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CONFERENCE INVESTOR RELATIONS FY 2017 PRESENTATION FEBRUARY 16TH - - PowerPoint PPT Presentation

2017 FINANCIAL RESULTS CONFERENCE INVESTOR RELATIONS FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 1 DISCLAIMER Information contained within this document may contain forward looking statements. Although the Company


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SLIDE 1 PROPERTY OF GROUPE RENAULT 1 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 FINANCIAL RESULTS

CONFERENCE

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SLIDE 2 PROPERTY OF GROUPE RENAULT 2 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

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 documentation registered within the French financial markets regulation authorities) and can lead to a difference between the exact figures and those given or deduced from said information and statements. 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, sufficiency, adequacy, effectiveness and genuineness of any statements and information contained in this report. 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 – FY 2017 PRESENTATION FEBRUARY 16TH 2018

01

FY 2017 FINANCIAL RESULTS CLOTILDE DELBOS

EVP, Group Chief Financial Officer

02

2017 KEY ACHIEVEMENTS / 2018 OUTLOOK CARLOS GHOSN

Chairman & Chief Executive Officer

AGENDA

03

QUESTIONS & ANSWERS

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SLIDE 4 PROPERTY OF GROUPE RENAULT 4 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

FY 2017 FINANCIAL RESULTS

CLOTILDE DELBOS

EVP, Group Chief Financial Officer

01

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SLIDE 5 PROPERTY OF GROUPE RENAULT 5 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

3,468 1,810 491 645 354 167

3,762 1,911 532 733 389 196 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017

K units (PC+LCV)

WORLD MARKET SHARE: 4.03% (+0.2pts)

GROUPE RENAULT’S UNIT REGISTRATIONS 2017 VS 2016 (incl. Lada)

GLOBAL EUROPE AMI EURASIA AMERICAS ASPA GROUP 8.5% 5.6% 8.4% 13.6% 9.9% 17.0% TIV 2.3% 3.3% 2.0% 7.0% 7.2% 2.7% INTERNATIONAL: +11.6%

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SLIDE 6 PROPERTY OF GROUPE RENAULT 6 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

* 2016 including Lada sales ** AVTOVAZ net of eliminations Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017

FY 2017 GROUP REVENUES

In million euros

2016 2017 CHANGE

GLOBAL UNIT SALES* (units)

3,468,174 3,761,634 +8.5%

GROUP REVENUES

51,243 58,770 +14.7%

  • /w AUTOMOTIVE excl. AVTOVAZ

48,995 53,530 +9.3%

  • /w AVTOVAZ**
  • 2,727

N/A

  • /w SALES FINANCING

2,248 2,513 +11.8%

H1 H2 +12.1% +6.5%

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SLIDE 7 PROPERTY OF GROUPE RENAULT 7 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

Currency Volume Geographic mix Sales to partners Others

+9.3%

+3.3 pts

  • 0.1 pts

+0.7 pts +1.5 pts

  • 0.7 pts

+2.0 pts Price +2.6 pts

2016 2017

Product mix

48,995 53,530

+1,585 +1,298 +738 +355

  • 68

+973

  • 346

(million euros)

CHANGE 2017 vs 2016: +€4,535m

AUTOMOTIVE EXCLUDING AVTOVAZ REVENUES VARIANCE ANALYSIS

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SLIDE 8 PROPERTY OF GROUPE RENAULT 8 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

In million euros

2016 2017 CHANGE

GROUP OPERATING PROFIT % of Group revenues

3,282

6.4%

3,854

6.6%

+572

+0.2pts

  • /w AUTOMOTIVE excl. AVTOVAZ

% of segment revenues

2,386

4.9%

2,749

5.1%

+363

+0.2pts

  • /w AVTOVAZ*
  • 55

+55

  • /w SALES FINANCING

896 1,050 +154

FY 2017 OPERATING PROFIT BY ACTIVITY

H1 H2

* AVTOVAZ net of eliminations Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017

