H117 RENAULT PRESENTATION · 2020. 10. 2. · 200 300 400 500 clio sandero duster c(k) ... 01.2....
Transcript of H117 RENAULT PRESENTATION · 2020. 10. 2. · 200 300 400 500 clio sandero duster c(k) ... 01.2....
PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – 2020 PRESENTATION
GROUPE RENAULT
October 2, 2020
Crédit Agricole CIB Auto Credit Day
PROPERTY OF GROUPE RENAULT 2INVESTOR RELATIONS – 2020 PRESENTATION
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 in the Renault Registration Document filed with the French Autorité des Marchés Financiers).
Actual results may differ materially from those projected or implied in these forward looking statements.
These forward looking statements are made as of the date of this presentation. Renault does not undertake to provide updates or
revisions, should any new statements and information be available, should any new specific events occur or for any other reason.
Renault makes no representation, declaration or warranty as regards the accuracy, exhaustiveness, adequacy, effectiveness and
genuineness of any statements and information contained in this report.
This information does not constitute an invitation to invest in shares or constitute or form a part of any offer for the sale or
subscription of, or any offer to buy or subscribe for, any securities or other financial instruments.
Further information on Renault can be found on Renault’s web site (www.group.renault.com), in the section Finance/Regulated
Information.”
PROPERTY OF GROUPE RENAULT 3INVESTOR RELATIONS – 2020 PRESENTATION
Renault in Brief00
PROPERTY OF GROUPE RENAULT 4INVESTOR RELATIONS – 2020 PRESENTATION
Renault – In Brief
▪ Founded in 1898, listed on the Paris NYSE Euronext, market
capitalization of €6,7 bn as of June 2020
▪ Renault created an Alliance with Nissan in 1999, joined by
Mitsubishi in 2016
▪ Strategic cooperation with Daimler since 2010
▪ ~180k employees worldwide in 134 countries
▪ 3,8 million vehicles sold (48% outside Europe), €55,5bn
Revenues in 2019
▪ 5 brands: Renault, Dacia, RSM, Lada, Alpine
▪ Renault brand is a leader in BEV in Europe
▪ The Group is a bond issuer via two entities:
rated BB+ neg by S&P / Ba2 neg by Moody’s
rated Baa2 neg by Moody’s / BBB neg by S&P
PROPERTY OF GROUPE RENAULT 5INVESTOR RELATIONS – 2020 PRESENTATION
Capital and Group Structure – 2019/12/31
PROPERTY OF GROUPE RENAULT 6INVESTOR RELATIONS – 2020 PRESENTATION
Renault Vehicle Sales in 2019
66%
21%
2%
0%
11%
Sales by Brand
Renault
Dacia
RSM
Alpine
Lada
JV
52%
12%
20%
11%5%
Sales by Region
Europe
Africe - Middle East- India - PacificEurasia
Americas
China
Including Jinbei&Huasong
7%
46%
25%4%
1%
0%
4%
10%
1%
1%
PC Veh - A
PC Veh - B
PC Veh - C
PC Veh - D
PC Veh - E
PC Veh - Others
LCV - Small Van
LCV - Heavy Van
LCV - Pick-up
LCV - Others
Sales by Segment433 410 387
316
208 184 175 150 128 126
0
100
200
300
400
500
Clio Sandero Duster C(K)aptur Logan Kwid Megane Granta Vesta Kadjar
Top 10 Model Sales (k units)
JV JV
PROPERTY OF GROUPE RENAULT 7INVESTOR RELATIONS – 2020 PRESENTATION
▪ Total funding : €8.7bn (2020-06-30)
Redemption schedule (2020-06-30)
Bonds, Banks & assimilated, excluding CP & redeemable
shares (in million euros)
Liquidity reserve: €16.8bn (2020-06-30)
▪ State-guaranteed credit facility : €5.0bn
▪ Available back-up lines : €3.5bn
▪ Cash & cash equivalents: €8.3bn
Automotive Division (excluding Avtovaz)
