RENAULT GROUP FINANCIAL RESULTS FIRST HALF 2013 · RENAULT GROUP H1 2013 JULY 26, 2013 RENAULT...

RENAULT PROPERTYRENAULT GROUP H1 2013 JULY 26, 2013

RENAULT GROUP

FINANCIAL RESULTS FIRST HALF 2013

2RENAULT PROPERTYRENAULT GROUP H1 2013 JULY 26, 2013

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.renault.com),

in the section Finance / Regulated Information.

DISCLAIMER


01 FINANCIAL RESULTS H1 2013 DOMINIQUE THORMANNCFO

02 OPERATIONS UPDATE & OUTLOOKCARLOS TAVARESCOO

03 QUESTIONS & ANSWERS

AGENDA


FINANCIAL RESULTS H1 2013

DOMINIQUE THORMANN

CFO

01


RENAULT GROUP UNIT SALES H1 2013 vs H1 2012

1,328

708

104184 215

117

1,303

657

114197 210

125

H1'12 H1'13 H1'12 H1'13 H1'12 H1'13 H1'12 H1'13 H1'12 H1'13 H1'12 H1'13

GLOBAL

-1.9%

EUROPE

-7.3%

AMERICAS

-2.4%

ASIA-PACIFIC

+7.8%

EUROMED-AFRICA

+6.7%

EURASIA

+9.9%

INTERNATIONAL +4.3%

K units

(PC+LCV)


H1 2012* H1 2013 CHANGE

Revenues 20,622 20,441 -181

Operating margin +508 +583 +75

in % of revenues +2.5% +2.9% +0.4pts

Other operating income & expenses +37 -832 -869

EBIT +545 -249 -794

Net financial income & expenses -154 -139 +15

Associated companies +619 +749 +130

Current & deferred taxes -236 -264 -28

Net income +774 +97 -677

(million euros)

H1 2013 FINANCIAL RESULTS

* Restated from retrospective application of IFRS 11 “Joint Arrangements” and IAS 19 (revised) “Employee benefits”


H1 2012* H1 2013 CHANGE

Global unit sales (units) 1,328,437 1,302,854 -1.9%

Group revenues 20,622 20,441 -0.9%

of which: Automotive 19,553 19,383 -0.9%

Sales financing 1,069 1,058 -1.0%

Q1 Q2

-11.8 % +8.2%

H1 2013 GROUP REVENUES DOWN 0.9%

(million euros)



AUTOMOTIVE REVENUES VARIANCE ANALYSIS

Currency

VolumeGeographical

mix

Mix

Sales to

partners

Others

-0.9%

-3.1pts -0.8pts -0.0pts +0.7pts +1.0pts -0.7pts

Price

+2.0pts

CHANGE H1 2013 / H1 2012 : - €170m

H1 2012 * H1 2013

(million euros)



GROUP OPERATING MARGIN VARIANCE ANALYSIS

Currency

Volume

Mix / priceenrichment

R&D

G&A

RCI

Others

Manufacturing & Logistics

+€206

H1 2012* H1 2013(million euros)

CHANGE H1 2013 / H1 2012 : +€75m

Purchasing

Warranty

Raw materials



OPERATING MARGIN BY ACTIVITY

H1 2012* H1 2013 CHANGE

AUTOMOTIVE +116 +211 +95

% Automotive revenues +0.6% +1.1% +0.5pts

SALES FINANCING +392 +372 -20

% Sales Financing revenues +36.7% +35.2% -1.5pts

GROUP OPERATING MARGIN +508 +583 +75

% Group revenues 2.5% 2.9% +0.4pts

(million euros)



RCI BANQUE

in % of average loans outstandingH1 2012* H1 2013

New financing (€bn) 5.6 5.5

Average loans outstanding (€bn) 24.1 24.0

Net banking income 5.32 % 5.07%

Cost of risk (customer & dealer) -0.44 % -0.40%

Operating expenses -1.54 % -1.57%

Pretax income 3.36 % 3.19%

(in percentage of average loans outstanding)



OTHER OPERATING INCOME & EXPENSES

H1 2012 H1 2013

Provision on Iran exposure - -512

Impairment of assets / reversal -38 -227

Net restructuring costs

(incl. competitiveness agreement in France)-45 -173

Profit / loss on asset sales +29 +71

Others +91 +9

Total other operating income & expenses +37 -832

(million euros)



