Renault Sa · EURONEXT:RNO
Renault Sa — Non-Deal Roadshow (April 2023)
43 slides from Renault Sa's roadshow presentation, April 2023
Slide 1: Governance Roadshow
2023 Governance Roadshow March & April, 2023 1
Slide 2: Agenda
Agenda 2022 financial results CEO compensation Capital & voting rights Composition of the Board of Directors 2023 AGM – Agenda Climate Plan 2
Slide 3: 2022 financial results
2022 financial results 3
Slide 4: 2022: a new Renaulution milestone achieved
2022 : a new Renaulution milestone achieved Profitable Cash growth generation €46.4bn Revenue € 2.1bn Free cash flow(1) 5.6% Operating margin + €549m Net financial position (1) Automotive operational free cash flow 4
Slide 5: Climate: 12 years of continuous progress in decarbonization
Climate: 12 years of continuous progress in decarbonization Carbon neutrality -25% commitment Europe RENAULT achieved Worldwide GROUP 2010 2022 2040 2050 In t CO2 eq/vh. @150,000 km, 38.3 Renault, Dacia, Alpine, RKM • E-TECH technology: • 700k EVs sold since 2010 28.5 • 270k hybrid vehicles sold sin
Slide 6: 2023 financial outlook: another year of improvement
2023 financial outlook : another year of improvement Operating margin Free cash flow ≥ 6% ≥€ 2bn Market Europe Eurasia Latam trends 6
Slide 7: Renaulution: a 3-step plan
Renaulution: a 3-step plan 2021 2022 2023 2024 2025 2030 ad . * * * 7 RESURRECTION: Oe Achieved ahead of schedule <4: ‘ Become competitive once again by reducing costs and generating profit. RENOVATION: ~) Already secured Renew and enrich our line-ups, feeding brand's profitability. Q—< a REVOLUTION
Slide 8: Building a Next Gen automotive company
Building a Next Gen automotive company The Future Power Alpine Mobilize Is NEUTRAL PC ICE EV & & hybrid Software LCV Envisaged IPO at the earliest in H2 2023 * A no brainer to reinvent combustion: ICE & hybrid powertrain technologies Deconsolidation from H2 2023 * Subject to market conditions The Fu
Slide 9: 2025-2030 financial outlook: reach new heights
2025-2030 financial outlook: reach new heights Operating margin Free cash flow >€3bn >10% per year on average >8% >€2bn per year on average 2025 2030 2023-2025 2026-2030 • R&D / Capex < 8% of revenue over the period • Mobilize Financial Services dividend >€500m p.a on average(1) ROCE >30% from 2025
Slide 10: Value creation shared with our people: employee shareholding plan
Value creation shared with our people: employee shareholding plan Renaulution Employee Employee Shareplan shareholding(1) shareholding 2030 ambition > 95,000 employees benefitted from 6 free shares & 4.7% 10% > 40,000 employees subscribed to shares vs. 3.8% as of Dec. 31, 2022 at a preferential pric
Slide 11: Value creation shared with our shareholders: reinstating the dividend
Value creation shared with our shareholders : reinstating the dividend DIVIDEND POLICY Progressive ramp-up to 35% payout ratio on Group consolidated net income parent share PRIORITY: 35% RETURN TO Proposed dividend of INVESTMENT €0.25 per share, GRADE payable in cash 2023 Mid-term (based on FY 2022
Slide 12: CEO compensation
2 CEO compensation 12
Slide 13: Agenda
Agenda 02-1 2022 CEO compensation 02-2 2023 CEO compensation policy 02-3 2023 Group employees share ownership plan 13
Slide 14: 2022 CEO compensation: strict application of the policy
02-1 2022 CEO compensation : strict application of the policy Compensation Payment Terms Terms Performance Objectives Achievement Fixe cash ▪ € 1,300,000 Variable 100% cash ▪ Financial performance objectives: 90% of base salary ▪ Maximum annual bonus of 150% of base salary • Group operating margin:
Slide 15: Rationale of 2023 CEO compensation policy 1/2
02-2 rationale of 2023 CEO compensation policy 1/2 The CEO’s compensation is determined on consideration of the responsibilities and missions assumed and attached to his corporate office, as well as the level of his skills, his experience and his track record in this position, while taking into acco
Slide 16: Rationale of 2023 CEO compensation policy 2/2
