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PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – 2020 PRESENTATION
GROUPE RENAULT
24-25 June 2020
Automotive Credit Conference 2020
Unicredit
PROPERTY OF GROUPE RENAULT 2INVESTOR RELATIONS – 2020 PRESENTATION
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.”
PROPERTY OF GROUPE RENAULT 3INVESTOR RELATIONS – 2020 PRESENTATION
EXECUTIVE SUMMARY
▪ The plan is our ticket to be back in the game
− Focus on cash generation from the operations
− More realistic and helpful Alliance approach
− Honest diagnostic on our situation and rightful answers
▪ Cost reductions will continue way beyond 2022
− Main industrial French footprint adjustment will happen after 2022
− The fruits of the Alliance new organization will kick in from 2022 onwards
− Platforms consolidation will be achieved by 2026
▪ Execution is the key
− “No-pain” social measures
− We have the financial means to execute it
PROPERTY OF GROUPE RENAULT 4INVESTOR RELATIONS – 2020 PRESENTATION
2o22 - COST REDUCTION PROJECT
01
PROPERTY OF GROUPE RENAULT 5INVESTOR RELATIONS – 2020 PRESENTATION
01.2
AGENDA
Building a resilient performance 2o22 fixed cost reduction project01.1
Alliance as a performance enhancer of Groupe Renault Zoom on new projects and associated benefits
