RENAULT GROUP H1 2016 FINANCIAL RESULTS CONFERENCE · 2016-07-28 · 14 INVESTOR RELATIONS RENAULT...

RENAULT GROUP

H1 2016 FINANCIAL RESULTS CONFERENCE

2

INVESTOR RELATIONS

RENAULT H1 2016 PRESENTATION JULY 28TH 2016 PROPERTY OF GROUPE RENAULT

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.

DISCLAIMER

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INVESTOR RELATIONS


AGENDA

01 H1 2016 COMMERCIAL UPDATE

02 H1 2016 FINANCIAL RESULTS & OUTLOOK

03 QUESTIONS & ANSWERS

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HIGHLIGHTS

GROWTH ACCELERATION

OPERATING MARGIN IMPROVEMENT

STRONG HEADWIND FROM FOREX

FY GUIDANCE CONFIRMED

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INVESTOR RELATIONS


H1 2016 COMMERCIAL UPDATE

01

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INVESTOR RELATIONS


1,382

849

151 159 16359

1,568

969

209 166 15867

RENAULT GROUP UNIT REGISTRATIONS H1 2016 VS H1 2015

GLOBAL

+13.4%

EUROPE

+14.0%

AMERICAS

-3.0%

ASIA-PACIFIC

+12.8%

AFRICA-ME-INDIA

+38.2%

EURASIA

+4.0%

K units

(PC+LCV)

+2.4% TIV +9.4% -9.0% -6.0% -8.0% +3.9%

GROUP

INTERNATIONAL +12.5%

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INVESTOR RELATIONS


FRANCE01

ITALY02

03

INDIA

SPAIN04

BELGIUM+LUX

05

06

07

08

09

UK

27.4 %

5.2 %

9.7 %

12.3 %

GERMANY

3.8 %

4.5 %

RUSSIA 7.7 %

13.5 %

BRAZIL 7.3 %

Market share

(PC+LCV)

+0.5 pts

+2.4 pts

+0.4 pts

+0.4 pts

vs.

H1 2015

TURKEY 18.1 %

-0.7 pts

+0.3 pts

+0.3 pts36% 42%48%

55% 52%48%

H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016

33% 40% 50% 43% 39%47%

+0.6 pts

+2.3 pts

-0.0 pts

38%

INTERNATIONALEUROPE

67% 60% 50% 57% 61%53% 62%

REGIONAL SALES BREAKDOWN

EUROPE KEEPS PUSHING SALES MOMENTUM

10

TOP 10 MARKETS BY VOLUME

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juin-07 juin-08 juin-09 juin-10 juin-11 juin-12 juin-13 juin-14 juin-15 juin-16

EUROPE REGIONGROUP PC+LCV : BREAKDOWN OF REGISTRATIONS

+32

TIV

& MARKET MIX

PERFORMANCE+88

GROUP ORDER BOOK PC + LCV

H1’15

H1’16

969

K units

(PC+LCV)

GROUP MARKET SHARE PC+LCV

Europe 10.7%

+0.4 pts

France 27.4%

+0.5 pts

849

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AFRICA-MIDDLE EAST-INDIA REGION


Africa-ME-India 5.4%

+1.7 pts

India 3.8%

+2.3 pts

+78

-20

H1’15

H1’16

PERFORMANCETIV

& MARKET MIX

RENAULT KWID

K units

(PC+LCV)

151

209

GROUP PC+LCV : BREAKDOWN OF REGISTRATIONS

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INVESTOR RELATIONS


EURASIA REGION

RENAULT KADJAR

-4 +3


Eurasia 12.9%

+1.6 pts

Turkey 18.1%

+2.4 pts

PERFORMANCETIV

& MARKET MIX

+13-6

H1’15 H1’16

K units

(PC+LCV)

159 166


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INVESTOR RELATIONS


AMERICAS REGION


Americas 6.2%

+0.3 pts

Brazil 7.3%

+0.3 pts

RENAULT OROCH

-17+17

PERFORMANCETIV

& MARKET MIX

-22H1’15 H1’16

K units

(PC+LCV)

163 158


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ASIA-PACIFIC REGION


Asia-Pacific 0.4%

South Korea 5.1%

+0.7 pts

+0.0 pts

RENAULT SAMSUNG SM6

5967

-5+5

TIV

& MARKET MIXPERFORMANCE

+3

H1’15H1’16

* Restatement on 2015 & 2016 Chinese sales: reported on retail sales basis versus wholesales previously

