renault group first half 2011 financial results · renault group h1 2011 28 july 2011 renault...

RENAULT GROUP H1 2011 28 JULY 2011 RENAULT PROPERTY

RENAULT GROUPFIRST HALF 2011 FINANCIAL RESULTS

2RENAULT GROUP H1 2011 RENAULT PROPERTY28 JULY 2011

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.renault.com), in the section Finance / Regulated Information.


AGENDA

01 H1 2011 FINANCIAL RESULTSDOMINIQUE THORMANNCFO

02 OPERATIONS UPDATE & OUTLOOKCARLOS TAVARESCOO

03 QUESTIONS & ANSWERS

H1 2011 FINANCIAL RESULTSDOMINIQUE THORMANNCFO

5RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011

TOTAL INDUSTRY VOLUMES & GROUP UNIT SALES H1 2011 vs. H1 2010

TIV + 51.6 %GROUP + 73.3 %

TIV - 0.8 %GROUP - 7.4 %

TIV + 28.5 %GROUP + 20.0 %

TIV + 2.1 %GROUP - 9.5 %

TIV + 15.6 %GROUP + 34.9 %

TIV + 5.9 % GROUP + 1.9 %

*

*PC+LCV including USA & Canada


RENAULT GROUP UNIT SALES H1 2011 vs. H1 2010 INTERNATIONAL SALES MIX AT 39.5% (+ 6.1 PTS VS. H1 2010)

1 349

898

133 129 143 46

1 374

832

179 154 12980

H1'10 H1'11 H1'10 H1'11 H1'10 H1'11 H1'10 H1'11 H1'10 H1'11 H1'10 H1'11GLOBAL+ 1.9 %

EUROPE - 7.4 %

AMERICAS+ 34.9 %

EURASIA + 73.3 %

THOUSAND UNITS(PC + LCV)

ASIA / AFRICA- 9.5 %

EUROMED+ 20.0 %

INTERNATIONAL + 20.5 %


H1 2011 FINANCIAL RESULTS

H1 2010 H1 2011 CHANGERevenues 19,668 21,101 + 7.3 %

Operating margin + 780 + 630 - 150

in % of revenues + 4.0 % + 3.0 % - 1.0 pts

Other operating income & expenses - 62 + 142 + 204

Net financial income & expenses - 246 - 81 + 165

Associated companies + 531 + 557 + 26

Current & deferred taxes - 180 + 5 + 185

Net income + 823 + 1,253 + 430

(million euros)


H1 2011 GROUP REVENUES UP 7.3 %

H1 2010 H1 2011 CHANGE

Global unit sales (units) 1,348,345 1,374,368 + 1.9 %

Group Revenues 19,668 21,101 + 7.3 %

of which Automotive 18,778 20,143 + 7.3 %

Sales financing 890 958 + 7.6 %

(million euros)

Q1 Q2

+ 15.0 % + 0.7 %


AUTOMOTIVE REVENUES VARIANCE ANALYSIS

CHANGE H1 2010 / H1 2011 : + €1,365m

18,77820,143

- 80

448

- 167

808

- 174

296 234

Currency

Volume

Geographical mix

Mixmodel

Sales to partners Others

+ 7.3%- 0.4pts + 2.4pts - 0.9pts + 4.3pts + 1.6pts + 1.2pts

Price

- 0.9pts

H1 2010 H1 2011(million euros)


38

780 630

- 102 59 - 91

- 313 281

5- 45

- 39 3719

GROUP OPERATING MARGIN VARIANCE ANALYSIS

Currency

Volume

Mix / PriceEnrichment

Raw Materials

R&D

G&A RCI OthersManufacturing &

logistics

Warranty

Purchasing

€279m

H1 2010 H1 2011

CHANGE H1 2010 / H1 2011 : - €150m

(million euros)