PROPERTY OF GROUPE RENAULT 6INVESTOR RELATIONS – 2020 PRESENTATION
A CHANGE OF PRIORITIES: TOWARDS BETTER PERFORMANCE
OUTCOME
STRATEGIC FOCUS
Inability to generate
cashOver-sized structure
Size Innovation
Restore
competitiveness Profitability
over volume
Increase
efficiencyTrim down diversity
Optimize
organizationLeaner structure
Customer focused – leverage of Alliance – rigorous approach
REDUCED FIXED COSTS> €2bn by 2022 vs 2019
Performance
2020+
OUTCOME
2020-
2017
MINDSET
BUSINESSFOCUS
ACTIONPLANS
Fixed costs too high
PROPERTY OF GROUPE RENAULT 7INVESTOR RELATIONS – 2020 PRESENTATION
NEW LEADERSHIP
NEW MINDSET
FACT BASED
SELF-HELP
RESILIENCE
A NEW MINDSET FOR A BETTER RESILIENCE
PROPERTY OF GROUPE RENAULT 8INVESTOR RELATIONS – 2020 PRESENTATION
PARADIGM SHIFT AT RENAULT: PROFITABILITY OVER VOLUMEFIRST PRIORITY: REDUCE FIXED COSTS
LOWER DEPENDENCY
ON VOLUMES
&
IMPROVED
COMPETITIVENESS ENHANCED
PROFITABILITY
FIXED COSTS
2o22 PLAN FOCUS
ON GOING EFFORT
VARIABLE COSTS
PRICING
DISCIPLINE
-20%2019 - 2022
PROPERTY OF GROUPE RENAULT 9INVESTOR RELATIONS – 2020 PRESENTATION
2o22 PROJECT: OVER €2bn CASH COST REDUCTION VERSUS 2019
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
~€700m
~€800m
~€650m
>€2bnin 2022 vs 2019
w/o CAPEX
PROPERTY OF GROUPE RENAULT 10INVESTOR RELATIONS – 2020 PRESENTATION
ENGINEERING: IMPROVED EFFICIENCY
~€800mCOST REDUCTION
in 2022 vs 2019
LINE-UP
▪ Optimization
▪ Reduced parts diversity
▪ Increased commonalization
ORGANIZATION
▪ Subcontractor base rationalization
▪ Increase in RTX1 utilization
▪ Rationalized structure
▪ Digitalization of validation
1. Regional Technical Centers
PROPERTY OF GROUPE RENAULT 11INVESTOR RELATIONS – 2020 PRESENTATION
DIVERSITY REDUCTION: VERSIONS, PARTS, POWERTRAINS
PRODUCT DEFINITION
Less part references1
per vehicle in plant
Powertrain
commonalization
within the Alliance
1. Part reference = part number.
-25%by 2022vs 2019
85%by 2022
+10 pts vs 2019
EN
GIN
EE
RIN
GLIN
E-U
P
OR
GA
NIZ
AT
IO
N
PROPERTY OF GROUPE RENAULT 12INVESTOR RELATIONS – 2020 PRESENTATION
FEWER PC1 PLATFORMS TO DEVELOP IN 2022 & MORE VEHICLES PER PLATFORM BY 2026
DEVELOPMENT COSTS DOWN VEHICLES PER PLATFORM UP
Active PF (requiring development)
Mature PF(already developed)
13 13
# platforms
> 600k units / year1 3 3 ALL
4
9
4
2019 20222019-2022
Platform transition
2022-2026
Platform evolution
5
4 4
2026
4
1. Passenger cars, platforms including partners’ volumes
EN
GIN
EE
RIN
GLIN
E-U
P
OR
GA
NIZ
AT
IO
N
PROPERTY OF GROUPE RENAULT 13INVESTOR RELATIONS – 2020 PRESENTATION
C/D
A/B
LCV
EV
2019 2020 2021 2022
K-ZE
Arkana
New Clio
Triber
New Captur
XM3
ZoeLCV
SIMPLIFICATION BUT NOT AT THE EXPENSE OF THE PRODUCT CADENCEE
NG
INE
ER
ING
LIN
E-U
P
OR
GA
NIZ
AT
IO
N
PROPERTY OF GROUPE RENAULT 14INVESTOR RELATIONS – 2020 PRESENTATION
WORK ORGANIZATION: LEVERAGE REGIONAL FOOTPRINT
ENGINEERING EFFICIENCY
Increased RTx1 use
40%RTx2019
60%RTx2022
Skills and resources
Focus France Core technologies
High added-valueTop 9
subcontractors2019
Top 4subcontractors
2022
Subcontractor base
rationalization
80%of business with
1. Regional Technical Centers
EN
GIN
EE
RIN
GL
INE
-UP
OR
GA
NIZ
AT
IO
N
PROPERTY OF GROUPE RENAULT 15INVESTOR RELATIONS – 2020 PRESENTATION
PRODUCTION: CAPACITY RIGHTSIZING, ENHANCED EFFICIENCY
~€650mCOST REDUCTION
in 2022 vs 2019
PERFORMANCE
& CAPACITY RIGHTSIZING
▪ Industry 4.0
▪ Lines/plants rightsizing
▪ Supply chain efficiency
▪ Labor savings
PROCESS ENGINEERING
▪ Performance “best in class”
▪ Subcontractors rationalization
▪ Digitalization of prototype process
▪ Maximization of 3D Printing
PROPERTY OF GROUPE RENAULT 16INVESTOR RELATIONS – 2020 PRESENTATION
INNOVATION: BOOSTING INDUSTRIAL PERFORMANCE
PERFORMANCE GAINS
2019
Competitiveness
& Industry 4.0
80Veh/employee
2022
91Veh/employee
+14%
Digitalization
prototype process
Maximization of 3D Printing
PR
OD
UC
TIO
NP
ER
FO
RM
AN
CE
FO
OT
PR
INT
PROPERTY OF GROUPE RENAULT 17INVESTOR RELATIONS – 2020 PRESENTATION
3,3
3,8
4,3
4,8
5,3
5,8
CAPACITY RIGHTSIZING
20222019 2024
Capacity3 shifts x 5 days
CapacityHarbour standard
Group Production 2019
1. including AVTOVAZ & JVs, w/o Renault Nissan Automotive India Private Limited
