Redburn US presentation Sept 2015

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  • RENAULT GROUP

    Redburn Roadshow

  • SEPTEMBER 2015 2

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    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 Renaults website (www.group.renault.com),

    in the section Finance / Regulated Information.

    DISCLAIMER

  • SEPTEMBER 2015 3

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    HIGHLIGHTS

    OPERATING MARGIN IMPROVEMENT

    REVENUE ACCELERATION

    FY GUIDANCE CONFIRMED

  • SEPTEMBER 2015 4

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    2015 OUTLOOK

    Global car demand should continue to grow about 1% in 2015 despite a

    significant slowdown in emerging markets. On the other hand, the European

    market should grow by at least 5%.

    Within this context, Renault confirms its guidance:

    -increase registrations and Group revenues (at constant exchange rates),

    -improve Group operating profit and that of the Automotive division,

    -achieve positive Automotive operational free cash flow.

  • SEPTEMBER 2015 5

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    H1 2015 - RENAULT KEY FIGURES

    UNIT SALES: 1,376m

    REVENUES: 22,197 m

    OPERATING PROFIT: 1,069 m

    OPERATING MARGIN: 4.8%

    ASSOCIATES : 912 m

    NET PROFIT: 1,469 m

    NET AUTO LIQUIDITY : 1,567 m

    EPS: 5,12

    DPS (2014): 1,90

  • SEPTEMBER 2015 6

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    KEY TAKE-AWAYS FROM H1 RESULTS

    RECOVERY IN EUROPE STRONGER THAN ANTICIPATED

    STRONG CONTRIBUTION OF SALES TO PARTNERS

    CONTINUING DECLINE IN SOME EMERGING MARKETS

  • SEPTEMBER 2015 7

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    RISKS & OPPORTUNITIES FOR THE SECOND HALF

    REGULATORY COST PRESSURE

    EMERGING MARKETS

    SUPPLY CHAIN

    NEW PRODUCTS

    EUROPEAN MARKET MOMENTUM

  • SEPTEMBER 2015 8

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    YTD 2015 COMMERCIAL UPDATE

    01

  • SEPTEMBER 2015 9

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    WORLD

    TIV + 0.7% (including USA/Canada)

    EURASIA

    TIV - 18%

    AMI

    TIV + 0.9%

    AMERICAS

    TIV - 10.7%

    ASIA-PACIFIC

    TIV - 0.3%

    EUROPE

    TIV + 8.8%

    SPAIN +24%

    ITALY +14%

    UK + 8%

    GERMANY + 5%

    FRANCE + 5%

    TURKEY +47%

    ROMANIA +14%

    KAZAKHSTAN -35%

    RUSSIA -33%

    UKRAINE -60%

    EGYPT +5%

    INDIA +5%

    IRAN +3%

    MOROCCO +1%

    ALGERIA -24%

    MEXICO +19%

    COLOMBIA -6%

    BRAZIL -20%

    ARGENTINA -13%

    CHINA +2%

    S. KOREA +8%

    AUSTRALIA +3%

    JAPAN -10%

    TIV EVOLUTION YTD (August)

  • SEPTEMBER 2015 10

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    RENAULT GROUP UNIT REGISTRATIONS YTD (August)

    WORLD MARKET SHARE: 3.1% (=)

    1750

    969

    233 199 273

    76

    1765

    1051

    218 196 229

    71

    K units

    (PC+LCV)

    08'14 08'15

    GLOBAL

    +0.9%

    EUROPE

    +8.5%

    AMERICAS

    -16.1%

    ASIA-PACIFIC

    -6.3%

    AMI

    -1.9%

    EURASIA

    -6.3%

    +0.7% TIV +8.8% -18% +0.9% -10.7% -0.3%

    GROUP

    08'14 08'15 08'14 08'15 08'14 08'15 08'14 08'15 08'14 08'15

  • SEPTEMBER 2015 11

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    RENAULT GROUP UNIT REGISTRATIONS H1 2015 vs H1 2014

    WORLD MARKET SHARE: 3.2% (=)

