Conference INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION - - PowerPoint PPT Presentation

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Conference INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION - - PowerPoint PPT Presentation

2019 Financial Results Conference INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020 PROPERTY OF GROUPE RENAULT 1 DISCLAIMER Information contained within this document may contain forward looking statements. Although the


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SLIDE 1 PROPERTY OF GROUPE RENAULT 1 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2019 Financial Results Conference

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SLIDE 2 PROPERTY OF GROUPE RENAULT 2 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

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

  • r 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.”

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SLIDE 3 PROPERTY OF GROUPE RENAULT 3 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

01

2019 Takeaways Clotilde Delbos

Acting CEO Chief Financial Officer

03

2020 Perspective & Outlook Clotilde Delbos

Acting CEO Chief Financial Officer

AGENDA

04 Questions & Answers 02

2019 Financial Results Thierry Piéton

Deputy Chief Financial Officer SVP Group Controller

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SLIDE 4 PROPERTY OF GROUPE RENAULT 4 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2019 Takeaways

Clotilde Delbos

Acting CEO Chief Financial Officer

01

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SLIDE 5 PROPERTY OF GROUPE RENAULT 5 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2019 Takeaways

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SLIDE 6 PROPERTY OF GROUPE RENAULT 6 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

Global Access

SOLID ASSETS: STRONG POSITIONS IN EV, LCV & GLOBAL ACCESS

EV LCV

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SLIDE 7 PROPERTY OF GROUPE RENAULT 7 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

SOLID ASSETS: INTERNATIONAL PRESENCE

Brazil Europe Russia India

ARKANA KWID SANDERO All-new CLIO TRIBER

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SLIDE 8 PROPERTY OF GROUPE RENAULT 8 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

EV

Sales +25%

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SLIDE 9 PROPERTY OF GROUPE RENAULT 9 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

LCV

Record sales

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SLIDE 10 PROPERTY OF GROUPE RENAULT 10 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

Dacia

Record sales

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SLIDE 11 PROPERTY OF GROUPE RENAULT 11 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

SOLID ASSETS: RCI ROBUSTNESS

Service contracts Penetration rate

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SLIDE 12 PROPERTY OF GROUPE RENAULT 12 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

SOLID ASSETS: ALLIANCE – CMF-B

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SLIDE 13 PROPERTY OF GROUPE RENAULT 13 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

SOLID ASSETS: ALLIANCE – CROSS MANUFACTURING

Maubeuge

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SLIDE 14 PROPERTY OF GROUPE RENAULT 14 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2019 ACHIEVEMENTS

pricing policy

Strict cost control

Improved

  • €121 million G&A
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SLIDE 15 PROPERTY OF GROUPE RENAULT 15 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2019 Financial Results

Thierry Piéton

Deputy Chief Financial Officer SVP Group Controller

02

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SLIDE 16 PROPERTY OF GROUPE RENAULT 16 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

3,884 1,921 748 562 437 217 3,754 1,946 751 453 425 180

GROUPE RENAULT’S SALES 2019 VS 2018

Thousand units (PC+LCV)

World Market Share: 4.25% (+0.1 pts) International TIV* GROUP

  • 7.9%
  • 2.9% w/o Iran

Global Europe Eurasia Africa-ME-India-Pacific Americas China

  • 4.8%
  • 3.8% w/o Iran

+1.2%

  • 4.4%
  • 8.5%
  • 3.8% w/o Iran
  • 5.6%
  • 8.2%
  • 3.4%
  • 0.8% w/o Iran

+1.3% +0.4%

  • 19.3%
  • 1.6% w/o Iran
  • 2.9%
  • 17.2%

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

* PC+LCV including USA & Canada

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SLIDE 17 PROPERTY OF GROUPE RENAULT 17 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2019 GROUP REVENUES

