MID-TERM PLAN 2017 - 2022
OCTOBER 6TH, 2017 1 C . G H O S N NEW MTP OUTLINE & KEY ASSETS
PAR T 0 1 GLOBAL PAR T 02 FOCUS
T. BOLLORÉ SCALE & COMPETITIVENESS J.-C. KUGLER EUROPE TECHNOLOGY D. LE VOT RUSSIA PRODUCT LINE-UP A. GUPTA LCV T. KOSKAS SALES & MARKETING G. NORMAND ELECTRIC VEHICLE
S. MUELLER REGIONS G. DE FICCHY RCI BANK AND SERVICES
C. DELBOS FINANCE
C . G H O S N CONCLUSION
OCTOBER 6TH, 2017 2 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 documentation registered within the French financial markets regulation authorities) and can lead to a difference between the exact figures and those given or deduced from said information and statements. 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, sufficiency, adequacy, effectiveness and genuineness of any statements and information contained in this report. Further information on Renault can be found on Renault’s web site (www.group.renault.com), in the section Finance / Regulated Information.
OCTOBER 6TH, 2017 3 2 SCALE & COMPETITIVENESS TECHNOLOGY PRODUCT LINE-UP
THIERRY BOLLORÉ CHIEF COMPETITIVE OFFICER
OCTOBER 6TH, 2017 4 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP INTRODUCTION
SCALE-UP TECHNOLOGIES
COMPETITIVENESS PRODUCT LEVERS & SERVICES
QUALITY & CUSTOMER SATISFACTION
OCTOBER 6TH, 2017 5 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP SHARED PLATFORMS COVERING ALL SEGMENTS
COVERAGE RATIO OVER 80% OF GROUPE RENAULT SALES BY 2022
D SEG. Price C SEG.
CMF-EV 100%
New EV 75% CMF-CD B SEG. New B CMF-B HS 50% CMF-B LS 25% Sales on CMF platforms CMF-A A SEG. Width 0% 2016 2019 2021 2022 CMF: Common Module Family LS: Low specifications HS: High specifications
OCTOBER 6TH, 2017 6 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP DUAL PLATFORM SPECIFICATION TO EFFICIENTLY COVER ALL NEEDS
PLATFORM “SWAPABILITY” ENABLING LIMITED DEVELOPMENT COSTS
Same specification with different skin High Spec.
Clio Captur Specification adapted Same skin to local needs with different specification
Duster Kaptur Access Spec. Upselling
OCTOBER 6TH, 2017 7 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP COMPETITIVENESS OF WHOLE SUPPLY BASE
STANDARDIZATION DEEPER LOCALIZATION PANEL OPTIMIZATION
HIGHER COMMONALITY 100% of non visible parts covered in 2019 by Alliance modules Localization boost within Drive the Future
STRONGER TOP LEVEL IN BRICs AVERAGE TURNOVER SCALE EFFECT FOR MAJOR SUPPLIERS -20% +7pts +30% Cost on common CMF parts Local rate in Russia DEVELOPMENT WITH NEW TECHNOLOGY PARTNERS
CMF: Common Module Family
OCTOBER 6TH, 2017 8 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP ENHANCING ENGINEERING SKILLS AND CAPACITY WHILST BOOSTING EFFICIENCY
EXTENDED INTERNAL SKILLS ALLIANCE COMPANY (Headcounts)
SOFTWARE R&D SYNERGIES
~30% ~50% Ambition +25% x2 R&D CAPACITY INCREASE
2016 2019 2022 -5% R&D HOURLY RATE • Alliance key partners • New skills • Enhanced sharing to boost innovation • Renault software lab • Subcontractors • R&D regional centers • Start-up / new tech
OCTOBER 6TH, 2017 9 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP INDUSTRIAL COMPETITIVENESS TARGETING BENCHMARK LEVELS…
VEHICLE PLANTS ENGINE PLANTS Vehicles per headcount Powertrain per headcount
100 800 710 651 73 66 INDUSTRY INDUSTRY AVERAGE AVERAGE 2016 2016
2016 2017 2022 2016 2017 2022 +50% +20% VEHICLE EFFICIENCY POWERTRAIN EFFICIENCY
