h1 2018 financial results - renault · investor relations –h1 2018 presentation july 27th 2018...

PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – H1 2018 PRESENTATION JULY 27TH 2018

H1 2018 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 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 COO HIGHLIGHTS & OUTLOOKTHIERRY BOLLORÉEVP & COO

04 QUESTIONS & ANSWERS

AGENDA

02 H1 2018 FINANCIAL RESULTSCLOTILDE DELBOSEVP & CFO

03 H2 2018 RISKS & OPPORTUNITIESTHIERRY BOLLORÉEVP & COO


COO HIGHLIGHTS & OUTLOOK

01


H1 2017 H1 2018

H1 2018 RECORD RESULTS

GLOBAL SALES+9.8%*

RECORD SALESin million units

H1 2017 H1 2018

GROUP TURNOVER+1.4%

RECORD REVENUESin billion euros

1.9

2.1*

29.530.0

* Including Jinbei & Huasong. Change without Jinbei & Huasong registrations: +5.3%


H1 2018 RECORD RESULTS

H1 2017 H1 2018

GROUP OPERATING MARGIN+0.2 pts

RECORD OPERATING PROFITin million euros

1,820

1,914*

H1 2017 H1 2018

OPERATING FREE CASH FLOW

358

418

POSITIVE FREE CASH FLOW in million euros

* Including IFRS15 impact for - €70m

6.2%

6.4%*


Duster 1st SUV in Europe PC Retail (All SUV segments–YTD May 2018)

KWID AMERICASIn A-segment

BRAZIL : #2

ARGENTINA : #2

DUSTER & NEW DUSTERIn C-Crossover segment

FRANCE : #2

EUROPE : #5

EV LEADER IN EUROPE

#1 on the EV Market (PC & LCV)

with ZOE & Kangoo ZE

NEW MODELS – PERFORMANCE YTD JUNE 2018

ALPINE

4800 reservations since

launch.


H1 2016* H1 2017 H1 2018

CAPEX AND R&DIn million euros and in % of Group revenues

* without AVTOVAZ

1,4791,2921,146

1,126

873842

Net R&D Expenses

Net CAPEX

2,605

8.7%

2,165

7.3%

1,988

7.9%


2018 TIV OUTLOOKRUSSIA>+10%

CHINA+5%

INDIA+8%

BRAZIL+10%

FRANCE+2%

EUROPE+1.5%

GLOBAL TIV*

+3%* PC+LCV including USA & Canada


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



02


1,882

1,026323

252182

100

1,982

1,071

372240

21486

85

85

GROUPE RENAULT’S UNIT REGISTRATIONS H1 2018 VS H1 2017

K units

(PC+LCV)

WORLD MARKET SHARE: 4.3% +0.2pts

INTERNATIONAL +6.4% w/o J/H

+16.4% with J/H

GLOBAL

+4.2%

EUROPE

+2.8%

AMERICAS

+6.3%

ASIA-PACIFIC

+4.3%

AFRICA-ME-INDIA

+10.1%

EURASIA

+9.4%TIV

+4.4% +15.1% -4.5% +18.1% GROUP +5.3% w/o J/H

+9.8% with J/H

-14.8% w/o J/H

+69.5% with J/H

Renault, Dacia, Lada, RSM, Alpine

Renault, Dacia, Lada, RSM, Alpine

Jinbei, Huasong (J/H)



In million euros H1 2017 H1 2018 CHANGE

REVENUES 29,537 29,957 +1.4%

OPERATING PROFIT 1,820 1,914 +94

% OF GROUP REVENUES 6.2% 6.4% +0.2 pts

OTHER OPERATING INCOME & EXPENSES -31 -180 -149

EBIT 1,789 1,734 -55

NET FINANCIAL INCOME & EXPENSES* -187 -121 +66

ASSOCIATED COMPANIES 1,317 814 -503

CURRENT & DEFERRED TAXES* -482 -387 +95

NET INCOME* 2,437 2,040 -397

* 2017 restatement related to allocation of the purchase price paid for the AVTOVAZ Group and Renault SA redeemable shares


H1 2018 GROUP REVENUES


GLOBAL UNIT SALES (units) 1,882,391 2,067,695* +9.8%*

GROUP REVENUES 29,537 29,957 +1.4%

o/w AUTOMOTIVE 26,995 26,867 -0.5%**

o/w AVTOVAZ*** 1,291 1,477 +14.4%

o/w SALES FINANCING 1,251 1,613 +28.9%**

Q1 Q2

-2.5% +1.1%

* Including Jinbei & Huasong. Change without Jinbei & Huasong registrations: +5.3 %

**Change in the accounting treatment of interest rate subsidies : -€278m on the Automotive excluding AVTOVAZ segment / +€278m on sales financing

*** AVTOVAZ net of eliminations


CurrencyVolume

Geographic

mix

Sales to

partners

Others*

-0.5%

+3.1 pts -0.4 pts +0.1 pts +1.2 pts -4.6 pts +0.5 pts

Price

-0.4 pts

CHANGE H1 2018 vs H1 2017: -€128m

H1 2017 H1 2018

(million euros)

