 2018).

82
Changes in bonds of the Automotive (excluding AVTOVAZ) segment
Renault SA issued two Eurobonds under its EMTN program in 2019: one on June 24, 2019 with a nominal value of €1 billion, 6-
year maturity and a 1.25% coupon, and the other on October 4, 2019 with a nominal value of €500 million, 8-year maturity and a
1.125% coupon.
In 2019, Renault SA and Renault Do Brasil SA redeemed bonds for a total of €551 million and €23 million respectively.


Changes in financial liabilities of the AVTOVAZ segment
During 2019, the AVTOVAZ group repaid financial liabilities totalling €234 million and contracted new financial liabilities totalling
€186 million.

At December 31, 2019, the AVTOVAZ group’s average interest rate was 7.6% for outstanding rouble-denominated bank loans
(at December 31, 2018, the average rate was 10.16% for loans in roubles and 3.00% for loans in other currencies). At December
31, 2019, the AVTOVAZ group had €583 million of floating-rate bank loans (€414 million at December 31, 2018).
At December 31, 2019, the AVTOVAZ group has confirmed credit lines opened with banks in the amount of €1,347 million (€1,299
million at December 31, 2018). At December 31, 2019, the AVTOVAZ group has €474 million of undrawn available confirmed
borrowing facilities (€519 million at December 31, 2018), which can be used for operating activities (in 2018 it had available
confirmed borrowing facilities of €329 million for operating activities and €190 million for investments).
At December 31, 2019, the AVTOVAZ group was in compliance with all the covenants included in its loan agreements with banks.
At December 31, 2019 the AVTOVAZ group’s loans and borrowings are not guaranteed (at December 31, 2018, €357 million of
loans and borrowings were guaranteed by €86 million of property, plant and equipment, €19 million of finished goods and 100%
of the shares of AO Lada-Servis and AO ZAK).


Changes in debts of the Sales Financing segment
In 2019, RCI Banque group issued new bonds totalling €3,869 million and maturing between 2019 and 2026, and redeemed
bonds for a total of €4,034 million. RCI Banque also undertook an €850 million issue on the Tier 2 callable subordinated bank
debt market.
Savings deposits collected rose by €1,848 million in 2019 (€883 million of sight deposits and €965 million of term deposits) to
€17,711 million (€13,003 million of sight deposits and €4,708 million of term deposits), and are classified as other interest-bearing
borrowings. These savings are collected in Germany, Austria, Brazil, France and the United Kingdom.


Credit lines
At December 31, 2019, Renault SA’s confirmed credit lines opened with banks amounted to the equivalent of €3,480 million at
December 31, 2019 as at December 31, 2018. These credit lines have maturities of over one year and were unused at December
31, 2019 (and at December 31, 2018).
Also, at December 31, 2019, the Sales Financing segment’s confirmed credit lines opened in several currencies with banks
amounted to €4,847 million (€4,820 at December 31, 2018). These credit lines were drawn to the extent of €13 million at
December 31, 2019 (€26 million at December 31, 2018).
The contractual documentation for financial liabilities and confirmed credit lines contains no clause that could affect the continued
supply of credit in the event of any change in Renault’s credit rating or financial ratio compliance.


23 – D. Breakdown by maturity
For financial liabilities including derivatives, contractual flows are similar to the expected flows and correspond to the amounts to
be paid.
For floating-rate financial instruments, interest is calculated using interest rates as at December 31, 2019.
No contractual flows are reported for Renault and Diac redeemable shares as they have no fixed redemption date.




83
Financial liabilities of the Automotive segments

December 31, 2019
(€ million)

Balance Total <1 yr 1 to 2 2 to 3 3 to 4 yrs 4 to 5 yrs >5 yrs
sheet contractual yrs yrs
value flows
Bonds issued by Renault SA (by issue date)

2014 500 500 - 500 - - - -

2017 2,295 2,295 577 - 218 750 - 750

2018 1,921 1,921 - 321 - 150 700 750

2019 1,557 1,557 - - - - 57 1,500

Bonds issued by Renault Do Brasil (by issue date)

2016 6 - - - - - - -

Accrued interest, expenses and premiums 5 36 36 - - - - -

Total bonds 6,284 6,309 613 821 218 900 757 3,000

Other debts represented by a certificate 648 648 648 - - - - -

Borrowings from credit institutions 982 569 229 75 25 50 190 -

Lease liabilities in application of IFRS 16 (1) (2) 723 776 123 117 104 78 70 284

Other interest-bearing borrowings 610 363 285 35 18 15 10 -

Total other financial liabilities 2,963 2,356 1,285 227 147 143 270 284

Future interest on bonds and other financial
liabilities - 200 39 73 57 14 6 11

Redeemable shares 281 - - - - - - -

Derivatives on financing operations 268 264 215 21 14 8 6 -

Total financial liabilities of the Automotive
(excluding AVTOVAZ) segment 9,796 9,129 2,152 1,142 436 1,065 1,039 3,295

Rouble-denominated bank loans 878 878 71 109 9 367 322 -

Rouble-denominated interest-free promissory notes 20 20 20 - - - - -

Lease liabilities in application of IFRS 16 (1) (2) 16 56 4 3 3 2 2 42

Financial liabilities of Alliance Rostec Auto b.v. 7 7 7 - - - - -

Less current loans and borrowings from Renault s.a.s.
and intragroup cash of the AVTOVAZ segment (10) (10) (10) - - - - -

Total financial liabilities of the AVTOVAZ segment 911 951 92 112 12 369 324 42

(1) The effects of first application of IFRS 16 “Leases” under the simplified retrospective approach are presented in note 2-A.
(2) The potential future cash outflows caused by the exercise of extension options and contracts already signed which take effect in 2020
amount to €80 million.




84
The portion of financial liabilities of the Automotive segments maturing within one year breaks down as follows:

December 31, 2019
(€ million)

Contractual <1 month 1 to 3 months 3 months to 1
flows year
maturing
within 1 yr
Bonds 613 - 19 594

Lease liabilities in application of IFRS 16 (1) 123 14 24 85

Other financial liabilities 1,162 592 253 317

Future interest on bonds and other financial liabilities 39 2 13 24

Derivatives on financing operations 215 84 46 85

Total financial liabilities maturing within 1 year of the Automotive
(excluding AVTOVAZ) segment 2,152 692 355 1,105

Rouble-denominated bank loans (1) 71 19 33 19

Rouble-denominated interest-free promissory notes 20 - 20 -
(1)
Lease liabilities in application of IFRS 16 4 - 1 3

Financial liabilities of Alliance Rostec Auto b.v. 7 7 - 7

Less current loans and borrowings from Renault s.a.s. and intragroup
cash of the AVTOVAZ segment (10) (10) - -

Total financial liabilities maturing within 1 year of the AVTOVAZ
segment 92 16 54 29

(1) The effects of first application of IFRS 16 “Leases” under the simplified retrospective approach are presented in note 2-A. Lease
liabilities are now presented separately.



Financial liabilities and debts of the Sales Financing segment

December 31, 2019
(€ million)

Balance Total <1 yr 1 to 2 2 to 3 3 to 4 4 to 5 >5 yrs
sheet contractual yrs yrs yrs yrs
value flows
Bonds issued by RCI Banque (by issue date)

2014 507 500 - 500 - - - -

2015 1,763 1,750 1,000 - 750 - - -

2016 2,113 2,100 - 750 - 1,350 - -

2017 6,779 6,739 1,472 765 2,752 - 1,150 600

2018 3,722 3,676 132 1,316 63 865 - 1,300

2019 3,866 3,855 4 333 482 1,445 941 650

Accrued interest, expenses and premiums 75 126 99 15 10 2 - -

Total bonds 18,825 18,746 2,707 3,679 4,057 3,662 2,091 2,550

Other debts represented by a certificate 5,114 5,114 2,729 1,191 208 11 975 -

Borrowings from credit institutions 5,480 5,480 3,717 1,248 412 98 5 -

Other interest-bearing borrowings, including lease
liabilities (1) 17,954 17,954 15,799 1,122 624 167 227 15

Total other financial liabilities 28,548 28,548 22,245 3,561 1,244 276 1,207 15

Future interest on bonds and other financial
liabilities - 1,050 235 390 166 105 68 86

Diac redeemable shares and subordinated
loans 867 863 3 - - - - 860

Derivative liabilities on financing operations 92 41 12 16 10 3 - -

Total financial liabilities and debts of the Sales
Financing segment 48,332 49,248 25,202 7,646 5,477 4,046 3,366 3,511

(1) The effects of first application of IFRS 16 “Leases” under the simplified retrospective approach are presented in note 2-A2.




