CEO / CFO - Renault · CEO / CFO 15.02.2018. 2 Disclaimer ... 1 2 2017 AVTOVAZ Group IFRS financial results 3 2018 vision 4 Q&A session 2017 LADA commercial results ... RSKG (Russian

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AVTOVAZ GROUP 2017 IFRS FINANCIAL RESULTS PRESS-CONFERENCE

Nicolas MAURE / Stefan MAUERER

CEO / CFO

15.02.2018

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Disclaimer

15.02.2018 AVTOVAZ GROUP 2017 IFRS FINANCIAL RESULTS PRESS-CONFERENCE

EMBARGO: The content of this presentation must not be disclosed until

12:00 Moscow time of February, 15th

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 and can lead to a difference between the exact figures and

those given or deduced from said information and statements.

PJSC AVTOVAZ 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. PJSC AVTOVAZ 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 PJSC AVTOVAZ can be found on AVTOVAZ’s web sites

(www.lada.ru and http://info.avtovaz.ru).

http://www.lada.ru/en





http://info.avtovaz.ru/







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Content

1

2017 AVTOVAZ Group IFRS financial results 2

2018 vision 3

4 Q&A session

2017 LADA commercial results


1. 2017 LADA COMMERCIAL RESULTS Nicolas MAURE

President & Chief Executive Officer

5

LADA Russia Market Share Results of 2017


18.3%

16.4% 15.5%

16.8%

18.7% 19.5%

19.5%

17.1%

16.1%

17.5%

19.6%

20.5%

2012 2013 2014 2015 2016 2017

PC only

PC+LCV

The highest market share for the last 6 years

Source: AEB RUS

6

LADA is the Best Selling Brand in Russia


4 LADA models are in TOP-10

№2 Granta

№8 Largus

№9 XRAY

№3 Vesta

Source: AEB RUS

7

Successful launch of LADA Vesta SW and LADA Vesta SW Cross


Start of Sales on October 25, 2017

5 518 units sold in 2017

8

LADA Dealers: the largest dealer network in Russia


300 LADA dealerships

58% of dealerships have a new external visual identification

50 dealerships are fully compliant to new LADA standards

9

LADA EXPORT 2017 (RETAIL SALES)


LADA vehicles are sold in 30

countries

The best selling model is LADA 4x4 Sales of LADA Vesta and Vesta

SW/SW Cross were launched in

Europe and CIS countries

Belarus: launch of the second importer, record market share of 11.1%, +3.3 pt vs

2016

Kazakhstan: LADA share is on the level of 18.7%, +1.4 pt vs 2016

Export started to China, Cuba, Lithuania and Jordan

18.7 K units

24 K units

Retail sales on international markets

increased by +28%

2016 2017

10

New markets opening – example Cuba and Jordan


11

Development of LADA Aftersales Business


+46% turnover increase vs. 2016

B RUB

10.5 12.8 14.0

20.3

2014 2015 2016 2017

The best result ever

12

LADA Sport – focus on Russia


RSKG (Russian Circuit Racing Series): Touring: 2nd place in personal and 1st place in

team standing

Super-Production: 1st place in personal and 2nd

place in team standing

National: 2nd place in personal and 3rd place in

team standing

Rally: Champions and Russian Cup winner

7 stages of LADA Rally MonoCUP and 16

participating teams

Karting: KZ-2: 1st place in personal and 1st place

in team standing

63 podiums

2. 2017 AVTOVAZ GROUP IFRS FINANCIAL RESULTS Stefan MAUERER

EVP, Chief Financial Officer

14

AVTOVAZ GROUP wholesales volume


Units (incl. SKD + CKD)

LADA RF LADA Export Alliance partners Other partners

+16.2% +44.5% +13.8% +2.5%

275,688

17,275

94,353

32,104

320,222

24,955

107,375

32,909

Lada RF Lada Export Alliance partners GM2016 2017 2016 2017 2016 2017 2016 2017

RF – sales in Russian Federation

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AVTOVAZ GROUP revenues


2016 2017

CHANGE

17 vs 16

Unit wholesales incl. SKD & CKD (units) 419,420 485,461 +15.7%

Group revenues (B RUB) 184.9 225.6 +22.0%

of which: LADA Brand incl. aftersales

136.9 175.1 +27.9%

Renault-Nissan Alliance 40.5 42.3 +4.4%

Other 7.5 8.2 +9.3%

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AVTOVAZ GROUP revenues variance analysis


