2020 ANNUAL THE REPORT FINANCIAL REPORTS RCI BANQUE ORGANIZATION CHART 2020 RENAULT S.A.S. 100% RCI BANQUE S.A. ALGERIA GERMANY ARGENTINA AUSTRIA BELGIUM BRAZIL COLOMBIA 100% 100% 99.92% 100% RCI Banque RCI Banque RCI Banque RCI Services S.A. S.A. Administradora Sucursal RCI Financial RCI Servicios Algérie S.A.R.L. Niederlassung Niederlassung de Consõrcio Argentina Services S.A. Colombia S.A.S Deutschland Österreich RCI Brasil Ltda 100% 100% .11% 51% RCI Rombo RCI Colombia Versicherungs Compañía Autofin Banco RCI S.A. - Service Financiera S.A. Brasil S.A. Compañía De GmbH Financiamiento 50.10% 100% 100% Renault Crédit Corretora RCI Brasil Courtage S.A. Car (partnership) de Seguros Serviços e (Equity method) RCI Brasil S.A. Participações Ltda CZECH UNITED MALTA MOROCCO NETHERLANDS POLAND PORTUGAL REPUBLIC ROMANIA KINGDOM 100% 100% 100% 50% 100% 100% RCI Banque RCI Banque SPOLKA RCI Leasing RCI Services RCI Finance RCI Financial Sucursal RCI Financial RCI Bank AKCYJNA Romania IFN Ltd Maroc S.A. Services B.V. Portugal Services S.r.o. UK Ltd W POLSCE S.A. 100% 100% 50% 100% 100% 100% 100% 100% RN SF B.V.(*) RCI Finance RCI Insurance RCI Leasing RCI Finantare RCI Financial RDFM S.A.R.L. (Equity method) RCICOM S.A. C.Z. Ltd Polska Sp. z.o.o. Romania S.R.L. Services Ltd S.r.o. 100% 60% 100% RCI Gest (*) Seguros RCI Broker RCI Life BARN B.V Mediadores (Equity method) de asigurare Ltd de Seguros S.R.L. L.d.a SubsidiaryBranch Non-consolidated subsidiary (*) Organization of the activity in Russia. SOUTH KOREA CROATIA SPAIN FRANCE HUNGARY INDIA IRELAND ITALY 100% 100% 100% 30% RCI Banque Nissan Renault RCI Banque RCI Banque RCI Financial RCI Usluge S.A. Financial Services Diac S.A. RCI Zrt Branch Succursale Services Korea d.o.o Sucursal India Private Co. Ltd en España Limited (Equity Ireland Italiana method) 100% 100% 100% 100% 100% RCI Insurance , Diac Location RCI Services ES Mobility Service Korea Overlease S.A. S.A. KFT S.R.L. Co. Ltd RUSSIA SERBIA SLOVAKIA SLOVENIA SWEDEN SWITZERLAND TURKEY UKRAINE 100% 100% 100% 100% 50% 100% Renault Finance RCI Banque S.A. ORFIN RCI Financial Bancna Nordic Bankfilial RCI Finance Finansman A.Ş. RNL Leasing RCI Services RCI Finance SK Services Ukraine d.o.o. S.r.o. podruznica till RCI Banque S.A. (Equity method) Ljubljana S.A Frankrike LLC 100% 50% ORF Kiralama RN BANK Pazarlama ve (Equity method) RCI Lizing d.o.o. Pazarlama Danışmanlığı A.Ş. 100% The financial reports are part of the 2020 Annual Report, of which the magazine section can be viewed on the following link: www.annualreport2020.rcibs.com. CONTENTS MESSAGE FROM CLOTILDE DELBOS 4 CUSTOMERS AT THE HEART OF OUR AMBITIONS 6 1 FINANCIAL POLICY 13 2 RISKS PILLAR III 17 Statement on information published in respect of Pillar III 18 Introduction 19 I Summary of risks 19 II Governance and organization principles of risk management 21 III Capital management and capital adequacy 28 IV Credit risk 51 V Credit valuation adjustment risk 84 VI Securitization 84 VII Market risk 85 VIII Interest-rate risk for portfolio positions 86 IX Liquidity risk 88 X Operational and non-compliance risks 93 XI Other risks 97 Cross-reference table 99 Tables 101 3 REPORT ON CORPORATE GOVERNANCE 105 3.1 Organization of the RCI Banque group 106 3.2 Bodies and people involved 108 3.3 Special terms and conditions for shareholder participation 114 at general meetings 3.4 Related-party agreements 114 3.5 Summary table of current delegations within the meaning 114 of Article L.225-37-4 3° of the French Commercial Code 4 CONSOLIDATED FINANCIAL STATEMENTS 117 4.1 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED 118 FINANCIAL STATEMENTS 4.2 Consolidated financial statements 122 4.3 Notes to the consolidated financial statements 126 4.4 Appendix 1: Information about locations and operations 180 4.5 Appendix 2: Financial risks 182 5 GENERAL INFORMATION 187 5.1 General information about the company 188 5.2 Background 192 5.3 Statement by the person responsible for the annual financial report 194 2020 ANNUAL REPORT THE FINANCIAL REPORTS RCI BANK AND SERVICES ● 2020 ANNUAL REPORT ● THE FINANCIAL REPORTS 3 1 THE ROBUST PERFORMANCE OF RCI BANK AND SERVICES IN 2020 DEMONSTRATES THE RESILIENCE OF ITS BUSINESS MODEL AND CONFIRMS ITS STRONG CONTRIBUTION TO GROUPE RENAULT’S RESULTS. 