Renault Sa · EURONEXT:RNO
Renault Sa — FY2021 Earnings Presentation
50 slides from Renault Sa's earnings presentation, Feb 18, 2022
Slide 1: 2021 Financial results
2021 Financial results February 18, 2022 1
Slide 2: Agenda
Agenda 2021 Highlights 2021 Financial Results Outlook Strengthen the foundations of a competitive, tech and sustainable company Questions & Answers 2
Slide 3: 2021 Highlights
2021 Highlights Luca de Meo CEO Renault Group 3
Slide 4: 2021 achievements versus Renaulution outlook
at least 1 year in advance Free cash flow Fixed cost Cash Breakeven Profitability (1) generation (2) Investments (3) savings (4) point (4) Renaulution outlook >3% ~€3bn 8-9% >€2bn -30% in 2023 2021-2023 2021-2023 reduction by 2022 as of 2023 2021 achievements 2 yearsin advance 3.6% €1.3bn 8.5% >€2bn
Slide 5: In-depth ongoing transformation
In-depth ongoing transformation 2021 achievements Agile & value-creating Commercial Value over organization successes volume Cost reduction Strengthened Sustainable breakeven point lowered Alliance strategy 5
Slide 6: Agile organization fit for value creation
Agile organization fit for value creation P&L and customer oriented 6
Slide 7: Talent promotion and strategic recruitments
Talent promotion Women’s Leaner & strategic empowerment + efficient recruitments 250 30 50% -30% internal strategic of strategic Engineering promotions* recruitments recruitments managers’ position** * On top 1,000 ** versus beginning 2020 7
Slide 8: Successful Launches
Renault ARKANA Renault KANGOO VAN 60,000 orders Van of the year 2022 ~60% E-TECH Successful 60% retail channel Launches in 2021 Dacia SANDERO Dacia SPRING #1 retail PC in Europe 46,000 orders Alpine A110S 8
Slide 9: Success of E-TECH technology
Success of E-TECH technology SALES* K units +52% 203 133 EV EV 46 Hybrid EV Hybrid 2019 2020 2021 European mix* 4.5% 17% 31% * Passenger cars 9
Slide 10: Value over volume: pricing and channel mix
-38% Diversity vs June 2019 (new cars) +10 pts vs H1 2021 pricing Renault E-TECH mix effect Retail Channel Mix Renault* +10 pts to 50% +5.7 pts vs H1 2021 H2 2021 vs 2020 High-end versions ≥ 85% for Arkana, Kiger, Spring * Renault brand passenger cars, G5 10
Slide 11: Faster, stronger
Faster, stronger Cash fixed cost Cash breakeven reduction * point * >€2bn €2.3bn o/w €2bn of structural cost reduction -40% 1 year in advance 2 years in advance * versus 2019 11
Slide 12: Alliance ready for the future
Alliance ready for the future Efficient leader/follower strategy Common Largest EV offer Alliance Common Software Platforms worldwide Purchasing battery strategy Organization ~80% in 2026 35 full EV in 2030 Battery Technology: 1st full Software vs 60% in 2021 Purchasing NMC + ASSB Defined Vehicle El
Slide 13: Environment: strong ambitions & strategic partnerships
Environment: strong ambitions & strategic partnerships revealed in 2021 Decarbonization: Circular economy: engaged accelerate Suppliers Industry Well-to-wheel Renovate Recycle -30% -65% 120,000 vehicles 80% of recycled CO2 materials* Carbon-neutral well-to-wheel refurbished / year battery minerals -
Slide 14: Responsible employer
Responsible employer Equality ReKnow University Social dialogue Gender pay gap reduction Up & re-skilling 4 1.7% vs 7% in 2017 2,600 Trade union agreements Stronger ambition: People in 2021 0% in 2025 14
Slide 15: ESG as a performance driver
ESG as a performance driver KPI 2021 2022 Decarbonization tCO2e/vehicle sold* 29.8 <29 (-25% vs 2010) Circular economy # veh. refurbished Factory VO 3,000 30,000 Nb of reported accidents leading FR2 to time off work per million hours 1.66 1.4 worked Gender pay gap Points of gap 1.7% to 0% in 2025 Sk
Slide 16: REsurrection
REsurrection ahead of schedule Fast and strong turnaround 16
Slide 17: 2021 Financial Results
2021 Financial Results Clotilde Delbos Deputy CEO, CFO Renault Group 17
Slide 18: Renault Group Sales 2021 versus 2020 by region
