q3 2018 conference...investor relations –q3 2018 presentation october 23rd 2018 property of groupe...
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PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
Q3 2018 CONFERENCE
PROPERTY OF GROUPE RENAULT 2INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 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 – Q3 2018 PRESENTATION OCTOBER 23RD 2018
01 Q3 2018 COMMERCIAL RESULTS UPDATETHIERRY KOSKASEVP, SALES & MARKETING
02 Q3 2018 REVENUES & OUTLOOKCLOTILDE DELBOSEVP & CFO
03 QUESTIONS & ANSWERS
AGENDA
PROPERTY OF GROUPE RENAULT 4INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
KEY TAKE-AWAYS
▪ WLTP WELL MANAGED
▪ PRE BUYING IMPACT IN Q3 EUROPEAN MARKET
▪ STRONG EFFORT TO COMPENSATE ADVERSE FX THROUGH PRICE INCREASES
▪ SHARP DECREASE IN DEMAND IN SOME OF OUR KEY MARKETS
▪ RISK: LOW VISIBILITY FOR Q4 IN EUROPE
▪ OPPORTUNITY: RUSSIA (VAZ) & BRAZIL
▪ FULL-YEAR GUIDANCE CONFIRMED
PROPERTY OF GROUPE RENAULT 5INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
Q3 2018 COMMERCIAL RESULTS UPDATE
01
PROPERTY OF GROUPE RENAULT 6INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
* PC+LCV including USA & Canada
TIV EVOLUTION Q3 2018 VS Q3 2017
RUSSIA +9.2%
TURKEY -51.3%
ALGERIA +39.8%
MOROCCO -9.1%
IRAN -50.0%
INDIA -0.6%
BRAZIL +11.9%
ARGENTINA -24.9%
COLOMBIA +4.7%
WORLD*
TIV -2.4%
EURASIA
TIV -8.3%
AFRICA-ME-INDIA
TIV -10.7%
AMERICAS
TIV +0.2%
ASIA-PACIFIC
TIV -1.4%
EUROPE
TIV +0.8%
FRANCE +10.2%
GERMANY +1.5%
UK -9.3%
SPAIN +14.3%
ITALY -7.6%
CHINA -3.6%
SOUTH KOREA -2.9%
PROPERTY OF GROUPE RENAULT 7INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
GROUPE RENAULT’S UNIT REGISTRATIONS Q3 2018 VS Q3 2017
K units
(PC+LCV)
WORLD MARKET SHARE: 4.0% +0.2pts
TIV -3.0% GROUP -2.0% with J/H
-10.4% w/o J/H
Renault, Dacia, Lada, RSM, Alpine
Renault, Dacia, Lada, RSM, Alpine
Jinbei, Huasong (J/H)
GLOBAL EUROPE EURASIA AMI AMERICAS ASPA
GROUP with JH +2.9% +8.6% -5.6% -24.4% +0.2% +72.0%
GROUP w/o JH -1.7% -14.8%
TIV -2.4% +0.8% -8.3% -10.7% +0.2% -1.4%
INTERNATIONAL
PROPERTY OF GROUPE RENAULT 8INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
36% 42%48%
55% 52%48%
REGIONAL SALES BREAKDOWN
WEIGHT OF INTERNATIONAL SALES
TOP 10 MARKETS BY VOLUME Q3 (in K units)
01
02
03
04
05
06
07
08
09
10
Volume
Q3 2018
Market
share
vs.
