H1 2018 FINANCIAL RESULTS - Renault · investor relations –h1 2018 presentation july 27th 2018...
Transcript of H1 2018 FINANCIAL RESULTS - Renault · investor relations –h1 2018 presentation july 27th 2018...
PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
H1 2018 FINANCIAL RESULTS
PROPERTY OF GROUPE RENAULT 2INVESTOR 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.
PROPERTY OF GROUPE RENAULT 3INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
01 COO HIGHLIGHTS & OUTLOOKTHIERRY BOLLORÉEVP & COO
04 QUESTIONS & ANSWERS
AGENDA
02 H1 2018 FINANCIAL RESULTSCLOTILDE DELBOSEVP & CFO
03 H2 2018 RISKS & OPPORTUNITIESTHIERRY BOLLORÉEVP & COO
PROPERTY OF GROUPE RENAULT 4INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
COO HIGHLIGHTS & OUTLOOK
01
PROPERTY OF GROUPE RENAULT 5INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
H1 2017 H1 2018
H1 2018 RECORD RESULTS
GLOBAL SALES+9.8%*
RECORD SALESin million units
H1 2017 H1 2018
GROUP TURNOVER+1.4%
RECORD REVENUESin billion euros
1.9
2.1*
29.530.0
* Including Jinbei & Huasong. Change without Jinbei & Huasong registrations: +5.3%
PROPERTY OF GROUPE RENAULT 6INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
H1 2018 RECORD RESULTS
H1 2017 H1 2018
GROUP OPERATING MARGIN+0.2 pts
RECORD OPERATING PROFITin 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%*
PROPERTY OF GROUPE RENAULT 7INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
Duster 1st SUV in Europe PC Retail (All SUV segments–YTD May 2018)
KWID AMERICASIn A-segment
BRAZIL : #2
ARGENTINA : #2
DUSTER & NEW DUSTERIn 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.
PROPERTY OF GROUPE RENAULT 8INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
H1 2016* H1 2017 H1 2018
CAPEX AND R&DIn million euros and in % of Group revenues
* without AVTOVAZ
1,4791,2921,146
1,126
873842
Net R&D Expenses
Net CAPEX
2,605
8.7%
2,165
7.3%
1,988
7.9%
PROPERTY OF GROUPE RENAULT 9INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
2018 TIV OUTLOOKRUSSIA>+10%
CHINA+5%
INDIA+8%
BRAZIL+10%
FRANCE+2%
EUROPE+1.5%
GLOBAL TIV*
+3%* PC+LCV including USA & Canada
PROPERTY OF GROUPE RENAULT 10INVESTOR 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
PROPERTY OF GROUPE RENAULT 11INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
H1 2018 FINANCIAL RESULTS
02
PROPERTY OF GROUPE RENAULT 12INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
1,882
1,026323
252182
100
1,982
1,071
372240
21486
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)
PROPERTY OF GROUPE RENAULT 13INVESTOR 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
PROPERTY OF GROUPE RENAULT 14INVESTOR 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%
o/w AUTOMOTIVE 26,995 26,867 -0.5%**
o/w AVTOVAZ*** 1,291 1,477 +14.4%
o/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
PROPERTY OF GROUPE RENAULT 15INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
CurrencyVolume
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
PROPERTY OF GROUPE RENAULT 16INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
+254
-56
-192 +184
+160
+10
-368
+102
CurrencyVolume &
partners
Mix / Net Enrichment
G&A
RCI Banque
& others*
COST
REDUCTION
+€198m
H1 2017
MonozukuriRaw
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
PROPERTY OF GROUPE RENAULT 17INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
+361
+30-28
-109
-56
CHANGE H1 2018 vs H1 2017: +€198m
G&AManufacturing &
Logistics
R&DWarrantyPurchasing
Monozukuri
(million euros)
COST REDUCTION ANALYSIS EXCLUDING AVTOVAZ
PROPERTY OF GROUPE RENAULT 18INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
+254
-56
-192 +184
+160
+10
-368
+102
CurrencyVolume &
partners
Mix / Net Enrichment
G&A
RCI Banque
& others*
COST
REDUCTION
+€198m
H1 2017
MonozukuriRaw
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
PROPERTY OF GROUPE RENAULT 19INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
In million euros H1 2017 H1 2018 CHANGE
GROUP OPERATING PROFIT
% GROUP REVENUES
1,8206.2%
1,914*6.4%
+94+0.2pts
o/w AUTOMOTIVE
% AUTOMOTIVE REVENUES
1,2924.8%
1,215*4.5%
-77-0.3pts
o/w AVTOVAZ** 3 105 +102
o/w SALES FINANCING 525 594 +69
H1 2018 OPERATING PROFIT BY ACTIVITY
* Including IFRS15 impact for - €70m
**AVTOVAZ net of eliminations
PROPERTY OF GROUPE RENAULT 20INVESTOR 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
*
PROPERTY OF GROUPE RENAULT 21INVESTOR 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)
PROPERTY OF GROUPE RENAULT 22INVESTOR 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
PROPERTY OF GROUPE RENAULT 23INVESTOR 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
PROPERTY OF GROUPE RENAULT 24INVESTOR 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
PROPERTY OF GROUPE RENAULT 25INVESTOR 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
Changein WCR
Dividendspaid
Net change
Dividends received
fromlisted co.
Financial investments
& others
DEC 31, 2017 : €3,209m*
JUNE 30, 2018 : €3,062m
(million euros)
LeasedVehicles -212
AVTOVAZother
evolutions
AVTOVAZFCF
AUTOMOTIVE INCLUDING AVTOVAZ NET FINANCIAL POSITION
Excl. AVTOVAZ
* Restated to include an adjustment of +€281m related to Renault SA redeemable shares
PROPERTY OF GROUPE RENAULT 26INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
571 591564
670618 609 613
697665
200
267
165
327
208
276
190
340
237
371324
399343
410
333
423
357
428
JUN'16 SEP'16 DEC'16 MAR'17 JUN'17 SEP'17 DEC'17 MAR'18 JUN'18
GROUP
INDEPENDENTDEALERS
TOTAL
Number of days of sales
(backward)60
(IN K UNITS)
76 59 78 63
NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ
6271 57 76
PROPERTY OF GROUPE RENAULT 27INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
H2 2018 RISKS & OPPORTUNITIES
03
PROPERTY OF GROUPE RENAULT 28INVESTOR 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
PROPERTY OF GROUPE RENAULT 29INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018
QUESTIONS & ANSWERS
04