Renault Sa · EURONEXT:RNO
Renault Sa — Investor Presentation (July 2024)
44 slides from Renault Sa's investor presentation, July 2024
Slide 1: Introduction to Renault Group
Introduction to Renault Group JULY 2024 1
Slide 2: Download Invest'R app
Download Invest’R The app dedicated to Renault Group investors To download the free application, scan this QR code with your smartphone 2
Slide 3: Agenda
Agenda Strategy Focused businesses Financial performance & Smart capital allocation Alliance Appendix 3
Slide 4: Strategy
OT Slugeluciehy,
Slide 5: Renault Group is an OEM at the forefront of a mobility that is reinventing itself
Renault Group is an OEM at the forefront of a mobility that is reinventing itself. Strengthened by its unique expertise in electrification, Renault Group comprises 5 complementary brands offering sustainable and innovative mobility solutions to its customers 2024 car of the year 5
Slide 6: Coherent portfolio, strong brands
Coherent portfolio, strong brands Repositioned Newly created 6
Slide 7: Our purpose: key facts
Our purpose: “Our spirit of innovation takes mobility further to bring people closer” €52.4bn Group revenue 5 business entities €2.3bn net income 2.2m vehicles sold 4 105,497 brands employees in 33 countries and a carbon footprint reduced by 10% per vehicle since 2019 20+ strategic partners 7.9% ope
Slide 8: A global industrial footprint with 34 production sites
A global industrial footprint with 34 production sites RUITZ (ElectriCity) DIEPPE (ALPINE) DOUAI (ElectriCity) MIOVENI (DACIA) SANDOUVILLE MAUBEUGE (ElectriCity) MIOVENI (HORSE) ST ANDRÉ DE L’EURE (SFKI) FRANCE BATILLY (SOVAB) CLÉON NOVO MESTO (REVOZ) ROMANIA SLOVENIA LE MANS MEYZIEU BURSA (OYAK REN
Slide 9: A 3-step plan launched in 2021
A 3-step plan launched in 2021 9
Slide 10: A focused & agile organization
Addressing each value chain A focused & agile organization Power PC ICE & hybrid Alpine LCV EV & Software ICE & hybrid powertrains ICE & EV & HIGH-END FINANCING, CIRCULAR HYBRID SOFTWARE ENERGY & ECONOMY MOBILITY 10
Slide 11: Our sustainability strategy feeds Renaulution's deployment
Our sustainability strategy feeds Renaulution’s deployment CORPORATE PURPOSE “Our spirit of innovation takes mobility further to bring people closer “ CORPORATE STRATEGY ESG VISION GREEN AS A BUSINESS CARING CARS CARING COMPANY ESG “Carmakers, care makers. We make cars while taking care of the peopl
Slide 12: Performance improvement & efficient capital allocation strategy
Performance improvement & efficient capital allocation strategy Smart approach Strict commercial Accelerated Increased through policy focused cost reduction supply chain partnerships on value program control & scrutiny with best players Objective to Strong cash Priority to return to gradually increa
Slide 13: Renault Group has the flexibility
Whatever the pace, whatever the energy Renault Group has the flexibility EV & SOFTWARE ICE & HYBRID Ampere Power & HORSE A growth tech weapon with Cash-generating businesses vehicles already on the road Low emissions technologies Mobilize & The Future Is NEUTRAL Supporting the Group’s business model
Slide 14: Partnerships will fuel the Revolution
Partnerships will fuel the Revolution is self-financed Accelerated by partnerships & external fundings Capture growth Access businesses Accelerate innovation Optimize costs Reduce opportunities with margin > traditional auto & time to market & capital requirements & share risk ROCE above 30% from 20
Slide 15: Renault Group's open partnership approach as a key differentiator
Renault Group’s open partnership approach as a key differenciator Secured battery capacity Better time to market Low-risk investment Raw materials secured Reduced development time Agility & technological flexibility Efficient capital allocation Development with best-in-class tech players 15
Slide 16: Focused businesses
O2 Focused businesses = — Power dh fone TERR © | eve we +4 mesiize Ba ae | Bryer ° ° Alpine ° ° © |): - Vv y V7 Vv & ® Omte 2 ICE& Bye HIGH-END FINANCING, CIRCULAR HYBRID SOFTWARE ENERGY & ECONOMY MOBILITY 6