Groupe Renault capacity evolutionVehicle production and max capacity (in Million veh)1
3.8
3.6
4.0
3.3
5.5
6.0
4.9
~ -18% 2024 vs 2019
~ -10% 2022 vs 2019
PR
OD
UC
TIO
NP
ER
FO
RM
AN
CE
FO
OT
PR
INT
PROPERTY OF GROUPE RENAULT 18INVESTOR RELATIONS – 2020 PRESENTATION
GLOBAL RIGHTSIZING PROJECTCapacity rightsizing 2019-2024
Potentially impacted locations
PR
OD
UC
TIO
NP
ER
FO
RM
AN
CE
FO
OT
PR
INT
PROPERTY OF GROUPE RENAULT 19INVESTOR RELATIONS – 2020 PRESENTATION
ADAPTING OVERALL STRUCTURE TO RESTORE COMPETITIVENESS
~€700mCOST REDUCTION
in 2022 vs 2019
FIXED MARKETING EXPENSES
▪ Digitalization and media efficiency
▪ Media cost optimization
▪ Scope adjustments
G&A
▪ Cross function approach
▪ Optimization
▪ Downsizing
▪ Shared service centers expansion
SG
&A
PROPERTY OF GROUPE RENAULT 20INVESTOR RELATIONS – 2020 PRESENTATION
TIMELINE OF CASH IMPACTS
30%75%
100%
30%50%
20%
2020 2021 2022
% of the >€2bn fixed cost gains achieved versus 2019
€1,2bn cash restructuring costs timing
Ramp-up of Group cash savings
& implementation costs
PROPERTY OF GROUPE RENAULT 21INVESTOR RELATIONS – 2020 PRESENTATION
SCOPE ADJUSTMENTS: CAPITAL ALLOCATION OPTIMIZATION
>€500m
RRG GROUP
▪ Assets reduction (real estate
and working capital)
▪ Variable costs vs fixed costs
NEW FOCUS IN CHINA
▪ Transfer of DRAC shares
to Dongfeng
▪ Re-focusing on EVs and LCVs
Capital allocated tolow-return business
in 2022 vs 2019
PROPERTY OF GROUPE RENAULT 22INVESTOR RELATIONS – 2020 PRESENTATION
PEAK PASSED FOR INVESTMENT BUT NOT FOR DEPRECIATION
2021201920182015 2016 2017 2020 2022
Capex & R&D cash spending Amortization and depreciation in COP
Capex + R&D
in % of Group
Revenues
10.7% ~8%
6.0bn
4.7bn
2.9bn
3.7bn
-2.5 pts
RD&CAPEX
in 2022 vs 2019
+€0.8bn
DEPRECIATION
7.9%
PROPERTY OF GROUPE RENAULT 23INVESTOR RELATIONS – 2020 PRESENTATION
WRAP-UP: FIXED COST REDUCTION BY NATURE BY 2022
Labor costs~ 15 000 positions
worldwidepotentially impacted
Outsourcing optimization
Marketing & Others
PROPERTY OF GROUPE RENAULT 24INVESTOR RELATIONS – 2020 PRESENTATION
Building a resilient performance 2o22 fixed cost reduction project01.1
Alliance as a performance enhancer of Groupe RenaultZoom on new projects and associated benefits01.2
AGENDA
PROPERTY OF GROUPE RENAULT 25INVESTOR RELATIONS – 2020 PRESENTATION
ALLIANCE NEW COLLABORATION SCOPE BEYOND OUR FIXED COST REDUCTION PLAN
REGIONS(REFERENCE PLAYER BY
REGION)
NEW
CURRENT ALLIANCE SCOPE NEW ALLIANCE COLLABORATION SCOPE
BEYOND 2o22 PLANWITHIN 2o22 PLAN
PLATFORMS & POWERTRAINS
TECHNOLOGY
PURCHASING
SCOPE EXTENSION TO FULL VEHICLE
LE
AD
ER
/ F
OL
LO
WE
R
PLATFORMS & POWERTRAINS
SCOPE EXTENSION
LE
AD
ER
/ F
OL
LO
WE
RTECHNOLOGY
INCREASED STANDARDIZATION
NE
WP
AR
TN
ER
SH
IPS
PURCHASING
PROPERTY OF GROUPE RENAULT 26INVESTOR RELATIONS – 2020 PRESENTATION
SIGNIFICANT BENEFITS FROM NEW COLLABORATION SCOPE
Up to -40% Model investment1
LEADER FOLLOWEREXAMPLE EXAMPLE OF BENEFITS
New opportunities
for Fixed costs gains
Under
100$/kWh
VEHICLE
PURCHASING
REGIONS
B-SUVNext Generation
Renault reference playerEurope, Russia, Latam
EV BatteryStandardization: Geometry &
chemistry, design, carry-across
1. Model investment = R&D + Tooling
2. Core system of electric-electronic
Nissan
Development
TECHNOLOGY
Autonomous driving
Renault
Developmente-Body architecture2
PROPERTY OF GROUPE RENAULT 27INVESTOR RELATIONS – 2020 PRESENTATION
Q1 2020 Results
02
PROPERTY OF GROUPE RENAULT 28INVESTOR RELATIONS – 2020 PRESENTATION
KEY TAKEAWAYS FROM Q1
▪ Strong acceleration of market decline in March due to COVID-19
▪ Automotive liquidity reserves at €10.3 bn at the end of March
▪ Product cadence confirmed so far
▪ Restarting production as we speak where feasible
▪ RCI: comfortable liquidity reserve at €11.5 bn at the end of March
▪ Not yet possible to assess the pandemic impact for the FY
▪ No guidance possible at this stage
PROPERTY OF GROUPE RENAULT 29INVESTOR RELATIONS – 2020 PRESENTATION
TIV EVOLUTION Q1 2020 VS Q1 2019
(1)
Brazil -8%
Colombia -9%
Argentina -36%
India -23%
(1) The evolution of the global automotive market for all brands also called Total Industry Volume (TIV) indicates the annual variation in sales* volumes of passenger cars and light commercial vehicles** in the main countries including USA & Canada,
