Evolution of the accounting remedy of Renault Group’s stake in Nissan

As of June 30, 2025, Renault Group will change the way in which it accounts for its stake in Nissan. Beforehand accounted for utilizing the fairness methodology, this funding will now be a monetary asset measured at truthful worth via fairness (estimated on the premise of Nissan’s inventory worth).

Accounting impacts of the change in methodology

• The implementation of this new accounting remedy, ensuing from the current adjustments within the phrases and situations for the train by Renault Group of its rights associated to its stake in Nissan, will end result within the recognition of a loss estimated at €9.5 billion1, which will probably be acknowledged within the earnings assertion, principally as “different working earnings and bills” on the date of the change, with no money impression and no impression on the calculation of the dividend paid by Renault Group.
• This quantity corresponds to the distinction between the current carrying worth of the funding and its estimated truthful worth based mostly on Nissan’s inventory worth as of June 30, 2025, plus the impression of the recycling of conversion reserves and internet funding hedges associated to Nissan’s fairness?accounted securities.
• Thereafter, any change within the truthful worth of the stake in Nissan (estimated on the premise of Nissan’s inventory worth) will probably be instantly acknowledged in fairness, with no impression on Renault Group’s internet earnings.
• This strategy aligns the worth of the stake in Nissan in Renault Group’s monetary statements with the worth of Nissan’s share worth.

A practical and business-oriented strategy

• Though this accounting change implies a major adjustment to Renault Group’s monetary statements, it doesn’t change the strategic and operational commitments between Renault Group and Nissan.
• The 2 companions proceed to work on joint industrial and technological growth applications, as evidenced by the brand new strategic tasks introduced on March 31, 2025.
• These initiatives illustrate a relationship based mostly on pragmatic and business-oriented selections and present a standard want to maximise synergies and create worth for each firms, whereas permitting every to keep up flexibility and effectivity for his or her operations.

(1) Estimation based mostly on a Nissan’s inventory worth of JPY350 and a EUR/JPY change charge of 169 (the definitive quantity will probably be confirmed when Renault Group’s half-year monetary statements are printed).

SOURCE: Renault Group