Slide 17: Power: Highly cash-generating businesses
Power: Highly cash-generating businesses Global Supplier of ICE & hybrid Passenger Cars Passenger Cars Light Commercial powertrain ICE & hybrid ICE & hybrid vehicles (LCV) technologies SUPPLIES Globally A unique value Revolution Reinventing uplifted proposition for Pros & Urban combustion logistics
Slide 18: Partnering with leading players: Flexis
Partnering with leading players when it creates value for Renault Group Flexis: the most innovative & efficient player for energy transition in LCV and last mile logistics 3 complementary leaders Targeting investing into Flexis SAS JV 45% the European market for electrified vans +40% CAGR until 2030
Slide 19: Ampere: The European challenger
Ampere: The European challenger Tech excellence and operational focus to democratize EV Agile mindset, established with scale, designed to deliver High growth Low risk Scarcity value 1 2 3 4 5 6 7 Fast-growing Exciting Unique Competitive Agile and #1 ESG rating in Only publicly European EV product h
Slide 20: Clear roadmap to reduce costs and democratize EV
Clear roadmap to reduce costs and democratize EV ~40% cost reduction target from 1st to 2nd Gen C-EV -50% -25% battery e-powertrain cost cost -25% -15% -50% platform upper manufacturing & cost body cost logistic cost 1 ST G E N 2 ND G E N T O D A Y E V E N G I N E V E H I C L E P R O D U C T I V I T
Slide 21: Scenic E-tech: the future of family cars
Scenic E-tech: the future of family cars Our first electric family car, at the heart of the European market Up to ~90% of materials are − Starting price: c.€40k recyclable − Dimensions − Range: >625km WLTP Up to ~24% − Efficiency of recycled materials − Weight: 1.8t − Content (incl. OpenR Link with
Slide 22: Renault 5: an EV with a soul
Renault 5: an EV with a soul Starting price: c.€25k Outstanding press reaction after first platform test drive Range: >400km WLTP ~80 millions of PR value created since concept reveal in Jan. 21 Range recovered in 30 mins: up to 300kms V2G capabilities unlocking customer benefits Trunk capacity at 3
Slide 23: Alpine: Unique sports car brand coupled with F1 Team
Alpine: Unique sports car brand coupled with F1 Team Sales Partnerships Brand development attractivity awareness #1 Capital investment Brand Value(1) Sports car in France in Alpine Racing Ltd >€700m Sales x 3 Miami partnership with AutoNation Breaking into the most valued brands (2023 vs. 2020) in F
Slide 24: Alpine: Growing from niche to global brand
Alpine: Growing from niche to global brand RE-IGNITING THE BRAND COMING OF AGE EXPANDING GLOBALLY 2021 2023 2024 2026 2027 2030+ Brand awareness €1bn brand value Global sports brand & franchise <50% sales out of France 2/3 of sales outside France 1/2 of sales outside Europe >10% Operating margin Inv
Slide 25: Mobilize: Banking on mobility
Mobilize: Banking on mobility €4.2bn 43% 4m 51% Revenue Penetration Customers Funding by FINANCIAL SERVICES Rate(1) retail deposits ENERGY MOBILITY SOFTWARE SERVICES SERVICES ECOSYSTEM Mobilize is fully empowered to grow faster thanks to strong assets (1) Excluding Equity Affiliated Companies 27
Slide 26: The Future Is NEUTRAL: Circular economy solutions
The Future Is NEUTRAL: Circular economy solutions throughout the car’s lifecycle TODAY 2030 ~50% VALUE CHAIN COVERAGE >90% CLOSED LOOP PRODUCTION PARTS VEHICLE LIFE VEHICLE BATTERY BATTERY MATERIALS SCRAP REMANUFAC- EXTENSION RECYCLING 2ND LIFE RECYCLING SOURCING RECYCLING TURING STEEL with partners
Slide 27: The Future Is NEUTRAL: Fast & profitable growth
The Future Is NEUTRAL: Fast & profitable growth # OF BUSINESSES IN REVENUE(2) OPERATING MARGIN(2) 3 EXISTING • Process scrap recycling • ELV(1) valorization >10% • Post consumer material closed loop €1.5bn 3 NEW ▪ Circular economy parts €750m 2030 MARGIN RATE(2) ▪ Battery recycling ▪ Training & Cons
Slide 28: Financial performance & Smart capital allocation
3 Financial performance & Smart capital allocation 31
Slide 29: Financial fundamentals improving as the Renault Group transforms itself
