2017 FINANCIAL RESULTS CONFERENCE
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 1 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.
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 2 AGENDA
FY 2017 FINANCIAL RESULTS CLOTILDE DELBOS 01 EVP, Group Chief Financial Officer
2017 KEY ACHIEVEMENTS / 2018 OUTLOOK 02 CARLOS GHOSN Chairman & Chief Executive Officer 03 QUESTIONS & ANSWERS
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 3 01 FY 2017 FINANCIAL RESULTS CLOTILDE DELBOS EVP, Group Chief Financial Officer
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 4 GROUPE RENAULT’S UNIT REGISTRATIONS 2017 VS 2016 (incl. Lada)
WORLD MARKET SHARE: 4.03% (+0.2pts) K units (PC+LCV)
3,762 3,468
1,810 1,911 INTERNATIONAL: +11.6% 645 733 491 532 354 389 167 196
2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
GLOBAL EUROPE AMI EURASIA AMERICAS ASPA GROUP 8.5% 5.6% 8.4% 13.6% 9.9% 17.0% TIV 2.3% 3.3% 2.0% 7.0% 7.2% 2.7%
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 5 FY 2017 GROUP REVENUES
In million euros 2016 2017 CHANGE
GLOBAL UNIT SALES* (units) 3,468,174 3,761,634 +8.5%
GROUP REVENUES 51,243 58,770 +14.7%
o/w AUTOMOTIVE excl. AVTOVAZ 48,995 53,530 +9.3%
o/w AVTOVAZ** - 2,727 N/A
o/w SALES FINANCING 2,248 2,513 +11.8%
H1 H2
+12.1% +6.5%
* 2016 including Lada sales ** AVTOVAZ net of eliminations Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 6 AUTOMOTIVE EXCLUDING AVTOVAZ REVENUES VARIANCE ANALYSIS
CHANGE 2017 vs 2016: +€4,535m
Others Sales to partners Currency +973 -346 +1,298 Price Product +738 Geographic mix Volume mix +355 -68 53,530 +1,585
+3.3 pts -0.1 pts +0.7 pts +1.5 pts +2.6 pts -0.7 pts +2.0 pts 48,995 +9.3% (million euros) 2016 2017
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 7 FY 2017 OPERATING PROFIT BY ACTIVITY
In million euros 2016 2017 CHANGE
GROUP OPERATING PROFIT 3,282 3,854 +572 % of Group revenues 6.4% 6.6% +0.2pts
o/w AUTOMOTIVE excl. AVTOVAZ 2,386 2,749 +363 % of segment revenues 4.9% 5.1% +0.2pts o/w AVTOVAZ* - 55 +55
o/w SALES FINANCING 896 1,050 +154
H1 H2
4.8% 5.5% * AVTOVAZ net of eliminations Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 8 GROUP OPERATING PROFIT VARIANCE ANALYSIS
CHANGE 2017 vs 2016: +€572m RCI Banque & others Currency Monozukuri G&A Raw +413 -303 -125 materials AVTOVAZ** Volume & partners +55 +663 -394 Mix / Net Enrichment +493 -230 3,799 3,854 COST GROWTH 3,282 REDUCTION +€906m +€538m
(million euros) 2016* 2017 2017 * 2016 excluding AVTOVAZ excl. AVTOVAZ incl. AVTOVAZ ** AVTOVAZ net of eliminations
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 9 COST REDUCTION ANALYSIS EXCLUDING AVTOVAZ
CHANGE 2017 vs 2016: +€538m
Monozukuri
+75 -100 -43 -125
+731
(million euros) Purchasing Warranty R&D Manufacturing & G&A Logistics
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 10 GROUP OPERATING PROFIT VARIANCE ANALYSIS
CHANGE 2017 vs 2016: +€572m RCI Banque & others Currency Monozukuri G&A Raw +413 -303 -125 materials AVTOVAZ** Volume & partners +55 +663 -394 Mix / Net Enrichment +493 -230 3,799 3,854 COST GROWTH 3,282 REDUCTION +€906m +€538m
(million euros) 2016* 2017 2017 * 2016 excluding AVTOVAZ excl. AVTOVAZ incl. AVTOVAZ ** AVTOVAZ net of eliminations
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 11 OTHER OPERATING INCOME & EXPENSES
In million euros 2016* 2017
NET RESTRUCTURING COSTS -283 -56
IMPAIRMENT OF ASSETS -38 -52
CAPITAL GAIN/LOSS ON DISPOSAL OF FIXED ASSETS -4 +96