OCTOBER 6TH, 2017 10 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP ... THANKS TO ACCELERATED COMPETITIVENESS PLAN AND FLEXIBILITY
CONTINUOUS COMPETITIVENESS HIGH ASSET IMPROVED ASSET PLAN FUELED UTILIZATION WORKFORCE FLEXIBILITY BY INDUSTRY 4.0 RATE EFFICIENCY
• €400m investment • From 96% to over 120%* • Over 80% of our workforce • Flexible lines to face • >€500m gain per year covered by agreements powertrain market from 2020 • Highly skilled and adaptable demand workforce
* Harbour • 30% production variability
OCTOBER 6TH, 2017 11 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP DIGITAL TRANSFORMATION TO IMPROVE EFFICIENCY AND ENHANCE BUSINESS
PRODUCTIVITY & EFFICIENCY CUSTOMER JOURNEY ALL ALONG THE VALUE CHAIN & EXTENDED OFFER
Data-driven development Creation of Renault Digital
Collaboration with suppliers
Investment of ~€150m per year Industry 4.0 • Core connected car features
• Business optimization Digital skills: 700 Digital Analytics, customer targeting hirings & digital trainings • Business development for 3,000 Renault • New mobility operations employees Traceability & reactivity
>€500m per year >€500m per year COST IMPROVEMENT ADDITIONAL CONTRIBUTION FROM 2020 FROM 2020
OCTOBER 6TH, 2017 12 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP FULL EV AS STRATEGIC PRIORITY, ELECTRIFIED SOLUTIONS DRIVEN BY CAFE REQUIREMENTS
20% BEV OFFER
50% ELECTRIFIED OFFER
-50% ON DIESEL OFFER
CAFE: Corporate Average Fuel Efficency
OCTOBER 6TH, 2017 13 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP ACCELERATION OF CONNECTIVITY THROUGH ALLIANCE SOLUTIONS
1. CARCENTRIC
ALLIANCE CONNECTED CLOUD
ALLIANCE infotainment system (A-IVI)
ALLIANCE connectivity module (A-IVC or a-dongle)
B2B 3. SAVINGS 2. MARKETING PARTNERS
• Full connectivity across all segments • From 30% to 100% connected in key markets • Services acceleration based on Alliance connected cloud • All new projects from 2019 • Expand FOTA* with reinforced cyber security • New Clio & C/D segment
*FOTA: Firmware Over The Air
OCTOBER 6TH, 2017 14 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP AUTONOMOUS DRIVING TO MATCH CUSTOMER EXPECTATIONS
15 AD MODELS FROM 2019
AD MASS MARKET AD GRADUAL NEW BUSINESS EXPANSION OPPORTUNITY
• Single-lane level 2 from 2019 • Multi-lane level 3 from 2021 • Robo-vehicle by 2022 • Starting with New Clio and Espace • Multi-lane level 4 from 2022 • Starting with new EV
AD: Autonomous Drive
OCTOBER 6TH, 2017 15 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP SCALE, COMPETITIVENESS & TECHNOLOGY FUEL MONOZOKURI
MONOZUKURI TARGET SCALE-UP €4.2bn 2017-2022
COMPETITIVENESS INCLUDING R&D LEVERS STRONG PUSH +€400m IN FIRST 3 YEARS (2017-2019) TECHNOLOGIES FIXED COST CONTROL
OCTOBER 6TH, 2017 16 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP A PRODUCT LINE-UP TAILORED FOR PROFITABLE GROWTH 21 NEW MODELS
SUSTAIN EXPAND BUILD ON INNOVATE BUSINESS BUSINESS EV LEADERSHIP FOR ALL
OCTOBER 6TH, 2017 17 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP SUSTAIN BUSINESS
18 RENEWALS 8 SUVs
OCTOBER 6TH, 2017 18 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP BUSINESS EXPANSION BASED ON STRONG LOCAL FOUNDATION
CHINA INDIA IRAN
7 launches (incl. 3 EV) 4 launches (incl. 1 EV) 4 launches
NEW PARTNERSHIPS NEW PARTNERSHIPS
JINBEI IDRO
NEGIN
OCTOBER 6TH, 2017 19 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP REINFORCING EV LEADERSHIP THANKS TO MASSIVE ELECTRIFICATION
