H1 2020 Financial Results INVESTOR RELATIONS H1 2020 PRESENTATION - - PowerPoint PPT Presentation

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H1 2020 Financial Results INVESTOR RELATIONS H1 2020 PRESENTATION - - PowerPoint PPT Presentation

H1 2020 Financial Results INVESTOR RELATIONS H1 2020 PRESENTATION JULY 30, 2020 PROPERTY OF GROUPE RENAULT 1 Disclaimer Information contained within this document may contain forward looking statements. Although the Company considers that


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PROPERTY OF GROUPE RENAULT

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

H1 2020 Financial Results

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 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 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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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

02 H1 2020 Financial Results

Clotilde Delbos

Deputy Chief Executive Officer Group Chief Financial Officer Agenda

03 Questions & Answers 01 CEO introduction

Luca de Meo

Chief Executive Officer

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

CEO Introduction

Luca de Meo

Chief Executive Officer

01

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

H1 2020 Financial Results

Clotilde Delbos

Deputy Chief Executive Officer Group Chief Financial Officer

02

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

▪ COVID-19 crisis impact ▪ Market slowdown even before the COVID-19 crisis ▪ Too high costs ▪ Adverse Forex & Raw materials ▪ Pricing discipline ▪ RCI resilience Key Take-Aways

H1 : An unprecedented situation

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

▪ 2o22 plan project ▪ Electrified line-up ▪ RCI Bank & Services ▪ Liquidity reserves

Levers for recovery:

Key Take-Aways

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

1,931 1,071 346 218 206 90 1,257 624 297 151 114 71 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020

Groupe Renault’s Sales H1 2020 vs H1 2019

Thousand units (PC+LCV)

World Market Share: International TIV* GROUP

4.0%

  • 26.4%

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

  • 28.3%
  • 38.9%
  • 14.1%
  • 29.9%
  • 37.7%
  • 20.7%
  • 34.9%
  • 41.8%
  • 14.1%
  • 30.8%
  • 44.7%
  • 21.1%

* PC+LCV including USA & Canada

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

H1 2020 Financial Results

In million euros

H1 2019 H1 2020 Change

Group Revenues 28,050 18,425

  • 34.3%

Operating profit 1,654

  • 1,203
  • 2,857

% of Group revenues 5.9%

  • 6.5%
  • 12.4 pts

Other operating income & expenses

  • 133
  • 804
  • 671

EBIT 1,521

  • 2,007
  • 3,528

Net financial income & expenses

  • 184
  • 214
  • 30

Associated companies

  • 35
  • 4,892
  • 4,857

Current & deferred taxes

  • 254
  • 273
  • 19

Net income 1,048

  • 7,386
  • 8,434
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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

H1 2020 Group Revenues

In million euros

H1 2019 H1 2020 Change

Global unit sales (units) 1,931,052 1,256,658

  • 34.9%

Group revenues 28,050 18,425

  • 34.3%
  • /w Automotive excl. AVTOVAZ

24,791 15,727

  • 36.6%
  • /w AVTOVAZ

(1)

1,557 1,089

  • 30.1%
  • /w Mobility Services
  • 9
  • /w Sales Financing

1,702 1,600

  • 6.0%

Q1 Q2

  • 21.3%
  • 48.6%

(1) AVTOVAZ net of eliminations (2) New segment as of 01/01/2020

(2)

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

28,050 18,425

  • 9,064
  • 468

+ 9

  • 102

Groupe Renault

Currency Volume Geographic mix Sales to partners Others

  • 36.6%
  • 29.6 pts

+0.2 pts +0.4 pts +2.0 pts

  • 1.5 pts
  • 0.8 pts

Price

  • 7.3 pts

H1 2019 H1 2020

Product mix

24,791

  • 7,335
  • 1,804

+496 +88 +57

  • 204
  • 362

(million euros)

Change H1 2020 vs H1 2019: -€9,064m

Automotive Excluding AVTOVAZ Revenues Variance Analysis

15,727

H1 2020 H1 2019

Automotive Avtovaz Mobility Services RCI

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

In million euros

H1 2019 H1 2020 Change

Group operating profit

% of Group revenues

1,654

5.9%

  • 1,203
  • 6.5%
  • 2,857
  • 12.4 pts
  • /w Automotive excl. AVTOVAZ

% of segment revenues

981

4.0%

  • 1,648
  • 10.5%
  • 2,629
  • 14.5 pts
  • /w AVTOVAZ

(1)

82

  • 2
  • 84
  • /w Mobility Services

(2)

  • 22
  • 22
  • /w Sales Financing

591 469

  • 122

H1 2020 Operating Profit by Activity

(1) AVTOVAZ net of eliminations (2) New segment as of 01/01/2020

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

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

  • 40
  • 203
  • 294
  • 84

1,654

+133

  • 201
  • 90
  • 2,078

Change H1 2020 vs H1 2019 : -€2,857m

H1 2019 H1 2020

(million euros)

