groupe renault h1 2017 financial results conference · 2017-07-28 · investor relations –h1...

PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – H1 RESULTS PRESENTATION JULY 28TH 2017

GROUPE RENAULT

H1 2017 FINANCIAL RESULTS CONFERENCE


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.


01 H1 2017 COMMERCIAL UPDATE

02 H1 2017 FINANCIAL RESULTS & OUTLOOK

03 QUESTIONS & ANSWERS

AGENDA


HIGHLIGHTS

ROBUST GROWTH IN ALL REGIONS

STRONG CONTRIBUTION FROM SALES TO PARTNERS

COST SAVINGS BACK ON TRACK

NEGATIVE MIX NET PRICE ENRICHMENT

AVTOVAZ IN A RECOVERY MODE


H1 2017 COMMERCIAL UPDATE

01


1,703

971

209 298158

67

1,879

1,025

249 323182

100

2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017

GROUPE RENAULT’S UNIT REGISTRATIONS H1 2017 VS H1 2016 (incl. Lada)

K units

(PC+LCV)

WORLD MARKET SHARE: 4.1% (+0.3pts)

INTERNATIONAL +16.8%

GLOBAL

+10.4%

+10.2%

EUROPE

+5.6%

+5.5%

AMERICAS

+14.6%

+14.5%

ASIA-PACIFIC

+50.5%

+49.5%

AFRICA-ME-INDIA

+19.3%

+19.1%

EURASIA

+8.6%

+6.8%

+2.6% TIV +4.4% +2.5% -0.3% +8.3% +3.6%

GROUP

GROUP excl. Lada


36% 42%48%

55% 52%48%

H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 H1 2017incl. Lada

40% 50% 43% 39%47% 38%

INTERNATIONALEUROPE

60% 50% 57% 61%53% 62%

REGIONAL SALES BREAKDOWN

WEIGHT OF INTERNATIONAL SALES INCREASING

TOP 10 MARKETS BY VOLUME YTD (in K units)

excl. Lada

41% 45%

59% 55%

01

02

03

04

05

06

07

08

09

10

Volume

H1 2017

Market

share

vs.

H1 2016

FRANCE 368 27.0 % -0.5 pts

RUSSIA 201 28.0 % +1.7 pts

ITALY 122 10.0 % +0.3 pts

GERMANY 116 6.0 % +0.7 pts

SPAIN 89 11.6 % -0.6 pts

TURKEY 75 18.7 % +0.7 pts

BRAZIL 73 7.4 % +0.1 pts

IRAN 68 9.8 % +4.0 pts

UK 67 4.2 % -0.2 pts

ARGENTINA 58 13.3 % +1.1 pts

PC+LCV


EUROPE REGION (incl. Lada) GROUP PC+LCV : BREAKDOWN OF REGISTRATIONS

+32

+88

GROUP ORDER BOOK PC + LCV (excl. Lada)

H1’15

H1’16

969

849

9711,025

H1 2016 TIV PERF Q1 2016

+4

TIV

& MARKET MIX

PERFORMANCE+36H1’16

H1’17

K units

(PC+LCV) +50

Figures rounded to the nearest thousand

55%

13%

17%

10%5%

H1 2017 SALES BY REGION

Europe AMI Eurasia Americas Asia-Pacificjuin-07 juin-08 juin-09 juin-10 juin-11 juin-12 juin-13 juin-14 juin-15 juin-16 juin-17


EURASIA REGION (incl. Lada)

-4 +3

+13

H1’15 H1’16

159 166

TOP 3 MARKETS BY VOLUME

55%

13%

17%

10%5%


Europe AMI Eurasia Americas Asia-Pacific

298

323

H1 2016 TIV PERF PERFLADA

H1 2017

-4 +3PERFORMANCETIV

& MARKET MIX

+6

+10

H1’16

H1’17K units

(PC+LCV) +9Lada

PERFORMANCE


GROUP PC+LCV : BREAKDOWN OF REGISTRATIONS

H1 2017Weight in

the region

RUSSIA 201,065 62%

TURKEY 75,130 23%

ROMANIA 25,188 8%

(units)



AFRICA MIDDLE-EAST INDIA REGION (incl. Lada)

+78

-20

H1’15

H1’16

151

209

H1 2017Weight in

the region

IRAN 68,365 27%

INDIA 57,201 23%

MOROCCO 35,365 14%

(units)


