Renault Sa · EURONEXT:RNO
Renault Sa — Société Générale ESG Conference 2020
54 slides from Renault Sa's conference presentation, Sep 9, 2020
Slide 1: Société Générale ESG Conference
Société Générale INVESTOR RELATIONS / SEPTEMBER 9, 2020 ESG Conference SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 1
Slide 2: Disclaimer
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 i
Slide 3: Agenda
AGENDA ▪ GOVERNANCE / BOARD ▪ ENVIRONMENTAL STRATEGY ▪ CIRCULAR ECONOMY ▪ RESPONSIBLE PURCHASING ▪ GROUP OVERVIEW ▪ APPENDIX SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 3
Slide 4: Key Take-Aways
KEY TAKE-AWAYS CSR AT THE CORE OF GROUP’S STRATEGY: ✓ DYNAMIC AND EFFICIENT GOVERNANCE ✓ STRONG BOARD OVERSIGHT ON ESG ISSUES ✓ STRONG CLIMATE COMMITMENT ✓ LEADER IN ELECTRIC VEHICLE ✓ FRONT RUNNER IN CIRCULAR ECONOMY SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 4
Slide 5: Governance Board
GOVERNANCE BOARD SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 5
Slide 6: Renault's Governance - Evolution
RENAULT’S GOVERNANCE - EVOLUTION 2019 2020 January 24th, 2019 October 11th, 2019 January 28th , 2020 July 1st, 2020 Chairman Carlos Jean-Dominique Senard Ghosn CEO Thierry Bolloré Clotilde Delbos (interim) Luca de Meo Interim Period Deputy CEO Clotilde Delbos Selection process led by the Governance
Slide 7: A Reinforced Governance
A REINFORCED GOVERNANCE • Separation of Chairman of the Board and CEO roles • Lead Independent Director role maintained • Board size reduction • Creation of an Ethics and CSR Board Committee SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 7
Slide 8: Balanced Board Composition
BALANCED BOARD COMPOSITION As of November 2020 SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 8
Slide 9: Activities of the Board and its Committees
ACTIVITIES OF ACTIVITIES OF THE THE BOARD BOARD AND AND ITS OF COMMITTEES ITS COMMITTEES IN 2019 Intense activity of the Board and of its Committees In 2019 In 2020 meetings 14 of the Board (vs 7 in 2018) 12 meetings of the Board 19 meetings 28 of the Committees (vs 22 in 2018) meetings of the Commi
Slide 10: New CEO = New Paradigm at Renault
NEW CEO = NEW PARADIGM AT RENAULT Luca de Meo’s priorities : • New paradigm : “value over volumes" • New organization around the brands in 4 autonomous business units: Renault, Dacia, Alpine and New Mobility • New Strategic Plan to be announced by January 2021 • 2o22 Cost Reduction Plan is the first
Slide 11: Covid-19 Company's Response (H1 2020)
COVID-19 COMPANY’S RESPONSE (H1 2020) ✓ Reactive management decision ✓ Closed monitoring of the situation by the Board (meetings fortnightly ✓ Keeping the safety and well-being of employees from March to May) as top priority ✓ All Board members equipped since 2019 with a secured I-Pad and a dedicate
Slide 12: Environmental Strategy
ENVIRONMENTAL STRATEGY SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 12
Slide 13: Environmental Strategy: Interacting with a Large and Evolving Ecosystem
ENVIRONMENTAL STRATEGY EFFICIENCY REQUIRES TO INTERACT WITH A LARGE AND EVOLVING ECOSYSTEM STRATEGIC ENVIRONMENT MUTATION (NEW COMPETITORS, NEW PARTNERS) MOBILITY NEW OPERATORS CITIES TECH PLAYERS & PUBLIC (AI, DIGITAL…) AUTHORITIES NGOs INFRASTRUCTURE DEVELOPERS AFTER SALES CITY & EOL PLAYERS PLANN
Slide 14: Environmental Stakes and Strategic Leadership Ambitions
THE 3 ENVIRONMENTAL STAKES ADRESSED THROUGH 3 STRATEGIC LEADERSHIP AMBITIONS FOR COMPETITIVENESS & SUSTAINABILITY Climate 3 environmental stakes challenge automobile industry & reshape the market 3 strategic leadership ambitions able to enhance innovation and transformation Circular EV Economy E-TEC
Slide 15: Climate Measurement Scopes