H1 2012* H1 2013 CHANGE

Revenues 20,622 20,441 -181




EBIT +545 -249 -794




Net income +774 +97 -677

(million euros)



ASSOCIATED COMPANIES

H1 2012* H1 2013 CHANGE

Nissan +553 +766 +213

AB Volvo +68 - -68

AVTOVAZ (1) +4 -10 -14

Others -6 -7 -1

Total associated companies +619 +749 +130

(1) AVTOVAZ is consolidated with a 3 months time lag Q1 Q2

+433 +333

(million euros)




H1 2012* H1 2013 CHANGE

Revenues 20,622 20,441 -181




EBIT +545 -249 -794




Net income +774 +97 -677

(million euros)



AUTOMOTIVE NET CASH POSITION

Operational

free cash flow

Cash flow

+1,655 Change

in WCR

Dividends

paid

Net tangible

& intangible

investments

- 1,548

Net cash

decrease

Dividends

received

from

listed co.Leased

Vehicles

-374

Capitalized

R&D

Financial

investments

& others

-985

Net capex

-524

-462

DEC. 31, 2012 *: € 1,532m

JUNE 30, 2013: € 732m

-31

-800


+217

(million euros)


CHANGE IN WORKING CAPITAL REQUIREMENT

(million euros)

Others

Inventory

Account

receivables

Total

JUNE 30, 2013 vs DEC. 31, 2012

Account

payables


DISTRIBUTION STOCK

NEW VEHICLE DISTRIBUTION STOCK (IN K UNITS)

405

482459

421445

481507

153

262

180

228

131

241

140

252220

279

193

314

240

367

DEC'11 MAR'12 JUN'12 SEP'12 DEC'12 MAR'13 JUN'13

GROUP

INDEPENDENTDEALERS

TOTAL

Number of days of sales

(previous period)

52 69 61 65 7265 67


LIQUIDITY RESERVES

Cash = € 10.1 bn

Available credit lines = € 3.5 bn

TOTAL = € 13.6 bn

LIQUIDITY RESERVES

Cash = € 9.2 bn

Available credit lines = € 3.4 bn

TOTAL = € 12.6 bn

AUTOMOTIVE DIVISION LIQUIDITY

DECEMBER 2012 JUNE 2013

ISSUED IN H1 2013:

� BONDS

� ¥ 38bn June 2015 @ 1.92%

� CNY 750m April 2016 @ 4.65%

� EIB loan €400m


RCI LIQUIDITY

LIQUIDITY RESERVES

Cash = €0.6 bn

ECB eligible = €1.9 bn

Available credit lines = €4.4 bn

TOTAL = €6.9 bn

LIQUIDITY RESERVES

Cash = €0.4 bn

ECB eligible = €2.2 bn

Available credit lines = €4.0 bn

TOTAL = €6.6 bn

DECEMBER 2012 JUNE 2013

ISSUED IN H1 2013:

� 3 EURO BONDS

� €100 m 2017 @ 4.250 %

� €600 m 2018 @ 2.875 %

� €500 m 2016 @ 1.75 %

� 1 USD BOND

� 600 m 2018 @ 3.50 %

� 1 GBP BOND

� 300 m 2018 @ 3.25 %

� 1 CHF BOND

� 100 m 2016 @ 1.50 %

� 1 SGD BOND (Singapore dollar)

� 48 m 2018 @ 3.00 %Central funding perimeter


End 2012 End June 2013

COLLECTED AMOUNT (in € m) 893 2,586

o/w GERMANY - 1,394

o/w FRANCE 893 1,192

RCI BANQUE RETAIL DEPOSIT ACTIVITYA GROWING SUCCESS

• 2016 TARGET: 20 TO 25% OF RCI BANQUE OUTSTANDING


OPERATIONS UPDATE & OUTLOOK

CARLOS TAVARES

COO

02


* TIV PC+LCV including USA+Canada

TIV & GROUP UNIT SALES H1 2013 vs H1 2012

EURASIA

EUROMED-AFRICA

ASIA-PACIFIC

AMERICAS

EUROPE GLOBAL*

TIV -6.7%GROUP -7.3%

TIV +2.3% GROUP -1.9%

TIV -3.3% GROUP +9.9%

TIV +8.3%GROUP +6.7%

TIV +3.6%GROUP +7.8%

TIV +5.4%GROUP -2.4%

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* TIV PC + LCV INCLUDING USA & CANADA