02-2 rationale of 2023 CEO compensation policy 2/2 2- The Board of Directors also takes into account the current performance and the mid to long-term value creation of the Group thanks to its Renaulution strategic plan : The “Renaulution” strategy launched by the CEO, Luca de Meo, in January 2021 ai
Slide 17: 2023 CEO compensation policy 1/2
02-2 2023 CEO compensation policy 1/2 Element Payment Terms Terms Performance Objectives Fixed Compensation Cash ▪ € 1,300,000 Variable 100% cash ▪ Maximum annual bonus of 150% of base salary ▪ Financial performance objectives: 90% of base salary Compensation • Group operating margin: 22.5% − Financ
Slide 18: 2023 CEO compensation policy 2/2
02-2 2023 CEO compensation policy 2/2 Element Payment Terms Terms Performance Objectives Co-investment Plan ▪ Matching shares Subscription plan: ▪ Financial performance objectives: 60% : subject to 3-yr and 3 • Optional plan allowing to invest into Renault shares with a 5-yr lock-up period. • Group
Slide 19: Details of 2023 VC criteria
02-2 Details of 2023 VC criteria Strategy & Financial % 2023 Vesting scale sustainability % 2023 Vesting scale criteria criteria 0%* if COP ≤ threshold bound • Health and safety (FR2 : frequency rate of work-related Group op. 18%* if COP = upper bound accidents with lost days) : 1.7% (pro-forma targ
Slide 20: Details of 2023 LTI criteria
02-2 Details of 2023 LTI criteria Criteria % 2023 Vesting scale 2023, 2024, 2025 0%* if ≤ threshold bound 17,5%* if = upper bound Automotive net financial position 25% 25%* if ≥ maximum bound * Linear in between 0%* if ≤ threshold bound 17,5%* if = upper bound Increase in the net revenue per vehicle
Slide 21: Details of 2023 co-investment criteria
02-2 Details of 2023 co-investment criteria Performance criteria % Vesting scale 0%* if ≤ threshold bound Group operating margin 14%* if = upper bound 20% COP (%) 20%* if ≥ maximum bound * Linear in between 0%* if ≤ threshold bound Return on capital employed 14%* if = upper bound 20% ROCE (%) 20%* i
Slide 22: Group employees share ownership plan
02-3 Group employees share ownership plan Tool for employees’ motivation Success of first Employee shareplan: 4.7% of employee shareholders in February 2023 Ambition : 10 % of employee shareholding by 2030 to respond to the recommendation of the PACTE law 1- FREE SHARES for eligible employees Same p
Slide 23: Capital & voting rights
Capital & voting rights 23
Slide 24: Capital & voting rights of Renault Group as of December 31, 2022
Capital & voting rights of Renault Group as of December 31, 2022 Breakdown of capital Breakdown of voting rights 64.40% 15.01% 64.54% 6.52% Public French State Public Employees 15.00% Nissan 3.79% * 28.94%** French State Employees 1.80% Treasury stock **In accordance with the Governance Agreement en
Slide 25: Renault-Nissan: new foundations
Renault-Nissan: new foundations High-value-creation Balanced operational projects Ampere governance & cross-shareholding Key projects in Latin America, India, Nissan to invest as a strategic shareholder 15% cross-shareholding and Europe with 15% voting rights Mitsubishi Motors 28.4% of Nissan shares
Slide 26: Composition of the Board of Directors
4 Composition of the Board of Directors 26
Slide 27: Current composition of the Board of Directors
Current composition of the Board of Directors 2 Directors appointed by the AGM upon proposal of Nissan Jean-Dominique Senard Chairman of the Board • • 3 Directors representing employees • Yu Serizawa Joji Tagawa 16 Directors 7 Independent Directors appointed by the AGM Frédéric Richard Eric Barrat G
Slide 28: Current composition of the Committees of the Board of Directors
Current composition of the Committees of the Board of Directors Governance and Compensation Committee Audit and Risks Committee Strategy and CSR Committee 66,7%(*) 60%(*) 60%(*) Independence Bernard Delpit Independence Annette Winkler Independence Pierre Fleuriot Marie-Annick Darmaillac Frédéric Bar
Slide 29: Activities of the Board in 2022
Activities of the Board in 2022 Meetings of the Board and its Committees In 2021 In 2022 9 meetings of the Board 12 meetings of the Board 19 meetings of the Committees 17 meetings of the Committees 29