provided by official authorities or statistical agencies in each country, and consolidated by Groupe Renault to constitute this world market (TIV).
*Sales: registrations or deliveries or invoices according to the data available in each consolidated country.
**Light commercial vehicles of less than 5.1 tons.
Morocco -21%
Algeria -88%
Turkey +41%
Russia +2%
China -46%
March Q1
World (1)
TIV -40% -25%
EuropeTIV -52% -26%
EurasiaTIV +3% +7%
Africa-ME-India-PacificTIV -24% -14%
AmericasTIV -29% -13%
ChinaTIV -49% -45%
South Korea -7%
Germany -20%
UK -31%
Spain -31%
France -33%
Italy -35%
PROPERTY OF GROUPE RENAULT 30INVESTOR RELATIONS – 2020 PRESENTATION
908
503
158106 98
43
673
322
168
85 7721
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
GROUPE RENAULT’S SALES Q1 2020 VS Q1 2019
Thousand units
(PC+LCV)
World Market Share: 4.1% (unchanged)
International -13.4%
Global Europe Eurasia Africa-ME-India-Pacific Americas China
TIV* -24.6% -26.2% +7.0% -14.4% -13.4% -45.0%
GROUP -25.9% -36.0% +6.1% -19.8% -21.7% -50.5%
* PC+LCV including USA & Canada
PROPERTY OF GROUPE RENAULT 31INVESTOR RELATIONS – 2020 PRESENTATION
PERFORMANCE OF NEW MODEL LAUNCHES IN Q1
CLIO ZOE CAPTUR
ARKANA TRIBER XM3
63 kuSales
-0.3 pt M/S
21 kuSales
34 kuSales
-0.2 pt M/S
5 kuSales
+1.2 pt M/S
10 kuSales
+1.2 pt M/S
6 kuSales
+1.5 pt M/S
+12%Pricing
+14%Pricing
+0.4 pt M/S
+81%Sales
PROPERTY OF GROUPE RENAULT 32INVESTOR RELATIONS – 2020 PRESENTATION
Q1 2020 GROUP REVENUES
In million euros Q1 2019 Q1 2020 Change
Global unit sales (units) 908,402 672,962 -25.9%
Group Revenues 12,527 10,125 -19.2%
o/w Automotive excl. AVTOVAZ 10,916 8,591 -21.3%
o/w AVTOVAZ (1) 767 701 -8.6%
o/w Mobility Services (2) - 6 ++
o/w Sales Financing 844 827 -2.0%
(1) AVTOVAZ net of eliminations
(2) New segment as of 01/01/2020
PROPERTY OF GROUPE RENAULT 33INVESTOR RELATIONS – 2020 PRESENTATION
Change Automotive revenues excluding AVTOVAZ
Q1 2020 vs Q1 2019: -€2,325m
10,916 8,591
10,12512,527
REVENUES VARIANCE ANALYSIS
(million euros)
-14.1 pts -0.7 pts -0.3 pts +2.8 pts -6.1 pts -1.4 pts -1.5 pts
-21.3%
Q1 2019 VolumeGeographic
Mix
Product
MixPrice
Sales to
PartnersCurrency Others Q1 2020
Q1 2019 Automotive AVTOVAZMobility
ServicesRCI Q1 2020
PROPERTY OF GROUPE RENAULT 34INVESTOR RELATIONS – 2020 PRESENTATION
(In thousand units)
NEW VEHICLE DISTRIBUTION STOCK EXCLUDING AVTOVAZ
Group
Independentdealers
Total
76 61 69 70 76 65 75 68 109Number of days
of sales (backward)
697660
588622
656 630603 599
660
340
236285
182
300
218
290
157
270
357424
303
440
356412
313
442391
MAR'18 JUN'18 SEP'18 DEC'18 MAR'19 JUN'19 SEP'19 DEC'19 MAR'20
PROPERTY OF GROUPE RENAULT 35INVESTOR RELATIONS – 2020 PRESENTATION
RCI BANK AND SERVICES PERFORMANCE
Q1 2019 Q1 2020 Change
Average performing assets (€m) 46,462 49,318 +6.1%
New contracts (units) 436,509 391,056 -10.4%
New Financings (€m) 5,128 4,622 -9.9%
PROPERTY OF GROUPE RENAULT 36INVESTOR RELATIONS – 2020 PRESENTATION
2020 OUTLOOK
In the context of the coronavirus (COVID-19) pandemic: No FY guidance
▪ To date, the impact that this pandemic will have on the Group's
results is still impossible to assess. Groupe Renault will
communicate a new guidance as soon as it considers that it is in
a position to do so.
▪ The Group undertakes to restart commercial and production
activities in countries where safety and regulatory conditions
permit and will implement all necessary measures to respond
effectively to commercial demand.
PROPERTY OF GROUPE RENAULT 37INVESTOR RELATIONS – 2020 PRESENTATION
FY 2019 Results
03
PROPERTY OF GROUPE RENAULT 38INVESTOR RELATIONS – 2020 PRESENTATION
SOLID ASSETS: INTERNATIONAL PRESENCE
BrazilEurope Russia India
ARKANA KWID
SANDERO
All-new CLIO TRIBER
PROPERTY OF GROUPE RENAULT 39INVESTOR RELATIONS – 2020 PRESENTATION
EVSales +25%
PROPERTY OF GROUPE RENAULT 40INVESTOR RELATIONS – 2020 PRESENTATION
LCVRecord sales
PROPERTY OF GROUPE RENAULT 41INVESTOR RELATIONS – 2020 PRESENTATION
DaciaRecord sales
PROPERTY OF GROUPE RENAULT 42INVESTOR RELATIONS – 2020 PRESENTATION
SOLID ASSETS: RCI ROBUSTNESS
Service contracts
Penetration rate
PROPERTY OF GROUPE RENAULT 43INVESTOR RELATIONS – 2020 PRESENTATION
Solid assets: Alliance – CMF-B
