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DECEMBER 2, 2009 RENAULT GROUP Société Générale Conference Thierry Moulonguet, EVP & CFO December 2 nd , 2009

Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

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Page 1: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009

RENAULT GROUPSociété Générale Conference

Thierry Moulonguet, EVP & CFODecember 2nd, 2009

Page 2: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 2

GLOBAL TIV BOTTOMED OUT IN 2009

40

45

50

55

60

65

70

75dé

c-89

juin

-90

déc-

90ju

in-9

1dé

c-91

juin

-92

déc-

92ju

in-9

3dé

c-93

juin

-94

déc-

94ju

in-9

5dé

c-95

juin

-96

déc-

96ju

in-9

7dé

c-97

juin

-98

déc-

98ju

in-9

9dé

c-99

juin

-00

déc-

00ju

in-0

1dé

c-01

juin

-02

déc-

02ju

in-0

3dé

c-03

juin

-04

déc-

04ju

in-0

5dé

c-05

juin

-06

déc-

06ju

in-0

7dé

c-07

juin

-08

déc-

08ju

in-0

9dé

c-09

juin

-10

déc-

10

PC + LCV TIV (Million units)

12-m moving Quarter trend YTD trend 2009 and 2010

60

68

Page 3: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 3

1999 2000 2001 2002 2003 2004 2005 20060 %

5 %

10 %

15 %

20 %

25 %

30 %

2007

35 %

11%

30%

27%

23%

19%17%17%17%

35%

37%

2008

RENAULT : 10 YEARS EXPERIENCE IN BUILDING A SOLID INTERNATIONAL POSITION

Group Sales outside Europe (%)

Page 4: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 4

TWO KEY ASSETS IN EMERGING MARKETSFIRST : THE ENTRY RANGE…..

5 derivatives based on the Logan Platform

LOGAN PICK UP

LOGAN VANLOGAN MCVLOGAN SEDAN

SANDERO

+ 3 models to come 2010 -2012

Page 5: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 5

…. AND SECOND : RENAULT SAMSUNG MOTORS

New SM 3 QM5 / KOLEOS

SM 7 SM 5

Page 6: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 6

SUSTAINABLE MOBILITY FOR ALLRENAULT IN LINE TO ACHIEVE 2012-2015 TARGETS…

90

100

110

120

130

140

150

160

170

180

190

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2015 2020

CA

FE (g

CO

2/km

NED

C)

Renault 2008142.5g

ACEA 2008152.5g

EU CO2 reg. 130 g

Vehicle fundamentalsGasoline technologyDiesel technologyStop&Start

95 g

Electric vehicle

Page 7: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 7

… THANKS TO NEW CHAMPION ENGINES

dCi 90

99 g

< 17.000 €

dCi 110

127 g

< 24.500 €

dCi 110 DCT

119 g

< 21.500 €

dCi 90

125 g

< 21.500 €

dCi 85

94 g

< 15.500 €

Page 8: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 8

WHY THE ELECTRIC VEHICLE ?A real answer to curbing well-to-wheel CO2 emissions

12

62

0

128

136

184

0 20 40 60 80 100 120 140 160 180 200

Megane 3Gasoline 1.6 16v

CO2 emission (g/km)

Megane 3Diesel 1.5 dCi

2011 EVEU mix electricity

2011 EVFR mix electricity

2011 EVEU mix coal std.

2011 EVwindmill

Well to tankTank to wheel

Page 9: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 9

THE BREAKTHROUGH100% electric vehicle, accessible to all

! Oil price

! CO2 reduction pressure

! Cost of battery and EV technologies

! Availibility of Infrastructure

! Changing consumer habits

20163M cars

20206M cars

Potential annual market volume

Page 10: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 10

REINFORCE ALLIANCE SYNERGIES

1.5 billion euros of Alliance synergies

o/w : 45% for Renault – 55% for Nissan

Page 11: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 11

2009 ACTION PLAN – WHERE DO WE STANDMEASURES & 2 LEVERS TO FACE THE CRISIS

AIMING FOR A POSITIVE FREE CASH FLOW

1. Increase market shares2. Reduce R&D expenses3. Decrease G&A and overheads4. Reduce inventories and reorganize the distribution system5. Adapt our production level6. Cash in customer receivables7. Cut investments8. Carry out real estate divestments

