GROUPE RENAULT October 1 st , 2019 Credit Agricole CIB Automotive - - PowerPoint PPT Presentation

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GROUPE RENAULT October 1 st , 2019 Credit Agricole CIB Automotive - - PowerPoint PPT Presentation

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


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SLIDE 1 PROPERTY OF GROUPE RENAULT 1 INVESTOR RELATIONS – 2019 PRESENTATION

GROUPE RENAULT

October 1st, 2019 Credit Agricole CIB Automotive Credit Conference

OCTOBER 1, 2017
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SLIDE 2 PROPERTY OF GROUPE RENAULT 2 INVESTOR RELATIONS – 2019 PRESENTATION

Disclaimer

OCTOBER 1, 2017

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.”

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SLIDE 3 PROPERTY OF GROUPE RENAULT 3 INVESTOR RELATIONS – 2019 PRESENTATION

Agenda

OCTOBER 1, 2017

02 Renault Group – RCI Bank 01 Renault Group – Automotive

  • 1. Renault in Brief
  • 2. 2019H1 Results
  • 3. 2022 Mid Term Plan “Drive the Future”
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SLIDE 4 PROPERTY OF GROUPE RENAULT 4 INVESTOR RELATIONS – 2019 PRESENTATION

Renault in Brief

01.1

OCTOBER 1, 2017
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SLIDE 5 PROPERTY OF GROUPE RENAULT 5 INVESTOR RELATIONS – 2019 PRESENTATION

▪ 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

Investment Case

OCTOBER 1, 2017
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SLIDE 6 PROPERTY OF GROUPE RENAULT 6 INVESTOR RELATIONS – 2019 PRESENTATION

Renault – In Brief

OCTOBER 1, 2017

▪ 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

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SLIDE 7 PROPERTY OF GROUPE RENAULT 7 INVESTOR RELATIONS – 2019 PRESENTATION

Renault Sales in 2018

OCTOBER 1, 2017 65% 18% 2% 0% 10% 5%

Sales by Brand

Renault Dacia RSM Alpine Lada J&H Not JV JV 49% 12% 19% 11% 9%

Sales by Region

Europe AMEI Eurasia Americas Asia-Pacific 261 1825 969 179 27 4 323 296 A Veh B Veh C Veh D Veh E Veh Other Veh Small Van Heavy Van

Sales by Segment

467 452 353 275 241 191 171 134 125 119 100 200 300 400 500 Sandero Clio Duster Logan Captur Megane Kwid Kadjar Kangoo Vesta

Top 10 Model Sales in 2018 (k units)

JV
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SLIDE 8 PROPERTY OF GROUPE RENAULT 8 INVESTOR RELATIONS – 2019 PRESENTATION

▪ Total funding : 7.8 billion €

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 €

Automotive Division (excluding Avtovaz)

(1) fx rates as of June 30, 2019

Funding & Liquidity

OCTOBER 1, 2017 AGENCY LONG-TERM RATING SHORT-TERM RATING OUTLOOK LATEST PRESS RELEASE / CREDIT ANALYSIS Moody's Baa3 P3 stable Credit opinion Mar 2019 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

Credit Rating

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SLIDE 9 PROPERTY OF GROUPE RENAULT 9 INVESTOR RELATIONS – 2019 PRESENTATION

2019 H1 Results

01.2

OCTOBER 1, 2017
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SLIDE 10 PROPERTY OF GROUPE RENAULT 10 INVESTOR RELATIONS – 2019 PRESENTATION

▪ 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 H1 Key Take-Aways

OCTOBER 1, 2017

H1 results in line with expectations

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SLIDE 11 PROPERTY OF GROUPE RENAULT 11 INVESTOR RELATIONS – 2019 PRESENTATION

2,079 1,071 372 304 214 118 1,939 1,071 353 220 206 90

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

Groupe Renault’s Sales H1 2019 vs H1 2018

OCTOBER 1, 2017 Thousand units (PC+LCV) World Market Share: International TIV* GROUP 4.4%
  • 13.9%
Global Europe Eurasia Africa-ME-India- Pacific Americas China
  • 7.1%
  • 2.5%
  • 10.4%
  • 8.4%
  • 6.5%
  • 12.6%
  • 6.7%
  • 0.0%
  • 5.2%
  • 27.7%
  • 3.9%
  • 23.8%
* PC+LCV including USA & Canada
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SLIDE 12 PROPERTY OF GROUPE RENAULT 12 INVESTOR RELATIONS – 2019 PRESENTATION Currency Volume Geographic mix Sales to partners Others
  • 7.7%
  • 4.6 pts
  • 0.1 pts
  • 0.1 pts
+1.0 pt
  • 1.2 pts
+0.4 pts Price
  • 3.1 pts

H1 2018 H1 2019

Product mix

26,867

  • 1,229
  • 823
+257
  • 30
  • 34
+95
  • 312
(million euros)

Change H1 2019 vs H1 2018: -€2,076m

Automotive Excluding AVTOVAZ Revenues Variance Analysis

OCTOBER 1, 2017

24,791

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SLIDE 13 PROPERTY OF GROUPE RENAULT 13 INVESTOR RELATIONS – 2019 PRESENTATION Currency Volume & partners Mix / Net Enrichment G&A RCI Banque & others Monozukuri Raw materials AVTOVAZ(1) +385
  • 95
+56
  • 23

