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

Boulogne-Billancourt, July 1, 2025 – As of June 30, 2025, Renault Group will change the way it accounts for its stake in Nissan. Previously accounted for using the equity method, this investment will now be a financial asset measured at fair value through equity (estimated on the basis of Nissan’s stock price).

Accounting impacts of the change in method

• The implementation of this new accounting treatment, resulting from the recent changes in the terms and conditions for the exercise by Renault Group of its rights related to its stake in Nissan, will result in the recognition of a loss estimated at €9.5 billion1, which will be recognized in the income statement, mostly as “other operating income and expenses” at the date of the change, with no cash impact and no impact on the calculation of the dividend paid by Renault Group.
• This amount corresponds to the difference between the present carrying value of the investment and its estimated fair value based on Nissan’s stock price as of June 30, 2025, plus the impact of the recycling of conversion reserves and net investment hedges related to Nissan’s equity‑accounted securities.
• Thereafter, any change in the fair value of the stake in Nissan (estimated on the basis of Nissan’s stock price) will be directly recognized in equity, with no impact on Renault Group’s net income.
• This approach aligns the value of the stake in Nissan in Renault Group’s financial statements with the value of Nissan’s share price.

A pragmatic and business-oriented approach

• Although this accounting change implies a significant adjustment to Renault Group’s financial statements, it does not change the strategic and operational commitments between Renault Group and Nissan.
• The two partners continue to work on joint industrial and technological development programs, as evidenced by the new strategic projects announced on March 31, 2025.
• These initiatives illustrate a relationship based on pragmatic and business-oriented decisions and show a common desire to maximize synergies and create value for both companies, while allowing each to maintain flexibility and efficiency for their operations.