4.8% 5.5%

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SLIDE 9 PROPERTY OF GROUPE RENAULT 9 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

Currency Volume & partners Mix / Net Enrichment G&A RCI Banque & others

COST REDUCTION +€538m

Monozukuri Raw materials

GROWTH +€906m

AVTOVAZ**

+663 +493 +413 +55

3,282 3,799 3,854

  • 125
  • 394
  • 230
  • 303

CHANGE 2017 vs 2016: +€572m

2016* 2017

  • incl. AVTOVAZ

(million euros)

2017

  • excl. AVTOVAZ

* 2016 excluding AVTOVAZ ** AVTOVAZ net of eliminations

GROUP OPERATING PROFIT VARIANCE ANALYSIS

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SLIDE 10 PROPERTY OF GROUPE RENAULT 10 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

G&A Manufacturing & Logistics R&D Warranty Purchasing Monozukuri (million euros)

+731 +75

  • 100
  • 43
  • 125

CHANGE 2017 vs 2016: +€538m

COST REDUCTION ANALYSIS EXCLUDING AVTOVAZ

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SLIDE 11 PROPERTY OF GROUPE RENAULT 11 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

Currency Volume & partners Mix / Net Enrichment G&A RCI Banque & others

COST REDUCTION +€538m

Monozukuri Raw materials

GROWTH +€906m

AVTOVAZ**

+663 +493 +413 +55

3,282 3,799 3,854

  • 125
  • 394
  • 230
  • 303

CHANGE 2017 vs 2016: +€572m

2016* 2017

  • incl. AVTOVAZ

(million euros)

2017

  • excl. AVTOVAZ

* 2016 excluding AVTOVAZ ** AVTOVAZ net of eliminations

GROUP OPERATING PROFIT VARIANCE ANALYSIS

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SLIDE 12 PROPERTY OF GROUPE RENAULT 12 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

In million euros

2016* 2017

NET RESTRUCTURING COSTS

  • 283
  • 56

IMPAIRMENT OF ASSETS

  • 38
  • 52

CAPITAL GAIN/LOSS ON DISPOSAL OF FIXED ASSETS

  • 4

+96

IMPACT OF AVTOVAZ FIRST FULL CONSOLIDATION

+325

  • OTHERS

+1

  • 36

TOTAL OTHER OPERATING INCOME & EXPENSES

+1

  • 48

OTHER OPERATING INCOME & EXPENSES

* 2016 excluding AVTOVAZ

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SLIDE 13 PROPERTY OF GROUPE RENAULT 13 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

FY 2017 FINANCIAL RESULTS

In million euros

2016 2017 CHANGE

REVENUES

51,243 58,770 +14.7%

OPERATING PROFIT

3,282 3,854 +572

% of Group revenues

6.4% 6.6% +0.2 pts OTHER OPERATING INCOME & EXPENSES

+1

  • 48
  • 49

EBIT

3,283 3,806 +523

NET FINANCIAL INCOME & EXPENSES

  • 323
  • 504
  • 181

ASSOCIATED COMPANIES

1,638 2,799 +1,161

CURRENT & DEFERRED TAXES

  • 1,055
  • 891

+164

NET INCOME

3,543 5,210 +1,667

* Excluding the impact of the US tax reform and Calsonic Kansei divestiture on Nissan contribution (-€1,021m): Net income = €4,189m Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017

*

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SLIDE 14 PROPERTY OF GROUPE RENAULT 14 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

In million euros

2016 2017 CHANGE

NISSAN

1,741 2,791* +1,050

AVTOVAZ

  • 89
  • +89

OTHERS

  • 14

8 +22

TOTAL ASSOCIATED COMPANIES

1,638 2,799 +1,161

ASSOCIATED COMPANIES

H1 H2 1,288 1,503

* €1,770m excluding the impact of the US tax reform and Calsonic Kansei divestiture on Nissan contribution (-€1,021m) Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017

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SLIDE 15 PROPERTY OF GROUPE RENAULT 15 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

