GROUPE RENAULT October 1 st , 2019 Credit Agricole CIB Automotive Credit Conference 1 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Disclaimer Information contained within this document may contain forward looking statements. Although the Company considers that such information and statements are based on reasonable assumptions taken on the date of this report, due to their nature, they can be risky and uncertain (as described in the Renault Registration Document filed with the French Autorité des Marchés Financiers ). Actual results may differ materially from those projected or implied in these forward looking statements. These forward looking statements are made as of the date of this presentation. Renault does not undertake to provide updates or revisions, should any new statements and information be available, should any new specific events occur or for any other reason. Renault makes no representation, declaration or warranty as regards the accuracy, exhaustiveness, adequacy, effectiveness and genuineness of any statements and information contained in this report. This information does not constitute an invitation to invest in shares or constitute or form a part of any offer for the sale or subscription of, or any offer to buy or subscribe for, any securities or other financial instruments. Further information on Renault can be found on Renault’s web site (www.group.renault.com), in the section Finance/Regulated Information. ” 2 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Agenda 01 Renault Group – Automotive 1. Renault in Brief 2. 2019H1 Results 3. 2022 Mid Term Plan “Drive the Future” 02 Renault Group – RCI Bank 3 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
01.1 Renault in Brief 4 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Investment Case ▪ High potential in emerging markets ▪ Diversified profit pool ▪ European leadership for EV ▪ The Alliance is a key competitive advantage ▪ Clear dividend policy ▪ Ambitions for 2022: revenues at €70bn with a 7% operating margin 5 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Renault – In Brief ▪ Founded in 1898, listed on the Paris NYSE Euronext since 1995 ▪ Renault created an Alliance with Nissan in 1999, reinforced by Mitsubishi in 2016 ▪ Strategic cooperation with Daimler ▪ Market capitalization of around €17 bn as of Sep 2018 ▪ 183,002 employees worldwide in 130 countries in 2018 ▪ 3.9 million vehicles sold worldwide in 2018, 4.2% market share ▪ Renault brand is ranked #2 in Europe 6 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Renault Sales in 2018 Sales by Region Sales by Brand 9% 0% 5% Europe 11% 10% 2% Renault AMEI Dacia 49% Eurasia RSM 19% 18% Americas Alpine JV 65% Asia-Pacific Lada 12% Not JV J&H Top 10 Model Sales in 2018 (k units) Sales by Segment 467 452 500 A Veh 261 353 400 B Veh 275 1825 241 300 191 C Veh 969 171 134 125 200 119 D Veh 179 100 E Veh 27 Other Veh 4 0 Sandero Clio Duster Logan Captur Megane Kwid Kadjar Kangoo Vesta Small Van 323 JV Heavy Van 296 7 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Funding & Liquidity Credit Rating Automotive Division (excluding Avtovaz) AGENCY LONG-TERM SHORT-TERM OUTLOOK LATEST PRESS RELEASE / RATING RATING CREDIT ANALYSIS Moody's Baa3 P3 stable Credit opinion Mar 2019 ▪ Total funding : 7.8 billion € Standard & Poor's BBB A2 negative Press release Feb 2019 Fitch BBB - stable Press release Nov 2018 R&I A- - stable Press release Nov 2018 JCR A- - positive Press release March 2018 Redemption schedule Bonds, Banks & assimilated, excluding CP & redeemable shares (in million euros (1) ) Liquidity reserve: 15.9 G€ ▪ Available back- up lines : 3.5 billion € ▪ Cash & cash equivalents: 12.4 billion € (1) fx rates as of June 30, 2019 8 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
01.2 2019 H1 Results 9 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
