RENAULT GROUP EXANE CONFERENCE€¦ · 09 June 2011 PROPRIÉTÉ RENAULT 2 2013 OBJECTIVES 3 million vehicles sold in 2013 2 billion euros cumulated operational free cash flow 2011-2013

09 June 2011 PROPRIÉTÉ RENAULT

RENAULT GROUP

EXANE CONFERENCE

Dominique THORMANN, CFO

2PROPRIÉTÉ RENAULT09 June 2011

2013 OBJECTIVES

� 3 million vehicles sold in 2013

� 2 billion euros cumulated operational free cash flow2011-2013

1. ENSURE THE GROUP’S GROWTH

2. GENERATE FREE CASH FLOWON A LASTING BASIS

RENAULT 2016 DRIVE THE CHANGE


SEVEN PERFORMANCE LEVERS

1. INNOVATION

2. STRENGTHENED PRODUCT OFFER

3. STRENGTHENED BRAND IMAGE

4. NETWORK EXCELLENCE IN CUSTOMER RELATIONS

5. OPTIMISED R&D AND INVESTMENT EXPENDITURES

6. COST REDUCTION

7. MAINTAINED POSITIONS IN EUROPEAND INTERNATIONAL EXPANSION


NON EUROPEAN MARKETS DRIVING GLOBAL MARKET GROWTH

52 5254

56 56 56 5761

6365

6865

63

71

83

93

51

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016World TIV (PC+LCV) IN MILLION UNITS

100

8590 98

100109

131 148

2007 2010 2013 2016

Outside Europe

Europe


90% OF GROWTH OUTSIDE OF EUROPE

1 643

317

273

288

107

2000 2005 2010 2013

Eurasia

Asia Africa

Euromed

Americas

Europe

17% 37%27%45%

2.4m2.5m

2.6m

3m


EURASIA

UNITS in 2010 MARKET SHARE PC+LCV

2 2231 804

3 737

3 302

2 455

1 2811 379 1 383

1 325

1 734

1 989

34

85

118

130

107

114

717

21

80

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

TIV EURASIA

GROUP SALES

PC+LCV IN K UNITS

3 BEST SELLING CARS

>6.0%4.8%1.9%0.3%RUSSIA96

2013201020052000In K

SANDERO

LOGAN

FLUENCE


� New industrial launches

� 2011 Fluence, Mégane, Sandero Stepway

� 2012 Duster, D segment offer

� 2013 Logan replacement

� Avtovaz

� Alliance accessing existing capacity

� New products on M0 platform

� Dealer network extension

� 100 additional dealers by end 2013

� Brand image improvement

FOCUS ON RUSSIA

2010 2013

Models produced locally


AMERICAS

2013201020052000In K

-15.9%17.6%13.2%COLOMBIA38

82

160 > 6.5%4.8%2.9%4.0%BRAZIL

+13.0%10.3%18.4%ARGENTINA

2010 UNITS MARKET SHARE PC+LCV

5 9355 1455 4895 352

4 519

3 2193 336

3 1463 053

3 594

4 072

228

156

178

237248

317

124

140141

121139

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

TIV AMERICAS

GROUP SALES

PC+LCV IN K UNITS

3 BEST SELLING CARS

SANDERO

LOGAN

CLIO


� Strong product momentum

� 2011 Fluence, Sandero Phase II, Duster

� 2012 Entry price offer

� 2013 Replacement of Logan, LCV offer

� 2014 Further range expansion

� Increase market coverage

� Product offer

� Dealer network capacity (+90 sales points in 4 years)

� Service offer RCI

� Adapt industrial capacity to meet demand

� Localization – sourcing, design, customization

� Increase brand awareness

FOCUS ON BRAZIL

Curitiba plant

Models produced in Mercosur

2010 2013


15 34015 921

16 626

18 07017 777

17 787 17 68317 216

17 09717 560

17 514

1 530

1 8531 693

1 6241 508

1 643

2 0151 9902 042

1 9551 928

01002003004005006007008009001000110012001300140015001600170018001900200021002200230024002500260027002800290030003100320033003400350036003700380039004000410042004300440045004600470048004900500051005200530054005500560057005800590060006100620063006400650066006700680069007000710072007300740075007600770078007900800081008200830084008500860087008800890090009100920093009400950096009700980099001000010100102001030010400105001060010700108001090011000111001120011300114001150011600117001180011900120001210012200123001240012500126001270012800129001300013100132001330013400135001360013700138001390014000141001420014300144001450014600147001480014900150001510015200153001540015500156001570015800159001600016100162001630016400165001660016700168001690017000171001720017300174001750017600177001780017900180001810018200183001840018500186001870018800189001900019100192001930019400195001960019700198001990020000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