FX rates as of June 30th, 2020
Funding & Liquidity
525
899
243
952 948
1,750
750
500
2020 2021 2022 2023 2024 2025 2026 2027
Programs
▪ NEU CP €2.5bn, rated Bneg by S&P / NP by Moody’s
▪ EMTN €7bn, rated BB+neg by S&P / Ba2neg by Moody’s
▪ Shelf Registration Samurai ¥200bn, rated A-neg by R&I /
A-stable by JCR
PROPERTY OF GROUPE RENAULT 8INVESTOR RELATIONS – 2020 PRESENTATION
2o22 - COST REDUCTION PROJECT
01
PROPERTY OF GROUPE RENAULT 9INVESTOR RELATIONS – 2020 PRESENTATION
▪ The plan is our ticket to be back in the game
− Focus on cash generation from the operations
− More realistic and helpful Alliance approach
− Honest diagnostic on our situation and rightful answers
▪ Cost reductions will continue way beyond 2022
− Main industrial French footprint adjustment will happen after 2022
− The fruits of the Alliance new organization will kick in from 2022 onwards
− Platforms consolidation will be achieved by 2026
▪ Execution is the key
− “No-pain” social measures
− We have the financial means to execute it
EXECUTIVE SUMMARY
PROPERTY OF GROUPE RENAULT 10INVESTOR RELATIONS – 2020 PRESENTATION
AGENDA
Building a resilient performance 2o22 fixed cost reduction project01.1
PROPERTY OF GROUPE RENAULT 11INVESTOR RELATIONS – 2020 PRESENTATION
A CHANGE OF PRIORITIES: TOWARDS BETTER PERFORMANCE
OUTCOME
STRATEGIC FOCUS
Inability to generate
cashOver-sized structure
Size Innovation
Restore
competitiveness Profitability
over volume
Increase
efficiencyTrim down diversity
Optimize
organizationLeaner structure
Customer focused – leverage of Alliance – rigorous approach
REDUCED FIXED COSTS> €2bn by 2022 vs 2019
Performance
2020+
OUTCOME
2020-
2017
MINDSET
BUSINESSFOCUS
ACTIONPLANS
Fixed costs too high
PROPERTY OF GROUPE RENAULT 12INVESTOR RELATIONS – 2020 PRESENTATION
NEW LEADERSHIP
NEW MINDSET
FACT BASED
SELF-HELP
RESILIENCE
A NEW MINDSET FOR A BETTER RESILIENCE
PROPERTY OF GROUPE RENAULT 13INVESTOR RELATIONS – 2020 PRESENTATION
PARADIGM SHIFT AT RENAULT: PROFITABILITY OVER VOLUMEFIRST PRIORITY: REDUCE FIXED COSTS
LOWER DEPENDENCY
ON VOLUMES
&
IMPROVED
COMPETITIVENESS ENHANCED
PROFITABILITY
FIXED COSTS
2o22 PLAN FOCUS
ON GOING EFFORT
VARIABLE COSTS
PRICING
DISCIPLINE
-20%2019 - 2022
PROPERTY OF GROUPE RENAULT 14INVESTOR RELATIONS – 2020 PRESENTATION
2o22 PROJECT: OVER €2bn CASH COST REDUCTION VERSUS 2019
1. Execution of the € 2bn reduction plan does not rely on new Alliance projects or external factors like market growth
2. Includes production labor cost savings
~€700m
~€800m
~€650m
>€2bnin 2022 vs 2019
w/o CAPEX
PROPERTY OF GROUPE RENAULT 15INVESTOR RELATIONS – 2020 PRESENTATION
ENGINEERING: IMPROVED EFFICIENCY
~€800mCOST REDUCTION
in 2022 vs 2019
LINE-UP
▪ Optimization
▪ Reduced parts diversity
▪ Increased commonalization
ORGANIZATION
▪ Subcontractor base rationalization
▪ Increase in RTX1 utilization
▪ Rationalized structure
▪ Digitalization of validation
1. Regional Technical Centers
PROPERTY OF GROUPE RENAULT 16INVESTOR RELATIONS – 2020 PRESENTATION
DIVERSITY REDUCTION: VERSIONS, PARTS, POWERTRAINS
PRODUCT DEFINITION
Less part references1
per vehicle in plant
Powertrain
commonalization
within the Alliance
1. Part reference = part number.
-25%by 2022vs 2019
85%by 2022
+10 pts vs 2019
EN
GIN
EE
RIN
GLIN
E-U
P
OR
GA
NIZ
AT
IO
N
