Renault Sa · EURONEXT:RNO
Renault Sa — Investor Day (November 2023)
89 slides from Renault Sa's investor day presentation, Nov 15, 2023
Slide 1: Ampere: The European Challenger
_C A P I TA L M A R K E T DAY _1 5 .1 1 . 2 3 _ PA R I S AMP E RE : T H E E U RO P EAN C HAL L E NG E R T E C H E X C E L L E N C E A N D O P E R AT I O N A L F O C U S TO D E M O C R AT I Z E E V
Slide 2: Disclaimer
D I S C L A I M E R Certain information included in this presentation are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future busi
Slide 3: Agenda
AG ENDA 01 A T EC H G ROWT H STO RY 02 BO R N CO M P E TI TI VE 03 E S G N AT I V E 04 LOW R I SK & H I G H R E TU R N F I NA NC I A L P RO F I L E
Slide 4: Resurrection Renovation Revolution
3-step plan launched in 2021 RESURRECTION Achieved in advance Back in the game by cutting costs and shifting to value over volume RENOVATION Already secured Renew and enrich our line-ups, feeding brand’s long-term profitability REVOLUTION Time to accelerate Redirect our business model to position as
Slide 5: Renault Group, the next gen auto company
R E N AU LT G RO U P, T H E N E X T G E N AU TO CO M PA N Y A MP E R E P OW E R A L P IN E MOBILIZ E N E U T RA L Power + + + + EV & software ICE & hybrid High-end Financing, Circular energy & mobility economy PC EV PC ICE & Hybrid LCV HORS E Tier-1 supplier of ICE & Hybrid powertrain technologies
Slide 6: Today is all about Ampere
T O D AY I S A L L A B O U T A M P E R E A MP E R E P OW E R A L P IN E MOBILIZ E N E U T RA L Power + + + + EV & software ICE & hybrid High-end Financing, Circular PC EV PC ICE LCV HORS E Tier-1 supplier of ICE & Hybrid powertrain technologies
Slide 7: A Tech Growth Story
_ C A P I TA L M A R K E T S D AY _15.11 . 23 _ PA R I S 01 A T EC H G ROWTH STO RY
Slide 8: European EV market: the place to be
EUROP EAN EV MAR KET T H E P L AC E TO B E EV adoption over time in Europe, China, USA E U C HIN A USA % 1 00 High growth ~25% p.a.1 European EV market 2023-30 75 Already happening EU EV launches surpass ICE launches 50 for the 1st time in 2023 EV adoption in Europe from 12 to 16% (9m 2022 vs. 9m 20
Slide 9: Ampere, designed to play in the big venues
A M P E R E , D E S I G N E D T O P L AY IN THE BIG VENUES B-SEGMENT ~35%+ >75% of the EV European C-SEGMENT ~40%+ market volume market addressed market volume by Ampere 1 out of 10 1 out of 6 Leader cars on European market1 cars on retail market for small and are from Renault Group are from Renault
Slide 10: Conquering tech leadership
CO N Q U E R I N G TEC H L EADERSHIP Software Hardware INTELLIGENT AND EVOLUTIONARY COST AND ENERGY EFFICIENT
Slide 11: The software defined vehicle
T H E S O F T WA R E D E F I N E D V E H I C L E A SM A RT P H O NE O N WH E E L S Constantly APPLICATIONS connected to the cloud DIGITAL TWIN (CLOUD) OFF BOARD ON BOARD IN-CAR SERVICES (APPS) CAR OPERATING SYSTEM HARDWARE (E.G. CHIPS)
Slide 12: A centralized and connected future
A CENTRALIZED AND CONNECTED FUTURE Tomorrow Today Software Defined Vehicle Centralized E&E1 architecture + Distributed E&E1 architecture Connected to the Cloud Note: (1) Electric & Electronic
Slide 13: SDV winning 3-0
SDV WINNING 3 - 0 R&D cost avoidance Residual value Customer service through scalability through upgradability through connectivity Estimated > +5 pts > +10 pts €1.5bn in residual value1 ambition for aftersales retention2 Note: Comparison metrics vs. non-SDV (1) Estimated additions to resale value;
Slide 14: Unique in-house software expertise