Group Operating Profit Variance Analysis

(1) AVTOVAZ net of eliminations

  • 1,203
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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

+122 +50

  • 133
  • 79

+133 G&A Manufacturing & Logistics R&D Warranty Purchasing Monozukuri (million euros)

Change H1 2020 vs H1 2019: +€93m

Cost Reduction Analysis Excluding AVTOVAZ

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

  • 40
  • 203
  • 294
  • 84

1,654

+133

  • 201
  • 90
  • 2,078

Change H1 2020 vs H1 2019 : -€2,857m

H1 2019 H1 2020

(million euros)

Group Operating Profit Variance Analysis

(1) AVTOVAZ net of eliminations

  • 1,203
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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

H1 2019 H1 2020

New financings (€bn) 10.9 7.7 Average performing assets (€bn) 46.7 48.1 Net banking income 4.35% 4.22% Cost of risk (customer & dealer)

  • 0.40%
  • 0.99%

Operating expenses

  • 1.36%
  • 1.29%

Pretax income 2.62% 1.98% Operating profit (€m) 591 469

(in percentage of average performing assets)

RCI Banque

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

In million euros

H1 2019 H1 2020

Restructuring costs

  • 117
  • 166

Impairment of PP&E*, intangible assets and goodwill

  • 12
  • 445

Capital gain/loss on disposal of assets +3

  • 153

Others

  • 7
  • 40

Total other operating income & expenses

  • 133
  • 804

Other Operating Income & Expenses

* Property, Plant and Equipment

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

H1 2020 Financial Results

In million euros

H1 2019 H1 2020 Change

Group Revenues 28,050 18,425

  • 34.3%

Operating profit 1,654

  • 1,203
  • 2,857

% of Group revenues 5.9%

  • 6.5%
  • 12.4 pts

Other operating income & expenses

  • 133
  • 804
  • 671

EBIT 1,521

  • 2,007
  • 3,528

Net financial income & expenses

  • 184
  • 214
  • 30

Associated companies

  • 35
  • 4,892
  • 4,857

Current & deferred taxes

  • 254
  • 273
  • 19

Net income 1,048

  • 7,386
  • 8,434
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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

In million euros

H1 2019 H1 2020 Change

NISSAN

  • 21
  • 4,817
  • 4,796

Others

  • 14
  • 75
  • 61

Total associated companies

  • 35
  • 4,892
  • 4,857

Associated Companies

Q1 Q2

  • 3,573
  • 1,244
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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

H1 2020 Financial Results

In million euros

H1 2019 H1 2020 Change

Group Revenues 28,050 18,425

  • 34.3%

Operating profit 1,654

  • 1,203
  • 2,857

% of Group revenues 5.9%

  • 6.5%
  • 12.4 pts

Other operating income & expenses

  • 133
  • 804
  • 671

EBIT 1,521

  • 2,007
  • 3,528

Net financial income & expenses

  • 184
  • 214
  • 30

Associated companies

  • 35
  • 4,892
  • 4,857

Current & deferred taxes

  • 254
  • 273
  • 19

Net income 1,048

  • 7,386
  • 8,434
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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

Net tangible & intangible investments

  • 2,543

Capitalized R&D Net capex

  • 1,421

Operational free cash flow Cash flow*

Change in WCR Dividends paid

Net Change

Dividends received from listed co. Financial investments & others

December 31, 2019: +€1,734m June 30, 2020:

  • €4,998m

(million euros)

Leased vehicles

  • 464

Forex IFRS 16 impact AVTOVAZ FCF*

Automotive Net Financial Position

  • Excl. AVTOVAZ
  • 3,829

+22

+110

  • 6,375
  • 912
  • 427
  • 6,732

+77

  • 7
  • 658

Restructuring

  • 135

* w/o restructuring

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

660 588 622 656 630 603 599 660 547 236 285 182 300 218 290 157 270 189 424 303 440 356 412 313 442 390 358

JUN'18 SEP'18 DEC'18 MAR'19 JUN'19 SEP'19 DEC'19 MAR'20 JUN'20

(In thousand units)

New Vehicle Distribution Stock Excluding Avtovaz

Group Independent dealers Total

Number of days of sales (backward)

61 69 70 76 65 75 68 109 107

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

2o22 Cost Reduction Project on Track

2020 perspective in line with cost reduction objective for the year (30%)

H1 2020

ENGINEERING SG&A PRODUCTION

€433m

1- Execution of the €2bn reduction plan does not rely on new Alliance projects or external factors like market growth 2- Includes production labor cost savings

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INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

▪ E-TECH ▪ Pricing management ▪ Government incentives impact ▪ Pace of market recovery ▪ Content costs ▪ Covid-19 evolution H2 2020 Risks & Opportunities Risks Opportunities

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Questions & Answers

03

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H1 2020 Financial Results