Groupe Renault - 2020 Universal Registration Document

65 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 01 THE ALLIANCE 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 43.4% 50% 34% 15% RENAULT-NISSAN B.V. RENAULT NISSAN MITSUBISHI MOTORS 50% 1.55% 1.55% 3.1% 3.1% On October 20, 2016, Nissan, which is 43.4% owned by Renault, acquired a 34% stake in Mitsubishi Motors, thus becoming its largest shareholder. The acquisition of Mitsubishi Motors by Nissan enabled the expanded Alliance to consolidate its industrial position, the three manufacturers having a combined sales volume of more than 10.76 million units in 2018. On March 12, 2019, the Alliance Operating Board was set up. This is a body that oversees the operations and governance of the Alliance between Renault, Nissan and Mitsubishi Motors and heralds a new beginning for the world’s leading automotive alliance. Functioning of the Alliance in 2020 1.2.3 The Alliance Operating Board 1.2.3.1 The Alliance Operating Board, created on March 12, 2019, is in charge of operational coordination between Renault, Nissan and Mitsubishi Motors and will take new initiatives that will create value for their respective shareholders and employees. This new Alliance Operating Board comprises four members, appointed by Renault (two members, including the Chairman of the Alliance Operating Board), by Nissan (one member), and by Mitsubishi Motors (one member). As of December 31, 2020, the Alliance Operating Board was composed of Jean-Dominique Senard, Chairman of the Board of Directors of Renault and Chairman of the Alliance Operating Board, Makoto Uchida, Chief Executive Officer of Nissan, Luca de Meo, Chief Executive Officer of Renault, and Takao Kato, Chief Executive Officer of Mitsubishi Motors (following the resignation and death of Osamu Masuko in August 2020). The decisions of the Alliance Operating Board are made by all members by consensus, in accordance with the Alliance’s “win-win” principle. The Alliance Operating Board meets monthly, and as often as the Alliance’s interest requires, in Paris or Yokohama, or by video-conference when necessary. The Alliance Operating Board oversees Alliance operations and governance issues involving Renault, Nissan and Mitsubishi Motors. In practice, the Board replaces RNBV in its governance functions. In any event, RNBV continues to exist, and supports the Alliance Operating Board, particularly for decisions and proposals that are delegated to RNBV pursuant to the RAMA, the Management Agreements and the articles of association of Renault s.a.s and of RNBV. The Alliance Operating Board’s General Secretary, Hadi Zablit, appointed December 2019, is tasked with coordinating and facilitating the Alliance’ major projects launched to accelerate the operating efficiency of the respective companies. He reports to the Alliance Operating Board. The Alliance Operating Board is assisted by specific operating committees that make recommendations on new sources of value creation between the three carmakers. During 2020, the Alliance Operating Board worked on programs aiming at significantly improving and accelerating the operating effectiveness of the Alliance in the interest of the three companies, including action plans whose objective is to maximize the contribution of the Alliance in order to support the strategic plan and the operating results of each company. In 2020, the three partner companies reaffirmed that the Alliance is essential for strategic growth and improving their respective competitiveness. Thus, on May 27, 2020, the Alliance announced the adoption of a new business model for cooperation. Alliance partners will use the leader-follower model to enhance the efficiency and competitiveness of vehicles and technologies. Each member will become a benchmark in the regions where it has the best strategic assets, and will act as a facilitator and provider of support bolstering the competitiveness of the other members. The three members plan to build on the Alliance’s existing strengths, such as joint purchasing, by leveraging their respective leadership positions and geographic strengths to support their partners’ development. The aim is to: strengthen the Alliance’s standardization strategy, from platform P to complete vehicle; determine, by product segment, a “parent vehicle” (or leader car), P and “sister vehicles” (or follower cars), developed by the leader company with the support of the follower team; ensure that the three companies’ leader and follower vehicles are P produced in the most competitive environment possible, including by combining production where appropriate; continue to develop synergies on commercial vehicles, where the P leader-follower model is already applied.