PROPERTY OF GROUPE RENAULT 44INVESTOR RELATIONS – 2020 PRESENTATION
Solid assets: Alliance – CROSS MANUFACTURING
Maubeuge
PROPERTY OF GROUPE RENAULT 45INVESTOR RELATIONS – 2020 PRESENTATION
3,884
1,921
748562 437
217
3,754
1,946
751453 425
180
Groupe Renault’s sales 2019 vs 2018
Thousand units
(PC+LCV)
World Market Share: 4.25% (+0.1 pts)
International
TIV*
GROUP
-7.9%
-2.9% w/o Iran
Global Europe Eurasia Africa-ME-India-Pacific Americas China
-4.8%-3.8% w/o Iran
+1.2% -4.4% -8.5%-3.8% w/o Iran
-5.6% -8.2%
-3.4%-0.8% w/o Iran
+1.3% +0.4% -19.3%-1.6% w/o Iran
-2.9% -17.2%
2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019
* PC+LCV including USA & Canada
PROPERTY OF GROUPE RENAULT 46INVESTOR RELATIONS – 2020 PRESENTATION
2019 Group revenues
In million euros 2018 2019 Change
Global unit sales (units) 3,884,273 3,753,723 -3.4%
Group revenues 57,419 55,537 -3.3%
o/w Automotive excl. AVTOVAZ 51,171 49,002 -4.2%
o/w AVTOVAZ(2) 3,040 3,130 +3.0%
o/w Sales Financing 3,208 3,405 +6.1%
H1 H2
-7.7% -0.4%
(1)
(1) Including Jinbei & Huasong(2) AVTOVAZ net of eliminations
PROPERTY OF GROUPE RENAULT 47INVESTOR RELATIONS – 2020 PRESENTATION
Currency
VolumeGeographic
mix
Sales topartners
Others
-4.2%
-1.4 pts -0.2 pts 0 pt +1.7 pts -0.7 pts -0.2 pts
Price
-3.4 pts
Change Automotive excluding Avtovaz revenues
2019 vs 2018: -€2,169m
2018 2019
Productmix
51,171
-738-1,747
+853
+10-91
-88
49,002
-368
Automotive Excluding Avtovaz
Groupe Renault2018 2019
Automotive
RCI Avtovaz
-2,169
+90 +19755,537
57,419
Revenues variance analysis
(million euros)
PROPERTY OF GROUPE RENAULT 48INVESTOR RELATIONS – 2020 PRESENTATION
In million euros 2018 2019 Change
Group operating profit % of Group revenues
3,6126.3%
2,6624.8%
-950-1.5 pts
o/w Automotive excl. AVTOVAZ% of segment revenues
2,2044.3%
1,2842.6%
-920-1.7 pts
o/w AVTOVAZ(1) 204 155 -49
o/w Sales Financing 1,204 1,223 +19
2019 Operating profit by activity
H1 H2
4.0% 1.3%
(1) AVTOVAZ net of eliminations
PROPERTY OF GROUPE RENAULT 49INVESTOR RELATIONS – 2020 PRESENTATION
Currency
Volume & partners
Mix / Net Enrichment
G&A
RCI Banque& others
Monozukuri
Raw materials
AVTOVAZ(1)
+547
-587
-74 -493,612
2,662
+121
-2
-324-329
Change 2019 vs 2018: -€950m
-582
2018 2019
Group operating profit variance analysis
(1) AVTOVAZ net of eliminations
(million euros)
PROPERTY OF GROUPE RENAULT 50INVESTOR RELATIONS – 2020 PRESENTATION
+458
+53
+106 -70 +121
G&AManufacturing
& Logistics
R&DWarrantyPurchasing
Monozukuri
Cost reduction analysis excluding Avtovaz
Change 2019 vs 2018: +€668m
+458
+53
+106+121
-70
(million euros)
PROPERTY OF GROUPE RENAULT 51INVESTOR RELATIONS – 2020 PRESENTATION
In million euros 2018 2019
Net restructuring costs -306 -236
Impairment of assets -276 -229
Capital gain/loss on disposal of fixed assets +68 -15
Others -111 -77
Total other operating income & expenses -625 -557
Other operating income & expenses
PROPERTY OF GROUPE RENAULT 52INVESTOR RELATIONS – 2020 PRESENTATION
2019 Financial results
In million euros 2018 2019 Change
Group Revenues 57,419 55,537 -3.3%
Operating profit 3,612 2,662 -950
% of Group revenues 6.3% 4.8% -1.5 pts
Other operating income & expenses -625 -557 +68
EBIT 2,987 2,105 -882
Net financial income & expenses -353 -442 -89
Associated companies 1,540 -190 -1,730
Current & deferred taxes -723 -1,454 -731
Net income 3,451 19 -3,432
PROPERTY OF GROUPE RENAULT 53INVESTOR RELATIONS – 2020 PRESENTATION
In million euros 2018 2019 Change
NISSAN 1,509 242 -1,267
Others 31 -432 -463
Total associated companies 1,540 -190 -1,730
Associated companies
H1 H2
-21 +263
PROPERTY OF GROUPE RENAULT 54INVESTOR RELATIONS – 2020 PRESENTATION
Net tangible& intangibleinvestments
-5,848
Capitalized
R&D
-1,925
Net capex
-2,921
Operationalfree
cash flow
Cash flow
Changein WCR
+1,829
Dividendspaid Net Change
Incl.AVTOVAZ
Dividendsreceived
fromlisted co. Financial
investments& others
(million euros)
-484
Currency& IFRS 16 impact
AVTOVAZFCF
Automotive Net Financial Position
Excl. AVTOVAZ
+1,027
4,144
+28
+153 +625 -1,120
-912
-293 -1,335-700
December 31, 2018 : €3,702m
January 1st, 2019 : €3,069m*
December 31, 2019 : €1,734m
+802Leased
Vehicles
-1,002
* IFRS 16 impact at transition date -€633m