U NI Q U E I N- H O USE S O F T WA R E E X P E RT I S E Hardware Tech engineers partners 1,800 software and system engineers Of collaboration Of the total Software Europe team 6 with our hardware 50% engineering workforce acquired in 2017 YEARS engineers of Ampere
Slide 15: Starting from pole position: OpenR Link
S TA RT I N G F RO M P O L E P O S I T I O N O P E NR L I NK The best In-Vehicle Infotainment (IVI) system: O p e n R L I NK • Google Automotive services • Google Maps • Recognized by the press and our clients • Already in Megane E-Tech and Scenic E-Tech In-house development with
Slide 16: Partnering with the best building Ampere team
PA RT N E R I N G W I T H T H E B E S T B U I L D I N G A N A ( mpere) T E A M External stakeholders APPLICATIONS DIGITAL TWIN (CLOUD) OFF BOARD PA RT N E RS ON BOARD IN-CAR SERVICES (APPS) + OPEN ECOSYSTEM OPERATING SYSTEM HARDWARE PLATFORM
Slide 17: A win/win software value chain
A W I N / W I N S O F T WA R E VA L U E C H A I N OWNE RSH I P M O D E L External Ampere stakeholders Provide apps & APPLICATIONS enrich SDV content Co-create cloud software DIGITAL TWIN (CLOUD) Own IP & car data, and vehicle digital twin hosted in Europe OFF BOARD ON BOARD In-house IN-CAR SERVICES
Slide 18: A unique approach to match customer needs
A U N I Q U E A P P ROAC H TO M ATC H C U S TO M E R N E E D S OPEN SOLUTION CULTURAL ~6m Android Flexibility & software engineers customization Europe for Europe HORIZONTAL APPROACH Estimated Cost to develop approximately 2x cheaper 2x faster development vs. Western OEMs, and, on par with Chinese N
Slide 19: One mission: democratize EV in Europe
O N E M I SS I O N D E M O C R AT I Z E E V I N E U RO P E EV vs ICE price gap1 ~€45k ~€30k AMBITION TO ACHIEVE EV-ICE PRICE PARITY AHEAD OF COMPETITION E V IC E Source: Company information Notes: (1) 2023 prices, based on top selling B & C-segment models in EU5
Slide 20: First off the blocks with EV native platforms
F I R S T O F F T H E B LO C KS W I T H 2 E V N AT I V E P L AT F O R M S Advantages of EV-native Ampere’s benefit vs. multi-energy platform from its EV-native platforms MULTI-ENERGY EV-NATIVE AMPR SMALL B-segment platform 1st native car platform Cost effective by design Global scale Fit-for-purpose
Slide 21: Democratize EV: 40% cost reduction in one generation
D E M O C R AT I Z E E V: 4 0 % C O S T R E D U C T I O N I N O N E G E N E R AT I O N V E H I C LE COS TS K € 1st Gen Co ntin C-seg EV uou scost -40% red uct ion 2nd Gen C-seg EV 2 02 3 2024 2025 2026 2 0 2 7/ 2 0 2 8 Y E A RS Source: Company information
Slide 22: A clear roadmap with a systemic approach
A CLEAR ROADMAP WITH A SYSTEMIC APPROACH -40% Holistic EV system approach with radically re-thought EV technology Car efficiency as central pillar of our cost reduction 1 ST G E N EV EN GIN E VEHICL E PROD UCTIVITY 2 ND G E N T O D AY B AT T E RY & P L AT F O R M & O P E R AT I O N A L ( 2027 +) E -
Slide 23: Cost reduction right here, right now
COST REDUCTION RIGHT HERE, RIGHT NOW Scale 2x sales volume increase Technology Renault 5 battery with one layer less New launches & During lifecycle Engineering >20% less parts Megane E-Tech to Renault 5
Slide 24: Price positioning: C-segment towards ICE parity
P R I C E P O S I T I O N I N G : C - S E G M E N T TOWA R DS I C E PA R I T Y PRI C E 1 (€ ) M AR K ET VO LU M E BY P R IC E RAN GE1 ( KU ) 53 - 62K 1st Gen C-seg EVs - Hybrid TCO parity EV top-seller positioning 2nd Gen C-seg EVs - ICE price parity (average price) 4 3 - 53 K € 48k Megane E-Tech Sc
