Accounting for the Economic Reality of the Renault-Nissan Alliance

Overview
This case focuses on the financial accounting representation of the long-running strategic alliance
between the auto companies Renault and Nissan. The broad scope and innovative aspects of this
alliance have been the focus of much discussion and analysis in the strategic management literature.

Required
1. Read through pages 3-15 of the case where Renault describes the objectives and structure of the
Renault-Nissan Alliance.
a. What is the organizational structure of the alliance?
b. What are the direct economic linkages between the distinct companies Renault and
Nissan and how do these links work to sustain cooperation between the distinct entities?
c. How does the alliance purport to create value for the individual companies?
2. Examine Renault’s balance sheet, income statement and Note 12 to the financial statements.
a. How does Renault account for its direct economic investment in Nissan?
b. How much of Renault’s 2021 pre-tax net income is attributable to its direct economic
investment in Nissan?
c. Where is the value generated by the entity called Renault-Nissan B.V. (RNBV) reflected
in Renault’s results of operations?
3. In note 12, section C, Renault discusses “neutralization” of Nissan’s investment in Renault.
Why is such “neutralization” necessary to properly report the economics of Renault’s direct
investment in Nissan?
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 Information about
the company, the
General presentation Sustainable Corporate Risk and Financial capital and the Annual general Additional
of Renault Group development governance control statements share ownership meeting information

General presentation of Renault Group

1.1.2 Activities
01
The Group’s activities have been organized into three Structure of Renault Group
main types of operating activities in 134 countries:
(as % of shares issued)
● Automotive, with the design, manufacture and
distribution of products through its distribution network
(including the Renault Retail Group subsidiary): Renault
S.A
● new vehicles, with several ranges (PC, LCV and EV)
marketed under five brands: Renault, Dacia, Alpine,
Mobilize and LADA,
● used vehicles and spare parts,
the Renault powertrain range, sold B2B; Nissan
●
Dacia
Motor
Sales Financing (RCI Bank and Services and its 99.4 %
● 43.4 %
subsidiaries): sales financing, leasing, maintenance and
service contracts;
● Mobility Services (Mobilize brand): flexible, sustainable
Renault
and innovative mobility and energy solutions for the s.a.s
benefit of electric vehicle users. 100 %

In addition, Renault has equity investments

in the following two companies: Other
RCI Lada Auto Mobility Industrial and
● Renault’s equity investment in Nissan; Banque Holding L.L.C services Commercial
100 % 67.69 % 100 %(1) companies
● Renault’s equity investment in AVTOVAZ.
The investment in Nissan is consolidated under the equity
method in the Group’s financial statements, and the
investment in AVTOVAZ is fully consolidated. AVTOVAZ
100 %

AVTOVAZ Automotive Sales Financing Mobility Services

Associated companies Not included in the

. scope consolidation
(1) Including joint ventures and subsidiaries with minority interests

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1 Renault Group
General presentation of Renault Group

1.1.9.2. Detailed organization chart of the consolidated Group

as of December 31, 2021

15 %
RENAULT SA

100 %

RENAUL s.a.s
43,4 %
NISSAN MOTOR
AUTOMOTIVE
100 %

NISSAN FINANCE CO., Ltd. FRANCE

Société de
100 %
Groupe Renault
Transmissions Boone Comenor Real Estate
RDIC Metalimpex
Automatiques Financing
33,03 %
0,10 % 1,13 % 1,20 % 1,09 % 1,15% 1,09 % Société des
Renault 100 %
Sirha (1) Automobiles Sodicam 2 SCIA
Renault Renault Renault Renault Renault Renault Environnement*
Alpine
Electricity DREAM Flins Douai Sandouville Cléon 100 % 99,89 % 100 % 100 %
99,90 % 98,87 % 98,80 % 98,91 % 98,85 % 98,91 %
100 % 100 % Immobilière 55,08 %
Technologie et d’Epône (1)
100 % 100 % Fonderie de RDIC ACI
Exploitation
100 % Bretagne Le Mans (1)
Informatique 44,89 %
Renault Renault 100 % 100 % 100 % 100 %
Simcra SICOFRAM*
Retail Group* SW Labs
Mobilize Verkor Whylot ACI
Ventures Villeurbanne (3) 1%
Mauberge
IDVE (1) SOVAB (1) I-DVU Construction 100 % 23,64 % 21,28 % SCI
99 %
Automobile (1) Plateau de
99,98 % 100 % 100 % 100 % 50 % 50 % 15 % Guyancourt
Alliance Mobility Tokai 1 & 2
HyVia Company France SOFEMA

2,40 %
Renault Groupe Renault
100 %
Samara Cash
Management

100 % Renault Finance 100 %

Sofrastock (Sweden &
Singapore)

100 % Alpine Racing

S.A.S.
100 %
Renault EUROPE
Group BV 100 %
Alliance Renault Renault Renault Nissan Renault
(Netherlands) Renault Renault Renault Nordic Renault
Ventures B.V. Österreich GmbH Belgium Hrvatska Group B.V.
100 % Italia* Ireland AB (Sweden) Espana SA*
(Netherlands) (Austria) (1) Luxembourg (1) (Croatia) (Netherlands)
Renault 40 % 99,93 % 99,85 % 100 % 100 % 100 % 100 % 99,78 %
100 %
Ceska Republika 60 % 60 % 60 % 100 % 100 % 100 % 71,71 %

100 % Renault Renault UK Renault Renault Nissan

DeutschlandAG* Renault (United Switzerland Slovenija Revoz Cacia Renault RECSA*
Renault (Slovania) Portugal (1)
(Germany) Nederland NV Kingdom) S.A. (Slovania) (Portugal) (Spain) (1)
Slovensko
(Slovakia) 40 % 40 % 40 % 100 % 28,29 %
100 % Mobility Trader
Grigny UK Ltd 3,24 %
Motor Reinsurance RDIC 90 % Alpine Holding GmbH
Comapny (United (Germany)
(France) Racing Ltd
(Luxembourg) Kingdom)
100 %
100 %
AMERICAS
Renault
Hungaria 13,19 %
Renault Cormecanica* Renault Renault CSC Renault do 98,22 % Renault do 27,66 % 99,43 %
SOFASA*
100 % Renault SA
Mexico (1) (Chile) (1) Argentina* SAS (Colombia) Brasil Com. E. Brasil S.A. (Colombia) (1)
Particip. Ltda
Renault
Polska
100 % 100 % 86,81 % 100 % 1,78 % 99,92 % 72,34 %

AFRICA
MIDDLE-EAST

Renault Renault
Renault
Algeria Morocco
Algeria
Production Service
100 % 49 % 100 %

80 % 91,53 % 99,99 % 100 %

Renault
8% SOMACA Renault Tanger Renault Tanger
Commerce
(Morocco) Exploitation (1) Méditerranée
Morocco

ASIA
PACIFIC

50 % 100 %
25 % 49 %
Renault Beijing EGT New Energy Renault Brilliance
JMEV Automotive
(China) Automotive Jinbei Automotive
Company (China) Company Ltd. Company Ltd.
100 % 100 % (China) (China)
KFEVS JMEVS
50 % Alliance Mobility
(China) (China)
Company Japan
Renault Renault
80,04 %
Group BV Samsung Motors
(Netherlands) (South Korea)
30 % 66,67 %
Renault Nissan
Renault Nissan
Technology and
Automotive India
Business Centre
Private Limited
India Private
(India)
Limited (India)
Renault India 0,31 %
Private Limited
(India) (1)
99,69 %
0,01 % RDIC (France)
EURASIA 1,31 % 1%
OYAK Renault Renault Renault 48,95 % Automobile
Renault Nissan Renault Renault MAIS Renault (1) Commercial Mécanique Technologie Dacia S.A.
Bulgaria Russia (1) Ukrania (Turkey) (Turkey) Romania(1) Romania Romania(1) (Romania)
100 % 99,97 % 100 % 49 % 51 % 99,99% 99 % 50,74 %