OVER 8 FULL EV 12 ELECTRIFIED COVERING ALL SEGMENTS
• 50% of our line-up electrified 5 new models 3 renewals • All electrified components common within Alliance • Unique affordable PHEV / HEV technology
OCTOBER 6TH, 2017 20 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP NEW CONCEPTS… FOR ALL
COMPACT MPV* C-SUV EV ACCESS New bodytype
* MPV: Multi Purpose Vehicle
OCTOBER 6TH, 2017 21 SCALE & COMPETITIVENESS / TECHNOLOGY / PRODUCT LINE-UP ALL KEY ASSETS TO MEET INDUSTRY CHALLENGES AND CUSTOMER EXPECTATIONS
SHARP COMPETITIVENESS PLAN LEVERAGING THE ALLIANCE SCALE
COMPETITIVE TECHNOLOGY PORTFOLIO
PRODUCT LINE-UP & SERVICES TAILORED FOR PROFITABLE GROWTH
OCTOBER 6TH, 2017 22 3 SALES & MARKETING
THIERRY KOSKAS EXECUTIVE VICE PRESIDENT, SALES & MARKETING
OCTOBER 6TH, 2017 23 SALES & MARKETING FURTHER IMPROVE SALES & MARKETING EFFICIENCY
GROUP CHANNEL MIX RESIDUAL VALUES FIXED MARKETING PRICING POWER EXPENSES
GROUP MARKET SHARE RV 36M/90K km G5 GLOBAL EUROPE PER CHANNEL, PC, G5 44% 42% 12,5 13 40% 101,2 9,6 9,7 OVER 25% 38% 100,7 100,5 7,3 7,3 7,6 7,9 PRODUCTIVITY 36% 99,4 34% 2016 2022 32% 30% DEMO, STRental FLEET RETAIL 2015 2017 2015 2016 2022 2015 2016 2022 SELF REG 2016 2017 Renault Basket Competitors
Growth in non tactical Renault 2nd in basket Stabilized and will not Above the market today channels thanks to sustainable increase and will further improve line-up attractivity
G5: France, Spain, Germany, UK, Italy
OCTOBER 6TH, 2017 24 SALES & MARKETING FURTHER IMPROVE SALES & MARKETING EFFICIENCY
KEY LEVERS
PRODUCT LINE-UP
BRANDS
CUSTOMER JOURNEY TRANSFORMATION
OCTOBER 6TH, 2017 25 SALES & MARKETING A CLEAR, SIMPLE & DISTINCTIVE DEFINITION FOR OUR CORE BRANDS
PASSION FOR LIFE ATTRACTIVE CONFIDENCE, VALUE FRENCH DESIGN QUALITY CARS AT & ENERGETIC & EASY LIFE THE BEST PRICE DESIGN
Mainstream Access Maximum of 1 access brand per market (Dacia or Lada)
OCTOBER 6TH, 2017 26 SALES & MARKETING ALIGN EVERY PRODUCT & SERVICE WITH THE BRAND AND BOOST BRAND VALUE
FRENCH DESIGN EASY LIFE TOP 70 BRAND INTERBRAND* VALUE BEST GLOBAL BRANDS
BRAND TOP 5 IN 2/3 OF OUR • Warm and sensual • Connected OPINION TOP 20 MARKETS • Innovative • Intuitive • Consistent globally • Services
* Note: Renault value is calculated by Interbrand but Renault will not be included in published Best Global Brands report as not present in North America
OCTOBER 6TH, 2017 27 SALES & MARKETING EASY JOURNEY: A SEAMLESS, PERSONALISED, MULTI CHANNEL CUSTOMER EXPERIENCE
BEST LEVEL DEALER NETWORK EASY DIGITAL TRANSFORMATION CONNECT TOP 3 IN CUSTOMER SATISFACTION
100% OF RENAULT CONNECTED IN KEY MARKETS
• New global web • Seamless online • Over 30 new connected €300m platform by 2019 / in store services ADD. TURNOVER • Sales on leads x2 • 800 new format stores • Data FROM CONNECTED SERVICES • One single app • Development of new • Mobility services activities & services • Partners
OCTOBER 6TH, 2017 28 SALES & MARKETING FURTHER IMPROVE SALES & MARKETING EFFICIENCY
HIGHER BRAND VALUE
CUSTOMER JOURNEY TRANSFORMATION
SALES & MARKETING EFFICIENCY
OCTOBER 6TH, 2017 29 4 REGIONS
STEFAN MUELLER CHIEF PERFORMANCE OFFICER
OCTOBER 6TH, 2017 30 REGIONS LOCAL CUSTOMER FOCUS THROUGH REGIONAL ORGANIZATION
FY16 SALES VOLUMES: 3,468K units*
EUROPE EURASIA
1 2 19 1 2 5 649Ku 19% 1,805Ku 52% AMERICAS 167Ku ASIA-PACIFIC 5%
1 1 5 1 1 2 491Ku 354Ku 14% Design Center 10% Engineering Center AMI** Plants
* incl. AVTOVAZ ** Africa - Middle East - India 1 2 7