K units

(PC+LCV)

=


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H1 2016 FINANCIAL RESULTS & OUTLOOK

02

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H1 2016 FINANCIAL RESULTS

H1 2016 H1 2015* CHANGE

Revenues 25,185 22,197 +13.5%

Operating profit 1,541 1,096 +445

in % of revenues +6.1% +4.9% +1.2 pts

Other operating income & expenses -65 -116 +51

EBIT 1,476 980 +496

Net financial income & expenses -67 -161 +94

Associated companies 678 895 -217

Current & deferred taxes -520 -262 -258

Net income 1,567 1,452 +115

(million euros)

* 2015 restated: IAS12 & AVTOVAZ

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H1 2016 H1 2015 CHANGE

Global unit sales (units) * 1,567,974 1,382,122 +13.4%

Group revenues 25,185 22,197 +13.5%

of which: Automotive 24,078 21,065 +14.3%

Sales financing 1,107 1,132 -2.2%

H1 2016 GROUP REVENUES

(million euros)

*Since January 1, 2016, volumes for China are reported based on retail sales versus

wholesales previously. Volumes for H1 2015 have been restated.

Q1 Q2

+11.7% +14.7%

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INVESTOR RELATIONS


AUTOMOTIVE REVENUES VARIANCE ANALYSIS

Currency

Volume

Geographic

mix

Sales to

partners

Others

+14.3%

+10.6 pts +0.9 pts +0.9 pts +3.8 pts -4.9 pts +0.0 pts

Price

+3.0 pts

CHANGE H1 2016 vs H1 2015: +€3,013m

H1 2015 H1 2016

(million euros)

Product

mix

21,065

24,078

+2,236

+628+799

+185+200

+1

-1,036

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1,096

1,541

+6-64

+164

+135

+614

+22-432

GROUP OPERATING PROFIT VARIANCE ANALYSIS

CurrencyVolume &

partners

Mix / Net Enrichment

G&A

RCI Banque

& other

activities

COST

-€58m

H1 2015* H1 2016

CHANGE H1 2016 vs H1 2015: + €445m

Monozukuri

Raw materials

GROWTH

+€636m

(million euros)

* 2015 restated IAS12

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COST ANALYSIS

CHANGE H1 2016 vs H1 2015: -€58m

+296

-21

-153

-116

-64

G&AManufacturing &

Logistics

R&DWarrantyPurchasing

Monozukuri

(million euros)

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INVESTOR RELATIONS


1,096

1,541

+6-64

+164

+135

+614

+22-432

GROUP OPERATING PROFIT VARIANCE ANALYSIS

CurrencyVolume &

partners

Mix / Net Enrichment

G&A

RCI Banque

& other

activities

COST

-€58m

H1 2015* H1 2016

CHANGE H1 2016 vs H1 2015: + €445m

Monozukuri

Raw materials

GROWTH

+€636m

(million euros)

* 2015 restated IAS12

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INVESTOR RELATIONS


OPERATING PROFIT BY ACTIVITY

H1 2016 H1 2015* CHANGE

AUTOMOTIVE 1,121 680 +441

% Automotive revenues +4.7% +3.2% +1.5pts

SALES FINANCING 420 416 +4

GROUP OPERATING PROFIT 1,541 1,096 +445

% Group revenues +6.1% +4.9% +1.2pts

(million euros)

* 2015 restated: IAS12

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RCI BANQUE

( in percentage of average performing assets)

H1 2016 H1 2015

New financings (€bn) 8.9 7.7

Average performing assets (€bn) 31.9 27.9

Net banking income 4.39% 4.87%

Cost of risk (customer & dealer) -0.30% -0.31%

Operating expenses* -1.41% -1.50%

Pretax income* 2.71% 3.07%

Operating profit (€m)* 420 416

* 2015 restated: IAS12

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OTHER OPERATING INCOME & EXPENSES

H1 2016 H1 2015

Net restructuring costs

(incl. competitiveness agreement in France)-68 -106

Impairment of assets / reversal -2 -11

Profit / loss on asset sales -8 6

Others 13 -5

Total other operating income & expenses -65 -116

(million euros)

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H1 2016 H1 2015* CHANGE

Revenues 25,185 22,197 +13.5%




EBIT 1,476 980 +496




Net income 1,567 1,452 +115

(million euros)


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INVESTOR RELATIONS


ASSOCIATED COMPANIES

H1 2016 H1 2015 CHANGE

NISSAN 749 979 -230

AVTOVAZ (1) -75 -87 +12

Others 4 3 +1

Total associated companies 678 895 -217

(1) In December 2015, the 3-month time lag has been removed, therefore AVTOVAZ contribution for H1 2015 was restated to consider net income from January 1, 2015 until June, 30 2015.

