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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.
3RENAULT GROUP H1 2011 RENAULT PROPERTY28 JULY 2011
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
6RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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 %
7RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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)
8RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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 %
9RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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)
10RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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)
11RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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)
12RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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)
13RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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)
14RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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)
15RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
16RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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)
17RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
18RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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 %
19RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
21RENAULT GROUP H1 2011 RENAULT PROPERTY28 JULY 2011
WHAT WAS BETTER / WORSE THAN EXPECTED IN H1?
TIV SALES OUTSIDE EUROPERCIINVESTMENTSQUALITY
SUPPLY CONSTRAINTSEUROPEAN COMMERCIAL PERFORMANCEMIX / PRICEINVENTORIESRAW MATERIALSCURRENCIES
22RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
23RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
HIGHLIGHTS H1 : MODEL LAUNCHES
EURASIAEUROPE
Latitude Energy DCi 130 Sandero Stepway
ASIA / AFRICAAMERICAS
Fluence (India)
Scenic(China)
Fluence Latitude Sandero Phase II
24RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
25RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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)
26RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
27RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
28RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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 :
29RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
EUROPEAN ORDERBOOK : + 11% VS JUNE 2010
PC + LCV ORDER PORTFOLIO(Europe Region)
JUNE’07 JUNE’08 JUNE’09 JUNE’10 JUNE’11
30RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
31RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
CHANGE IN WORKING CAPITAL REQUIREMENTH1 2011 VS DEC 31ST 2010
AccountsPayables
+ 772
Inventory-1,170
Accounts Receivables
- 410
Others+ 371
Total- 437
(million euros)
32RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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.
33RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
34RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
35RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
H2 PRODUCT LAUNCH : DUSTER IN BRAZIL
H79 SUR CHAINE BRESIL
36RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
H2 PRODUCT LAUNCH : ELECTRIC VEHICLE RANGE ACCESSIBLE TO ALL
OPERATION SAVE BETTER PLACE - COPPENHAGEN
FLUENCE ZE PRODUCTION KANGOO ZE PRODUCTION
PUBLIC INFRASTRUCTURE DEALER INFRASTRUCTURE
37RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
OUTLOOK: SECOND HALF 2011
OPPORTUNITIESORDER BOOK
WORKING CAPITAL
EV LAUNCH
GROWTH OUTSIDE EUROPE
RISKSREBALANCING PRODUCTION & SALES MIX
RAW MATERIALS
CURRENCIES
38RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
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
39RENAULT PROPERTYRENAULT GROUP H1 2011 28 JULY 2011
Q&A
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