Slide 30: Overview of directors' terms of office
Overview of directors’ terms of office Year of Date of first Director Method of appointment expiry appointment Jean-Dominique Senard Elected by the Annual General Meeting January 2019 2023 AGM Annette Winkler Elected by the Annual General Meeting June 2019 Frédéric Barrat Elected by employees Novemb
Slide 31: 2023 AGM – Agenda
5 2023 AGM – Agenda 31
Slide 32: 17 resolutions to be submitted to 2023 shareholders general meeting
17 RESOLUTIONS TO BE SUBMITTED TO 2023 SHAREHOLDERS GENERAL MEETING MAY 11, 2023 4 resolutions relating to the accounts and dividend : 1. Approval of annual financial statements for the financial year ended December 31, 2022 2. Approval of consolidated financial statements for the financial year end
Slide 33: Resolutions on compensation and share buyback
6 resolutions relating to the compensation of the Chairman, CEO and directors (Say-on-Pay ex post and ex ante) : 9. Approval of the report on the 2022 compensation for all corporate officers (Chairman, CEO and directors) 10. Approval of the Chairman’s 2022 compensation (Mr. Jean-Dominique Senard) 11
Slide 34: Renault Group Climate strategy
6 Renault Group Climate strategy 34 34
Slide 35: A dedicated governance for ESG
A dedicated governance for ESG 35 35
Slide 36: Our ESG strategy ensures Renaulution's sustainable deployment
Our ESG strategy ensures Renaulution’s sustainable deployment CORPORATE “Our spirit of innovation takes mobility further to bring people closer “ PURPOSE CORPORATE STRATEGY Green company Tech company New businesses ESG VISION GREEN AS A BUSINESS CARING CARS CARING COMPANY ESG “Carmakers, care makers
Slide 37: Climate: 12 years of continuous progress in decarbonization
Climate: 12 years of continuous progress in decarbonization -25% commitment Carbon achieved neutrality 2010 2022 • E-TECH technology: • 700k EVs sold since 2010 In t CO2 eq/vh. @150,000 km, 38.3 • 270k hybrid vehicles sold since 2019 Renault, Dacia, • -40% CO2 “industry” emissions (scopes 1&2) since
Slide 38: Towards 100% electric
Success of E-TECH technology Towards 100% electric Renault Brand European PC in 2030 SALES * European mix 39% 30% EV 17% EV EV 4.5% Hybrid Hybrid EV Hybrid 2019 2020 2021 2022 * Passenger cars 38
Slide 39: Leading the organization towards carbon neutrality
Leading the organization towards carbon neutrality CO2 emissions in tCO2 / vehicle (cradle-to-grave emissions) 1 RENAULT GROUP RENAULT GROUP EUROPE WORLDWIDE Up to Up to Up to CO2-NEUTRAL CO2-NEUTRAL -30% 2 -80% -35% 2040 2050 -35% -100% -65% on battery in Europe in Europe PRODUCTS PRODUCTS 2019 SUP
Slide 40: Circular economy solutions throughout the car's lifecycle
Circular economy solutions throughout the car’s lifecycle VALUE CHAIN COVERAGE TODAY ~ 50% 2030 > 90% SUPPLY PRODUCTION USAGE END-OF-LIFE CLOSED LOOP PRODUCTION PARTS VEHICLE LIFE VEHICLE BATTERY BATTERY MATERIALS SCRAP REMANUFAC- EXTENSION RECYCLING 2ND LIFE RECYCLING SOURCING RECYCLING TURING STEE
Slide 41: The Future Is NEUTRAL
The Future Is NEUTRAL The 1st 360° automotive circular economy entreprise that creates high value BATTERY RECYCLING PIONNEER GLOBAL LEADER RECOGNIZED FUTURE LEADER IN AUTOMOTIVE IN METAL PROCESS GLOBAL LEADER IN BATTERY CLOSED LOOPS SCRAP RECYCLING OF VEHICLE CLOSED LOOPS DISMANTLING 41 41 The Futur
Slide 42: Focused businesses with embedded ESG targets
Focused businesses with embedded ESG targets Creating sustainable value chains Preparing for a carbon-neutral future Ensuring inclusiveness within the Group Caring Caring Caring for the climate for the resources for the people The Future Power Ampere Alpine Mobilize Is NEUTRAL • Affordable • 100% EV
Slide 43: ReKnow University: support the transition
ReKnow University: support the transition Academics 3 academies for future automotive skills • Electric mobility • Circular economy • Software, cybersecurity & data Industrials Partners • 15,000 upskilled & reskilled employees • 4,500 external > 10,000 people (students & external companies) trained