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General presentation of Renault Group

01

AVTOVAZ SALES FINANCING MOBILITY SERVICES

100 %

EURASIA FRANCE
RCI Banque and
its subsidiaries
67,69 % 67,69 % 100 %

Lada Auto ARABV FRANCE Renault Mobility

Holding 100 % 100 % Diac Location as an Industry
Bipi Mobility Diac SA
100 % France SA
100 % Class & co 100 % 100 %
PAO Avtovaz EUROPE Glide.io
SAS

100 % 100 % 4,97 % Mobility Trader EUROPE

Bipi Mobility SL Bipi Mobility SL Holding GmbH 10,13 %
(Spain) (Spain) (Germany) Flit Technologies 63,86 % Coolnagour
100 %
99,98 % 100 % Ltd Limited t/a iCabbi
(United Kingdom) (Ireland)
AO PSA RCI Versicherungs 100 % 100 % Renault Credit
AO Lada-Servis AUTOFIN 50,1 %
VIS-AVTO (2) Services GmbH Car
(Belgium) (1) (Belgium)
(Germany) 100 % 100 %
100 % 90,26 %
100 % Coolnagour UK SCT Systems
AO Piter-Lada Limited Limited t/a DiSC
OOO PPPO 50 %
RCI Financial RCI Services UK (United Kingdom) (United Kingdom)
ES Mobility SRL 100 % 100 %
100 % Services S.A. Limited Car Sharing
(Italy)
100 % (Belgium) (1) (United Kingdom) Mobility Services
LLC Lada OAO Izh-Lada RCI Financial 100 %
50 % RN SF B.V. 60 % BARN B.V.
Izhevsk Services B.V.
(Netherlands) (Netherlands) (Netherlands) AMERICAS
70,83 %
100 %
AO Samara-Lada RCI Insurance 100 % 100 % RCI Finance
AO Lada-
Ltd (Malta) (1) iCabbi Canada, 100 % 100 % iCabbi USA,
Imidzh S.A. (Switzerland)
Incorporation Incorporation
86,96 %
100 % RCI Financial 100 %
100 % AO Yakhroma- RCI Life Ltd RCI Services 100 % 50 % Services s.r.o. Mobile Knowledge Original
Lada (Malta) (1) Ltd (Malta) (1) 100 %
OOO LIN (Czech Rep) Systems Inc Software
66,70 % (Canada) Ltda (Brazil)
RCI GEST SEGUROS - 100 % RCICOM S.A. 100 % 100 % RCI Finance
AO Lipetsk- Mediadores CZ s.r.o.
100 % (Portugal) (Czech Rep.) ASIA
Lada de Seguros,
OOO LADA Lda. (Portugal) PACIFIC
Sport 79,03 % RCI Financial
Overlease SA 100 % 100 % Services Ltd
AO STO (Spain) (United Kingdom)
100 % komsomolskaya iCabbi Australia 100 %
OOO Sockultbit- RCI Leasing PTY LTD
RCI Zrt 100 % 100 %
AVTOVAZ 100 % Polska
(Hungary) (Poland)
AO Tsentralnaya
100 % STO RCI Broker de 100 % RCI Finantare 100 % 100 % RCI Leasing
LADA Asigurare S.R.L. Romania Romania IFN S.A.
International 51 %
(Romania) (Romania) (Romania)
Ltd AO Avtosentr- 100 %
56,15 % Togliatti-VAZ AFRICA
SOAO MIDDLE-EAST Elto Holding
75,81 %
Minsk-Lada
AO Bryansk ORFIN Finansman
Lada 50 % 40 %
100 % Anonim Sirketi
Elto France
100 % (Turkey) (1)
JV Systems
AO Kostroma- Nissan Renault 30 % 100 % RCI Finance 100 % RDFM
Lada-Servis Financial Services 51%
Morocco S.A. (Morocco) Elto BeLux
100 % India Private Limited
72,97 %
Autres Avtovaz AMERICAS 100 %
AO Kursk-Lada Elto UK
RCI Colombia S.A.
RCI Brasil Corretora de Administradora RCI Servicios Compañía De
100 % Servicios e Seguros RCI de Consorcio RCI Colombia S.A. Financiamiento
Part. Lt (Brazil) do Brasil (Brazil) Brasil (Brazil) (1) (Colombia) (Colombia) 51 % Elto DACH
AO Cheboksary-
100 % 100 % 99,92 % 100 % 51 % GmbH
Lada
60,11 %
100 % 100 % Elto Italy S.r.l.
Banco RCI Rombo Compania 60 % Groupe Renault
AO Tyumen- 95 % Courtage S.A. 5%
Brasil S.A. Financiera Argentine
Lada (Argentina)
(Brazil) (Argentina) (Argentina)
60 % Elto Iberia
ASIA Sociedad
PACIFIC Limitada

RCI Financial 100 %

Services Korea
(Korea)

EURASIA

100 % RN Bank 100 %

OOO RN Finance
RUS (Russia) (Russia)

Fully consolidated companies

Contribution from associated companies

Companies consolidated according to percentage of participation

of each element of the balance sheet and profit and loss account

Percentages correspond to the share of capital held.

You are remIndiad that this may differ from the percentage ownership.

(1) Other subsidiaries holdings of less than 1%.

(2) Third-party holdings of less than 1%.

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1 Renault Group
General presentation of Renault Group

1.1.10 History of the Group

1898
The Renault Frères company is founded. Novembre 1994 2005-2006
The French government opens Renault Over these two years, Fernando Alonso
to outside capital, a first step toward takes the world title at the wheel of
privatization, which takes place in a Renault. Thanks to these victories,

1945 July 1996. the Renault F1 Team is named World

Constructors’ Champion.
The Company is nationalized and
becomes the Régie Nationale des Usines
Renault and concentrates on producing
1998
the 4CV.
Coinciding with Renault’s centenary,
2008
the Technocentre is inaugurated Renault acquires 25% of the shares of
in Guyancourt, France. This engineering the carmaker AVTOVAZ, a leader on the
center is intended to bring together Russian market with the LADA brand.
all the actors involved in designing
the brand’s new models.

2010
1999 ●● Unveiled at the Paris Motor Show,
Renault and Nissan sign an agreement the DeZir concept car marks the
serving as the basis for a cooperation resurgence of Renault’s design
combining cross-shareholding and strategy spearheaded by Laurens
industrial collaboration. Renault van den Acker. It represents the first
acquires a 36.8% stake in Nissan. petal (Love) of the daisy in the life
The Renault‑Nissan alliance is born. cycle, on which this strategy is based.

1972
Launch of the Renault 5: one of the 2000
Group’s best-selling models ever. After Dacia, Renault acquires a 70.1%
stake in Samsung Motors and thus
forms Renault Samsung Motors, which
produces and sells vehicles in Korea.

2003 ●● The Alliance and Daimler AG sign

The year of the MEGANE II, with five a long-term strategic cooperation
different bodies added to the two models agreement. Daimler holds 3.1% of
launched in 2002, seven models are Renault and Nissan shares, and
launched in 17 months and the MEGANE Renault and Nissan each hold 1.55%

1984
becomes the best-selling car in Europe. of the Daimler shares.

