Groupe Renault - 2020 Universal Registration Document

395 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 Changes in financial liabilities and sales 23 - C - financing debts Changes in redeemable shares of the Automotive segments 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. Redeemable shares are stated at amortized cost, calculated by discounting the forecast interest coupons at the effective interest rate of the borrowing. At December 31, 2020, the Group revised the future interest flows on redeemable shares based on the most recent sales forecasts released on January 14, 2020 in the “Renaulution” strategic plan. The value of the redeemable shares was therefore adjusted downwards by €41 million, with recognition of corresponding income in Other financial income and expenses (see note 7). The interest of €20 million for 2020 (€20 million in 2019) is included in interest expenses. These shares were trading at €373.65 at December 31, 2020 and (€557 at December 31, 2019). The financial liability based on the stock market value of the redeemable shares at December 31, 2020 is €298 million (€444 million at December 31, 2019). Changes in bonds and other debts of the Automotive segments Under its EMTN program, Renault SA issued a Eurobond on November 25, 2020 with a nominal value of €1 billion, 5.5-year maturity and a 2.375% coupon. In 2020, Renault SA redeemed bonds for a total of €586 million. In 2020, the AVTOVAZ group repaid financial liabilities totaling €460 million and contracted new financial liabilities totaling €1,002 million. State-guaranteed credit facility of the Automotive segments On June 2, 2020, the Groupe Renault opened a credit line with a pool of five banks, for the maximum amount of €5 billion covered by a French State guarantee for 90% of the amount borrowed. The main characteristics of this credit line were the following: the maximum total credit was €5 billion, and it could be drawn in P whole or in part, on one or more times, until December 31, 2020; the initial maturity for each drawing was 12 months, and Renault P had the option to extend the maturity by a further three years, with repayment of one-third each year; the interest rate on each drawing was indexed on the 12-month P Euribor for the first year, then the 6-month Euribor for any extensions; early repayment after extension is possible for a principal amount P of at least €500 million. At December 31, 2020, €4 billion had been drawn on this credit line in three tranches: €2 billion drawn on August 5, 2020, €1 billion on September 22, 2020 and €1 billion on December 23, 2020. The remaining €1 billion credit is no longer available. The Group considers that this credit facility has been provided under normal market conditions, and consequently that no subsidy is to be recorded when a drawing is made on it. The borrowing is therefore recognized at its initial nominal value. For the initial recognition of the first two drawings, the Group considered itself able to repay these drawings without using the extension option, and the credit drawn was included in current liabilities. Due to the second lockdown in France which began in late October 2020, and the possible consequences of the second wave of the COVID-19 pandemic for the Group’s liquidity, the prospect of non-extension for these two drawings was revised at December 31, 2020, and this change in prospects was treated as a modification of the liability under IFRS 9 - paragraph B5.4.6. This led to an increase in the financial liability, with recognition of a corresponding financial expense of €69 million (see note 7 “Financial income (expenses)”). The third drawing was recognized from the outset on the basis that the extension option is likely to be exercised. If extended, these credit drawings will be repayable in one-third instalments in 2022, 2023 and 2024 on the anniversary dates of the initial drawings, with the possibility of early repayment of outstanding instalments at Groupe Renault’s initiative at each repayment date. No extension option has been exercised at December 31, 2020 and the three drawings are included in non-current financial liabilities. Changes in Sales Financing debts In 2020, RCI Banque group issued new bonds totaling €1,586 million with maturities between 2021 and 2027, and redeemed bonds for a total of €2,639 million. It also made three drawings during 2020 under the TLTRO III program, for the total amount of €1,750 million, maturing in 2023. Borrowings from credit institutions decreased as term loans matured. New savings collected rose by €2,797 million during 2020 (€1,712 million of sight deposits and €1,085 million of term deposits) to €20,508 million (€14,715 million of sight deposits and €5,793 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. Cash outflows on leases Changes in cash relating to leases totaled €261 million in 2020 (including €170 million of repayments of lease liabilities and €91 million of cash outflows for variable rents and low-value and very short-term leases benefiting from exemptions, determined by reference to the amount of lease payments in profit and loss, which provides a good approximation (see note 5-C)).