h117 renault presentation · 10/1/2019 · investor relations –2019 presentation property of...
TRANSCRIPT
PROPERTY OF GROUPE RENAULT 1INVESTOR RELATIONS – 2019 PRESENTATION
GROUPE RENAULT
October 1st, 2019
Credit Agricole CIB Automotive Credit Conference
OCTOBER 1, 2017
PROPERTY OF GROUPE RENAULT 2INVESTOR RELATIONS – 2019 PRESENTATION
Disclaimer
OCTOBER 1, 2017
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 – 2019 PRESENTATION
Agenda
OCTOBER 1, 2017
02 Renault Group – RCI Bank
01 Renault Group – Automotive
1. Renault in Brief
2. 2019H1 Results
3. 2022 Mid Term Plan “Drive the Future”
PROPERTY OF GROUPE RENAULT 4INVESTOR RELATIONS – 2019 PRESENTATION
Renault in Brief
01.1
OCTOBER 1, 2017
PROPERTY OF GROUPE RENAULT 5INVESTOR RELATIONS – 2019 PRESENTATION
▪ High potential in emerging markets
▪ Diversified profit pool
▪ European leadership for EV
▪ The Alliance is a key competitive advantage
▪ Clear dividend policy
▪ Ambitions for 2022: revenues at €70bn with a 7% operating margin
Investment Case
OCTOBER 1, 2017
PROPERTY OF GROUPE RENAULT 6INVESTOR RELATIONS – 2019 PRESENTATION
Renault – In Brief
OCTOBER 1, 2017
▪ Founded in 1898, listed on the Paris NYSE Euronext since 1995
▪ Renault created an Alliance with Nissan in 1999, reinforced by
Mitsubishi in 2016
▪ Strategic cooperation with Daimler
▪ Market capitalization of around €17 bn as of Sep 2018
▪ 183,002 employees worldwide in 130 countries in 2018
▪ 3.9 million vehicles sold worldwide in 2018, 4.2% market share
▪ Renault brand is ranked #2 in Europe
PROPERTY OF GROUPE RENAULT 7INVESTOR RELATIONS – 2019 PRESENTATION
Renault Sales in 2018
OCTOBER 1, 2017
65%
18%
2%
0%
10%
5%
Sales by Brand
Renault
Dacia
RSM
Alpine
Lada
J&HNot JV
JV
49%
12%
19%
11%
9%
Sales by Region
Europe
AMEI
Eurasia
Americas
Asia-Pacific
261
1825
969
179
27
4
323
296
A Veh
B Veh
C Veh
D Veh
E Veh
Other Veh
Small Van
Heavy Van
Sales by Segment467 452
353
275241
191 171134 125 119
0
100
200
300
400
500
Sandero Clio Duster Logan Captur Megane Kwid Kadjar Kangoo Vesta
Top 10 Model Sales in 2018 (k units)
JV
PROPERTY OF GROUPE RENAULT 8INVESTOR RELATIONS – 2019 PRESENTATION
▪ Total funding : 7.8 billion €
Redemption schedule Bonds, Banks & assimilated, excluding CP & redeemable
shares (in million euros (1))
Liquidity reserve: 15.9 G€▪ Available back-up lines : 3.5 billion €
▪ Cash & cash equivalents: 12.4 billion €
Automotive Division (excluding Avtovaz)
(1) fx rates as of June 30, 2019
Funding & Liquidity
OCTOBER 1, 2017
AGENCY LONG-TERM
RATING
SHORT-TERM
RATING
OUTLOOK LATEST PRESS RELEASE /
CREDIT ANALYSIS
Moody's Baa3 P3 stable Credit opinion Mar 2019
Standard & Poor's BBB A2 negative Press release Feb 2019
Fitch BBB - stable Press release Nov 2018
R&I A- - stable Press release Nov 2018
JCR A- - positive Press release March 2018
Credit Rating
PROPERTY OF GROUPE RENAULT 9INVESTOR RELATIONS – 2019 PRESENTATION
2019 H1 Results
01.2
OCTOBER 1, 2017
PROPERTY OF GROUPE RENAULT 10INVESTOR RELATIONS – 2019 PRESENTATION
▪ Resilience in a worsening auto context
▪ AVTOVAZ and RCI performance in line with expectations
▪ Stricter pricing discipline
▪ Cost control (FAST, digitalization)
▪ R&D and capitalization ratio increase due to products offensive
H1 Key Take-Aways
OCTOBER 1, 2017
H1 results in line with expectations
PROPERTY OF GROUPE RENAULT 11INVESTOR RELATIONS – 2019 PRESENTATION
2,079
1,071
372 304214
118
1,939
1,071
353220 206
90
2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019
Groupe Renault’s Sales H1 2019 vs H1 2018
OCTOBER 1, 2017
Thousand units
(PC+LCV)
World Market Share:
International
TIV*
GROUP
4.4%
-13.9%
Global Europe EurasiaAfrica-ME-India-
PacificAmericas China
-7.1% -2.5% -10.4% -8.4% -6.5% -12.6%
-6.7% -0.0% -5.2% -27.7% -3.9% -23.8%
* PC+LCV including USA & Canada
PROPERTY OF GROUPE RENAULT 12INVESTOR RELATIONS – 2019 PRESENTATION
Currency
Volume
Geographicmix
Sales topartners
Others
-7.7%
-4.6 pts -0.1 pts -0.1 pts +1.0 pt -1.2 pts +0.4 pts
Price
-3.1 pts
H1 2018 H1 2019
Productmix
26,867
-1,229
-823+257
-30-34
+95-312
(million euros)
Change H1 2019 vs H1 2018: -€2,076m
Automotive Excluding AVTOVAZ Revenues Variance Analysis
OCTOBER 1, 2017
24,791
PROPERTY OF GROUPE RENAULT 13INVESTOR RELATIONS – 2019 PRESENTATION
Currency
Volume & partners
Mix / Net Enrichment
G&A
RCI Banque& others
Monozukuri
Raw materials
AVTOVAZ(1)
+385
-95
+56-231,914
+23
+78
-213
-471
Change vs H1
2018 : -€260m
H1 2018 H1 2019(million euros)
Group Operating Profit Variance Analysis
OCTOBER 1, 2017
(1) AVTOVAZ net of eliminations
1,654
PROPERTY OF GROUPE RENAULT 14INVESTOR RELATIONS – 2019 PRESENTATION
H1 2019 Financial Results
OCTOBER 1, 2017
In million euros H1 2018 H1 2019 Change
Group Revenues 29,957 28,050 -6.4%
Operating profit 1,914 1,654 -260
% of Group revenues 6.4% 5.9% -0.5 pts
Other operating income & expenses -180 -133 +47
EBIT 1,734 1,521 -213
Net financial income & expenses -121 -184 -63
Associated companies 814 -35 -849
Current & deferred taxes -387 -254 +133
Net income 2,040 1,048 -992
PROPERTY OF GROUPE RENAULT 15INVESTOR RELATIONS – 2019 PRESENTATION
Net tangible& intangibleinvestments
-2,910
Capitalized
R&D
-984
Net capex
-1,442
Operational free
cash flow
Cash flow Change
in WCR
Dividendspaid
Net Change
w/oIFRS 16
transition
Dividends received
fromlisted co.