LeasedVehicles
PROPERTY OF GROUPE RENAULT 55INVESTOR RELATIONS – 2020 PRESENTATION
678
896
243
950 947
1,750
750
500
2020 2021 2022 2023 2024 2025 2026 2027
Auto Division liquidity reserves (Dec. 2019): €15.8 billionCash & cash equivalents: €12.3 billion
Available back-up lines: €3.5 billion
Liquidity
Redemption schedule – Renault SA Bonds, Banks & assimilated, excluding CP & redeemable shares (in million euros)
PROPERTY OF GROUPE RENAULT 56INVESTOR RELATIONS – 2020 PRESENTATION
(In thousand units)
New vehicle distribution stock excluding Avtovaz
Group
Independentdealers
Total
Number of daysof sales (backward)
613
697660
588622
656 630603 599
190
340
236285
182
300
218
290
157
423
357
424
303
440
356412
313
442
DEC'17 MAR'18 JUN'18 SEP'18 DEC'18 MAR'19 JUN'19 SEP'19 DEC'19
57 76 61 69 70 76 65 75 68
PROPERTY OF GROUPE RENAULT 57INVESTOR RELATIONS – 2020 PRESENTATION
RCI Banque
2018 2019
New financings (€bn) 20.9 21.4
Average performing assets (€bn) 44.4 47.4
Net banking income 4.34% 4.31%
Cost of risk(1) (customer & dealer) -0.33% -0.42%
Operating expenses -1.27% -1.26%
Pretax income 2.74% 2.80%
Operating profit (€m) 1,204 1,223
All percentages are calculated on average performing assets(1) As of 2018, Cost of risk reflects the application of IFRS 9 Standards
PROPERTY OF GROUPE RENAULT 58INVESTOR RELATIONS – 2020 PRESENTATION
2020Challenges
▪ CAFE
▪ Enrichment and regulation costs
▪ Capex + R&D spendings
▪ China
▪ CAFE
▪ Enrichment and regulation costs
▪ Capex + R&D spendings
▪ China
2020Challenges
2020Levers
▪ Electrification
▪ Pricing policy
▪ Cost management
▪ Alliance’s new paradigm
▪ Renewed leadership
PROPERTY OF GROUPE RENAULT 59INVESTOR RELATIONS – 2020 PRESENTATION
2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE
All-new ZOE
PROPERTY OF GROUPE RENAULT 60INVESTOR RELATIONS – 2020 PRESENTATION
BEV
HEV
PHEV
2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE
2019 2020 2021-2022
New vehicle New version
All-New CAPTURE-TECH plug-in
MEGANEE-TECH plug-in
All-New CLIOE-TECH
1st CMF-EV
TWINGO Z.E.All-New ZOE
Ren
au
ltE
-TE
CH
10
0%
ele
ctr
ic
Dacia Urban City car
PROPERTY OF GROUPE RENAULT 61INVESTOR RELATIONS – 2020 PRESENTATION
2020 PERFORMANCE LEVER: ELECTRIFICATION OF OUR RANGE
0 g
120 g
Other ICE
HEV + DIESEL
BEV + PHEV
LPG
2019 2020
EV
PHEV
HEV
DIESEL
LPG
PETROL
10% BEV + PHEV
~30% HEV + DIESEL
~10% LPG
Passenger Cars Europe Mix
CO2 level*
* Average CO2 emission per km per vehicle (NEDC-BT)
PROPERTY OF GROUPE RENAULT 62INVESTOR RELATIONS – 2020 PRESENTATION
GROUPE RENAULT ROADMAP TO 2020 CAFE TARGET
2018NEDC
NEDC-BT Mix ICEimprovement
& EV
2019 NEDC-BT
Electrification ICE & Mix management
Supercredit& Phase-in
2020NEDC-BT
112 g
118 g
93 g
PROPERTY OF GROUPE RENAULT 63INVESTOR RELATIONS – 2020 PRESENTATION
2020 performance lever: pricing policy improvement
All-new CLIO All-new CAPTUR All-new ZOE
All-new CAPTUR
E-TECH plug-in
All-new CLIO
E-TECH
PROPERTY OF GROUPE RENAULT 64INVESTOR RELATIONS – 2020 PRESENTATION
2020 performance lever: cost management
Optimization of
industrial footprint
and sub-contractors
Review of
Make-or-Buy
strategy
Review of
non-core assets
Implementation of
Leader-Follower
strategy
PROPERTY OF GROUPE RENAULT 65INVESTOR RELATIONS – 2020 PRESENTATION
Renault in Brief04
PROPERTY OF GROUPE RENAULT 66INVESTOR RELATIONS – 2020 PRESENTATION
Renault – In Brief
▪ Founded in 1898, listed on the Paris NYSE Euronext since
1995
▪ Renault created an Alliance with Nissan in 1999, joined by
Mitsubishi in 2016
▪ Strategic cooperation with Daimler since 2010
▪ Market capitalization of €8 bn as of March 2020
▪ 179,565 employees worldwide in 134 countries
▪ 3,8 million vehicles sold, €55,5bn Revenues in 2019
▪ Renault brand is a leader in BEV in Europe
▪ The Group is a bond issuer via two entities:
rated BB+ neg by S&P / Ba2 neg by Moody’s
rated Baa2 neg by Moody’s / BBB neg by S&P
PROPERTY OF GROUPE RENAULT 67INVESTOR RELATIONS – 2020 PRESENTATION
Capital and Group Structure – 2019/12/31
PROPERTY OF GROUPE RENAULT 68INVESTOR RELATIONS – 2020 PRESENTATION
Renault Vehicle Sales in 2019
66%
21%
2%
0%
11%
Sales by Brand
Renault
Dacia
RSM
Alpine
Lada
JV
52%
12%
20%
11%5%
Sales by Region
Europe
