Slide 1: 2023 H1 Financial Results
2023 H1 Financial Results July 27, 2023 1
Slide 2: Agenda
Agenda 2023 H1 Highlights & Strategy 2023 H1 Financial Results 2023 Outlook Questions & Answers 2
Slide 3: 2023 H1 Highlights & Strategy
1 2023 H1 Highlights & Strategy Luca de Meo CEO Renault Group 3
Slide 4: Record operating margin & free cash flow
Record operating margin & free cash flow Group Free Operating margin cash flow 2023 H1 Guidance(1) > 7% c. € 1.5bn 2023 H1 Achievements 7.6% € 1.8bn (1) Upgraded on June 29, 2023 4
Slide 5: Structurally profitable & cash generative
Structurally profitable & cash generative Cash fixed Breakeven R&D Capex ROCE costs point -€2.5bn -50% -40% +12pts vs 2019(1) vs H1 2019 on new vehicles since 2019 in 2023 H1 vs 2019 (1) 2022 FY vs 2019 FY – including RRG 5
Slide 6: The best line-up in decades
The best line-up in 3 decades 22 launches >50% ~50% C segment & above Battery Electric Vehicles ~90% Electrified Vehicles over 2022-2025 -40% entry ticket per model vs previous generation 6
Slide 7: Cars with boosted financials
Cars with boosted financials +46% in both Average net revenue per vehicle(1) & Contribution margin per vehicle(2) (1) 2023 H1 vs. 2019 H1 (2) Contribution margin = margin on variable costs, 2023 H1 vs. 2019 H1 7
Slide 8: C’est possible !
C’est possible ! Verkor Manufacture ElectriCity de Dieppe | Douai – Ruitz - Maubeuge 1 Cléon Envision AESC Sandouville ReFactory Batilly # PASSENGER CARS Hyvia & LIGHT COMMERCIAL VEHICLES Le Mans # 3 PASSENGER CARS Whylot Software Factory Software Factory # 1 SPORTS CAR Renault Group and ElectriCity
Slide 9: Renaulution all around the world
Renaulution all around the world Production Profitability capacity rightsizing -1.2m Key geographies units capacity back to vs 2019 positive 9
Slide 10: ESG for real
ESG for real Lifecycle vehicle ReKnow Employee emissions University shareplan -25% 16,000+ >40,000 CO2 emissions people already trained subscribers in 2022 vs 2010 CAC 40 ESG 10
Slide 11: Coherent portfolio, strong brands
Coherent portfolio, strong brands Repositioned Newly created 11
Slide 12: Renault is back
Renault is back From 5th to 2 nd best-selling # 1 in France(2) brand in Europe(1) (1) PC + LCV, Europe; 5th position as of 2022 H1, 2nd position as of 2023 H1 (2) Passenger Cars and Light Commercial Vehicles, as of 2023 H1 12
Slide 13: From “cheap” to smart
From “cheap” to smart Double-digit Top 2 operating margin 10 # in 2023 brand for retail customers 15% in Europe(1) in Europe(2) operating margin target in 2030 (1) Dacia ranked #10, Passenger Cars + LCV, Europe, as of 2023 H1 (2) As of 2023 H1 13
Slide 14: Re-ignited: electric & global
Re-ignited: electric & global 7 Assets attractivity(1) ~$900m models 100% valuation for Alpine Racing Ltd UK electric (chassis entity only) (1) Based on Otro Capital, RedBird Capital Partners and Maximum Effort Investments €200m investment for a 24% equity stake in Alpine Racing Ltd UK 14
Slide 15: A new brand for a new paradigm
A new brand for a new paradigm Leasing Full value chain A new breed activities coverage of a captive & financing 1m vehicles purpose-designed entity fleet by 2030 vehicles 15
Slide 16: #1 in the automotive circular economy
#1 in the automotive circular economy >€2.3bn >10% turnover(1) operating margin target in 2030 target in 2030 (1) Total Scope, Sum of the Parts – not entirely within Renault Group scope of consolidation 16
Slide 17: A leading supplier of ICE & hybrid powertrain technologies
A leading supplier of ICE & hybrid powertrain technologies Aramco Carve-out 50/50 evaluating effective on JV agreement (1) July 1st , 2023 a strategic with Geely investment (1) Signed on July 11th, 2023 17