Q3 2017
FRANCE 142 25.0% -0.3pts
RUSSIA 122 27.2% -1.1pts
GERMANY 64 7.1% +1.3pts
BRAZIL 58 9.0% +0.5pts
CHINA (incl. JH) 50 0.8% +0.5pts
SPAIN 47 13.1% -0.0pts
ITALY 43 10.6% +1.1pts
ARGENTINA 26 14.7% +0.4pts
IRAN 24 12.4% +1.3pts
UNITED KINGDOM 23 3.4% -0.4pts
PC+LCV
55% 52% 48% 46% 48% 54% 52%
45% 48% 52% 54% 52% 46% 48%
Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018
International Europe
PROPERTY OF GROUPE RENAULT 9INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
REGIONAL SALES BREAKDOWN
46% 48%
15% 11%
21%20%
13%12%
5% 9%
Q3 2017 Q3 2018
Group salesPC+LCV - Q3
EUROPE AFRICA MIDDLE EAST INDIA EURASIA AMERICAS ASIA PACIFIC
PROPERTY OF GROUPE RENAULT 10INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
Duster 1st SUV in Europe PC Retail (All SUV segments–YTD August 2018)
KWID AMERICASIn A-segment
▪ BRAZIL : #2
▪ ARGENTINA : #2
DUSTER & NEW DUSTERIn C-Crossover segment
▪ FRANCE : #2
▪ EUROPE : #4
EV CO-LEADER WITH
NISSAN IN EUROPE
NEW MODELS – PERFORMANCE YTD SEPTEMBER 2018
ALPINE
▪ 5,250 reservations in
Europe.
▪ Launch in Australia &
Japan.
PROPERTY OF GROUPE RENAULT 11INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
Q3 2018 REVENUES & OUTLOOK
02
PROPERTY OF GROUPE RENAULT 12INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
Q3 2018 GROUP REVENUES
In million eurosQ3 2017 Q3 2018 CHANGE CHANGE
at constant
exchange rate
GLOBAL UNIT SALES (units) 866,546 891,539* +2.9%*
GROUP REVENUES 12,218 11,484 -6.0% -1.4%
o/w AUTOMOTIVE 10,974 10,057 -8.4%** -4.4%**
o/w AVTOVAZ*** 634 627 -1.1% +11.4%
o/w SALES
FINANCING610 800 +31.1%** +37.1%**
* Including Jinbei & Huasong. Change without Jinbei & Huasong registrations: -1.7%
**Impact of the change in the accounting treatment of interest rate subsidies : -€142m on the Automotive excluding AVTOVAZ segment / +€142m on sales financing
*** AVTOVAZ net of eliminations
Nota Bene: revenues do not take into account the application of the requirements of IAS 29 - Financial Reporting in Hyperinflationary Economy for our business in Argentina, as
the implementation of this standard has not yet been completed. This standard will be applied in our 2018 full year financials effective retroactively from January 1st, 2018.
PROPERTY OF GROUPE RENAULT 13INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
Currency
Volume Geographic
mix
Sales to
partners
Others*
-8.4%
-2.6 pts +0.7 pts +0.2 pts +1.6 pts -4.0 pts -1.0 pt
Price
-3.3 pts
CHANGE Q3 2018 vs Q3 2017: -€917m
Q3 2017 Q3 2018
(million euros)
Product
mix
*
10,974
-285 -358+181+19
+76
-106
REVENUES VARIANCE ANALYSIS
-241
10,057
-444
* Including a change in the accounting treatment of interest rate subsidies : -€142m on the Automotive excluding AVTOVAZ segment / +€142m on sales financing
AUTOMOTIVE EXCLUDING AVTOVAZ
Q3 2018Q3 2017
-917*o/w FX
- 444
-7o/w FX
-79
+190*o/w FX
-36
Automotive
Avtovaz
Sales
Financing
11,484
GROUPE RENAULT
12,218
PROPERTY OF GROUPE RENAULT 14INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
591565
670620 609 613
697660
588
267
166
326
209
275
190
340
236286
324399
344
411
334
423
357
424
302
SEP'16 DEC'16 MAR'17 JUN'17 SEP'17 DEC'17 MAR'18 JUN'18 SEP'18
GROUP
INDEPENDENTDEALERS
TOTAL
Number of days of sales
(backward)
(IN K UNITS)
76 59 78 63
NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ
6171 57 76 68