Financial fundamentals improving as the Renault Group transforms itself Operating margin Free Cash Flow As % of revenue In billion euros 7.9% 3.0 2.1 5.5% 0.9 2.8% -1.0% -4.8 2020 (1) 2021 (1) 2022 (2) 2023 2020 (1) 2021 (1) 2022 (2) 2023 (*) Average per annum ROCE from 0% in 2021 to 28.5% in 2023 (
Slide 30: Launching the product offensive across all our brands
Launching the product offensive across all our brands EV PC ICE/HYBRID PC ICE/HYBRID PC EV PC ICE/HYBRID PC for Europe for Europe for International for Europe & International For Europe & International DACIA BIGSTER RENAULT SCENIC E-TECH RENAULT RAFALE RENAULT KARDIAN RENAULT 4 E-TECH* RENAULT C-SUV
Slide 31: The best defense: cost reduction
The best defense: cost reduction EV Industrial base Energy competitiveness transformation efficiency 40% cost reduction program Production cost reduction Consumption reduction to reach EV/ICE price parity by 2027 in the plants before competition(1) -30% on ICE & hybrid 2025 vs. 2021, per vehicle -50
Slide 32: 2024 financial outlook
2024 financial outlook Operating margin Free cash flow ≥ 7.5% ≥€ 2.5bn FY 2023 Operating Margin stood at 7.9%. Excluding Horse impact it stood at 6.9% 36
Slide 33: Capital allocation
Capital allocation Investment grade is the priority A gradual and disciplined evolution Acceleration and return 1 of the dividend payout ratio 2 to stakeholders PRIORITY: 35% CASH REINVESTMENT pay out ratio RETURN TO Growth INVESTMENT GRADE Financial Investments Other(2) 17.5% pay out ratio (1) €1.8
Slide 34: Financial outlook: reach new heights!
Financial outlook: reach new heights! Operating margin Free Cash Flow As % of revenue In billion euros >€3bn >10% per year on average >8% >€2bn per year on average • R&D / Capex <8% of revenue over the period • Mobilize Financial Services dividend >€500m p.a on average(1) 2025e 2030e 2023-2025e 2026
Slide 35: Financial outlook per business: profit & cash are king
Financial outlook per business: profit & cash are king The Future Power Ampere Alpine Mobilize Is NEUTRAL Cash-flow Profitable growth Internationally Recurring services Sustainable generation & innovation with growing high-end revenue with & profitable growth low execution risk anchor high margins •
Slide 36: Alliance
_ ele 4 —— Alliance
Slide 37: The Alliance re-ignited: focused on operations
The Alliance re-ignited: focused on operations 41
Slide 38: The Alliance founding principles
The Alliance founding principles High-value creation Balanced governance operational projects & cross-shareholding Hundreds of millions euros of value creation every year 15% cross-shareholding Key projects in with 15% voting rights Latin America, India, and Europe Transfer of 28.4%, 3 dimensions: o
Slide 39: Ongoing common projects
Ongoing common projects TECHNOLOGIES EUROPE • ASSB Mitsubishi Motors • CCS • Software-Defined Vehicle New car (derivative COLT ASX • … from Renault) Chennai Engineered LATAM Alliance plant and manufactured by Ampere including: New C-SUV EV ½ ton & 1 ton pick-ups Global A-seg EV Renault & Nissan plan
Slide 40: Evolution of Nissan's capital held by Renault Group
Evolution of Nissan’s capital held by Renault Group 1,831.8m shares 211m 1,620.8m 43.40% shares 99.1m 1,521.7m shares shares shares 40.42% 38.92% Bought at 1,198.7m 3bn ¥568.5 and Bought at shares cancelled 987.7m ¥593.4 and 888.6m 28.40% by Nissan shares 24.63% cancelled by Nissan shares 22.73% c.€
Slide 41: Appendix
Renault Group
Slide 42: Renault Group ownership and organizational structure
Renault Group ownership and organizational structure Renault SA 63.12% 15.01% Public French State Renault SAS Dacia Nissan Motor 100% 99.4% 38.92%(1) 15.00% (1) As of April 3, 2024. Nissan Of which 22.73% transferred into a French trust Automotive Diverse industrial and Breakdown of 100% commercial
Slide 43: Our latest announcements
Our latest announcements Press Release Press Release Press Release Presentation Presentation Presentation Replay of the event Replay of the event Replay of the event 47
Slide 44: Discover us in video
Discover us in video Discover our line-up 1,000 days of Renaulution Letter to Europe 48