OPERATING MARGIN BY ACTIVITY

H1 2010 H1 2011 CHANGE

AUTOMOTIVE + 410 + 221 - 189

% Automotive revenues + 2.2 % + 1.1 % - 1.1 pts

SALES FINANCING + 370 + 409 + 39

% Sales Financing revenues + 41.6 % + 42.7 % + 1.1 pts

GROUP OPERATING MARGIN + 780 + 630 - 150

% Group revenues + 4.0 % + 3.0 % - 1.0 pts

(million euros)


RCI BANQUE

in % of average loans outstandingH1 2010 H1 2011

New financing (€bn) 4.9 5.6

Average loans outstanding (€bn) 20.7 22.3

Net banking income 5.75 % 5.51 %

Cost of risk (customer & dealer) - 0.49 % - 0.14 %

Operating expenses - 1.66 % - 1.63 %

Pretax income 3.59 % 3.76 %

(in percentage of average loans outstanding)


OTHER OPERATING INCOME & EXPENSES

H1 2010 H1 2011

Net restructuring costs - 39 + 37

Impairment of assets / reversal - 50 + 32

Profit / loss on asset sales + 27 + 73

Total other operating income & expenses - 62 + 142

(million euros)





in % of revenues + 4.0 % + 3.0 % -1.0 pts





Net income + 823 + 1,253 + 430

(million euros)


ASSOCIATED COMPANIES

H1 2010 H1 2011 CHANGE

Nissan + 460 + 441 - 19

Volvo AB * + 121 + 70 - 51

AvtoVaz ** - 56 + 37 + 93

Others + 6 + 9 + 3

Total associated companies + 531 + 557 + 26

Q1 Q2

+ 93 + 348

(million euros)

* Volvo stake at 21.8% in H1’10, 6.8% in H1’11**AvtoVaz is consolidated with a 3 month time lag





in % of revenues + 4.0 % + 3.0 % - 1.0 pts





Net income + 823 + 1,253 + 430

(million euros)


AUTOMOTIVE NET FINANCIAL DEBT REDUCTION

+ 121Operational

free cash flow

+ 1,668Cash flow

- 437ChangeIn WCR

Dividendspaid

Net tangible& intangible investments

+ 214Decrease in net debt

Dividends received

fromassociates

Leased vehicles

- 435Capitalized

R&DFinancial

Investments & Others

- 585Net Capex

-90 + 144 - 89+ 38

(million euros)

DEC 31ST 2010 : € 1,435 mJUNE 30TH 2011 : € 1,221 m


LIQUIDITY RESERVES

Cash = € 8.8 BnCredit lines = € 4.0 Bn(of which drawn zero)

TOTAL = € 12.8 Bn

LIQUIDITY RESERVES

Cash = € 7.1 BnCredit lines = € 4.0 Bn(of which drawn zero)

TOTAL = € 11.1 Bn

AUTOMOTIVE DIVISION LIQUIDITY

END 2010 END H1 2011

1 BOND ISSUED IN H1 2011€500m 2016 @ 4.625 %


LIQUIDITY RESERVES

Cash = € 0.4 BnECB eligible = € 1.6 BnCredit lines = € 4.5 Bn(of which drawn zero)

TOTAL = € 6.5 Bn

LIQUIDITY RESERVES

Cash = € 0.6 BnECB eligible = € 1.8 BnCredit lines = € 4.4 Bn(of which drawn zero)

TOTAL = € 6.8 Bn

RCI LIQUIDITY

ISSUED IN H1 2011:3 EURO BONDS

€750m 2014 @ 3.25%€750m 2016 @ 4.00%€500m 2014 @ 3.75%

GERMAN LEASES CONDUIT SECURITIZATION €500mFIRST USD ISSUE FOR RCI BANQUE, $1.25bn MULTI TRANCH BOND

$450m 2014 FRN, $300m 2014 @ 3.40%, $500m 2016 @ 4.60%

END 2010 END H1 2011

OPERATIONS UPDATE & OUTLOOKCARLOS TAVARESCOO


WHAT WAS BETTER / WORSE THAN EXPECTED IN H1?