55%

13%

17%

10%5%



209249

H1 2016 TIV PERF H1 2017

+42

H1’16

H1’17

PERFORMANCETIV

& MARKET MIX

K units

(PC+LCV) -2


GROUP PC+LCV : BREAKDOWN OF REGISTRATIONS


158182

H1 2016 TIV PERF H1 2017

+5

PERFORMANCETIV

& MARKET MIX

+19

H1’16

H1’17

K units

(PC+LCV)


AMERICAS REGION (incl. Lada) GROUP PC+LCV : BREAKDOWN OF REGISTRATIONS


55%

13%

17%

10% 5%



H1 2017Weight in

the region

BRAZIL 73,416 40%

ARGENTINA 57,711 32%

COLOMBIA 23,498 13%

(units)


ASIA-PACIFIC REGION (incl. Lada) GROUP PC+LCV : BREAKDOWN OF REGISTRATIONS

55%

13%

17%

10%

5%




67100

H1 2016 TIV PERF H1 2017

H1’16

H1’17+34

TIV

& MARKET MIXPERFORMANCE

-1

K units

(PC+LCV)


H1 2017Weight in

the region

SOUTH KOREA 52,882 53%

CHINA 35,647 35%

AUSTRALIA 5,593 6%

(units)


H1 2017 FINANCIAL RESULTS & OUTLOOK

02


H1 2017 FINANCIAL RESULTS

In million euros H1 2016 H1 2017 CHANGE

REVENUES 25,185 29,537 +17.3%

OPERATING PROFIT 1,541 1,820 +279

% OF GROUP REVENUES +6.1% +6.2% +0.1 pts

OTHER OPERATING INCOME & EXPENSES -65 -31 +34

EBIT 1,476 1,789 +313

NET FINANCIAL INCOME & EXPENSES -67 -211 -144

ASSOCIATED COMPANIES 678 1,317 +639

CURRENT & DEFERRED TAXES -520 -479 +41

NET INCOME 1,567 2,416 +849

Nota Bene: AVTOVAZ accounted for by equity method in 2016 and fully consolidated in 2017


H1 2017 GROUP REVENUES


GLOBAL UNIT SALES* (units) 1,702,577 1,879,288 +10.4%

GROUP REVENUES 25,185 29,537 +17.3%

o/w AUTOMOTIVE 24,078 26,995 +12.1%

o/w AVTOVAZ** - 1,291 N/A

o/w SALES FINANCING 1,107 1,251 +13.0%

Q1 Q2

+20.1% +6.5%

* proforma 2016 to include Lada sales

** AVTOVAZ net of eliminations



Currency

Volume

Geographic

mix

Sales to

partners Others

+12.1%

+4.4 pts -0.1 pts +0.6 pts +2.3 pts +0.8 pts +1.6 pts

Price

+2.5 pts

CHANGE H1 2017 vs H1 2016: +€2,917m

H1 2016 H1 2017

(million euros)

Product

mix

26,995

24,078

+1,046

+608+550

+140-16

+395

-1,036

AUTOMOTIVE EXCLUDING AVTOVAZ REVENUES VARIANCE ANALYSIS

+194


1,8171,541

1,820

204

-44-132

-180 346

177-95 3

CurrencyVolume &

partnersMix / Net Enrichment

G&A

RCI Banque

& others

COST

REDUCTION

+€160m

H1 2016* H1 2017

incl. AVTOVAZ

Monozukuri Raw materials

GROWTH

+€523m

(million euros)

AVTOVAZ**

H1 2017

excl. AVTOVAZ

GROUP OPERATING PROFIT VARIANCE ANALYSIS

CHANGE H1 2017 vs H1 2016 : +€279m

* 2016 in previous perimeter excluding AVTOVAZ



CHANGE H1 2017 vs H1 2016: +€160m

+382

-11

-83

-84

-44

G&AManufacturing &

Logistics

R&DWarrantyPurchasing

Monozukuri

(million euros)

COST REDUCTION ANALYSIS EXCLUDING AVTOVAZ


1,8171,541

1,820

204

-44-132

-180 346

177-95 3

CurrencyVolume &

partnersMix / Net Enrichment

G&A

RCI Banque

& others

COST

REDUCTION

+€160m

H1 2016* H1 2017

incl. AVTOVAZ

Monozukuri Raw materials

GROWTH

+€523m

(million euros)