(million euros)

Q1 Q2

228 521

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INVESTOR RELATIONS



H1 2016 H1 2015* CHANGE

Revenues 25,185 22,197 +13.5%




EBIT 1,476 980 +496




Net income 1,567 1,452 +115

(million euros)


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INVESTOR RELATIONS


2,179

381 -605

-129

-129

+390-768

+473

AUTOMOTIVE NET FINANCIAL POSITION

Operational free

cash flow

Cash flow

Changein WCR

Dividendspaid

Net tangible& intangible

investments

-1,669

Net change

Dividends received

fromlisted co.

Capitalized

R&D

-460Financial

investments & others

Net capex

-931

DEC 31, 2015 : €2,661m

JUNE 30, 2016 : €2,532m

(million euros)

LeasedVehicles -278

Share Buy-back

Nissan

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INVESTOR RELATIONS


NEW VEHICLE DISTRIBUTION STOCK *

507505

468

526 527 520481

593 571

158

253

106

264

178

260

141

298

200

349

252

362

262

349

260

340

295

371

JUN'14 SEP'14 DEC'14 MAR'15 JUN'15 SEP'15 DEC'15 MAR'16 JUN'16

GROUP

INDEPENDENTDEALERS

TOTAL

Number of days of sales

(previous period)

5564 75 6658 7775 78

(IN K UNITS)

60

* Proforma 2014 & 2015

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INVESTOR RELATIONS


H2 2016 RISKS & OPPORTUNITIES

BREXIT

R&D COSTS

SUPPLY

NEW PRODUCTS IN EUROPE

NEW SEGMENT COVERAGE IN EM

LOWER LAUNCH COSTS

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INVESTOR RELATIONS


OUTLOOK 2016

In 2016, the global market is expected to record growth around 1,7%

compared to 2015. The European market, as well as the French one, are now

expected to increase by at least 5%.

Outside Europe, the Brazilian and Russian markets are expected to decline :

-15% to -20% for Brazil and -12% for Russia. On the contrary, China (+4% to

+5%) and India (+7% to +9%) should pursue their positive momentum.

THE GROUP* CONFIRMS ITS FY 2016 GUIDANCE :

Increase group revenues (at constant exchange rates)

Improve group operating margin

Generate a positive Automotive operational free cash flow

* at constant scope of consolidation

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QUESTIONS & ANSWERS

03

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APPENDIX

04

32

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CHANGE IN WORKING CAPITAL REQUIREMENT

JUNE 30, 2016 vs. DEC. 31, 2015

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INVESTOR RELATIONS


LIQUIDITY RESERVES

Cash €11.6bn

Available credit lines €3.3bn

TOTAL €14.9bn

LIQUIDITY RESERVES

Cash €10.6bn

Available credit lines €3.3bn

TOTAL €13.9bn

AUTOMOTIVE DIVISION LIQUIDITY

DECEMBER 2015 JUNE 2016

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INVESTOR RELATIONS


RCI BANQUE *

LIQUIDITY RESERVES

Cash = €0.2bn

HQLA = €2.2bn

ECB eligible = €2.4bn

Available credit lines = €4.1bn

TOTAL = €8.9bn

LIQUIDITY RESERVES

Cash = €0.3bn

HQLA = €1.1bn

ECB eligible = €2.6bn

Available credit lines = €4.1bn

TOTAL = €8.1bn

DECEMBER 2015 JUNE 2016

*Central funding perimeter

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INVESTOR RELATIONS


June 2016 Dec. 2015

DEPOSITS 11.8 10.2

o/w GERMANY 7.6 7.0

o/w FRANCE 1.4 1.3

o/w UNITED KINGDOM 2.2 1.3

o/w AUSTRIA 0.6 0.6

RCI BANQUE RETAIL DEPOSIT ACTIVITY

(billion euros)

RENAULT GROUP H1 2016 FINANCIAL RESULTS CONFERENCE · 2016-07-28 · 14 INVESTOR RELATIONS RENAULT...

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Transcript of RENAULT GROUP H1 2016 FINANCIAL RESULTS CONFERENCE · 2016-07-28 · 14 INVESTOR RELATIONS RENAULT...