Groupe Renault - 2020 Universal Registration Document

382 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 Find out more at group.renault.com 04 CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS Breakdown of sales financing receivables by 15 - D - level of risk initial recognition, and receivables in default). For exposures that received extensions during the lockdown periods, the method consists of covering non-overdue outstanding amounts concerned Difficulties with recovery of receivables during the COVID-19 by current or previous moratoriums at the provision rate used for pandemic led to an increase in the impairment of receivables due to customer credit with higher risk since initial recognition. The Sales the higher amounts transferred to receivables in default, and an Financing segment also raised the provision estimate for the increase in the calculation parameters. In accordance with the forward-looking scenario concerning the customer segments most recommendation of ESMA, the Sales Financing segment did not severely affected by the crisis. The Sales Financing segment also always consider that payment date extensions granted raised the weighting of the “adverse” forward-looking scenario, systematically to a large population of outstanding receivables while continuing the higher weighting for the stability scenarios and should give rise to transfer of the receivables to the three stages of reducing the weighting of the most optimistic scenarios. risk (healthy receivables, receivables showing higher credit risk since (€ million) Financing for final customers Dealer financing December 31, 2020 Gross value 34,022 7,862 41,884 Healthy receivables 29,148 7,514 36,662 Receivables showing higher credit risk since initial recognition 4,170 284 4,454 Receivables in default 704 64 768 % of total receivables in default 2.1% 0.8% 1.8% Impairment (951) (113) (1,064) Impairment in respect of healthy receivables (226) (63) (289) Impairment in respect of receivables showing higher credit risk since initial recognition (252) (17) (269) Impairment in respect of receivables in default (473) (33) (506) Total net value 33,071 7,749 40,820 (€ million) Financing for final customers Dealer financing December 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 (173) (57) (230) Impairment in respect of receivables showing higher credit risk since initial recognition (167) (10) (177) Impairment in respect of receivables in default (407) (34) (441) Total net value 34,574 10,800 45,374 Exposure of sales financing to credit risk 15 - E - 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 €866 million at December 31, 2020 (€821 million at December 31, 2019). 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.