PROPERTY OF GROUPE RENAULT 15INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
RCI BANQUE PERFORMANCE
Q3 2017 Q3 2018 CHANGE
REVENUES (€m) 610 800* +31.1%*
AVERAGE PERFORMING ASSETS (€m) 40,132 45,311 +12.9%
NEW CONTRACTS (units) 435,066 424,004 -2.5%
NEW FINANCINGS (€m) 5,022 5,016 -0.1%
*Impact of the change in the accounting treatment of interest rate subsidies : +€142m on sales financing
PROPERTY OF GROUPE RENAULT 16INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
2018 TIV OUTLOOKRUSSIA>+10%
CHINA+2%
INDIA+8%
BRAZIL+10%
FRANCE>+4%
EUROPE>+1.5%
GLOBAL TIV*
+2%
* PC+LCV including USA & Canada
PROPERTY OF GROUPE RENAULT 17INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 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 18INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
QUESTIONS & ANSWERS
03
PROPERTY OF GROUPE RENAULT 19INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
APPENDIX
04
PROPERTY OF GROUPE RENAULT 20INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
2,749
1,423
380508
292145
2,971
1,503
349546
325 248
2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018
K units
(PC+LCV)
GROUPE RENAULT’S UNIT REGISTRATIONS YTD 2018 VS YTD 2017
GLOBAL EUROPE AMI EURASIA AMERICAS ASPA
GROUP with JH +8.1% +5.6% -8.3% +7.5% +11.3% +70.3%
GROUP w/o JH +3.5% -14.8%
TIV +1.8% +2.3% +2.6% +3.1% +4.0% +2.0%
INTERNATIONAL: +10.7% with JH
WORLD MARKET SHARE: 4.3% (+0.2pts)
PROPERTY OF GROUPE RENAULT 21INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
Q3 2018 YTD GROUP REVENUES
In million eurosQ3 2017
YTD
Q3 2018
YTDCHANGE
GLOBAL UNIT SALES (Kunits) 2,749 2,971* +8.1%*
GROUP REVENUES 41,755 41,441 -0.8%
o/w AUTOMOTIVE 37,969 36,924 -2.8%**
o/w AVTOVAZ*** 1,925 2,104 +9.3%
o/w SALES FINANCING 1,861 2,413 +29.7%**
* Including Jinbei & Huasong. Change without Jinbei & Huasong registrations: +3.5%
** Impact of the change in the accounting treatment of interest rate subsidies : -€420m on the Automotive excluding AVTOVAZ segment / +€420m on sales financing
*** AVTOVAZ net of eliminations
Nota Bene: Revenues do not take into account the application of the requirements of IAS 29 - Financial Reporting in Hyperinflationary Economy for our business in Argentina, as
the implementation of this standard has not yet been completed. This standard will be applied in our 2018 full year financials effective retroactively from January 1st, 2018.
PROPERTY OF GROUPE RENAULT 22INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
CurrencyVolume
Geographic
mix
Sales to
partners
Others
-2.8%
+1.5 pts -0.1 pts +0.1 pts +1.3 pts -4.4 pts +0.0 pts
Price
-1.2pts
CHANGE Q3 YTD 2018 vs Q3 YTD 2017: -€1,045m
Q3 2017
YTD
Q3 2018
YTD
(million euros)
Product
mix
36,924*37,969
+554
-453+505
+42-43
+34*
AUTOMOTIVE EXCLUDING AVTOVAZ REVENUES VARIANCE ANALYSIS
-1,684
* Including a change in the accounting treatment of interest rate subsidies for -420 €m on the Automotive excluding AVTOVAZ segment
PROPERTY OF GROUPE RENAULT 23INVESTOR RELATIONS – Q3 2018 PRESENTATION OCTOBER 23RD 2018
RCI BANQUE PERFORMANCE YTD
Q3 2017YTD
Q3 2018
YTDCHANGE
REVENUES (€m) 1,861 2,413* +29.7%*
AVERAGE PERFORMING ASSETS (€m) 39,091 44,238 +13.2%
NEW CONTRACTS (units) 1,317,692 1,371,150 +4.1%
NEW FINANCINGS (€m) 15,374 16,071 +4.5%
* Impact of the change in the accounting treatment of interest rate subsidies : +€420m on sales financing