! Reinforce the Renault Nissan Alliance synergies! Work conjointly with governments in France & in EuropeLEVERS

Page 12: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 12

FIXED COSTS REDUCTION

- 15%

Manufacturing fixed costs

G&A

Net Capex

TOTAL FIXED COSTS

R&D

- 23%Automobile revenues

H1’09 vs. H1’07

2009 vs. 2007Estimates

- 20%

- 19%

- 9%

- 24%

Fixed marketing expenses Stable

Labor costs - 20%

Page 13: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 13

FIRST HALF 2009 – KEY POINTS

! FCF : + €848m at end June 2009

! Net debt reduced by €0.7bn

! 2009 Fixed costs -15% vs. 2007

! Inventory - € 2.1bn in 12 months

Page 14: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 14

ZOOM ON EUROPE PC MARKET SHARE :STRONG MOMENTUM VS. 2008

Group PC MS in Europe2006-2009

-0,2%

0,1%

0,9%

-0,4%

-0,2%

0,0%

0,2%

0,4%

0,6%

0,8%

1,0%

Q1 Q2 Q3

Group PC MS in Europe2009 vs. 2008

8,6%

8,0%8,3%

8,5%

7,0%

7,5%

8,0%

8,5%

9,0%

2006 2007 2008 YTD Sept 2009

Page 15: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 15

ZOOM ON OCTOBER: ALL TOP 15 MARKETS GAINING MARKET SHARE

+ 1.816.0%3 352TURKEY

+ 6.137.1%3 522MOROCCO

+ 1.910.8%3 871NETHERLANDS

+ 0.135.2%4 051ROMANIA

+ 4.024.0%4 316ALGERIA

+ 2.113.0%4 920ARGENTINA

+ 2.212.6%6 111BELGIUM+LUX

+ 1.55.1%6 221RUSSIA

+ 1.65.2%9 459UNITED KINGDOM

+ 2.39.2%12 562SOUTH KOREA

+ 0.44.6%12 900BRAZIL

+ 1.612.1%13 063SPAIN

+ 1.96.7%14 043ITALY

+ 1.97.1%23 598GERMANY

+ 2.027.4%66 989FRANCE

Evolution of PC+LCV market share

vs. oct.08

Market share PC+LCVoct.09

Sales Volumes

oct.09

Page 16: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 16

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008 2009

ORDER BANK REMAINS AT A VERY HIGH LEVEL DESPITE Q3 MARKET SHARE IMPROVEMENT

Europe Orderbank Group PC+LCV(At the start of each month)

Page 17: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 17

-7%

-45%

-36%

-13%

3%

-4%

-22% -22%

-11%

1%

Renault Group Production sites

Renault Group Registrations

PRODUCTION & REGISTRATIONS: STRONG Q4 AHEAD

Evolution in volume vs. Y-1

Q3 2008 Q4 2008 Q1 2009 Q2 2009

Q3 2009 Q4 2009

Page 18: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 18

LEVERS FOR 2010

! NEW LCV LINE-UP GOING INTO 2010! MASTER, TRAFIC Ph 3, MARKET LEADER

! MEGANE IN FULL SWING! COUPE-CAB – FURTHER INCREASING MIX! SCENIC & ESTATE FULL YEAR

! INTERNATIONAL TOOL KIT! EXPANDING THE LOGAN OFFER (NEW CROSS-OVER)! NEW SM3 & FLUENCE! NEW SM5

Page 19: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 19

QUESTIONS & ANSWERS

Page 20: Thierry Moulonguet, EVP & CFO December 2 , 2009 · 2014-07-03 · carry out real estate divestments! ... united kingdom 9 459 5.2% + 1.6 south korea 12 562 9.2% + 2.3 brazil 12 900

DECEMBER 2, 2009 20

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.