Slide 18: The NextGen leader in BEV and software
The NextGen leader in BEV and software Carve-out Break-even in 2023 H2 operating margin Best window target in 2025 40% for an IPO ~10% Cost reduction target(1) most probably operating margin in 2024 H1 target in 2030 (1) On a car-by-car basis in next vehicles generation by 2027, excluding incrementa
Slide 19: The Alliance: Re-invented
The Alliance: Re-invented Operational Investment Nissan shares projects in Ampere monetization Hundreds of 28.4% Up to millions euros of value creation every year €600m available 19
Slide 20: The beat of the Renaulution in 1,000 days
The beat of the Renaulution 150 Renaulution projects in 1,000 days 20
Slide 21: 2023 H1 Financial Results
2 2023 H1 Financial Results Thierry Piéton CFO Renault Group 21
Slide 22: 2023 H1 Group revenue
2023 H1 Group revenue In million euros 2022 H1(1) 2023 H1 Change Global unit sales (Kunits) 1,001 1,134 +13.2% Group revenue 21,089 26,849 +27.3% o/w Automotive 19,574 24,850 +27.0% o/w Mobility Services 17 21 +23.5% o/w Sales Financing (Mobilize Financial Services) 1,498 1,978 +32.0% (1) After IFRS
Slide 23: Revenue for Automotive
Revenue for Automotive Change 2023 H1 vs. 2022 H1 +27.0% +€5,276m Sales to Price Partners Others Product Mix Geographic 24,850 Mix Volume Currency 19,574 -3.2pts +15.0pts +2.3pts +3.5pts +8.8pts +1.6pts -1.0pts In € million 2022 H1 2023 H1 23
Slide 24: 2023 H1 Renault Group sales
2023 H1 Renault Group sales Sales evolution by brand(1) 1,134 1,001 (2) 2022 H1 2023 H1 772 692 345 278 31 17 RENAULT GROUP RENAULT DACIA Others(3) In % Δ / 2022 H1 +13.2% +11.6% +24.2% -48.2% (1) PC+LCV in thousand units (2) 2022 volumes excluding Renault Russia and AVTOVAZ (3) Others = Alpine, Ren
Slide 25: Robust drivers to support the “value” strategy
Robust drivers to support the “value” strategy C & above segment mix(1) +6pts to 42% vs 2022 H1 2023 H1 Pricing Product Mix High trims effect effect ≥ 60 % on new launches(2) +8.8pts +3.5pts Retail channel mix(3) vs 2022 H1 vs 2022 H1 65% 2023 H1 (1) Renault brand, passenger cars Europe (2) Renault
Slide 26: Renault Megane E-TECH 100% Electric
Electrification Start of sales: June 2022 Renault Megane E-TECH 100% Electric #1 C-EV 23,000 sales in H1 in France in H1 >50 % retail mix 70 % high trim versions >80 % powertrain 60kWh / 220hp 26
Slide 27: Renault Austral
Conquest C-segment Start of sales: November 2022 Renault Austral 40,000 sales already in H1 TECH 65 % E-TECH Hybrid OpenR link & Google Auto. Services 60 % high trim versions C-SUV contribution margin 27
Slide 28: Dacia Brand reshape
Dacia Brand reshape EXTREME new high trim version >45,000 EXTREME orders Materializing Dacia New Brand Identity & Outdoor brand territory Conquest lever In preparation for New Duster launch 28
Slide 29: 2023 H1: record operating margin
2023 H1: record operating margin In million euros 2022 H1(1) 2023 H1 Change Group operating margin 972 2,040 +1,068 % of Group revenue 4.6% 7.6% +3.0pts o/w Automotive 420 1,541 +1,121 % of segment revenue 2.1% 6.2% +4.1pts o/w Mobility Services -14 -19 -5 o/w Sales Financing (Mobilize Financial Ser
Slide 30: Operating margin evolution: breaking records
Operating margin evolution: breaking records Group margin Auto margin 7.6% 6.3% 6.2% 4.6% 4.2% 3.5% 2.6% 2.1% 2.1% 0.3% 0.7% -0.7% -7.3% -11.0% 2020 H1 (1) 2020 H2 (1) 2021 H1 (1) 2021 H2 (1) 2022 H1 (2) 2022 H2 (2) 2023 H1 (1) Adjusted to reflect the exit from Russia (2) After IFRS 17 restatement 3
Slide 31: Group operating margin variance analysis
Group operating margin variance analysis Raw Materials -342 Purchasing Change 2023 H1 -270 Warranty Manufacturing & logistics vs 2022 H1 & other +€1,068m Price / Mix / -103 -466 Enrichment +3.0pts Costs Horse impact R&D(2) Mobilize SG&A Financial Volume Services Others +2,040 7.6% Currency +972 4.6%