85
The portion of financial liabilities and debts of the Sales Financing segment maturing within one year breaks down as follows:

December 31, 2019
(€ million)

Contractual
flows
3 months to 1
maturing <1 month 1 to 3 months
year
within
1 year
Bonds 2,707 10 23 2,674

Other financial liabilities 22,245 14,911 1,063 6,271

Future interest on bonds and other financial liabilities 235 5 32 198

Subordinated loans 3 - 3 -

Derivative liabilities on financing operations 12 - 1 11

Total financial liabilities maturing within 1 year 25,202 14,926 1,122 9,154




23 – E. Financing by assignment of receivables
Some of the Automotive segment’s external financing comes from assignment of commercial receivables to non-Group financial
establishments.
Details of financing by assignment of commercial receivables is as follows:

December 31, 2019 December 31, 2018
(€ million)

Receivables Receivables
Receivables Receivables
assigned to non- assigned to non-
assigned and not assigned and not
Group entities Group entities and
derecognized derecognized
and derecognized derecognized
Automotive (excluding AVTOVAZ) 1,805 - 1,375 -

AVTOVAZ 5 - - -

Total assigned 1,810 - 1,375 -



The total amount of tax receivables assigned and derecognized in 2019 is €438 million, comprising €324 million of CIR
receivables, €54 million of CICE receivables and €60 million of VAT receivables (€218 million of CIR receivables, €60 million of
CICE receivables and €85 million of VAT receivables in 2018).
French tax receivables assigned outside the Group (the “CIR” Research Tax Credit and “CICE” Tax Credit For Competitiveness
and Employment), with transfer of substantially all the risks and benefits associated with ownership of the receivables, are only
derecognized if the risk of dilution is deemed to be non-existent. This is notably the case when the assigned receivables have
already been subject to a tax inspection or preliminary audit. No assigned tax receivables remained in the balance sheets at
December 31, 2019.
The assigned receivables are derecognized when the associated risks and benefits are substantially transferred, as described in
note 2-P.




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NOTE 24 – FINANCIAL INSTRUMENTS BY CATEGORY, FAIR VALUE AND IMPACT ON NET INCOME
24 – A. Financial instruments by category and fair value by level
IFRS 9, which is applicable from 2018,defines three categories of financial instruments:
• financial assets at fair value through other components of comprehensive income;
• financial assets at fair value through profit or loss;
• loans and receivables carried at amortized cost.
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 prices in an active market; fair value is generally
identical to the most recent quoted price;
• level 2: instruments whose fair values are derived from observable market prices and are not included in level 1;
• level 3: instruments whose fair values are derived from 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 2019, no financial instruments were transferred between Level 1 and Level 2, or into or out of Level 3.




87
(€ million) December 31, 2019
Fair value level of financial
Balance sheet value
assets at fair value

Equity Debt Level 1 Level 2 Level 3
FINANCIAL ASSETS Notes Equity Fair value of
instruments at instruments at
Fair value instruments financial assets
Fair value of fair value fair value
AND OTHER ASSETS Amortized at amortized cost
through valued under
hedging through other through other
profit and the cost
instruments components of components of
loss applicable
comprehensive comprehensive
standard
income income

45,276 (1)
Sales financing receivables 15 - - - - - 45,374
(2)
Automotive customer receivables 16 - - - - - 1,258
(2)
Tax receivables (including current
taxes due) 17 - - - - - 2,305
(2)
Other receivables and prepaid
- - - - -
expenses 17 2,795
(2)
Loans 22 - - - - - 770
(2)
Cash equivalents 22 - - - - - 3,690
(2)
Cash 22 - - - - - 6,607

Total financial assets recorded at
amortized cost - - - - - 62,799

Derivatives on operating
transactions of the Automotive
segments 17 - 10 - - - - - 10 -

Derivatives on financing operations
of the Sales Financing segment 17 - 36 - - - - - 36 -

Investments in non-controlled
entities 22 - - 812 - - - 812 - --

Marketable securities and
negotiable debt instruments 22 - - - 1,285 - - 1,285 - -

Derivatives on financing operations
by the Automotive segments 22 - - - - - - - - -

Cash equivalents 22 - - - 102 - - 102 - -

Total financial assets at fair value
through equity - 46 812 1,387 - - 2,199 46 -

Derivatives on operating
transactions of the Automotive
segments 17 - - - - - - - - -
Derivatives on financing operations
of the Sales Financing segment 17 2 139 - - - - - 141 -
Investments in non-controlled
entities 22 66 - - - - - - - 66
Marketable securities and
negotiable debt instruments 22 - - - 90 - - 90 - -
Derivatives on financing operations
of the Automotive segments 22 265 - - - - - - 265 -

Cash equivalents 22 4,583 - - - - - 4,583 - -

Total financial assets at fair value
through profit and loss 4,916 139 - 90 - - 4,673 406 66

Investments in unconsolidated
17
controlled entities - - - - 105 -

Total unconsolidated equity
instruments valued under the
applicable standard - - - - 105 -

Total financial assets 4,916 185 812 1 477 105 62,799 6,872 452 66


(1) 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 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.
(2) 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 value after impairment is a reasonable approximation of their fair value.




88
(€ million) December 31, 2019
Fair value level of financial
Balance sheet value
liabilities at fair value
Fair value of financial
Notes Initially
FINANCIAL LIABILITIES
assets at amortized
designated as
OTHER LIABILITIES Other cost
Held for measured at Hedging
financial Level 1 Level 2 Level 3
trading fair value derivatives
liabilities
through profit
and loss
Tax liabilities (including (2)
- - - 1,490
current taxes due) 21
(2)
Social liabilities 21 - - - 1,437
(2)
Other liabilities and deferred
income 21 - - - 9,817
(2)
Trade payables 21 - - - 47,465
444 (3)
Renault redeemable shares 23 - - - 281
853 (4)
Subordinated debts 23 - - - 853
Bonds (*) 25,194 (4)
23 - - - 25,109
Other debts represented by a
certificate (*) 5,785 (4)
23 - - - 5,762
(*)
7,428 (4)
Borrowings from credit institutions 23 - - - 7,340
Lease liabilities in application of
IFRS 16 (*) (1) 792 (4)
23 - - - 792
Other interest-bearing and
non-interest-bearing
borrowings (*) 18,500 (4)
23 - - - 18,528
Total financial liabilities recorded
- - - 118,874
at amortized cost
9,247 9,200
(*) Financial liabilities and debts of the Automotive (excluding AVTOVAZ) segment
911 929
Financial liabilities and debts of AVTOVAZ
47,373 47,570
Financial liabilities and debts of the Sales Financing segment
Derivatives on operating
transactions of the Automotive
segments 21 - - 9 - - 9 -
Derivatives on financing operations
of the Automotive segments 23 - - - - - - -
Derivatives on financing operations
of the Sales Financing segment 23 - - 77 - - 77 -
Total financial liabilities at fair
value through equity - - 86 - - 86 -
Derivatives on operating
transactions of the Automotive
segments 21 5 - - - - 5 -
DIAC redeemable shares 23 - 14 - - 14 - -
Derivatives on financing operations
of the Automotive segments 23 268 - - - - 268 -
Derivatives on financing operations
of the Sales Financing segment 23 12 - 3 - - 15 -
Total financial liabilities at fair
value through profit and loss 285 14 3 - 14 288 -
Total financial liabilities 285 14 89 - 14 374 -


(1) The effects of first application of IFRS 16 “Leases” under the simplified retrospective approach are presented in note 2-A. This item
reports the lease liabilities of the Automotive and Sales Financing segments.
(2) The Group does not report the fair value of financial liabilities such as trade payables, tax liabilities and social liabilities, because
their book value is a reasonable approximation of their fair value.
(3) The fair value of Renault redeemable shares is identical to the stock market price.
(4) The fair value of the Automotive (excluding AVTOVAZ) segment’s financial liabilities and sales financing debts measured at
amortized cost is essentially determined by discounting future cash flows at rates offered to Renault at December 31, 2019 for loans
with similar conditions and maturities. The rates offered to Renault result from observable market data such as zero-coupon interest
rate curves and secondary market prices for bonds issued by the Group, and consequently this is a level 2 fair value. The fair value
of AVTOVAZ financial liabilities measured at amortized cost is determined by discounting future cash flows using rates currently
available for borrowings with similar terms, credit risk and remaining maturities. The discount rate used to estimate the fair value of
AVTOVAZ long term borrowings was 11% at December 31, 2019.




89
24 – B. Changes in Level 3 financial instruments
Level 3 financial instruments mainly correspond to investments in non-controlled entities (€66 million at December 31, 2019 and
€98 million at December 31, 2018). In an exception to the general approach, these instruments are still carried at historical cost,
but if this is inappropriate they are valued on the basis of the share of net equity or using a method based on non-observable
data.


