h1 2020 financial results...investor relations –h1 2020 presentation july 30, 2020 property of...

PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – H1 2020 PRESENTATION JULY 30, 2020

H1 2020 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.


02 H1 2020 Financial ResultsClotilde DelbosDeputy Chief Executive OfficerGroup Chief Financial Officer

Agenda

03 Questions & Answers

01 CEO introductionLuca de MeoChief Executive Officer


CEO IntroductionLuca de MeoChief Executive Officer

01


H1 2020 Financial ResultsClotilde DelbosDeputy Chief Executive Officer

Group Chief Financial Officer

02


▪ COVID-19 crisis impact

▪ Market slowdown even before the COVID-19 crisis

▪ Too high costs

▪ Adverse Forex & Raw materials

▪ Pricing discipline

▪ RCI resilience

Key Take-Aways

H1 : An unprecedented situation


▪ 2o22 plan project

▪ Electrified line-up

▪ RCI Bank & Services

▪ Liquidity reserves

Levers for recovery:

Key Take-Aways


1,931

1,071

346218 206

90

1,257

624

297151 114 71

2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020

Groupe Renault’s Sales H1 2020 vs H1 2019

Thousand units

(PC+LCV)

World Market Share:

International

TIV*

GROUP

4.0%

-26.4%

Global Europe EurasiaAfrica-ME-India-

PacificAmericas China

-28.3% -38.9% -14.1% -29.9% -37.7% -20.7%

-34.9% -41.8% -14.1% -30.8% -44.7% -21.1%

* PC+LCV including USA & Canada



In million euros H1 2019 H1 2020 Change

Group Revenues 28,050 18,425 -34.3%

Operating profit 1,654 -1,203 -2,857

% of Group revenues 5.9% -6.5% -12.4 pts

Other operating income & expenses -133 -804 -671

EBIT 1,521 -2,007 -3,528

Net financial income & expenses -184 -214 -30

Associated companies -35 -4,892 -4,857

Current & deferred taxes -254 -273 -19

Net income 1,048 -7,386 -8,434


H1 2020 Group Revenues


Global unit sales (units) 1,931,052 1,256,658 -34.9%

Group revenues 28,050 18,425 -34.3%

o/w Automotive excl. AVTOVAZ 24,791 15,727 -36.6%

o/w AVTOVAZ(1) 1,557 1,089 -30.1%

o/w Mobility Services - 9 -

o/w Sales Financing 1,702 1,600 -6.0%

Q1 Q2

-21.3% -48.6%(1) AVTOVAZ net of eliminations

(2) New segment as of 01/01/2020

(2)


28,050

18,425

-9,064

-468 + 9 -102

Groupe Renault

Currency

Volume

Geographicmix

Sales topartners

Others

-36.6%-29.6 pts +0.2 pts +0.4 pts +2.0 pts -1.5 pts -0.8 pts

Price

-7.3 pts

H1 2019 H1 2020

Productmix

24,791

-7,335

-1,804

+496+88+57

-204-362

(million euros)

Change H1 2020 vs H1 2019: -€9,064m

Automotive Excluding AVTOVAZ Revenues Variance Analysis

15,727

H1 2020H1 2019

Automotive

AvtovazMobility

Services RCI



Group operating profit % of Group revenues

1,6545.9%

-1,203-6.5%

-2,857-12.4 pts

o/w Automotive excl. AVTOVAZ% of segment revenues

9814.0%

-1,648-10.5%

-2,629-14.5 pts

o/w AVTOVAZ(1) 82 -2 -84

o/w Mobility Services(2) - -22 -22

o/w Sales Financing 591 469 -122

H1 2020 Operating Profit by Activity

(1) AVTOVAZ net of eliminations

(2) New segment as of 01/01/2020


Currency

Volume & partners

Mix / Net EnrichmentG&A

RCI Banque& others

Monozukuri

Raw materials

AVTOVAZ(1)

-40 -203

-294

-84

1,654

+133

-201

-90

-2,078

Change H1 2020 vs H1 2019 : -€2,857m

H1 2019

H1 2020(million euros)

Group Operating Profit Variance Analysis


-1,203


+122

+50

-133

-79+133

G&AManufacturing

& Logistics

R&DWarrantyPurchasing

Monozukuri

(million euros)

Change H1 2020 vs H1 2019: +€93m

Cost Reduction Analysis Excluding AVTOVAZ


Currency

Volume & partners

Mix / Net EnrichmentG&A

RCI Banque& others

Monozukuri

Raw materials

AVTOVAZ(1)

-40 -203

-294

-84

1,654

+133

-201

-90

-2,078

Change H1 2020 vs H1 2019 : -€2,857m

H1 2019

H1 2020(million euros)

Group Operating Profit Variance Analysis


-1,203


H1 2019 H1 2020

New financings (€bn) 10.9 7.7

Average performing assets (€bn) 46.7 48.1

Net banking income 4.35% 4.22%

Cost of risk (customer & dealer) -0.40% -0.99%

Operating expenses -1.36% -1.29%

Pretax income 2.62% 1.98%

Operating profit (€m) 591 469

(in percentage of average performing assets)

RCI Banque


In million euros H1 2019 H1 2020

Restructuring costs -117 -166

Impairment of PP&E*, intangible assets and goodwill -12 -445

Capital gain/loss on disposal of assets +3 -153

Others -7 -40

Total other operating income & expenses -133 -804

Other Operating Income & Expenses

* Property, Plant and Equipment




Group Revenues 28,050 18,425 -34.3%




EBIT 1,521 -2,007 -3,528




Net income 1,048 -7,386 -8,434



NISSAN -21 -4,817 -4,796

Others -14 -75 -61

Total associated companies -35 -4,892 -4,857

Associated Companies

Q1 Q2

-3,573 -1,244




Group Revenues 28,050 18,425 -34.3%




EBIT 1,521 -2,007 -3,528




Net income 1,048 -7,386 -8,434


Net tangible& intangibleinvestments

-2,543

Capitalized R&D

Net capex

-1,421

Operational free

cash flow

Cash flow*

Changein WCR

Dividendspaid

Net Change

Dividends received

fromlisted co. Financial

investments & others

December 31, 2019: +€1,734m

June 30, 2020: - €4,998m

(million euros)

Leased vehicles -464 Forex IFRS 16 impact

AVTOVAZFCF*

Automotive Net Financial Position

Excl. AVTOVAZ

-3,829

+22

+110

-6,375

0

-912

-427

-6,732

+77

-7

-658Restructuring

-135

* w/o restructuring


660588

622 656 630603 599

660

547

236

285

182

300

218

290

157

270

189

424

303

440

356412

313

442390

358

JUN'18 SEP'18 DEC'18 MAR'19 JUN'19 SEP'19 DEC'19 MAR'20 JUN'20

(In thousand units)

New Vehicle Distribution Stock Excluding Avtovaz

Group

Independentdealers

Total

Number of days of sales (backward)

61 69 70 76 65 75 68 109 107


2o22 Cost Reduction Project on Track

2020 perspective in line with cost

reduction objective for the year (30%)H1 2020

ENGINEERING

SG&A

PRODUCTION

€433m

✓

1- Execution of the €2bn reduction plan does not rely on new Alliance projects or external factors like market growth

2- Includes production labor cost savings


▪ E-TECH

▪ Pricing management

▪ Government incentives impact

▪ Pace of market recovery

▪ Content costs

▪ Covid-19 evolution

H2 2020 Risks & Opportunities

Risks Opportunities


Questions & Answers

03

h1 2020 financial results...investor relations –h1 2020 presentation july 30, 2020 property of...

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