In million euros

2018 2019 Change

Global unit sales (units) 3,884,273 3,753,723

  • 3.4%

Group revenues 57,419 55,537

  • 3.3%
  • /w Automotive excl. AVTOVAZ

51,171 49,002

  • 4.2%
  • /w AVTOVAZ

(2)

3,040 3,130 +3.0%

  • /w Sales Financing

3,208 3,405 +6.1%

H1 H2

  • 7.7%
  • 0.4%

(1)

(1) Including Jinbei & Huasong (2) AVTOVAZ net of eliminations
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SLIDE 18 PROPERTY OF GROUPE RENAULT 18 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

Currency Volume Geographic mix Sales to partners Others

  • 4.2%
  • 1.4 pts
  • 0.2 pts

0 pt +1.7 pts

  • 0.7 pts
  • 0.2 pts

Price

  • 3.4 pts

Change Automotive excluding Avtovaz revenues 2019 vs 2018: -€2,169m

2018 2019

Product mix

51,171

  • 738
  • 1,747

+853 +10

  • 91
  • 88

49,002

  • 368

Automotive Excluding Avtovaz

Groupe Renault

2018 2019 Automotive RCI Avtovaz

  • 2,169

+90 +197 55,537 57,419

REVENUES VARIANCE ANALYSIS

(million euros)

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SLIDE 19 PROPERTY OF GROUPE RENAULT 19 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

In million euros

2018 2019 Change

Group operating profit

% of Group revenues

3,612

6.3%

2,662

4.8%

  • 950
  • 1.5 pts
  • /w Automotive excl. AVTOVAZ

% of segment revenues

2,204

4.3%

1,284

2.6%

  • 920
  • 1.7 pts
  • /w AVTOVAZ

(1)

204 155

  • 49
  • /w Sales Financing

1,204 1,223 +19

2019 OPERATING PROFIT BY ACTIVITY

H1 H2 4.0% 1.3%

(1) AVTOVAZ net of eliminations
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SLIDE 20 PROPERTY OF GROUPE RENAULT 20 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

Currency Volume & partners Mix / Net Enrichment G&A RCI Banque & others Monozukuri Raw materials AVTOVAZ(1)

+547

  • 587
  • 74
  • 49

3,612 2,662

+121

  • 2
  • 324

Change 2019 vs 2018: -€950m

  • 582

2018 2019

GROUP OPERATING PROFIT VARIANCE ANALYSIS

(1) AVTOVAZ net of eliminations

(million euros)

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SLIDE 21 PROPERTY OF GROUPE RENAULT 21 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

+458 +53 +106

  • 70

+121

G&A Manufacturing & Logistics R&D Warranty Purchasing Monozukuri

COST REDUCTION ANALYSIS EXCLUDING AVTOVAZ

Change 2019 vs 2018: +€668m +458 +53 +106 +121

  • 70

(million euros)

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SLIDE 22 PROPERTY OF GROUPE RENAULT 22 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

Currency Volume & partners Mix / Net Enrichment G&A RCI Banque & others Monozukuri Raw materials AVTOVAZ(1)

+547

  • 587
  • 74
  • 49

3,612 2,662

+121

  • 2
  • 324

Change 2019 vs 2018: -€950m

  • 582

2018 2019

GROUP OPERATING PROFIT VARIANCE ANALYSIS

(1) AVTOVAZ net of eliminations

(million euros)

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SLIDE 23 PROPERTY OF GROUPE RENAULT 23 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

In million euros

2018 2019

Net restructuring costs

  • 306
  • 236

Impairment of assets

  • 276
  • 229

Capital gain/loss on disposal of fixed assets +68

  • 15

Others

  • 111
  • 77

Total other operating income & expenses

  • 625
  • 557

OTHER OPERATING INCOME & EXPENSES

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SLIDE 24 PROPERTY OF GROUPE RENAULT 24 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2019 FINANCIAL RESULTS