EUROPEAN TIV

GROUP SALES

EUROPE

201020052000In K

6.6%6.6%7.1%ITALY142

11.4%12.4%12.8%SPAIN125

113

171

745 27.9%27.2%29.1%FRANCE

5.5%5.3%6.1%GERMANY

5.0%7.1%7.1%UNITED KINGDOM

2010 UNITS MARKET SHARE

TWINGO

CLIO

MEGANE

PC+LCV IN K UNITS

3 BEST SELLING CARS


� Capacity optimization

� 20% reduction in capacity

� Target >80% utilization rate from end 2013 (Harbour)

� Strategic cooperation with Daimler

� LCV and engines

� Twingo/Smart renewal

� EV and new technologies

� New best in class internal combustion line-up

� ZOE: the first Full mass EV

� New design

EUROPE


OBJECTIVE12% reduction in Total delivered costover 3 years

COST REDUCTION

€2.4 bn 2011-2013


IMPACT IN COP OF PURCHASING COST REDUCTIONS

579

253282

660738

2006 2007 2008 2009 2010 2011 2012 2013

PURCHASING COST REDUCTIONS MONOZUKURI

(€ millions)

Average €800m per year


RAW MATERIAL ASSUMPTION

-148

-270

-429

-271

48

2006 2007 2008 2009 2010 2011 2012 2013

Raw material impact on operating margin vs. previous period in millions of euros

Average €400m per year


GROUP OPERATING MARGIN WALKDOWN 2010-2013

€1.1bn2.8%

€2.2bn5%

0.6

1.2

2.4

0.61.1

2010 2013

Volume

impact

Cost

reductions

Raw

materials

Provision

Provision

VOLUME : €0.5m NET COST REDUCTION : €0.6m


CAPITAL EXPENDITURE AND R&D

10,4%

11,8%11,2% 11,1% 11,1%

8,9%

6,5%

9,0% 9,0% 9,0%

10%

12,5%

11,2%

10,1%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

TARGET: CAP 9%

Net capital expenditure and net R&D in % of group revenues


OPTIMISED R&D AND INVESTMENT EXPENDITURES

LCV PLATFORMSshared with Nissan,

Daimler and GM

A PLATFORMwith Daimler

(Smart/Twingo)

B PLATFORM + M0 PLATFORM

with shared modules

C & D PLATFORMshared with Nissan

2011 2012 2013 2014 - 2016

EV RANGE

Energy 130 dci Energy 110 Tce ….

Tangiers Chennai

New Alliance industrial capacityInternal combustion

AvtoVaz

Zero emission

….


Operational Free Cash Flow Operational Free Cash Flow excluding WCR evolution

(million euros)

FREE CASH FLOW EVOLUTION


DIVIDEND POLICY – RENAULT 2016

� A two tier policy:

1. Pass through of dividends received from quoted asso ciates to Renault’s shareholdersWhat is received in year 1 will be paid in year 2

2. When the financial environment & Renault’s balance sheet permits it:A percentage of operational FCF from the Renault core business

� A policy aimed at optimising shareholder value from an Alliance structure perspective


TIV + 56.7 %GROUP + 73.3 %

TIV + 0.5 %GROUP - 4.7 %

TIV + 32.0 %GROUP + 24.6 %

TIV + 3.6 %GROUP - 9.1 %

TIV + 14.7 %GROUP + 35.0 %

TIV + 7.3 % GROUP + 4.2 %

**

*Preliminary results at end May **PC+LCV including USA & Canada

TOTAL INDUSTRY VOLUMES & GROUP SALES YTD MAY 2011 vs. 2010*


110 118 10037

150107 124

64

727

1 092

693

1 138

0

200

400

600

800

1 000

1 200

2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011

GLOBAL

4.2 %

EUROPE

- 4.7 %

AMERICAS

+ 21.8 %

ASIA / AFRICA

- 9.1 %

EUROMED

+ 24.6 %EURASIA + 73.3 %

INTERNATIONAL + 21.8 %

Thousand units(PC + LCV)

RENAULT GROUP SALES YTD MAY 2011 vs. 2010*

INTERNATIONAL SALES MIX AT 39% (+ 6 PTS VS. YTD 2010)

*Preliminary results at end May


OUTLOOK 2011

� 2011 TIV PC+LCV

� Lower than previous forecast due to global industry supply disruption

� Tsunami impact: some production slowdown Q2/Q3

� Abnormal seasonality on Group change in working capital

� Current view: 2011 full year outlook confirmed

� unit sales and revenues in 2011 above 2010

� automobile operational free cash flow > €500m

� CAPEX + R&D close to 9% of group revenues



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.

Documents

RENAULT GROUP EXANE CONFERENCE€¦ · 09 June 2011 PROPRIÉTÉ RENAULT 2 2013 OBJECTIVES 3 million vehicles sold in 2013 2 billion euros cumulated operational free cash flow 2011-2013