H1 2018 FINANCIAL RESULTS INVESTOR RELATIONS H1 2018 PRESENTATION - - PowerPoint PPT Presentation

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2018 FINANCIAL RESULTS

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 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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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

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COO HIGHLIGHTS & OUTLOOK THIERRY BOLLORÉ EVP & COO

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QUESTIONS & ANSWERS

AGENDA

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H1 2018 FINANCIAL RESULTS CLOTILDE DELBOS EVP & CFO

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H2 2018 RISKS & OPPORTUNITIES THIERRY BOLLORÉ EVP & COO

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

COO HIGHLIGHTS & OUTLOOK

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2017 H1 2018

H1 2018 RECORD RESULTS

GLOBAL SALES +9.8%*

RECORD SALES

in million units

H1 2017 H1 2018

GROUP TURNOVER +1.4%

RECORD REVENUES

in billion euros

1.9

2.1*

29.5

30.0

* Including Jinbei & Huasong. Change without Jinbei & Huasong registrations: +5.3%

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2018 RECORD RESULTS

H1 2017 H1 2018

GROUP OPERATING MARGIN +0.2 pts

RECORD OPERATING PROFIT

in million euros

1,820

1,914*

H1 2017 H1 2018

OPERATING FREE CASH FLOW

358

418

POSITIVE FREE CASH FLOW

in million euros

* Including IFRS15 impact for - €70m

6.2% 6.4%*

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

Duster 1st SUV in Europe

PC Retail (All SUV segments–YTD May 2018)

KWID AMERICAS

In A-segment

• BRAZIL : #2
• ARGENTINA : #2

DUSTER & NEW DUSTER

In C-Crossover segment

• FRANCE : #2
• EUROPE : #5

EV LEADER IN EUROPE

• #1 on the EV Market (PC & LCV)

with ZOE & Kangoo ZE

NEW MODELS – PERFORMANCE YTD JUNE 2018

ALPINE

• 4800 reservations since

launch.

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2016* H1 2017 H1 2018

CAPEX AND R&D

In million euros and in % of Group revenues * without AVTOVAZ

1,479 1,292 1,146 1,126 873 842 Net R&D Expenses Net CAPEX

2,605

8.7%

2,165

7.3%

1,988

7.9%

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

2018 TIV OUTLOOK

RUSSIA

>+10%

CHINA

+5%

INDIA

+8%

BRAZIL

+10%

FRANCE

+2%

EUROPE

+1.5%

GLOBAL TIV*

+3%

* PC+LCV including USA & Canada

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 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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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2018 FINANCIAL RESULTS

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

1,882 1,026 323 252 182 100 1,982 1,071 372 240 214 86

85 85

GROUPE RENAULT’S UNIT REGISTRATIONS H1 2018 VS H1 2017

K units (PC+LCV)

WORLD MARKET SHARE: 4.3% +0.2pts

INTERNATIONAL +6.4% w/o J/H +16.4% with J/H GLOBAL +4.2% EUROPE +2.8% AMERICAS +6.3% ASIA-PACIFIC +4.3% AFRICA-ME-INDIA +10.1% EURASIA +9.4% TIV +4.4% +15.1%

• 4.5%

+18.1% GROUP +5.3% w/o J/H

+9.8% with J/H

• 14.8% w/o J/H

+69.5% with J/H

Renault, Dacia, Lada, RSM, Alpine Renault, Dacia, Lada, RSM, Alpine Jinbei, Huasong (J/H)

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2018 FINANCIAL RESULTS

In million euros

H1 2017 H1 2018 CHANGE

REVENUES

29,537 29,957 +1.4%

OPERATING PROFIT

1,820 1,914 +94

% OF GROUP REVENUES

6.2% 6.4% +0.2 pts OTHER OPERATING INCOME & EXPENSES

• 31
• 180
• 149

EBIT

1,789 1,734

• 55

NET FINANCIAL INCOME & EXPENSES*

• 187
• 121

+66

ASSOCIATED COMPANIES

1,317 814

• 503

CURRENT & DEFERRED TAXES*

• 482
• 387

+95

NET INCOME*

2,437 2,040

• 397

* 2017 restatement related to allocation of the purchase price paid for the AVTOVAZ Group and Renault SA redeemable shares