OCTOBER 6TH, 2017 31 REGIONS STRONG AMBITION: PROFITABLE GROWTH BY OVER 40%
BY REGION BY BODYTYPE
>5,000
3,468* >700 >600 167 Others 48% to >60% >60% 354 >1,100 INTERNATIONAL SALES 48% 649 Others 491 >800 LCV >40% LCV VOLUME INCREASE TIV 1,805 >1,800 LCV SUV +17% SUV > x2 2016 End of plan 2016 End of plan SUV VOLUME
EUROPE EURASIA ASPA AMI AMERICAS * incl. AVTOVAZ TIV: Total Industry Vehicles
OCTOBER 6TH, 2017 32 REGIONS GLOBAL ACCESS BUSINESS MODEL AS A UNIQUE ASSET
UNIQUE ASSET STRATEGY SALES VOLUMES
in million units
Kwid family: line-up expansion >2 • Design to cost Logan family: full renewal Logan, • Global industrial footprint Sandero & Stepway 1,2
• High localization rate Duster family: Duster renewal and new C-SUV offer • A specific Dacia business model Geographic extension: China… 2016 End of plan
OCTOBER 6TH, 2017 33 REGIONS EUROPE: REMAINING A PROFIT PILLAR WHILE ADDRESSING NEW DEMANDS
~AVERAGE GROUP OPERATING MARGIN*
• EV line-up expansion & 60% electrification ELECTRIFIED >1.8M OFFER 1.8M • Renewal of blockbusters Global Access, B, LCV SECOND • Efficiency and flexibility BRAND of manufacturing assets TIV CONTINUOUS Flat SUCCESS STORY 2016 End of plan TIV: Total Industry Vehicles * End of plan
OCTOBER 6TH, 2017 34 REGIONS ASIA PACIFIC: CHINA, THE BIGGEST GROWTH OPPORTUNITY FOR THE GROUP
CHINA: A GROWING PROFIT CENTER • CHINA • From 2 to 9 localized PC models • New EV JV with Nissan >700 and DongFeng CHINA Other • New LCV JV with Brilliance ASPA BEST TCO LEVEL • Competitive level of local FOR EV integration
• KOREA >550 China #3 in KOREA 167 • High level of Alliance cross TIV manufacturing 35 • Competitive level of local +20% integration 2016 End of plan TIV: Total Industry Vehicles ASPA: Asia Pacific
OCTOBER 6TH, 2017 35 REGIONS AMI: STRONG FOUNDATION FOR PROFITABLE GROWTH
NORTH AFRICA OPERATING PROFIT • Strong local brands x5*#1 IN AFRICA • INDIA • Kwid family expansion #1 in AFRICA from 1 to 3 models INDIA >800 • New products in higher price brackets >5% • Alliance local engineering PROFITABLE 491 and manufacturing MARKET SHARE • #1 digital >250 India #1 • IRAN EUROPEAN BRAND 132 • Market coverage >80% TIV >250 Iran 109 • Capacity increase +150Ku IRAN +50% • Exclusive Renault distribution 2016 End of plan network at best level >15% TIV: Total Industry Vehicles MARKET SHARE * End of plan
OCTOBER 6TH, 2017 36 REGIONS AMERICAS: GROWING PROFITABILITY WITH AN UNPRECEDENTED PRODUCT OFFENSIVE
OPERATING PROFIT x3*
• Full SUV, LCV and BRAZIL >600 Global Access line-up ≈ 90% market coverage 10% MARKET SHARE 354 • Maximum adaptation to local demand through local engineering and design #1 in centers ARGENTINA TIV +40% 2016 End of plan TIV: Total Industry Vehicles * End of plan
OCTOBER 6TH, 2017 37 REGIONS EURASIA: STRENGTHEN LEADERSHIP POSITION IN A REBOUNDING RUSSIAN MARKET
OPERATING PROFIT x5* • Renault 85% segment coverage for SUV in Russia
>1,100 • Leverage industrial footprint >500Ku on Alliance B-platform #1 in RUSSIA in Russia AUTOMOTIVE GROUP 30% MARKET SHARE 649 • The most competitive manufacturing base: #1 in TURKEY 285 >600Ku Romania & Turkey PC
TIV 364 • Transform Lada into a profit +65% booster for Groupe Renault #1 in ROMANIA 2016 End of plan TIV: Total Industry Vehicles * End of plan
OCTOBER 6TH, 2017 38 5 EUROPE
JEAN-CHRISTOPHE KUGLER EXECUTIVE VICE PRESIDENT, CHAIRMAN OF EUROPE
OCTOBER 6TH, 2017 39 EUROPE BUILDING ON DRIVE THE CHANGE SUCCESS