Slide 25: Price positioning: B-segment on par with ICE
P R I C E P O S I T I O N I N G : B - S E G M E N T O N PA R W I T H I C E PRI C E 1 (€ ) M AR K ET VO LU M E BY P R IC E RAN GE1 ( KU ) 4 8 - 58 K EV top-seller positioning Renault 4 & Renault 5 priced attractively (average price) vs. expected European B-seg EV sellers 38 -48 K € 44k 29- 3 8 K Rena
Slide 26: Emotional and competitive product pipeline
EMOTIONAL AND COMP ETITIVE P RO D U C T P I P E L I N E 1 ST G E N E R AT I O N 2 ND G E N E R AT I O N B-SEGMENT Lifecycle beyond 2030 Renault 5 Renault 4 2024 2025 New cars introduction C-SEGMENT Megane E-Tech Scenic E-Tech Replacement of 1st Gen 2022 2024 Megane E-Tech and Scenic E-Tech Hitting t
Slide 27: Megane E-Tech: Ampere's STEV and technology showcase
M E G A N E E -T E C H : A M P E R E ’ S 1 ST E V A N D T E C H N O LO GY S H OWCAS E “Car of the year” awards in 7 EU countries #1 C-EV in France (sales volume) 2.2% Entry price1 of EV market share in Europe €38k+ Conquer new customers >50% in Europe and 60% in France High-end customers Range1 ~70%
Slide 28: Scenic E-Tech: the game-changing family car
S TA RT O F S A L E S : Q 1 2 0 2 4 S C E N I C E -T E C H T H E G A M E - C H A N G I N G FA M I LY C A R TCO at par with Hybrid cars Entry price1 Sustainability design Up to ~95% of materials are recyclable ~€40k+ Up to ~24% of recycled materials Solarbay technology Range1 panoramic sunroof made o
Slide 29: Future Renault 5 & Renault 4
F U T U R E R E N A U LT 5 & R E N A U LT 4 Building 1st B-segment Forerunner Excellent on successful cars based in humanized performance heritage on EV-native technology Outstanding ~14m unit sales platform Leveraging software range over 6 decades1 in Europe2 and chips Sources:: (1) Company informa
Slide 30: Renault 5: an EV with a soul
S TA RT O F S A L E S : Q 3 2 0 2 4 ( R E V E A L I N Q 1 ) R E N A U LT 5 A N EV W I T H A S O U L Entry price1 Outstanding press reaction after first platform test drive ~€25k+ ~80 millions of PR value created since concept reveal in Jan. 21 Range1 V2G capabilities Up to 400km unlocking customer b
Slide 31: Renault 4: an EV with a purpose
S TA RT O F S A L E S : 2 0 2 5 R E N A U LT 4 A N EV W I T H A P U R P O S E Entry price1 To be announced soon Charismatic sporty design Range1 revived main features of the original Up to 400km Same next gen technology as Renault 5 Range recovered in 30 mins1 Memorable look & feel Up to 280km urban
Slide 32: Ampere tech & management platform: welcome to our partners
A M P E R E T E C H & M A N AG E M E N T P L AT F O R M W E LCO M E TO O U R PA RT N E RS ICE External LCV partners EV technology Potential Software technology Potential Manufacturing capabilities _ Potential E.g. Electric Engine Multiple models for Europe
Slide 33: The next urban breakthrough
T H E N E X T U R BA N BR E A K TH RO U G H Decarbonization driver 75% less CO2 emissions vs. European ICE over its lifecycle Best-in-class efficiency 10 kWh/100km Accessible mobility Entry price <€20k (before subsidies) <€100 per month for our clients Production in Europe
Slide 34: From niche to mainstream
F RO M N I C H E TO M A I N S T R E A M S U R F I N G T H E N E W WAV E 2nd wave EV mainstream adopters E V ADO PT ION “Peace of mind” 1st wave Early adopters Trust S TAT U S T E C HN O LO GY & E N T RE P RE N E U RS H I P E X P E C TAT I O N S H I F T OV E R T I M E
Slide 35: Beyond the product: we make the difference
