2017 FINANCIAL RESULTS CONFERENCE - group.renault · PDF fileinvestor relations –fy 2017...
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PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 FINANCIAL RESULTS
CONFERENCE
PROPERTY OF GROUPE RENAULT 2INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
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.
PROPERTY OF GROUPE RENAULT 3INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
01 FY 2017 FINANCIAL RESULTS CLOTILDE DELBOSEVP, Group Chief Financial Officer
02 2017 KEY ACHIEVEMENTS / 2018 OUTLOOKCARLOS GHOSNChairman & Chief Executive Officer
AGENDA
03 QUESTIONS & ANSWERS
PROPERTY OF GROUPE RENAULT 4INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
FY 2017 FINANCIAL RESULTSCLOTILDE DELBOSEVP, Group Chief Financial Officer
01
PROPERTY OF GROUPE RENAULT 5INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
3,468
1,810
491 645354
167
3,762
1,911
532733
389196
2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
K units (PC+LCV)
WORLD MARKET SHARE: 4.03% (+0.2pts)
GROUPE RENAULT’S UNIT REGISTRATIONS 2017 VS 2016 (incl. Lada)
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%
INTERNATIONAL: +11.6%
PROPERTY OF GROUPE RENAULT 6INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
* 2016 including Lada sales
** AVTOVAZ net of eliminations
Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017
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%
PROPERTY OF GROUPE RENAULT 7INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
Currency
VolumeGeographic
mix
Sales topartners
Others
+9.3%
+3.3 pts -0.1 pts +0.7 pts +1.5 pts -0.7 pts +2.0 pts
Price
+2.6 pts
2016 2017
Productmix
48,995
53,530
+1,585
+1,298
+738
+355-68
+973-346
(million euros)
CHANGE 2017 vs 2016: +€4,535m
AUTOMOTIVE EXCLUDING AVTOVAZ REVENUES VARIANCE ANALYSIS
PROPERTY OF GROUPE RENAULT 8INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
In million euros 2016 2017 CHANGE
GROUP OPERATING PROFIT
% of Group revenues3,282
6.4%
3,8546.6%
+572+0.2pts
o/w AUTOMOTIVE excl. AVTOVAZ
% of segment revenues
2,3864.9%
2,7495.1%
+363+0.2pts
o/w AVTOVAZ* - 55 +55
o/w SALES FINANCING 896 1,050 +154
FY 2017 OPERATING PROFIT BY ACTIVITY
H1 H2
* AVTOVAZ net of eliminations
Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017
4.8% 5.5%
PROPERTY OF GROUPE RENAULT 9INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
Currency
Volume & partners
Mix / Net Enrichment
G&A
RCI Banque& others
COST
REDUCTION
+€538m
MonozukuriRaw
materials
GROWTH
+€906m
AVTOVAZ**
+663
+493
+413
+55
3,282
3,799 3,854
-125
-394
-230
-303
CHANGE 2017 vs 2016: +€572m
2016* 2017incl. AVTOVAZ
(million euros)
2017excl. AVTOVAZ* 2016 excluding AVTOVAZ
** AVTOVAZ net of eliminations
GROUP OPERATING PROFIT VARIANCE ANALYSIS
PROPERTY OF GROUPE RENAULT 10INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
G&AManufacturing &
Logistics
R&DWarrantyPurchasing
Monozukuri
(million euros)
+731
+75 -100
-43
-125
CHANGE 2017 vs 2016: +€538m
COST REDUCTION ANALYSIS EXCLUDING AVTOVAZ
PROPERTY OF GROUPE RENAULT 11INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
Currency
Volume & partners
Mix / Net Enrichment
G&A
RCI Banque& others
COST
REDUCTION
+€538m
MonozukuriRaw
materials
GROWTH
+€906m
AVTOVAZ**
+663
+493
+413
+55
3,282
3,799 3,854
-125
-394
-230
-303
CHANGE 2017 vs 2016: +€572m
2016* 2017incl. AVTOVAZ
(million euros)
2017excl. AVTOVAZ* 2016 excluding AVTOVAZ
** AVTOVAZ net of eliminations
GROUP OPERATING PROFIT VARIANCE ANALYSIS
PROPERTY OF GROUPE RENAULT 12INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
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
OTHER OPERATING INCOME & EXPENSES
* 2016 excluding AVTOVAZ
PROPERTY OF GROUPE RENAULT 13INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
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
*
PROPERTY OF GROUPE RENAULT 14INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
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
ASSOCIATED COMPANIES
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
PROPERTY OF GROUPE RENAULT 15INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
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
*
PROPERTY OF GROUPE RENAULT 16INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
Net tangible& intangibleinvestments
-3,891
Capitalized
R&D
-1,193
Net capex
-2,169
Operational free
cash flow
Cash flow
Changein WCR
Dividendspaid
Net change
Dividends received
fromlisted co.
Financial investments
& others
DEC 31, 2016*: €2,416m
DEC 31, 2017*: €2,928m
(million euros)
LeasedVehicles
-529Others fromAVTOVAZ
AVTOVAZFCF
AUTOMOTIVE NET FINANCIAL POSITION
Excl. AVTOVAZ
Share buy-back
for employees
447
4,327
62945
761 -996
-163 -121 86 512
* The figures at December 31, 2016 include adjustments relating to the allocation of the purchase price paid for the AVTOVAZ Group.