DRIVE THE CHANGE DRIVE THE FUTURE SUCCESS LEVERS
+1pt AMBITION MARKET SHARE Europe as a pillar contributor to Groupe Renault’s profitability +50% PROFIT CONTRIBUTION • Solid business model 2013 2014 2015 2016 • Product momentum Contribution in € Market share • EV leadership Continuous growth of contribution to group profit over the past years
OCTOBER 6TH, 2017 40 EUROPE SOLID BUSINESS MODEL
LOYAL CUSTOMERS PURCHASE REASONS CHANNEL MIX RESIDUAL VALUE
2016 CLIO III CLIO IV PRICE In % DESIGN LOYALTY 45% 60 2 1 3 28 23 40% 2012 20 40 25 35% 20 2017 47 57 30%
0 25% 2012 2013 2014 2015 2016 DESIGN Market Groupe Renault 2010 2012 2014 2016 G5 PRICE LOYALTY Germany UK Retail Fleet Tactical France Germany Italy France 2 1 3 Italy
• Leveraging on RCI • Retail Pricing > Basket • Maintain better than • Monitoring by loyalty products Industry average country/model • Dacia as a continuous • Fueled by a strong booster on retail product story Source: NCBS G5: France, Spain, Germany, UK, Italy
OCTOBER 6TH, 2017 41 EUROPE RENAULT PRODUCT MOMENTUM
A/B RANGE C/D RANGE SUVs LCV RANGE
• Clio renewal • Full C/D range facelift • Full renewal • Kangoo renewal • Renault’s best-selling • With new engine range • With latest AD, connectivity model, with first AD level 2 and top AD & & electrified offer 2 application & electrified connectivity offer powertrain offer
OCTOBER 6TH, 2017 42 EUROPE DACIA PRODUCT MOMENTUM
DACIA RANGE CONTINUOUS SUCCESS STORY
DACIA SALES Dacia retail mix 80% 450 000 400 000 350 000 300 000 250 000 200 000 150 000 • Sandero family renewal 100 000 • Duster renewal 50 000 0 • Stepway models 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
OCTOBER 6TH, 2017 43 EUROPE ELECTRIC LEADER
MASSIVE POWERTRAIN ELECTRIFICATION AT THE BEST COST, IN LINE WITH CUSTOMER EXPECTATIONS
• 8 BEV Models • Ready for 2020 CAFE regulation • Electrified offer on more than 60% of the range • From 30% to 80% EV market coverage • Best cost structure EV LEADER
OCTOBER 6TH, 2017 44 EUROPE CONCLUSION
SOLID BUSINESS MODEL
ONGOING PRODUCT STORY
READY FOR THE REGULATORY CHANGES
OCTOBER 6TH, 2017 45 6 RUSSIA
DENIS LE VOT SENIOR VICE PRESIDENT, CHAIRMAN OF EURASIA REGION
OCTOBER 6TH, 2017 46 RUSSIA CAR MARKET WITH SIGNIFICANT GROWTH POTENTIAL
CAR MARKET APPROACHED 3M UNITS TWICE CARS / 1,000 INHABITANTS
EUROPE RUSSIA 498 288 2 900 2 935
>2 500 ECONOMIC TRENDS >2 000 • Rich natural resources, cyclical economy
1 426 • 74% Internet penetration rate • 52% of new cars sold under €10k 863 MARKET TRENDS • 86% of the market 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020 2022 locally produced • 40% of the cars sold DRIVE THE CHANGE DRIVE THE FUTURE are SUV
OCTOBER 6TH, 2017 47 RUSSIA RENAULT: A SUCCESSFUL STRATEGY FOR LOCAL COMPETITIVENESS
PRODUCTS AND SERVICES STRONG COMPETITIVE LEVEL ADAPTED TO LOCAL CONDITIONS INDUSTRIAL BASE OF LOCAL INTEGRATION
Renault market share in Russia
8,2% 2005 2017 Start of production in Moscow Alliance 1.6L engine Produced in Togliatti
KAPTUR 1,3% SANDERO DUSTER LOGAN 2014 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Start of production of Renault cars in Togliatti
OCTOBER 6TH, 2017 48 RUSSIA AVTOVAZ: LEVERAGE 2 ASSETS
STRONG INDUSTRIAL BASE OPTIMIZED LOCAL BRAND IN A WIN-WIN SPIRIT
