2007 Interactive Registration Document - Renault

15 – INVENTORIES
DECEMBER 31, DECEMBER 31, DECEMBER 31,
(€ million)
2007 2006 2005
Raw materials and supplies 1,185 1,052 1,052
Work-in-progress 340 370 420
Finished products (1) 4,407 3,887 4,385
INVENTORIES, NET 5,932 5,309 5,857
Inventories, gross 6,428 5,785 6,325
Impairment (496) (476) (468)
(1) Including €413 million at December 31, 2007 for rental vehicles (€454 million at December 31,
2006 and €546 million at December 31, 2005).
16 – SALES FINANCING RECEIVABLES
A – Sales financing receivables by nature
DECEMBER 31, DECEMBER 31, DECEMBER 31,
(€ million)
2007 2006 2005
Dealership receivables 4,678 4,503 4,673
Financing for end-users 12,184 12,222 12,207
Leasing and similar operations 4,315 4,347 4,498
Gross value 21,177 21,072 21,378
Impairment (747) (712) (678)
NET VALUE 20,430 20,360 20,700
The Sales fi nancing division undertook several securitisation operations through
S pecial P urpose V ehicles (in France, Italy and Germany) involving receivables
on the dealership network or loans to fi nal customers. This did not lead to
derecognition of the receivables assigned, as all risks were retained by the
Group. Sales fi nancing receivables in the balance sheet thus amounted to
€6,776 million at December 31, 2007 (€5,727 million at December 31, 2006). A
liability of €3,533 million was recognised at December 31, 2007 (€3,108 million
at December 31, 2006) in other debts represented by a certifi cate, corresponding
to the issue resulting from the securitisation operations. The difference between
the receivables assigned and the amount of the liability corresponds to the
higher credit necessary for these operations, and the share of securities retained
by RCI Banque to form a liquidity reserve.
B – Sales financing receivables by maturity
DECEMBER 31, DECEMBER 31, DECEMBER 31,
(€ million)
2007 2006 2005
-1 year 11,064 10,929 10,902
1 to 5 years 9,272 9,341 9,679
+5 years 94 90 119
TOTAL SALES FINANCING
RECEIVABLES, NET 20,430 20,360 20,700
✦ Global Reporting Initiative (GRI) Directives
FINANCIAL STATEMENTS 07
CONSOLIDATED FINANCIAL STATEMENTS
C – Breakdown of overdue sales financing receivables
(gross values)
(€ million) DECEMBER 31, 2007
Receivables for which impairment has been recognised (1) :
overdue by 526
0 to 30 days 24
30 to 90 days 56
90 to 180 days 110
More than 180 days 336
Receivables for which no impairment has been
recognised: overdue by 117
0 to 30 days 28
30 to 90 days 40
90 to 180 days 49
More than 180 days -
(1) This only includes sales financing receivables partly or totally written off through impairment on
an individual basis.
The maximum exposure to credit risk for the sales financing activity is
represented by the net book value of sales fi nancing receivables plus the
amount of confi rmed credit to customers reported under off-balance sheet
commitments given (note 29-A).
This risk is reduced by guarantees provided by customers, as reported in
off-balance sheet commitments received (note 29-B). Guarantees held in
connection with overdue or impaired sales fi nancing receivables amounted to
€409 million at December 31, 2007.
There is no indication at the year-end that the quality of sales fi nancing
receivables not yet due or unimpaired has been adversely affected, nor is
there any signifi cant concentration of risks within the Sales fi nancing customer
base.
D – Changes in impairment of sales financing receivables
(€ million)
< TABLE OF CONTENTS >
Impairment at December 31, 2005 (678)
Impairment recorded during the year (287)
Reversals for application 119
Reversals of unused residual amounts 155
Translation adjustment and other (21)
Impairment at December 31, 2006 (712)
Impairment recorded during the year (309)
Reversals for application 128
Reversals of unused residual amounts 127
Translation adjustment and other 19
Impairment at December 31, 2007 (747)
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Registration Document Renault 2007 211