24 – C. Impact of financial instruments on net income
Financial assets Financial liabilities
(€ million)
other than derivatives other than derivatives
Total
Instruments Instruments Instruments Instruments Instruments
2019 impact on
measured at measured at measured at designated at fair measured at Derivatives
net
amortized cost (1)
fair value fair value amortized value through profit
income
through through cost and loss
profit and equity
loss

Operating margin - - 79 - (37) (8) 34

Net financial income (expenses) (18) 59 75 - (344) (15) (243)

Impact on net income –
Automotive (excluding
AVTOVAZ) segment (18) 59 154 - (381) (23) (209)

Operating margin - - 6 - - - 6

Net financial income (expenses) 1 - 3 - (88) - (84)

Impact on net income –
AVTOVAZ segment 1 - 9 - (88) - (78)

Operating margin (45) 10 758 (2) (681) 99 139

Impact on net income – Sales
Financing segment (45) 10 758 (2) (681) 99 139

Total gains (losses) with impact
on net income (62) 69 921 (2) (1,150) 76 (148)

(1) Including financial liabilities subject to fair value hedges.

For the Automotive (excluding AVTOVAZ) and AVTOVAZ segments, the impact of financial instruments on the operating margin
mainly corresponds to foreign exchange gains and losses on operating transactions.


24 – D. Fair value hedges

2019 2018
(€ million)

Change in fair value of the hedging instrument 74 26

Change in fair value of the hedged item (80) (27)

Net impact on net income of fair value hedges (6) (1)

Hedge accounting methods are described in note 2-X.




90
NOTE 25 – DERIVATIVES AND MANAGEMENT OF FINANCIAL RISKS
25 – A. Derivatives and netting agreements
A1 – Fair value of derivatives
The fair value of derivatives corresponds to their balance sheet value.

Financial assets Other Financial liabilities and Other
(€ million)
assets Sales Financing debts liabilities
December 31, 2019 Non-current Current Current Non-current Current Current
Cash flow hedges - - - - - 8

Fair value hedges - - - - - -

Net investment hedge in Nissan - - - - - -

Derivatives not qualified as hedging
instruments 26 215 2 21 228 5

Total foreign exchange risk 26 215 2 21 228 13

Cash flow hedges - - 36 - 77 -

Fair value hedges - - 140 - 3 -

Derivatives not qualified as hedging
instruments 23 1 - 28 3 -

Total interest rate risk 23 1 176 28 83 -

Cash flow hedges - - 9 - - 1

Fair value hedges - - - - - -

Derivatives not qualified as hedging
instruments - - - - - -

Total commodity risk - - 9 - - 1

Total 49 216 187 49 311 14



A2 – Netting agreements and other similar commitments
Framework agreements for operations on financial futures and similar agreements
The Group negotiates its derivatives contracts in accordance with the framework agreements issued by the International Swaps
and Derivatives Association (ISDA) and the FBF (Fédération Bancaire Française).
In the event of default, the non-defaulting party has the right to suspend execution of its payment obligations and to demand
payment or transfer of a termination balance for all terminated transactions.
The ISDA and FBF framework agreements do not meet the requirements for netting in the financial statements. The Group
currently has no legally enforceable right to net the reported amounts, except in the case of default or a credit event.




91
Netting of financial assets and liabilities: summary



(€ million)
Amounts not netted in the statement of
Amounts in the financial position
statement of
Net
financial
amounts
December 31, 2019 Financial Guarantees Off balance
position eligible
instruments included in sheet
for netting assets/liabiliti liabilities guarantees
es

ASSETS

Derivatives on financing operations of the
Automotive (excluding AVTOVAZ) segment 265 (173) - - 92

Derivatives on financing operations of the
Sales Financing segment 177 (37) - - 140
(2)
Sales financing receivables on dealers 441 - (197) - 244

TOTAL ASSETS 883 (210) (197) - 476



Derivatives on financing operations of the
Automotive (excluding AVTOVAZ) segment 268 (173) - - 95

Derivatives on financing operations of the
Sales Financing segment 92 (37) - - 55

TOTAL LIABILITIES 360 (210) - - 150

(1) Sales financing receivables held by Banco RCI Brasil, whose exposure is covered by pledges of “letras de cambio” (bills of exchange)
subscribed by dealers and reported under other debts represented by a certificate.



25 – B. Management of financial risks of the Automotive (excluding AVTOVAZ) and Sales Financing
segments
The Automotive (excluding AVTOVAZ) and Sales Financing segments are exposed to the following financial risks:
• Liquidity risks
• Market risks (foreign exchange, interest rate, equity and commodity risks)
• Counterparty and credit risks

B1 – Liquidity risks

The Automotive (excluding AVTOVAZ) and Sales Financing segments are financed via the capital markets, through:

• long-term resources (bond issues, private placements, project financing, term deposits, etc);
• short-term bank loans or commercial paper issues and sight deposits;
• securitization of receivables by Sales Financing.

The Automotive (excluding AVTOVAZ) segment needs sufficient financial resources to finance its day-to-day business and the
investments necessary for future growth. It therefore regularly borrows on the banking and capital markets to refinance its gross
debt for the Automotive (excluding AVTOVAZ) segment, and this exposes it to liquidity risks in the event of extended market
closures or tensions over credit availability.

As part of its centralized cash management policy, Renault SA handles most refinancing for the Automotive (excluding AVTOVAZ)
segment through long-term resources via the capital markets (bond issues and private placements), short-term financing such as
NEU CP (Negotiable European Commercial Paper), or financing via the banking sector or public or semi-public bodies.
Medium-term refinancing for the Automotive (excluding AVTOVAZ) segment in 2019 was mostly provided by bond issues. Renault
SA issued two bonds under its EMTN program: two Eurobonds, one with a nominal value of €1 billion issued on June 24, 2019
with 6-year maturity and a coupon of 1.25%, and the other with a nominal value of €500 million issued on October 4, 2019 with
8-year maturity and a 1.125% coupon.
The contractual documentation for this financing contains no clause that could affect the continued supply of credit in the event
of any change in Renault’s credit rating or financial ratio compliance. However, certain types of financing, particularly market
financing, contain standard clauses (pari passu, negative pledge and cross-default clauses).
The Automotive (excluding AVTOVAZ) segment also has confirmed credit lines opened with banks worth €3,480 million, maturing
at various times up to 2024. None of these credit lines was drawn at December 31, 2019. These confirmed credit facilities form a
liquidity reserve.
The contractual documentation for these confirmed bank credit facilities contains no clause that might adversely affect credit
availability or continuation as a result of a change in Renault’s credit rating or financial ratio compliance.




92
Liquidity risk management refers to an internal model to define the level of the liquidity reserve the Automotive segment must
maintain to finance its operations and development. The Automotive liquidity reserve is closely monitored by a monthly regular
review and reporting that is validated internally.
Given its available cash reserves (€12.2 billion) and confirmed credit lines unused at December 31, (€3.5 billion), the Automotive
(excluding AVTOVAZ) segment has sufficient financial resources to cover its commitments over a 12-month horizon.
Confirmed credit lines unused are described in note 23-C.

The Sales Financing segment is very attentive to diversification of its sources of liquidity. In recent years Renault has diversified
its sources of financing widely, moving into new distribution zones in addition to its longstanding base of Euro bond investors.

RCI Banque’s liquidity risk monitoring follows the recommendations of the European Banking Authority for an Internal Liquidity
Adequacy Assessment Process (ILAAP). It uses several indicators and analyzes (static liquidity, liquidity reserve, several stress
scenarios), which are updated and reported to RCI Banque’s Financial Committee on a monthly basis. The stress scenarios
include assumptions concerning the deposit leak, loss of access to new financing, partial unavailability of certain elements of the
liquidity reserve and forecasts for issuance of new credit. The stressed assumptions for deposit leaks are very conservative and
are regularly backtested.
In 2019, the Sales Financing segment issued the equivalent of €2.9 billion in public bonds. The Group successively issued a
fixed-rate €750 million 5.5-year bond, a dual-tranche €1.4 billion bond (4-year fixed-rate €750 million, and 7-year fixed-rate
€650 million), and a 3.5-year fixed-rate €600 million bond. In parallel, the company issued a CHF170 million fixed-rate 5-year
bond, which both diversified its investor base and financed assets in that currency.
RCI Banque also made an issue on the subordinated bank debt market, placing a €850 million 10.25-year subordinated Tier 2
bond callable after 5.25 Years.
On the secured refinancing segment, RCI Banque undertook a public securitization transaction backed by automotive loans in
Germany, totaling €975.7 million, comprising €950 million of senior instruments and €25.7 million of subordinated instruments.
The alternation of different maturities and issue formats is part of the Sales Financing segment’s diversification strategy for
financing sources. This policy has been followed for several years, and enables the segment to reach the maximum number of
investors.
Savings deposits collected from private customers increased by €1.8 billion from 2018 to €17.7 billion or 35% of net assets at
December 31, 2019, in line with the company’s objective of holding customer deposits equivalent to approximately one third of
the customer financing issued.
With these resources, as well as resources held in Europe comprising €4.5 billion in undrawn confirmed credit lines with banks,
€2.5 billion of collateral eligible for the European Central Bank’s monetary policy operations, €2.2 billion of highly liquid assets
(HQLA), and short-term financial assets amounting to €0.5 billion, RCI Banque is able to fund its customer financing for more
than 12 months with no access to external resources.
Confirmed credit lines open but unused are described in note 23-C.


