Groupe Renault - 2020 Universal Registration Document

399 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 FINANCIAL LIABILITIES OTHER LIABILITIES (€ million) Notes December 31, 2020 Balance sheet value Fair value of financial liabilities at amortized cost Fair value level of financial liabilities at fair value Total Fair value through profit and loss Fair value through equity Amortized cost Tax liabilities (including current taxes due) 21 1,580 1,580 (1) Social liabilities 21 1,274 1,274 (1) Other liabilities and deferred income 21 8,681 8,681 (1) Trade payables 21 8,277 8,277 (1) Derivatives on financing operations of the Automotive segments 21 13 - 13 2 Renault redeemable shares 23 245 245 298 (2) Diac redeemable shares 23 14 14 1 Subordinated debts 23 876 876 876 (3) Bonds 23 24,241 24,241 24,241 (3) Other debts represented by a certificate 23 5,750 5,750 5,750 (3) Borrowings from credit institutions 23 11,066 11,066 11,066 (3) Lease liabilities in application of IFRS 16 23 694 694 694 (3) Other interest-bearing and non-interest-bearing borrowings 23 21,488 21,488 21,488 (3) Derivatives on financing operations of the Automotive segments 23 436 436 - 2 Derivatives on financing operations of the Sales Financing segment 23 84 12 72 2 TOTAL FINANCIAL LIABILITIES AND OTHER LIABILITIES 84,719 462 85 84,172 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 (1) approximation of their fair value. The fair value of Renault and Diac redeemable shares is identical to the stock market price. (2) The fair value of the Automotive segment’s financial liabilities and Sales Financing debts measured at amortized cost is essentially determined by discounting future cash (3) flows at rates offered to Renault at December 31, 2020 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. Changes in Level 3 financial instruments 24 - B - Level 3 financial instruments mainly correspond to investments in non-controlled entities (€46 million at December 31, 2020 and €66 million at December 31, 2019). 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. Impact of financial instruments on net income 24 - C - (€ million) Financial instruments other than derivatives Derivatives Total impact on net income Instruments measured at fair value through profit and loss Instruments measured at fair value through equity Instruments measured at amortized cost* Operating margin (1) (1) (169) 11 (160) Net financial income (expenses) (43) 15 (374) 8 (394) Impact on net income – Automotive segments (44) 14 (544) 19 (554) Operating margin 1 7 320 56 385 Impact on net income – Sales Financing segment 1 7 320 56 385 TOTAL GAINS (LOSSES) WITH IMPACT ON NET INCOME (43) 21 (223) 75 (169) Including financial liabilities subject to fair value hedges. * For the Automotive segments, the impact of financial instruments on the operating margin mainly corresponds to foreign exchange gains and losses on operating transactions. Fair value hedges 24 - D - (€ million) December 31, 2020 December 31, 2019 Change in fair value of the hedging instrument 51 74 Change in fair value of the hedged item (49) (80) Net impact on net income of fair value hedges 2 (6) Hedge accounting methods are described in note 2-X.