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2018 GROUP REVENUES

In million euros

H1 2017 H1 2018 CHANGE

GLOBAL UNIT SALES (units)

1,882,391 2,067,695* +9.8%*

GROUP REVENUES

29,537 29,957 +1.4%

• /w AUTOMOTIVE

26,995 26,867

• 0.5%**
• /w AVTOVAZ***

1,291 1,477 +14.4%

• /w SALES FINANCING

1,251 1,613 +28.9%**

Q1 Q2

• 2.5%

+1.1%

* Including Jinbei & Huasong. Change without Jinbei & Huasong registrations: +5.3 % **Change in the accounting treatment of interest rate subsidies : -€278m on the Automotive excluding AVTOVAZ segment / +€278m on sales financing *** AVTOVAZ net of eliminations

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

Currency Volume Geographic mix Sales to partners Others*

• 0.5%

+3.1 pts

• 0.4 pts

+0.1 pts +1.2 pts

• 4.6 pts

+0.5 pts

Price

• 0.4 pts

CHANGE H1 2018 vs H1 2017: -€128m

H1 2017 H1 2018

(million euros) Product mix

26,867* 26,995

+839

• 95

+324 +23

• 119

+140

• 1,240

AUTOMOTIVE EXCLUDING AVTOVAZ REVENUES VARIANCE ANALYSIS

* Including a change in the accounting treatment of interest rate subsidies for -€278m on the Automotive excluding AVTOVAZ segment

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

+254

• 56
• 192

+184 +160 +10

• 368

+102

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

COST REDUCTION +€198m

H1 2017

Monozukuri Raw materials

GROWTH +€170m

(million euros) AVTOVAZ**

CHANGE H1 2018 vs H1 2017 : +€94m

* Including IFRS15 impact for - €70m **AVTOVAZ net of eliminations

1,820 1,914*

H1 2018

GROUP OPERATING PROFIT VARIANCE ANALYSIS

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

+361 +30

• 28
• 109
• 56

CHANGE H1 2018 vs H1 2017: +€198m

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

COST REDUCTION ANALYSIS EXCLUDING AVTOVAZ

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

+254

• 56
• 192

+184 +160 +10

• 368

+102

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

COST REDUCTION +€198m

H1 2017

Monozukuri Raw materials

GROWTH +€170m

(million euros) AVTOVAZ**

CHANGE H1 2018 vs H1 2017 : +€94m

* Including IFRS15 impact for - €70m **AVTOVAZ net of eliminations

1,820 1,914*

H1 2018

GROUP OPERATING PROFIT VARIANCE ANALYSIS

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

In million euros

H1 2017 H1 2018 CHANGE

GROUP OPERATING PROFIT % GROUP REVENUES

1,820

6.2%

1,914*

6.4%

+94

+0.2pts

• /w AUTOMOTIVE

% AUTOMOTIVE REVENUES

1,292

4.8%

1,215*

4.5%

• 77
• 0.3pts
• /w AVTOVAZ**

3 105 +102

• /w SALES FINANCING

525 594 +69

H1 2018 OPERATING PROFIT BY ACTIVITY

* Including IFRS15 impact for - €70m **AVTOVAZ net of eliminations

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2017 H1 2018

NEW FINANCINGS (€Bn)

10.4 11.1

AVERAGE PERFORMING ASSETS (€Bn)

38.6 43.7

NET BANKING INCOME

4.44% 4.54%

COST OF RISK (CUSTOMER & DEALER)

• 0.29%
• 0.37%

OPERATING EXPENSES

• 1.37%
• 1.37%

PRETAX INCOME

2.83% 2.85%

OPERATING PROFIT (€m)

525 594

RCI BANQUE

(in percentage of average performing assets)