CLIMATE MEASUREMENT SCOPES CARBON FOOTPRINT ( in tons of CO eq/ veh sold) 2 2019 CARBON FOOTPRINT Materials & + + + Materials & others ~ <1% Car/PWT 10 years End of Life Supply chain Supply chain assembly maintenance recycling ~13% Incl. Battery Car / PWT assembly ~ <2% + 31 t CO2e WELL TO WHEEL ( i
Slide 16: Carbon Footprint: One KPI for Overall Global Progress
CARBON FOOTPRINT* : ONE KPI FOR OVERALL GLOBAL PROGRESS CARBON FOOTPRINT -25% (2022/2010 PER VEH SOLD) IN LINE WITH COP21 2d egrees OBJECTIVE 2010 -17.4% 2019 2010 -25% 2022 (*) Scope: passenger cars and light commercial vehicles registered under the Renault, Dacia, Alpine and Renault Samsung Motors
Slide 17: Climate Commitments and Ambitions
CLIMATE COMMITMENTS AND AMBITIONS supports the Commitments Worldwide Carbon Footprint* : -25% in 2022 vs 2010 Worldwide Well to Wheel* : -41% in 2030 vs 2010 validated by New : Europe Well to Wheel: -50% in 2030 vs 2010 Ambition New : Europe Carbon Footprint: Net Zero in 2050 * Scope: All passenger
Slide 18: Contribution to COP21 Target on Track
CONTRIBUTION TO COP21 TARGET ON TRACK Automotive sector Well to wheel Worldwide passenger cars and light commercial vehicles vehicle sold contribution g CO2e /km 300 / COP 21’ objectives -24% 250 200 ~-90% 2050 vs 150 2005 -25% 2022 100 -41% 2030 approved CDP- 50 Act initiative approved by SBT 0 201
Slide 19: Renault: 10 Years of EV Expertise
RENAULT : 10 YEARS OF EV EXPERTISE TECHNICAL EXCELLENCE EMPLOYEE EXCELLENCE 30,000 people trained Line-up, e-Motor, & passionate manufacturing 325k 279k 213k 2 1 3 Europe* BATTERY MANAGEMENT DEALER PREPARATION R&D, supply, pack, leasing, 100% network certified repair, 2nd life and recycling *Total E
Slide 20: EV Contribution to Climate Stakes Is Key
EV CONTRIBUTION TO CLIMATE STAKES IS KEY In Europe, EV emits at least ~-30% compared to ICE and up to ~-75% in countries with low carbon electricity Source : Transport & Environnement, April 2020 Report SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 20 2
Slide 21: Continuous Growth of EV Sales in Europe
CONTINUOUS GROWTH OF EV SALES IN EUROPE 427,4K 382,7K 218,4K BEV = 4,4% 149,7K 178,2K TIV PC+LCV 98,0K 103,6K IN EUROPE 66,1K YTD 2020 40,7K 25,4K 14,0K 2,9K 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD +57,5% Vs YTD-1 (Sept) SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 21
Slide 22: Renault, Leading the European EV Market
RENAULT, LEADING THE EUROPEAN EV MARKET Europe EV ranking YTD September 2020 YTD SEPTEMBER 20 #4 33 667 #5 26 993 71 138 Renault 65 452 16,6% #6 26 630 Tesla 47 626 15,3% Volkswagen 2 1 11,1% 3 BRANDS 64 621 6 329 Renault Zoe Renault Kangoo ZE 58 156 15,1% 5 174 30,1% Tesla Model 3 26 227 Nissan Nv2
Slide 23: Current EV Line-up in Europe
CURRENT EV LINE-UP IN EUROPE SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 23 2
Slide 24: Twingo Electric
The new comer: Twingo electric 190 km WLTP 270 km WLTP City Fun in the City SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 24
Slide 25: Dacia Spring
Coming very soon: Dacia Spring 225 km WLTP 295 km WLTP City THE affordable daily EV SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 25 2
Slide 26: MEGANE eVision Concept
MEGANEeVision Concept 450 km WLTP No more reason… …Not to fall in love with EV SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 26
Slide 27: Common EV Platform - Alliance Benefits
COMMON EV PLATFORM - ALLIANCE BENEFITS NEW ALLIANCE PLATFORM, DEDICATED TO EV • -40% R&D Entry Ticket • -30% Manufacturing cost NEW ALLIANCE E-MOTOR GENERATION • -20% cost vs current • 100% shared e-components NEW BATTERY PACKS, FOR THE ALLIANCE NEEDS • - 30% in $/kWh at pack level (2016-22) 27 SOCI
Slide 28: Levers: Electrification of Our Range - E-TECH