Lada: a long history Line-up Lada Alliance production base • “THE” Russian brand • A successful renewal • Full OEM footprint • Renault / Nissan / Datsun productions • Cars adapted to Russian roads • Global Alliance engines & components • Iconic models like Lada 4x4 19,5% SYNERGIES
16,4% 15,5%
VESTA XRAY
2013 2014 2015 2016 2017 Capacity Alliance Production Way OEM: Original Equipement Manufacturers Competitiveness Technologies
OCTOBER 6TH, 2017 49 RUSSIA LADA AMBITION: #1 BRAND WITH 20% PROFITABLE MARKET SHARE
CONSOLIDATE IMPROVE LADA BRAND BRING INDUSTRIAL PROFITABLE IMAGE & NETWORK PERFORMANCE MARKET SHARE EFFICIENCY IN RUSSIA TO ALLIANCE LEVELS 20% MARKET SHARE x2 VOLUMES PROFITABILITY ≥ GROUP LEVEL 20% >500 18,7% Range renewal Ensure quality and 266 customer satisfaction
2016 End of plan
OCTOBER 6TH, 2017 50 RUSSIA RENAULT AMBITION: EXPAND MARKET COVERAGE AND BOOST COMPETITIVENESS
LEVERAGE ANTICIPATE BOOST EXISTING LINE-UP EVOLVING MARKET COMPETITIVENESS REQUIREMENTS 10% • Kaptur from mid-2016… • 2 new engines MARKET SHARE
• 2 new gearboxes RETURN TO HISTORICAL HIGH PROFITABILITY EXPAND MARKET • New multimedia COVERAGE 10% • Boost 4x4 offer >250 • Digitalization • +4 new models • Leverage industrial base 8,2% • Reinforce SUV offer and platforms 117
2016 End of plan
OCTOBER 6TH, 2017 51 RUSSIA GROUPE RENAULT: #1 AUTOMOTIVE GROUP WITH 30% MARKET SHARE
LADA ALLIANCE RENAULT AMBITION SYNERGIES AMBITION
• Platforms • Purchasing • Engineering • Logistics
CONVERGED 20% METHODS 10% MARKET SHARE MARKET SHARE PROFITABILITY BEST HIGH ≥ GROUP LEVEL PRACTICES PROFITABILITY
OCTOBER 6TH, 2017 52 7 LCV
ASHWANI GUPTA ALLIANCE SENIOR VICE PRESIDENT, RENAULT NISSAN LCV BU
OCTOBER 6TH, 2017 53 LCV FROM TOP REGIONAL PLAYER TO TOP GLOBAL PLAYER
VISION: LEADING EUROPEAN VAN MANUFACTURER WORLDWIDE
DRIVE THE CHANGE DRIVE THE FUTURE
• Volumes • Volumes +40% >+40% • Market share • Ranking +48% 1st European Van OEM • Market coverage • Market coverage x2 from 15% to 24% from 24% to 50% • Profitability • Profitability ~ Group average > Group average
Achieved breakthrough Sustainable profitable growth China conquest OEM: Original Equipment Manufacturers
OCTOBER 6TH, 2017 54 LCV STRENGTHS: BRAND AND PRODUCTS
RENAULT PRO+ FULL LINE-UP FOR PROFESSIONAL CUSTOMERS FROM VANS TO PICK-UPS
SPECIALIZED NETWORK
TAILORMADE SOLUTIONS
FROM 660 TO • 10 models incl. 4 EV models >800 OUTLETS (WITHIN 40 COUNTRIES) • 1,200 versions diversity
OCTOBER 6TH, 2017 55 LCV STRENGTHS: MARKETS
TOP EUROPEAN PLAYER AND MARKET LEADER IN ELECTRIC VANS
15.7% market share
#1 in LCV EV with 29.5% market share
AMERICAS
6.4% Americas market share > +2.5 pts since 2015
Major profit contributor
OCTOBER 6TH, 2017 56 LCV 3 LEVERS FOR GROWTH 1 2 3 RENAULT - BRILLIANCE ELECTRIFICATION RENAULT-NISSAN-MITSUBISHI LCV: JOINT VENTURE IN CHINA ACCELERATION AIMING FOR GLOBAL LEADERSHIP WITH 2.5M UNITS
Vans & 0.5 Pick-up
Frame Pick-up
Vans Frame Expansion
Framework Cooperation Agreement signed
• Major player in 3M units growing • Maintain leadership in Europe while • Key contributor to €10bn LCV market expanding to China Alliance synergies • Payload: 75kg to 1.1t • 100% Renault frame pick-up from Nissan 3 • Volume: from 156L to 22m • 20% Nissan vans from Renault • 100% of vans electrified
OCTOBER 6TH, 2017 57 LCV TOWARDS NEW BUSINESS SOLUTIONS FOR COMMERCIAL MOBILITY
AUTONOMOUS – ELECTRIC - CONNECTED - SHARED
LEADER MODULAR AD CARGO - DRIVERLESS BENEFITS
EV FOR CITY ACCESS or DRIVERLESS and/ and/ FOR COST EFFICIENCY + or or or SHARED CONNECTED PLATFORM FOR SMART BUSINESS LOGISTICS
