GROUPE RENAULT
October 1st, 2019 Credit Agricole CIB Automotive Credit Conference
OCTOBER 1, 2017
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
GROUPE RENAULT
October 1st, 2019 Credit Agricole CIB Automotive Credit Conference
OCTOBER 1, 2017Disclaimer
OCTOBER 1, 2017Information 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.”
Agenda
OCTOBER 1, 201702 Renault Group – RCI Bank 01 Renault Group – Automotive
Renault in Brief
▪ 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, 2017Renault – 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
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 VanSales 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 VestaTop 10 Model Sales in 2018 (k units)
JV▪ 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, 2019Funding & 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 BBBCredit Rating
2019 H1 Results
▪ 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, 2017H1 results in line with expectations
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%H1 2018 H1 2019
Product mix26,867
Change H1 2019 vs H1 2018: -€2,076m
Automotive Excluding AVTOVAZ Revenues Variance Analysis
OCTOBER 1, 201724,791
1,914
+23 +78Change vs H1 2018 : -€260m
H1 2018 H1 2019
(million euros)Group Operating Profit Variance Analysis
OCTOBER 1, 2017 (1) AVTOVAZ net of eliminations1,654
H1 2019 Financial Results
OCTOBER 1, 2017 In million eurosH1 2018 H1 2019 Change
Group Revenues 29,957 28,050
Operating profit 1,914 1,654
Other operating income & expenses
+47 EBIT 1,734 1,521
Net financial income & expenses
Associated companies 814
Current & deferred taxes
+133 Net income 2,040 1,048
December 31, 2018: €3,702m January 1st, 2019: €3,069m* June 30, 2019: €1,470m
(million euros) Leased VehiclesAutomotive Net Financial Position
OCTOBER 1, 20172,274
+51Opportunities
▪ 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, 20172019 Outlook
OCTOBER 1, 2017Within 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)Russia
~ +8%
Global Automotive Market (1) ~ -3%
and confirms:
▪ Achieving Group operating margin around 6% ▪ Generating a positive Automotive
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 floorPOSITIVE
AUTOMOTIVE OPERATIONAL FREE CASH FLOW
EACH YEAR * incl. AVTOVAZ and with FX from banking consensus September 2017STRONG REVENUE GROWTH HIGH LEVEL OF OPERATING PROFIT FINANCIAL DISCIPLINE
in €bnWALKDOWN GROUP OPERATING MARGIN
FINANCE 2016 Cost Reduction Mix / Price / Enrichment Volume AVTOVAZ FX & Market risks & Raw materials 2022 2016 End of plan6.4% >7%
INVESTMENT POLICY
FINANCER&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 2017-20229%
LIQUIDITY POLICY
FINANCENET CASH POSITION LIQUIDITY RESERVES
€2.7bn
2016 2017-2022
TARGET* ~ €5bn
2016 2017-2022*
€15.1bn
MINIMUM
20% OF
REVENUES
* Excluding IFRS 16 impactA COMPETITIVE DIVIDEND POLICY
FINANCE100% 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 planx2