Groupe Renault - 2020 Universal Registration Document

55 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 01 OVERVIEW OF RENAULT AND THE GROUP 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 Results Net banking income (NBI) amounted to €1,955 million, down 6,7% compared to 2019. The contribution of Services activities to NBI continued to grow (+1.8% compared to last year) and now represents one-third of NBI. Operating expenses amounted to €585 million, or 1.25% of APA, representing an improvement of €11 million and one basis point compared to the previous year. With a cost-to-income income ratio of 29.9%, a slight increase of 1.4 point, RCI Bank and Services demonstrates its ability to adapt its operating expenses to the level of its activity and is fully committed to Groupe Renault’s fixed cost reduction plan. increase in the proportion of non-performing loans in assets. The Dealer business (financing for dealerships) was also negatively impacted by the updating of macroeconomic forecasts in the context of IFRS 9 forward-looking provisioning. It stood at 0.19% of APA in 2020 compared with a negative cost of risk of 0.09% (reversal of provisions) in 2019. The total cost of risk therefore stands at 0.75% of APA compared to 0.37% in 2019. The cost of risk for the Customer business (financing for private and business customers) rose to 0.89% of APAs in 2020 compared to 0.47% of APAs last year. This deterioration is explained by the increase in provisions following the negative repercussions of the lockdown policies on several sectors of the economy and the slight Pre-tax income stood at €1,003 million at the end of 2020, compared to €1,327 million in 2019. This decrease results mainly from the increase in the cost of risk for €176 million, from a negative currency effect of €36 million linked to the devaluation of the Brazilian real and the Argentine peso, and from the non-repetition of non-recurring positive impacts linked to disposals made in 2019. Consolidated net income - parent company shareholders' share - reached €787 million in 2020, compared to €903 million in 2019. RESULTS (€ million) 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 2017 2016 2018 2020 2019 912 1 , 077 1 , 215 1 , 327 1 , 003 602 721 858 18.2% 18.6% 19.2% 18.0% 14.4% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 903 787 (1) Net earnings after tax were impacted by deferred taxes of €47 M at end 2018. (2) Excluding the impact of deferred taxes, ROE reached 18.1% in 2018. (3) Excluding the impact of start-ups, ROE reached 17.6% in 2019 compared to 19.8% in 2018. ROE as a % Pre-tax profits in € million After-tax profits in € million Summary In 2020, commercial activity was negatively impacted by the health crisis. The decrease in the number of financing applications approved to retail and corporate customers led to a decrease in net assets at end. At the end of December 2020, these amounted to €47.2 billion, compared to €51.0 billion at the end of December 2019 (-7.5%). Consolidated equity amounted to €6,273 million compared to €5,702 million at the end of December 2019 (+10.0%).