LEVERS: ELECTRIFICATION OF OUR RANGE E-TECH new CLIO new CAPTUR MEGANE E-TECH E-TECH plug-in E-TECH plug-in SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 28
Slide 29: Levers: Electrification of Our Range
LEVERS: ELECTRIFICATION OF OUR RANGE New vehicle New version 2019 2020 2021-2022 100% electric 1st CMF-EV BEV New ZOE TWINGO Z.E. Dacia Spring Renault E-TECH PHEV New CAPTUR MEGANE E-TECH plug-in E-TECH plug-in HEV New CLIO E-TECH SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 29
Slide 30: Electric Carsharing: A Growing Market in Europe
ELECTRIC CARSHARING: A GROWING MARKET IN EUROPE 2019 2020 2021 2025 ~11,000 EV ~20,000 EV ~40,000 EV ~120,000 EV in operation in operation in operation in operation x10 Increasing regulations on air quality & congestion RENAULT LEADER OF EV CARSHARING IN EUROPE With +7,000 ZOE With ~9,500 ZOE* * YTD
Slide 31: Circular Economy
CIRCULAR ECONOMY SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/112020 31
Slide 32: From a Linear Towards a Circular Business Model
FROM A LINEAR TOWARDS A CIRCULAR BUSINESS MODEL Raw materials PRODUCTION 4 USE PHASE Intensify 2 usage 1 CIRCULAR ECONOMY Reuse / Re- END-OF-LIFE Recycle manufacture 3 materials parts REPAIR & 2ND LIFE (EV BATTERY) Extend life Waste SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/112020 32
Slide 33: Renault Pioneer with a Unique Circular Economy Ecosystem
RENAULT PIONEER WITH A UNIQUE CIRCULAR ECONOMY ECOSYSTEM STANDARD EXCHANGE 50% 50% Mechanical parts remanufacturing Parts Remanufacturing • End-of-Life vehicle dismantling OLD PARTS • Second life parts 2ND LIFE Reused parts REMAN. PARTS PARTS Supply chain Production Maintenance End of life vehicle 3
Slide 34: Renault Circular Businesses & Strategy Towards Resource-Efficient Mobility
RENAULT CIRCULAR BUSINESSES & STRATEGY TOWARDS RESOURCE-EFFICIENT MOBILITY + INTERNATIONAL CHOISY RESOURCE EFFICIENCY AND ADDED VALUE EXPANSION RECYCLED MATERIAL RECYCLE MATERIALS IN REUSE PARTS EXTEND PRODUCT LIFE INTENSIFY PRODUCT USE USE IN NEW CARS CLOSED LOOPS Wiring (Copper) E-Motor (Copper) +
Slide 35: Flins Plant Reconversion Project
FLINS PLANT RECONVERSION PROJECT « We are working on converting our historical plant in Flins into the first regenerative factory in Europe » Luca de MEO, Groupe Renault CEO (#RENAULTeWays digital event) An « Energy cluster » around the management of EV battery life cycle ▪ At this stage 3 new clust
Slide 36: Generate Value Through Battery Life Cycle Optimization
GENERATE VALUE THROUGH BATTERY LIFE CYCLE OPTIMIZATION 100% FIRST LIFE Zero emission mobility + Energy Storage Services Vehicule to Grid (V2G) <40% RECYCLING 70% SECOND LIFE EU Regulatory Current status: Stationary storage framework: 60 % of the mass of • All batteries must be battery materials are
Slide 37: Current Second Life Battery Applications/Projects and Partners
CURRENT SECOND LIFE BATTERY APPLICATIONS/PROJECTS AND PARTNERS Stationary Usage Marine & Mobile Usage MAIN MAIN DOMAIN ILLUSTRATION PARTNERSHIP / DOMAIN ILLUSTRATION PARTNERSHIP / CUSTOMERS CUSTOMERS Large system Mobile Usage (>24 packs) Retrofit high value Local grid, vehicle Frequency services, •
Slide 38: CO2 Footprint Optimization Through Battery Life Cycle Management
CO2 FOOTPRINT OPTIMIZATION THROUGH BATTERY LIFE CYCLE MANAGEMENT ILLUSTRATIVE GRAPHICS ONLY (NOT ACTUAL FIGURES) Battery production First life CO2 footprint Without renewable energy 100% Smart charging & V2G services renewable energy CO2 footprint Net CO2 footprint Smart charging & V2G Net CO2 footp
Slide 39: EV TCO Optimization Through Battery Life Cycle Management