RENAULT GROUP UNIT SALES H1 2013 vs H1 2012

1,328

708

104184 215

117

1,303

657

114197 210

125

H1'12 H1'13 H1'12 H1'13 H1'12 H1'13 H1'12 H1'13 H1'12 H1'13 H1'12 H1'13

GLOBAL

-1.9%

EUROPE

-7.3%

AMERICAS

-2.4%

ASIA-PACIFIC

+7.8%

EUROMED-AFRICA

+6.7%

EURASIA

+9.9%

INTERNATIONAL +4.3%

K units

(PC+LCV)WORLD MARKET SHARE: 3.2% (-0.1pt)


A FURTHER STEP UP FOR INTERNATIONAL BUSINESS

% OF SALES OUTSIDE EUROPE

� 5 OF RENAULT‘S TOP 10 MARKETS ARE NON-EUROPEANS

� INTERNATIONAL MIX: UP 3 POINTS vs H1 2012

33%40%

47%50%

H1' 09 H1' 10 H1' 11 H1' 12 H1' 13

33%

Group M/SH1 2013

Gap vsH1 2012

(pt)

1 France 24.9 +0.2

2 Russia 7.8 +1.1

3 Brazil 6.0 -0.8

4 Germany 5.1 =

5 Argentina 14.1 -0.2

6 Algeria 26.5 -1.7

7 Turkey 17.2 +0.7

8 Italy 7.0 +0.4

9 Spain 10.8 +0.8

10 Belgium+Lux 13.1 +0.5


France 24.9%

+0.2 pts

Europe 9.2%

-0.1 pts

GROUPMARKET SHARE PC+LCV

Best improvement among

European brandsRenault LCV:

16th year leadership

EUROPE REGION

MARKETS FALL AND UNFAVORABLE MIX


GROUP MARKET SHARE BY CHANNEL IN F, D, NL, BE+LUX (H1 2013 vs H1 2012)

H1 2013

H1 2012

% TIV H1 2013 42% 28% 10% 20%

EUROPE REGION

VIRTUOUS SALES CHANNEL POLICY

% GROUP SALES 46% 34% 8% 12%


EURASIA REGION

VOLUME & MARKET SHARE GAINS IN A SLOWING MARKET


Eurasia 7.3%

+0.9 pts

Russia 7.8%

+1.1 pts

Duster: 40,700 units sold

Volumes x2 vs closest

competitor in Russia

Renault: 2nd brand in Russia

Russia: 2nd market for Renault

UNIT SALES (in k units)


EUROMED-AFRICA REGION

NEW PRODUCT LAUNCHES AND NEW FRONTIERS


Euromed-Africa 15.4%

-0.2 pts

Turkey 17.2%Clio IV:

1st car in its segment

in Algeria and Turkey+0.7 pts

Offensive in Africa:

3 new importers signed in H1

Libya, Nigeria, Ghana.



AMERICAS REGION

RECOVERING FROM CURITIBA PLANT CLOSURE


Americas 6.2%

-0.5 pts

Brazil 6.0%

-0.8 pts

Master:

