Renault Sa · EURONEXT:RNO

Renault Sa — Avtovaz — Corporate Update (January 2017)

20 slides from Renault Sa's corporate update, Jan 16, 2017

  1. Slide 1: AVTOVAZ Call with Financial Analysts

    AVTOVAZ Call with Financial Analysts Nicolas MAURE / Dr. Stefan MAUERER CEO / CFO 16.01.2017

  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 and can lead to

  3. Slide 3: AVTOVAZ Overview

    AVTOVAZ Overview Moscow International Automobile Salon 2016

  4. Slide 4: 50-years History

    AVTOVAZ 50-years History 1966/1970 VAZ 2101 2016 LADA XRAY AVTOVAZ Call with Financial Analysts 16.01.2017 4

  5. Slide 5: Group: Key information

    AVTOVAZ Group: Key information 408 467 Cars & KDs produced 20.1% MOSCOW 331 AVTOVAZ Representative office sales points 30 IZHEVSK LADA-Izhevsk countries plant TOGLIATTI AVTOVAZ 2015: 176.5 B-Rub (2.6 B-Euro) Head-office & Togliatti plants 2016: estimated T/O > 2015 51 527 p. AVTOVAZ Call with Financ

  6. Slide 6: LADA product portfolio

    LADA product portfolio LADA Granta LADA Kalina LADA Priora LADA Vesta LADA XRAY LADA Largus LADA 4x4 Granta Sedan Kalina Hatchback Priora Sedan Vesta Sedan XRAY Largus 5- or 7-seats 4x4 3-doors Launched Launched Nov, 2015 Feb, 2016 Granta Liftback Kalina Wagon Largus Cross 4x4 Urban 3-doors 5- or 7-

  7. Slide 7: Russian PC Market Achievements 2016 – LADA Market Share

    Russian PC Market Achievements 2016 – LADA Market Share Top-10 brands, К units / MS % Top-10 models, К units 2016 MS vs. 2015, % LADA 20.1% 266.3 Hyundai Solaris Hyundai Solaris 90.4 LADA LADA +2.2% Renault Kia 11.3% 149.6 LADA Granta LADA Granta 87.7 Toyota Skoda Hyundai 10.9% 145.3 Kia Rio Kia Rio

  8. Slide 8: AVTOVAZ: Togliatti and Izhevsk plants overview

    AVTOVAZ: Togliatti and Izhevsk plants overview Togliatti Izhevsk Capacity* 650 K vehicles per year Capacity* 113 K vehicles per year 3 Vehicle Lines** + 1 Vehicle Line + Powertrain & Components Lines Components Lines 312 K cars*** in 2016 96 K cars*** in 2016 * Harbour standard (3 760 h per annum) *

  9. Slide 9: Mid-Term Plan (approved by BoD on Dec 6th, 2016)

    Mid-Term Plan (approved by BoD on Dec 6th, 2016)

  10. Slide 10: Russian Passenger Car Market Outlook

    Russian Passenger Car Market Outlook Passenger cars per 1 000 people (2015) Age of Russian car fleet (> 40 Mio cars in 2015) 1 000 US (PC+LCV) 800 UK Germany 600 France 5-10 years Poland 28% >10 years US (PC) 400 46% Russia Czech Republic South Korea 200 Turkey Mexico <5 years Ukraine 0 26% India Ru

  11. Slide 11: Mid-Term Plan storyline

    AVTOVAZ Mid-Term Plan storyline BACK ON TRACK in two phases 1 2 2016-2019 2020-2026 Rebound through: Profitable growth through: • Robust 20% PC MS in Russia • Complete product/market portfolio regeneration • Strong cost optimization • Full utilization of capacities • Deep supplier localization (3 ve

  12. Slide 12: Transformation of LADA brand good opinion from customers

    Transformation of LADA brand good opinion from customers 66 63 62 61 59 55 Competitor 1 50 50 48 45 44 43 Competitor 2 38 36 36 35 33 35 Competitor 3 33 30 Competitor 4 30 27 28 27 27 Competitor 5 23 17 16 15 12 12 11 5 5 4 Competitor 6 3 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2

  13. Slide 13: LADA vehicles export sales growth projection

    LADA vehicles export sales growth projection (incl. SKD & CKD) K-units p.a CIS Other countries 180 150 120 export countries in 2017 90 60 30 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 AVTOVAZ Call with Financial Analysts 16.01.2017 13

  14. Slide 14: LADA Product Plan directions

    LADA Product Plan directions 2 New models 5 New models 5 New models 4 Facelifts 2 Facelifts 5 Facelifts 2017 - 2019 2020 - 2022 2023 - 2026 AVTOVAZ Call with Financial Analysts 16.01.2017 14

  15. Slide 15: Monozukuri cost optimization key levers

    AVTOVAZ cost optimization key levers • New working scheme with suppliers Monozukuri • Production optimization (including Components) • Productivity improvement • Creation of Industrial park AVTOVAZ Call with Financial Analysts 16.01.2017 15

  16. Slide 16: 2016 – 2019 AVTOVAZ Mid-Term Plan: strong performance boost to secure recovery

    2016 – 2019 AVTOVAZ Mid-Term Plan: strong performance boost to secure recovery THROUGH HEADWINDS BACK ON TRACK 2012 - 2015 2016 – 2019 Drop to the level of 2011 > 50% growth from 2016 to 2019 REVENUE impacted by Russian market drop supported by Russian market recovery MARKET SHARE RF Drop down to 16

  17. Slide 17: Production volume forecast (cars + KDs)

    Production volume forecast (cars + KDs), k-units LADA Alliance and partners 1 000 3 shifts capacity (4 800 h per annum) 800 2 shifts capacity (“Harbour” standard, 3 760 h per annum) 600 400 200 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 AVTOVAZ Call with Financial Analysts 16

  18. Slide 18: AVTOVAZ Mid-Term Plan roadmap

    AVTOVAZ Mid-Term Plan roadmap Revenue, B-RUB 100 COP before non-recurring items, B-RUB 700 80 60 600 40 20 5% - 500 (20) x2 (40) 2023 2014 2015 2016 2017 2018 2019 2026 400 Free cash-flow, B-RUB 300 +50% 50 40 200 30 20 10 - 100 (10) (20) (30) (40) - (50) 2014 2015 2016 2017 2018 2019 2023 2026 2017

  19. Slide 19: Conclusions

    Conclusions • Full leverage of Russian market recovery with minimum 20% passenger cars market share through: • full renewal of LADA vehicle line-up • transformation of LADA brand image • Export push in CIS and other selected regions of the World • Strong cost optimization through: • deep localizatio

  20. Slide 20: Q&A

    Q&A

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