Groupe Renault - 2020 Universal Registration Document

427 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 04 RENAULT SA ANNUAL 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 The value of derivatives in an “Isolated Open Position” is adjusted to market value in the balance sheet at each year-end, via an entry to the translation adjustment account. If the market value indicates an unrealized loss, an equivalent provision is recognized in the income statement. The positive or negative difference between the spot price of the hedge and the forward price is spread over the duration of the hedge in the financial result. Assumptions and methods used Unrealized foreign exchange gains and losses correspond to the difference between the spot price and the year-end price. Net extraordinary items I. Extraordinary items are income and expenses resulting from events or transactions that are clearly distinct from the Company’s normal business operations, and are not expected to recur on a frequent or regular basis. Investment income and expenses 4.4.2.3 Income from securities and receivables relating to equity interests break down as follows: (€ million) 2020 2019 Dividends received from Nissan Motor Co. Ltd. 579 Dividends received from Daimler 15 54 Dividends received from Renault s.a.s 23 Dividends received from Dacia 44 52 Interest on loans 65 43 Allocations and reversals of provisions related to subsidiaries and affiliates 282 (260) TOTAL 406 491 The amount of interest on loans concerns all Group subsidiaries. Following the transfer of shares in Dongfeng Renault Automotive Company (DRAC) to Dongfeng Motor Corporation, impairment in the amount of €282 million was reversed. Derecognition of the shares (-€282 million) and the balancing payment of €122 million made to Dongfeng Motor Corporation were recorded as extraordinary items, a debt waiver for €33 million was recognized in other financial expenses following the repayment by Renault SA of a loan taken out by DRAC. The operation generated a loss of €155 million, which was recognized as an exceptional expense in the financial statements at December 31, 2020. Foreign exchange gains and losses 4.4.2.4 Foreign exchange gains and losses in 2020 amounted to €12 million (€1 million in 2019), and comprise the following: a foreign exchange gain of €2 million on treasury notes (mainly in P pounds sterling and US dollars;); a foreign exchange gain of €10 million on redemption of the P Samourai 19 bond. Other financial income and expenses 4.4.2.5 In 2020, other financial income and expenses, amounting to a net loss of €197 million (loss of €132 million in 2019) principally comprise interest paid and similar expenses totaling €189 million, and €4 million for impairment on treasury shares. Details of interest paid and other similar expenses are as follows: (€ million) 2020 2019 Net accrued interest after swaps on bonds* (78) (66) Net accrued interest after swaps on borrowings from credit institutions (9) (4) Accrued interest on termination of borrowings from subsidiaries (24) (19) Accrued interest on redeemable shares (20) (20) Other financial expenses (34) - Other (treasury notes and broker commissions) (24) (13) TOTAL (189) (122) The net interest on bonds comprises accrued and paid interest amounting to €78 million (€66 million in 2019); there was no accrued and received interest on swaps in either * 2020 or 2019.