Renault SA · EURONEXT:RNO
Renault SA — FY2018 Earnings Presentation
33 slides from Renault SA's earnings presentation, Feb 14, 2019
Slide 1: 2018 Financial Results Conference
2018 Financial Results Conference INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 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 2018 Financial Results 01 Clotilde Delbos EVP, Group Chief Financial Officer 02 2018 Key Achievements & 2019 Outlook Thierry Bolloré Chief Executive Officer 03 Questions & Answers INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 3
Slide 4: 2018 Financial Results
01 2018 Financial Results Clotilde Delbos EVP, Group Chief Financial Officer INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 4
Slide 5: Groupe Renault's Sales 2018 vs 2017
Groupe Renault’s Sales 2018 vs 2017 2017 (Renault, Dacia, Lada, RSM, Alpine) 2018 (Jinbei & Huasong: J/H) 2018 (Renault, Dacia, Lada, RSM, Alpine) 3,884 3,762 166 World Market Share: 4.0% w/o J/H 4.2% with J/H 3,718 1,912 1,921 International -2.8% w/o J/H +6.1% with J/H 733 747 532 449 438 389 330 1
Slide 6: Group Revenues
2018 Group Revenues In million euros 2017 2018 Change (1) (1) Global unit sales (units) 3,762,077 3,884,295 +3.2% Group revenues(2) 58,770 57,419 -2.3% (3) (3) o/w Automotive excl. AVTOVAZ 53,530 51,171 -4.4% o/w AVTOVAZ(4) 2,727 3,040 +11.5% o/w Sales Financing 2,513 3,208(3) +27.7%(3) H1 H2 -0.5%
Slide 7: Automotive Excluding AVTOVAZ Revenues Variance Analysis
Automotive Excluding AVTOVAZ Revenues Variance Analysis Change 2018 vs 2017: -€2,359m Sales to Price partners Volume Geographic Product mix mix +742 -946 -250 +20 Currency -140 -2,224 Others 53,530 +439 (1) 51,171 -0.5 pts +0.0 pt -0.2 pts +1.4 pts -1.8 pts -4.1 pts +0.8 pts -4.4% (million euros) 20
Slide 8: Operating Profit by Activity
2018 Operating Profit by Activity In million euros 2017 2018 Change Group operating profit 3,854 3,612 (1) -242 % of Group revenues 6.6% 6.3% -0.3pts o/w Automotive excl. AVTOVAZ 2,749 2,204 (1) -545 % of segment revenues 5.1% 4.3% -0.8pts o/w AVTOVAZ(2) 55 204 +149 o/w Sales Financing 1,050 1,204 +
Slide 9: Group Operating Profit Variance Analysis
Group Operating Profit Variance Analysis Change 2018 vs 2017: -€242m Raw Monozukuri G&A materials Mix / Net Volume & RCI Banque Enrichment partners & others +421 -59 Currency -356 +261 -329 +243 -572 AVTOVAZ(2) +149 3,854 (1) 3,612 COST GROWTH REDUCTION -€86m +€362m (million euros) 2017 2018 (1) Inc
Slide 10: Cost Reduction Analysis Excluding AVTOVAZ
Cost Reduction Analysis Excluding AVTOVAZ Change 2018 vs 2017: +€362m Monozukuri -83 +38 -134 -59 +600 (million euros) Purchasing Warranty R&D Manufacturing G&A & Logistics INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 10
Slide 11: Group Operating Profit Variance Analysis
Group Operating Profit Variance Analysis Change 2018 vs 2017: -€242m Raw Monozukuri G&A materials Mix / Net Volume & RCI Banque Enrichment partners & others +421 -59 Currency -356 +261 -329 +243 -572 AVTOVAZ(2) +149 3,854 (1) 3,612 COST GROWTH REDUCTION -€86m +€362m (million euros) 2017 2018 (1) Inc
Slide 12: Other Operating Income & Expenses
Other Operating Income & Expenses In million euros 2017 2018 Net restructuring costs -56 -306 Impairment of assets -52 -276 (1) Capital gain/loss on disposal of fixed assets +96 +68 Others -36 -111 Total other operating income & expenses -48 -625 (1) Including impairments of Argentinean assets for -
Slide 13: Financial Results
2018 Financial Results In million euros 2017 2018 Change Group Revenues 58,770 57,419 -2.3% Operating profit 3,854 3,612 (1) -242 % of Group revenues 6.6% 6.3% -0.3pts Other operating income & expenses -48 -625 (2) -577 EBIT 3,806 2,987 -819 (3) (2) Net financial income & expenses -391 -353 +38 Asso
Slide 14: Associated Companies
Associated Companies In million euros 2017 2018 Change NISSAN 2,791(1) 1,509 -1,282 Others 8 31 +23 Total associated companies 2,799 1,540 -1,259 H1 H2 805 704 (1) Including €1,021m due to US tax reform and Calsonic Kansei divestiture INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 20
Slide 15: Financial Results
2018 Financial Results In million euros 2017 2018 Change Group Revenues 58,770 57,419 -2.3% Operating profit 3,854 3,612 (1) -242 % of Group revenues 6.6% 6.3% -0.3pts Other operating income & expenses -48 -625 (2) -577 EBIT 3,806 2,987 -819 (3) (2) Net financial income & expenses -391 -353 +38 Asso