successfully launched in Brazil

1st place in its segment in June

Duster: 2nd place in the

SUV market

in Argentina and Brazil



ASIA-PACIFIC REGION

GROWTH SUPPORTED BY PERFORMANCE IN INDIA


Asia-Pacific 0.7%

Stable

India 2.5%

+2.3 ptsRenault: 1st European

brand in India

Contract signed for a fleet

of 1,400 Latitude as taxis in

Singapore



RISKS & OPPORTUNITIES FOR THE SECOND HALF

� EUROPEAN TIV STILL LOW

� SLOWING EMERGING MARKETS

� FOREX RISK

� ATTRACTIVE PRODUCT RENEWAL

� DISCIPLINED PRICING POLICY

� STRICT FIXED COST CONTROL


434

246

116

211

H1 2010 H1 2011 H1 2012 H1 2013

AUTOMOTIVE OPERATING MARGIN*

+95M€

1.1%

802652

508 583

344483

274

2010 2011 2012 2013

H1 H2

GROUP OPERATING MARGIN*

4 LEVERS TO ENHANCE OPERATING PERFORMANCE

� PRICING IMPROVEMENT

� FIXED COSTS REDUCTION

� MONOZUKURI

� PROFITABLE GROWTH


Source = Renault Pricing Report

2013May

+6.6

2013May

+0.3

2013May

+6.2

2013May

+5.5

2011 perimeter = France + Europe G4, Brazil, Russia , Turkey, Romania, Korea (for RSM)2013 perimeter = 2011 + Belgium, NL, Argentina, Ind ia, Morocco, China

2013May

+1.1

PRICING IMPROVEMENT VS 2011 BASKET: +6.2% (END MAY 2013)

RELATIVE PRICE POSITIONING IMPROVEMENT


FIXED COSTS REDUCTION

� STRICT CONTROL OF FIXED COSTS

� IMPLEMENTATION OF FRENCH

COMPETITIVENESS AGREEMENT

� STABLE R&D AND CAPEX

H1 2011 H1 2012 H1 2013

-€ 20m

H1 2012 FY 2012 H1 2013

NET CAPEX 4.4% 4.3 % 4.3%

NET R&D 3.8% 3.8 % 4.0%

TOTAL 8.2% 8.1 % 8.3%

GROUP FIXED COSTS*

NET CAPEX AND R&D



MONOZUKURI

� H1 2013 MONOZUKURI: €206m

� MANUFACTURING IMPACTED BY

SOME DISRUPTIONS (BRAZIL &

FRANCE)

� R&D: FLAT EXPENSES BUT LOWER

CAPITALIZATION RATE(million euros)


2013 TIV OUTLOOK

* PC+LCV including USA & Canada

EURASIA

EUROMED-AFRICA

ASIA-PACIFIC

AMERICAS

EUROPE

GLOBAL*

TIV +2%

TIV -5%

TIV -4%

TIV +5%

TIV +4%

TIV +3%


OUTLOOK 2013

THE GROUP IS STILL TARGETING*

� UNIT SALES 2013 > 2012

� POSITIVE AUTOMOTIVE OPERATING MARGIN

� POSITIVE AUTOMOTIVE OPERATIONAL FREE CASH FLOW

* provided that there is no further deterioration of the market conditions


Q&A

RENAULT PROPERTYRENAULT GROUP H1 2013 JULY 26, 2013

APPENDIX


H1 2012

PUBLISHED

H1 2012

RESTATED*

Revenues 20,935 20,622

Operating margin +482 +508

in % of revenues +2.3% 2.5%

Other operating income & expenses +37 +37

EBIT +519 +545

Net financial income & expenses -127 -154

Associated companies +630 +619

Current & deferred taxes -236 -236

Net income +786 +774

(million euros)

H1 2013 FINANCIAL RESULTS RESTATED



H1 2012

PUBLISHED

H1 2012

RESTATED*

Group revenues 20,935 20,622

of which: Automotive 19,863 19,553

Sales financing 1,072 1,069

(million euros)

REVENUES BY ACTIVITY RESTATED



OPERATING MARGIN BY ACTIVITY RESTATED

H1 2012

PUBLISHED

H1 2012

RESTATED*

AUTOMOTIVE +87 +116

% Automotive revenues +0.4% +0.6%

SALES FINANCING +395 +392

% Sales Financing revenues +36.8% +36.7%

GROUP OPERATING MARGIN +482 +508

% Group revenues +2.3% 2.5%

(million euros)



ASSOCIATED COMPANIES RESTATED

H1 2012

PUBLISHED

H1 2012

RESTATED*

Nissan +564 +553

AB Volvo +68 +68

AVTOVAZ (1) +4 +4

Others -6 - -6

Total associated companies +630 +619

(1) AVTOVAZ is consolidated with a 3 months time lag

(million euros)


RENAULT GROUP FINANCIAL RESULTS FIRST HALF 2013 · RENAULT GROUP H1 2013 JULY 26, 2013 RENAULT...

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