B2 – Foreign exchange risks
• Management of foreign exchange risks
The Automotive (excluding AVTOVAZ) segment is exposed to foreign exchange risks in the course of its industrial and
commercial business. These risks are monitored and centralized by Renault Financing and Treasury department.
It is Renault’s policy not to hedge future operating cash flows in foreign currencies, although exceptions may be made. As a result,
the Group’s operating margin is exposed to foreign exchange risks. The working capital is also sensitive to movements in
exchange rates. Any hedges of such risks require formal authorization from the Finance department or General Management,
and the results of these hedges are then reported to the General Management. In view of the uncertainty generated by Brexit
over the Euro-sterling exchange rate, in November 2019 the Group set up a hedge of future operating cash flows in sterling in
2020.
The Automotive (excluding AVTOVAZ) segment’s general policy is to minimize the foreign exchange risks affecting financing and
investment flows in foreign currencies, to avoid any exchange–related distortion of the financial result. All the Automotive
(excluding AVTOVAZ) segment’s exposures to foreign exchange risks on financial result items are aggregated and monitored by
the central Cash Management team, with monthly reporting to the Chief Financial Officer. Financing flows in foreign currency
originating from Renault entities are hedged in the same currency. If a subsidiary needs external financing in a currency other
than the local currency, the parent-company monitors the operations closely. Cash surpluses in countries that are not part of the
parent-company’s centralized cash management are generally invested in local currency, under the supervision of the Group’s
central Cash management department.
Equity investments (in currencies other than the euro) are not generally hedged. However, due to its importance, the investment
in Nissan is subject to a partial foreign exchange hedge amounting to 84 billion yen at December 31, 2019 (note 12-G). To limit
liquidity risks in yen, the Group has set itself the rule of not hedging the net investment above an amount equal to its best estimate
of the next three years’ dividends in yen to be received from Nissan.




93
The subsidiary Renault Finance can undertake foreign exchange operations on its own behalf, within strictly defined risk limits.
Its foreign exchange positions are monitored and valued in real time. This activity is chiefly intended to maintain the Group’s
expertise on the financial markets. It generates very short exposures and does not exceed some tens of millions of euros, and
cannot therefore have a significant impact on Renault’s consolidated results.


The Sales Financing segment has low exposure to foreign exchange risks due to the management principles applied. No position
can be taken under the central management framework for refinancing; the trading room hedges all flows concerned. Residual,
temporal positions in foreign currencies related to the time differences in cash flow inherent to multi-currency cash management
may still remain. They are monitored daily and the same hedging policy applies. The sales financing subsidiaries are obliged to
obtain refinancing in their own currency and as a result are not exposed. In exceptional circumstances, limits are assigned to
subsidiaries where sales financing activities or refinancing take place in several different currencies, and to subsidiaries
authorized to invest some of their cash surpluses in a currency other than their local currency.
At December 31, 2019 RCI Banque’s consolidated foreign exchange position reached €6.3 million.
In preparation for the consequences of Brexit, all the activities of RCI Bank UK Branch were transferred from March 14, 2019 to
a new entity, the credit institution RCI Services UK Limited, which is a fully-owned subsidiary of RCI Banque SA.
The Automotive (excluding AVTOVAZ) and Sales Financing segments made no major changes to their foreign exchange risk
management policy in 2019.
• Analysis of financial instruments’ sensitivity to foreign exchange risks in the Automotive (excluding AVTOVAZ)
segment
This analysis concerns the sensitivity to foreign exchange risks of monetary assets and liabilities (including intragroup balances)
and derivatives denominated in a currency other than the currency of the entity that holds them. However, it does not take into
items (hedged assets or liabilities and derivatives) concerned by fair value hedging, for which changes in fair value of the hedged
item and the hedging instrument totally offset each other in the income statement.
The impact on shareholders’ equity (before tax) of a 1% rise in the euro against other currencies is assessed by converting
financial assets, cash flow hedges and the partial hedge of the investment in Nissan. For the Automotive (excluding AVTOVAZ)
segment, this impact would be a favourable €10 million at December 31, 2019, explained by the yen bond issues that make up
the partial hedge of the investment in Nissan (see note 12-G) and the partial hedge set up for future cash flows in sterling in 2020.
The impact on net income of a 1% rise in the euro against other currencies would be an unfavourable €7 million at December 31,
2019, mainly attributable to unhedged operating assets and liabilities denominated in a currency that is not the functional currency
of the entity that holds them.
• Currency derivatives

December 31, 2019 December 31, 2018
(€ million)

Nominal <1 yr 1 to 5 yrs >5 yrs Nominal <1 yr 1 to 5 yrs >5 yrs
Currency swaps – purchases 724 436 288 - 3,101 1,408 1,693 -

Currency swaps – sales 720 434 286 - 3,092 1,393 1,699 -

Forward purchases 25,539 23,567 1,972 - 30,089 28,420 1,669 -

Forward sales 25,603 23,631 1,972 - 30,105 28,436 1,669 -


B3 – Interest rate risks
• Management of interest rate risks
The Renault Group’s exposure to interest rate risks mainly concerns the Sales Financing segment’s activity exercised by RCI
Banque and its subsidiaries. The overall interest rate risk represents the impact of fluctuating rates on the future gross financial
margin. The Sales Financing segment’s aim is to limit these risks as far as possible in order to protect its margin on sales. To
take account of the difficulty of precisely matching the structure of borrowings with the structure of loans, a limited amount of
flexibility is allowed in each subsidiary’s interest rate hedging. This flexibility is reflected in a sensitivity limit assigned to each
subsidiary and validated by the finance committee, in an individual adaptation of part of the limit Renault assigns to the Sales
Financing segment.
Sensitivity is calculated daily for each currency and each management entity (central refinancing office, French and foreign sales
financing subsidiaries), for overall management of interest rate risks across the consolidated scope of the Sales Financing
segment.
Each entity’s position with regard to its limit is checked daily, and immediate hedging directives are issued to the subsidiaries if
circumstances require. The results of the checks are reported monthly to the Sales Financing segment’s Finance Committee,
which checks that the positions comply with the Group’s financial strategy and current procedural instructions.
Analysis of the Sales Financing segment’s structural interest rate risk shows the following:
- Virtually all loans to customers by sales financing subsidiaries bear interest at a fixed rate and have terms from one to
72 months. These loans are hedged by fixed-rate resources with the same structure. They are covered by macro-
hedging and only generate a residual interest rate risk. In subsidiaries where the financing bears interest at a floating
rate, the interest rate risk is hedged by macro-hedging using interest rate swaps.




94
- The main activity of the Sales Financing segment’s central refinancing department is refinancing the segment’s
commercial subsidiaries. The outstanding credit issued by sales financing subsidiaries is backed by fixed-interest
resources, some of which are micro-hedged by interest rate swaps, and floating-rate resources. Macro-hedging
transactions in the form of interest rate swaps keep the sensitivity of the refinancing holding company below the defined
limit.


The Automotive (excluding AVTOVAZ) segment’s interest rate risk management policy applies two principles:
- liquidity reserves are generally established using floating-rate financing: the Automotive segment’s available cash is
managed centrally by Renault SA as far as possible and invested in short-term bank deposits by Renault Finance.

- long-term investments generally use fixed-rate financing. Fixed-rate borrowings remain at fixed rates as long as the
rate curve is close to zero, or even negative.
The ratio of liquidity reserve hedging by floating-rate debts is monitored monthly.
The financing in yen undertaken as part of the partial hedge of Nissan equity is fixed-rate.
Finally, Renault Finance carries out interest rate transactions on its own behalf, within strictly defined risk limits, and positions are
monitored and valued in real time. The risk associated with this arbitrage activity is very limited, and has no significant impact on
the Group’s consolidated net income.
Interest rate hedging instruments for the Automotive (excluding AVTOVAZ) segment are standard interest swaps that are
adequately covered by hedged liabilities, such that no ineffectiveness is expected.
The Automotive (excluding AVTOVAZ) and Sales Financing segments made no major changes to their interest rate risk
management policy in 2019.