B E YO N D T H E P RO D U C T WE M A K E TH E D IF F ER ENC E Along the customer journey Explore Buy Use Renew Extensive dealership Dense aftersales Upgradability network network through SDV 98% Brand awareness1 Customized financial Home and public Refinancing services solutions charging solutions E
Slide 36: An established & experienced dealer network
A N E S TA B L I S H E D & E X P E R I E N C E D D E A L E R NE T WO R K 4,700 Dealership sites ~70% 30,000 EV trained professionals of 2nd Gen EV Complementing the sales customers prefer Digital offer experience from day1 with car purchase 100% online capability at dealership1 +40pp. vs. 1st Gen Lo
Slide 37: Local and high-quality aftersales service
LO CA L A N D H I G H - Q UA L I T Y A F T ER SA L E S S E RV I C E Distance to closest <10km2 Renault service point ~70% for most of our customers of auto customers rank dealer proximity as top 3 criteria for repair shop choice1 4.8 stars Ampere services in Google rating ready at Day 1 Sources: (1)
Slide 38: Comprehensive charging solutions
CO M P R E H E N S I V E C H A RG ING SO LU TI O NS 100% accessible Enabling public charging 100% charging need coverage: ~60% • Access to 500k charging stations • Supercharger infrastructure at dealer facilities of prospective 2nd wave EV customers Affordable expect charging Simplifying private cha
Slide 39: Flexible financing, solutions from days to years
F L E XI BL E F I NA NC I NG , S O L U T I O N S F RO M DAYS TO Y E A R S Personalized Extensive range of solutions from on-demand mobility 2x solutions subscription to long-term leasing more likely for leasing to be the preferred solution for consumers Financing penetration choosing EV over ICE 1 8
Slide 40: Capturing value over the life cycle of the car
C A P T U R I N G VA L U E OV E R T H E L I F E CYC L E OF T H E CA R Revenue streams today… … and expansion towards tomorrow Other services Financial Financial solutions Insurance solutions Insurance OTA Predictive updates maintenance NEW CAR NEW CAR SALES SALES Leasing Leasing Subscription Sub- sc
Slide 41: Born Competitive
_ C A P I TA L M A R K E T S D AY _15.11 . 23 _ PA R I S 02 BO R N CO M P E TI TI VE
Slide 42: EV and software: a different sport
E V A N D S O F T WA R E A D I F F E R E N T S P O RT 70% of the costs of the materials are linked to EV components 2x more semiconductors Raw materials are different -30% number of parts vs. ICE Software based functionalities
Slide 43: A uniquely fit for purpose organization
A U N I Q U E LY F I T F O R P U R P O S E O RG A N I Z AT I O N EV & Software focus Agile Efficient 11,000 people Software/ Accountability decoupled Hardware 3,500 engineers Speed of decision 2x vs. average Focused organization & execution auto OEM Operations 60% Revenue per employee expected 3x pu
Slide 44: Fair transition at the core of Ampere
FAIR TRANSITIO N AT T H E C O R E O F A M P E R E Reskilled & upskilled Diverse & inclusive Outreach hiring programs for ReKnow University income beneficiaries • Electric mobility • Circular economy 300 new hires for 2024 • Software, cybersecurity & data 100% of employees will be trained Train for f
Slide 45: Ampere leadership team
A M P E R E L E A D E RSH I P T E A M Ampere CEO L. de Meo Powertrain & Industrial Revenue Mgt. COO CFO People & & Customer EV Engineering Operations Workplace Experience J. Recasens V. Piquet P. Brunet L. Biondo A. Malak C. Stein ESG Legal Software Procurement Communication Artificial & Systems Int
Slide 46: Data driven company