PROPERTY OF GROUPE RENAULT 17INVESTOR RELATIONS – 2020 PRESENTATION
FEWER PC1 PLATFORMS TO DEVELOP IN 2022 & MORE VEHICLES PER PLATFORM BY 2026
DEVELOPMENT COSTS DOWN VEHICLES PER PLATFORM UP
Active PF (requiring development)
Mature PF(already developed)
13 13
# platforms
> 600k units / year1 3 3 ALL
4
9
4
2019 20222019-2022
Platform transition
2022-2026
Platform evolution
5
4 4
2026
4
1. Passenger cars, platforms including partners’ volumes
EN
GIN
EE
RIN
GLIN
E-U
P
OR
GA
NIZ
AT
IO
N
PROPERTY OF GROUPE RENAULT 18INVESTOR RELATIONS – 2020 PRESENTATION
C/D
A/B
LCV
EV
2019 2020 2021 2022
K-ZE
Arkana
New Clio
Triber
New Captur
XM3
ZoeLCV
SIMPLIFICATION BUT NOT AT THE EXPENSE OF THE PRODUCT CADENCEE
NG
INE
ER
ING
LIN
E-U
P
OR
GA
NIZ
AT
IO
N
PROPERTY OF GROUPE RENAULT 19INVESTOR RELATIONS – 2020 PRESENTATION
WORK ORGANIZATION: LEVERAGE REGIONAL FOOTPRINT
ENGINEERING EFFICIENCY
Increased RTx1 use
40%RTx2019
60%RTx2022
Skills and resources
Focus France Core technologies
High added-valueTop 9
subcontractors2019
Top 4subcontractors
2022
Subcontractor base
rationalization
80%of business with
1. Regional Technical Centers
EN
GIN
EE
RIN
GL
INE
-UP
OR
GA
NIZ
AT
IO
N
PROPERTY OF GROUPE RENAULT 20INVESTOR RELATIONS – 2020 PRESENTATION
PRODUCTION: CAPACITY RIGHTSIZING, ENHANCED EFFICIENCY
~€650mCOST REDUCTION
in 2022 vs 2019
PERFORMANCE
& CAPACITY RIGHTSIZING
▪ Industry 4.0
▪ Lines/plants rightsizing
▪ Supply chain efficiency
▪ Labor savings
PROCESS ENGINEERING
▪ Performance “best in class”
▪ Subcontractors rationalization
▪ Digitalization of prototype process
▪ Maximization of 3D Printing
PROPERTY OF GROUPE RENAULT 21INVESTOR RELATIONS – 2020 PRESENTATION
INNOVATION: BOOSTING INDUSTRIAL PERFORMANCE
PERFORMANCE GAINS
2019
Competitiveness
& Industry 4.0
80Veh/employee
2022
91Veh/employee
+14%
Digitalization
prototype process
Maximization of 3D Printing
PR
OD
UC
TIO
NP
ER
FO
RM
AN
CE
FO
OT
PR
INT
PROPERTY OF GROUPE RENAULT 22INVESTOR RELATIONS – 2020 PRESENTATION
3,3
3,8
4,3
4,8
5,3
5,8
CAPACITY RIGHTSIZING
20222019 2024
Capacity3 shifts x 5 days
CapacityHarbour standard
Group Production 2019
1. including AVTOVAZ & JVs, w/o Renault Nissan Automotive India Private Limited
Groupe Renault capacity evolutionVehicle production and max capacity (in Million veh)1
3.8
3.6
4.0
3.3
5.5
6.0
4.9
~ -18% 2024 vs 2019
~ -10% 2022 vs 2019
PR
OD
UC
TIO
NP
ER
FO
RM
AN
CE
FO
OT
PR
INT
PROPERTY OF GROUPE RENAULT 23INVESTOR RELATIONS – 2020 PRESENTATION
GLOBAL RIGHTSIZING PROJECTCapacity rightsizing 2019-2024
Potentially impacted locations
PR
OD
UC
TIO
NP
ER
FO
RM
AN
CE
FO
OT
PR
INT
PROPERTY OF GROUPE RENAULT 24INVESTOR RELATIONS – 2020 PRESENTATION
ADAPTING OVERALL STRUCTURE TO RESTORE COMPETITIVENESS
~€700mCOST REDUCTION
in 2022 vs 2019
FIXED MARKETING EXPENSES
▪ Digitalization and media efficiency
▪ Media cost optimization
▪ Scope adjustments
G&A
▪ Cross function approach
▪ Optimization
▪ Downsizing
▪ Shared service centers expansion
SG
&A
PROPERTY OF GROUPE RENAULT 25INVESTOR RELATIONS – 2020 PRESENTATION
TIMELINE OF CASH IMPACTS
30%75%
100%
30%50%
20%
2020 2021 2022
% of the >€2bn fixed cost gains achieved versus 2019
€1,2bn cash restructuring costs timing
Ramp-up of Group cash savings
& implementation costs
PROPERTY OF GROUPE RENAULT 26INVESTOR RELATIONS – 2020 PRESENTATION