Launch of the Renault ESPACE: the first

crossover van in the Company’s history.

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General presentation of Renault Group

01
2019
2013 2017 ●● Creation of a new business line for
mobility services: Renault M.A.I
●● The ZOE, an all-electric car, is launched. ●● The Group unveils SYMBIOZ. This
(Mobility as an Industry)
concept car illustrates the vision of
Groupe Renault for the automobile ●● Launch of the New ZOE, the third
and its place in society between now generation of Europe’s best-selling
and 2030. electric city car, which has extended
its range (up to 395 km).
●● Creation of eGT New Energy
Automotive Co. Ltd, a new joint ●● Launch of the TRIBER in India, a brand
venture (Renault 25%, Nissan 25% new spacious and ultra-modular
Dongfeng 50%) to develop zero- model that can accommodate up to
emission mobility in China. seven adults in a length of less than
four meters, a world first specially
●● Groupe Renault and Brilliance China
designed for the Indian market.
Automotive sign an agreement for
the creation of a joint venture for ●● Arrival of E-TECH hybrid technology
●● 2013 is also marked by the signature the manufacture and sale of light on the CLIO E-TECH Hybrid and the
of a joint venture between Renault commercial vehicles in China in three CAPTUR E-TECH Plug-in Hybrid
and the Chinese automaker segments and three brands – Jinbei,
Dongfeng, forming the DRAC Renault and Huasong.
(Dongfeng Renault Automotive
Company). This signature paves the
way for the construction of a new 2020
plant in Wuhan. ●● New cooperative business model for the
Alliance.
●● Drive to electrify the range with Twingo Electric
(100% electric) and the E-TECH hybrid engine

2015
on the Clio (hybrid), Captur and Mégane
(rechargeable hybrid).
●● Unveiling of Dacia Spring, the least expensive
●● ALPINE celebrates 60 years of 100% electric small city car on the market.
motorsport passion by unveiling its
●● The Group unveils Mégane eVision, the show car
new ALPINE Celebration show car,
based on the Alliance’s CMF-EV platform.
developed specially for the Le Mans
race.

2018
●● The three robot vehicle concepts,
EZ‑GO, EZ-PRO and EZ-ULTIMO,
illustrate the Group’s vision for urban,
shared mobility of the future.
●● Renault celebrates its 120 YEARS
OF MOBILITY: a new era dawns
in the world of transport but our
vision remains steadfast: provide
sustainable mobility for all, today and
tomorrow.

2016
●● After DeZir in 2010, Renault unveils
TreZor, its new concept car.
●● Japanese carmaker Mitsubishi joins
the Renault-Nissan alliance.

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General presentation of Renault Group

1.2 The Alliance

1.2.1 Overview
The Alliance between the Renault and Nissan groups The Alliance has proven its leadership in zero-emission
constitutes the most sustainable and productive vehicles and is developing the innovative technologies of
multicultural strategic collaboration in the automotive tomorrow’s autonomous, connected and affordable vehicles.
industry. For more than 20  years, this partnership has
The Alliance aims to create value for each partner and for
offered a unique, pragmatic and agile model, always
all stakeholders (employees, customers, suppliers, etc.).
able to evolve and integrate new projects and partners.
Extended to Mitsubishi group, it forms the largest
automotive alliance in the world.

1.2.2 History
On March  27, 1999, Renault and Nissan Motor Co. Ltd Pursuant to Article  L.  233-31 of the French Commercial
(‘Nissan’) entered into the founding agreement of the Code, the Renault shares held by Nissan Finance Co. Ltd.
Alliance, the Alliance and Equity Participation Agreement are not taken into account in the calculation of the
(the ‘AEPA’). Under the provisions of the AEPA, Renault quorum, and do not confer voting rights, i.e., the voting
acquired a 36.8% stake in Nissan’s share capital and rights attached to such shares cannot be exercised at
subscribed for share subscription warrants that enabled Annual General Meetings.
it to increase its stake first to 39.9% and then to 44.4% of
In application of the RAMA, Renault-Nissan B.V. (“RNBV”)
Nissan’s capital. For its part, Nissan was given the
was formed on March 28,  2002. This Amsterdam-based
opportunity to acquire a stake in Renault in the future.
company has been owned equally by Renault and
Nissan’s turnaround and the Alliance’s rapid success Nissan since 2002. It was formed to coordinate the
led the partners to take a new step forward by common activities on a global scale and contribute to
accelerating the implementation of their financial the preparation of the Alliance’s strategy and mid and
agreements, and further institutionalizing their long-term planning (see section  1.2.3.2 “Powers of
commercial and industrial cooperation. RNBV”).
Accordingly, on December 20, 2000, Renault and Nissan In the context of the increase by the French State’s
entered into the Alliance’s second framework stake in the share capital of Renault in 2015 and then the
agreement, the “Alliance Master Agreement” (the introduction of double voting rights, the Board of
“AMA”), which was reiterated and updated on March 28, Directors of Renault authorized, on December 11, 2015,
2002, in the “Restated Alliance Master Agreement” (the the signing of the following agreements, which the
“RAMA”). Annual General Meeting approved on April 29, 2016:
Under the AMA and then the RAMA, Renault ● a governance agreement entered into on February 4,
strengthened its stake in Nissan, and Nissan acquired a 2016, between Renault and the French State, aimed at
15% stake in Renault’s share capital: restricting the free exercise of the French State’s
voting rights for certain decisions submitted to
● on March 1, 2002, Renault increased its stake in Nissan
Renault’s Annual General Meeting.
from 36.8% to 44.4%; on April 6, 2010, a share exchange
agreement between Renault, Nissan and Daimler This agreement is described in section  6.2.6.2
resulted in Renault’s stake in Nissan decreasing from “Shareholders” agreements on shares and voting
44.4% to 43.4% at the same time as Daimler entered rights of the Company; and
the capital of Renault and Nissan; and
● a third amendment to the RAMA, signed on
● on March 29, 2002, and May 28, 2002, Nissan increased December  11, 2015, between Renault and Nissan that
its stake in Renault to 15% through two capital enshrines in particular the constant practice of non-
increases reserved to Nissan Finance Co. Ltd., a wholly interference of Renault in the governance of Nissan.
owned subsidiary of Nissan.

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On November 2, 2017, the French State sold the 14  million On March 12, 2019, Renault, Nissan, and Mitsubishi Motors
Renault shares acquired in 2015. On that occasion, and in formed the Alliance Operating Board, the body that
accordance with applicable regulations, Renault bought
back 1,400,000  shares (i.e., 10% of the shares sold by the
oversees operations and, in practice, performs the
governance functions of the Alliance, signaling a new
01
French State) with the aim of implementing an offer beginning for the world's leading automotive alliance.
reserved for employees and former employees of the
In 2020, the three partner companies reaffirmed that the
Group.
Alliance is essential for strategic growth and improving
The agreements concluded between with the French their respective competitiveness. Thus, on May  27, 2020,
State and Nissan remain in force. the Alliance announced the adoption of a new business
model for cooperation.
43.4 % 34 %
Alliance partners use the leader-follower model to
enhance the efficiency and competitiveness of vehicles
MITSUBISHI
and technologies.
RENAULT 50 % RENAULT-NISSAN 50 % NISSAN
B.V. MOTORS Each member becomes a reference in the regions where it
has the best strategic assets, and acts as a facilitator and
15 % provider of support for the competitiveness of the others.
The three members build on the Alliance’s existing
On October 20, 2016, Nissan, which is 43.4% owned by strengths, such as joint purchasing, by leveraging their
Renault, acquired a 34% stake in Mitsubishi Motors, thus respective leadership positions and geographic strengths
becoming its largest shareholder. to support their partners’ development.
The acquisition of Mitsubishi Motors by Nissan enabled
the expanded Alliance to consolidate its industrial
position.