4 RCI BANK AND SERVICES ● 2020 ANNUAL REPORT ● THE FINANCIAL REPORTS www.rcibs.com MESSAGE FROM CLOTILDE DELBOS MESSAGE FROM CLOTILDE DELBOS Deputy Chief Executive Officer and Chief Financial Officer of Groupe Renault, Chief Executive Officer of the Mobilize brand, and Chairman of the Board of Directors of RCI Bank and Services. What word would you use to maintaining a high level of liquidity describe the performance of thanks to the record amount of collected RCI Bank and Services in 2020? deposits, with €20.5 billion, or 43% of its I would say that the performance of net assets at end December 2020. RCI Bank and Services was robust. With pre-tax income of €1,003 million, In addition, RCI Bank and Services is a RCI Bank and Services is continuing to true benchmark in terms of customer make a strong contribution to Groupe satisfaction, with scores 19 points higher Renault’s results and has confirmed than other captive finance companies. more than ever the resilience of its Satisfied customers are loyal and renew business model. In addition to our their vehicle with the same brand. This results, I would like to thank the teams is clearly an asset for Groupe Renault! of RCI Bank and Services around the world who have shown their What role will RCI Bank and Services commitment, despite unusual working play in the development of Mobilize? conditions, to support all customers of Mobilize targets customers who wish to the Alliance brands (including retail, adopt more sustainable, flexible forms corporate, and dealership customers) of mobility. As a preferred partner, RCI during this unprecedented period. Bank and Services allows Mobilize to provide its customers with easier access In what way is RCI Bank and Services to financing services ranging from an asset for Groupe Renault? leasing to payment plans tailored to use. I can think of many ways! But I will Starting in 2021, RCI Bank and Services mention two. will put its expertise to use to allow Although 2020 was a particularly Mobilize to offer more digital customer difficult year on the economic front, journeys and give these customers the RCI Bank and Services succeeded option to adapt ownership costs to how throughout the year in fulfilling its they use their vehicle. primary mission, which is to finance all customers of Groupe Renault as well as its dealerships in a challenging environment. And it did so while RCI BANK AND SERVICES ● 2020 ANNUAL REPORT ● THE FINANCIAL REPORTS 5 CUSTOMERS AT THE HEART OF OUR AMBITIONS DESPITE THE DIFFICULT CONTEXT, 2020 HAS What is your take on this unprecedented year? BEEN FILLED WITH SUCCESSES FOR RCI been filled with successes for RCI Bank and Services. This year, our first priority BANK AND SERVICES. was really to keep our employees safe, and we managed to do this with minimal Joāo Leandro, perturbation to our customers. Chief Executive Officer Then, we have demonstrated the RCI Bank and Services resilience of our business model with very encouraging results: • we set a new penetration rate record of 47.5% and this allowed our brands 3 to improved their commercial performance, • in 2020, we also set a new record on electric vehicles financed with more than 50,000 ZOEs, and this was really a strong support to Renault to achieve the CAFÉ objectives, • with more than 20 billion-euros in deposits collected, we diversified our refinancing strategy and we ensured the liquidity independence of RCI Bank and Services for years to come, despite the difficult context, • and last but not least, we developped our new strategic plan, Together 4 Customers. Can you tell us more about your new strategic plan, Together 4 Customers? It’s simple: we relied on the group’s expertise of almost 200 employees from 20 countries. This collaborative approach allowed us to develop an ambitious strategy with a complete roadmap until 2024 focused on the satisfaction of our 4 customers: • the final customers: private and corporate, 6 RCI BANK AND SERVICES ● 2020 ANNUAL REPORT ● THE FINANCIAL REPORTS www.rcibs.com CUSTOMERS AT THE HEART OF OUR AMBITIONS OUR AMBITION IS CLEAR: BECOME THE MOST INNOVATIVE CAPTIVE BY 2024, THE YEAR WE WILL TH 2. From selling car to selling kilometers CELEBRATE OUR 100 by developing even more leasing offers based on usage, even more flexible and ANNIVERSARY. with services included. These types of offers already represented around 60% of our financing contracts sold in Europe in 2020, so we have a strong expertise we can build on. 3. Strengthen and optimize by applying strict control over our operating expenses, we will demonstrate the resilience of our business model. This effort has already begun as we have managed to maintain our expenses • the car manufacturers, in 1.25% of average productive assets, an • the dealers, historically low level in 2020. • our employees. As you can see customer satisfaction is really To achieve all these ambitious objectives, our motto. But the word “Together” is also very we must empower our employees, important. Our strategic plan will be a success strengthen our cross-business collaboration thanks to the involvement, the creativity and thanks to tribes, squads and encourage the initiatives of all our employees.