GROUPE RENAULT 2016 FINANCIAL RESULTS CONFERENCE...megane estate 4. scenic 5. megane sedan 6. grand scenic other international launches complete renewal with c & d segment 7. kadjar

GROUPE RENAULT

2016 FINANCIAL RESULTS CONFERENCE

2

INVESTOR RELATIONS

RENAULT FY 2016 PRESENTATION FEBRUARY 10TH 2017 PROPERTY OF GROUPE RENAULT

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.group.renault.com),

in the section Finance / Regulated Information.

DISCLAIMER

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INVESTOR RELATIONS


AGENDA

01FY 2016 FINANCIAL RESULTSCLOTILDE DELBOSEVP, Group Chief Financial Officer

022016 REVIEW AND 2017 OUTLOOKCARLOS GHOSNChairman & Chief Executive Officer

03 QUESTIONS & ANSWERS

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INVESTOR RELATIONS


FY 2016 FINANCIAL RESULTSCLOTILDE DELBOSEVP, Group Chief Financial Officer

01

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INVESTOR RELATIONS


2,809

1,614

356 360 354124

3,183

1,805

364491

354167

GROUPE RENAULT UNIT REGISTRATIONS 2016 VS 2015

GLOBAL

+13.3%

EUROPE

+11.8%

AMERICAS

+0.1%

ASIA-PACIFIC

+34.5%

AFRICA-ME-INDIA

+36.4%

EURASIA

+2.3%

K units

(PC+LCV)

+4.6% TIV +7.0% -6.3% -1.7% -4.1% +9.3%

GROUP

INTERNATIONAL +15.3%

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INVESTOR RELATIONS


2016 2015 CHANGE

Global unit sales (units) * 3,182,625 2,808,926 +13.3%

Group revenues 51,243 45,327 +13.1%

of which: Automotive 48,995 43,108 +13.7%

Sales financing 2,248 2,219 +1.3%

FY 2016 GROUP REVENUES

(million euros)

*2015 restated: since January 1, 2016, volumes for China are reported based

on retail sales versus wholesales previously.

H1 H2

+13.5% +12.7%

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INVESTOR RELATIONS


AUTOMOTIVE REVENUES VARIANCE ANALYSIS

Currency

Volume

Geographic

mix

Sales to

partnersOthers

+13.7%

+8.9 pts +0.2 pts +0.7 pts +3.9 pts -3.9 pts +1.4 pts

Price

+2.5 pts

CHANGE 2016 vs 2015: +€5,887m

FY 2015 FY 2016

(million euros)

Product

mix

43,108

48,995

+3,816

+1,099

+1,691

+312+68

+587-1,686

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INVESTOR RELATIONS


OPERATING PROFIT BY ACTIVITY

2016 2015* CHANGE

AUTOMOTIVE 2,386 1,546 +840

% Automotive revenues 4.9% 3.6% +1.3 pts

SALES FINANCING 896 829 +67

GROUP OPERATING PROFIT 3,282 2,375 +907

% Group revenues 6.4% 5.2% +1.2 pts

(million euros)

* restated IAS 12

H1 H2

4.7% 5.1%

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INVESTOR RELATIONS


2,375

3,282

+184-112

+331+115

+1,036

+55-702

GROUP OPERATING PROFIT VARIANCE ANALYSIS

CurrencyVolume &

partners

Mix / Net Enrichment

G&A

RCI Banque

& other

activities

COST

REDUCTION

+€72m

FY 2015* FY 2016

CHANGE 2016 vs 2015: +€907m

Monozukuri

Raw materials

GROWTH

+€1,091m

(million euros)* Restated IAS12

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INVESTOR RELATIONS


+656

-101

-260

-111

-112

COST REDUCTION ANALYSIS

CHANGE 2016 vs 2015: +€72m

G&AManufacturing &

Logistics

R&DWarrantyPurchasing

Monozukuri

(million euros)

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INVESTOR RELATIONS


2,375

3,282

+184-112

+331+115

+1,036

+55-702

GROUP OPERATING PROFIT VARIANCE ANALYSIS

CurrencyVolume &

partners

Mix / Net Enrichment

G&A

RCI Banque

& other

activities

COST

REDUCTION

+€72m

FY 2015* FY 2016

CHANGE 2016 vs 2015: +€907m

Monozukuri

Raw materials

GROWTH

+€1,091m

(million euros)* Restated IAS12

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INVESTOR RELATIONS


OTHER OPERATING INCOME & EXPENSES

2016 2015

Restructuring costs -283 -157

Impairment of assets -38 -53

Profit / loss on asset sales -4 +10

AVTOVAZ first full consolidation impact +325 -

Others +1 +1

Total other operating income & expenses +1 -199

(million euros)

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INVESTOR RELATIONS


FY 2016 FINANCIAL RESULTS

2016 2015 CHANGE

Revenues 51,243 45,327 +13.1%

Operating profit * 3,282 2,375 +907

in % of revenues 6.4% 5.2% +1.2pts

Other operating income & expenses 1 -199 +200

EBIT 3,283 2,176 +1,107

Net financial income & expenses -323 -221 -102

Associated companies ** 1,638 1,371 +267

Current & deferred taxes * -1,055 -366 -689

Net income **

in % of revenues

3,543

6.9%

2,960

6.5%

+583

+0.4pts

(million euros)