    1,366

    776

    177 150 206

    57

    1,376

    849

    159 151 164 54

    K units

    (PC+LCV)

    H1'14 H1'15

    GLOBAL

    +0.8%

    EUROPE

    +9.3%

    AMERICAS

    -20.3%

    ASIA-PACIFIC

    -5.5%

    AMI

    +0.9%

    EURASIA

    -10.2%

    +1.2% TIV +8.5% -20.3% +3.0% -10.6% +0.4%

    GROUP

    H1'14 H1'15 H1'14 H1'15 H1'14 H1'15 H1'14 H1'15 H1'14 H1'15

  • SEPTEMBER 2015 12

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    EUROPE KEEPS PUSHING SALES MOMENTUM

    TOP 15 COUNTRIES

    COUNTRIES Volumes % MS Ranking

    FRANCE 325 360 26,9% 0

    BRAZIL 89 527 7,0% 0

    GERMANY 86 254 5,0% 1

    ITALY 85 867 9,2% 1

    SPAIN 81 907 13,0% 1

    TURKEY 67 849 15,7% 3

    UK 62 892 4,0% 0

    RUSSIA 57 116 7,3% -5

    BELGIUM+LUX 47 968 13,6% 1

    ALGERIA 47 918 31,7% 1

    SOUTH KOREA 37 260 4,4% 1

    ARGENTINA 32 312 10,6% -4

    MOROCCO 23 864 38,4% 1

    NETHERLANDS 23 611 10,1% 1

    INDIA 23 346 1,5% -2

    % OF SALES OUTSIDE EUROPE

    33% 40%

    47% 50%

    H1' 10 H1' 11 H1' 12 H1' 13 H1' 14

    43%

    H1' 15

    38%

  • SEPTEMBER 2015 13

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    EUROPE REGION

    France 26.9%

    -0.4 pts

    Europe 10.2%

    +0.1 pts

    GROUP MARKET SHARE PC+LCV

    BREAKDOWN OF GROUP REGISTRATIONS PC+LCV

    GROUP ORDER BOOK PC+LCV

    776

    849

    H1 2015 H1 2014 776

    +8

    +64 849

    H114

    TIV

    & MARKET MIX H115 PERFORMANCE

  • SEPTEMBER 2015 14

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    AMERICAS REGION

    Americas 5.9%

    -0.7 pts

    Brazil 7.0%

    +0.1 pts

    OROCH TO BE LAUNCHED IN H2 GROUP MARKET SHARE PC+LCV

    206

    BREAKDOWN OF GROUP REGISTRATIONS PC+LCV

    206

    164

    H114

    H115

    PERFORMANCE

    TIV

    & MARKET MIX ARGENTINA

    -21

    -22

    +1

  • SEPTEMBER 2015 15

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    EURASIA REGION

    Eurasia 11.2%

    +1.3 pts

    Russia 7.3%

    -0.5 pts

    DUSTER FACELIFT LAUNCHED IN H2 GROUP MARKET SHARE PC+LCV

    BREAKDOWN OF GROUP REGISTRATIONS PC+LCV

    177

    -8

    -10

    159

    H1 2015 H1 2014

    849

    H1 2015

    177 -8

    -10

    159

    H114

    TIV

    & MARKET MIX H115 PERFORMANCE

  • SEPTEMBER 2015 16

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    AFRICA - MIDDLE EAST - INDIA REGION

