H1 2019 Financial Results - Renault...INVESTOR RELATIONS –H1 2019 PRESENTATION JULY 26, 2019...

PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – H1 2019 PRESENTATION JULY 26, 2019

H1 2019 Financial Results


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.


01 CEO’s Comments Thierry BolloréChief Executive Officer

02 H1 2019 Financial ResultsClotilde DelbosEVP, Group Chief Financial Officer

Agenda

03 Questions & Answers


CEO’s CommentsThierry BolloréChief Executive Officer

01


▪ Resilience in a worsening auto context

▪ AVTOVAZ and RCI performance in line with expectations

▪ Stricter pricing discipline

▪ Cost control (FAST, digitalization)

▪ R&D and capitalization ratio increase due to products offensive

H1 Key Take-Aways

H1 results in line with expectations


Opportunities

▪ New products launches

▪ Pricing improvement

▪ Competitiveness action plans (FAST, Digital)

Risks

▪ Hard Brexit

▪ Impact of global trade tensions

▪ Regulatory framework unpredictability

H2 2019 Risks & Opportunities


2019 OutlookWithin this context,Groupe Renault now expects :

▪ Revenues to be close to last year’s(at constant exchange rates and perimeter)

BrazilEurope

stable(w/o hard Brexit)

-2% to -3%

Russia

~ +8%

Global Automotive Market (1)

~ -3%

and confirms:

▪ Achieving Group operatingmargin around 6%

▪ Generating a positive Automotive operational free cash flow

(1) The evolution of the global automotive market for all brands also called Total Industry Volume (TIV) indicates the annual variation in sales* volumes of passenger cars and light commercial vehicles** in the main countries

including USA & Canada, provided by official authorities or statistical agencies in each country, and consolidated by Groupe Renault to constitute this world market (TIV).

*Sales: registrations or deliveries or invoices according to the data available in each consolidated country.

**Light commercial vehicles of less than 5.1 tons.


H1 2019 Financial ResultsClotilde DelbosEVP, Group Chief Financial Officer

02


2,079

1,071

372 304214

118

1,939

1,071

353220 206

90

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

Groupe Renault’s Sales H1 2019 vs H1 2018

Thousand units

(PC+LCV)

World Market Share:

International

TIV*

GROUP

4.4%

-13.9%

Global Europe EurasiaAfrica-ME-India-

PacificAmericas China

-7.1% -2.5% -10.4% -8.4% -6.5% -12.6%

-6.7% -0.0% -5.2% -27.7% -3.9% -23.8%

* PC+LCV including USA & Canada



In million euros H1 2018 H1 2019 Change

Group Revenues 29,957 28,050 -6.4%

Operating profit 1,914 1,654 -260

% of Group revenues 6.4% 5.9% -0.5 pts

Other operating income & expenses -180 -133 +47

EBIT 1,734 1,521 -213

Net financial income & expenses -121 -184 -63

Associated companies 814 -35 -849

Current & deferred taxes -387 -254 +133

Net income 2,040 1,048 -992


H1 2019 Group Revenues


Global unit sales (units) 2,078,675 1,938,579 -6.7%

Group revenues 29,957 28,050 -6.4%

o/w Automotive excl. AVTOVAZ 26,867 24,791 -7.7%

o/w AVTOVAZ(1) 1,477 1,557 +5.4%

o/w Sales Financing 1,613 1,702 +5.5%

Q1 Q2

-6.3% -8.8%

(1) AVTOVAZ net of eliminations


Currency

Volume

Geographicmix

Sales topartners

Others

-7.7%

-4.6 pts -0.1 pts -0.1 pts +1.0 pt -1.2 pts +0.4 pts

Price

-3.1 pts

H1 2018 H1 2019

Productmix

26,867

-1,229

-823+257

-30-34

+95-312

(million euros)