SCOPE ADJUSTMENTS: CAPITAL ALLOCATION OPTIMIZATION
>€500m
RRG GROUP
▪ Assets reduction (real estate
and working capital)
▪ Variable costs vs fixed costs
NEW FOCUS IN CHINA
▪ Transfer of DRAC shares
to Dongfeng
▪ Re-focusing on EVs and LCVs
Capital allocated tolow-return business
in 2022 vs 2019
PROPERTY OF GROUPE RENAULT 27INVESTOR RELATIONS – 2020 PRESENTATION
PEAK PASSED FOR INVESTMENT BUT NOT FOR DEPRECIATION
2021201920182015 2016 2017 2020 2022
Capex & R&D cash spending Amortization and depreciation in COP
Capex + R&D
in % of Group
Revenues
10.7% ~8%
6.0bn
4.7bn
2.9bn
3.7bn
-2.5 pts
RD&CAPEX
in 2022 vs 2019
+€0.8bn
DEPRECIATION
7.9%
PROPERTY OF GROUPE RENAULT 28INVESTOR RELATIONS – 2020 PRESENTATION
WRAP-UP: FIXED COST REDUCTION BY NATURE BY 2022
Labor costs~ 15 000 positions
worldwidepotentially impacted
Outsourcing optimization
Marketing & Others
PROPERTY OF GROUPE RENAULT 29INVESTOR RELATIONS – 2020 PRESENTATION
AGENDA
Alliance as a performance enhancer of
Groupe RenaultZoom on new projects and associated benefits
01.2
PROPERTY OF GROUPE RENAULT 30INVESTOR RELATIONS – 2020 PRESENTATION
ALLIANCE NEW COLLABORATION SCOPE BEYOND OUR FIXED COST REDUCTION PLAN
REGIONS(REFERENCE PLAYER BY
REGION)
NEW
CURRENT ALLIANCE SCOPE NEW ALLIANCE COLLABORATION SCOPE
BEYOND 2o22 PLANWITHIN 2o22 PLAN
PLATFORMS & POWERTRAINS
TECHNOLOGY
PURCHASING
SCOPE EXTENSION TO FULL VEHICLE
LE
AD
ER
/ F
OL
LO
WE
R
PLATFORMS & POWERTRAINS
SCOPE EXTENSION
LE
AD
ER
/ F
OL
LO
WE
RTECHNOLOGY
INCREASED STANDARDIZATION
NE
WP
AR
TN
ER
SH
IPS
PURCHASING
PROPERTY OF GROUPE RENAULT 31INVESTOR RELATIONS – 2020 PRESENTATION
SIGNIFICANT BENEFITS FROM NEW COLLABORATION SCOPE
Up to -40% Model investment1
LEADER FOLLOWEREXAMPLE EXAMPLE OF BENEFITS
New opportunities
for Fixed costs gains
Under
100$/kWh
VEHICLE
PURCHASING
REGIONS
B-SUVNext Generation
Renault reference playerEurope, Russia, Latam
EV BatteryStandardization: Geometry &
chemistry, design, carry-across
1. Model investment = R&D + Tooling
2. Core system of electric-electronic
Nissan
Development
TECHNOLOGY
Autonomous driving
Renault
Developmente-Body architecture2
PROPERTY OF GROUPE RENAULT 32INVESTOR RELATIONS – 2020 PRESENTATION
H1 2020 Results
02
PROPERTY OF GROUPE RENAULT 33INVESTOR RELATIONS – 2020 PRESENTATION
▪ COVID-19 crisis impact
▪ Market slowdown even before the COVID-
19 crisis
▪ Too high costs
▪ Adverse Forex & Raw materials
▪ Pricing discipline
▪ RCI resilience
Key Take-Aways
H1 : An unprecedented situation
▪ 2o22 plan project
▪ Electrified line-up
▪ RCI Bank & Services
▪ Liquidity reserves
Levers for recovery
PROPERTY OF GROUPE RENAULT 34INVESTOR RELATIONS – 2020 PRESENTATION
1,931
1,071
346218 206
90
1,257
624
297151 114 71
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Groupe Renault’s Sales H1 2020 vs H1 2019
Thousand units
(PC+LCV)
World Market Share:
International
TIV*
GROUP
4.0%
-26.4%
Global Europe EurasiaAfrica-ME-India-
PacificAmericas China
-28.3% -38.9% -14.1% -29.9% -37.7% -20.7%
-34.9% -41.8% -14.1% -30.8% -44.7% -21.1%
* PC+LCV including USA & Canada
PROPERTY OF GROUPE RENAULT 35INVESTOR RELATIONS – 2020 PRESENTATION
H1 2020 Financial Results
In million euros H1 2019 H1 2020 Change
Group Revenues 28,050 18,425 -34.3%
Operating profit 1,654 -1,203 -2,857