Renault Group Sales 2021 versus 2020 Market and sales evolution by region(1) 2,822 2,696 1,523 1,428 685 660 135 151 219 194 260 263 2020(2) 2021 2020(2) 2021 2020(2) 2021 2020(2) 2021 2020(2) 2021 2020(2) 2021 Global Europe Eurasia Africa & Middle East Asia Pacific Latin America In % Δ / FY Car Mar
Slide 19: Renault Group Sales 2021 versus 2020 by brand
Renault Group Sales 2021 versus 2020 Sales evolution by brand(1) 2,822 2,696 1,789 1,694 521 537 384 385 129 80 2020(2) 2021 2020(2) 2021 2020(2) 2021 2020(2) 2021 2020(2) 2021 Others(3) In % Δ / FY 2020 -4.5 -5.3 +3.1 +0.3 -37.7 Δ / FY 2019 -25.7 -28.0 -26.9 -6.7 -37.6 (1) PC+LCV in thousand units
Slide 20: FY 2021 Group Revenue
FY 2021 Group Revenue In million euros FY 2020 FY 2021 Change Global unit sales (Kunits)(1) 2,822 2,696 -4.5% Group revenue 43,474 46,213 +6.3% o/w Automotive excl. AVTOVAZ 37,736 40,404 +7.1% o/w AVTOVAZ (2) 2,581 2,850 +10.4% o/w Automotive 40,317 43,254 +7.3% o/w Mobility Services 19 24 +26.3% o/
Slide 21: Revenue Variance Analysis
Mobility AVTOVAZ Services RCI Revenue Variance Analysis Automotive +2,668 +269 +5 -203 +6.3% Change FY 2021 vs FY 2020 46,213 43,474 +€2,739m In million euros FY 2020 FY 2021 H1 +18,425 +4,612 +396 +2 -78 +23,357 H2 +25,049 -1,944 -127 +3 -125 +22,856 Others Automotive Volume +1,980 +7.1% Market per
Slide 22: FY 2021 Operating Margin by Activity
FY 2021 Operating Margin by Activity In million euros FY 2020 FY 2021 Change Group operating margin -337 1,663 +1,999 % of Group revenue -0.8% 3.6% +4.4 pts o/w Automotive excl. AVTOVAZ -1,450 260 +1,710 % of segment revenue -3.8% 0.6% +4.4 pts o/w AVTOVAZ(1) 141 247 +106 o/w Automotive -1,309 507 +
Slide 23: Group Operating Margin Variance Analysis
Group Operating Margin Variance Analysis Others Change FY 2021 +483 vs FY 2020 RCI +€1,999m AVTOVAZ(1) +178 Productivity +106 +852 1,663 3.6% Mix / Net Enrichment In million FY 2020 +1,127 euros Raw Volume & -337 Currency materials Partners FY 2021 +8 Market -0.8% -468 perf. +293 -579 H1 -1,203 -70
Slide 24: Productivity Analysis excluding AVTOVAZ
Productivity Analysis excluding AVTOVAZ Change FY 2021 vs FY 2020 +€852m Manufacturing Amort. & R&D capit. rate G&A & logistics +42 +21 R&D +69 +217 Purchasing Warranty +541 -38 In million euros H1 +143 -58 +87 +47 -63 +63 H2 +398 +20 +130 +22 +105 -42 24
Slide 25: Cash fixed cost & breakeven point reduction
Cash fixed cost & breakeven point reduction Cash fixed cost reduction Cash breakeven point (2) (3) a year ahead of the plan in line with target 2 years ahead of the plan 32% 39% Key points • Engineering: Subcontracting -40% Actual optimization, line-up and diversity reduction, parts €2bn carry-over,
Slide 26: RCI Bank and Services
RCI Bank and Services FY 2020 FY 2021 New financings (€bn) 17.8 17.8 Average performing assets (€bn) 46.9 44.8 Net banking income 4.17% 4.08% Cost of risk (customer & dealer) -0.75% -0.14% Operating expenses -1.25% -1.27% Pretax income 2.14% 2.67% Operating profit (€m) 1,007 1,185 (in percentage of
Slide 27: Other Income & Expenses
Other Income & Expenses In million euros FY 2020 FY 2021 Change Restructuring costs -600 -430 +170 Impairment of PP&E*, intangible assets and goodwill -762 -149 +613 Capital gain/loss on disposal of assets -87 487 +574 Others -213 -173 +40 Total other operating income & expenses -1,662 -265 +1,397 *
Slide 28: FY 2021 Financial Results
FY 2021 Financial Results In million euros FY 2020 FY 2021 Change Group revenue 43,474 46,213 +6.3% Operating margin -337 1,663 +1,999 % of Group revenue -0.8% 3.6% +4.4 pts Other operating income & expenses -1,662 -265 +1,397 EBIT -1,999 1,398 +3,396 Net financial income & expenses -482 -350 +132 A
Slide 29: Associated Companies
Associated Companies In million euros FY 2020 FY 2021 Change NISSAN -4,970 380 +5,350 Others -175 135 +310 Total associated companies -5,145 515 +5,660 H1 H2 100 280 29
Slide 30: Current & Deferred Taxes
Current & Deferred Taxes In million euros FY 2020 FY 2021 Change Group revenue 43,474 46,213 +6.3% Operating margin -337 1,663 +1,999 % of Group revenue -0.8% 3.6% +4.4 pts Other operating income & expenses -1,662 -265 +1,397 EBIT -1,999 1,398 +3,396 Net financial income & expenses -482 -350 +132 As