AVTOVAZ**

H1 2017

excl. AVTOVAZ

GROUP OPERATING PROFIT VARIANCE ANALYSIS

CHANGE H1 2017 vs H1 2016 : +€279m





GROUP OPERATING PROFIT

% GROUP REVENUES

1,541+6.1%

1,820+6.2%

+279+0.1pts

o/w AUTOMOTIVE

% AUTOMOTIVE REVENUES

1,121+4.7%

1,292+4.8%

+171+0.1pts

o/w AVTOVAZ* - 3 +3

o/w SALES FINANCING 420 525 +105

H1 2017 OPERATING PROFIT BY ACTIVITY

*AVTOVAZ net of eliminations



RCI BANQUE

H1 2016 H1 2017

NEW FINANCINGS (€Bn) 8.9 10.4

AVERAGE PERFORMING ASSETS (€Bn) 31.9 38.6

NET BANKING INCOME 4.39% 4.44%

COST OF RISK (CUSTOMER & DEALER) -0.30% -0.29%

OPERATING EXPENSES -1.41% -1.37%

PRETAX INCOME 2.71% 2.83%

OPERATING PROFIT (€m) 420 525

( in percentage of average performing assets)


In million euros H1 2016* H1 2017

NET RESTRUCTURING COSTS -68 -65

IMPAIRMENT OF ASSETS -2 -13

CAPITAL GAIN/LOSS ON DISPOSAL OF FIXED ASSETS -8 +64

OTHERS +13 -17

TOTAL OTHER OPERATING INCOME & EXPENSES -65 -31

OTHER OPERATING INCOME & EXPENSES (INCL. AVTOVAZ)





REVENUES 25,185 29,537 +17.3%




EBIT 1,476 1,789 +313




NET INCOME 1,567 2,416 +849




NISSAN 749 1,288 +539

AVTOVAZ -75 - +75

OTHERS 4 29 +25

TOTAL ASSOCIATED COMPANIES 678 1,317 +639

ASSOCIATED COMPANIES

Q1 Q2

811 477





REVENUES 25,185 29,537 +17.3%




EBIT 1,476 1,789 +313




NET INCOME 1,567 2,416 +849



2,089

358

-287

100

33

391

-990

-85 39

Net tangible& intangible

investments

-1,864

Capitalized

R&D

-584

Net capex

-953

Operational free

cash flow

Cash flow

Changein WCR

Dividendspaid

Net change

Dividends received

fromlisted co.

Financial investments

& others

DEC 31, 2016 : €2,720m

JUNE 30, 2017 : €2,433m

(million euros)

LeasedVehicles -327

AVTOVAZother

evolutions

AVTOVAZFCF

AUTOMOTIVE INCLUDING AVTOVAZ NET FINANCIAL POSITION

Excl. AVTOVAZ


527 520481

593 571 591 564

670618

178260

141

298

200267

165

327

208

349

260340 295

371324

399343

410

JUN'15 SEP'15 DEC'15 MAR'16 JUN'16 SEP'16 DEC'16 MAR'17 JUN'17

GROUP

INDEPENDENTDEALERS

TOTAL

Number of days of sales

(backward)

7877 5566 60

(IN K UNITS)

76

* 2015 restated

59 78 63

NEW VEHICLE DISTRIBUTION STOCK* EXCLUDING AVTOVAZ


FX VOLATILITY

RAW MATERIALS

MARKET CHANNEL MIX IN EUROPE

MONOZUKURI

RECOVERY IN RUSSIA AND BRAZIL

NEW PRODUCTS

H2 2017 RISKS & OPPORTUNITIES


OUTLOOK 2017

In 2017, the global market should see growth of around 1.5% to 2.5%. The European market

is still expected to grow 2% over the period. The French market is expected to expand by 2%.

Outside Europe, the Russian market could grow by more than 5% (versus up to 5%

previously), and the Brazilian market by 5% (versus stable previously). The growth

momentum is expected to continue in China (+5%) and India (+8%).

INCLUDING AVTOVAZ, THE GROUP CONFIRMS ITS FULL YEAR 2017 GUIDANCE:

Increase Group revenues, beyond the impact of AVTOVAZ (at constant exchange rates)*

Increase Group operating profit in euros*

Generate a positive Automotive operational free cash flow

* compared with 2016 Groupe Renault published results


QUESTIONS & ANSWERS

03

groupe renault h1 2017 financial results conference · 2017-07-28 · investor relations –h1...

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