• Analysis of financial instruments’ sensitivity to interest rate risks
The Automotive (excluding AVTOVAZ) and Sales Financing segments are exposed to the following interest rate risks:
- variations in the interest flows on floating-rate financial instruments stated at amortized cost (including fixed-rate
instruments swapped to floating rate, and structured products);
- variations in the fair value of the fixed-rate financial instruments stated at fair value;
- variations in the fair value of derivatives.
Impacts are estimated by applying a 100 base point rise in interest rates over a one-year period to financial instruments reported
in the closing statement of financial position.
For the Sales Financing segment, the impact on shareholders’ equity corresponds to the change in fair value before
reclassification in profit or loss (section 4.2.2) of fixed rate debt instruments classified as financial assets at fair value through
other components of comprehensive income and cash flow hedges after a 100 base point rise in interest rates. All other impacts
affect net income.
Calculation of the individual segments’ sensitivity to interest rates includes intersegment loans and borrowings.
For the Automotive (excluding AVTOVAZ) segment, the impact on net income and shareholders’ equity (before taxes) of a 100
base point rise in interest rates applied to financial instruments exposed to interest rate risks would be a positive €102.1 million
and €0.2 million respectively at December 31, 2019.
For the Sales Financing segment, the overall sensitivity to interest rate risks in 2019 remained below the limit set by the RCI
Banque group (€50 million at December 31). At December 31, 2019, a 100 point base point rise in interest rates would have the
following impacts on net income and shareholders’ equity (before taxes):
• +€0.9 million for items denominated in pounds sterling;
• +€0.5 million for items denominated in Korean won;
• +€0.2 million for items denominated in Polish zloty;
• -€0.2 million for items denominated in Czech korunas;
• -€0.5 million for items denominated in Brazilian real;
• -€0.8 million for items denominated in Swiss francs;
• -€1.0million for items denominated in euros.

The sum of the absolute sensitivities in each currency amounts to €4.5 million.




95
• Fixed rate/floating rate breakdown of financial liabilities and sales financing debts of the Group (excluding
AVTOVAZ), after the effect of derivatives

December 31, 2019 December 31, 2018
(€ million)

Financial liabilities before hedging: fixed rate (a) 35,503 27,006

Financial liabilities before hedging: floating rate (a’) 21,970 24,621

Financial liabilities before hedging (without redeemable shares) of the
Group (excluding AVTOVAZ) 57,473 51,627

Hedges: floating rate / fixed (b) 8,631 9,844

Hedges: fixed rate / floating (b’) 8,758 7,702

Hedges 17,389 17,546

Financial liabilities after hedging: fixed rate (a+b-b’) 35,376 29,148

Financial liabilities after hedging: floating rate (a’+b’-b) 22,097 22,479

Financial liabilities after hedging (without redeemable shares) of the Group
57,473 51,627
(excluding AVTOVAZ)

• Interest rate derivatives

December 31, 2019 December 31, 2018
(€ million)

Nominal <1 yr 1 to 5 yrs >5 yrs Nominal <1 yr 1 to 5 yrs >5 yrs
Interest rate swaps 23,313 7,500 13,813 2,000 23,867 8,361 13,506 2,000

Other interest rate hedging instruments - - - - 79 79 - -



B4 – Equity risks
• Management of equity risks
The exposure of the Automotive (excluding AVTOVAZ) segment and the Sales Financing segment to equity risks essentially
concerns the Daimler shares acquired in connection with the cooperation agreements, and marketable securities indexed to share
prices. These two segments do not use equity derivatives to hedge these risks.
The Automotive (excluding AVTOVAZ) segment and the Sales Financing segment made no major changes to their equity risk
management policy in 2019.
• Analysis of financial instruments’ sensitivity to equity risks
The sensitivity to equity risks resulting from application of a 10% decrease in share prices to the financial assets concerned at
the year-end would have an unfavourable impact of €82 million on shareholders’ equity. The impact on net income is not significant
at December 31, 2019.


B5 – Commodity risks
• Management of commodity risks
Commodity purchase prices can change suddenly and significantly, and cannot necessarily be passed through on vehicle sale
prices. This may lead Renault’s Purchases department to hedge part of its commodity risks using financial instruments. These
hedges are subject to volume, duration and price limits.
In 2019 Renault undertook hedging operations on base metals and precious metals, within the limits validated by the Chairman
and CEO of Renault SA for a temporary period.
The operations in progress at December 31, 2019 are classified for accounting purposes as cash flow hedges, and accordingly
changes in their fair value are included in other components of comprehensive income to the extent of the effective portion of the
hedges.
• Analysis of financial instruments’ sensitivity to commodity risks
Financial instruments’ accounting sensitivity to commodity risks results from derivatives used to hedge the Group’s economic
exposure to these risks.
A 10% increase in commodity prices for derivatives classified as hedging derivatives would have a positive impact of €9 million
on other components of comprehensive income at December 31, 2019.




96
• Commodity derivatives

(€ million) December 31, 2019 December 31, 2018
Nominal <1 yr 1 to 5 yrs >5 yrs Nominal <1 yr 1 to 5 yrs >5 yrs
70 64 6 -
Swaps 115 115 - -

31 29 2 -
Zero-premium collars (option) 36 36 - -



B6 – Counterparty and credit risks
Credit risk on Automotive receivables
The Automotive segment’s exposure to credit risk is limited because of the assignment of many receivables leading to their
deconsolidation, and systematic hedging of risks on export receivables. Non-assigned sales receivables and receivables covered
by guarantee are regularly monitored.


Credit risk on receivables and commitments given by the Sales Financing segment
Credit risk relating to customers is assessed by a scoring system and monitored by type of activity (customers and dealers).
Various internal rating systems are currently in use in the Sales Financing segment:
A Group rating for “Dealers”, used in each phase of relations with the borrower (initial acceptance, risk monitoring,
-
provisioning),
A Group rating for bank counterparties founded on each counterparty’s external rating and equity level,
-
Several different acceptance score systems for “Customers”, depending on the subsidiaries and types of financing
-
involved.

RCI Banque is constantly adjusting its acceptance policy to reflect the conditions of the economic environment.
The Group has detailed management procedures, notably covering collection of outstanding payments, with local versions in all
the countries where they apply.


Counterparty risk on other financial assets
All entities of the Automotive and Sales Financing segments use a fully-coordinated counterparty risk management procedure
involving a scoring system, based principally on the counterparties’ long-term credit rating and equity level. For each of these
entities with significant exposure, compliance with authorized limits is monitored on a daily basis under strict internal control
procedures.
The Group produces a consolidated monthly report covering all its bank counterparties, organized by credit rating. This report
provides a detailed analysis of compliance with limits in terms of amount, maturity and type, as well as a list of the main exposures.
Most deposits are contracted with large network banks and generally have terms shorter than 90 days, as this allows a good
spread of the risk and lowers the systemic risk.
In the event of volatile macroeconomic situations that may arise in emergent countries and potentially affect their banking systems,
the Group introduces an action plan to step up counterparty risk monitoring, and makes adjustments to the counterparty limits if
necessary.
The exposure on each banking group is assessed monthly on a consolidated basis, with the Automotive and Sales Financing
entities. The Group is not subject to any significant risk concentration for its operations on the financial and banking markets.
No losses due to default by a banking counterparty were recorded in 2019.




97
Impairment and provisions established to cover counterparty risks



Reversals
December December
(€ million) Notes Impairment Other
31, 2018 31, 2019
For Of unused
application residual amounts
Impairment of Sales Financing
receivables 15 (780) (373) 198 108 (1) (848)
- impairment of financing for
end-customers 15 (669) (295) 153 65 (1) (747)
- impairment of dealership
financing 15 (111) (78) 45 43 - (101)
Impairment of Automotive
receivables 16 (779) (20) 5 11 (32) (815)

Impairment of other receivables 17 (320) (19) - - - (339)
Impairment of other financial
assets 22 (11) 6 - - - (5)

Provisions (commitments given) 20 5 11 (1) (9) - 6
Total coverage of
counterparty risks (1,885) (395) 202 110 (33) (2,001)




C. Management of AVTOVAZ Group financial risks
The AVTOVAZ Group’s principal financial liabilities comprise bank loans, lease liabilities, trade payables and loans received.
The main purpose of these financial liabilities is to raise finance for AVTOVAZ Group’s operations. It has various financial assets
such as trade receivables, cash, short-term deposits and loans issued, which arise directly from its operations.
No trading in derivatives was undertaken in 2019. The main risks arising from the Group’s financial instruments are foreign
currency risk, credit risk and liquidity risk. The AVTOVAZ Group is not exposed to any equity price risk.
C1 – Foreign exchange risks
The AVTOVAZ Group carries out sales both inside and outside the Russian Federation. As a result, the AVTOVAZ Group has
currency exposures. Such exposure arises from sales in currencies other than AVTOVAZ’s functional currency, i.e. the Russian
rouble. Almost 97% of sales and 94% of costs are denominated in roubles.
Risk management is carried out by PAO AVTOVAZ Finance Department, which identifies, evaluates and manages foreign
exchange risks by analyzing the net position in each foreign currency. It has not entered into any hedging arrangements in respect
of its foreign currency.
The following table demonstrates the sensitivity to a change in the US dollar, euro, Japanese yen, exchange rates of AVTOVAZ
Group’s profit before tax.

