Q3 2018 CONFERENCE INVESTOR RELATIONS Q3 2018 PRESENTATION OCTOBER - - PowerPoint PPT Presentation

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Q3 2018 CONFERENCE INVESTOR RELATIONS Q3 2018 PRESENTATION OCTOBER - - PowerPoint PPT Presentation

Q3 2018 CONFERENCE INVESTOR RELATIONS Q3 2018 PRESENTATION OCTOBER 23RD 2018 PROPERTY OF GROUPE RENAULT 1 DISCLAIMER Information contained within this document may contain forward looking statements. Although the Company considers that such


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PROPERTY OF GROUPE RENAULT

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

Q3 2018 CONFERENCE

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 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 – Q3 2018 PRESENTATION OCTOBER 23RD 2018

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Q3 2018 COMMERCIAL RESULTS UPDATE THIERRY KOSKAS EVP, SALES & MARKETING

02

Q3 2018 REVENUES & OUTLOOK CLOTILDE DELBOS EVP & CFO

03 QUESTIONS & ANSWERS

AGENDA

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

KEY TAKE-AWAYS

▪ WLTP WELL MANAGED ▪ PRE BUYING IMPACT IN Q3 EUROPEAN MARKET ▪ STRONG EFFORT TO COMPENSATE ADVERSE FX THROUGH PRICE INCREASES ▪ SHARP DECREASE IN DEMAND IN SOME OF OUR KEY MARKETS ▪ RISK: LOW VISIBILITY FOR Q4 IN EUROPE ▪ OPPORTUNITY: RUSSIA (VAZ) & BRAZIL ▪ FULL-YEAR GUIDANCE CONFIRMED

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

Q3 2018 COMMERCIAL RESULTS UPDATE

01

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

* PC+LCV including USA & Canada

TIV EVOLUTION Q3 2018 VS Q3 2017

RUSSIA +9.2% TURKEY

  • 51.3%

ALGERIA +39.8% MOROCCO

  • 9.1%

IRAN

  • 50.0%

INDIA

  • 0.6%

BRAZIL +11.9% ARGENTINA

  • 24.9%

COLOMBIA +4.7%

WORLD*

TIV

  • 2.4%

EURASIA

TIV

  • 8.3%

AFRICA-ME-INDIA

TIV

  • 10.7%

AMERICAS

TIV +0.2%

ASIA-PACIFIC

TIV

  • 1.4%

EUROPE

TIV +0.8% FRANCE +10.2% GERMANY +1.5% UK

  • 9.3%

SPAIN +14.3% ITALY

  • 7.6%

CHINA

  • 3.6%

SOUTH KOREA -2.9%

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

GROUPE RENAULT’S UNIT REGISTRATIONS Q3 2018 VS Q3 2017

K units (PC+LCV)

WORLD MARKET SHARE: 4.0% +0.2pts

TIV -3.0% GROUP -2.0% with J/H

  • 10.4% w/o J/H

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

GLOBAL EUROPE EURASIA AMI AMERICAS ASPA GROUP with JH +2.9% +8.6%

  • 5.6%
  • 24.4%

+0.2% +72.0%

GROUP w/o JH

  • 1.7%
  • 14.8%

TIV

  • 2.4%

+0.8%

  • 8.3%
  • 10.7%

+0.2%

  • 1.4%

INTERNATIONAL

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

36% 42% 48% 55% 52% 48%

REGIONAL SALES BREAKDOWN

WEIGHT OF INTERNATIONAL SALES

TOP 10 MARKETS BY VOLUME Q3 (in K units)

01 02 03 04 05 06 07 08 09 10 Volume Q3 2018 Market share vs. Q3 2017

FRANCE

142 25.0%

  • 0.3pts

RUSSIA

122 27.2%

  • 1.1pts

GERMANY

64 7.1% +1.3pts

BRAZIL

58 9.0% +0.5pts

CHINA (incl. JH)

50 0.8% +0.5pts

SPAIN

47 13.1%

  • 0.0pts

ITALY

43 10.6% +1.1pts

ARGENTINA

26 14.7% +0.4pts

IRAN

24 12.4% +1.3pts

UNITED KINGDOM

23 3.4%

  • 0.4pts

PC+LCV

55% 52% 48% 46% 48% 54% 52% 45% 48% 52% 54% 52% 46% 48%

Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018

International Europe

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

REGIONAL SALES BREAKDOWN

46% 48% 15% 11% 21% 20% 13% 12% 5% 9% Q3 2017 Q3 2018

Group sales PC+LCV - Q3

EUROPE AFRICA MIDDLE EAST INDIA EURASIA AMERICAS ASIA PACIFIC

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

Duster 1st SUV in Europe

PC Retail (All SUV segments–YTD August 2018)

KWID AMERICAS

In A-segment ▪ BRAZIL : #2 ▪ ARGENTINA : #2

DUSTER & NEW DUSTER

In C-Crossover segment ▪ FRANCE : #2 ▪ EUROPE : #4

EV CO-LEADER WITH NISSAN IN EUROPE

NEW MODELS – PERFORMANCE YTD SEPTEMBER 2018

ALPINE

▪ 5,250 reservations in Europe. ▪ Launch in Australia & Japan.