TIV SALES OUTSIDE EUROPERCIINVESTMENTSQUALITY

SUPPLY CONSTRAINTSEUROPEAN COMMERCIAL PERFORMANCEMIX / PRICEINVENTORIESRAW MATERIALSCURRENCIES


PRODUCT QUALITY & RELIABILITY - CONTINUOUS IMPROVEMENT

% OF BREAKDOWNS8

RENAULT 2009

RENAULT 2008RENAULT 2007

RENAULT 2006

RENAULT 2005

RENAULT 2010

1

2

3

4

5

6

7

1400 1600 1800 2000 2200 2400 2600

NUMBER OF DEFAULTS / THOUSAND

RELI

ABIL

ITY

QUALITY


HIGHLIGHTS H1 : MODEL LAUNCHES

EURASIAEUROPE

Latitude Energy DCi 130 Sandero Stepway

ASIA / AFRICAAMERICAS

Fluence (India)

Scenic(China)

Fluence Latitude Sandero Phase II


VOLUME GROWTH DUE TO STRONG INTERNATIONAL PERFORMANCE

50

5

10

15

20

25

30

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

% M

IX O

F UN

IT S

ALES

OUT

SIDE

EUR

OPE

2012 2013

H1 2011 = 39.5%

45%45

40

35


RECORD SALES DRIVEN BY THE RENAULT BRAND + 6 %H1 2011 = 1.4 M UNITS, + 1.9 % VS H1 2010

1,141

17756

RENAULT DACIA RENAULT SAMSUNG MOTORS+ 62 - 5 - 31

+ 6 % - 3 % - 36 %(thousandf units)


PREPARING THE FUTURE : INDIA AND CHINA

BUILDING THE RENAULT BRAND IN CHINA53 DEALERS IN H1 2011

OBJECTIVE 2011 = 80 DEALERSOBJECTIVE 2013 > 130 DEALERS

RENAULT LAUNCH IN INDIA,14 DEALERS IN H1 2011

OBJECTIVE 2011 = 40 DEALERS OBJECTIVE 2013 >100 DEALERS


MARKET SHARE GAINS IN 8 OF OUR TOP 15 MARKETS IN H1 2011

CHANGE INMARKET SHAREUNITS MARKET SHARE

25.2%366,728FRANCE - 3.3GERMANY 5.2%90,890 - 0.1

6.2%69,000ITALY - 0.7

10.0%49,868SPAIN - 0.9

4.9%80,472BRAZIL + 0.6

16.4%68,831TURKEY + 1.713.7%54,003BELGIUM LUXEMBOURG + 0.9

+ 0.7RUSSIA 6.0%74,337

+ 0.311.9%50,499ARGENTINA

27.3%42,036ALGERIA - 3.2IRAN 4.7%35,132 + 1.9NETHERLANDS 9.3%33,680 + 0.7COLOMBIA 16.7%24,768 + 1.0

SOUTH KOREA 6.7%52,602 - 4.7

4.0%46,779UNITED KINGDOM - 0.9

GROUP PC+LCVINTERNATIONAL MARKETSEUROPEAN MARKETS


SUPPLY CONSTRAINTS H1

Operating margin estimated at €150m

Volume & mix/price = 80%

Emergency logistics = 10%

R&D for product changes = 10%

Inventories impacted by €180m (WCR)

12%15% 18%

15%

56%

77%84% 81% 80%

84%

22%

43%

JAN FEB MAR APR MAY JUN

1.2l Petrol

1.5l Dci Diesel

EXAMPLE OF ORDER MIX ON CLIO IN FRANCE

FULL YEAR 2011 TSUNAMI IMPACT ON OPERATING MARGIN : ESTIMATED AT €200M

2011

TSUNAMI IMPACT ON H1 2011 :