%
(€ million)
increase/(decrease) Effect on profit
in exchange rate before tax
2019
EUR/RUB 13,00 (3)

JPY/RUB 13,00 0

USD/RUB 13,00 0



EUR/RUB -11,00 2

JPY/RUB -13,00 0

USD/RUB -13,00 0


C2 – Counterparty and credit risks
At December 31, 2019, the AVTOVAZ Group has €67 million in cash and cash equivalents and €250 million of trade receivables
and other current assets subject to potential credit risk. Credit risk on these financial assets arises from default of the counterparty,
with maximum exposure equal to the carrying amount.




98
The AVTOVAZ Group trades only with recognized, creditworthy third parties. The AVTOVAZ Group’s policy states that all customers
requiring credit facilities must be subject to credit verification procedures. In addition, receivable balances are monitored on an
ongoing basis, and as a result, the AVTOVAZ Group‘s exposure to bad debts is not significant. The maximum exposure is the carrying
amount. There are no significant concentrations of credit risk within the AVTOVAZ Group.


C3 – Liquidity risks
The AVTOVAZ Group monitors its risk to a shortage of funds using a liquidity planning tool. This tool considers the maturity of
both its financial investments and financial assets (e.g. accounts receivable, other financial assets) and projected cash flows from
its operations.
The AVTOVAZ Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank
loans and borrowings.
The maturity of the AVTOVAZ Group’s financial liabilities at December 31, 2019 is presented in note 23-D.


C4 – Cash flow and Interest rate risk


The AVTOVAZ Group’s interest rate risk principally results from its sources of financing. At December 31, 2019, the AVTOVAZ
Group has €583 million of floating-rate debts to credit institutions and €338 million of fixed-rate debts to credit institutions (note
23). It has not entered into any hedging arrangements in respect of its interest rate exposures.
The AVTOVAZ group’s financial assets bear interest at fixed rates or do not bear interest.




99
4.2.6.6 Cash flows and other information
NOTE 26 – CASH FLOWS


26 – A. Other income and expenses with no impact on cash before interest and tax

2019 2018
(€ million)

Net allocation to provisions (115) 204

Net effects of sales financing credit losses 67 63

Net (gain) loss on asset disposals 23 (69)

Change in fair value of other financial instruments 33 22

Net financial indebtedness 311 308

Deferred taxes 828 33

Current taxes 626 690

Other 164 145

Other income and expenses with no impact on cash before interest and tax 1,937 1,396




26 – B. Change in working capital

2019 2018
(€ million)

Decrease (increase) in net inventories 165 240

Decrease (increase) in Automotive net receivables 390 283

Decrease (increase) in other assets 155 (39)

Increase (decrease) in trade payables (161) (240)

Increase (decrease) in other liabilities 665 307

Increase (decrease) in working capital before tax 1,214 551



26 – C. Capital expenditure

2019 2018
(€ million)

Purchases of intangible assets (2,086) (1,772)

Purchases of property, plant and equipment (other than assets leased to customers) (3,035) (2,745)

Total purchases for the period (5,121) (4,517)

Deferred payments 99 110

Total capital expenditure (5,022) (4,407)




100
NOTE 27 – RELATED PARTIES

27 – A. Remuneration of directors and executives and Executive Committee members
At its meeting of January 24, 2019, the Renault Group’s Board of Directors decided to separate the functions of Chairman of the
Board and Chief Executive Officer.
The table below reports the remuneration paid to the Chairman and CEO (2018), the Chairman of the Board of Directors (2019),
the Chief Executive Officer (2019), Directors and Executives and Group Executive Committee members. Amounts are allocated
pro rata to expenses of the periods in which the functions were occupied. Since April 1, 2019 the Renault Group’s Executive
Committee has had 12 members.



2019 2018
(€ million)

Basic salary 6.0 5.5

Variable remuneration 4.6 7.4

Employer’s social security charges 2.7 11.1

Complementary pension and retirement indemnities (23.2) 9.5

Agreed indemnities 7.8 -

Other components of remuneration 0.2 0.5

Total remuneration in cash (1.8) 34.0

Stock options, performance shares and other share-based payments 11.3 16.1

Total remuneration in shares 11.3 16.1

Total 9.5 50.1



Directors’ fees amounted to €1.5 million in 2019 (€1.5 million in 2018)
There are no longer any commitments under the collective top-up pension plan arranged for members of the Group Executive
Committee at December 31, 2019 (€52 million at December 31, 2018) due to settlement of this plan in 2019 (see note 19-A).
Reversals from provisions concerning directors and executives and members of the Executive Committee that had an impact on
net income are included in the line ‘Complementary pension and retirement indemnities’ in the above table.
In 2018, this table did not reflect the resignation of Renault’s Chairman and CEO announced by the Board of Directors on January
24, 2019, and the potential consequences for the elements of his remuneration included in the 2018 figures above.
As Renault’s Chairman and CEO at December 31, 2018 was unable to exercise his management duties during the first half-year
of 2019 and resigned (i) from his position as Chief Executive Officer and Chairman of the Board of Directors of Renault on January
23, 2019, (ii) from his positions in Renault group companies other than his position as director on January 23, 2019, and (iii) from
his position as director of Renault SA after the General Shareholders’ Meeting of June 12, 2019, he is not considered to be one
of the Group’s key executives for the year 2019, as defined in IAS 24 “Related party disclosures”, as he has had no management
authority in Renault since the end of 2018. The figures for 2019 presented above thus contain no compensation concerning the
former Chairman and CEO.



27 – B. Renault’s investments in associates
Details of Renault’s investments in Nissan and in other companies accounted for by the equity method are provided in notes 12
and 13-A


27 – C. Transactions with the French State and public companies
In the course of its business the Group undertakes transactions with the French State and public companies such as UGAP, EDF,
and La Poste. These transactions, which take place under normal market conditions, represent sales of €257 million in 2019, an
automotive receivable of €53 million, a sales financing receivable of €403 million and a financing commitment of €26 million at
December 31, 2019.


27 – D. Transactions with unconsolidated controlled entities
A certain number of controlled entities are not consolidated, as explained in note 2-C, because their contribution to the
consolidated financial statements is considered non-significant (note 17).

The only company with sales of more than €100 million and/or a balance sheet value of more than €100 million are Renault
Nissan Global Management, which manages Renault’s expatriates.

In 2019, the Renault Group’s expenses with this company amounted to approximately €255 million (€284 million in 2018).




101
In the Group’s financial position at December 31, 2019, the balances of transactions between Renault Nissan Global Management
and the Renault Group consist mainly of operating receivables amounting to €120 million (€41 million at December 31, 2018) and
operating payables amounting to €59 million (€25 million at December 31, 2018).




102
NOTE 28 – OFF-BALANCE SHEET COMMITMENTS AND CONTINGENT ASSETS AND LIABILITIES

In the course of its business, Renault enters into a certain number of commitments, and is involved in litigations or subject to
investigations by competition and automobile regulation authorities. Any liabilities resulting from these situations (e.g. pensions
and other employee benefits, litigation costs, etc.) are covered by provisions. Details of other commitments that constitute off-
balance sheet commitments and contingent liabilities are provided below (note 28-A).
Renault also receives commitments from customers (deposits, mortgages, etc.) and may benefit from credit lines with credit
institutions (note 28-B).


28 – A. Off-balance sheet commitments given and contingent liabilities
A1 – Ordinary operations
The Group is committed for the following amounts:

December 31, 2019 December 31, 2018
(€ million)
(1)
Financing commitments in favour of customers 2,583 2,367

Firm investment orders 1,572 1,327
(2)
Assets pledged, provided as guarantees or mortgaged 2 86

Sureties, endorsements and guarantees given and other commitments (3) 696 1,086

(1) Commitments in favour of customers by the Sales Financing segment will lead to outflows of liquidities during the three months following the
year-end in the maximum amount of €2,488 million at December 31, 2019 (€2,331 million at December 31, 2018).
(2) At December 31, 2018, assets pledged, provided as guarantees or mortgaged included commitments given by AVTOVAZ amounting to €86
million corresponding to fixed assets (note 23-D). These commitments no longer exist at 31 December 2019.
(3) Other commitments included in particular guarantees granted to administrations, share subscription commitments, and lease commitments
(€661 million at December 31, 2018). The effects of first application of IFRS 16 “Leases” under the simplified retrospective approach are
presented in note 2-A2. Lease commitments at December 31, 2019 now only relate to leases that are outside the scope of IFRS 16 or exempt
from the accounting treatment prescribed by IFRS 16.