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Q3 2018 REVENUES & OUTLOOK

02

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Q3 2018 GROUP REVENUES

In million euros

Q3 2017 Q3 2018 CHANGE CHANGE

at constant exchange rate

GLOBAL UNIT SALES (units)

866,546 891,539* +2.9%*

GROUP REVENUES

12,218 11,484

  • 6.0%
  • 1.4%
  • /w AUTOMOTIVE

10,974 10,057

  • 8.4%**
  • 4.4%**
  • /w AVTOVAZ***

634 627

  • 1.1%

+11.4%

  • /w SALES

FINANCING

610 800 +31.1%** +37.1%**

* Including Jinbei & Huasong. Change without Jinbei & Huasong registrations: -1.7%

**Impact of the change in the accounting treatment of interest rate subsidies : -€142m on the Automotive excluding AVTOVAZ segment / +€142m on sales financing *** AVTOVAZ net of eliminations Nota Bene: revenues do not take into account the application of the requirements of IAS 29 - Financial Reporting in Hyperinflationary Economy for our business in Argentina, as the implementation of this standard has not yet been completed. This standard will be applied in our 2018 full year financials effective retroactively from January 1st, 2018.

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

Currency Volume Geographic mix Sales to partners Others*

  • 8.4%
  • 2.6 pts

+0.7 pts +0.2 pts +1.6 pts

  • 4.0 pts
  • 1.0 pt

Price

  • 3.3 pts

CHANGE Q3 2018 vs Q3 2017: -€917m

Q3 2017 Q3 2018

(million euros)

Product mix

* 10,974

  • 285
  • 358

+181 +19 +76

  • 106

REVENUES VARIANCE ANALYSIS

  • 241

10,057

  • 444

* Including a change in the accounting treatment of interest rate subsidies : -€142m on the Automotive excluding AVTOVAZ segment / +€142m on sales financing

AUTOMOTIVE EXCLUDING AVTOVAZ

Q3 2018 Q3 2017

  • 917*
  • /w FX
  • 444
  • 7
  • /w FX
  • 79

+190*

  • /w FX
  • 36

Automotive Avtovaz Sales Financing 11,484

GROUPE RENAULT

12,218

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591 565 670 620 609 613 697 660 588 267 166 326 209 275 190 340 236 286 324 399 344 411 334 423 357 424 302

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

GROUP INDEPENDENT DEALERS TOTAL

Number of days of sales (backward) (IN K UNITS)

76 59 78 63

NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ

61 71 57 76 68

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RCI BANQUE PERFORMANCE

Q3 2017 Q3 2018 CHANGE

REVENUES (€m)

610 800* +31.1%*

AVERAGE PERFORMING ASSETS (€m)

40,132 45,311 +12.9%

NEW CONTRACTS (units)

435,066 424,004

  • 2.5%

NEW FINANCINGS (€m)

5,022 5,016

  • 0.1%

*Impact of the change in the accounting treatment of interest rate subsidies : +€142m on sales financing

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2018 TIV OUTLOOK

RUSSIA

>+10%

CHINA

+2%

INDIA

+8%

BRAZIL

+10%

FRANCE

>+4%

EUROPE

>+1.5%

GLOBAL TIV*

+2%

* PC+LCV including USA & Canada

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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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QUESTIONS & ANSWERS

03

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APPENDIX

04

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2,749 1,423 380 508 292 145 2,971 1,503 349 546 325 248

2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018

K units (PC+LCV)

GROUPE RENAULT’S UNIT REGISTRATIONS YTD 2018 VS YTD 2017

GLOBAL EUROPE AMI EURASIA AMERICAS ASPA GROUP with JH +8.1% +5.6%

  • 8.3%

+7.5% +11.3% +70.3%

GROUP w/o JH

+3.5%

  • 14.8%

TIV +1.8% +2.3% +2.6% +3.1% +4.0% +2.0% INTERNATIONAL: +10.7% with JH

WORLD MARKET SHARE: 4.3% (+0.2pts)

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Q3 2018 YTD GROUP REVENUES

In million euros

Q3 2017

YTD

Q3 2018

YTD

CHANGE

GLOBAL UNIT SALES (Kunits)

2,749 2,971* +8.1%*

GROUP REVENUES

41,755 41,441

  • 0.8%
  • /w AUTOMOTIVE

37,969 36,924

  • 2.8%**
  • /w AVTOVAZ***

1,925 2,104 +9.3%

  • /w SALES FINANCING

1,861 2,413 +29.7%**

* Including Jinbei & Huasong. Change without Jinbei & Huasong registrations: +3.5% ** Impact of the change in the accounting treatment of interest rate subsidies : -€420m on the Automotive excluding AVTOVAZ segment / +€420m on sales financing *** AVTOVAZ net of eliminations Nota Bene: Revenues do not take into account the application of the requirements of IAS 29 - Financial Reporting in Hyperinflationary Economy for our business in Argentina, as the implementation of this standard has not yet been completed. This standard will be applied in our 2018 full year financials effective retroactively from January 1st, 2018.

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Currency Volume Geographic mix Sales to partners Others

  • 2.8%

+1.5 pts

  • 0.1 pts

+0.1 pts +1.3 pts

  • 4.4 pts

+0.0 pts Price

  • 1.2pts

CHANGE Q3 YTD 2018 vs Q3 YTD 2017: -€1,045m

Q3 2017 YTD Q3 2018 YTD

(million euros) Product mix

36,924* 37,969

+554

  • 453

+505 +42

  • 43

+34*

AUTOMOTIVE EXCLUDING AVTOVAZ REVENUES VARIANCE ANALYSIS

  • 1,684

* Including a change in the accounting treatment of interest rate subsidies for -420 €m on the Automotive excluding AVTOVAZ segment

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INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018

RCI BANQUE PERFORMANCE YTD

Q3 2017

YTD

Q3 2018

YTD CHANGE

REVENUES (€m)

1,861 2,413* +29.7%*

AVERAGE PERFORMING ASSETS (€m)

39,091 44,238 +13.2%

NEW CONTRACTS (units)

1,317,692 1,371,150 +4.1%

NEW FINANCINGS (€m)

15,374 16,071 +4.5%

* Impact of the change in the accounting treatment of interest rate subsidies : +€420m on sales financing