DATA D R I V E N C O M PA N Y Vehicle Industry Supply chain Sales & After sales Corporate Development & customer care Functions O N E DATA L A K E + A I L AY E R C O N N E C T E D D I G I TA L P L AT F O R M Accelerate Spread Break Reduce Our Decisions Transparency Silos Costs
Slide 47: AI native auto OEM
A I N AT I V E AU TO O E M Vehicle In-Vehicle Logistics Production distribution functionalities Add relevant picture Add relevant picture Add relevant picture Add relevant picture Optimization Better customer Evolution overtime of routes Predictive satisfaction & supply Customization Efficiency in m
Slide 48: Ampere Galaxy: the leading European EV & software ecosystem
A M P E R E G A L AXY: T H E L E A D I N G E U RO P E A N E V & S O F T WA R E E CO SYS T E M EV value chain Software value chain Renault Group
Slide 49: Low risk battery sourcing with smart capital allocation
LO W R I S K B AT T E RY S O U RC I N G W I T H S M A RT C A P I TA L A L LO C AT I O N B AT T E RY Recycled Raw PCAM/ Cell & Module Casing, BMS2, Materials Materials CAM1 Production Assembly Competitiveness Securing Competitiveness Competitiveness Competitiveness Securing Multiple partnerships Part
Slide 50: Battery production made in Europe
B AT T E RY P RO D U C T I O N M A D E I N E U RO P E European Union Douai Dunkirk Add relevant picture Add relevant picture Add relevant picture • Historical partnership • Start of Production: 2024 • Start of Production: 2025 • Renault Group among the first • 9GWh • Long-term partnership to supply
Slide 51: Best-in-class e-motor from Europe
B E S T- I N - C L ASS E - M OTO R F RO M E U RO P E E-POW ERT RAIN Pioneer rare-earth free e-motor E-Motor Power & Reducer Electronics Competitiveness Competitiveness Powertrain “One Box” Electrically Excited Synchronous Motor technology Advanced power semi- conductors Innovative TARGETING 70% IN-H
Slide 52: Local-for-local industrial footprint
LO CA L- FO R- LO CA L I N D US T R I AL F O OT P R I N T ELECTRICITY Ready Day 1 & fully invested DUNKERQUE Battery Gigafactory 400ku/year capacity scalable to RUITZ 620ku/year by 2028 Electric components & battery casing High-tech manufacturing DOUAI 9 hours per unit Car assembly & battery Gigafac
Slide 53: ElectriCity net zero carbon in 2025
E L E C T R I C I T Y N E T Z E RO CA R B O N I N 2 0 2 5 WO R L D R ECO R D Ambition: ~90% C O 2 E M I S S I O N S I N T C O 2E / V E H I C L E 1 decrease ElectriCity ambition in 2025: Net Zero Achieved through emissions ELEC T R I C I T Y U T I L I Z AT I O N P RO C E SS R E N E WA B L E LOW compe
Slide 54: From suppliers to partners
F RO M S U P P L I E RS TO PA RT N E RS CO O P E R AT I O N H O R I ZO N TA L € Suppliers Co-invest Co-create Co-develop + R AT I O N A L I Z AT I O N Target -40% Fewer suppliers but deeper and in number of suppliers longer relationships SHORTER LOWER CAPITAL LOWER COSTS LOWER EMISSIONS DEVELOPMENT
Slide 55: Sustainability: a pre-requisite throughout the supply chain
S U S TA I N A B I L I T Y: A P R E - R E Q U I S I T E T H RO U G H O U T T H E S U P P LY C H A I N ESG-certified Transparency suppliers • Human rights • Traceability from mine • Ethics & Governance to battery by 2025 • Environment • Responsible raw materials sourcing FULLY SUSTAINABLE SUPPLY CHAI
Slide 56: Ampere will never walk alone
A M P E R E W I L L N E V E R WA L K A LO N E Complete financing capabilities Mobility & Energy services Circular economy (incl. insurance) (incl. charging) (recycling and refurbishing) • One of the largest captive • Full coverage of the usage • The first 360° circular economy in Europe value chain
Slide 57: A competitive edge on circular economy