Assets pledged as guarantees by the Sales Financing segment for management of the liquidity reserve are presented in note 15-
B.


A2 – Contingent liabilities
Group companies are periodically subject to tax inspections in the countries in which they operate. Accepted tax adjustments are
recorded as provisions in the financial statements. Contested tax adjustments are recognized on a case-by-case basis, taking
into account the risk that the proceedings or appeals undertaken may be unsuccessful. Tax liabilities are recognized via provisions
when there are uncertainties over the determination of taxes.
Under a customs agreement between Brazil and Argentina for the automotive industry, which was introduced in 2008 and
amended in June 2016, imports of vehicles and spare parts for the Argentinean automotive sector are exempt from customs
duties as long as the average ratio of imports to exports with Brazil is below 1.5 over the period July 2015 to June 2020 (this ratio
could be raised to 1.7 from June 30, 2019). The amount of customs duties potentially due retroactively may be up to 75% of the
customs duties on cars and 70% of the customs duties on spare parts in excess of the ratio, using a calculation that covers the
entire automotive sector.
This agreement was again amended in September and December 2019: the ratio for the period July 2015 to June 2020 was
raised from 1.5 to 1.7, and higher ratios were set for later periods up to June 30, 2029.
The ratio for the sector as a whole was below 1.7 for the period July 1, 2015 to November 30, 2019, and consequently no provision
has been recognized by the Group.
Disposals of subsidiaries or businesses by the Group generally include representations and warranties in the buyer's favour. At
December 31, 2019, the Group had not identified any significant risk in connection with these operations.
Following partial sales of subsidiaries in previous years, Renault holds put options covering some or all of the residual investment
retained. The exercise of these options would not have a significant impact on the Group’s consolidated financial statements.
Group companies are periodically subject to investigations by the authorities in the countries in which they operate. When the
resulting financial consequences are accepted, they are recognized in the financial statements via provisions. When they are
contested, they are recognized on a case-by-case basis, based on estimates that take into account the risk that the proceedings
or appeals undertaken may be unsuccessful.
The main investigations by the competition and automotive regulations authorities in progress at December 31, 2019 concern
illegal agreements and the level of vehicle emissions in Europe.
On January 9, 2019 the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato) fined RCI Banque
€125 million, and Renault SA is jointly liable for payment of the fine. The Group is contesting the grounds for this fine and intends
to appeal against the decision. Renault considers that the probability of the decision being cancelled or fundamentally amended
by a court order is high. Due to the large number of variables affecting the amount of the fine, if upheld, it is impossible to reliably
estimate the amount that could be payable at the end of the proceedings. No provision was recognized in connection with this
matter at December 31, 2019. On April 3, 2019 Renault’s application for suspension of the payment was accepted, with
arrangement of a bank guarantee. The next court hearing is scheduled for February 26, 2020.



103
In the ongoing “emissions” affair in France, Renault is aware that a formal legal investigation was opened on January 12, 2017
at the request of the Paris public prosecution office. This stage in the procedure was seen as an indication that the French
prosecution office wished to pursue this matter. No provision was recognized at December 31, 2019 or December 31, 2018.
Beginning in March 2016, Renault decided to roll out a plan to reduce nitrogen oxide (NOx) emissions by its Euro 6b vehicles by
applying new factory calibrations for vehicle production, and a corresponding €20 million provision was recognized for vehicles
manufactured before this decision. A step-up in this plan was decided in October 2017, leading to recognition of an additional
€24 million provision. At December 31, 2019 the balance of the provision is €8 million (compared to €23 million at December 31,
2018).
Group companies are also subject to the applicable regulations regarding pollution, notably of soil and ground water. These
regulations vary depending on the country of location. Some of the associated environmental liabilities are potential and will only
be recognized in the accounts if the activity is discontinued or the site closed. It is also sometimes difficult to determine the amount
of the obligation reliably. Provisions are only established for liabilities that correspond to a legal or constructive obligation at the
closing date, and can be estimated with reasonable reliability.


28 – B. Off-balance sheet commitments received and contingent assets

December 31, 2019 December 31, 2018
(€ million)

Sureties, endorsements and guarantees received 2,671 2,629

Assets pledged or mortgaged 3,790 3,739
(1)


Buy-back commitments 4,832 3,961
(2)


Other commitments 43 26
(1) The Sales Financing segment receives guarantees from its customers in the course of sales financing for new or used vehicles. Guarantees
received from customers amount to €3,727 million at December 31, 2019 (€3,374 million at December 31, 2018). In addition, AVTOVAZ
received €13 million in real estate property rights and ownership rights as guarantees of loans, and €49 million in rights to vehicles as guarantees
of customer receivables (€12 million and €78 million respectively at December 31, 2018).
(2) Commitments received by the Sales Financing segment for sale to a third party of rental vehicles at the end of the rental contract.

Off-balance sheet commitments received concerning confirmed opened credit lines are presented in note 23.




104
NOTE 29 – FEES PAID TO STATUTORY AUDITORS AND THEIR NETWORK
The fees paid to the Group’s Statutory Auditors and their networks are reported in section 6.3.3 of the 2019 Universal Registration
Document.




105
NOTE 30 – SUBSEQUENT EVENTS
After the selection process conducted by the governance and compensation committee, on 28 January 2020 at a meeting chaired
by Jean-Dominique Senard, the Board of Directors decided to appoint Luca de Meo as Chief Executive Officer of Renault SA and
Chairman of Renault s.a.s, with effect from 1 July 2020.
Clotilde Delbos, Interim Chief Executive Officer of Renault SA, will continue to exercise her functions until Luca de Meo takes up
the post. The Board of Directors also gave a favourable opinion for her appointment as Deputy Chief Executive Officer of Renault
SA from July 1, 2020.




106
NOTE 31 – CONSOLIDATED COMPANIES
A. Fully consolidated companies (subsidiaries)

Renault Group’s interest (%) Country December 31, 2019 December 31, 2018
Renault SA France Consolidating company Consolidating company

AUTOMOTIVE (EXCLUDING AVTOVAZ)

France

Renault s.a.s. France 100 100

Auto Châssis International (ACI) Le Mans France 100 100

Auto Châssis International (ACI) Villeurbanne France 100 100

Alliance Média Ventures France 100 100
(1)
Carizy France 96 -

Fonderie de Bretagne France 100 100

IDVE France 100 100

IDVU France 100 100

Maubeuge Construction Automobile (MCA) France 100 100

Renault Environnement France 100 100

Renault Mobility As an Industry (1) France 100 -

Renault Retail Group and subsidiaries France 100 100

Renault Samara France 100 100

RDREAM France 100 100

Renault Sport Racing s.a.s. France 100 100
(1)
Renault Venture Capital France 100 -

SCI Plateau de Guyancourt France 100 100

SNC Renault Cléon France 100 100

SNC Renault Douai France 100 100

SNC Renault Flins France 100 100

SNC Renault Sandouville France 100 100

Société des Automobiles Alpine Caterham France 100 100

Société de Transmissions Automatiques (STA) France 100 100

Société de Véhicules Automobiles de Batilly (SOVAB) France 100 100

Société Immobilière de Construction Française pour 100 100
France
l’Automobile et la Mécanique (SICOFRAM) and subsidiary

