2007 Interactive Registration Document - Renault

07 CONSOLIDATED
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
2006
Renault Pars (Iran) has been consolidated since January 1, 2006. This company
is 51% owned by Renault and 49% owned by the Iranian company AID co,
an entity set up by IDRO (Industrial Development & Renovation Organization,
a state-owned Iranian body in charge of the automotive industry) and Iran’s
two leading automakers, Iran Khodro and SAIPA. Renault Pars holds the
Logan license, and is responsible for engineering, purchasing and logistics,
coordination of sales policy, marketing and after-sales services. Iran Khodro
and SAIPA will manufacture and sell the Logan.
At January 1, 2006, 24 dealers in Europe (located in Belgium, the Czech
republic, Luxembourg, Poland, Portugal, and Switzerland) were also consolidated
for the fi rst time.
Minority interests in the holding company COFAL were acquired at the end
of 2006. The main effect of this operation was to bring Renault’s percentage
ownership of Renault do Brasil and Renault Argentina to 100%.
7.2.6.2 INCOME STATEMENT
4 – REVENUES
A – 2006 Revenues applying 2007 Group structure
and methods
(€ million) AUTOMOBILE
SALES
FINANCING TOTAL
2006 revenues as published 39,605 1,923 41,528
Changes of method (1) (1,196) - (1,196)
Changes in scope of consolidation (351) (12) (363)
2006 revenues applying 2007
Group structure and methods 38,058 1,911 39,969
2007 REVENUES 38,679 2,003 40,682
(1) Changes of accounting method concern transactions related to subcontracting agreements,
sales of spare parts in connection with customer warranties and the cost of promotional
campaigns offering reduced-interest loans. A more detailed description of these changes is
contained in note 2-A.
B – Breakdown of revenues
(€ million) 2007 2006 2005
Sales of goods 37,104 37,020 36,976
Sales of services (1) 2,086 1,881 1,910
Sales of goods and services 39,190 38,901 38,886
Income on customer financing 1,053 997 909
Income on leasing and similar operations 439 434 451
Sales financing revenues 1,492 1,431 1,360
REVENUES 40,682 40,332 40,246
(1) Including €511 million generated by the Sales Financing division in 2007 (€492 million in 2006
and €520 million in 2005).
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C – Vehicle rental income
Rental income recorded by the Group in connection with vehicle sales with
a repurchase commitment or vehicle rentals totalled €638 million in 2007
(€612 million in 2006 and €670 million in 2005). This income is included in
sales of services.
5 – COST OF SALES FINANCING
(€ million) 2007 2006 2005
New impairment (291) (269) (269)
Recovery of impairment
Forgiveness of debt and other net credit
240 255 194
losses (103) (127) (89)
Net credit losses (154) (141) (164)
Income on cash investments 294 174 206
Refinancing expenses (1,261) (1,018) (968)
Other sales financing costs (967) (844) (762)
COST OF SALES FINANCING (1,121) (985) (926)
6 – OPERATING MARGIN: DETAILS OF INCOME
AND EXPENSES BY NATURE
A – Personnel expenses
2007 2006 2005
Personnel expenses (€ million) 5,962 5,948 5,782
Workforce at December 31 133,854 134,236 132,831
Personnel expenses include €113 million for pensions and other long-term
benefi ts paid out to employees in 2007 (€114 million in 2006 and €131 million
in 2005).
B – Share-based payments
Share-based payments exclusively concern stock options and free shares
granted to personnel. These generated personnel expenses of €62 million in
2007 (€41 million in 2006 and €18 million in 2005).
The plan valuation method is presented in note 19-H.
C – Rental expenses
Property rents amounted to approximately €300 million in 2007 (stable
compared to 2006 and 2005).
D – Foreign exchange gains/losses
In 2007, the operating margin included a net foreign exchange loss of
€56 million (compared to a net foreign exchange loss of €13 million in 2006
and a gain of €27 million in 2005).
202 Registration Document Renault 2007
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