A CO M P E T I T I V E E D G E O N C I RC U L A R E CO N O M Y S U P P LY PROD U C TION USAGE EN D O F LIF E Parts Closed loop Production scrap Vehicle life Vehicle Battery remanufacturing Battery recycling materials sourcing recycling extension recycling 2nd life Battery repair STEEL with partners
Slide 58: Sometimes legacy is good
S O M E T I M E S L E G ACY I S G O O D € 1 5 B N C O S T AV O I D A N C E Procurement Investments Brand Distribution in Day 1 assets network R&D & + Capex Estimated ~€15bn + ELECTRICITY cost ~5-10% Established product 98% ~4.7k avoidance + + + purchasing cost line-up of four cars brand awareness de
Slide 59: A complementary and optimized operating model
A C O M P L E M E N TA RY & O P T I M I Z E D O P E R AT I N G M O D E L D E SI G N & INDUSTRIAL M ARKETIN G USAG E EN D - O F - LIF E D E V ELOPMENT O P E R AT I O N S & SALES • Upper-body • Chassis manufacturing • Dealers’ network • Aftersales & services • Battery recycling components • Financing
Slide 60: Clear business flows, both ways
C L EA R BUSINESS F LOWS, B OT H WAYS Focus on EV & Provide non-EV & software content non-exhaustive software specific content Software & EV components Non-EV components Selected contract manufacturing Supply chain operations CAFE credits + Distribution & financing COMPLEMENTARITY BETWEEN ENTITIES F
Slide 61: Key principles for agreements between Renault Group and Ampere
K E Y P R I N C I P L E S F O R AG R EEMENTS B E T W E E N R E N A U LT G R O U P A N D A M P E R E Ampere/Renault Competitiveness Clear escalation Group arm’s length through clear process to solve 1 Business continuity 2 relationship, with 3 4 performance metrics potential conflicts accountability
Slide 62: ESG Native
_ C A P I TA L M A R K E T S D AY _15.11 . 23 _ PA R I S 03 E S G N AT I V E
Slide 63: ESG in 3D
ESG I N 3 D Ambition Decarbonization Net Zero ElectriCity by 2025 beyond electrification Net Zero Ampere by 2035 Transparent & traceable value chain from mine to cell by 2025 1/3 women Fair transition in top management1 from day 1 Targeting zero gender pay gap by 2024 Closed loops on battery mineral
Slide 64: Ampere net zero carbon in 2035
A M P E R E NET ZERO CA R BO N IN 2 03 5 Ambition: ~90% C O 2 E M I S S I O N S I N T C O 2E / V E H I C L E 1 decrease Decarbonization with low carbon energy Objective Up to -30%3 ElectriCity & up to -35% Net Zero on batteries in 2025 by 2030 Ampere ambition in 2035: Net Zero Achieved through emiss
Slide 65: ESG rating: nobody does it better
E S G R AT I N G N O B O DY D O E S I T B E T T E R S U S TA I N A LY T I C S C O R P O R AT E E S G A S S E S S M E N T S C O R E O F A M P E R E V S . P E E R S 3 WO RS T ME DIUM 12.8 Sustainalytics R I S K Rating 2 0 - 30 (Low risk)1 EV LOW R I S K 1 0 -2 0 12.8 17 21.4 24.1 24.6 25.2 26.8 28.1 2
Slide 66: Ampere Board of Directors
A M P E R E BOA R D O F D I R EC TO RS ACCOUNTABLE AUTONOMY COMPLIANT WITH AFEP-MEDEF Future composition of the Board of Directors [ ] Renault Director 6 1 Nissan Director [ ] Luca de Meo 11 Directors 4 Independent Directors Chairman >1/3 Independent Director 3 dedicated committees of the Board of D
Slide 67: Low Risk & High Return: Financial Profile
_ C A P I TA L M A R K E T S D AY _15.11 . 23 _ PA R I S 04 LOW R I SK & H I G H R E TU R N F I NA NC I A L P RO F I L E
Slide 68: Breakeven operating margin in 2025
B R E A K E V E N O P E R AT I N G M A RG I N I N 2 0 2 5 Breakeven target 2025 Negative operating margin 2024 VO LU M E PRICE / D IS T R IBU T IO N VA R I A B L E F IX E D OTHER 1 M IX / COSTS COST COST E NR ICH M E NT O P T I M I Z AT I O N Note: (1) Other includes CAFE, Aftersales, sales of softw