FY 2017 FINANCIAL RESULTS

In million euros

2016 2017 CHANGE

REVENUES

51,243 58,770 +14.7%

OPERATING PROFIT

3,282 3,854 +572

% of Group revenues

6.4% 6.6% +0.2 pts OTHER OPERATING INCOME & EXPENSES

+1

  • 48
  • 49

EBIT

3,283 3,806 +523

NET FINANCIAL INCOME & EXPENSES

  • 323
  • 504
  • 181

ASSOCIATED COMPANIES

1,638 2,799 +1,161

CURRENT & DEFERRED TAXES

  • 1,055
  • 891

+164

NET INCOME

3,543 5,210 +1,667

* Excluding the impact of the US tax reform and Calsonic Kansei divestiture on Nissan contribution (-€1,021m): Net income = €4,189m Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017

*

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SLIDE 16 PROPERTY OF GROUPE RENAULT 16 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

Net tangible & intangible investments

  • 3,891

Capitalized R&D

  • 1,193

Net capex

  • 2,169

Operational free cash flow Cash flow

Change in WCR Dividends paid

Net change

Dividends received from listed co. Financial investments & others

DEC 31, 2016*: €2,416m DEC 31, 2017*: €2,928m

(million euros)

Leased Vehicles

  • 529

Others from AVTOVAZ AVTOVAZ FCF

AUTOMOTIVE NET FINANCIAL POSITION

  • Excl. AVTOVAZ

Share buy-back for employees

447

4,327

62

945

761

  • 996
  • 163
  • 121

86

512

* The figures at December 31, 2016 include adjustments relating to the allocation of the purchase price paid for the AVTOVAZ Group.

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SLIDE 17 PROPERTY OF GROUPE RENAULT 17 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

481 593 571 591 564 670 618 609 613 141 298 200 267 165 327 208 277 190 340 295 371 324 399 343 410 333 423

DEC'15 MAR'16 JUN'16 SEP'16 DEC'16 MAR'17 JUN'17 SEP'17 DEC'17

GROUP INDEPENDENT DEALERS TOTAL

Number of days of sales (backward)

60 55 78 76

(K units)

59 78 63 71

NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ

57

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SLIDE 18 PROPERTY OF GROUPE RENAULT 18 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

RCI BANQUE 2016 2017

NEW FINANCINGS (€bn)

17.9 20.6

AVERAGE PERFORMING ASSETS (€bn)

33.3 39.6

NET BANKING INCOME

4.41% 4.11%

COST OF RISK (CUSTOMER & DEALER)

  • 0.31%
  • 0.11%

OPERATING EXPENSES

  • 1.39%
  • 1.32%

PRETAX INCOME

2.74% 2.72%

OPERATING PROFIT (€m)

896 1,050

All percentages are calculated on average performing assets

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SLIDE 19 PROPERTY OF GROUPE RENAULT 19 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 KEY ACHIEVEMENTS 2018 OUTLOOK

CARLOS GHOSN

Chairman & Chief Executive Officer

02

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SLIDE 20 PROPERTY OF GROUPE RENAULT 20 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

REVENUES GROUP OPERATING MARGIN €50bn*

DRIVE THE CHANGE MAIN OBJECTIVES ACHIEVED A YEAR AHEAD

5%

* Without AVTOVAZ consolidation. Based on bank consensus FX rate at the beginning of 2014.