Africe - Middle East- India - PacificEurasia
Americas
China
Including Jinbei&Huasong
7%
46%
25%4%
1%
0%
4%
10%
1%
1%
PC Veh - A
PC Veh - B
PC Veh - C
PC Veh - D
PC Veh - E
PC Veh - Others
LCV - Small Van
LCV - Heavy Van
LCV - Pick-up
LCV - Others
Sales by Segment433 410 387
316
208 184 175 150 128 126
0
100
200
300
400
500
Clio Sandero Duster C(K)aptur Logan Kwid Megane Granta Vesta Kadjar
Top 10 Model Sales (k units)
JV JV
PROPERTY OF GROUPE RENAULT 69INVESTOR RELATIONS – 2020 PRESENTATION
International Sales Expansion
11%
17% 17% 17%19%
23%
27%
30%
35%37%
34%
37%
43%
50% 50%
46%
42% 43%
49%51%
48%
% of unit sales outside Europe
PROPERTY OF GROUPE RENAULT 70INVESTOR RELATIONS – 2020 PRESENTATION
▪ Total funding : 7.5 billion €
Redemption schedule Bonds, Banks & assimilated, excluding CP & redeemable
shares (in million euros)
Liquidity reserve: 15.8 G€▪ Available back-up lines : 3.5 billion €
▪ Cash & cash equivalents: 12.3 billion €
Automotive Division (excluding Avtovaz)
FX rates as of December 31, 2019
Funding & Liquidity – 2019/12/31
678
896
243
950 947
1,750
750
500
2020 2021 2022 2023 2024 2025 2026 2027
PROPERTY OF GROUPE RENAULT 71INVESTOR RELATIONS – 2020 PRESENTATION
BEFORE IFRS IFRS
2000(1)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(2)
2018 2019
in K units
Registration (3) 2 289 2 409 2 404 2 389 2 489 2 533 2 433 2 484 2 382 2 309 2 626 2 722 2 550 2 628 2 712 2 802 3 466 3 762 3 884 3 754
production 2 348 2 375 2 344 2 385 2 472 2 516 2 385 2 659 2 421 2 199 2 599 2 637 2 725 2 520 2 574 2 864 3 175 3 829 3 847 3 663
in € mn
Revenues 40 175 36 351 36 336 37 525 40 715 41 338 41 528 40 682 37 791 33 712 38 971 42 628 41 270 40 932 41 055 45 327 51 243 58 770 57 419 55 537
o/w Automotive 31 486 33 841 34 456 35 535 38 645 39 458 39 605 38 679 35 757 31 951 37 172 40 679 39 156 38 775 38 874 43 108 48 995 53 530 51 171 49 002
o/w AVTOVAZ 2 727 3 040 3 130
o/w sales financing 1 656 1 828 1 880 1 990 2 070 1 880 1 923 2 003 2 034 1 761 1 799 1 949 2 114 2 157 2 181 2 219 2 248 2 513 3 208 3 405
Cost of goods and services sold -30 214 -28 240 -28 178 -29 273 -31 162 -32 137 -32 499 -31 408 -29 659 -26 978 -30 620 -33 848 -34 092 -33 611 -33 310 -36 113 -40 256 -46 477 -45 417 -44 665
Research and development expenses -2 048 -1 935 -1 143 -1 243 -1 383 -2 034 -1 963 -1 850 -1 858 -1 795 -1 834 -2 017 -1 915 -1 812 -1 721 -2 075 -2 370 -2 590 -2 598 -2 658
SG&A -4 838 -4 538 -4 363 -4 452 -4 581 -4 918 -5 018 -4 949 -4 770 -4 382 -4 605 -4 751 -4 534 -4 267 -4 415 -4 819 -5 335 -5 849 -5 792 -5 552
Operating margin 2 022 473 1 483 1 402 2 418 1 323 1 063 1 354 212 -396 1 099 1 091 729 1 242 1 609 2 320 3 282 3 854 3 612 2 662
Operating margin in % 5,0% 1,3% 4,1% 3,7% 5,9% 3,2% 2,6% 3,3% 0,6% -1,2% 2,8% 2,6% 1,8% 3,0% 3,9% 5,1% 6,4% 6,6% 6,3% 4,8%
o/w Automotive 1 574 216 1 189 1 035 1 974 858 571 882 -275 -902 396 330 -25 495 858 1 496 2 386 2 749 2 204 1 284
Operating AUTO margin in % 5,0% 0,6% 3,5% 2,9% 5,1% 2,2% 1,4% 2,3% -0,8% -2,8% 1,1% 0,8% -0,1% 1,3% 2,2% 3,5% 4,9% 5,1% 4,3% 2,6%
o/w AVTOVAZ 55 204 155
o/w sales financing 253 252 294 367 444 465 492 472 487 506 703 761 754 747 751 824 896 1 050 1 204 1 223
Other operating income and expenses -319 231 -266 -168 -270 191 -186 -116 -329 -559 -464 153 -607 -1 276 -504 -199 1 -48 -625 -557
Operating income 1 703 704 1 217 1 234 2 148 1 514 877 1 238 -117 -955 635 1 244 122 -34 1 105 2 121 3 283 3 806 2 987 2 105
Financial income (expenses) -69 -64 -91 -71 -348 -327 61 76 441 -404 -376 -121 -266 -282 -333 -221 -323 -504 -353 -442
Capital gain on sale of shares in Volvo AB 2 000 924
Share in net income of associates & JVs 89 380 1 331 1 860 2 020 2 597 2 260 1 675 437 -1 561 1 289 1 524 1 504 1 444 1 362 1 371 1 638 2 799 1 540 -190
o/w Nissan 56 497 1 335 1 705 1 767 2 275 1 871 1 288 345 -902 1 084 1 332 1 234 1 498 1 559 1 976 1 741 2 791 1 509 242
o/w Volvo -26 71 175 240 308 384 352 226 -301 214 136 80
o/w AvtoVAZ -370 -21 49 186 -34 -182 -605 -89 - - -
Other associates and JVs 31 -432
Current and deferred taxes -649 -67 -447 -510 -634 -331 -255 -255 -162 -148 -58 -508 -549 -433 -136 -311 -1 055 -891 -723 -1 454