1.2.3 Functioning of the Alliance in 2021

1.2.3.1. The Alliance Operating Board The Alliance Operating Board’s General Secretary,
Véronique Sarlat-Depotte, appointed in April  2021, is
The Alliance Operating Board, created on March 12, 2019, is tasked with coordinating and facilitating the Alliance’s
in charge of operational coordination between Renault, major projects launched to accelerate the operating
Nissan and Mitsubishi Motors and will take new initiatives efficiency of the respective companies. and reports to the
that will create value for their respective shareholders and Alliance Operating Board.
employees. The Alliance Operating Board is assisted by specific
This new Alliance Operating Board comprises four operating committees that make recommendations on new
members, appointed by Renault (two members, including sources of value creation between the three carmakers.
the Chairman of the Alliance Operating Board), by Nissan During 2021, Alliance members were always at the
(1 member), and by Mitsubishi Motors (1 member). forefront of the industry in terms of their performance,
As of December 31, 2021, the Alliance Operating Board was products, technologies and markets, while continuing to
composed of Jean-Dominique Senard, Chairman of the benefit from joint purchasing and development. During
Board of Directors of Renault and Chairman of the the AOB from May to July, three Alliance Strategy Days
Alliance Operating Board, Makoto Uchida, Chief Executive were implemented to share product opportunities, take
Officer of Nissan, Luca de Meo, Chief Executive Officer of stock of platforms, the EV strategy, electronic equipment
Renault, and Takao Kato, Chief Executive Officer of packaging, and major technologies such as batteries.
Mitsubishi Motors (following the resignation and death of Opportunities were clearly identified, the work plan was
Osamu Masuko in August 2020). established, and technical roadmaps were recognized
The decisions of the Alliance Operating Board are made and shared.
by all members by consensus. The Alliance Operating A global product plan for 2025 (ICE + xHEV + BEV), 80%
Board meets monthly, and as often as the Alliance’s based on common platforms, is being rolled out, as is the
interest requires, in Paris or Yokohama, or by BEV-specific product plan, increased to 90% by common
videoconference when necessary. platforms (vs. 0% at the end of 2020).
The Alliance Operating Board oversees the operations and Regarding the future battery strategy, the Alliance is
performs the governance functions of the Alliance. In any converging towards shared common technology/cost/
event, RNBV continues to exist and supports the Alliance capacity roadmaps. For a next generation of electric
Operating Board, particularly for decisions and proposals vehicles, the Alliance has selected a single supplier to
that fall within the power of RNBV under the RAMA. produce its batteries for Renault and Nissan in France, the
UK, Japan and China.

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1 Renault Group
General presentation of Renault Group

With regard to connectivity, the Alliance plans to market Five common EV platforms: the largest global
connected vehicles and associated services based on a
common electronic equipment packaging, all coupled
offer of the industry
with an unprecedented launch: GAS (Google Automotive Renault, Nissan and Mitsubishi have pioneered the
Services), the world’s first for a general manufacturer, EV market, with more than €10 billion already invested in
which will expand more widely in all ranges in the the field of electrification. In the main markets (Europe,
coming years. Japan, the US, China), 15 Alliance plants already produce
parts, motors, batteries for 10  EV models on the streets.
The Alliance is also strengthening its regional/local
More than one million electric cars have been sold to
cooperation in certain countries such as Russia. In Europe,
date and 30 billion kilometers driven.
for example, Renault is working closely with MMC on
several cross-badging projects in the B-segment with Building on this unique expertise, the Alliance is
regular follow-up meetings and milestones. accelerating with a total €23  billion more investment in
the next five years on electrification, leading to 35 new
An “Alliance Com” event was held on January 27, 2022,
EV models by 2030.
during which Renault, Nissan and Mitsubishi Motors
announced a common roadmap for 2030 (described 90% of these models will be based on five common EV
below) dedicated to electric vehicles and smart and platforms, covering most markets, in all major regions:
connected mobility, sharing investments for the benefit
● CMF-AEV, the most affordable platform in the world, is
of its three members and their customers.
the base for the new Dacia Spring.
● KEI-EV, (mini vehicle) platform family for ultra-
Alliance vision for 2030 compact EVs.
Moving together for the benefit of each: ● LCV-EV, family platform family for professional
customers, as the base for the Renault Kangoo and
the Leader-Follower strategy Nissan Town Star.
The Alliance members have developed a “smart ● CMF-EV, the global, flexible EV platform will be on the
differentiation” methodology that defines the desired roads in a few weeks as the base for the Nissan Ariya
level of commonality for each vehicle, integrating and Renault Megane E-TECH Electric. The CMF-EV
several parameters of possible pooling, such as platform, with its technological innovations and the
platforms, production plants, powertrains or vehicle potential offered by its modularity, is a benchmark
segment. This is supplemented and enhanced by a platform for a new generation of electric vehicles for
stricter approach to design and upper-body the Alliance partners. The platform has been created
differentiation. For example, the common platform for to integrate and optimize all the elements specific to a
the C and D segment will carry five models from three 100% electric powertrain, hosting a new, high-
brands of the Alliance (Nissan Qashqai and X-Trail, performance motor and an ultra-thin battery. By 2030,
Mitsubishi Outlander, Renault Austral and an upcoming more than 15 models will be based on the CMF-EV
seven-seater SUV). Strengthening this process, the platform, with up to 1.5  million cars produced on this
Alliance members will enhance usage of common platform per year.
platforms in the coming years from 60% today to more
● CMF-BEV, the most competitive compact electric
than 80% of its combined 90 models in 2026. This will
platform in the world, to be launched in 2024.
allow each company to deepen their focus on their
It provides up to 400  km range; its aerodynamics
customers’ needs, their best models and core markets,
performances are outstanding, helping reduce cost by
while also extending innovations across the Alliance, at
33% and power consumption by more than 10%
a lower cost.
compared with the current Renault ZOE. It will be the
As part of this, Mitsubishi Motors will reinforce its base for 250,000 vehicles a year under the Renault,
presence in Europe with two new models, among them Alpine and Nissan brands. Among the vehicles are the
the New ASX based on Renault best-sellers. Renault R5 and the new compact EV that will replace
the Nissan Micra. Designed by Nissan and engineered
by Renault, the new model is planned to be
manufactured at Renault ElectriCity: the electric
industrial center in northern France.

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General presentation of Renault Group

Common battery strategy, breakthrough battery recycling and achieving efficient and sustainable
solutions over the full battery life cycle.
innovations and a planned 220 GWh production
capacity: bringing the most attractive offer 01
25 million cars connected to the Alliance Cloud
in the market to all customers
by 2026: the best-in-class digital experience
Competitiveness is key, and that has led member
companies to a common Alliance battery strategy,
for customers
especially through the selection of a common battery Intelligent and connected mobility are critical areas for
supplier for Renault Group and Nissan in core markets. increased shared innovation across the Alliance.
The Alliance is working with common partners to achieve With 20 years’ experience in ADAS (advanced driver-
real scale and affordability, enabling a reduction of battery assistance systems) and autonomous driving, the Alliance
costs by 50% in 2026 and 65% by 2028. keeps improving real-world driving safety, convenience,
By 2030, the Alliance will have a total of 220 GWh battery and enjoyment by delivering innovations in intelligent
production capacity around the world. vehicle and driver-assistance technologies, with an
example being Nissan’s award-winning ProPILOT system.
Beyond that, the Alliance shares a common vision for all-
solid-state battery technology (ASSB). Based on its deep With shared platforms and electronics, by 2026 Alliance
expertise and unique experience as a pioneer in battery members expect to have more than 10 million vehicles on
technology, Nissan will lead innovations in this area that the road across 45 Alliance models equipped with
will benefit all Alliance members. autonomous driving systems.