% of Group revenues 5.9% -6.5% -12.4 pts
Other operating income & expenses -133 -804 -671
EBIT 1,521 -2,007 -3,528
Net financial income & expenses -184 -214 -30
Associated companies -35 -4,892 -4,857
Current & deferred taxes -254 -273 -19
Net income 1,048 -7,386 -8,434
PROPERTY OF GROUPE RENAULT 36INVESTOR RELATIONS – 2020 PRESENTATION
H1 2020 Group Revenues
In million euros H1 2019 H1 2020 Change
Global unit sales (units) 1,931,052 1,256,658 -34.9%
Group revenues 28,050 18,425 -34.3%
o/w Automotive excl. AVTOVAZ 24,791 15,727 -36.6%
o/w AVTOVAZ(1) 1,557 1,089 -30.1%
o/w Mobility Services - 9 -
o/w Sales Financing 1,702 1,600 -6.0%
Q1 Q2
-21.3% -48.6%(1) AVTOVAZ net of eliminations
(2) New segment as of 01/01/2020
(2)
PROPERTY OF GROUPE RENAULT 37INVESTOR RELATIONS – 2020 PRESENTATION
28,050
18,425
-9,064
-468 + 9 -102
Groupe Renault
Currency
Volume
Geographicmix
Sales topartners
Others
-36.6%-29.6 pts +0.2 pts +0.4 pts +2.0 pts -1.5 pts -0.8 pts
Price
-7.3 pts
H1 2019 H1 2020
Productmix
24,791
-7,335
-1,804
+496+88+57
-204-362
(million euros)
Change H1 2020 vs H1 2019: -€9,064m
Automotive Excluding AVTOVAZ Revenues Variance Analysis
15,727
H1 2020H1 2019
Automotive
AvtovazMobility
Services RCI
PROPERTY OF GROUPE RENAULT 38INVESTOR RELATIONS – 2020 PRESENTATION
In million euros H1 2019 H1 2020 Change
Group operating profit % of Group revenues
1,6545.9%
-1,203-6.5%
-2,857-12.4 pts
o/w Automotive excl. AVTOVAZ% of segment revenues
9814.0%
-1,648-10.5%
-2,629-14.5 pts
o/w AVTOVAZ(1) 82 -2 -84
o/w Mobility Services(2) - -22 -22
o/w Sales Financing 591 469 -122
H1 2020 Operating Profit by Activity
(1) AVTOVAZ net of eliminations
(2) New segment as of 01/01/2020
PROPERTY OF GROUPE RENAULT 39INVESTOR RELATIONS – 2020 PRESENTATION
Currency
Volume & partners
Mix / Net EnrichmentG&A
RCI Banque& others
Monozukuri
Raw materials
AVTOVAZ(1)
-40 -203
-294
-84
1,654
+133
-201
-90
-2,078
Change H1 2020 vs H1 2019 : -€2,857m
H1 2019
H1 2020(million euros)
Group Operating Profit Variance Analysis
(1) AVTOVAZ net of eliminations
-1,203
PROPERTY OF GROUPE RENAULT 40INVESTOR RELATIONS – 2020 PRESENTATION
H1 2019 H1 2020
New financings (€bn) 10.9 7.7
Average performing assets (€bn) 46.7 48.1
Net banking income 4.35% 4.22%
Cost of risk (customer & dealer) -0.40% -0.99%
Operating expenses -1.36% -1.29%
Pretax income 2.62% 1.98%
Operating profit (€m) 591 469
(in percentage of average performing assets)
RCI Banque
PROPERTY OF GROUPE RENAULT 41INVESTOR RELATIONS – 2020 PRESENTATION
In million euros H1 2019 H1 2020
Restructuring costs -117 -166
Impairment of PP&E*, intangible assets and goodwill -12 -445
Capital gain/loss on disposal of assets +3 -153
Others -7 -40
Total other operating income & expenses -133 -804
Other Operating Income & Expenses
* Property, Plant and Equipment
PROPERTY OF GROUPE RENAULT 42INVESTOR RELATIONS – 2020 PRESENTATION
In million euros H1 2019 H1 2020 Change
NISSAN -21 -4,817 -4,796
Others -14 -75 -61
Total associated companies -35 -4,892 -4,857
Associated Companies
Q1 Q2
-3,573 -1,244
PROPERTY OF GROUPE RENAULT 43INVESTOR RELATIONS – 2020 PRESENTATION
Net tangible& intangibleinvestments
-2,543
Capitalized R&D
Net capex
-1,421
Operational free
cash flow
Cash flow*
Changein WCR
Dividendspaid
Net Change
Dividends received
fromlisted co. Financial