PROPERTY OF GROUPE RENAULT 17INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
481
593 571 591564
670618 609 613
141
298
200
267
165
327
208
277
190
340
295
371324
399343
410
333
423
DEC'15 MAR'16 JUN'16 SEP'16 DEC'16 MAR'17 JUN'17 SEP'17 DEC'17
GROUP
INDEPENDENTDEALERS
TOTAL
Number of days of sales (backward)
6055 78 76
(K units)
59 78 63 71
NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ
57
PROPERTY OF GROUPE RENAULT 18INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
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
PROPERTY OF GROUPE RENAULT 19INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 KEY ACHIEVEMENTS2018 OUTLOOKCARLOS GHOSNChairman & Chief Executive Officer
02
PROPERTY OF GROUPE RENAULT 20INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
REVENUES
GROUP OPERATING MARGIN
€50bn*
DRIVE THE CHANGE MAIN OBJECTIVES ACHIEVED A YEAR AHEAD
5%
* Without AVTOVAZ consolidation. Based on bank consensus FX rate at the beginning of 2014.
PROPERTY OF GROUPE RENAULT 21INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 OBJECTIVES OVERACHIEVED & RECORD RESULTS
2016* 2017
GLOBAL SALES+8.5%
RECORD SALESin million units
2016 2017
GROUP TURNOVER+14.7%
RECORD REVENUESin billion euros
2016 2017
GROUP OPERATING PROFIT+17.4%
RECORD OPERATING PROFITin million euros
3.47
3.76
51.2
58.8
3,282
3,854
* 2016 including Lada sales
PROPERTY OF GROUPE RENAULT 22INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 HIGHLIGHT: NEW STRATEGIC PLAN
€4.2bn
2017 - 2022 OBJECTIVES
€70bn 7%REVENUES COP SAVINGS
PROPERTY OF GROUPE RENAULT 23INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 ACHIEVEMENTS: WORLDWIDE PRODUCT LAUNCHES
NEWMODELS
ALPINE A110NEW DUSTER
PROPERTY OF GROUPE RENAULT 24INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 ACHIEVEMENTS: WORLDWIDE PRODUCT LAUNCHES
KWID CAPTUR ALASKAN
GEOGRAPHICAL EXTENSIONS
PROPERTY OF GROUPE RENAULT 25INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 ACHIEVEMENTS: IMPROVED REGIONAL MIX
SALES & MARKET SHARES
UP IN ALL REGIONS
PROPERTY OF GROUPE RENAULT 26INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
12 COUNTRIES >100,000 SALES IN
2017 ACHIEVEMENTS: IMPROVED REGIONAL MIX
2017 GLOBALSALES
OUTSIDEEUROPE
49EUROPE 51
PROPERTY OF GROUPE RENAULT 27INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 ACHIEVEMENTS: AVTOVAZ RETURN TO OPERATING PROFIT
OPERATINGRETURN TO
#1 BRANDLADA
GROWTH+17%
PROFIT
IN RUSSIA
PROPERTY OF GROUPE RENAULT 28INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 ACHIEVEMENTS: EV LEADERSHIP
+38%
90,000ZOE CUMULATED
25%
WORLDWIDE
MARKET SHARE
EV SALES
IN EUROPE
SALES
PROPERTY OF GROUPE RENAULT 29INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
CHENNAÏ
2017 ACHIEVEMENTS: SCALE EFFECTS
CMF-A PLATFORM
PROPERTY OF GROUPE RENAULT 30INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
FLINS BARCELONAMEXICO CORDOBA
2017 ACHIEVEMENTS: SCALE EFFECTS
PROPERTY OF GROUPE RENAULT 31INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 ALLIANCE INITIATIVE: LCV BUSINESS
MODELS18 77%MARKETCOVERAGE
PROPERTY OF GROUPE RENAULT 32INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2018 OUTLOOK
OPPORTUNITIES
NEW DUSTER
ALLIANCE SYNERGIES ACCELERATION
CONTINUING EMERGING MARKETS RECOVERY
RISKS
RISING RAW MATERIALS
FOREX UNCERTAINTIES
VOLATILITY IN MATURE MARKETS
PROPERTY OF GROUPE RENAULT 33INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2018 TIV OUTLOOK
RUSSIA~ +10%
CHINA>+5%
INDIA+6%
BRAZIL>+5%
FRANCE+1%
EUROPE+1%
GLOBAL TIV*
+2.5%* PC+LCV including USA & Canada
PROPERTY OF GROUPE RENAULT 34INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2018 OUTLOOK
THE GROUP IS AIMING TO:
* Excluding IFRS 15 impact
INCREASE GROUP REVENUES* (AT CONSTANT EXCHANGE RATES AND PERIMETER)
MAINTAIN GROUP OPERATING MARGIN ABOVE 6.0%*
GENERATE A POSITIVE AUTOMOTIVE OPERATIONAL FREE CASH FLOW
PROPERTY OF GROUPE RENAULT 35INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
QUESTIONS & ANSWERS
03
PROPERTY OF GROUPE RENAULT 36INVESTOR RELATIONS – FY 2017 PRESENTATION FEBRUARY 16TH 2018
2017 FINANCIAL RESULTS
CONFERENCE