H1 Key Take-Aways H1 results in line with expectations ▪ Resilience in a worsening auto context ▪ AVTOVAZ and RCI performance in line with expectations ▪ Stricter pricing discipline ▪ Cost control (FAST, digitalization) ▪ R&D and capitalization ratio increase due to products offensive 10 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Groupe Renault’s Sales H1 2019 vs H1 2018 2,079 1,939 World Market Share: 4.4% 1,071 1,071 International -13.9% 372 353 304 220 214 206 118 90 Thousand units 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 (PC+LCV) Africa-ME-India- Global Europe Eurasia Americas China Pacific TIV* -7.1% -2.5% -10.4% -8.4% -6.5% -12.6% -27.7% GROUP -6.7% -0.0% -5.2% -3.9% -23.8% * PC+LCV including USA & Canada 11 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Automotive Excluding AVTOVAZ Revenues Variance Analysis Change H1 2019 vs H1 2018: - €2,076m Volume -1,229 Sales to Geographic Product Price partners mix mix +257 -34 -30 -823 26,867 Currency Others -312 +95 24,791 +0.4 pts -4.6 pts -0.1 pts -0.1 pts +1.0 pt -3.1 pts -1.2 pts -7.7% (million euros) H1 2019 H1 2018 12 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Group Operating Profit Variance Analysis Raw G&A materials Monozukuri +23 -213 Mix / Net +385 Enrichment Volume & -95 partners -471 Currency AVTOVAZ (1) RCI Banque & others +78 1,914 -23 +56 Change vs H1 2018 : - €260m 1,654 (million euros) H1 2018 H1 2019 (1) AVTOVAZ net of eliminations 13 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
H1 2019 Financial Results H1 2018 H1 2019 Change In million euros Group Revenues 29,957 28,050 -6.4% Operating profit 1,914 1,654 -260 % of Group revenues 6.4% 5.9% -0.5 pts Other operating income & expenses -180 -133 +47 EBIT 1,734 1,521 -213 Net financial income & expenses -121 -184 -63 Associated companies 814 -35 -849 Current & deferred taxes -387 -254 +133 Net income 2,040 1,048 -992 14 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
Automotive Net Financial Position December 31, 2018: €3,702m Excl. AVTOVAZ January 1 st , 2019: €3,069m* Net tangible June 30, 2019: €1,470m Cash & intangible Change investments flow in WCR -2,910 -131 Net capex -1,442 2,274 Operational Capitalized Dividends R&D free Dividends received -984 cash flow paid from (million euros) listed co. Net Net -716 AVTOVAZ Change Leased Change +473 -484 FCF -1,077 Vehicles w/o with Financial IFRS 16 IFRS 16 +51 investments transition impact IFRS 16 & others Others from transition -1,599 AVTOVAZ impact -147 -132 -912 -2,232 -633 * IFRS 16 impact at transition date - €633m 15 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
H2 2019 Risks & Opportunities Risks Opportunities ▪ Hard Brexit ▪ New products launches ▪ Impact of global trade tensions ▪ Pricing improvement ▪ Regulatory framework ▪ Competitiveness action plans (FAST, unpredictability Digital) 16 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
2019 Outlook Within this context, Groupe Renault now expects : Europe Russia Brazil ▪ Revenues to be close to last year’s (at constant exchange rates and perimeter) and confirms: -2% to -3% ~ +8% stable ▪ Achieving Group operating (w/o hard Brexit) margin around 6% ▪ Generating a positive Automotive Global Automotive Market (1) operational free cash flow ~ -3% (1) The evolution of the global automotive market for all brands also called Total Industry Volume (TIV) indicates the annual variation in sales* volumes of passenger cars and light commercial vehicles** in the main countries including USA & Canada, provided by official authorities or statistical agencies in each country, and consolidated by Groupe Renault to constitute this world market (TIV). *Sales: registrations or deliveries or invoices according to the data available in each consolidated country. **Light commercial vehicles of less than 5.1 tons. 17 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017 PROPERTY OF GROUPE RENAULT
03 18 INVESTOR RELATIONS – 2019 PRESENTATION PROPERTY OF GROUPE RENAULT
FINANCE A SUSTAINABLE, PROFITABLE GROWTH STRONG HIGH LEVEL OF FINANCIAL REVENUE GROWTH OPERATING PROFIT DISCIPLINE in € bn >7,0% 6,4% >70 5% previous target becomes 51 floor 39 2,8% POSITIVE AUTOMOTIVE OPERATIONAL FREE CASH FLOW 2010 2016 End of plan* 2010 2016 End of plan EACH YEAR DRIVE THE CHANGE DRIVE THE FUTURE * incl. AVTOVAZ and with FX from banking consensus September 2017 19 INVESTOR RELATIONS – 2019 PRESENTATION PROPERTY OF GROUPE RENAULT
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