2007 Interactive Registration Document - Renault

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07 CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS 7.2.6 N OTES TO THE CONSOLIDATED FINANCIAL STATEMENT < TABLE OF CONTENTS > 7.2.6.1 ACCOUNTING POLICIES AND SCOPE OF CONSOLIDATION 195 note 1 – Approval of the financial statements 195 note 2 – Accounting policies 195 note 3 – Changes in the scope of consolidation 201 7.2.6.2 INCOME STATEMENT 202 note 4 – Revenues 202 note 5 – Cost of sales financing 202 note 6 – Operating margin: details of income and expenses by nature 202 note 7 – Other operating income and expenses 203 note 8 – Financial expense 203 note 9 – Current and deferred taxes 203 note 10 – Basic and diluted earnings per share 204 7.2.6.3 OPERATING ASSETS AND LIABILITIES, SHAREHOLDERS’ EQUITY 204 note 11 – Intangible assets 204 note 12 – Property, plant and equipment 205 note 13 – Investment in Nissan 207 note 14 – Investments in other associates 210 note 15 – Inventories 211 note 16 – Sales financing receivables 211 note 17 – Automobile receivables 212 note 18 – Other current assets 212 note 19 – Shareholders’ equity 212 note 20 – Provisions 215 note 21 – Other current liabilities 218 7.2.6.4 FINANCIAL ASSETS AND LIABILITIES 218 note 22 – Financial assets 218 note 23 – Cash and cash equivalents 219 note 24 – Financial liabilities and sales financing debts 220 note 25 – Fair value of financial instruments and impact on net income 224 note 26 – Derivatives and management of financial risks 226 7.2.6.5 CASH FLOWS AND OTHER INFORMATION 230 note 27 – Cash flows 230 note 28 – Related parties 231 note 29 – Off-balance sheet commitments and contingent liabilities 231 note 30 – Subsequent events 232 note 31 – Consolidated companies 233 194 Registration Document Renault 2007 Find out more at www.renault.com 01 02 03 04 05 06 07 08
7.2.6.1 ACCOUNTING POLICIES AND SCOPE OF CONSOLIDATION 1 – APPROVAL OF THE FINANCIAL STATEMENTS The Renault group’s consolidated fi nancial statements for 2007 were fi nalised at the Board of Directors’ meeting of February 12, 2008 and will be submitted for approval by the shareholders at the General Shareholders’ Meeting to be held on April 29, 2008. 2 – ACCOUNTING POLICIES In application of regulation 1606/2002 passed on July 19, 2002 by the European Parliament and the Council of Europe, Renault’s consolidated fi nancial statements for 2007 are prepared under IFRS (International Financial Reporting Standards) as issued by the lASB (International Accounting Standards Board) at December 31, 2007 and adopted by the European Union at the year-end. A – Changes in accounting policies The following standards and interpretations which became mandatory from January 1, 2007 and were published in the Offi cial Journal of the European Union at December 31, 2007, have been applied for the fi rst time in 2007: n n n n n IFRS 7, “Financial Instruments: Disclosures”. In application of this standard, the Group includes the required disclosures in the notes to the fi nancial statements. The classifi cation and valuation of the Group’s fi nancial instruments are unaffected by application of IFRS 7; Amendment to IAS 1 concerning capital disclosures. For application of the amendment to IAS 1, the Group describes its capital management policy (note 19-B); IFRIC 7, “Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinfl ationary Economies”; IFRIC 8, “Scope of IFRS 2 – Share-based payment”; IFRIC 9, “Reassessment of Embedded Derivatives”. Application of these interpretations has no impact on the fi nancial statements at December 31, 2007. The Group undertakes no early application of any standard or interpretation, including the following, which were already released at December 31, 2007: n n IFRIC 11 “intra-group and Treasury Share Transactions”, mandatory for fi nancial years beginning on or after March 1, 2007; IFRS 8 “Operating segments”, which replaces IAS 14 “Segment Reporting”, mandatory for fi nancial years beginning on or after January 1, 2009. The Group does not currently expect adoption of these new standards and interpretations to have any signifi cant impact on the fi nancial statements. ✦ Global Reporting Initiative (GRI) Directives FINANCIAL STATEMENTS 07 CONSOLIDATED FINANCIAL STATEMENTS The Group has also introduced several new accounting policies in 2007, with the effects described below. The Renault Group opted in 2007 to recognise actuarial gains and losses in equity as allowed by the amendment to IAS 19. This change of policy has a negative impact on equity of €196 million at December 31, 2007 (€127 million at December 31, 2006 and €166 million at December 31, 2005). The Group has also reviewed its accounting treatment of certain components of revenues in order to provide a more fair refl ection of its transactions: n n n < TABLE OF CONTENTS > sales of raw materials, parts and engines to subcontractors are now considered as a consignment of inventories at subcontractors’ premises, and are no longer included in sales. The inventories concerned remain in Group assets until the vehicle is sold to the fi nal customer. This change in presentation results in a €638 million reduction in revenues for 2007 (€498 million for 2006 and €449 million for 2005). There is no impact on operating margin; sales of spare parts to dealers to be reinvoiced to the Group through warranty costs are no longer included in sales, but deducted from the cost of sales. This change in presentation results in a €529 million reduction in revenues for 2007 (€658 million for 2006 and €608 million for 2005). There is no impact on operating margin; the cost of promotional campaigns offering reduced-interest loans to endusers, previously included in selling, general and administrative expenses, is now charged to sales revenues. This change in presentation results in a €30 million reduction