Groupe Renault - 2020 Universal Registration Document

352 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 Find out more at group.renault.com 04 CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS OPERATIONAL FREE CASH FLOW (€ million) 2020 Automotive (excluding AVTOVAZ) AVTOVAZ Intra-Automotive Transactions TOTAL AUTOMOTIVE Cash flows (excluding dividends from listed companies) before interest and tax 1,896 203 1 2,100 Changes in working capital before tax (1) (1,527) 233 (78) (1,372) Interest received by the Automotive segments 51 22 (4) 69 Interest paid by the Automotive segments (297) (81) 4 (374) Current taxes (paid)/received (127) (8) - (135) Acquisitions of property, plant and equipment, and intangible assets net of disposals (3,827) (250) 77 (4,000) Capitalized leased vehicles and batteries (839) - - (839) Operational free cash flow of the Automotive segments (4,670) 119 - (4,551) Payments for restructuring expenses (325) (14) - (339) Operational free cash flow of the Automotive segments excluding restructuring (2) (4,345) 133 - (4,212) Settlements of supplier payables covered by a reverse factoring program that are analyzed as financing operations are not included in the change in working capital, but in (1) cash flows from financing activities (see notes 2-A2 and 2-P). In 2020, such payments gave rise to an amount of €173 million (€127 million in 2019, classified under change in working capital). The definition of restructuring is presented in the introduction to note 4.2.6.1. and the amounts included in profit and loss for the period are presented in note 6-A. The (2) operational free cash flow excluding restructuring is presented due to the existence of a 2020 target for that performance indicator, initially announced in February 2020. In view of the COVID-19 pandemic, that target was suspended when the Universal registration document was filed in April 2020. (€ million) 2019 Automotive (excluding AVTOVAZ) AVTOVAZ Intra-Automotive Transactions TOTAL AUTOMOTIVE Cash flows (excluding dividends from listed companies) before interest and tax 4,739 240 (1) 4,978 Changes in working capital before tax 1,829 15 - 1,844 Interest received by the Automotive segments 73 5 - 78 Interest paid by the Automotive segments (301) (87) 1 (387) Current taxes (paid)/received (367) (11) - (378) Acquisitions of property, plant and equipment, and intangible assets net of disposals (4,846) (135) 1 (4,980) Capitalized leased vehicles and batteries (1,002) - - (1,002) Operational free cash flow of the Automotive segments* 125 27 1 153 The definition of Operational free cash flow is unchanged from 2019 and does not incorporate normative changes that occurred in 2020. * ROCE ROCE (return on capital employed) is an indicator that measures the profitability of capital invested. It is reported for the Automotive segments. The shares of entities in the Sales Financing segment, the Mobility Services segment, Nissan and Daimler are not included in the definition of capital employed by the Automotive segments. (€ million) December 31, 2020 December 31, 2019 Operating margin (1,311) 1,444 Normative tax rate 28% 28% Operating margin after tax (A)* (944) 1,040 Property, plant and equipment, intangible assets and goodwill 23,001 23,441 Investments in associates and joint ventures excluding Nissan 365 468 Non-current financial assets – equity investments excluding RCI Banque SA, Renault MAI and Daimler 43 64 Working capital (12,454) (14,182) Capital employed (B) 10,955 9,791 Return on capital employed (ROCE = A/B) (8.6)% 10.6% The approach used to determine ROCE includes a theoretical tax effect based on a normative tax rate of 28%. *