Change 2017 vs 2016: + 40.7 B RUB (+22.0%)

184.9

+19.1 +3.3

+3.4 +9.4

2016 VolumeLADA RF

VolumeLADAExport

Model Mix/PriceLADA

Sales toAlliance,Partners& others

Aftersales(LADA-Image)

2017

225.6

+5.5 B RUB

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AVTOVAZ GROUP operating margin and net result


2016 2017 CHANGE

B RUB B RUB 17 vs 16

Operating margin -16.2 1.6 +17.8

in % from Revenue -8.8% 0.7% +9.5pp

Other operating income 1.3 1.1 -0.2

Other operating expenses1) -25.7 -3.3 +22.4

Net interest income / expenses -10.0 -7.3 +2.7

Other finance income / expenses 1.9 -0.6 -2.5 Share in net income / loss of associates

and joint ventures 0.6 -1.6 -2.2

Current and deferred taxes 3.3 0.4 -2.9

Net result for the period -44.8 -9.7 +35.1

in % from Revenue -24.2% -4.3% +19.9pp

1) One-time restructuring cost, thereof impairment loss 18 B RUB in 2016, 0 B RUB in 2017

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Operating margin 2017 vs 2016


-16.23

1.60

-0.17

2.84

12.22

1.12

0.07

0.08

-2.94 0.25

4.44

1.30 -1.38

2016 F/XVolume/

price/MIX

Bought outparts (BOP)performance

Rawmaterials

Manufacturingperformance &

Logistics Warranty

Non-recurringCOGS &others R&D G&A

Spare partscontribution

Operatingmargin fromsubsidiaries 2017

(-8.8%)

(+0.7%)

B RUB

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AVTOVAZ GROUP 2017 Free cash flow analysis


B RUB

Operating cash flow

+8.7

-6.5

-5.2

Income tax

Net investments

Other changes in working

capital

-3.4 +1.4

+9.8

- 0.6

Payables

Trade

receivables

Inventories

Free cash

flow

+3.9

-0.4

Net interest

3. 2018 VISION Nicolas MAURE

President & Chief Executive Officer

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LADA line-up development


New models New models New models 2 5 5

4 Facelifts 2 Facelifts 5 Facelifts

2017 - 2019 2020 - 2022 2023 - 2026

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AVTOVAZ Group 2018 key tasks


1. Ensure continued Safety, Quality & Customer satisfaction

2. Sustain market share for LADA car sales in Russia

3. Grow export sales, incl. new markets opening

4. Ensure launch of new LADA models in 2018 (to be introduced in Moscow

Auto show 2018)

5. Secure timely preparation and execution of new projects (SOP 2018-2021)

including ramp-up of Engineering resources

6. Boost purchasing performance taking the full benefit of volume increases and

new projects business awards with continued localization focus

7. Further develop corporate social responsibility and continued cooperation with

Trade Union and Federal/Regional state authorities

8. Execute mid-term roadmap as approved by the Board of Directors

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2018 Outlook


Forecast

• Turnover growth more than Russian market growth

• Positive operating margin

• Tight management of working capital and CAPEX while ensuring timely projects implementation

Opportunities

• Russian market growth

• Export markets growth (Kazakhstan, Belarus etc.) + new countries

• Continued Russian State support to domestic market and export

• Interest rates

• …

Risks

• Supply shortages/bottlenecks

• Raw materials prices

• RUB/EUR FX fluctuation

• Available budget for State support measures

• Export to Europe (emission regulation and CO2 penalties)

• Cost to support distressed suppliers

• …

4. Q & A

Documents

CEO / CFO - Renault · CEO / CFO 15.02.2018. 2 Disclaimer ... 1 2 2017 AVTOVAZ Group IFRS financial results 3 2018 vision 4 Q&A session 2017 LADA commercial results ... RSKG (Russian