2007 Interactive Registration Document - Renault

07 CONSOLIDATED
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Renault Argentina
Renault Argentina SA manages a savings plan called Plan Rombo SA, designed
to enable savers’ groups to acquire vehicles. The savers make monthly
contributions to the plan and a vehicle is delivered at the end of a given period.
At December 31, 2007, Plan Rombo SA had approximately 500 savers’ groups
on its books. Renault Argentina SA and Plan Rombo SA are jointly responsible
to subscribers for the correct operation of the plan. Renault’s corresponding
off-balance sheet commitment amounts to 82 million Argentinean pesos at
December 31, 2007 (€18 million).
Other commitments
Disposals of subsidiaries or businesses by the Group generally include
representations and warranties in the buyer’s favour. At December 31, 2007,
Renault had not identified any significant risks in connection with these
operations.
Following partial sales of subsidiaries during previous years, Renault retains
options to sell all or a portion of its residual investment. Exercising these
options would not have any signifi cant impact on the consolidated fi nancial
statements.
Under the agreement signed in April 2003, when Renault sold a 51% stake
in Renault Agriculture to Claas, after Claas exercised its option to acquire a
further 29% in February 2006, Renault and Claas now hold a sale and purchase
option respectively for the remaining 20%, which may be exercised from
January 1, 2010.
The agreement signed in March 2007 by Renault and the Japanese group
NTN for the sale of 35% of SNR also provides for a fi rm future purchase by
NTN of a further 16% in SNR on the fi rst anniversary of the sale. In addition,
Renault and NTN respectively hold a sale and purchase option concerning 29%
of SNR, which can be exercised during a 60-day period starting on the 3 rd and
4 th anniversary dates of the original transaction. From the 5 th anniversary date,
Renault has a unilateral option to sell its residual 20% investment in SNR, valid
for fi ve years. If this option is not exercised by the end of the fi ve-year period,
NTN will have a purchase option on the residual investment.
Group companies are periodically subject to tax inspections in the countries
in which they operate. Tax adjustments are recorded as provisions in the
fi nancial statements. Contested tax adjustments are recognised on a caseby-case
basis, taking into account the risk that the proceedings or appeal m ay
be unsuccessful.
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B – Off-balance sheet commitments received
DECEMBER 31, DECEMBER 31, DECEMBER 31,
(€ million)
2007 2006 2005
Other guarantees given
Opening of confirmed credit lines
1,154 784 764
for customers (1) 10,759 10,683 10,643
Firm investment orders 506 395 208
Lease commitments 361 537 616
Assets pledged or mortgaged (2) 2,185 2,107 2,150
(1) The Sales financing division receives guarantees from its customers in the course of
sales financing for new or used vehicles. Guarantees received from customers amount to
€425 million at December 31, 2007.
(2) Including €1,574 million for commitments received by the Sales financing division for sale to a
third party of rental vehicles at the end of the rental contract.
30 – SUBSEQUENT EVENTS
Substantial price decrease for Renault SA
redeemable shares
The value of the redeemable shares issued by Renault SA underwent a
considerable decrease in early 2008: the quoted price fell from €874 at
December 31, 2007 to €555 at January 31, 2008. As these shares are
recorded at fair value (market value) through profi t and loss, such a change in
the quoted price could have a signifi cant impact on the Group’s net fi nancial
income. The estimated potential impact based on the price at January 31,
2008 corresponds to fi nancial income of €256 million with a corresponding
decrease in non-current fi nancial liabilities (no impact on consolidated cash).
This estimated impact will vary with fl uctuations in the quoted price of the
redeemable shares.
232 Registration Document Renault 2007
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