Change H1 2019 vs H1 2018: -€2,076m

Automotive Excluding AVTOVAZ Revenues Variance Analysis

24,791



Group operating profit % of Group revenues

1,9146.4%

1,6545.9%

-260-0.5 pts

o/w Automotive excl. AVTOVAZ% of segment revenues

1,2154.5%

9814.0%

-234-0.5 pts

o/w AVTOVAZ(1) 105 82 -23

o/w Sales Financing 594 591 -3

H1 2019 Operating Profit by Activity



Currency

Volume & partners

Mix / Net Enrichment

G&A

RCI Banque& others

Monozukuri

Raw materials

AVTOVAZ(1)

+385

-95

+56-231,914

+23

+78

-213

-471

Change H1 2019 vs H1 2018 : -€260m

H1 2018 H1 2019(million euros)

Group Operating Profit Variance Analysis


1,654


+258

-24

+208

-57+23

G&AManufacturing

& Logistics

R&DWarrantyPurchasing

Monozukuri

(million euros)

Change H1 2019 vs H1 2018: +€408m

Cost Reduction Analysis Excluding AVTOVAZ


Currency

Volume & partners

Mix / Net Enrichment

G&A

RCI Banque& others

Monozukuri

Raw materials

AVTOVAZ(1)

+385

-95

+56-231,914

+23

+78

-213

-471

Change H1 2019 vs H1 2018 : -€260m

H1 2018 H1 2019(million euros)

Group Operating Profit Variance Analysis


1,654


H1 2018 H1 2019

New financings (€bn) 11.1 10.9

Average performing assets (€bn) 43.7 46.7

Net banking income 4.54% 4.35%

Cost of risk (customer & dealer) -0.37% -0.40%

Operating expenses -1.37% -1.36%

Pretax income 2.85% 2.62%

Operating profit (€m) 594 591

(in percentage of average performing assets)

RCI Banque


In million euros H1 2018 H1 2019

Net restructuring costs -187 -117

Impairment of assets -34 -12

Capital gain/loss on disposal of fixed assets +46 +3

Others -5 -7

Total other operating income & expenses -180 -133

Other Operating Income & Expenses




Group Revenues 29,957 28,050 -6.4%




EBIT 1,734 1,521 -213




Net income 2,040 1,048 -992



NISSAN 805 -21 -826

Others 9 -14 -23

Total associated companies 814 -35 -849

Associated Companies

Q1 Q2

-56 +35




Group Revenues 29,957 28,050 -6.4%




EBIT 1,734 1,521 -213




Net income 2,040 1,048 -992


Net tangible& intangibleinvestments

-2,910

Capitalized

R&D

-984

Net capex

-1,442

Operational free

cash flow

Cash flow Change

in WCR

Dividendspaid

Net Change

w/oIFRS 16

transition

Dividends received

fromlisted co.

Financial investments

& others

December 31, 2018: €3,702m

January 1st, 2019: €3,069m*

June 30, 2019: €1,470m

(million euros)

LeasedVehicles -484

Others fromAVTOVAZ

AVTOVAZFCF

Automotive Net Financial Position

Excl. AVTOVAZ

-131

2,274

+51

-716+473 -1,077

-912 -132

-1,599-147

-2,232

Net Change

withIFRS 16impactIFRS 16

transition impact

-633

* IFRS 16 impact at transition date -€633m


(In thousand units)

New Vehicle Distribution Stock Excluding Avtovaz

Group

Independentdealers

Total

Number of days of sales (backward)

618 603 613

697660

588622

656 630

207

273

190

340

236285

182

300

218

411

330

423357

424

303

440

356412

JUN'17 SEP'17 DEC'17 MAR'18 JUN'18 SEP'18 DEC'18 MAR'19 JUN'19

63 71 57 76 61 69 70 76 65


Questions & Answers

03

H1 2019 Financial Results - Renault...INVESTOR RELATIONS –H1 2019 PRESENTATION JULY 26, 2019...

Documents

Transcript of H1 2019 Financial Results - Renault...INVESTOR RELATIONS –H1 2019 PRESENTATION JULY 26, 2019...