Société Immobilière Renault Habitation (SIRHA) France 100 100

Société Immobilière d’Epone France 100 100

Société Immobilière pour l’Automobile (SCIA) France 100 100

SODICAM 2 France 100 100

Sofrastock International France 100 100

Technologie et Exploitation Informatique (TEI) France 100 100

Europe

Renault Deutschland AG and subsidiaries Germany 100 100

Renault Österreich GmbH Austria 100 100

Renault Belgique Luxembourg and subsidiary Belgium 100 100

Renault Industrie Belgique (RIB) Belgium 100 100

Renault Croatia Croatia 100 100

Renault Espagne Commercial SA (RECSA) and 100 100
Spain
subsidiaries

Renault España SA Spain 100 100

Renault Hungaria Hungary 100 100



107
Renault Irlande Ireland 100 100

Renault Italia and subsidiary Italy 100 100

Motor Reinsurance Company Luxembourg 100 100

Renault Group b.v. Netherlands 100 100

Renault Nederland Netherlands 100 100

Renault Polska Poland 100 100

Cacia Portugal 100 100

Renault Portuguesa and subsidiary Portugal 100 100

Renault Ceska Republika Czech Republic 100 100

Grigny Ltd. United Kingdom 100 100

Renault Retail Group UK United Kingdom 100 100

Renault Sport Racing Limited United Kingdom 90 90

Renault UK United Kingdom 100 100

Renault Slovakia Slovakia 100 100

Renault Nissan Slovenija d.o.o. Slovenia 100 100

Revoz Slovenia 100 100

Renault Nordic and subsidiary Sweden 100 100

Renault Développement Industriel et Commercial (RDIC) Switzerland 100 100

Renault Finance Switzerland 100 100

Renault Suisse SA Switzerland 100 100

Americas

Groupe Renault Argentina and subsidiaries Argentina 100 100

Renault Do Brasil LTDA Brazil 100 100

Renault Do Brasil SA Brazil 100 100

Cormecanica Chile 100 100
(1)
Renault CSC SAS Colombia 100 -

Sociedad de Fabricacion de Automotores (SOFASA) Colombia 100 100

Renault Corporativo SA de C.V. Mexico 100 100

Renault Mexico Mexico 100 100

Africa – Middle East – India – Asia-Pacific

Vehicle Distributors Australia Australia 100 100

Renault Samsung Motors South Korea 80 80

Renault Treasury Services PTE Ltd. Singapore 100 100

Renault Algérie Algeria 100 100

Renault India Private Ltd. India 100 100

Renault Maroc Morocco 80 80

Renault Maroc Services Morocco 100 100

Renault Tanger Exploitation Morocco 100 100

Renault Tanger Méditerranée Morocco 100 100

Société Marocaine de Construction Automobile (SOMACA) Morocco 97 77

China

JMEV (1) China 50 -
(1)
JMEVS China 50 -

Renault Beijing Automotive Company China 100 100

Eurasia

Renault Nissan Bulgaria Bulgaria 100 100

DACIA Romania 99 99

Renault Mécanique Romania SRL Romania 100 100



108
Renault Commercial Roumanie Romania 100 100

Renault Technologie Roumanie Romania 100 100

CJSC Renault Russie Russia 100 100

Oyak-Renault Otomobil Fabrikalari Turkey 52 52

Renault Ukraine Ukraine 100 100

SALES FINANCING

France

Diac S.A. France 100 100

Diac Location S.A. France 100 100

RCI Banque S.A. and subsidiaries France 100 100

Europe

RCI Versicherungs Services GmbH Germany 100 100

RCI Financial Services S.A. Belgium 100 100

Renault AutoFin S.A. Belgium 100 100

Overlease Spain 100 100

RCI ZRT Hungary 100 100

ES Mobility SRL Italy 100 100

RCI Insurance Ltd. Malta 100 100
RCI Life Ltd. Malta 100 100

RCI Services Ltd. Malta 100 100

RCI Financial Services b.v. Netherlands 100 100

Renault Leasing Polska Sp. z.o.o. Poland 100 100

RCI Gest Seguros – Mediadores de Seguros Portugal 100 100

RCICOM, SA Portugal 100 100

RCI Finance CZ s.r.o. Czech Republic 100 100

RCI Financial Services s.r.o. Czech Republic 50 50

RCI Financial Services Ltd United Kingdom 100 100

RCI Services UK Limited (1) United Kingdom 100 -

RCI Finance S.A. Switzerland 100 100

Americas

Courtage S.A. Argentina 100 100

Rombo Compania Financiera Argentina 60 60

Administradora de Consorcio Renault Do Brasil Brazil 100 100

RCI Brasil S.A. Brazil 60 60

RCI Brasil Serviços e Part. Lt (1) Brazil 100 -

Corretora de Seguros RCI Do Brasil Brazil 100 100

RCI Colombia S.A. Compania de Financiamiento Colombia 51 51

RCI Servicios Colombia S.A. Colombia 100 100

Africa – Middle East – India – Asia-Pacific

RCI Financial Services Korea South Korea 100 100

RCI Finance Maroc Morocco 100 100

RDFM Morocco 100 100

Eurasia

RCI Broker De Asigurare Romania 100 100

RCI Finantare Romania Romania 100 100

RCI Leasing Romania IFN Romania 100 100

OOO RN FINANCE RUS Russia 100 100




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AVTOVAZ

Europe

LADA International Ltd Cyprus 68 68

Alliance Rostec Auto B.V. Netherlands 68 68

Eurasia

SOAO Minsk-Lada Belarus 38 38

PAO Avtovaz Russia 68 68

LLC Lada Izhevsk Russia 68 68

OOO PSA VIS-AVTO Russia 68 68

OOO PPPO Russia 68 68

AO Lada-Imidzh Russia 68 68

AO Lada-Servis Russia 68 68

OAO Izh-Lada Russia 68 67

AO ZAK Russia 68 68

AO Piter-Lada Russia 61 61

AO Samara-Lada Russia 48 48

AO Yakhroma-Lada Russia 59 59

AO Lipetsk-Lada Russia 45 45

AO Oka-Lada Russia 59 59

AO STO komsomolskaya Russia 53 53

AO Tyumen-Lada Russia 68 68

AO Tsentralnaya STO Russia 68 68

AO JarLadaservis Russia 64 64

AO Avtosentr-Togliatti-VAZ Russia 34 34

AO Bryansk Lada Russia 51 51

OOO LIN Russia 68 68

AO Kostroma-Lada-Servis Russia 65 43

AO Kursk-Lada Russia 49 49

OOO Lada Sport Russia 68 68

AO Saransk-Lada Russia 61 61

AO Smolensk-Lada (2) Russia - 41

AO Cheboksary-Lada Russia 63 63

OOO Sockultbit-AVTOVAZ Russia 68 68
(2)
AO Dal-Lada Russia - 46
(3)
ZAO GM-AVTOVAZ Russia 68 -

JV Systems (1) Russia 68 -

Other AVTOVAZ subsidiaries Russia 34 to 68 34 to 68

(1) Newly consolidated companies in 2019 (note 3-A).
(2) Companies sold and removed from the scope of consolidation in 2019.
(3) Previously accounted for under the equity method.


B. Companies consolidated based on the percentage interest in each balance sheet and income statement
item (joint operations)

Renault Group’s interest (%) Country December 31, 2019 December 31, 2018
Renault Nissan Technology and Business Centre India
India 67 67
Private Limited (RNTBCI) (1)

(1) The Group holds 50% of the voting rights of the Indian company RNTBCI.




110
C. Companies accounted for by the equity method (associates and joint ventures)

Renault Group’s interest (%) Country December 31, 2019 December 31, 2018
AUTOMOTIVE EXCLUDING AVTOVAZ

South Africa
Renault South Africa 40 40

Algeria
Renault Algérie Production 49 49

Germany
Tokai 2 GmbH (1) 15 -

China
EGT New Energy Automotive Company Ltd. 25 25

China
Dongfeng Renault Automotive Company 50 50

China
Renault Brillance Jinbei Automotive Company Ltd. 49 49

France
Boone Comenor 33 33

France
(1)
Alliance Mobility Company France 50 -

France
INDRA INVESTISSEMENTS SAS 50 50

France
Les Editions Croque Futur and subsidiaries 35 40

France
Tokai 1 (1) 15 -

India
Renault Nissan Automotive India Private Limited 30 30

Japan
(1)
Alliance Mobility Company Japan 50 -

Japan
Nissan Group 44 44

Netherlands
Alliance Ventures B.V. 40 40

Turkey
Motorlu Araclar Imal ve Satis A.S (MAIS) 49 49

SALES FINANCING

Renault Crédit Car Belgium 50 50

Nissan Renault Financial Services India Private Limited India 30 30

RN SF B.V. Netherlands 50 50

BARN b.v. Netherlands 30 30

RN Bank Russia 30 30

Orfin Finansman Anonim Sirketi Turkey 50 50

AVTOVAZ

Ferro VAZ GmbH Germany 34 34

ZAO GM-AVTOVAZ (2) Russia - 34

CSC ARMENIA-LADA Armenia 34 34

(1) Companies first consolidated in 2019 (note 3-A).
(2) Fully consolidated in 2019.



In application of regulation 2016-09 of December 2, 2016 issued by the French Accounting Standards Authority (Autorité des
Normes Comptables), the Group makes the following information available to third parties on its website group.renault.com, in
the “Documents & Presentations” section of the “Finance” pages (1) from the date of publication of the 2019 Universal Registration
Document:

a full list of consolidated companies;
-
a list of companies classified as “unconsolidated investments”, namely:
-
investments in companies not controlled exclusively by Renault, which are included in non-current financial
o
assets (note 22);
investments in companies that are controlled exclusively by Renault and not consolidated, which are classified
o
as other current assets (note 17).




111