ASSB will double the energy density versus current liquid Today, 3  million vehicles are already connected to the
lithium-ion batteries. Charging time will also be greatly Alliance Cloud with ongoing data exchanges.
reduced to one third, enabling customers to make longer By 2026, more than 5 million Alliance cloud systems will be
trips with more comfort. delivered per year, with a total of 25  million connected
The aim is to mass produce ASSB by mid-2028 and, in the cars on the road. The Alliance will also be the first global,
future beyond that, to realize cost parity with ICE vehicles mass-market OEM to introduce the Google ecosystem in
by bringing costs down further to $65 per kWh, its cars.
accelerating the global shift to EVs. Under Renault’s leadership, the Alliance is developing a
The Alliance also has a state-of-the art battery common centralized electrical and electronic architecture
management system. Unlike others in the industry, the converging electronics hardware and software applications
Alliance has chosen to control 100% of its hardware and to offer maximum benefits and an optimal level of
software, benefiting from very valuable predictive data, performance.
allowing for monitoring the state of health of the battery The Alliance will launch its first full software defined
and improving technology. vehicle by 2025. With this vehicle, the Alliance will improve
The Alliance is working with strategic partners to offer the the performance of its cars ‘Over The Air’ throughout their
best solutions to customers for public charging. Mobilize life cycle. This will mean greater value added for
Power Solutions provides to B2B customers a complete customers, in particular with the integration of the car into
end-to-end service including project design, installation, their digital ecosystem to offer them a personalized
maintenance and management of optimized recharging experience, new enhanced services and reduced
infrastructure and all related services to meet their maintenance costs. This will also allow Alliance members
business needs. to boost vehicle resale values. In addition, these vehicles
will be able to communicate with connected objects,
A recent agreement is with Ionity via the Alliance Emobility users, and infrastructure, opening new fields of value for
Service Provider Plug Surfing, which will allow its the Alliance companies.
customers to access at preferential pricing to the Ionity
ultra-fast charging network in Europe. The Alliance’s unique digital experience will be the
gateway to an unprecedented amount of data, paving the
With more than 10 years’ experience in the EV business, way to the automotive industry’s next frontier, with
Alliance members have deep knowledge that allows them Renault Group, Nissan Motors and Mitsubishi Motors
to be ahead of the competition in optimizing battery positioned at the forefront of this revolution.
reuse, notably with second-life battery applications,

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1 Renault Group
General presentation of Renault Group

1.2.3.2. Renault-Nissan B.V. (RNBV)

Since 2002, under the RAMA, RNBV has had decision- ● approval of product plans (phase of strategic projects
making and recommendation powers that it exercises in corresponding to the design, manufacturing and sale
consensus with each partner and in compliance with of current or future products, vehicles and
their interests. components);
These decision-making and recommendation powers ● decisions concerning the sharing of products and
are exercised in areas that affect Alliance-wide strategy powertrains (such as platforms, vehicles, gearboxes,
and planning. engines and other components);
Furthermore, RNBV has control over Alliance Purchasing ● principles of financial policy, including:
Organization (APO), created in April  2001 under the ● discount rates used for profitability studies and
corporate name Renault-Nissan Purchasing hurdle rates, applicable to future models and
Organization (RNPO), of which RNBV has been the sole investments,
shareholder since June 24, 2003. ● risk management rules and the policy applicable to
RNBV does not intervene in the operational them,
management of Renault or Nissan and does not share in ● financing and cash management rules,
the profits or bear the associated risks. Operational ● debt leverage strategy;
decisions are made and implemented by each company
● management of common subsidiaries, and the
to the extent that such company is affected by them.
creation, modification, steering and disbandment of
This company is not consolidated due to its non- Cross-Company Teams (CCTs) and Functional Task
significant nature in accordance with the accounting Teams (FTTs). These teams operate in all the main
principles described in note  2-C of the consolidated sectors and areas of activity and are tasked with
financial statements presented in section 5.2.2.6.2. exploring new synergies between the two companies.
Team managers report regularly to the Alliance Board
on the progress made in their specific area of activity;
Powers of RNBV
and
In accordance with the RAMA and Article  15 of the ● any other subject or project assigned to RNBV on a
Renault s.a.s articles of association, Renault and Nissan joint basis by Nissan and Renault.
have delegated certain powers to RNBV pursuant to a
management agreement signed on April 17, 2002, for an
initial period of 10 years (the “Management Agreement”). RNBV also has the exclusive power to propose a set of
decisions to Renault and Nissan. Both manufacturers
In April 2012, the Management Agreement was renewed remain free to follow those proposals or not.
for another 10-year period pursuant to an agreement
entitled Renewal Agreement of the Management These proposals relate to:
Agreement, the provisions of which are identical to ● creation and scope of joint subsidiaries;
those of the Management Agreement (the “Renewal
● supplementary financial incentive schemes for
Agreement of the Management Agreement”). Renault’s
management;
shareholders were informed of this at Renault’s 2012
Annual General Meeting. ● significant changes in scopes involving total
expenditure of $100 million or more;
The Management Agreement will expire on April 16, 2022.
● strategic investments exceeding $500 million; and
Any renewal of the Management Agreement will be
communicated to the Renault shareholders. ● strategic cooperation between Nissan or Renault and
third parties.
At the end of the Management Agreement, RNBV will still
have the decision-making and recommendation
powers listed in the RAMA. However, these decisions will Governance of RNBV
no longer be directly applicable within Renault s.a.s. and The functioning of the Management Board of RNBV is
will have to be formally ratified by the governance described in Articles  14 et seq. of the RNBV articles of
bodies of Renault s.a.s. on a case-by-case basis. association.
The list of RNBV powers under the RAMA is restrictive A French translation of the RNBV articles of association
and has not changed since the creation of the Alliance. is available on the Renault website.
First and foremost, RNBV has decision-making powers The composition of the Management Board of RNBV has
that cover: always followed a principle of balance in the
● adoption of 3, 5 and 10 year plans (strategic Company representation of Renault and Nissan.
projects, with quantified data);

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Pursuant to the RNBV articles of association and the Likewise, the Chairman and the Vice-Chairman each have
RAMA, the Management Board comprises 10 members: the power to represent RNBV vis-à-vis third parties.
● five members are appointed by Renault, the “R All decisions affecting the Alliance are made in the 01
Members”, including Renault’s Chief Executive Officer, common interest of Renault and of Nissan. In the event
who holds the title of “Chairman and CEO”, i.e., that a member of the Management Board finds itself in a
Chairman of the Management Board of RNBV; situation where there is a conflict of interest in the
● five members are appointed by Nissan, the “N decision-making process, he or she shall abstain from
Members”, including Nissan’s Chief Executive Officer taking part in the decision.
who holds the title of “Vice-Chairman”, i.e., Vice- The implementation of the orientations defined by RNBV
Chairman of the RNBV Management Board. and all of the resulting operational decisions remain
within the exclusive competence of Renault, which is
The Chairman and the Vice-Chairman of the Management represented by its Board of Directors and the executives
Board of RNBV have four votes each, and the other authorized to represent the Company.
members of the Management Board have one vote each. Beyond the areas falling within RNBV’s competence,
In the event of a tie, the Chairman has a casting vote. Renault is entirely free to conduct its activities, and all
All decisions of the Management Board are made by decisions relating to the operational, commercial,
simple majority of the votes of the members present or financial and social management of the company are
represented. made by its management and administrative bodies
acting autonomously and independently.
Pursuant to the RNBV articles of association, the
Management Board has the power to represent RNBV in
relation to third parties.