Slide 69: Double digit operating margin by 2031
D O U B L E D I G I T O P E R AT I N G M A RG I N BY 2 0 31 10%+ Breakeven 2025 VO LU M E PRICE / D IS T R IBU T IO N VA R I A B L E F IX E D OTHER 1 2031 M IX / COSTS COST COST E NR ICH M E NT O P T I M I Z AT I O N Note: (1) Other includes CAFE, Aftersales, sales of software and sales of new servi
Slide 70: Capturing EV market growth with a focused line-up
CA P T U R I N G EV MAR KET G ROWTH W I T H A F O C U S E D L I N E - U P 2 ND G E N E R AT I O N 1 ST G E N E R AT I O N 2 0 2 7 & B E YO ND Market share UNITS P.A. ~45K ~300K ~1M objective: ~10%1 A-SEGMENT Twingo Lifecycle 2026 beyond 2030 B-SEGMENT Renault 5 Renault 4 2024 2025 New cars introduct
Slide 71: Accelerated revenue growth
AC C E L E R AT E D R E V E N U E G RO W T H +30% revenue CAGR ~€25bn+ ~5% ~€10bn+ ~20% ~€2.8bn Sales to partners of which 35% EV and ~50% 65% ICE in 2025 2023 2 0 2 5 2031 # MODELS # MOD EL 1 4 7 Net vehicles revenue Sales to partners Aftersales, new services & other
Slide 72: Enabling profitable affordability
E N A B L I N G P RO F I TA B L E A F F O R DA B I L I T Y Democratizing EV means affordability… …but cost reduction protects margins EV’s on pricing par with ICE Focus of portfolio mix on B & C-segments P R IC E Contribution margin improvement Focus on retail customers COS TS 2023 2031
Slide 73: Lean and holistic distribution model
L E A N & H O L I STI C D I S T R I B U T I O N M O D E L Focus on most Proximity to Competitive profitable channels our clients network >50% Customers: ~30% retail focus 75% reduction target of of the European EV market network fixed costs in <1,000k radius1 LEAN DISTRIBUTION COST STRUCTURE Source:
Slide 74: Cost killers have been trained here
COST K I L L E RS H AV E B E E N T R A I N E D H E R E ~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 EV ENG INE VEHIC L E P RO D U C TIVITY 2 ND G E N T O D AY ( 2027
Slide 75: Battery cost step-change
B AT T E RY C O S T S T E P - C H A N G E as the most valuable component of the BOM1 Fit-for-purpose cell chemistry Design to cost (LFP / LMFP) ~-50% & design to energy (Cobalt less) Improved energy KE Y LEV ERS Battery cost per vehicle & powertrain integration Cell-to-pack / cell-to-chassis with hi
Slide 76: The journey already started: key battery improvements
T H E J O U R N E Y A L R E A DY S TA RT E D K E Y B AT T E RY I M P ROV E M E N T F E AT U R E S 95Wh/l1 200Wh/l1 240Wh/l1 270Wh/l1 >300Wh/l1 3 00 • Pack-less design • Advanced cell W H / l 20 0 • Increased module format & cobalt- • Higher cell footprint free chemistry • Improved cell energy densit
Slide 77: Increased efficiency and smart integration on powertrain
INC R EASED EFFIC IENCY AND SMART I N T E G R AT I O N O N P O W E RT R A I N Improved battery-to-wheel efficiency ~-25% 92% at highway condition (+2pts above benchmark) Less energy for same range KE Y LEV ERS Powertrain cost +6% highway range; +10% WLTP; per vehicle 5-6kWh savings Up to date powert
Slide 78: Simpler platform with improved thermal management
S I M P L E R P L AT F O R M W I T H I M P ROV E D T H E R M A L M A N AG E M E N T Parts reduction ~-25% ~20 – 30% less parts KE Y LEV ERS Platform cost per vehicle High modularity Batteries ranging from 50kWh up to 100kWh Optimized thermal management
Slide 79: Upper body parts reduction and improved aerodynamics