investments & others
December 31, 2019: +€1,734m
June 30, 2020: - €4,998m
(million euros)
Leased vehicles -464 Forex IFRS 16 impact
AVTOVAZFCF*
Automotive Net Financial Position
Excl. AVTOVAZ
-3,829
+22
+110
-6,375
0
-912
-427
-6,732
+77
-7
-658Restructuring
-135
* w/o restructuring
PROPERTY OF GROUPE RENAULT 44INVESTOR RELATIONS – 2020 PRESENTATION
660588
622 656 630603 599
660
547
236
285
182
300
218
290
157
270
189
424
303
440
356412
313
442390
358
JUN'18 SEP'18 DEC'18 MAR'19 JUN'19 SEP'19 DEC'19 MAR'20 JUN'20
(In thousand units)
New Vehicle Distribution Stock Excluding Avtovaz
Group
Independentdealers
Total
Number of days of sales (backward)
61 69 70 76 65 75 68 109 107
PROPERTY OF GROUPE RENAULT 45INVESTOR RELATIONS – 2020 PRESENTATION
2o22 Cost Reduction Project on Track
2020 perspective in line with cost
reduction objective for the year (30%)H1 2020
ENGINEERING
SG&A
PRODUCTION
€433m
✓
1- Execution of the €2bn reduction plan does not rely on new Alliance projects or external factors like market growth
2- Includes production labor cost savings
PROPERTY OF GROUPE RENAULT 46INVESTOR RELATIONS – 2020 PRESENTATION
▪ E-TECH
▪ Pricing management
▪ Government incentives impact
▪ Pace of market recovery
▪ Content costs
▪ Covid-19 evolution
H2 2020 Risks & Opportunities
Risks Opportunities
PROPERTY OF GROUPE RENAULT 47INVESTOR RELATIONS – 2020 PRESENTATION
FY 2019 Results
03
PROPERTY OF GROUPE RENAULT 48INVESTOR RELATIONS – 2020 PRESENTATION
SOLID ASSETS: INTERNATIONAL PRESENCE
BrazilEurope Russia India
ARKANA KWID
SANDERO
All-new CLIO TRIBER
PROPERTY OF GROUPE RENAULT 49INVESTOR RELATIONS – 2020 PRESENTATION
EVSales +25%
PROPERTY OF GROUPE RENAULT 50INVESTOR RELATIONS – 2020 PRESENTATION
LCVRecord sales
PROPERTY OF GROUPE RENAULT 51INVESTOR RELATIONS – 2020 PRESENTATION
DaciaRecord sales
PROPERTY OF GROUPE RENAULT 52INVESTOR RELATIONS – 2020 PRESENTATION
SOLID ASSETS: RCI ROBUSTNESS
Service contracts
Penetration rate
PROPERTY OF GROUPE RENAULT 53INVESTOR RELATIONS – 2020 PRESENTATION
Solid assets: Alliance – CMF-B
PROPERTY OF GROUPE RENAULT 54INVESTOR RELATIONS – 2020 PRESENTATION
Solid assets: Alliance – CROSS MANUFACTURING
Maubeuge
PROPERTY OF GROUPE RENAULT 55INVESTOR RELATIONS – 2020 PRESENTATION
3,884
1,921
748562 437
217
3,754
1,946
751453 425
180
Groupe Renault’s sales 2019 vs 2018
Thousand units
(PC+LCV)
World Market Share: 4.25% (+0.1 pts)
International
TIV*
GROUP
-7.9%
-2.9% w/o Iran
Global Europe Eurasia Africa-ME-India-Pacific Americas China
-4.8%-3.8% w/o Iran
+1.2% -4.4% -8.5%-3.8% w/o Iran
-5.6% -8.2%
-3.4%-0.8% w/o Iran
+1.3% +0.4% -19.3%-1.6% w/o Iran
-2.9% -17.2%
2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019
* PC+LCV including USA & Canada
PROPERTY OF GROUPE RENAULT 56INVESTOR RELATIONS – 2020 PRESENTATION
2019 Group revenues
In million euros 2018 2019 Change
Global unit sales (units) 3,884,273 3,753,723 -3.4%
Group revenues 57,419 55,537 -3.3%
o/w Automotive excl. AVTOVAZ 51,171 49,002 -4.2%
o/w AVTOVAZ(2) 3,040 3,130 +3.0%
o/w Sales Financing 3,208 3,405 +6.1%
H1 H2
-7.7% -0.4%
(1)
(1) Including Jinbei & Huasong(2) AVTOVAZ net of eliminations
PROPERTY OF GROUPE RENAULT 57INVESTOR RELATIONS – 2020 PRESENTATION
Currency
VolumeGeographic
mix
Sales topartners
Others
-4.2%