EV TCO* OPTIMIZATION THROUGH BATTERY LIFE CYCLE MANAGEMENT TCO : Total Cost of Ownership ILLUSTRATIVE GRAPHICS ONLY (NOT ACTUAL FIGURES) Battery purchase First life Costs & Revenues 100% Smart charging & V2G services Battery purchasing cost Costs & Revenues V2G revenues Net battery cost Second life
Slide 40: Responsible Purchasing
RESPONSIBLE PURCHASING SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/112020 40
Slide 41: Groupe Renault's Purchasing Policies
GROUPE RENAULT’S PURCHASING POLICIES A dedicated web page for the sustainable purchasing @ Renault Groupe Renault Sustainable purchasing web page With a public access to the Group’s purchasing policies Renault-Nissan Guidelines Groupe Renault global Groupe Renault Green Groupe Renault Cobalt for sup
Slide 42: Our CSR Purchasing Action Plan
OUR CSR PURCHASING ACTION PLAN ❑ PRODUCTION OF RISK MAPPING BASED ON CSR CRITERIA: • of suppliers → external firms audit on high-risk supplier sites is then implemented. • of materials ❑ SUPPLIER CSR ASSESSMENT ON: 80% of yearly purchase • working conditions and basic social rights, demands covered
Slide 43: Cobalt Procurement
COBALT PROCUREMENT ❑ SPECIFIC COBALT PROCUREMENT POLICY ❑ DISCLOSURE OF THE GROUP'S COBALT SUPPLY CHAIN ❑ ON-SITE AUDITS BY SPECIALIZED AUDIT FIRM • 17 audits conducted at each level of the supply chain • No critical non-conformities • tracking of corrective action plans is underway. ❑ INVOLVEMENT I
Slide 44: Groupe Renault Overview
GROUPE RENAULT OVERVIEW SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/112020 44
Slide 45: One Group, Five Brands
ONE GROUP, FIVE BRANDS MORE THAN 3,8 MILLIONS OF VEHICLES SOLD IN 2019 RENAULT DACIA RSM(1) The Group’s global brand The Group’s regional brand The Group’s local brand (1) Renault Samsug Motors ALPINE LADA The Group’s sport brand Leader brand of the Russian market SOCIETE GENERALE CONFERENCE - ESG P
Slide 46: Groupe Renault Key Figures: Financial Results
GROUPE RENAULT KEY FIGURES FINANCIAL RESULTS (1)Automotive operational Free cash flow: cashflow safter interest and tax (excluding dividends received from publicly listed companies) minustangibleandintangibleinvestmentsnetofdisposals+/-change in the working capital requirement. (2) 2019figuresinclud
Slide 47: Groupe Renault Key Figures: Share Capital
GROUPE RENAULT KEY FIGURES SHARE CAPITAL SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 47
Slide 48: Groupe Renault Key Figures: Workforce
GROUPE RENAULT KEY FIGURES WORKFORCE SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 48
Slide 49: Social Indicators 2019 Data
SOCIAL INDICATORS 2019 DATA Ensuring employee’s professional development, employability and engagement → Create the conditions for employees to succeed in their role & to grow within the Group Training access rate: 75,5 % [ 82,6 % excluding AVTOVAZ ] / 4 929 869 total numbers of training hours → Pro
Slide 50: Groupe Renault Key Figures: Sales
GROUPE RENAULT KEY FIGURES SALES 1,362,268 Europe 473 1,362,741 Eurasia 1,272,429 Americas 409,164 489 3,818,411 409,653 Vehicles produced worldwide 618,941 Groupe Renault plants in 2019 AMIP 100,546 Partners plants 719,487 Groupe Renault plants and partners plants China 54,101 SOCIETE GENERALE CONF
Slide 51: Appendix
APPENDIX SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/112020 51
Slide 52: Composition of the Specialised Committees
COMPOSITION OF THE SPECIALISED COMMITTEES As of November 2020 SOCIETE GENERALE CONFERENCE - ESG PRESENTATION 17/11/2020 52
Slide 53: CEO Remuneration Policy for 2020
CEO REMUNERATION POLICY FOR 2020 FIXED COMPENSATION €1,3 million paid in cash ▪ The Board of Directors has considered: − Candidate background and experience − Peers practices (automotive industry and CAC40 companies) VARIABLE COMPENSATION 150% of based salary, paid in ▪ Quantitative performance obje
Slide 54: Thank You
THANK YOU