Joint Annual General MeetingRENAULT
Joint Annual General MeetingRENAULT
April 29, 2003April 29, 2003
Satisfactory results in 2002Satisfactory results in 2002
Consolidation of Renault's position as the leadingbrand in Western Europe
Improved operating margin
Substantial increase in Nissan and Volvo income
Record net income
Strengthening of the financial structure
Stable group world salesStable group world sales
Passenger and Passenger and light commercial light commercial vehiclesvehicles (millions) (millions)
2001 2002
2.40
-0.4 %
2.41
20022001
Renault, the leading brand inWestern Europe
Renault, the leading brand inWestern Europe
1997
Light commercial Light commercial vehiclesvehicles
Passenger andPassenger and LCVsLCVs
PassengerPassenger carscars
15.8%
11.3%
10.7%
Market shareMarket share (%)(%)
15
14
13
12
11
10
91998 1999 2000 2001 2002
Outside Western Europe -A successful expansion policy
Outside Western Europe -A successful expansion policy
--17,80017,800--22,40022,400
8,4008,400
--9,8009,800
19,10019,100
46,30046,300
3,3003,300
2002 2002 + 27+ 27,,100 units (100 units (++5.3 %)5.3 %)
ChangeChange 2002 2002 vsvs 2001 2001 inin unitsunits ((PCPC++LCVLCV))
Central EuropeBrazil
Rest of worldTurkey Argentina
Renault Dacia Samsung+6.1 % +65.4 %-5.9 %
Higher revenues in 2002Higher revenues in 2002
€ billion€ billion
+ 2.6 %
2001 * 2002
Sales Financing Division
Automobile Division
* On a like-for-like basis
33.733.733.7
1.71.71.7 1.91.91.935.435.4 36.336.3
34.434.434.4
+ 8.4 %
+ 2.3 %
20022001*
Higher than forecastoperating margin
Higher than forecastoperating margin
€ million€ million
% of revenues% of revenues 4.1 %
2001 * 2002
* Pro forma data
273273273
200200200
587587587
473473
1,4831,483
1.3 %
602602602
294294294
896896
2.5 %
20022001*
Impact of IAS 38
Automobile Division
Sales Financing Division
Automobile DivisionOperating margin
Automobile DivisionOperating margin
Growth factorsGrowth factors
Lower committed costs
Greater selectivity in administrative and IT costs
More effective R&D spending
Higher international contribution
A positive and growing contribution byRenault Samsung Motors
Stablilization of results in Mercosur and Turkeythanks to swift reaction by the Group
Strong growth in incomeof strategic shareholdings
Strong growth in incomeof strategic shareholdings
2001 * 2002
2001 2002
190190190
€ million€ million
497497
1,3351,335
1,1451,1451,145 282828
--2626
7171
434343
AB Volvo
2001
2001 2002
2001
2002
Impact of IAS 38
Nissan
Record net income in 2002Record net income in 2002
€ million€ millionImpact of IAS 38
1998 1999 2000 2001 20021998 1999 2000 2001 2002
1,9561,956
EPS EPS (€)(€)
5.645.64 2.232.23 4.504.50 4.384.38 7.53
1,3491,349
534534
1,0801,080 1,0511,051597597597
1,3591,3591,359
20021999 2000 20011998
Higher than forecast return on equity
Higher than forecast return on equity
Return onReturn on equity equity ((beforebefore appropriation of netappropriation of net incomeincome) Impact of IAS 38)
%%
1998 1999 2000 2001 2002
19.819.8
13.813.813.8
11.711.712.612.6
7.07.0
20.720.7
20021999 2000 20011998
An even strongerbalance sheet structure
An even strongerbalance sheet structure
Automobile activity debt€ billion€ billion% of revenues% of revenues
2001 20022001 2002At Dec 31 2001 At Dec 31 2002
10.110.1
11.811.8
3.93.9
2.52.5
39.121.1
Shareholders' equity
Western Europe -Market slowdown in Q1 2003
Western Europe -Market slowdown in Q1 2003
PercentagePercentage change Q1 2003 change Q1 2003 vsvs Q1 2002 Q1 2002
(PC + LCV)(PC + LCV)
1998 1999 2000 2001 2002France Germany UK Italy Spain Western Europe
--7.67.6
--1.41.4 --0.20.2 +4.1+4.1
--2.62.6
--3.93.9
2001
2002
Western Europe -A reversal of our seasonal sales trends
Western Europe -A reversal of our seasonal sales trends
Percentage market sharePercentage market share (PC)(PC)
January February March Q1
France 24.6 26.1 28.8
Germany 5.6 6.4 6.3
Italy 7.0 8.6 8.6
Spain 10.2 11.4 13.5
United Kingdom 5.6 8.0 5.3
Western Europe 2003 9.5 11.2 9.9 10.1
Western Europe 2002 10.7 11.7 10.4 10.8
Change 2003 vs 2002 -1.2 -0.5 -0.5 -0.7