IMPACT OF AVTOVAZ FIRST FULL CONSOLIDATION +325 -
OTHERS +1 -36
TOTAL OTHER OPERATING INCOME & EXPENSES +1 -48
* 2016 excluding AVTOVAZ
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 12 FY 2017 FINANCIAL RESULTS
In million euros 2016 2017 CHANGE REVENUES 51,243 58,770 +14.7% OPERATING PROFIT 3,282 3,854 +572 % of Group revenues 6.4% 6.6% +0.2 pts OTHER OPERATING INCOME & EXPENSES +1 -48 -49 EBIT 3,283 3,806 +523 NET FINANCIAL INCOME & EXPENSES -323 -504 -181 ASSOCIATED COMPANIES 1,638 2,799 +1,161 CURRENT & DEFERRED TAXES -1,055 -891 +164 NET INCOME 3,543 5,210* +1,667
* Excluding the impact of the US tax reform and Calsonic Kansei divestiture on Nissan contribution (-€1,021m): Net income = €4,189m Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 13 ASSOCIATED COMPANIES
In million euros 2016 2017 CHANGE
NISSAN 1,741 2,791* +1,050
AVTOVAZ -89 - +89
OTHERS -14 8 +22
TOTAL ASSOCIATED COMPANIES 1,638 2,799 +1,161
H1 H2
1,288 1,503
* €1,770m excluding the impact of the US tax reform and Calsonic Kansei divestiture on Nissan contribution (-€1,021m) Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 14 FY 2017 FINANCIAL RESULTS
In million euros 2016 2017 CHANGE REVENUES 51,243 58,770 +14.7% OPERATING PROFIT 3,282 3,854 +572 % of Group revenues 6.4% 6.6% +0.2 pts OTHER OPERATING INCOME & EXPENSES +1 -48 -49 EBIT 3,283 3,806 +523 NET FINANCIAL INCOME & EXPENSES -323 -504 -181 ASSOCIATED COMPANIES 1,638 2,799 +1,161 CURRENT & DEFERRED TAXES -1,055 -891 +164 NET INCOME 3,543 5,210* +1,667
* Excluding the impact of the US tax reform and Calsonic Kansei divestiture on Nissan contribution (-€1,021m): Net income = €4,189m Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 15 AUTOMOTIVE NET FINANCIAL POSITION
Excl. AVTOVAZ
Net tangible & intangible investments Change DEC 31, 2016*: €2,416m in WCR -3,891 Cash flow 447 DEC 31, 2017*: €2,928m
Net capex -2,169
Dividends Capitalized received 4,327 R&D from Dividends listed co. paid -1,193 Operational free AVTOVAZ 761 Financial Leased -529 -996 Share Vehicles FCF cash flow investments & others buy-back Others from Net 62 for employees AVTOVAZ change 945 -163 -121 86 512 (million euros)
* The figures at December 31, 2016 include adjustments relating to the allocation of the purchase price paid for the AVTOVAZ Group.
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 16 NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ
(K units)
670 TOTAL 618 593 591 609 613 571 564 481 INDEPENDENT 399 410 423 DEALERS 371 340 343 333 298 324 327 295 267 277 GROUP 200 208 190 141 165
DEC'15 MAR'16 JUN'16 SEP'16 DEC'16 MAR'17 JUN'17 SEP'17 DEC'17 55 78 60 76 59 78 63 71 57 Number of days of sales (backward)
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 17 RCI BANQUE
2016 2017
NEW FINANCINGS (€bn) 17.9 20.6
AVERAGE PERFORMING ASSETS (€bn) 33.3 39.6
NET BANKING INCOME 4.41% 4.11%
COST OF RISK (CUSTOMER & DEALER) -0.31% -0.11%
OPERATING EXPENSES -1.39% -1.32%
PRETAX INCOME 2.74% 2.72%
OPERATING PROFIT (€m) 896 1,050
All percentages are calculated on average performing assets
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 18 02 2017 KEY ACHIEVEMENTS 2018 OUTLOOK CARLOS GHOSN Chairman & Chief Executive Officer
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 19 DRIVE THE CHANGE MAIN OBJECTIVES ACHIEVED A YEAR AHEAD
REVENUES €50bn* GROUP OPERATING MARGIN 5%
* Without AVTOVAZ consolidation. Based on bank consensus FX rate at the beginning of 2014.
