Renault Sa · EURONEXT:RNO

Renault Sa — Groupe Renault — Deutsche Bank Conference Frankfurt 2017

23 slides from Renault Sa's conference presentation, September 2017

  1. Slide 1: Deutsche Bank Conference – Frankfurt 2017

    GROUPE RENAULT DEUTSCHE BANK CONFERENCE – FRANKFURT 2017 INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 1

  2. 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

  3. Slide 3: Drive the Change: How We Met Our Targets

    01 DRIVE THE CHANGE HOW WE MET OUR TARGETS INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 3

  4. Slide 4: How We Met Our Targets (2010-2016 Update)

    HOW WE MET OUR TARGETS (2010 - 2016 UPDATE) GROWTH TARGET PROFITABILITY TARGET POSITIVE FCF OVER ACHIEVED OVER ACHIEVED EVERY YEAR 6.4% Group 51.2 Automotive COP Free cash flow revenues Group COP 4.9% 1,084 1,083 1,033 1,107 3.9% 827 41.1 597 2.8% 39.0 2.2% 1.1% 2010 2014 2016 2010 2014 2016 2011 20

  5. Slide 5: How We Met Our Targets: Product Enrichment

    HOW WE MET OUR TARGETS PRODUCT ENRICHMENT RANGE BEFORE 2010 RANGE 2010 - 2016 EXTENDED AUTONOMY INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 5

  6. Slide 6: How We Met Our Targets: Sales to Partners

    HOW WE MET OUR TARGETS SALES TO PARTNERS 40% contribution to growth of revenues 2010 - 2016 INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 6

  7. Slide 7: How We Intended to Improve Operating Margin

    HOW WE INTENDED TO IMPROVE OPERATING MARGIN Cost Volume reduction Provision Raw FOREX material >5% Enrichment Net 3.0 % FY2013 > FY2016 INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 7

  8. Slide 8: What We Achieved

    WHAT WE ACHIEVED Volume FOREX Cost Raw Enrichment reductions material Net > €3 billion 3,282 1,099 6.4% 2.8% 2011 2016 2010 – 2016 CUMULATED (million euros) INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 8

  9. Slide 9: Objective: Accelerating Alliance Synergies

    ACCELERATING ALLIANCE SYNERGIES 4 KEY-FUNCTIONS CONVERGENCE ALLIANCE SYNERGIES 4 KEY-FUNCTIONS CONVERGENCE €5.5bn €5 bn €3.8bn €4.3bn OBJECTIVE UPSTREAM PURCHASING ENGINEERING 2009 2010 2011 2012 2013 2014 2015 2016 2018 MANUFACTURING HUMAN & LOGISTICS RESOURCES Renault Nissan INVESTOR RELATIONS – H

  10. Slide 10: 2017 Sales Results – YTD July

    02 2017 SALES RESULTS – YTD JULY INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 10

  11. Slide 11: Groupe Renault's Unit Registrations YTD July 2017 vs 2016

    GROUPE RENAULT’S UNIT REGISTRATIONS YTD JULY 2017 VS 2016 (incl. Lada) K units (PC+LCV) 2170 WORLD MARKET SHARE: 4.1% (+0.3 pts) 1 963 1 098 1163 INTERNATIONAL +16.5% 346 386 253 292 189 215 77 115 YTD'16 YTD'17 YTD'16 YTD'17 YTD'16 YTD'17 YTD'16 YTD'17 YTD'16 YTD'17 YTD'16 YTD'17 GLOBAL EUROPE AFRI

  12. Slide 12: Focus on EV

    FOCUS ON EV ZOE IS THE ONLY AFFORDABLE EV WITH 400KM HOMOLOGATED RANGE  New ZE 40 battery with 400km NEDC range  300km in real life driving conditions  New ‘pay as you drive’ battery rental scheme SALES: STRENGTHENING ZOE LEADERSHIP ORDERS: BREAKTHROUGH ON ZOE  ZOE is leader in Europe (+48% vs 2

  13. Slide 13: 2017 H1 Results and Perspectives

    03 2017 H1 RESULTS AND PERSPECTIVES INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 13