1,914

+23 +78
  • 213
  • 471

Change vs H1 2018 : -€260m

H1 2018 H1 2019

(million euros)

Group Operating Profit Variance Analysis

OCTOBER 1, 2017 (1) AVTOVAZ net of eliminations

1,654

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SLIDE 14 PROPERTY OF GROUPE RENAULT 14 INVESTOR RELATIONS – 2019 PRESENTATION

H1 2019 Financial Results

OCTOBER 1, 2017 In million euros

H1 2018 H1 2019 Change

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
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SLIDE 15 PROPERTY OF GROUPE RENAULT 15 INVESTOR RELATIONS – 2019 PRESENTATION Net tangible & intangible investments
  • 2,910
Capitalized R&D
  • 984
Net capex
  • 1,442
Operational free cash flow Cash flow Change in WCR Dividends paid Net Change w/o IFRS 16 transition Dividends received from listed co. Financial investments & others

December 31, 2018: €3,702m January 1st, 2019: €3,069m* June 30, 2019: €1,470m

(million euros) Leased Vehicles
  • 484
Others from AVTOVAZ AVTOVAZ FCF

Automotive Net Financial Position

OCTOBER 1, 2017
  • Excl. AVTOVAZ
  • 131

2,274

+51
  • 716
+473
  • 1,077
  • 912
  • 132
  • 1,599
  • 147
  • 2,232
Net Change with IFRS 16 impact IFRS 16 transition impact
  • 633
* IFRS 16 impact at transition date -€633m
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SLIDE 16 PROPERTY OF GROUPE RENAULT 16 INVESTOR RELATIONS – 2019 PRESENTATION

Opportunities

▪ New products launches ▪ Pricing improvement ▪ Competitiveness action plans (FAST, Digital)

Risks

▪ Hard Brexit ▪ Impact of global trade tensions ▪ Regulatory framework unpredictability H2 2019 Risks & Opportunities

OCTOBER 1, 2017
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SLIDE 17 PROPERTY OF GROUPE RENAULT 17 INVESTOR RELATIONS – 2019 PRESENTATION

2019 Outlook

OCTOBER 1, 2017

Within this context, Groupe Renault now expects :

▪ Revenues to be close to last year’s

(at constant exchange rates and perimeter)

Brazil Europe

stable

(w/o hard Brexit)
  • 2% to -3%

Russia

~ +8%

Global Automotive Market (1) ~ -3%

and confirms:

▪ Achieving Group operating margin around 6% ▪ Generating a positive Automotive

  • perational free cash flow
(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.
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SLIDE 18 PROPERTY OF GROUPE RENAULT 18 INVESTOR RELATIONS – 2019 PRESENTATION

03

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SLIDE 19 PROPERTY OF GROUPE RENAULT 19 INVESTOR RELATIONS – 2019 PRESENTATION 39 51 >70 2010 2016 End of plan*

A SUSTAINABLE, PROFITABLE GROWTH

FINANCE DRIVE THE CHANGE DRIVE THE FUTURE 2,8% 6,4% >7,0% 2010 2016 End of plan 5% previous target becomes floor

POSITIVE

AUTOMOTIVE OPERATIONAL FREE CASH FLOW

EACH YEAR * incl. AVTOVAZ and with FX from banking consensus September 2017

STRONG REVENUE GROWTH HIGH LEVEL OF OPERATING PROFIT FINANCIAL DISCIPLINE

in €bn
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SLIDE 20 PROPERTY OF GROUPE RENAULT 20 INVESTOR RELATIONS – 2019 PRESENTATION

WALKDOWN GROUP OPERATING MARGIN

FINANCE 2016 Cost Reduction Mix / Price / Enrichment Volume AVTOVAZ FX & Market risks & Raw materials 2022 2016 End of plan

6.4% >7%

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SLIDE 21 PROPERTY OF GROUPE RENAULT 21 INVESTOR RELATIONS – 2019 PRESENTATION

INVESTMENT POLICY

FINANCE

R&D SPENDING 2017-2022

€18bn

CAPEX AND R&D IN % OF REVENUES

6 7 8 9 10 2016 2017 2018 2019 2020 2021 2022 CAP AVERAGE 2017-2022

9%

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SLIDE 22 PROPERTY OF GROUPE RENAULT 22 INVESTOR RELATIONS – 2019 PRESENTATION

LIQUIDITY POLICY

FINANCE

NET CASH POSITION LIQUIDITY RESERVES

€2.7bn

2016 2017-2022

TARGET* ~ €5bn

2016 2017-2022*

€15.1bn

MINIMUM

20% OF

REVENUES

* Excluding IFRS 16 impact
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SLIDE 23 PROPERTY OF GROUPE RENAULT 23 INVESTOR RELATIONS – 2019 PRESENTATION

A COMPETITIVE DIVIDEND POLICY

FINANCE

100% PASS-THROUGH DIVIDENDS from listed companies PAY-OUT ON RENAULT CORE NET PROFIT

(Group Net Result – Associates)

+

COMPETITIVE RETURN FOR RENAULT’S SHAREHOLDERS

7% 15%

2016 End of plan

x2

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SLIDE 24 PROPERTY OF GROUPE RENAULT 24 INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017