Slide 32: Sales Financing: Mobilize Financial Services
Sales Financing: Mobilize Financial Services 2022 H1(1) 2023 H1 Change New financings (€bn)(2) 8.8 10.4 +19.0% Average performing assets (€bn) 43.7 49.9 +14.2% Net banking income 4.59% 3.93% -0.65pt Cost of risk (customer & dealer) -0.49% -0.38% +0.11pt Operating expenses -1.49% -1.44% +0.05pt Preta
Slide 33: Group consolidated income statement
Group consolidated income statement In million euros 2022 H1(1) 2023 H1 Change Group revenue 21,089 26,849 +27.3% Operating margin 972 2,040 +1,068 % of Group revenue 4.6% 7.6% +3.0pts Other operating income & expenses -49 56 +105 EBIT 923 2,096 +1,173 Net financial income & expenses -236 -260 -24 A
Slide 34: 2023 H1: record free cash flow generation
2023 H1: record free cash flow generation Tangible & intangible Cash flow investments • Capex: -€687m • Disposals: +€197m 3,292 • Capitalized R&D: -€655m • Leased vehicles: -€15m Change -1,160 in WCR Operational Restructuring o/w €600m free cash MFS(1) dividend -138 -219 flow 1,775 In € million (1)
Slide 35: Automotive net financial position
Automotive net financial position Change June 2023vs. Dec. 2022 +€1,636m Operational Net Financial Forex IFRS 16 free cash investments & impact & flow dividends others +1,775 -35 -104 2,185 549 In € million Dec. 2022 June 2023 35
Slide 36: New vehicles distribution inventories
New vehicles distribution inventories (In thousand units) 580 569 Total 486 487 480 427 421 409 Independent dealers 336 340 336 336 348 340 304 307 263 245 231 237 177 273 173 224 184 Group 167 159 140 160 150 123 117 91 Dec. 2020 Mar. 2021 Jun. 2021 Sep. 2021 Dec. 2021 Mar. 2022 Jun. 2022 (1) Sep.
Slide 37: Debt and liquidity
Debt and liquidity Credit ratings year-on-year evolution Auto division liquidity reserves S&P Global BB+/Stable (In € billions) from BB+/Negative 17.7 Moody’s Ba2/Stable 16.7 16.8 from Ba2/Negative 15.8 R&I A-/Stable from A-/Negative (in €bn) JCR A-/Stable (unchanged) Loan with French State guarante
Slide 38: 2023 Outlook
3 2023 Outlook Thierry Piéton CFO Renault Group 38
Slide 39: 2023 financial outlook
2023 financial outlook Stronger, faster Operating margin Free cash flow 7%- 8% ≥€ 2.5bn Guidance upgraded in June 2023 Market Europe Eurasia Latam trends 39
Slide 40: Questions & Answers
4 Questions & Answers 40
Slide 41: Annexes
5 Annexes 41
Slide 42: 2023 H1 Renault Group Sales
2023 H1 Renault Group Sales Market and sales evolution by region(1) 1,134 1,001 (2) 2022 H1 2023 H1 803 647 144 153 125 124 85 54 Global Europe Eurasia Asia Pacific Latin America Africa & Middle East In % Car Market +16.7% +12.0% +7.5% +7.8% Δ / 2022 H1 Renault Group +24.1% +6.6% -37.9% -0.6% (1) PC
Slide 43: Other income & expenses
Other income & expenses In million euros 2022 H1 2023 H1 Change Restructuring costs -134 -188 -54 Impairment of PP&E(1), intangible assets and goodwill -2 1 +3 Capital gain/loss on disposal of assets 56 227 +171 Others 31 16 -15 Total other operating income & expenses -49 56 +105 (1) Property, Plant
Slide 44: Associated companies
Associated companies In million euros 2022 H1 2023 H1 Change Nissan 325 582 +257 Others -111 -16 +95 Total associated companies 214 566 +352 44
Slide 45: Debt redemption schedule (Renault SA)
Debt redemption schedule (Renault SA) €bn – as of June 30, 2023 Bond & Assimilated 2023 0.5 0.9 1.4 NEU CP 2024 1.6 1.6 2025 2.4 2.4 2026 3.1 3.1 € 10.1bn 2027 1.0 1.0 2028 0.6 0.6 45
Slide 46: 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 47: 2023 H1 Financial Results
2023 H1 Financial Results July 27, 2023 47