* 2015 restated IAS 12

** 2015 restated for AVTOVAZ 3 month difference

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INVESTOR RELATIONS


ASSOCIATED COMPANIES

2016 2015 CHANGE

NISSAN 1,741 1,976 -235

AVTOVAZ * -89 -620 +531

Others -14 15 -29

Total associated companies 1,638 1,371 +267

(million euros)

* 2015 restated

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INVESTOR RELATIONS


FY 2016 FINANCIAL RESULTS

2016 2015 CHANGE

Revenues 51,243 45,327 +13.1%

Operating profit * 3,282 2,375 +907

in % of revenues 6.4% 5.2% +1.2pts

Other operating income & expenses 1 -199 +200

EBIT 3,283 2,176 +1,107

Net financial income & expenses -323 -221 -102

Associated companies ** 1,638 1,371 +267

Current & deferred taxes * -1,055 -366 -689

Net income **

in % of revenues

3,543

6.9%

2,960

6.5%

+583

+0.4pts

(million euros)

* 2015 restated IAS 12

** 2015 restated for AVTOVAZ 3 month difference

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INVESTOR RELATIONS


4,362

1,107

-940

1,264

+356

+772 -794+1,119

AUTOMOTIVE NET FINANCIAL POSITION

Operational free

cash flow

Cash flow

Changein WCR

Dividendspaid

Net tangible& intangible

investments

-3,611

Net Change

AutoExcl.VAZ

Dividends received

fromlisted co.

Capitalized

R&D

-903

Financial investments

& others

Net capex

-2,144

(million euros)

LeasedVehicles -564

Share Buy-back

Nissan

AUTO

EXCL.VAZ

AUTO

INCL.VAZ

DEC 31, 2015 2,661 N/A

DEC 31, 2016 3,925 2,720

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INVESTOR RELATIONS


NEW VEHICLE DISTRIBUTION STOCK* EXCLUDING AVTOVAZ

468

526 527 520

481

593571

591564

106

264

178

260

141

298

200

267

165

362

262

349

260

340

295

371

324

399

DEC'14 MAR'15 JUN'15 SEP'15 DEC'15 MAR'16 JUN'16 SEP'16 DEC'16

GROUP

INDEPENDENTDEALERS

TOTAL

Number of days of sales

(previous period)556658 7775 78

(IN K UNITS)

60

* 2014 & 2015 restated

76 59

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INVESTOR RELATIONS


LIQUIDITY RESERVES

Cash €11.6bn

Available credit lines €3.3bn

TOTAL €14.9bn

LIQUIDITY RESERVES

Cash €11.8bn

Available credit lines €3.3bn

TOTAL €15.1bn

AUTOMOTIVE DIVISION LIQUIDITY EXCLUDING AVTOVAZ

DECEMBER 2015 DECEMBER 2016

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INVESTOR RELATIONS


RCI BANQUE

2016 2015

New financings (€bn) 17.9 15.6

Average performing assets (€bn) 33.3 28.6

Net banking income 4.41% 4.75%

Cost of risk (customer & dealer) -0.31% -0.33%

Operating expenses* -1.39% -1.47%

Pretax income* 2.74% 2.97%

Operating profit (€m)* 896 829

(in percentage of average performing assets)

* 2015 restated IAS12

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INVESTOR RELATIONS


End 2016 End 2015

DEPOSITS 12.6 10.2

o/w GERMANY 8.1 7.0

o/w UNITED KINGDOM 2.6 1.3

o/w FRANCE 1.2 1.3

o/w AUSTRIA 0.7 0.6

RCI BANQUE RETAIL DEPOSIT ACTIVITY

(billion euros)