Slide 16: Automotive Net Financial Position
Automotive Net Financial Position Excl. AVTOVAZ Net tangible & intangible investments December 31, 2017: €3,209m* Change in WCR -4,675 December 31, 2018: €3,702m Cash flow +781 Net capex -2,471 4,386 Capitalized Dividends received R&D from Dividends -1,695 listed co. paid Operational AVTOVAZ free Le
Slide 17: New Vehicles Distribution Stock Excluding AVTOVAZ
New Vehicles Distribution Stock Excluding AVTOVAZ (In thousand units) 670 697 660 Total 618 603 613 622 564 588 440 Independent 423 424 399 411 357 dealers 343 330 303 327 340 285 273 236 Group 207 190 182 165 DEC'16 MAR'17 JUN'17 SEP'17 DEC'17 MAR'18 JUN'18 SEP'18 DEC'18 59 78 63 71 57 76 61 69 70
Slide 18: RCI Banque
RCI Banque 2017 2018 New financings (€bn) 20.6 20.9 Average performing assets (€bn) 39.6 44.4 Net banking income 4.11% 4.34% Cost of risk(1) (customer & dealer) -0.11% -0.33% Operating expenses -1.32% -1.27% Pretax income 2.72% 2.74% Operating profit (€m) 1,050 1,204 All percentages are calculated o
Slide 19: 2018 Key Achievements & 2019 Outlook
02 2018 Key Achievements 2019 Outlook Thierry Bolloré Chief Executive Officer INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 19
Slide 20: Strong Performance Maintained
Strong Performance Maintained Sales Operating profit margin Free cash flow 3.9m* 6.3% €607m +3.2% vs 2017 * 2018 including Jinbei and Huasong sales INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 20
Slide 21: Strong Adverse Environment
Strong Adverse Environment Collapse of Raw Materials WLTP Acceleration of some Markets Exchange Rates in Europe the Energy Mix Evolution INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 21
Slide 22: Group Performance without the Major Headwinds
2018 Group Performance without the Major Headwinds Group Revenues Group COP €bn 61 7.3% Headwinds Headwinds 58.8 57.4 6.6% 6.3% 2017 2018 2017 2018 INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 22
Slide 23: Achievements: European Leadership in B Segment
2018 Achievements: European Leadership in B Segment CLIO CAPTUR SANDERO INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 23
Slide 24: Achievements: Dacia Sales Record
2018 Achievements: DACIA Sales Record Sales record 511,622 Vehicles Registered Market Share Record 2.9% New DUSTER INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 24
Slide 25: Achievements: Kwid Success in South America
2018 Achievements: KWID Success in South America # 1 in its Segment Brazil & Argentina Market Share 8.7% 14.8% KWID INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 25
Slide 26: Achievements: AVTOVAZ Profitability
2018 Achievements: AVTOVAZ Profitability +15.6% Sales Record 20% Market Share #1 LADA Vesta 6.7% Operating Margin INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 26
Slide 27: Achievements: Electric Vehicle Profitability
2018 Achievements: Electric Vehicle Profitability 22.2% Market Share in Europe +37% Worldwide Sales 3% Group’s Revenues INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 27
Slide 28: Achievements: Cost Improvements
2018 Achievements: Cost Improvements €250 €2.4 Productivity Alliance m Gains bn Synergies INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 28
Slide 29: 2019 Risks and Opportunities
2019 Risks ▪ European demand 2019 Opportunities ▪ Product cadence ▪ Regulation implementation ▪ Pricing improvement ▪ Cost inflation ▪ Cost optimization INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 29
Slide 30: 2019 Outlook
2019 Outlook Europe Russia Brazil Within this context, Groupe Renault is aiming to: ▪ Increase revenues (at constant exchange rates and perimeter) stable >+3% +10% ▪ Achieve Group operating (w/o hard Brexit) margin around 6% ▪ Generate a positive Automotive Global Automotive Market* operational free
Slide 31: MTP Ambitions Confirmed
MTP Ambitions Confirmed 2017 - 2022 OBJECTIVES €70bn 7 % €4.2bn REVENUES COP SAVINGS INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 31
Slide 32: Questions & Answers
03 Questions & Answers INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 32
Slide 33: 2018 Financial Results Conference
2018 Financial Results Conference INVESTOR RELATIONS: FISCAL YEAR 2018 PRESENTATION FEBRUARY 14, 2019 PROPERTY OF GROUPE RENAULT 33