1.2.4 Strategic cooperation

The Alliance has demonstrated its ability to cooperate with In 2018, Mitsubishi Motors was fully integrated into the
various partners. These strategic cooperations make it cooperation with Daimler. The cooperation between the
possible to increase economies of scale, accelerate growth Alliance and Daimler now covers projects developed on
in new regions, gain access to new technologies, share three continents. The key projects in which Renault is
costs and jointly fund research and development of next- currently participating are as follows:
generation vehicles and engines. Existing and potential
● Renault and Daimler have developed a joint platform for
partners of the Alliance especially appreciate its ability to
SMART and TWINGO. The 2- and 4-seater SMART
deepen collaboration over several business cycles.
Electric was launched in 2017, followed by the Twingo
The Alliance’s most significant strategic collaboration is Electric in 2020. The electric engines are being built at
by far the one with the premium manufacturer Daimler in the Renault plant in Cléon. The battery of the electric
April 2010. SMART is produced by a Daimler subsidiary, Deutsche
ACCUmotive, in Kamenz, Germany, and the TWINGO
This cooperation is managed by a Cooperation Committee
battery is produced in Novo Mesto (Slovenia);
co-chaired by Jean-Dominique Sénard, Chairman of the
Alliance Operating Board, and Ola Källenius, Chairman of ● Renault developed a small light commercial vehicle
the Management Board of Daimler AG and CEO of based on KANGOO for Daimler. This vehicle, named
Mercedes-Benz AG, comprises the senior executives of CITAN, has been manufactured in the Renault
Renault, Nissan, Mitsubishi Motors and Daimler. This Maubeuge plant since 2012. The successors of KANGOO
committee, which meets several times per year, ensures and CITAN in thermal version were launched in 2021, and
the implementation of the agreed projects and makes the electrical version is currently being developed;
proposals for new ones. No specific areas of potential ● the Alliance and Daimler have jointly developed a
collaboration are excluded. When teams suggest projects direct-injection turbocharged small gasoline engine
that could benefit all partners, they then launch feasibility family (1 L and 1.3 L). These new, more compact engines
studies. If senior executives and Board members of all feature state-of-the-art technology enabling
companies agree, then the project is approved. improvements in fuel economy, as well as significant
reductions in emissions. The new engines debuted in
Daimler, Renault and Nissan vehicles in late 2017.

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General presentation of Renault Group

1.2.5 Value of joint operations in 2021

Purchases by Renault Group from Nissan in 2021 totaled in 2020), €226  million of components (€277  million in 2020),
approximately €1,559  million (€1,361  million in 2020), and €127 million of services (€84 million in 2020).
comprising around €1,206 million of vehicles (€1,000 million

1.2.6 Alliance production sites

Geographical Renault Group
Country Nissan MMC
areas (incl. VAZ)

Vehicles Powertrain Vehicles Powertrain Vehicles Powertrain

Extended EUROPE France x x
England x x
Spain x x x x
Portugal x
Slovenia x
Turkey x x
Romania x x
RUSSIA+CIS Russia + CIS x x x
INDIA India x x
AMI Algeria x
Morocco x
South Africa x
Iran x
Egypt x
JAPAN Japan x x x x
CHINA China x x x x
SE ASIAN Thailand x x x x
Indonesia x x x
Australia x
Philippines x x
Vietnam x
ASIA other Korea x x
NAFTA USA x x
(North American Free Trade
Agreement) Mexico x x

AMERICAS Argentina x x
Brazil x x x x
Chile x
Colombia x

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General presentation of Renault Group

1.2.7 Nissan 2021 results

01
Nissan’s financial statements are prepared pursuant to The operating margin reached ¥191.3 billion for the period,
Japanese accounting standards, which differ from the representing a 3.1% margin on net revenues of ¥6.2 trillion.
standards used by Renault. The statements include Globally, Nissan sold 2.9 million vehicles in the first nine
intermediate operating results and some Nissan-specific months of the 2021 financial year, a 4.6% increase
indicators. In order to measure the contribution to Renault’s compared to last year.
results, Nissan’s financial statements are restated as
described in section  5, note  12 to the consolidated financial
statements. Nissan’s financial year starts on April 1 and ends
1.2.7.2. Nissan’s contribution
on March 31 of the following year. to Renault’s 2021
consolidated net income
1.2.7.1. Nissan 2021 financial year
Nissan’s contribution to Renault’s profit in 2021 was €380
after nine months million, compared to a loss of €-4,970 million in 2020,
Nissan's net income for the nine months ended December recorded in the financial statements as a share of the net
31, 2021 amounts to ¥201.3 billion (compared to a loss of ¥- income of companies accounted for by the equity method
367.7 billion for the nine months ended December 31, 2020). (see Chapter 5, note 12 of the consolidated financial
statements).

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Financial statements

5.2.2 Consolidated financial statements 05

5.2.2.1. Consolidated income statement
(€ million) Notes 2021 2020
Revenues 4 46,213 43,474
Cost of goods and services sold (37,526) (36,257)
Research and development expenses 10-A (2,365) (2,569)
Selling, general and administrative expenses (4,659) (4,985)
Other operating income and expenses 6 (265) (1,662)
Other operating income 6 728 181
Other operating expenses 6 (993) (1,843)
Operating income (loss) 1,398 (1,999)
Cost of net financial indebtedness 7 (308) (337)
Cost of gross financial indebtedness 7 (381) (355)
Income on cash and financial assets 7 73 18
Other financial income and expenses 7 (42) (145)
Financial income (expenses) 7 (350) (482)
Share in net income (loss) of associates and joint ventures 515 (5,145)
Nissan 12 380 (4,970)
Other associates and joint ventures 13 135 (175)
Pre-tax income 1,563 (7,626)
Current and deferred taxes 8 (596) (420)
NET INCOME 967 (8,046)
Net income – parent-company shareholders’ share 888 (8,008)
Net income - non-controlling interests’ share 79 (38)
Basic earnings per share* in € 3.26 (29.51)
Diluted earnings per share* in € 3.24 (29.51)
Number of shares outstanding (thousands)
for basic earnings per share 9 272,102 271,349
for diluted earnings per share 9 273,868 271,349
* Net income – parent-company shareholders’ share divided by the number of shares stated.