In million euros

2018 2019 Change

Group Revenues 57,419 55,537

  • 3.3%

Operating profit 3,612 2,662

  • 950

% of Group revenues 6.3% 4.8%

  • 1.5 pts

Other operating income & expenses

  • 625
  • 557

+68 EBIT 2,987 2,105

  • 882

Net financial income & expenses

  • 353
  • 442
  • 89

Associated companies 1,540

  • 190
  • 1,730

Current & deferred taxes

  • 723
  • 1,454
  • 731

Net income 3,451 19

  • 3,432
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SLIDE 25 PROPERTY OF GROUPE RENAULT 25 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

In million euros

2018 2019 Change

NISSAN

1,509 242

  • 1,267

Others

31

  • 432
  • 463

Total associated companies

1,540

  • 190
  • 1,730

ASSOCIATED COMPANIES

H1 H2

  • 21

+263

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SLIDE 26 PROPERTY OF GROUPE RENAULT 26 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2019 FINANCIAL RESULTS

In million euros

2018 2019 Change

Group Revenues 57,419 55,537

  • 3.3%

Operating profit 3,612 2,662

  • 950

% of Group revenues 6.3% 4.8%

  • 1.5 pts

Other operating income & expenses

  • 625
  • 557

+68 EBIT 2,987 2,105

  • 882

Net financial income & expenses

  • 353
  • 442
  • 89

Associated companies 1,540

  • 190
  • 1,730

Current & deferred taxes

  • 723
  • 1,454
  • 731

Net income 3,451 19

  • 3,432
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SLIDE 27 PROPERTY OF GROUPE RENAULT 27 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

Net tangible & intangible investments

  • 5,848

Capitalized R&D

  • 1,925

Net capex

  • 2,921

Operational free cash flow Cash flow

Change in WCR

+1,829

Dividends paid

Net Change Incl. AVTOVAZ

Dividends received from listed co. Financial investments & others

(million euros)

  • 484

Currency & IFRS 16 impact AVTOVAZ FCF

AUTOMOTIVE NET FINANCIAL POSITION

  • Excl. AVTOVAZ

+1,027

4,144

+28 +153 +625

  • 1,120
  • 912
  • 293
  • 1,335
  • 700

December 31, 2018 : €3,702m January 1st, 2019 : €3,069m* December 31, 2019 : €1,734m

+802

Leased Vehicles

  • 1,002

* IFRS 16 impact at transition date -€633m Leased Vehicles

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SLIDE 28 PROPERTY OF GROUPE RENAULT 28 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

678 896 243 950 947 1,750 750 500

2020 2021 2022 2023 2024 2025 2026 2027

Auto Division liquidity reserves (Dec. 2019): €15.8 billion

Cash & cash equivalents: €12.3 billion Available back-up lines: €3.5 billion

LIQUIDITY

Redemption schedule – Renault SA

Bonds, Banks & assimilated, excluding CP & redeemable shares (in million euros)

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SLIDE 29 PROPERTY OF GROUPE RENAULT 29 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

(In thousand units)

NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ

Group Independent dealers Total

Number of days

  • f sales (backward)

613 697 660 588 622 656 630 603 599 190 340 236 285 182 300 218 290 157 423 357 424 303 440 356 412 313 442

DEC'17 MAR'18 JUN'18 SEP'18 DEC'18 MAR'19 JUN'19 SEP'19 DEC'19

57 76 61 69 70 76 65 75 68

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SLIDE 30 PROPERTY OF GROUPE RENAULT 30 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

RCI BANQUE

2018 2019

New financings (€bn) 20.9 21.4 Average performing assets (€bn) 44.4 47.4 Net banking income 4.34% 4.31% Cost of risk

(1) (customer & dealer)

  • 0.33%
  • 0.42%

Operating expenses

  • 1.27%
  • 1.26%

Pretax income 2.74% 2.80% Operating profit (€m) 1,204 1,223

All percentages are calculated on average performing assets

(1) As of 2018, Cost of risk reflects the application of IFRS 9 Standards
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SLIDE 31 PROPERTY OF GROUPE RENAULT 31 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2020 Perspective & Outlook