  14. Slide 14: Key Take-aways from H1 Results

    KEY TAKE-AWAYS FROM H1 RESULTS  ROBUST GROWTH IN ALL REGIONS  STRONG CONTRIBUTION FROM SALES TO PARTNERS  COST SAVINGS BACK ON TRACK  NEGATIVE MIX NET PRICE ENRICHMENT  AVTOVAZ IN A RECOVERY MODE INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 14

  15. Slide 15: H1 2017 Financial Results

    H1 2017 FINANCIAL RESULTS In million euros H1 2016 H1 2017 CHANGE REVENUES 25,185 29,537 +17.3% OPERATING PROFIT 1,541 1,820 +279 % OF GROUP REVENUES +6.1% +6.2% +0.1 pts OTHER OPERATING INCOME & EXPENSES -65 -31 +34 EBIT 1,476 1,789 +313 NET FINANCIAL INCOME & EXPENSES -67 -211 -144 ASSOCIATED COMP

  16. Slide 16: H1 2017 Operating Profit by Activity

    H1 2017 OPERATING PROFIT BY ACTIVITY In million euros H1 2016 H1 2017 CHANGE GROUP OPERATING PROFIT 1,541 1,820 +279 % GROUP REVENUES +6.1% +6.2% +0.1pts o/w AUTOMOTIVE 1,121 1,292 +171 % AUTOMOTIVE REVENUES +4.7% +4.8% +0.1pts o/w AVTOVAZ* - 3 +3 o/w SALES FINANCING 420 525 +105 *AVTOVAZ net of eli

  17. Slide 17: Group Operating Profit Variance Analysis

    GROUP OPERATING PROFIT VARIANCE ANALYSIS CHANGE H1 2017 vs H1 2016 : +€279m RCI Banque Currency Volume & & others AVTOVAZ** Monozukuri Raw G&A materials Mix / Net partners -95 3 -44 Enrichment 177 204 -132 -180 346 1,817 1,820 1,541 COST GROWTH REDUCTION +€523m +€160m H1 2016* H1 2017 H1 2017 (milli

  18. Slide 18: Cost Reduction Analysis Excluding AVTOVAZ

    COST REDUCTION ANALYSIS EXCLUDING AVTOVAZ CHANGE H1 2017 vs H1 2016: +€160m Monozukuri -11 -83 +382 -84 -44 Purchasing Warranty R&D Manufacturing & G&A Logistics (million euros) INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 18

  19. Slide 19: RCI Banque

    RCI BANQUE H1 2016 H1 2017 NEW FINANCINGS (€Bn) 8.9 10.4 AVERAGE PERFORMING ASSETS (€Bn) 31.9 38.6 NET BANKING INCOME 4.39% 4.44% COST OF RISK (CUSTOMER & DEALER) -0.30% -0.29% OPERATING EXPENSES -1.41% -1.37% PRETAX INCOME 2.71% 2.83% OPERATING PROFIT (€m) 420 525 ( in percentage of average perform

  20. Slide 20: H2 2017 Risks & Opportunities

    H2 2017 RISKS & OPPORTUNITIES  FX VOLATILITY  MONOZUKURI  RAW MATERIALS  RECOVERY IN RUSSIA AND BRAZIL  MARKET CHANNEL MIX IN EUROPE  NEW PRODUCTS INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 20

  21. Slide 21: 2017 TIV Outlook

    2017 TIV OUTLOOK RUSSIA at least +5% 2 EUROPE + % FRANCE +2% GLOBAL TIV * CHINA 5 + % + 1.5% to + 2.5% INDIA 8 + % * PC+LCV INCLUDING USA & CANADA BRAZIL BRAZIL 65 -+ %% INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 21

  22. Slide 22: 2017 Outlook

    2017 OUTLOOK INCLUDING AVTOVAZ, THE GROUP IS AIMING TO :  Increase group revenues, beyond the impact of AVTOVAZ (at constant exchange rates)*  Increase group operating profit in euros*  Generate a positive Automotive operational free cash flow * compared with 2016 Groupe Renault published results

  23. Slide 23: Questions & Answers

    03 QUESTIONS & ANSWERS INVESTOR RELATIONS – H1 RESULTS PRESENTATION SEPTEMBER 2017 PROPERTY OF GROUPE RENAULT 23

Groupe Renault — Deutsche Bank Conference Frankfurt 2017 on 6ix