Groupe Renault - 2020 Universal Registration Document

405 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 For the Automotive segments , the impact on net income of a 100 base point rise in interest rates applied to financial instruments exposed to interest rate risks would be a favorable €91.3 million. Shareholders’ equity would be unaffected. For the Sales Financing segment , the overall sensitivity to interest rate risks in 2020 remained below the limit set by the RCI Banque group (€50 million at December 31, 2020). At December 31, 2020, a 100 base point rise in interest rates would have the following impacts on net income and shareholders’ equity (before taxes): +€4.3 million for items denominated in euros; P +€0.6 million for items denominated in Korean won; P +€0.5 million for items denominated in Swiss francs; P +€0.2 million for items denominated in Czech korunas; P -€0.6 million for items denominated in Brazilian real; P -€0.3 million for items denominated in pounds sterling; P -€0.1 million for items denominated in Polish zloty. P The sum of the absolute sensitivities in each currency amounts to €9.4 million. FIXED RATE/FLOATING RATE BREAKDOWN OF THE GROUP’S FINANCIAL ASSETS, AFTER THE EFFECT OF DERIVATIVES (€ million) December 31, 2020 December 31, 2019 Total Automotive excluding AVTOVAZ AVTOVAZ Mobility Services Sales Financing Total Automotive excluding AVTOVAZ AVTOVAZ Sales Financing Financial assets before hedging: fixed rate (a) 1,468 525 - - 943 2,015 67 - 1,948 Financial assets before hedging: floating rate (a’) 21,273 11,962 558 15 8,738 15,112 12,278 72 2,762 Financial assets before hedging 22,741 12,487 558 15 9,681 17,127 12,345 72 4,710 Hedges: floating rate/fixed (b) - - - - - - - - - Hedges: fixed rate/floating (b’) - - - - - - - - - Hedges - - - - - - - - - Financial assets after hedging: fixed rate (a+b-b’) 1,468 525 - - 943 2,015 67 - 1,948 Financial assets after hedging: floating rate (a’+b’-b) 21,273 11,962 558 15 8,738 15,112 12,278 72 2,762 Financial assets after hedging 22,741 12,487 558 15 9,681 17,127 12,345 72 4,710 FIXED RATE/FLOATING RATE BREAKDOWN OF THE GROUP’S FINANCIAL LIABILITIES, AFTER THE EFFECT OF DERIVATIVES (€ million) December 31, 2020 December 31, 2019 Total Automotive excluding AVTOVAZ AVTOVAZ Mobility Services Sales Financing Total Automotive excluding AVTOVAZ AVTOVAZ Sales Financing Financial liabilities before hedging: fixed rate (a) 34,580 12,204 251 18 22,107 34,979 7,604 328 27,047 Financial liabilities before hedging: floating rate (a’) 28,659 2,377 915 11 25,356 22,552 1,643 583 20,326 Financial liabilities before hedging 63,239 14,581 1,166 29 47,463 57,531 9,247 911 47,373 Hedges: floating rate/fixed (b) 10,302 - - - 10,302 8,631 95 - 8,536 Hedges: fixed rate/floating (b’) 8,583 164 - - 8,419 8,758 426 - 8,332 Hedges 18,885 164 - - 18,721 17,389 521 - 16,868 Financial liabilities after hedging: fixed rate (a+b-b’) 36,299 12,040 251 18 23,990 34,852 7,273 328 27,251 Financial liabilities after hedging: floating rate (a’+b’-b) 26,940 2,541 915 11 23,473 22,679 1,974 583 20,122 Financial liabilities after hedging 63,239 14,581 1,166 29 47,463 57,531 9,247 911 47,373 Equity risk B4 The Group’s exposure to equity risk essentially concerns the Daimler shares acquired in connection with cooperation agreements, and marketable securities indexed to share prices. The Group does not use equity derivatives to hedge these risks. The Group made no major changes to its equity risk management policy in 2020. The sensitivity to equity risks resulting from application of a 10% decrease in share prices to the financial assets concerned at the year-end would have an unfavorable impact of €95 million on shareholders’ equity. The impact on net income is not significant at December 31, 2020. Commodity risk B5 MANAGEMENT OF COMMODITY RISK Commodity purchase prices can change suddenly and significantly and cannot necessarily be passed on through vehicle sale prices. This may lead Renault’s Purchases department to hedge part of its commodity risks using financial instruments. These hedges are subject to volume, duration and price limits. In 2020, Renault undertook hedging operations on base metals and precious metals, within the limits validated by the CEO of Renault SA for a temporary period.