Product

mix

26,867*26,995

+839

-95+324

+23-119

+140

-1,240

AUTOMOTIVE EXCLUDING AVTOVAZ REVENUES VARIANCE ANALYSIS

* Including a change in the accounting treatment of interest rate subsidies for -€278m on the Automotive excluding AVTOVAZ segment


+254

-56

-192 +184

+160

+10

-368

+102

CurrencyVolume &

partners

Mix / Net Enrichment

G&A

RCI Banque

& others*

COST

REDUCTION

+€198m

H1 2017

MonozukuriRaw

materials

GROWTH

+€170m

(million euros)

AVTOVAZ**

CHANGE H1 2018 vs H1 2017 : +€94m


**AVTOVAZ net of eliminations

1,820

1,914*

H1 2018

GROUP OPERATING PROFIT VARIANCE ANALYSIS


+361

+30-28

-109

-56

CHANGE H1 2018 vs H1 2017: +€198m

G&AManufacturing &

Logistics

R&DWarrantyPurchasing

Monozukuri

(million euros)

COST REDUCTION ANALYSIS EXCLUDING AVTOVAZ


+254

-56

-192 +184

+160

+10

-368

+102

CurrencyVolume &

partners

Mix / Net Enrichment

G&A

RCI Banque

& others*

COST

REDUCTION

+€198m

H1 2017

MonozukuriRaw

materials

GROWTH

+€170m

(million euros)

AVTOVAZ**

CHANGE H1 2018 vs H1 2017 : +€94m



1,820

1,914*

H1 2018

GROUP OPERATING PROFIT VARIANCE ANALYSIS



GROUP OPERATING PROFIT

% GROUP REVENUES

1,8206.2%

1,914*6.4%

+94+0.2pts

o/w AUTOMOTIVE

% AUTOMOTIVE REVENUES

1,2924.8%

1,215*4.5%

-77-0.3pts

o/w AVTOVAZ** 3 105 +102

o/w SALES FINANCING 525 594 +69

H1 2018 OPERATING PROFIT BY ACTIVITY




H1 2017 H1 2018

NEW FINANCINGS (€Bn) 10.4 11.1

AVERAGE PERFORMING ASSETS (€Bn) 38.6 43.7

NET BANKING INCOME 4.44% 4.54%

COST OF RISK (CUSTOMER & DEALER) -0.29% -0.37%

OPERATING EXPENSES -1.37% -1.37%

PRETAX INCOME 2.83% 2.85%

OPERATING PROFIT (€m) 525 594

RCI BANQUE

(in percentage of average performing assets)

* From 2018 Cost of risk includes IFRS9 standards

*


In million euros H1 2017 H1 2018

NET RESTRUCTURING COSTS -65 -187

IMPAIRMENT OF ASSETS -13 -34

CAPITAL GAIN/LOSS ON DISPOSAL OF FIXED ASSETS +64 +46

OTHERS -17 -5

TOTAL OTHER OPERATING INCOME & EXPENSES -31 -180

OTHER OPERATING INCOME & EXPENSES (INCL. AVTOVAZ)




REVENUES 29,537 29,957 +1.4%




EBIT 1,789 1,734 -55




NET INCOME* 2,437 2,040 -397




NISSAN 1,288 805 -483

OTHERS 29 9 -20

TOTAL ASSOCIATED COMPANIES 1,317 814 -503

ASSOCIATED COMPANIES

Q1 Q2

478 327




REVENUES 29,537 29,957 +1.4%




EBIT 1,789 1,734 -55




NET INCOME* 2,437 2,040 -397



2,314

418

-147

212

60

422

-1,102

-261 376

Net tangible& intangible

investments

-2,168

Capitalized

R&D

-791

Net capex

-1,165

Operational free

cash flow

Cash flow

Changein WCR

Dividendspaid

Net change

Dividends received

fromlisted co.

Financial investments

& others

DEC 31, 2017 : €3,209m*

JUNE 30, 2018 : €3,062m

(million euros)

LeasedVehicles -212

AVTOVAZother

evolutions

AVTOVAZFCF

AUTOMOTIVE INCLUDING AVTOVAZ NET FINANCIAL POSITION

Excl. AVTOVAZ

* Restated to include an adjustment of +€281m related to Renault SA redeemable shares


571 591564

670618 609 613

697665

200

267

165

327

208

276

190

340

237

371324

399343

410

333

423

357

428

JUN'16 SEP'16 DEC'16 MAR'17 JUN'17 SEP'17 DEC'17 MAR'18 JUN'18

GROUP

INDEPENDENTDEALERS

TOTAL

Number of days of sales

(backward)60

(IN K UNITS)

76 59 78 63

NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ

6271 57 76


H2 2018 RISKS & OPPORTUNITIES

03


H2 2018 RISKS & OPPORTUNITIES

REGULATION’S IMPACT ON DEMAND

EMERGING MARKETS VISIBILITY

FOREX

IRAN

GROUP’S REACTIVITY IN A CHANGING ENVIRONMENT

NEW PRODUCTS (DUSTER, KWID)

PRICE INCREASES

RUSSIA / AVTOVAZ


QUESTIONS & ANSWERS

04

h1 2018 financial results - renault · investor relations –h1 2018 presentation july 27th 2018...

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