Groupe Renault - 2020 Universal Registration Document

79 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 01 EARNINGS REPORT – 2020 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 OPERATING SEGMENT CONTRIBUTION TO GROUP OPERATING PROFIT (€ million) 2020 2019 Change Automotive division excl. AVTOVAZ -1,450 1,284 -2,734 % of division revenues -3.8% 2.6% -6.5 pts AVTOVAZ 141 155 -14 % of AVTOVAZ revenues 5.5% 5.0% +0.5 pts Sales Financing 1,007 1,223 -216 Mobility Services* -35 0 -35 TOTAL -337 2,662 -2,999 % of Group revenues -0.8% 4.8% -5.6 pts New segment as of 01/01/2020. * The Group’s operating margin amounted to -€337 million and represented -0.8% of revenues (4.8% in 2019) thanks to a marked improvement in H2 (3.5% of revenues). Automotive excluding AVTOVAZ operating margin was down -€2,734 million to -€1,450 million, which represented -3.8% of revenues compared to +2.6% in 2019. In the second half, it was positive at €198 million (0.9% of revenues). The change can be explained by the following: volume effect had a negative impact of -€2,556 million, including P sales to partners; mix/price/enrichment effect was positive +€172 million despite P the enrichment of new products and the regulatory content; the Monozukuri effect was positive by +€36 million after taking P into account a negative impact of -€479 million due to the increase in depreciation and amortization and a lower R&D capitalization rate; raw materials weighed for -€131 million largely on higher prices P for precious metals; the improvement of +€172 million of G&A spending stemmed P from the impact of lower activity in H1 but also from the company’s effort to limit its costs under the "2o22 plan"; currencies impacted by -€428 million reflecting the devaluation of P our main currencies despite the positive impact of the Turkish lira on production costs. The AVTOVAZ operating margin contribution amounted to €141 million, compared to €155 million in 2019, highlighting the resilience of AVTOVAZ in the COVID-19 context. Sales Financing contributed €1,007 million to the Group’s operating margin , compared to €1,223 million in 2019. This decrease was due to a lower activity, with new financings down -17% and a cost of risk representing 0.75% of average performing assets compared to 0.42% last year. The contribution of Mobility Services to the Group’s operating margin amounted to -€35 million in 2020. Other operating income and expenses amounted to -€1,662 million (compared to -€557 million in 2019) coming from significantly higher restructuring charges and impairments. Group operating income came to -€1,999 million compared with €2,105 million in 2019 after taking into account a strong increase of related to measures taken to improve competitiveness. Net financial income and expenses amounted to -€482 million, compared with -€442 million in 2019, due to higher average indebtedness. The contribution of associated companies came to -€5,145 million, compared with -€190 million in 2019. Nissan’s contribution was negative at -€4,970 million and the one of other companies amounted to -€175 million. Current and deferred taxes represented a charge of -€420 million compared to a charge of -€1,454 million in 2019. Net income stood at -€8,046 million and net income, Group share totaled -€8,008 million (-€29.51 per share compared with €0.52 per share in 2019).