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 20 2017 OBJECTIVES OVERACHIEVED & RECORD RESULTS
RECORD SALES RECORD REVENUES RECORD OPERATING PROFIT in million units in billion euros in million euros
3.76 58.8 3,854
3.47 51.2 3,282
2016* 2017 2016 2017 2016 2017
GLOBAL SALES GROUP TURNOVER GROUP OPERATING PROFIT +8.5% +14.7% +17.4% * 2016 including Lada sales
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 21 2017 HIGHLIGHT: NEW STRATEGIC PLAN
2017 - 2022 OBJECTIVES
€70bn 7% €4.2bn REVENUES COP SAVINGS
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 22 2017 ACHIEVEMENTS: WORLDWIDE PRODUCT LAUNCHES
NEW MODELS
NEW DUSTER ALPINE A110
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 23 2017 ACHIEVEMENTS: WORLDWIDE PRODUCT LAUNCHES
GEOGRAPHICAL EXTENSIONS
KWID CAPTUR ALASKAN
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 24 2017 ACHIEVEMENTS: IMPROVED REGIONAL MIX
SALES & MARKET SHARES UP IN ALL REGIONS
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 25 2017 ACHIEVEMENTS: IMPROVED REGIONAL MIX
GLOBAL 2017 SALES
EUROPE OUTSIDE 51 49 EUROPE
>100,000 SALES IN 12 COUNTRIES
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 26 2017 ACHIEVEMENTS: AVTOVAZ RETURN TO OPERATING PROFIT
RETURN TO OPERATING PROFIT
LADA #1 BRAND IN RUSSIA
+17% GROWTH
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 27 2017 ACHIEVEMENTS: EV LEADERSHIP
+38% WORLDWIDE EV SALES
25% MARKET SHARE IN EUROPE 90,000 ZOE CUMULATED SALES
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 28 2017 ACHIEVEMENTS: SCALE EFFECTS
CHENNAÏ
CMF-A PLATFORM
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 29 2017 ACHIEVEMENTS: SCALE EFFECTS
FLINS MEXICO BARCELONA CORDOBA
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 30 2017 ALLIANCE INITIATIVE: LCV BUSINESS
MARKET 18 MODELS 77% COVERAGE
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 31 2018 OUTLOOK
OPPORTUNITIES RISKS
. NEW DUSTER . RISING RAW MATERIALS
. ALLIANCE SYNERGIES ACCELERATION . FOREX UNCERTAINTIES
. CONTINUING EMERGING MARKETS RECOVERY . VOLATILITY IN MATURE MARKETS
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 32 2018 TIV OUTLOOK RUSSIA ~ +10% FRANCE +1% EUROPE +1% CHINA >+5% INDIA +6% BRAZIL >+5% +2.5% * * PC+LCV including USA & Canada GLOBAL TIV
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 33 2018 OUTLOOK
THE GROUP IS AIMING TO:
. INCREASE GROUP REVENUES* (AT CONSTANT EXCHANGE RATES AND PERIMETER)
. MAINTAIN GROUP OPERATING MARGIN ABOVE 6.0%*
. GENERATE A POSITIVE AUTOMOTIVE OPERATIONAL FREE CASH FLOW
* Excluding IFRS 15 impact
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 34 03 QUESTIONS & ANSWERS
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 35 2017 FINANCIAL RESULTS CONFERENCE
INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018 PROPERTY OF GROUPE RENAULT 36