-1.4 pts -0.2 pts 0 pt +1.7 pts -0.7 pts -0.2 pts
Price
-3.4 pts
Change Automotive excluding Avtovaz revenues
2019 vs 2018: -€2,169m
2018 2019
Productmix
51,171
-738-1,747
+853
+10-91
-88
49,002
-368
Automotive Excluding Avtovaz
Groupe Renault2018 2019
Automotive
RCI Avtovaz
-2,169
+90 +19755,537
57,419
Revenues variance analysis
(million euros)
PROPERTY OF GROUPE RENAULT 58INVESTOR RELATIONS – 2020 PRESENTATION
In million euros 2018 2019 Change
Group operating profit % of Group revenues
3,6126.3%
2,6624.8%
-950-1.5 pts
o/w Automotive excl. AVTOVAZ% of segment revenues
2,2044.3%
1,2842.6%
-920-1.7 pts
o/w AVTOVAZ(1) 204 155 -49
o/w Sales Financing 1,204 1,223 +19
2019 Operating profit by activity
H1 H2
4.0% 1.3%
(1) AVTOVAZ net of eliminations
PROPERTY OF GROUPE RENAULT 59INVESTOR RELATIONS – 2020 PRESENTATION
Currency
Volume & partners
Mix / Net Enrichment
G&A
RCI Banque& others
Monozukuri
Raw materials
AVTOVAZ(1)
+547
-587
-74 -493,612
2,662
+121
-2
-324-329
Change 2019 vs 2018: -€950m
-582
2018 2019
Group operating profit variance analysis
(1) AVTOVAZ net of eliminations
(million euros)
PROPERTY OF GROUPE RENAULT 60INVESTOR RELATIONS – 2020 PRESENTATION
+458
+53
+106 -70 +121
G&AManufacturing
& Logistics
R&DWarrantyPurchasing
Monozukuri
Cost reduction analysis excluding Avtovaz
Change 2019 vs 2018: +€668m
+458
+53
+106+121
-70
(million euros)
PROPERTY OF GROUPE RENAULT 61INVESTOR RELATIONS – 2020 PRESENTATION
RCI Banque
2018 2019
New financings (€bn) 20.9 21.4
Average performing assets (€bn) 44.4 47.4
Net banking income 4.34% 4.31%
Cost of risk(1) (customer & dealer) -0.33% -0.42%
Operating expenses -1.27% -1.26%
Pretax income 2.74% 2.80%
Operating profit (€m) 1,204 1,223
All percentages are calculated on average performing assets(1) As of 2018, Cost of risk reflects the application of IFRS 9 Standards
PROPERTY OF GROUPE RENAULT 62INVESTOR RELATIONS – 2020 PRESENTATION
2019 Financial results
In million euros 2018 2019 Change
Group Revenues 57,419 55,537 -3.3%
Operating profit 3,612 2,662 -950
% of Group revenues 6.3% 4.8% -1.5 pts
Other operating income & expenses -625 -557 +68
EBIT 2,987 2,105 -882
Net financial income & expenses -353 -442 -89
Associated companies 1,540 -190 -1,730
Current & deferred taxes -723 -1,454 -731
Net income 3,451 19 -3,432
PROPERTY OF GROUPE RENAULT 63INVESTOR RELATIONS – 2020 PRESENTATION
In million euros 2018 2019
Net restructuring costs -306 -236
Impairment of assets -276 -229
Capital gain/loss on disposal of fixed assets +68 -15
Others -111 -77
Total other operating income & expenses -625 -557
Other operating income & expenses
PROPERTY OF GROUPE RENAULT 64INVESTOR RELATIONS – 2020 PRESENTATION
In million euros 2018 2019 Change
NISSAN 1,509 242 -1,267
Others 31 -432 -463
Total associated companies 1,540 -190 -1,730
Associated companies
H1 H2
-21 +263
PROPERTY OF GROUPE RENAULT 65INVESTOR RELATIONS – 2020 PRESENTATION
Net tangible& intangibleinvestments
-5,848
Capitalized
R&D
-1,925
Net capex
-2,921
Operationalfree
cash flow
Cash flow
Changein WCR
+1,829
Dividendspaid Net Change
Incl.AVTOVAZ
Dividendsreceived
fromlisted co. Financial
investments& others
(million euros)
-484
Currency& IFRS 16 impact
AVTOVAZFCF
Automotive Net Financial Position
Excl. AVTOVAZ
+1,027
4,144
+28
+153 +625 -1,120
-912
-293 -1,335-700