Clotilde Delbos

Acting CEO Chief Financial Officer

03

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SLIDE 32 PROPERTY OF GROUPE RENAULT 32 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2020

Challenges

▪ CAFE ▪ Enrichment and regulation costs ▪ Capex + R&D spendings ▪ China ▪ CAFE ▪ Enrichment and regulation costs ▪ Capex + R&D spendings ▪ China

2020

Challenges

2020

Levers

▪ Electrification ▪ Pricing policy ▪ Cost management ▪ Alliance’s new paradigm ▪ Renewed leadership

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SLIDE 33 PROPERTY OF GROUPE RENAULT 33 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE

All-new ZOE

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SLIDE 34 PROPERTY OF GROUPE RENAULT 34 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

BEV HEV PHEV

2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE

2019 2020 2021-2022

New vehicle New version All-New CAPTUR E-TECH plug-in MEGANE E-TECH plug-in All-New CLIO E-TECH 1st CMF-EV TWINGO Z.E. All-New ZOE

Renault E-TECH 100% electric

Dacia Urban City car

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SLIDE 35 PROPERTY OF GROUPE RENAULT 35 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE

E-TECH

All-new CLIO E-TECH All-new CAPTUR E-TECH plug-in MEGANE E-TECH plug-in

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SLIDE 36 PROPERTY OF GROUPE RENAULT 36 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE

0 g 120 g Other ICE HEV + DIESEL BEV + PHEV LPG

2019 2020

EV PHEV HEV DIESEL LPG PETROL

10% BEV + PHEV

~30% HEV + DIESEL ~10% LPG

Passenger Cars Europe Mix

CO2 level*

* Average CO2 emission per km per vehicle (NEDC-BT)

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SLIDE 37 PROPERTY OF GROUPE RENAULT 37 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

GROUPE RENAULT ROADMAP TO 2020 CAFE TARGET

2018 NEDC NEDC-BT Mix ICE improvement & EV 2019 NEDC-BT Electrification ICE & Mix management Supercredit & Phase-in 2020 NEDC-BT

112 g 118 g 93 g

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SLIDE 38 PROPERTY OF GROUPE RENAULT 38 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2020 PERFORMANCE LEVER: PRICING POLICY IMPROVEMENT

All-new CLIO All-new CAPTUR All-new ZOE All-new CAPTUR E-TECH plug-in All-new CLIO E-TECH

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SLIDE 39 PROPERTY OF GROUPE RENAULT 39 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2020 PERFORMANCE LEVER: ALLIANCE NEW PARADIGM

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SLIDE 40 PROPERTY OF GROUPE RENAULT 40 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2020 PERFORMANCE LEVER: COST MANAGEMENT

Optimization of industrial footprint and sub-contractors Review of Make-or-Buy strategy Review of non-core assets Implementation of Leader-Follower strategy

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SLIDE 41 PROPERTY OF GROUPE RENAULT 41 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2020 OUTLOOK*

Within this context, Groupe Renault is aiming to*:

▪ Achieve Group revenues in line with 2019

(at constant exchange rates and perimeter)

▪ Achieve Group operating margin between 3% and 4% ▪ Generate a positive Automotive

  • perational free cash flow,

before restructuring expenses

** PC+LCV including USA & Canada

Brazil Europe

  • 3% at least

~-3%

Russia

~+5% Global Automotive Market**

* without possible impact of Coronavirus health crisis

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SLIDE 42 PROPERTY OF GROUPE RENAULT 42 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

Questions & Answers

04

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SLIDE 43 PROPERTY OF GROUPE RENAULT 43 INVESTOR RELATIONS: FISCAL YEAR 2019 PRESENTATION FEBRUARY 14, 2020

2019 Financial Results Conference