Group net income 1 074 953 2 010 2 513 3 186 3 453 2 943 2 734 599 -3 068 3 490 2 139 1 735 695 1 998 2 960 3 543 5 210 3 451 19
Renault net income, Group share 1 080 1 051 1 956 2 480 3 119 3 367 2 869 2 669 571 -3 125 3 420 2 092 1 772 586 1 890 2 823 3 419 5 114 3 302 -141
EPS 4,5 4,4 7,5 9,3 11,7 13,2 11,2 10,3 2,2 -12,1 12,7 7,7 6,5 2,2 6,9 10,4 12,6 18,9 12,2 -0,5
Number of shares 239 798 239 998 259 560 265 960 265 960 255 177 256 994 258 621 256 532 257 514 269 292 272 381 272 256 272 290 273 049 272 708 271 968 271 080 269 850 271 639
workforce 166 114 140 417 132 351 130 740 130 573 126 584 128 893 130 179 129 069 121 422 122 615 128 322 127 086 121 807 117 395 120 136 124 849 181 344 183 002 179 565
o/w Europe NA NA NA NA NA 84,9% 72,6% 66,9% 64,9% 63,1% 60,7% 58,3% 56,2% 54,6% 56,1% 56,6% 56,6% 39,8% 39,9% 40,7%(1) with Renault VI
(2) Consolidation of AvtoVAZ
(3) Registrations include LADA since 2016, Jinbei & Huasong since 2018
PUBLISHED
P&L Statement
PROPERTY OF GROUPE RENAULT 72INVESTOR RELATIONS – 2020 PRESENTATION
PUBLISHED
Cash Flow Statement
IFRS
2000(1)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(2)
2018 2019
in € m
Auto EBIT P&L 1 467 458 928 858 1 710 1 058 303 767 -608 -1 457 -78 478 -615 -770 406 1 347 2 386 2 749 2 204 1 284
Depreciation & amortization P&L 1 817 1 683 1 938 2 117 2 133 2 658 2 817 2 815 2 892 3 124 3 045 2 820 3 299 3 164 2 702 2 689 2 839 2 651 2 771 3 258
Other adjustments -202 -276 -189 -239
Automotive EBITDA 3 284 2 141 2 866 2 975 3 843 3 716 3 120 3 582 2 284 1 667 2 967 3 298 2 684 2 394 3 108 4 036 5 023 5 124 4 786 4 303
Financial and Tax 157 821 -153 69 -55 -53 -168 -284 -389 -19 -507 -661 -797 -550 -659
RCI Banque dividend 100 30 100 100 100 180 0 250 300 300 400 0 0 150 500
Cash Flow 3 027 1 290 2 919 2 806 3 798 3 589 3 288 3 616 2 373 1 386 3 074 2 910 2 577 2 914 3 138 3 451 4 362 4 327 4 386 4 144
Change in WC -1 657 1 751 322 239 401 -533 -346 -26 -2 704 2 923 395 627 922 790 596 663 356 447 781 1 829
Capex and R&D Cost -2 289 -2 546 -2 968 -2 533 -2 823 -2 879 -3 585 -3 565 -3 385 -2 054 -1 644 -2 212 -2 674 -2 543 -2 416 -2 729 -3 047 -3 362 -4 166 -4 846
Net CAPEX -2 253 -2 497 -2 284 -1 927 -2 035 -2 046 -2 494 -2 278 -2 260 -1 465 -978 -1 325 -1 910 -1 811 -1 571 -1 853 -2 144 -2 169 -2 471 -2 921
Capitalized R&D -36 -49 -684 -606 -788 -833 -1 091 -1 287 -1 125 -589 -666 -887 -764 -732 -845 -876 -903 -1 193 -1 695 -1 925
Others 135 -248 -155 -241 -228 -334 -235 -352 -564 -529 -509 -1 002
Operational FCF AVTOVAZ 0 62 115 28
Operational FCF -919 495 273 512 1 376 177 -508 25 -3 716 2 007 1 670 1 084 597 827 1 083 1 033 1 107 945 607 153
Dividends received from Nissan 99 183 267 345 383 431 456 418 0 88 274 427 406 432 547 728 710 784 579
Dividends received from Volvo 0 77 77 208 120 158 477 258 81 0 38 47
Dividends received from Daimler 22 27 27 32 34 44 51 44 46
Dividends received from others excl. RCI 7 6 13 13 3 12 0 0 1 6
FCF -912 600 533 856 1 929 693 94 961 -3 028 2 088 1 758 1 419 1 077 1 260 1 547 1 614 1 879 1 706 1 435 778
Dividend Paid 183 219 258 316 383 493 684 883 1 054 0 0 88 -402 -537 -542 -599 -794 -996 -1 108 -1 120(1) with Renault VI
(2) Consolidation of AvtoVAZ
BEFORE IFRS
PROPERTY OF GROUPE RENAULT 73INVESTOR RELATIONS – 2020 PRESENTATION
Automotive Net Financial Position
8,29,7 10,1
11,813,6
15,9
19,721,2 22,1
19,416,5
22,824,6 24,6
23,224,9
28,530,9
33,336,1 35,3
-2,7-4,8 -3,9
-2,5 -1,7 -1,6 -2,3 -2,4 -2,1
-7,9 -5,9
-1,4-0,3
1,5 1,8 2,1 2,7 2,4 3,2 3,71,7
Shareholders' equity
Automotive NetFinancial Position
(billion euros)
Former
GAAPs
IFRS
GAAPs
(1) From 2016, Automotive Net Financial Position & Shareholder’s Equity include AvtoVAZ
(2) Restated to include an adjustment of +€281m related to Renault SA redeemable shares
(3) Including IRFS16 impact (+€633mn as at 2020/01/01)
Debt
Cash
PROPERTY OF GROUPE RENAULT 74INVESTOR RELATIONS – 2020 PRESENTATION
Renault Investors Relation Contact
Thierry Huon
Investor Relations Director
+33 1 76 84 53 09
Christophe Rochelle
Investor Relations
+33 1 76 83 05 13
Investor relations internet site: http://group.renault.com/finance
Clémentine de Quatrebarbes
Investor Relations
+33 1 76 84 60 89
PROPERTY OF GROUPE RENAULT 75INVESTOR RELATIONS – 2020 PRESENTATION