OCTOBER 6TH, 2017 58 LCV AMBITION
VOLUME MARKET 1ST EUROPEAN GROWTH COVERAGE VAN OEM WORLWIDE PROFITABILITY
Including partners
2 1 3
>40% x2 ABOVE GROUP AVERAGE
OEM: Original Equipment Manufacturers
OCTOBER 6TH, 2017 59 8 ELECTRIC VEHICLE
GILLES NORMAND SENIOR VICE PRESIDENT, ELECTRIC VEHICLE
OCTOBER 6TH, 2017 60 ELECTRIC VEHICLE
ELECTRIC VEHICLE FROM A VISION TO A PROFITABLE CORE BUSINESS
OCTOBER 6TH, 2017 61 ELECTRIC VEHICLE 8 YEARS OF EXPERIENCE TO BUILD A COMPETITIVE ADVANTAGE
FIRST MOVER CUSTOMER WITH 4 MODELS SATISFACTION • NEW ZOE: 400 km NEDC autonomy • >90% customer recommendations • >140K customers
30,000 PEOPLE TRAINED
100% LEADER TECHNICAL TRAINED DEALERS IN EUROPE EXCELLENCE • 3 Formula-E championships
2014 - 2015 25% COMPETITOR 22% 1 2015 - 2016 14% 2016 - 2017 2 1 3
OCTOBER 6TH, 2017 62 ELECTRIC VEHICLE A ROBUST & PROFITABLE CORE BUSINESS BY 2022
THE OBJECTIVE THE PLAN
INITIAL PROFIT ON FULL COST EXPAND INVESTMENT VARIABLE PROFIT NO PROFIT COSTS OUR REACH NEW EV GROUP GENERATION AVERAGE PROFITABILITY ACCELERATE COST REDUCTION
CURRENT LINE UP LEADER 0 IN AFFORDABLE ELECTRIC MOBILITY
PROVIDE EASY ELECTRIC LIFE
2008 DRIVE THE DRIVE THE CHANGE FUTURE GENERATE VALUE FROM ENERGY & MOBILITY SECTORS
OCTOBER 6TH, 2017 63 ELECTRIC VEHICLE EXPANDING OUR REACH
LINE-UP SEGMENT MARKET EXTENSION COVERAGE EXPANSION IN EUROPE
4 Models Partial 1 Key market 2016 1 Best seller LEADER
2 Key markets 8 Models All key LEADER 2022 2 Pillar models Develop next key markets
OCTOBER 6TH, 2017 64 ELECTRIC VEHICLE ACCELERATE COST REDUCTION
3D SCALABLE COST ALLIANCE PLATFORM BREAKTHROUGH
80% of volume based on Alliance platform • Battery pack cost (€/kWh) -30% • -40% R&D entry ticket • New E-motor generation -20% • -30% production cost
OCTOBER 6TH, 2017 65 ELECTRIC VEHICLE LEADER IN AFFORDABLE ELECTRIC MOBILITY
TOTAL COST OF OWNERSHIP EV vs ICE B-segment – 3 years – 12,000km/y Including reduction of incentives AFFORDABLE AUTONOMY
EV Autonomy Price* (NEDC) (w/o incentive) Gasoline (reference base 100) 400 km €33,200 #1
280 km €32,750
300 km €35,900
300 km €36,800
2016 2020 2022
* MSRP Germany Q1 2017
OCTOBER 6TH, 2017 66 ELECTRIC VEHICLE PROVIDE EASY ELECTRIC LIFE
IMPROVED FEATURES NO MORE RANGE ANXIETY
• One class above in roominess • Above 600 km NEDC • Flat floor lay-out (CMF-EV) • ≈ 400 km real motorway range • FOTA • Recovery >230 km NEDC in 15 min • Autonomous Drive, progressive introduction
OCTOBER 6TH, 2017 67 ELECTRIC VEHICLE GENERATE VALUE FROM ENERGY & MOBILITY SECTORS NOW
SMART CHARGING BATTERY SECOND LIFE
Pilot car charging to match electricity grid Connect clean energy to grid and buildings off peak prices IMPACT IMPACT TCO reduction for customer Secure battery leasing business model Additional profit for OEM
OCTOBER 6TH, 2017 68 9 RCI BANK AND SERVICES
GIANLUCA DE FICCHY CHIEF EXECUTIVE OFFICER, RCI BANK AND SERVICES
OCTOBER 6TH, 2017 69 RCI BANK AND SERVICES AN EFFICIENT CAPTIVE FINANCE COMPANY
WORLDWIDE RESILIENT BEST IN CLASS BUSINESS MODEL CAPTIVE
PERFORMING ASSETS AT END RETURN ON EQUITY BENCHMARK & PROFIT BEFORE TAX 38 20,1% 18,5% 18,7% 18,2% 26 23 21 918 747 16%
491 472
10%
2006 2009 2013 2016 2013 2014 2015 2016
Non-consolidated Commercial Profit before Tax (excl. non recurring items) in €m RCI (Direct Control) Joint Venture Agreement RCI Bank and Services European captives & independent Performing assets at end in €bn financial companies • Fully owned bank under ECB* • Financially autonomous • Profitability above peers supervision • Conservative risk approach • Captive of 7 Alliance brands