Slide 31: Automotive Net Financial Position
Automotive Net Financial Position 2020 2021 December 31 December 31 -€3,579m -€1,622m Tangible The Board of Directors will propose to the AGM, to not pay a & intangible investments dividend for the 2021 financial year. Cash flow -3,207 Capex -1,909 Capitalized Disposal Operational Forex IFRS 16 of a
Slide 32: Debt and liquidity
Debt and liquidity Auto division liquidity reserves (in €bn) 17.3 16.4 15.8 Loan with French State guarantee ʺPGEʺ In 2022: €1bn mandatory annual reimbursement €1bn early repayment Fully reimbursed by the end of 2023 at the latest Dec. 2019 Dec.2020 Dec. 2021 32
Slide 33: New vehicles distribution stock excluding Avtovaz
New vehicles distribution stock excluding Avtovaz (In thousand units) 661 599 547 470 486 487 442 427 391 358 336 340 336 304 Total 263 245 236 270 Independent 167 dealers 234 224 189 173 157 150 123 Group 91 DEC'19 MAR'20 JUN'20 SEP'20 DEC'20 MAR'21 JUN'21 SEP'21 DEC'21 68 109 107 65 61 80 62 60 53
Slide 34: Outlook
Outlook Luca de Meo CEO Renault Group 34
Slide 35: 2022 Challenges and Opportunities
2022 Challenges Opportunities EC shortage Market & volume recovery Raw material price increases Pricing policy Cost inflation Cost reduction Product cycle (Arkana, Megane E-TECH, Jogger, Austral…) 35
Slide 36: 2022 outlook
2022 outlook Europe Eurasia Latam In an environment still impacted by the semiconductor crisis, particularly in the 1st half of 2022 (total loss estimated at 300,000 vehicles on 2022 production), and by the increase of raw materials prices, the Group is aiming to achieve for the full year: Group ope
Slide 37: Strengthen the foundations of a competitive, tech and sustainable company
Strengthen the foundations of a competitive, tech and sustainable company Luca de Meo CEO Renault Group 37
Slide 38: Competitiveness
Competitiveness Keep the pace on cost reduction Further improvement of our pricing / commercial policy Price - Channel mix - Product mix 38
Slide 39: Ambitious product offensive: 7 launches in 2022
Ambitious product offensive 7 launches in 2022 Renault MEGANE Dacia Renault E-TECH Electric JOGGER AUSTRAL Renault MOBILIZE KANGOO EV LIMO 39
Slide 40: Launches line-up to 2025
Ambitious product offensive Towards « Renaulution » Line-up 27 Launches 7 5 2023 11 2024 4 2025 2022 PC: 50% on C & above seg. 40
Slide 41: EV launches
Ambitious product offensive EV launches to sustain our value offer 2022 2023 2024 2025 41
Slide 42: Towards 100% Electric
Acceleration of Renault brand EV strategy Electricity, most competitive and efficient production unit for electric vehicles in Europe Towards 100% ELECTRIC for European PC in 2030 42
Slide 43: Strategic studies
Strategic studies to tackle automotive challenges Pure Electric Entity ICE & Hybrid Powertrain Entity Assets E-TECH ▪ 100% EV et SW technologies and activities ▪ Engine / transmission activities and Activities ▪ Renault 100% Electric (Europe 2030) technologies for ICE and Hybrid ▪ France Focus ▪ Out
Slide 44: Hydrogen
Ambitious H2 product offensive 3 30% Hydrogen LCVS from mid 2022 Market share * Objective by 2030 in Europe * in H2 LCV segment 44
Slide 45: Software Defined Vehicle
In the game for Software Defined Vehicle Google Automotive Services: 1st global mass market OEM 3M Alliance connected cars today 25M in 2026 1st full software defined vehicle in 2025 Strong Tech partners 45
Slide 46: Launch of a concept-car
Launch of a concept-car embodying Renault’s vision of sustainability May 2022 Environment Safety Human-centric Zero CO2 Anticipative tech Recycled Inclusion Easy access Recyclable Diversity 46
Slide 47: Competitive, tech & sustainable company
Competitive, tech & sustainable company 47
Slide 48: Questions & Answers
5 Questions & Answers 48
Slide 49: 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 50: 2021 Financial results
2021 Financial results February 18, 2022 50