    AMI 3.6%

    -0.1 pts

    Algeria 31.7%

    +7.1 pts

    GROUP MARKET SHARE PC+LCV

    BREAKDOWN OF GROUP REGISTRATIONS PC+LCV

    KWID TO BE LAUNCHED IN H2

    150 +5

    -4

    151

    H1 2015 H1 2014

    177

    -8

    -10

    159

    H1 2015 H1 2014

    849

    H1 2015

    150

    +5 -4 151

    H114

    TIV

    & MARKET MIX

    H115

    PERFORMANCE

  • SEPTEMBER 2015 17

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    ASIA-PACIFIC REGION

    Asia-Pacific 0.3%

    Korea 4.4%

    -0.2 pts

    0.0 pt

    WUHAN PLANT ON TRACK GROUP MARKET SHARE PC+LCV

    BREAKDOWN OF GROUP REGISTRATIONS PC+LCV

    150 +5

    -4

    151

    H1 2015 H1 2014

    177

    -8

    -10

    159

    H1 2015 H1 2014

    849

    H1 2015

    57

    -6 +3

    54

    H114

    TIV

    & MARKET MIX

    H115 PERFORMANCE

  • SEPTEMBER 2015 18

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    H1 2015 FINANCIAL RESULTS

    02

  • SEPTEMBER 2015 19

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    H1 2014 H1 2015 CHANGE

    Global registrations (units) 1,365,988 1,376,356 +0.8%

    Group revenues 19,820 22,197 +12.0%

    of which: Automotive 18,739 21,065 +12.4%

    Sales financing 1,081 1,132 +4.7%

    Q1 Q2

    +13.7% +10.8%

    H1 2015 GROUP REVENUES

    (million euros)

  • SEPTEMBER 2015 20

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    AUTOMOTIVE REVENUES VARIANCE ANALYSIS

    18,739

    21,065

    +615 -46

    +145+308

    +1,112

    +225

    -33

    Currency

    Volume

    Geographic

    mix

    Product mix

    Sales to

    partners

    Others

    +12.4%

    +3.3pts -0.2pts +0.8pts +1.6pts +1.2pts -0.2pts

    Price

    +5.9pts

    CHANGE H1 2015 / H1 2014: +2,326m

    H1 2014 H1 2015

    (million euros)

  • SEPTEMBER 2015 21

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    DISTRIBUTION STOCK

    NEW VEHICLE DISTRIBUTION STOCK (IN K UNITS)

    445 481507 503 488 527 495 493 459 515

    510

    131

    241140

    243

    100

    255

    158

    253

    106

    251177

    314240

    367

    260

    388

    272337

    240

    353264

    333

    DEC'12 MAR'13 JUN'13 SEP'13 DEC'13 MAR'14 JUN'14 SEP'14 DEC'14 MAR'15 JUN'15

    GROUP

    INDEPENDENT DEALERS

    TOTAL

    Number of days of sales

    (previous period)

    65 67 72 75 76 63 62 74 57 74 64

  • SEPTEMBER 2015 22

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    H1 2014 H1 2015 CHANGE

    Revenues 19,820 22,197 +12.0%

    Operating margin +729 +1,069 +340

    in % of revenues +3.7% +4.8% +1.1 pts

    Other operating income & expenses -265 -116 +149

    EBIT +464 +953 +489

    Net financial income & expenses -124 -161 -37

    Associated companies +725 +912 +187

    Current & deferred taxes -264 -235 +29

    Net income +801 +1,469 +668

    (million euros)

    H1 2015 FINANCIAL RESULTS

  • SEPTEMBER 2015 23

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    OPERATING MARGIN BY ACTIVITY

    H1 2014 H1 2015 CHANGE

    AUTOMOTIVE +348 +656 +308

    % Automotive revenues +1.9% +3.1% +1.3 pts

    SALES FINANCING +381 +413 +32

    GROUP OPERATING MARGIN +729 +1,069 +340

    % Group revenues +3.7% +4.8% +1.1 pts

    (million euros)

  • SEPTEMBER 2015 24

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    729

    1,069

    +236 -17

    +28

    -283 +263

    +1

    +112

    GROUP OPERATING MARGIN VARIANCE ANALYSIS

    Currency

    Volume &

    partners

    Mix / Net Enrichment

    G&A

    RCI &

    Other

    activities

    COST REDUCTION

    +219m

    H1 2014 H1 2015 (million euros)