* ECB: European Central Bank
OCTOBER 6TH, 2017 70 RCI BANK AND SERVICES A VIRTUOUS BUSINESS MODEL
A support for the sales development of the Alliance brands and their distributors network
CONQUEST UPSELLING AFTER SALES FASTER BRAND RENEWAL LOYALTY Additional sales Better equipped cars Additional turnover Shorter holding time Better renewal rate +7% +€300 +€200 -25 +10 / CONTRACT / CONTRACT MONTHS PTS
+5 pts Higher satisfaction of financed customers
OCTOBER 6TH, 2017 71 RCI BANK AND SERVICES TRANSFORMATION TO FACE THE FUTURE
ENHANCE CUSTOMER OFFENSIVE SERVICES NEW SOLUTIONS SATISFACTION AND STRATEGY OF MOBILITY LOYALTY
PAY AS YOU DRIVE
• Simple, affordable & • New multichannel strategy • Full mobility solutions for fleet personalized offers • Value-added services • Technologies and partnerships • Loyalty products
OCTOBER 6TH, 2017 72 RCI BANK AND SERVICES RCI DRIVE THE FUTURE
PENETRATION SERVICE REGULATORY RETURN RATE PENETRATION CAPITAL RATIO ON EQUITY RATE
2013 - 2016 37% - 40% 0.6 → 1.0 12% → 16% >16% service / car DRIVE THE FUTURE >42%* >1.4 >14%** >16% services / car
* Number of new financed vehicles / number of total registrations ** On 31/12/2016: total capital ratio requirement at 11% On 31/12/2022: total capital ratio requirement estimated at ≈12.5% (projected level based upon existing regulation)
OCTOBER 6TH, 2017 73 RCI BANK AND SERVICES RCI DRIVE THE FUTURE
AN EFFICIENT CAPTIVE FINANCE COMPANY
A VIRTUOUS BUSINESS MODEL
TRANSFORMATION TO FACE THE FUTURE
OCTOBER 6TH, 2017 74 10 FINANCE
CLOTILDE DELBOS EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER
OCTOBER 6TH, 2017 75 FINANCE A SUSTAINABLE, PROFITABLE GROWTH
STRONG HIGH LEVEL OF FINANCIAL REVENUE GROWTH OPERATING PROFIT DISCIPLINE in €bn >7,0% 6,4% >70 5% previous target becomes 51 floor 39 2,8% POSITIVE AUTOMOTIVE OPERATIONAL
2010 2016 End of plan* 2010 2016 End of plan* FREE CASH FLOW EACH YEAR
DRIVE THE CHANGE DRIVE THE FUTURE
* incl. AVTOVAZ and with FX from banking consensus September 2017
OCTOBER 6TH, 2017 76 FINANCE WALKDOWN GROUP OPERATING MARGIN
>7%
6.4%
20162016 Cost Mix / Price / Volume AVTOVAZ FX & End 2022of plan Reduction Enrichment Market risks & Raw materials
OCTOBER 6TH, 2017 77 FINANCE A MUCH MORE BALANCED PROFIT POOL
REGION’S SHARE AS A % OF GROUP OPERATING PROFIT
AMERICAS ASIA PACIFIC EURASIA AMI EUROPE ~25% INTERNATIONAL + + + + =100 2016*
excl. x3 in € China JVs x5 in € x5 in € ~ stable in € >50% INTERNATIONAL + + + + =100 End of plan
* 2016 excl. AVTOVAZ
OCTOBER 6TH, 2017 78 FINANCE INVESTMENT POLICY
R&D SPENDING CAPEX AND R&D 2017-2022 IN % OF REVENUES
10 CAP 9 9% AVERAGE 2017-2022 8
7
6 €18bn 2016 2017 2018 2019 2020 2021 2022
OCTOBER 6TH, 2017 79 FINANCE LIQUIDITY POLICY
NET CASH POSITION LIQUIDITY RESERVES
TARGET* ~ €5bn 2016 2017-2022* MINIMUM €2.7bn €15.1bn 20% OF REVENUES
2016 2017-2022
* Excluding IFRS 16 impact
OCTOBER 6TH, 2017 80 FINANCE A COMPETITIVE DIVIDEND POLICY
COMPETITIVE RETURN FOR RENAULT’S SHAREHOLDERS
100% PASS-THROUGH DIVIDENDS PAY-OUT ON RENAULT from listed companies CORE NET PROFIT (Group Net Result – Associates)
+ x2 15% 7%
2016 End of plan
OCTOBER 6TH, 2017 81 CONCLUSION
CARLOS GHOSN CHAIRMAN AND CHIEF EXECUTIVE OFFICER
OCTOBER 6TH, 2017 82 OCTOBER 6TH, 2017 83