U P P E R B O DY PA RTS R E D U C T I O N A N D I M P ROV E D A E RO DY N A M I C S ~-15% Parts reduction ~20-30% less parts KE Y LEV ERS Upper body cost per vehicle Improved aerodynamics +17% additional highway range ~14kWh savings
Slide 80: Unique ecosystem to drive operational excellence
U NI Q U E ECOSYSTE M TO D R I V E O P E R AT I O N A L E X C E L L E N C E Maximizing Ampere’s ecosystem OV E R A RC H I N G O P E R AT I O N A L ~-50% 40% reduction in logistic costs E XCELLENCE in manufacturing and logistics Localization 40% reduction in suppliers Best-in class hours per vehicles
Slide 81: Fixed cost born lean
F I X E D COST B O R N L E A N Fixed costs1 over time Manufacturing At scale from Day 1 20 years Development KE Y DRI VE RS of EV experience % O F R EVE NU E Fixed marketing ~2% of revenue expenses due to strong brand SG&A More efficient than most OEMs2 2024 2 031 Notes: (1) Includes fixed manufactu
Slide 82: Smart capital allocation
S M A RT C A P I TA L A L LO C AT I O N Well-invested capacity Open partnership approach >400ku Fully Secured capacity operational battery day 1 plant on day 1 capacity 80% Investments Raw materials already made in first 4 models secured Development Platforms AmpR Small with best-in already AmpR Med
Slide 83: Rapid normalization of R&D and capex intensity
R A P I D N O R M A L I Z AT I O N O F R& D CA P E X I N T E N S I T Y Ampere investments (% of revenue) Capital efficiency framework R&D and Capex1 ~25% D&A Well-invested capacity Continued R&D efficiency initiatives Fast trajectory to 8% normalized investment levels 2 0 24 LO N G T E R M TA RG E T
Slide 84: Near-term FCF breakeven and strong cash conversion
N E A R-T E R M F C F B R E A K E V E N A N D S T RO N G CAS H CO N V E R S I O N in medium to long-term 80%+ FCF conversion1 Estimated €1.5bn cumulative negative free cash-flow from 2024 to H1 2025 <0 Breakeven FCF 2024 CHANGE IN CHANGE IN CHANGE IN FCF 2025 FCF 2031 E BITDA 2 W O R K I N G C A P I
Slide 85: Financial targets
F I N A N C I A L TA RG E T S 20 23 2 0 2 5 2 0 31 ~€2.8bn €10bn+ €25bn+ Revenue CAGR +30% 2023-2031 Operating profit - Breakeven 10%+ % margin (target by 2030) - Breakeven 80%+ FCF2 FCF conversion1 FULL TRANSPARENCY AND ACCOUNTABILITY ATTRACTIVE AND PREDICTABLE FINANCIAL RETURNS LOW-RISK PROFILE AN
Slide 86: The benefits of Ampere's listing
T H E BENEF ITS O F A M P E R E ’S L I ST I NG Capital raise to accelerate Unique European entry point growth and profitability into fast-growing EV Culturally right: transparence Immediate & lower risk delivery Benefits for and accountability Attractions for Ampere New investors & Attractive return
Slide 87: Renaulution to boost value creation
R E N AU LU T I O N TO B O O S T VA L U E C R E AT I O N Renaulution is self-financed and each business has a distinct value proposition for Renault Group shareholders A MP E R E P OW E R A L P IN E MOBILIZ E N E U T RA L + Power + + + Profitable growth Cash Internationally Recurring service Sustain
Slide 88: Ampere: The European Challenger... ready to go
A M P E R E : T H E E U RO P E A N C H A L L E NG E R … R E A DY TO G O AG I L E M I N D S E T, E S TA B L I S H E D W I T H S C A L E , D E S I G N E D TO D E L I V E R 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 publicl
Slide 89: Ampere: The European Challenger
_C A P I TA L M A R K E T DAY _1 5 .1 1 . 2 3 _ PA R I S AMP E RE : T H E E U RO P EAN C HAL L E NG E R T E C H E X C E L L E N C E A N D O P E R AT I O N A L F O C U S TO D E M O C R AT I Z E E V
Ampere (Renault Group) — Investor Day (November 2023) on 6ix