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INVESTOR RELATIONS


2016 REVIEW & 2017 OUTLOOKCARLOS GHOSNChairman - Chief Executive Officer

02

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INVESTOR RELATIONS


2016 FINANCIAL RESULTS – GROUPE RENAULT

2016 RESULTS WRAP-UP01

DRIVE THE CHANGE UPDATE02

2017 OUTLOOK03

FUTURE TRENDS04

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INVESTOR RELATIONS


2016 OBJECTIVES MET & RECORD RESULTS

* at constant exchange rates

REVENUES 2016 > 2015*

GROUP & AUTOMOTIVE OP. MARGIN 2016 > 2015

AUTOMOTIVE OPERATIONAL FREE CASH FLOW > 0

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INVESTOR RELATIONS


2016 ACHIEVEMENTS – PRODUCT LAUNCHES

9. KAPTUR

10. ALASKAN

1. MEGANE

2. TALISMAN SW

3. MEGANE ESTATE

4. SCENIC

5. MEGANE SEDAN

6. GRAND SCENIC

OTHER INTERNATIONAL LAUNCHES

COMPLETE RENEWAL

WITH C & D SEGMENT

7. KADJAR

8. KOLEOS

PRODUCT OFFENSIVE IN CHINA

WITH LOCAL PRODUCTION

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INVESTOR RELATIONS


2016 ACHIEVEMENTS – CONSOLIDATION OF AVTOVAZ

SUCCESSFUL

RECAPITALIZATION

NEW

RECOVERY PLAN

OPERATIONAL PROFITABILITY

EXPECTED BY 2018

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INVESTOR RELATIONS


DRIVE THE CHANGE 2010 - 2016 UPDATE

GROWTH TARGET

OVER ACHIEVED

39.041.1

51.2

2010 2014 2016

Grouprevenues

PROFITABILITY TARGET

OVER ACHIEVED

POSITIVE FCF

EVERY YEAR

1.1%

2.2%

4.9%

2.8%

3.9%

6.4%

2010 2014 2016

Automotive COP

Group COP 1,084

597

827

1,083 1,033

2011 2012 2013 2014 2015 2016

Free cash flow1,107

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INVESTOR RELATIONS


2010 – 2016 MORE DIVERSIFIED PRODUCT MIX

PRODUCTS RENEWAL

Complete renewal of C&D segment

Reinforced leadership in B segment

NEW PRODUCTS

Pioneer & leader in E.V

Full cross-over line-up for all our markets

Enlarged LCV range and Pick-ups

Twizy Zoe Kangoo ZE

Dokker Oroch Alaskan

Kwid Captur Kadjar Koleos (+QM6)

Megane 4 Scenic 4 Talisman (+SM6) Espace 5

Clio 4 Captur

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INVESTOR RELATIONS


2010 – 2016 BETTER BALANCED REGIONAL MIX

BRAZIL

AMERICAS

S. KOREA

ASIA PACIFIC

TURKEY

EURASIA

SPAIN

ITALY

UK

GERMANY

FRANCE

EUROPE

2010 : 8 countries > 100,000 units sold

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INVESTOR RELATIONS


2010 – 2016 BETTER BALANCED REGIONAL MIX

INDIA

IRAN

AMI

BRAZIL

AMERICAS

S. KOREA

ASIA PACIFIC

TURKEY

EURASIA

RUSSIASPAIN

ITALY

UK

GERMANY

FRANCE

EUROPE



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INVESTOR RELATIONS


2010 – 2016 SALES TO PARTNERS

40% contributionto growth of revenues

2010 - 2016

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INVESTOR RELATIONS


2010 – 2016 SCALE EFFECTS

KADJAR

QASHQAI

KOLEOS

XTRAIL

CMF C-D SUV PLATFORM MODULAR APPROACH

60%<10%

2010 > 2016

2/3 of value of upcoming vehicles

from standardized modules

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INVESTOR RELATIONS


2010 – 2016 COMPETITIVENESS AGREEMENT

€500m investment

3600 recruitments

€220m in training

2017 – 2019 AGREEMENT

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INVESTOR RELATIONS


2010 – 2016 COST REDUCTIONS

1,0992.8%

3,2826.4%

Volume

EnrichmentNet

FOREX

2011 2016

Raw material

(million euros)

Cost

reductions

> €3billion

2010 – 2016 CUMULATED

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INVESTOR RELATIONS


2010 – 2016 PRODUCT ENRICHMENT

RANGE BEFORE 2010 RANGE 2010 - 2016

EXTENDED AUTONOMY

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INVESTOR RELATIONS


RISKS

Raw materials

Brexit impact

Trade agreements

2017 OPPORTUNITIES AND RISKS

OPPORTUNITIES

Full year impact of new products

Alliance synergies

Emerging markets recovery (Brazil, Russia)

& ramp-up (China, India)

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INVESTOR RELATIONS


2017 TIV OUTLOOK

* PC+LCV INCLUDING USA & CANADA

EUROPE +2%

FRANCE +2%

BRAZIL

-6%

INDIA

+8%

CHINA

+5%

GLOBAL TIV *

+ 1.5% to + 2%

BRAZILstable

RUSSIA stable

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INVESTOR RELATIONS


2017 OUTLOOK

INCLUDING AVTOVAZ, THE GROUP IS AIMING TO :

Increase group revenues, beyond the impact of AVTOVAZ (at

constant exchange rates)*

Increase group operating profit in euros*

Generate a positive Automotive operational free cash flow

* compared with 2016 Groupe Renault published results

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INVESTOR RELATIONS


BEYOND 2017 PREPARING FOR THE FUTURE

ELECTRIC

CONNECTED

AUTONOMOUS

39

INVESTOR RELATIONS


OUTLOOK 2017 AND BEYOND

DRIVE NEXT

2010 - 2016

THE

CHANGE 2017 MID-TERMPLAN

40

INVESTOR RELATIONS


QUESTIONS & ANSWERS

03

41

INVESTOR RELATIONS


Documents

GROUPE RENAULT 2016 FINANCIAL RESULTS CONFERENCE...megane estate 4. scenic 5. megane sedan 6. grand scenic other international launches complete renewal with c & d segment 7. kadjar