H117 RENAULT PRESENTATION · 10/1/2019 · INVESTOR RELATIONS –2019 PRESENTATION PROPERTY OF...

PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – 2019 PRESENTATION

GROUPE RENAULT

October 1st, 2019

Credit Agricole CIB Automotive Credit Conference

OCTOBER 1, 2017


Disclaimer

OCTOBER 1, 2017

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.”


Agenda

OCTOBER 1, 2017

02 Renault Group – RCI Bank

01 Renault Group – Automotive

1. Renault in Brief

2. 2019H1 Results

3. 2022 Mid Term Plan “Drive the Future”


Renault in Brief

01.1

OCTOBER 1, 2017


▪ 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, 2017


Renault – 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&HNot 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 Van

Sales by Segment467 452

353

275241

191 171134 125 119

0

100

200

300

400

500

Sandero Clio Duster Logan Captur Megane Kwid Kadjar Kangoo Vesta

Top 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, 2019

Funding & 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 BBB - stable Press release Nov 2018

R&I A- - stable Press release Nov 2018

JCR A- - positive Press release March 2018

Credit Rating


2019 H1 Results

01.2

OCTOBER 1, 2017


▪ 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, 2017

H1 results in line with expectations


2,079

1,071

372 304214

118

1,939

1,071

353220 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%

-13.9%

Global Europe EurasiaAfrica-ME-India-

PacificAmericas China

-7.1% -2.5% -10.4% -8.4% -6.5% -12.6%

-6.7% -0.0% -5.2% -27.7% -3.9% -23.8%

* PC+LCV including USA & Canada


Currency

Volume

Geographicmix

Sales topartners

Others

-7.7%

-4.6 pts -0.1 pts -0.1 pts +1.0 pt -1.2 pts +0.4 pts

Price

-3.1 pts

H1 2018 H1 2019

Productmix

26,867

-1,229

-823+257

-30-34

+95-312

(million euros)

Change H1 2019 vs H1 2018: -€2,076m

Automotive Excluding AVTOVAZ Revenues Variance Analysis

OCTOBER 1, 2017

24,791


Currency

Volume & partners

Mix / Net Enrichment

G&A

RCI Banque& others

Monozukuri

Raw materials

AVTOVAZ(1)

+385

-95

+56-231,914

+23

+78

-213

-471

Change vs H1

2018 : -€260m

H1 2018 H1 2019(million euros)

Group Operating Profit Variance Analysis

OCTOBER 1, 2017

(1) AVTOVAZ net of eliminations

1,654


H1 2019 Financial Results

OCTOBER 1, 2017

In million euros H1 2018 H1 2019 Change

Group Revenues 29,957 28,050 -6.4%

Operating profit 1,914 1,654 -260

% of Group revenues 6.4% 5.9% -0.5 pts

Other operating income & expenses -180 -133 +47

EBIT 1,734 1,521 -213

Net financial income & expenses -121 -184 -63

Associated companies 814 -35 -849

Current & deferred taxes -387 -254 +133

Net income 2,040 1,048 -992


Net tangible& intangibleinvestments

-2,910

Capitalized

R&D

-984

Net capex

-1,442

Operational free

cash flow

Cash flow Change

in WCR

Dividendspaid

Net Change

w/oIFRS 16

transition

Dividends received

fromlisted co.

Financial investments

& others

December 31, 2018: €3,702m

January 1st, 2019: €3,069m*

June 30, 2019: €1,470m

(million euros)

LeasedVehicles -484

Others fromAVTOVAZ

AVTOVAZFCF

Automotive Net Financial Position

OCTOBER 1, 2017

Excl. AVTOVAZ

-131

2,274

+51

-716+473 -1,077

-912 -132

-1,599-147

-2,232

Net Change

withIFRS 16impactIFRS 16

transition impact

-633

* IFRS 16 impact at transition date -€633m


Opportunities

▪ 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, 2017


2019 Outlook

OCTOBER 1, 2017

Within this context,Groupe Renault now expects :

▪ Revenues to be close to last year’s(at constant exchange rates and perimeter)

BrazilEurope

stable(w/o hard Brexit)

-2% to -3%

Russia

~ +8%

Global Automotive Market (1)

~ -3%

and confirms:

▪ Achieving Group operatingmargin around 6%

▪ Generating a positive Automotive operational free cash flow

(1) The evolution of the global automotive market for all brands also called Total Industry Volume (TIV) indicates the annual variation in sales* volumes of passenger cars and light commercial vehicles** in the main countries

including USA & Canada, provided by official authorities or statistical agencies in each country, and consolidated by Groupe Renault to constitute this world market (TIV).

*Sales: registrations or deliveries or invoices according to the data available in each consolidated country.

**Light commercial vehicles of less than 5.1 tons.


03


39

51

>70

2010 2016 End of plan*

A SUSTAINABLE, PROFITABLE GROWTHFINANCE

DRIVE THE CHANGE DRIVE THE FUTURE

2,8%

6,4%>7,0%

2010 2016 End of plan

5% previous

target becomes

floor

POSITIVEAUTOMOTIVE

OPERATIONAL

FREE CASH FLOWEACH YEAR

* incl. AVTOVAZ and with FX from banking consensus September 2017

STRONGREVENUE GROWTH

HIGH LEVEL OF OPERATING PROFIT

FINANCIALDISCIPLINE

in €bn


WALKDOWN GROUP OPERATING MARGINFINANCE

2016 CostReduction

Mix / Price /Enrichment

Volume AVTOVAZ FX &Market risks &Raw materials

20222016 End of plan

6.4%

>7%


INVESTMENT POLICYFINANCE

R&D SPENDING2017-2022

€18bn

CAPEX AND R&DIN % OF REVENUES

6

7

8

9

10

2016 2017 2018 2019 2020 2021 2022

CAP AVERAGE

2017-2022

9%


LIQUIDITY POLICYFINANCE

NET CASH POSITION LIQUIDITY RESERVES

€2.7bn

2016 2017-2022

TARGET*

~ €5bn 2016 2017-2022*

€15.1bnMINIMUM

20% OFREVENUES

* Excluding IFRS 16 impact


A COMPETITIVE DIVIDEND POLICYFINANCE

100% PASS-THROUGH DIVIDENDSfrom listed companies

PAY-OUT ON RENAULTCORE NET PROFIT

(Group Net Result – Associates)

+

COMPETITIVE RETURN FOR RENAULT’S SHAREHOLDERS

7%15%

2016 End of plan

x2

PROPERTY OF GROUPE RENAULT 24INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017

H117 RENAULT PRESENTATION · 10/1/2019 · INVESTOR RELATIONS –2019 PRESENTATION PROPERTY OF...

Documents

Transcript of H117 RENAULT PRESENTATION · 10/1/2019 · INVESTOR RELATIONS –2019 PRESENTATION PROPERTY OF...