    CHANGE H1 2015 / H1 2014: +340m

    Monozukuri

    Raw materials

    GROWTH

    +264m

  • SEPTEMBER 2015 25

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    RCI BANQUE

    in % of average loans outstanding

    H1 2014 H1 2015

    New financings (bn) 6.0 7.7

    Average performing loans outstanding (bn) 24.8 27.6

    Net banking income* 5.14% 4.93%

    Cost of risk* (customer & dealer) -0.47% -0.31%

    Operating expenses* -1.58% -1.54%

    Pretax income* 2.92% 3.08%

    (* in percentage of average performing loans outstanding)

  • SEPTEMBER 2015 26

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    OTHER OPERATING INCOME & EXPENSES

    H1 2014 H1 2015

    Net restructuring costs

    (incl. competitiveness agreement in France) -152 -106

    Impairment of assets / reversal -135 -11

    Profit / loss on asset sales +30 +6

    Others -8 -5

    TOTAL OTHER OPERATING INCOME & EXPENSES -265 -116

    (million euros)

  • SEPTEMBER 2015 27

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    ASSOCIATED COMPANIES

    H1 2014 H1 2015 CHANGE

    Nissan +789 +979 +190

    AVTOVAZ (1) -55 -70 -15

    Others -9 +3 +12

    TOTAL ASSOCIATED COMPANIES +725 +912 +187

    (1) AVTOVAZ is consolidated with a 3-month time lag

    Q1 Q2

    494 485

    (million euros)

  • SEPTEMBER 2015 28

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    -369

    +267

    -591

    -118

    AUTOMOTIVE NET CASH POSITION

    Operational

    free cash flow

    Cash flow

    +1,727

    Change

    in WCR

    Dividends

    paid

    Net tangible

    & intangible

    investments

    - 1,453 Net cash

    decrease

    Dividends

    received

    from

    listed co.

    -123

    Leased

    Vehicles

    -431

    Capitalized

    R&D

    Financial

    investments

    & others

    -899

    Net capex

    DEC. 31, 2014: 2,104m

    JUNE 30, 2015: 1,567m

    -95

    -537

    (million euros)

  • SEPTEMBER 2015 29

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    LIQUIDITY RESERVES

    Cash = 11.6bn

    Available credit lines = 3.2bn

    TOTAL = 14.8bn

    LIQUIDITY RESERVES

    Cash = 10.2bn

    Available credit lines = 3.3bn

    TOTAL = 13.5bn

    AUTOMOTIVE DIVISION LIQUIDITY

    DECEMBER 2014 JUNE 2015

  • SEPTEMBER 2015 30

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    RCI LIQUIDITY*

    LIQUIDITY RESERVES

    Cash = 0.1bn

    HQLA = 0.9bn

    ECB eligible = 1.9bn

    Available credit lines = 4.0bn

    TOTAL = 6.9bn

    LIQUIDITY RESERVES

    Cash = 0.1bn

    HQLA = 0.8bn

    ECB eligible = 1.8bn

    Available credit lines = 4.1bn

    TOTAL = 6.8bn

    DECEMBER 2014 JUNE 2015

    *Central funding perimeter

  • SEPTEMBER 2015 31

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    RCI BANQUE RETAIL DEPOSIT ACTIVITY

    Dec. 2014 June 2015

    DEPOSITS 6.5 7.0

    o/w GERMANY 4.4 5.1

    o/w FRANCE 1.8 1.4

    o/w AUSTRIA 0.4 0.5

    o/w UNITED KINGDOM N/A 0.04

    2016 TARGET: 30% OF RCI BANQUE OUTSTANDINGS

    (billion euros)

  • SEPTEMBER 2015 32

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    FY 2014 FINANCIAL RESULTS

    03

  • SEPTEMBER 2015 33

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    AUTOMOTIVE REVENUES VARIANCE ANALYSIS

    38,775 38,874

    -1,150

    -327 +64

    -33

    +311

    +1,248

    -14

    Currency

    Volume

    Geographic

    mix

    Mix

    Sales to

    partners

    Others

    +0.3%

    -3.0pts -0.8pts +0.2pts -0.1pts +3.2pts 0.0pts

    Price

    +0.8pts

    CHANGE 2014 vs 2013: +99m

    FY 2013 FY 2014

    (million euros)