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Financial statements

5.2.2.3. Consolidated financial position

December 31, December 31,
05
(€ million) Notes 2021 2020
Assets
Non-current assets

Intangible assets and goodwill 10-A 6,398 6,347

Property, plant and equipment 10-B 16,167 17,135
Investments in associates and joint ventures 16,955 15,120
Nissan 12 16,234 14,618
Other associates and joint ventures 13 721 502
Non-current financial assets 22 373 1,253
Deferred tax assets 8 550 651
Other non-current assets 17 966 956
Total non-current assets 41,409 41,462
Current assets
Inventories 14 4,792 5,640
Sales Financing receivables 15 39,498 40,820
Automotive receivables 16 788 910
Current financial assets 22 1,380 1,181
Current tax assets 17 128 153
Other current assets 17 3,688 3,874
Cash and cash equivalents 22 21,928 21,697
Assets held for sale 3 129 -
Total current assets 72,331 74,275
Total assets 113,740 115,737

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5 Renault Group
Financial statements

December 31, December 31,

(€ million) Notes 2021 2020
Shareholders‘ equity and liabilities
Shareholders’ equity
Share capital 1,127 1,127
Share premium 3,785 3,785
Treasury shares (237) (284)
Revaluation of financial instruments 5 384
Translation adjustment (3,407) (4,108)
Reserves 25,159 31,876
Net income – parent company shareholders’ share 888 (8,008)
Shareholders’ equity – parent company shareholders’ share 27,320 24,772
Shareholders’ equity – non-controlling interests’ share 574 566
Total shareholders‘ equity 18 27,894 25,338

Non-current liabilities

Deferred tax liabilities 8 1,009 922

Provisions for pension and other long-term employee benefit obligations – long-term 19 1,355 1,544
Other provisions – long-term 20 1,291 1,356
Non-current financial liabilities 23 13,232 13,423
Provisions for uncertain tax liabilities – long-term 21 217 179
Other non-current liabilities 21 1,457 1,685
Total non-current liabilities 18,561 19,109
Current liabilities

Provisions for pension and other long-term employee benefit obligations – short-term 19 85 103
Other provisions – short-term 20 1,550 1,570
Current financial liabilities 23 3,605 3,924
Sales Financing debts 23 45,123 47,547
Trade payables 7,975 8,277
Current tax liabilities 21 266 221
Provisions for uncertain tax liabilities – short-term 21 6 6
Other current liabilities 21 8,493 9,642
Liabilities related to assets held for sale 3 182 -
Total current liabilities 67,285 71,290
Total shareholders‘ equity and liabilties 113,740 115,737

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Financial statements

Note 1 2
Investment in Nissan
Renault Group’s investment in Nissan in the income statement and financial position:
(€ million) 2021 2020
Consolidated income statement
Share in net income (loss) of associates accounted for by the equity method 380 (4,970)
Consolidated financial position
Investments in associates accounted for by the equity method 16,234 14,618

12-A. Nissan consolidation method

Renault Group and the Japanese automakers Nissan ● In March 2019, Renault Group, Nissan and Mitsubishi
and Mitsubishi have developed an alliance between their announced the creation of the new Alliance Operating
three distinct companies with common interests, uniting Board (AOB) which oversees Alliance operations and
forces to achieve optimum performance. The Alliance is governance. The Alliance Operating Board consists of
organized so as to preserve individual brand identities the Chairman of the Board of Renault Group, the Chief
and respect each company‘s corporate culture. Executive Officer of Renault Group, the Chief Executive
Officer of Nissan and the Chief Executive Officer of
Consequently:
Mitsubishi Motors. Orientations are taken by
● Renault Group is not assured of holding the majority consensus. In November 2019, the AOB appointed an
of voting rights in Nissan’s Shareholders’ Meeting. Alliance Secretary General, who reports to the AOB
● The terms of the Renault Group-Nissan agreements and the CEOs of the three alliance companies.
do not entitle Renault Group to appoint the majority ● At December 31, 2021, Renault Group occupied two
of Nissan directors, nor to hold the majority of voting seats on Nissan’s Board of Directors and was
rights at meetings of Nissan’s Board of Directors; represented by Jean-Dominique Senard, Chairman
Renault Group cannot unilaterally appoint the CEO of the Renault Group Board and Pierre Fleuriot,
of Nissan. Lead Director in Renault Group.

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Financial statements

● Renault Group can neither use nor influence the use In view of this situation, Renault Group is considered
of Nissan’s assets in the same way as its own to exercise significant influence over Nissan, and
assets. therefore uses the equity method to include its 05
● Renault Group provides no guarantees in respect of investment in Nissan in the consolidation.
Nissan’s debt.

12-B. Nissan consolidated financial statements included

under the equity method in the Renault Group consolidation
The Nissan accounts included under the equity are included in line with the Renault Group calendar
method in Renault Group’s financial statements are (the results for the period January to December are
Nissan’s consolidated accounts published in consolidated in Renault Group’s annual financial
compliance with Japanese accounting standards (as statements).
Nissan is listed on the Tokyo Stock Exchange), after
Nissan held 0.6% of its own treasury shares at
adjustments for the requirements of the Renault
December 31, 2021 (0.7% at December 31, 2020).
Group consolidation.
Consequently, Renault SA’s percentage interest in
Nissan publishes consolidated financial statements Nissan is 43.7% (43.7% at December 31, 2020). Renault
quarterly, and annually at March 31. For the purposes SA holds 43.7% of voting rights in Nissan at
of the Renault Group consolidation, Nissan results September 30, 2021 (43.7% at September 30, 2020).

12-C.  Changes in the investment in Nissan as shown in Renault Group’s

statement of financial position
Share in net assets
Neutralization proportional
Before to Nissan’s investment
(€ million) neutralization in Renault ⁽¹⁾ Net Goodwill Total
At December 31, 2020 14,860 (974) 13,886 732 14,618

2021 net income ⁽³⁾ 380 - 380 - 380

Dividend distributed - - - - -
Translation adjustment 616 - 616 (22) 594
Other changes⁽²⁾ 642 - 642 - 642
At December 31, 2021 16,498 (974) 15,524 710 16,234
(1) Nissan has held 44,358 thousand Renault SA shares since 2002, an ownership interest of about 15%. The neutralization is based on Renault SA’s percentage holding in
Nissan.

(2) Other changes include the change in actuarial gains and losses on pension obligations, the change in the financial instruments revaluation reserve and the change in
Nissan treasury shares.

(3) The 2021 net income includes an amount of €(130) million in relation to the September 29, 2021 judgment of the Dubaï Court of First Instance related to a vehicle
distribution agreement against NML and its consolidated subsidiary, Nissan Middle East FZE. Nissan has filed an appeal against this court judgment.

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5 Renault Group
Financial statements

12-D.  Changes in Nissan equity restated for the purposes of the Renault
Group consolidation
December31, 2021 net Translation Other December 31,
(¥ billion) 2020 income Dividends adjustment changes ⁽¹⁾ 2021
Shareholders' equity – Parent-company
3,674 120 - 319 158 4,271
shareholders’ share under Japanese GAAP
Restatements for compliance with IFRS:

Provision for pension and other long-term

employee benefit obligations 105 (30) - - (67) 8
Sale of Daimler shares ⁽²⁾ - (76) - - 76 -
Capitalization of development expenses 456 65 - 1 13 535
Deferred taxes and other restatements (143) 32 - 16 18 (77)
Net assets restated for compliance with IFRS 4,092 111 - 336 198 4,737

Restatements for Renault Group

requirements ⁽³⁾ 210 3 - (19) (6) 188
Net assets restated for Renault Group
requirements 4,302 114 - 317 192 4,925

(€ million)

Net assets restated for Renault Group

requirements 34,008 870 - 1,410 1,480 37,768

Renault SA’s percentage interest 43,7% 43,7%

Renault Group‘s share (before neutralization
effect described below) 14,860 380 - 616 642 16,498
Neutralization of Nissan’s investment
in Renault Group ⁽⁴⁾ (974) (974)
Renault Group‘s share in the net assets of
Nissan 13,886 380 - 616 642 15,524
(1) Other changes include the change in actuarial gains and losses on pension obligations, the change in the financial instruments revaluation reserve and
the change in Nissan treasury shares.
(2) The sale of the Daimler shares held by Nissan has been reclassified in other comprehensive income under IFRS (the same accounting treatment is
applied to the sale of the Daimler shares held by Renault SA (see Note 22-B)).
(3) Restatements for Renault Group requirements essentially correspond to revaluation of fixed assets by Renault Group for the acquisitions undertaken
between 1999 and 2002, and elimination of Nissan’s investment in Renault Group accounted for under the equity method.
(4) Nissan has held 44,358 thousand shares in Renault SA since 2002, an ownership interest of about 15%. The neutralization is based on Renault SA’s
percentage holding in Nissan.