in revenues for 2007 (€40 million for 2006 and €35 million for 2005). There is no impact on operating margin. In order to clarify certain indicators in the statements of cash fl ows, net allocations to short-term provisions in those statements are now included with net allocations to long-term provisions in other unrealised income and expenses. This change in presentation has a negative impact of €401 million on cash fl ow for 2007 (€623 million for 2006 and €229 million for 2005). Cash fl ows from operating activities were unaffected given that this reclassifi cation is refl ected in the change in working capital. B – Estimates and judgments In preparing its fi nancial statements, Renault has to make estimates and assumptions that affect the book value of certain assets and liabilities, income and expense items, and the information disclosed in certain notes. Renault regularly revises its estimates and assessments to take account of past experience and other factors deemed relevant in view of the economic circumstances. If changes in these assumptions or circumstances are not as anticipated, the fi gures reported in Renault’s future fi nancial statements could differ from current estimates. The recoverable value of fi xed assets and sales fi nancing receivables, deferred taxes and provisions, particularly vehicle warranty provisions (note 2-G) and provisions for pension and other long-term employee benefi t obligations (note 20-C), are the principal items that depend on estimates and assumptions 01 02 03 04 05 06 07 08 Registration Document Renault 2007 195
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2007 REGISTRATION DOCUMENT
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TABLE OF CONTENTS 01 RENAULT AND TH
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01 Renault and the Group < TABLE OF
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1.1.2 BACKGROUND AND HIGHLIGHTS 189
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1.1.3 MAIN ACTIVITIES Since the fi
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I n the luxury E segment, Renault l
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PRODUCTION OF THE MAIN MANUFACTURIN
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HIGHLIGHTS IN GROUP NETWORK STRATEG
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In April 2007, in addition to an or
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n n in Morocco, Renault signed a me
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RENAULT RETAIL GROUP SA 117-199, av
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* REAL ESTATE AND IT FINANCING FOR
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1.3 THE RENAULT-NISSAN ALLIANCE On
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RENAULT SHARE PRICE FROM MARCH 29,
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These two entities are free to acce
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Interchangeable components Compleme
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MANUFACTURING Renault and Nissan ha
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1.3.4.1 NISSAN’S STRATEGY AND GRO
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1.3.4.2 NISSAN’S 2007 CONTRIBUTIO
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SALES IN WESTERN EUROPE RENAULT AND
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GLOBAL SALES AND PRODUCTION SITES
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02 Management report < TABLE OF CON
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FRANCE & EUROPE REGIONS - GROUP SAL
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for 67.1% of the Group’s sales in
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INTERNATIONAL ROLLOUT OF THE LOGAN
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In 2007, RCI Banque also launched f
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RENAULT GROUP - REGISTRATIONS IN EU
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Renault g roup’s new geographical
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Renault g roup - R&D expenses* Glob
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2.1.3 FINANCIAL INFORMATION ON THE
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2.1.4 PROGRESS REPORT ON RENAULT CO
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The Renault [T] (“square T”) te
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2.2.3 2007 R&D HIGHLIGHTS 2.2.3.1 A
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Industrial risk The decision to set
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MANAGEMENT PROCEDURES Between 1990
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MANAGEMENT PROCEDURES Import subsid
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Renault Finance also trades for its
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In early 2005 RCI Banque also secur
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2.3.5 OTHER RISKS 2.3.5.1 OFF-BALAN
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03 Sustainable development < TABLE
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of employee commitment remains one
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Over the past three years, incentiv
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For 2007, Group turnover totaled 7%
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3.1.2.5 TRAINING Vocational trainin
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Efforts continued in 2007 to extend
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The agreement on teleworking was si
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TEST LABORATORY Renault’s test la
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COMPARATIVE INVENTORY AND PROGRESS
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Renault is implementing a three-pro