  • SEPTEMBER 2015 34

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    OPERATING PROFIT BY ACTIVITY

    FY 2013 FY 2014 CHANGE

    AUTOMOTIVE 495 858 +363

    % Automotive revenues 1.3% 2.2% +0.9pts

    SALES FINANCING 747 751 +4

    GROUP OPERATING PROFIT 1,242 1,609 +367

    % Group revenues 3.0% 3.9% +0.9pts

    (million euros)

  • SEPTEMBER 2015 35

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    1,242

    1,609

    +778

    +66

    +134

    -226 +121

    -35

    -471

    GROUP OPERATING PROFIT VARIANCE ANALYSIS

    Currency

    Volume &

    partners

    Mix / Net Enrichment

    G&A

    RCI Banque

    &

    other activities

    COST REDUCTION

    844m

    FY 2013 FY 2014

    CHANGE 2014 vs 2013: +367m

    Monozukuri

    Raw materials

    GROWTH

    86m

    (million euros)

  • SEPTEMBER 2015 36

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    CONTINUING COST REDUCTION

    COST REDUCTION CONTRIBUTION TO OPERATING PROFIT IMPROVEMENT

    + 430

    -107

    + 397

    + 58

    + 66

    Purchasing Warranty Manufacturing & Logistic

    R&D G&A

    +844m

    vs 2013

  • SEPTEMBER 2015 37

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    OTHER OPERATING INCOME & EXPENSES

    FY 2013 FY 2014

    Net restructuring costs

    (incl. competitiveness agreement in France) -423 -305

    Impairment of assets / reversal -488 -153

    RCI Banque (mainly change in regulation) - -50

    Profit / loss on asset sales +153 +7

    Others -518 -3

    Total other operating income & expenses -1,276 -504

    (million euros)

  • SEPTEMBER 2015 38

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    ASSOCIATED COMPANIES

    FY 2013 FY 2014 CHANGE

    Nissan 1,498 1,559 +61

    AVTOVAZ (1) -34 -182 -148

    Others -20 -15 +5

    Total associated companies 1,444 1,362 -82

    (1) AVTOVAZ is consolidated with a 3-month time lag . Adjustments have been made to take into account significant transactions and accounting entries that occurred between September 30, 2014 and December 31, 2014.

    (million euros)

  • SEPTEMBER 2015 39

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    FY 2014 FINANCIAL RESULTS

    FY 2013 FY 2014 CHANGE

    Revenues 40,932 41,055 +0.3%

    Operating profit 1,242 1,609 +367

    in % of revenues 3.0% 3.9% +0.9pts

    Other operating income & expenses -1,276 -504 +772

    EBIT -34 1,105 +1,139

    Net financial income & expenses -282 -333 -51

    Associated companies 1,444 1,362 -82

    Current & deferred taxes -433 -136 +297

    Net income 695 1,998 +1,303

    (million euros)

  • SEPTEMBER 2015 40

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    3,138

    1,083

    343

    +596

    +463 -542

    -661

    AUTOMOTIVE NET CASH POSITION

    Operational free

    cash flow

    Cash flow

    Change in WCR

    Dividends paid

    Net tangible & intangible

    investments

    -2,651

    Net change In cash

    Dividends received

    from listed co.

    Capitalized

    R&D

    -845 Financial investments

    & others

    Net capex

    -1,571

    DEC 31, 2013 : 1,761m

    DEC 31, 2014 : 2,104m

    (million euros)

    Leased Vehicles -235

  • SEPTEMBER 2015 41

    INVESTOR RELATIONS

    RENAULT PRESENTATION

    LIQUIDITY RESERVES

    Cash = 10.7bn

    Available credit lines = 3.4bn

    TOTAL = 14.1bn

    LIQUIDITY RESERVES

    Cash = 11.6bn

    Available credit lines = 3.2bn

    TOTAL = 14.8bn

    AUTOMOTIVE DIVISION LIQUIDITY

    DECEMBER 2013 DECEMBER 2014

  • SEPTEMBER 2015 42

    INVESTOR RELATIONS