EUROPEAN ORDERBOOK : + 11% VS JUNE 2010

PC + LCV ORDER PORTFOLIO(Europe Region)

JUNE’07 JUNE’08 JUNE’09 JUNE’10 JUNE’11


DISTRIBUTION STOCK

New vehicle physical distribution stock in K units

Number of days of sales (previous period)

69 80 67 60 45 52 47 50 51 4956 53 59

GROUP

INDEPENDENTDEALERS

TOTAL


CHANGE IN WORKING CAPITAL REQUIREMENTH1 2011 VS DEC 31ST 2010

AccountsPayables

+ 772

Inventory-1,170

Accounts Receivables

- 410

Others+ 371

Total- 437

(million euros)


MONOZUKURI

TARGET€2,400m savings over 3 years (12 % of total delevered cost)

EXAMPLEScenic in Douai : - €370 per unit, of which :

/ purch

- 4PREVIOUSLY : Anti-corrosion performed by supplier

NOW : Parts integrated beforeanti-corrosion at the factory

- 5€asing

+0.65€/ plant

Total gains

.35€ /veh.


CAPEX + R&D

2008 2009 H1 2010 2010 H1 2011 2011e

NET CAPEX 5.6 % 4.4 % 2.2 % 2.5 % 2.8 %

NET R&D 5.5 % 4.5 % 4.0 % 4.0 % 4.4 %

TOTAL 11.1 % 8.9 % 6.2 % 6.5 % 7.2 % < 9 %

(% of Group revenues)

TARGET = AN AVERAGE OF 9% IN THE PERIOD 2011-2013


R&D + CAPEX INCREASE TO SUPPORT PRODUCT LAUNCH AND LOCALIZATION

2011 2012

REGIONAL INDUSTRIALIZATIONNEW MODEL FACELIFT

A/B

D/E

C

M0

EV

C-SEGMENT MODEL YEAR

KANGOO ZE FLUENCE ZE TWIZY ZOE

TWINGO B HATCHIndia

B SEDANIndia CLIO 4 A-ENTRY

Argentina

FLUENCEIndia

QM5 / KOLEOSSM7 KOLEOSIndia D-SEGMENT MODEL YEAR

DUSTERBrazil

SANDEROBrazil

DUSTERRussia

DUSTERColumbia

DUSTERIndia

LOGANIran

SANDEROColumbia

FAMILY CAR SMALL LCV


H2 PRODUCT LAUNCH : DUSTER IN BRAZIL

H79 SUR CHAINE BRESIL


H2 PRODUCT LAUNCH : ELECTRIC VEHICLE RANGE ACCESSIBLE TO ALL

OPERATION SAVE BETTER PLACE - COPPENHAGEN

FLUENCE ZE PRODUCTION KANGOO ZE PRODUCTION

PUBLIC INFRASTRUCTURE DEALER INFRASTRUCTURE


OUTLOOK: SECOND HALF 2011

OPPORTUNITIESORDER BOOK

WORKING CAPITAL

EV LAUNCH

GROWTH OUTSIDE EUROPE

RISKSREBALANCING PRODUCTION & SALES MIX

RAW MATERIALS

CURRENCIES


FULL YEAR 2011 TOTAL INDUSTRY VOLUMES (PC+LCV VS FY 2010)

GLOBAL + 3 % to + 4 %

EUROPE 0 % to - 2 %

FRANCE - 4 % to - 6 %

SUPPLY CONSTRAINTS IMPROVING IN Q3

PRODUCTION RAMP UP

2011 FULL YEAR OUTLOOK CONFIRMED

UNIT SALES AND REVENUES > 2010

AUTOMOTIVE OPERATIONAL FREE CASH FLOW > €500m

CAPEX + R&D < 9 % OF GROUP REVENUES

FINANCIAL GUIDANCE FULL YEAR 2011


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