December 31, 2018 : €3,702m
January 1st, 2019 : €3,069m*
December 31, 2019 : €1,734m
+802Leased
Vehicles
-1,002
* IFRS 16 impact at transition date -€633m
LeasedVehicles
PROPERTY OF GROUPE RENAULT 66INVESTOR RELATIONS – 2020 PRESENTATION
678
896
243
950 947
1,750
750
500
2020 2021 2022 2023 2024 2025 2026 2027
Auto Division liquidity reserves (Dec. 2019): €15.8 billionCash & cash equivalents: €12.3 billion
Available back-up lines: €3.5 billion
Liquidity
Redemption schedule – Renault SA Bonds, Banks & assimilated, excluding CP & redeemable shares (in million euros)
PROPERTY OF GROUPE RENAULT 67INVESTOR RELATIONS – 2020 PRESENTATION
(In thousand units)
New vehicle distribution stock excluding Avtovaz
Group
Independentdealers
Total
Number of daysof sales (backward)
613
697660
588622
656 630603 599
190
340
236285
182
300
218
290
157
423
357
424
303
440
356412
313
442
DEC'17 MAR'18 JUN'18 SEP'18 DEC'18 MAR'19 JUN'19 SEP'19 DEC'19
57 76 61 69 70 76 65 75 68
PROPERTY OF GROUPE RENAULT 68INVESTOR RELATIONS – 2020 PRESENTATION
2020Challenges
▪ CAFE
▪ Enrichment and regulation costs
▪ Capex + R&D spendings
▪ China
▪ CAFE
▪ Enrichment and regulation costs
▪ Capex + R&D spendings
▪ China
2020Challenges
2020Levers
▪ Electrification
▪ Pricing policy
▪ Cost management
▪ Alliance’s new paradigm
▪ Renewed leadership
PROPERTY OF GROUPE RENAULT 69INVESTOR RELATIONS – 2020 PRESENTATION
2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE
All-new ZOE
PROPERTY OF GROUPE RENAULT 70INVESTOR RELATIONS – 2020 PRESENTATION
BEV
HEV
PHEV
2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE
2019 2020 2021-2022
New vehicle New version
All-New CAPTURE-TECH plug-in
MEGANEE-TECH plug-in
All-New CLIOE-TECH
1st CMF-EV
TWINGO Z.E.All-New ZOE
Ren
au
ltE
-TE
CH
10
0%
ele
ctr
ic
Dacia Urban City car
PROPERTY OF GROUPE RENAULT 71INVESTOR RELATIONS – 2020 PRESENTATION
2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE
0 g
120 g
Other ICE
HEV + DIESEL
BEV + PHEV
LPG
2019 2020
EV
PHEV
HEV
DIESEL
LPG
PETROL
10% BEV + PHEV
~30% HEV + DIESEL
~10% LPG
Passenger Cars Europe Mix
CO2 level*
* Average CO2 emission per km per vehicle (NEDC-BT)
PROPERTY OF GROUPE RENAULT 72INVESTOR RELATIONS – 2020 PRESENTATION
GROUPE RENAULT ROADMAP TO 2020 CAFE TARGET
2018NEDC
NEDC-BT Mix ICEimprovement
& EV
2019 NEDC-BT
Electrification ICE & Mix management
Supercredit& Phase-in
2020NEDC-BT
112 g
118 g
93 g
PROPERTY OF GROUPE RENAULT 73INVESTOR RELATIONS – 2020 PRESENTATION
2020 performance lever: pricing policy improvement
All-new CLIO All-new CAPTUR All-new ZOE
All-new CAPTUR
E-TECH plug-in
All-new CLIO
E-TECH
PROPERTY OF GROUPE RENAULT 74INVESTOR RELATIONS – 2020 PRESENTATION
2020 performance lever: cost management
Optimization of
industrial footprint
and sub-contractors
Review of
Make-or-Buy
strategy
Review of
non-core assets
Implementation of
Leader-Follower
strategy
PROPERTY OF GROUPE RENAULT 75INVESTOR RELATIONS – 2020 PRESENTATION
Renault Investors Relation Contact
Thierry Huon
Investor Relations Director
+33 1 76 84 53 09
Christophe Rochelle
Investor Relations
+33 1 76 83 05 13
Investor relations internet site: http://group.renault.com/finance
Clémentine de Quatrebarbes
Investor Relations
+33 1 76 84 60 89
PROPERTY OF GROUPE RENAULT 76INVESTOR RELATIONS – 2020 PRESENTATION