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Liquefied Petroleum Gas (LPG) and C
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USE Use-phase waste is generated by
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3.2.3 CROSS-FUNCTIONAL MANAGEMENT O
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VEHICLE DESIGN AND DEVELOPMENT PROC
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ENVIRONMENTAL MANAGEMENT IN THE VEH
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SHARING RENAULT’S KNOW-HOW WITH O
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3.3.2 RENAULT AND ITS STAKEHOLDERS
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In 2007, Renault participated as an
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BREAKDOWN OF ACCIDENTS RESULTING IN
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The Safety for All program in Moroc
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“VALUED CITIZENS” PROGRAM IN SO
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MAIN HR OBJECTIVES ✦ Global Repor
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3.4.3 SOCIAL OBJECTIVES KEY OBJECTI
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OEKOM Oekom, one of Germany’s lea
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TABLE OF CONTENTS > SUSTAINABLE DEV
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TABLE OF CONTENTS > 04 Corporate go
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DIRECTORS OFFICES/FUNCTIONS Carlos
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DIRECTORS OFFICES/FUNCTIONS Jean-Cl
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THE ALLIANCE: n took cognizance of
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In compliance with French legal and
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4.2 MANAGEMENT BODIES AT FEBRUARY 1
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ORGANIZATION CHART AT FEBRUARY 1, 2
Page 145 and 146: 4.3.3 FEES PAID TO STATUTORY AUDITO
Page 147 and 148: The Chairman of the Board of Direct
Page 149 and 150: Summary of plans The options grante
Page 151 and 152: CORPORATE GOVERNANCE 04 REPORT OF T
Page 153 and 154: PROCEDURES AND OPERATING METHODS Th
Page 155 and 156: 4.5.2.7 ORGANIZATION OF PROCEDURES
Page 157 and 158: CORPORATE GOVERNANCE 04 STATUTORY A
Page 159 and 160: 05 Renault and its shareholders < T
Page 161 and 162: 5.1.2.2 GENERAL MEETINGS OF SHAREHO
Page 163 and 164: 5.2.4 UNISSUED AUTHORIZED CAPITAL 5
Page 165 and 166: 5.3 MARKET FOR RENAULT SHARES 5.3.1
Page 167 and 168: 5.3.2 RENAULT AND DIAC REDEEMABLE S
Page 169 and 170: 5.4 INVESTOR RELATIONS POLICY ✦ S
Page 171 and 172: TABLE OF CONTENTS > RENAULT AND ITS
Page 173 and 174: TABLE OF CONTENTS > 06 Mixed Genera
Page 175 and 176: APPOINTMENT OF A DIRECTOR The seven
Page 177 and 178: CAPITAL INCREASE AUTHORISATION GIVE
Page 179 and 180: TABLE OF CONTENTS > MIXED GENERAL M
Page 181 and 182: TABLE OF CONTENTS > 07 Financial st
Page 183 and 184: ✦ Global Reporting Initiative (GR
Page 185 and 186: 7.2.3 CONSOLIDATED SHAREHOLDERS’
Page 187 and 188: 7.2.4 CONSOLIDATED STATEMENTS OF CA
Page 189 and 190: A2 - CONSOLIDATED BALANCE SHEETS BY
Page 191 and 192: DECEMBER 31, 2005 (€ million) AUT
Page 193 and 194: (€ million) AUTOMOBILE SALES FINA
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Page 199 and 200: F - Translation of foreign currency
Page 201 and 202: Useful lives are regularly reviewed
Page 203 and 204: Renegotiations of the terms of borr
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Page 207 and 208: B - Changes during the year (€ mi
Page 209 and 210: 13 - INVESTMENT IN NISSAN A - Nissa
Page 211 and 212: G - Hedging of the investment in Ni
Page 213 and 214: 15 - INVENTORIES DECEMBER 31, DECEM
Page 215 and 216: A dividend distribution of €3.80
Page 217 and 218: The plans have been valued as follo
Page 219 and 220: C3 - Summary ✦ Global Reporting I
Page 221 and 222: B - Breakdown by category ✦ Globa
Page 223 and 224: B - Breakdown by category DECEMBER
Page 225 and 226: C1 - Financial liabilities of the A
Page 227 and 228: B - Impact of financial instruments
Page 229 and 230: DECEMBER 31, 2005 (€ million) ✦
Page 231 and 232: Interest rate derivatives B3 - Equi
Page 233 and 234: 28 - RELATED PARTIES A - Remunerati
Page 235 and 236: 31 - CONSOLIDATED COMPANIES A - Ful
Page 241 and 242: 1. WITH COGERA Credit facility agre
Page 243 and 244: BALANCE SHEET ✦ Global Reporting
Page 245 and 246: E - Marketable securities Marketabl
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7.4.2.7 INVESTMENTS Changes during
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7.4.2.13 PROVISIONS FOR RISKS AND L
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Breakdown by maturity ✦ Global Re
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Renault SA uses derivatives to impl
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7.4.2.23 SUBSEQUENT EVENTS No signi
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08 Additional information < TABLE O
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ADDITIONAL INFORMATION 08 INFORMATI
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8.3.1.3 PRESIDENT AND CHIEF EXECUTI
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COMPOSITION, TASKS AND OPERATING PR
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8.3.3.2 USE AND/OR COMMUNICATION OF
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Renault made its fi rst inventory o
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SITE WATER CONSUMPTION (m 3 thousan
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Nature and scope of the audit We pe
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ADDITIONAL INFORMATION 08 CROSS-REF
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GRI INDICATORS (1) ADDITIONAL INFOR
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