Groupe Renault - 2020 Universal Registration Document

66 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 Find out more at group.renault.com 01 THE ALLIANCE GROUPE RENAULT This should reduce costs and capital expenditure per model by up to 40% for vehicles designed under the new arrangements. These benefits are set to compound the synergies already achieved to date. The Alliance also approved the principle of designating different parts of the world as “reference regions”, with each company focusing on its key regions in the aim of being among the most competitive and serving as a benchmark for others to strengthen their own competitiveness. On this principle, Nissan will become the reference in China, North America and Japan; Renault for Europe, Russia, South America and North Africa; and Mitsubishi Motors for ASEAN and Oceania. As each member becomes a reference in its respective region, synergies will increase in order to maximize the sharing of fixed costs and the exploitation of each company’s assets. Taking all these elements into account, nearly 50% of Alliance models will be developed and manufactured under the "leader-follower" model by 2025. In terms of technological efficiency, Alliance members will continue to capitalize on existing assets to ensure that each member company continues to share investments in platforms, powertrains and technologies. Sharing of this nature has already proved its effectiveness in the development of powertrains and platforms, and has led to the successful launch of the CMF-B platform for the Renault CLIO and the Nissan JUKE, as well as the KEI Car platform for Nissan DAYS and the Mitsubishi eK WAGON. The CMF-C/D and CMF-EV platforms will follow soon. The new business model will be extended from platforms and powertrains to all key technologies, with leadership assigned as follows: autonomous driving: Nissan; P connected car technologies: Renault for the Android platform and P Nissan in China; e-body – the main system of electric-electronic architecture: P Renault; e-PowerTrain (ePT) engine: CMF-A/B ePT – Renault, CMF-EV ePT P – Nissan; PHEV for the C/D segments: Mitsubishi. P This new model of cooperation will enable member companies to make the most of their expertise and competitiveness, which will strengthen the Alliance as a whole in a changing global automotive environment. Renault-Nissan B.V. (RNBV) 1.2.3.2 Since 2002, RNBV has had decision-making and recommendation powers that it exercises in consensus with each partner and in compliance with their interests. These decision-making and recommendation powers are exercised in areas that affect Alliance-wide strategy and planning. RNBV’s decisions and recommendations reflect the common positions of the Alliance partners. They are made in compliance with Renault’s corporate interest. Renault-Nissan Purchasing Organization (RNPO), of which RNBV has been the sole shareholder since June 24, 2003. Furthermore, RNBV has control over Alliance Purchasing Organization (APO), created in April 2001 under the corporate name RNBV does not intervene in the operational management of Renault or Nissan and does not share in the profits or bear the associated risks. Operational decisions are made and implemented by each company to the extent that such company is affected by them, including decisions on the so-called converged activities. This company is not consolidated due to its non-significant nature, in accordance with the accounting principles described in note 2-B of the consolidated financial statements presented in section 4-2. Powers of RNBV In accordance with the RAMA and Article 15 of the Renault s.a.s articles of association, Renault and Nissan 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” ). In April 2012, the Management Agreement was renewed for another 10-year period pursuant to an agreement entitled Renewal Agreement of the Management Agreement, the provisions of which are identical to those of the Management Agreement (the “ Renewal Agreement of the Management Agreement ”). Renault were informed of this at Renault’s 2012 Annual General Meeting. The delegation of powers granted to RNBV will expire on April 16, 2022. The Renault shareholders will be informed of the renewal of the Management Agreement . The list of powers delegated to RNBV is restrictive and has not changed since the creation of the Alliance. First and foremost, RNBV has decision-making powers that cover: adoption of 3-, 5- and 10-year plans (strategic Company projects, P with quantified data); approval of product plans (phase of strategic projects P corresponding to the design, manufacturing and sale of current or future products, vehicles and components); decisions concerning the sharing of products and powertrains P (such as platforms, vehicles, gearboxes, engines and other components); principles of financial policy, including: P discount rates used for profitability studies and hurdle rates, P applicable to future models and investments, risk management rules and the policy applicable to them, P financing and cash management rules, P debt leverage strategy; P management of common subsidiaries, and the creation, P modification, steering and disbandment of Cross-Company Teams (CCTs) and Functional Task Teams (FTTs). These teams operate in all the main sectors and areas of activity and are tasked with 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; and any other subject or project assigned to RNBV on a joint basis by P Nissan and Renault.