Financial investments
& others
December 31, 2018: €3,702m
January 1st, 2019: €3,069m*
June 30, 2019: €1,470m
(million euros)
LeasedVehicles -484
Others fromAVTOVAZ
AVTOVAZFCF
Automotive Net Financial Position
OCTOBER 1, 2017
Excl. AVTOVAZ
-131
2,274
+51
-716+473 -1,077
-912 -132
-1,599-147
-2,232
Net Change
withIFRS 16impactIFRS 16
transition impact
-633
* IFRS 16 impact at transition date -€633m
PROPERTY OF GROUPE RENAULT 16INVESTOR RELATIONS – 2019 PRESENTATION
Opportunities
▪ New products launches
▪ Pricing improvement
▪ Competitiveness action plans (FAST, Digital)
Risks
▪ Hard Brexit
▪ Impact of global trade tensions
▪ Regulatory framework unpredictability
H2 2019 Risks & Opportunities
OCTOBER 1, 2017
PROPERTY OF GROUPE RENAULT 17INVESTOR RELATIONS – 2019 PRESENTATION
2019 Outlook
OCTOBER 1, 2017
Within this context,Groupe Renault now expects :
▪ Revenues to be close to last year’s(at constant exchange rates and perimeter)
BrazilEurope
stable(w/o hard Brexit)
-2% to -3%
Russia
~ +8%
Global Automotive Market (1)
~ -3%
and confirms:
▪ Achieving Group operatingmargin around 6%
▪ Generating a positive Automotive operational free cash flow
(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.
PROPERTY OF GROUPE RENAULT 18INVESTOR RELATIONS – 2019 PRESENTATION
03
PROPERTY OF GROUPE RENAULT 19INVESTOR RELATIONS – 2019 PRESENTATION
39
51
>70
2010 2016 End of plan*
A SUSTAINABLE, PROFITABLE GROWTHFINANCE
DRIVE THE CHANGE DRIVE THE FUTURE
2,8%
6,4%>7,0%
2010 2016 End of plan
5% previous
target becomes
floor
POSITIVEAUTOMOTIVE
OPERATIONAL
FREE CASH FLOWEACH YEAR
* incl. AVTOVAZ and with FX from banking consensus September 2017
STRONGREVENUE GROWTH
HIGH LEVEL OF OPERATING PROFIT
FINANCIALDISCIPLINE
in €bn
PROPERTY OF GROUPE RENAULT 20INVESTOR RELATIONS – 2019 PRESENTATION
WALKDOWN GROUP OPERATING MARGINFINANCE
2016 CostReduction
Mix / Price /Enrichment
Volume AVTOVAZ FX &Market risks &Raw materials
20222016 End of plan
6.4%
>7%
PROPERTY OF GROUPE RENAULT 21INVESTOR RELATIONS – 2019 PRESENTATION
INVESTMENT POLICYFINANCE
R&D SPENDING2017-2022
€18bn
CAPEX AND R&DIN % OF REVENUES
6
7
8
9
10
2016 2017 2018 2019 2020 2021 2022
CAP AVERAGE
2017-2022
9%
PROPERTY OF GROUPE RENAULT 22INVESTOR RELATIONS – 2019 PRESENTATION
LIQUIDITY POLICYFINANCE
NET CASH POSITION LIQUIDITY RESERVES
€2.7bn
2016 2017-2022
TARGET*
~ €5bn 2016 2017-2022*
€15.1bnMINIMUM
20% OFREVENUES
* Excluding IFRS 16 impact
PROPERTY OF GROUPE RENAULT 23INVESTOR RELATIONS – 2019 PRESENTATION
A COMPETITIVE DIVIDEND POLICYFINANCE
100% PASS-THROUGH DIVIDENDSfrom listed companies
PAY-OUT ON RENAULTCORE NET PROFIT
(Group Net Result – Associates)
+
COMPETITIVE RETURN FOR RENAULT’S SHAREHOLDERS
7%15%
2016 End of plan
x2
PROPERTY OF GROUPE RENAULT 24INVESTOR RELATIONS – 2019 PRESENTATION OCTOBER 1, 2017