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SLIDE 21 PROPERTY OF GROUPE RENAULT 21 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 OBJECTIVES OVERACHIEVED & RECORD RESULTS

2016* 2017

GLOBAL SALES +8.5%

RECORD SALES

in million units

2016 2017

GROUP TURNOVER +14.7%

RECORD REVENUES

in billion euros

2016 2017

GROUP OPERATING PROFIT +17.4%

RECORD OPERATING PROFIT

in million euros

3.47

3.76

51.2

58.8

3,282

3,854

* 2016 including Lada sales

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SLIDE 22 PROPERTY OF GROUPE RENAULT 22 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 HIGHLIGHT: NEW STRATEGIC PLAN

€4.2bn

2017 - 2022 OBJECTIVES

€70bn

7%

REVENUES COP SAVINGS

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SLIDE 23 PROPERTY OF GROUPE RENAULT 23 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 ACHIEVEMENTS: WORLDWIDE PRODUCT LAUNCHES

NEW MODELS

ALPINE A110 NEW DUSTER

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SLIDE 24 PROPERTY OF GROUPE RENAULT 24 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 ACHIEVEMENTS: WORLDWIDE PRODUCT LAUNCHES

KWID CAPTUR ALASKAN

GEOGRAPHICAL EXTENSIONS

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SLIDE 25 PROPERTY OF GROUPE RENAULT 25 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 ACHIEVEMENTS: IMPROVED REGIONAL MIX

SALES & MARKET SHARES

UP IN ALL REGIONS

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SLIDE 26 PROPERTY OF GROUPE RENAULT 26 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

12 COUNTRIES

>100,000 SALES IN

2017 ACHIEVEMENTS: IMPROVED REGIONAL MIX

2017

GLOBAL SALES

OUTSIDE EUROPE

49

EUROPE

51

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SLIDE 27 PROPERTY OF GROUPE RENAULT 27 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 ACHIEVEMENTS: AVTOVAZ RETURN TO OPERATING PROFIT

OPERATING

RETURN TO

#1 BRAND

LADA

GROWTH

+17%

PROFIT IN RUSSIA

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SLIDE 28 PROPERTY OF GROUPE RENAULT 28 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 ACHIEVEMENTS: EV LEADERSHIP

+38%

90,000

ZOE CUMULATED

25%

WORLDWIDE MARKET SHARE EV SALES IN EUROPE SALES

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SLIDE 29 PROPERTY OF GROUPE RENAULT 29 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

CHENNAÏ

2017 ACHIEVEMENTS: SCALE EFFECTS

CMF-A PLATFORM

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SLIDE 30 PROPERTY OF GROUPE RENAULT 30 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

FLINS BARCELONA MEXICO CORDOBA

2017 ACHIEVEMENTS: SCALE EFFECTS

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SLIDE 31 PROPERTY OF GROUPE RENAULT 31 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 ALLIANCE INITIATIVE: LCV BUSINESS

MODELS

18 77% MARKET

COVERAGE

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SLIDE 32 PROPERTY OF GROUPE RENAULT 32 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2018 OUTLOOK

OPPORTUNITIES

  • NEW DUSTER
  • ALLIANCE SYNERGIES ACCELERATION
  • CONTINUING EMERGING MARKETS RECOVERY

RISKS

  • RISING RAW MATERIALS
  • FOREX UNCERTAINTIES
  • VOLATILITY IN MATURE MARKETS
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SLIDE 33 PROPERTY OF GROUPE RENAULT 33 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2018 TIV OUTLOOK RUSSIA

~ +10%

CHINA

>+5%

INDIA

+6%

BRAZIL

>+5%

FRANCE

+1%

EUROPE

+1%

GLOBAL TIV*

+2.5%

* PC+LCV including USA & Canada

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SLIDE 34 PROPERTY OF GROUPE RENAULT 34 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2018 OUTLOOK

THE GROUP IS AIMING TO:

* Excluding IFRS 15 impact

  • INCREASE GROUP REVENUES* (AT CONSTANT EXCHANGE RATES AND PERIMETER)
  • MAINTAIN GROUP OPERATING MARGIN ABOVE 6.0%*
  • GENERATE A POSITIVE AUTOMOTIVE OPERATIONAL FREE CASH FLOW
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SLIDE 35 PROPERTY OF GROUPE RENAULT 35 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

QUESTIONS & ANSWERS

03

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SLIDE 36 PROPERTY OF GROUPE RENAULT 36 INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018

2017 FINANCIAL RESULTS

CONFERENCE