Groupe Renault - 2020 Universal Registration Document

377 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 04 CONSOLIDATED FINANCIAL STATEMENTS GROUPE RENAULT GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY CORPORATE GOVERNANCE FINANCIAL STATEMENTS RENAULT AND ITS SHAREHOLDERS ANNUAL GENERAL MEETING OF RENAULT ON APRIL 23, 2021 ADDITIONAL INFORMATION Nissan financial information under IFRS 12 - F - The table below presents Nissan financial information, restated under IFRS for the purposes of the Renault consolidation, for the twelve-month period from January 1 to December 31 of each year. 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. 2020 2019 (¥ billion) (€ million) (1) (¥ billion) (€ million) (2) Revenues 7,378 60,590 10,316 84,520 Net income Parent company shareholders’ share (1,395) (11,458) 85 698 Non-controlling interests’ share 5 40 (14) (115) Other components of comprehensive income Parent company shareholders’ share (142) (1,167) (154) (1,264) Non-controlling interests’ share (10) (79) 23 185 Comprehensive income Parent company shareholders’ share (1,537) (12,624) (69) (566) Non-controlling interests’ share (5) (39) 9 70 Dividends received from Nissan - - 71 579 December 31, 2020 December 31, 2019 (¥ billion) (€ million) (1) (¥ billion) (€ million) (2) Non-current assets 6,336 50,093 7,877 64,597 Current assets 10,432 82,475 11,186 91,734 TOTAL ASSETS 16,769 132,568 19,063 156,331 Shareholders’ equity Parent company shareholders’ share 4,115 32,535 5,655 46,378 Non-controlling interests’ share 357 2,823 364 2,984 Non-current liabilities 5,702 45,080 5,345 43,828 Current liabilities 6,594 52,130 7,699 63,142 TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 16,769 132,568 19,063 156,331 Converted at the average exchange rate for 2020 i.e.121.78 JPY = 1 EUR for income statement items, and at the December 31, 2020 rate i.e. 126.49 JPY = 1 EUR for financial (1) position items. 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 (2) position items. Hedging of the investment in Nissan 12 - G - 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, 2020, the corresponding hedging operations totaled ¥18 billion (€145 million) of private placements in bonds issued directly in yen on the Japanese Samurai bond market. In 2020 these operations generated foreign exchange differences that offset each other in 2020 (they generated an unfavourable effect of -€70 million in 2019). Valuation of Renault’s investment in Nissan 12 - H - at stock market prices Based on the quoted price at December 31, 2020 of ¥560 per share, Renault’s investment in Nissan is valued at €8,110 million (€9,554 million at December 31, 2019 based on the price of ¥636 per share). Impairment test of the investment in Nissan 12 - I - At December 31, 2020, the stock market value of the investment was 44.5% lower than the value of Nissan in Renault’s statement of financial position (53.7% at December 31, 2019). In application of the approach presented in the note on accounting policies, 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 result did not lead to recognition of any impairment on the investment in Nissan at December 31, 2019 and it was considered that a reasonably possible change in the main assumptions used should not result in a recoverable value lower than the book value of the investment in Nissan.