* From 2018 Cost of risk includes IFRS9 standards

*

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

In million euros

H1 2017 H1 2018

NET RESTRUCTURING COSTS

• 65
• 187

IMPAIRMENT OF ASSETS

• 13
• 34

CAPITAL GAIN/LOSS ON DISPOSAL OF FIXED ASSETS

+64 +46

OTHERS

• 17
• 5

TOTAL OTHER OPERATING INCOME & EXPENSES

• 31
• 180

OTHER OPERATING INCOME & EXPENSES (INCL. AVTOVAZ)

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2018 FINANCIAL RESULTS

In million euros

H1 2017 H1 2018 CHANGE

REVENUES

29,537 29,957 +1.4%

OPERATING PROFIT

1,820 1,914 +94

% OF GROUP REVENUES

6.2% 6.4% +0.2 pts OTHER OPERATING INCOME & EXPENSES

• 31
• 180
• 149

EBIT

1,789 1,734

• 55

NET FINANCIAL INCOME & EXPENSES*

• 187
• 121

+66

ASSOCIATED COMPANIES

1,317 814

• 503

CURRENT & DEFERRED TAXES*

• 482
• 387

+95

NET INCOME*

2,437 2,040

• 397

* 2017 restatement related to allocation of the purchase price paid for the AVTOVAZ Group and Renault SA redeemable shares

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

In million euros

H1 2017 H1 2018 CHANGE

NISSAN

1,288 805

• 483

OTHERS

29 9

• 20

TOTAL ASSOCIATED COMPANIES

1,317 814

• 503

ASSOCIATED COMPANIES

Q1 Q2 478 327

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2018 FINANCIAL RESULTS

In million euros

H1 2017 H1 2018 CHANGE

REVENUES

29,537 29,957 +1.4%

OPERATING PROFIT

1,820 1,914 +94

% OF GROUP REVENUES

6.2% 6.4% +0.2 pts OTHER OPERATING INCOME & EXPENSES

• 31
• 180
• 149

EBIT

1,789 1,734

• 55

NET FINANCIAL INCOME & EXPENSES*

• 187
• 121

+66

ASSOCIATED COMPANIES

1,317 814

• 503

CURRENT & DEFERRED TAXES*

• 482
• 387

+95

NET INCOME*

2,437 2,040

• 397

* 2017 restatement related to allocation of the purchase price paid for the AVTOVAZ Group and Renault SA redeemable shares

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

2,314 418

• 147

212 60 422

• 1,102
• 261

376

Net tangible & intangible investments

• 2,168

Capitalized R&D

• 791

Net capex

• 1,165

Operational free cash flow Cash flow

Change in WCR Dividends paid

Net change

Dividends received from listed co. Financial investments & others

DEC 31, 2017 : €3,209m* JUNE 30, 2018 : €3,062m

(million euros)

Leased Vehicles

• 212

AVTOVAZ

• ther

evolutions AVTOVAZ FCF

AUTOMOTIVE INCLUDING AVTOVAZ NET FINANCIAL POSITION

• Excl. AVTOVAZ

* Restated to include an adjustment of +€281m related to Renault SA redeemable shares

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

571 591 564 670 618 609 613 697 665 200 267 165 327 208 276 190 340 237 371 324 399 343 410 333 423 357 428

JUN'16 SEP'16 DEC'16 MAR'17 JUN'17 SEP'17 DEC'17 MAR'18 JUN'18

GROUP INDEPENDENT DEALERS TOTAL

Number of days of sales (backward)

60

(IN K UNITS)

76 59 78 63

NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ

62 71 57 76

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H2 2018 RISKS & OPPORTUNITIES

03

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H2 2018 RISKS & OPPORTUNITIES

• REGULATION’S IMPACT ON DEMAND
• EMERGING MARKETS VISIBILITY
• FOREX
• IRAN
• GROUP’S REACTIVITY IN A CHANGING ENVIRONMENT
• NEW PRODUCTS (DUSTER, KWID)
• PRICE INCREASES
• RUSSIA / AVTOVAZ

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INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

QUESTIONS & ANSWERS

04