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12-E. Nissan net income under Japanese GAAP

05
Since Nissan’s financial year ends at March 31, the the final quarter of its 2020 financial year and the
Nissan net income included in the 2021 Renault Group first three quarters of its 2021 financial year.
consolidation is the sum of Nissan’s net income for

January to April to July to October to January to

March 2021 June 2021 September 2021 December 2021 December 2021
Fourth quarter First quarter Second quarter Third quarter Reference period for
of Nissan’s 2020 of Nissan’s 2021 of Nissan’s 2021 of Nissan’s 2021 Renault’s consolidated
financial year financial year financial year financial year financial statements
(¥ billion) (€ million) (¥ billion) (€ million) (¥ billion) (€ million) (¥ billion) (€ million) (¥ billion) (€ million)

Net income –
Parent-company
shareholders’ share (81) (633) 115 868 54 417 33 251 120 903

12-F. Nissan financial information under IFRS

The table below presents Nissan financial adjustments of assets and liabilities applied by
information, restated under IFRS for the purposes of Renault Group at the time of the acquisitions in 1999
the Renault Group consolidation, for the twelve- and 2002, or the elimination of Nissan’s investment in
month period from January 1 to December 31 of each Renault Group accounted for under the equity
year. The restatements do not include the fair value method.

2021 2020
(¥ billion) (€ million) ⁽¹⁾ (¥ billion) (€ million) ⁽²⁾

Revenues 8,937 68,820 7,378 60,590

Net income

Parent-company shareholders’ share 134 1,032 (1,395) (11,458)

Non-controlling interests’ share (22) (169) 5 40
Other components of comprehensive income

Parent-company shareholders’ share 411 3,165 (142) (1,167)

Non-controlling interests’ share 70 539 (10) (79)
Comprehensive income

Parent-company shareholders’ share 545 4,197 (1,537) (12,624)

Non-controlling interests’ share 48 370 (5) (39)
Dividends received from Nissan - - - -

December 31, 2021 December 31, 2020

(¥ billion) (€ million) ⁽¹⁾ (¥ billion) (€ million) ⁽²⁾

Non-current assets 6,564 50,345 6,336 50,093

Current assets 10,159 77,918 10,432 82,475

Total assets 16,723 128,264 16,769 132,568

Shareholders’ equity
Parent-company shareholders’ share 4,756 36,478 4,115 32,535
Non-controlling interests’ share 414 3,175 357 2,823
Non-current liabilities 5,430 41,647 5,702 45,080
Current liabilities 6,123 46,963 6,594 52,130

Total shareholders‘ equity and liabilities 16,723 128,264 16,769 132,568

(1) Converted at the average exchange rate for 2021 i.e.129.86 JPY = 1 EUR for income statement items, and at the December 31, 2021 rate i.e.
130.38 JPY = 1 EUR for financial position items.
(2) Converted at the average exchange rate for 2020 i.e.121.78 JPY = 1 EUR for income statement items, and at the December 31, 2020 rate i.e.
126.49 JPY = 1 EUR for financial position items.

22 Renault Group I Universal registration document 2021

5 Renault Group
Financial statements

12-G. Hedging of the investment in Nissan

The Group has partially hedged the yen/euro private placements in bonds issued directly in yen on
exchange risk on its investment in Nissan since 1999. the Japanese Samurai bond market.
Details of this hedge are given in Note 25-B2.
In 2021 foreign exchange differences generated a
At December 31, 2021, the corresponding hedging favourable effect of €4 million (foreign exchange
operations totaled ¥18.3 billion (€140 million) of gains and losses offset each other in 2020).

12-H. Valuation of Renault Group’s investment in Nissan

at stock market prices
Based on the quoted price at December 31, 2021 of ¥556 valued at €7,812 million (€8,110  million at December 31,
per share, Renault Group’s investment in Nissan is 2020 based on the price of ¥560 per share).

12-I. Impairment test of the investment in Nissan

At December 31, 2021, the stock market value of the incorporating new medium-term forecasts for volumes
investment was 51.9% lower than the value of Nissan and exchange rates.
in Renault Group’s statement of financial position
The test result did not lead to recognition of any
(44.5% at December 31, 2020).
impairment on the investment in Nissan at December
In application of the approach presented in the Note on 31, 2021 and it is considered that a reasonably
accounting policies, an impairment test was carried out possible change in the main assumptions used
at December 31, 2021. An after-tax discount rate of should not result in a recoverable value lower than
6.53% and a growth rate to infinity (including the effect the book value of the investment in Nissan.
of inflation) of 1.47% were used to calculate value in use.
The same conclusion was reached following the
The terminal value was calculated under profitability
impairment test performed at December 31, 2020
assumptions consistent with Nissan’s past data and
applying an after-tax discount rate of 6.21% and a
conservative medium and long-term prospects,
growth rate to infinity (including the effect of inflation)
of 1.71%.

12-J. Operations between Renault Group and the Nissan Group

12-J1. Automotive (excluding AVTOVAZ) ● The balance of Renault Group receivables on the
Nissan group is €424 million at December 31, 2021
and Sales Financing (€463 million at December 31, 2020) and the
Renault Group and Nissan follow joint strategies for balance of Renault Group liabilities to the Nissan
vehicle and component development, purchasing, group is €607 million at December 31, 2021
production and distribution resources. This cooperation (€664 million at December 31, 2020).
is reflected in synergies that reduce costs. ● Finance: In addition to its activity for Renault Group,
The Automotive (excluding AVTOVAZ) segment is Renault Finance acts as the Nissan group’s
involved in operations with Nissan on two levels: counterparty in financial instrument trading to
hedge foreign exchange and interest rate risks.
● Industrial production: cross-over production of Renault Finance undertook approximately
vehicles and components in the Alliance’s €12.4  billion of forex transactions on the foreign
manufacturing plants: exchange market for Nissan in 2021 (€9.9  billion in
● Sales by Renault Group to the Nissan group in 2021 2020). Operations undertaken with Nissan on
totalled approximately €1,763 million (€1,785 million foreign exchange and interest rate derivatives are
in 2020), comprising around €1,065  million for recorded at market price and included in the
vehicles (€1,017 million in 2020), €579million for positions managed by Renault Finance. In the
components (€669 million in 2020), and €119 million balance sheet, the derivative assets on the Nissan
for services (€99 million in 2020). group amount to €11  million at December 31, 2021
● Purchases by Renault Group from the Nissan group (€36  million at December 31, 2020) and derivative
in 2021 totalled approximately €1,559  million liabilities amount to €34 million at December 31, 2021
(€1,361 million in2020), comprising around (€35 million at December 31, 2020).
€1,206 million of vehicles (€1,000  million in 2020), Renault Group’s Sales Financing segment helps to
€226 million of components (€277  million in 2020), attract customers and build loyalty to Nissan brands
and €127 million of services (€84 million in 2020). through a range of financing products and services
incorporated into the sales policy, principally in

Renault Group I Universal registration document 2021 23 www.renaultgroup.com