Steady growth in sales outsideWestern Europe
Steady growth in sales outsideWestern Europe
Q1Q1 2003 2003 Group world salesGroup world sales: : --7.0 %7.0 %o/wo/w outsideoutside Western EuropeWestern Europe: +6.4 %: +6.4 %
7,3007,300Change Q1Change Q1 2003 2003 vsvs Q1Q1 2002 2002 inin units units ((PCPC++LCVLCV))
--1,6001,600
1,9001,900
--51,50051,500Western Europe
Restof world
SamsungDaciaRenault-11.6 % +29.5 %-8.4 %
Q1 2003 revenuesthat reflect this fall in volumes
Q1 2003 revenuesthat reflect this fall in volumes
€ billion€ billion
- 2.9 %
1er Trim. 2002 2002
Sales Financing Division
Automobile Division
* On a like-for-like basis
8.838.838.83
0.450.450.45 0.470.470.47
9.39.3 9.09.0
8.558.558.55
+ 4.2 %
- 3.2 %
Q1 2002* Q1 2003
Context 2003Context 2003
An uncertain environment
A dynamic product plan: the Mégane year
Scenic IIScenic II
Mégane IICoupé-Cabriolet
Mégane IICoupé-Cabriolet
Mégane IIBreak
Mégane IIBreak
Mégane IITricorps
Mégane IITricorps
Our profitable growth strategyOur profitable growth strategy
Is basedIs based onon five strategicfive strategic goals:goals:
Build recognition for our brand identity
Be the most competitive manufacturer on our markets in terms of quality, costs and delivery times
Extend our international reach
Develop Renault's core values
Translate success into financial performance
Three quantified objectivesThree quantified objectives
4 million vehicles in 2010
4% operating margin averaged over the business cycle
11% return on equity
Build recognition forour brand identity
Build recognition forour brand identity
Solid fundamentals
Safety: 5-star rating in the EuroNcap crash testsfor Laguna II, Vel Satis and Mégane II
Respect for the environment
A range of top-performing engines
Ongoing quality improvements
A strong and innovative range
Value-enhancing innovations
Distinctive, appealing design
An innovative rangeAn innovative range
VelVel SatisSatis Espace IVEspace IV
Mégane IIMégane II
Pursuing quality improvementPursuing quality improvement
Warranty periods extensions
Increasing requirements for customers
Higher complexity of vehicles
Quality : a top priority for manufacturersQuality : a top priority for manufacturers
Continuing decline inpurchasing costs
Continuing decline inpurchasing costs
Decline in purchasing costsDecline in purchasing costs
As a %As a %
2001 2002
-3.2-3.8
RRenaultenault NNissan issan PPurchasingurchasing OOrganizationrganization: : betterbetter performance performance thanthan Renault Renault alonealone
Renaultalone
Renault NissanPurchasing
Organization
Much shorter developmentand delivery times
Much shorter developmentand delivery times
Vehicle development times
Choice of Design
in 1992
Start of sales
LAGUNA
MEGANE
CLIO II
LAGUNA II
MEGANE II
46 months
in 2000
in 200229 months
Delivery times: New Distribution
1999 2002 ObjectiveVehicles builtto order 25% 50% 70%
International development – exploitthe potential of the group's 3 brandsInternational development – exploitthe potential of the group's 3 brands
In 2010Number of vehicles
3,000,000
500,000
500,000
TOTALTOTAL 4,000,0004,000,000
Formula 1 – Promote awareness of the Renault brand worldwide
Formula 1 – Promote awareness of the Renault brand worldwide
International development – exploitthe potential of the group's 3 brandsInternational development – exploitthe potential of the group's 3 brands
In 2010Number of vehicles
3,000,000
500,000
500,000
TOTALTOTAL 4,000,0004,000,000
International development -Dacia prepares for growth
International development -Dacia prepares for growth
Solenza
Pitesti plant(Romania)
Continued modernizationof plant and network
Development ofnew products:
Solenza – March 2003
E5,000 vehicle foremerging countries (end 2004)
International development -Renault Samsung Motors profitable already
International development -Renault Samsung Motors profitable already
SM5
Return to profitability 2 years
ahead of schedule thanks to
success of SM5
Launch of a second vehicle
(SM3) since second half of
2002
SM3
Develop a product rangeDevelop a product range
Develop Renault's core valuesDevelop Renault's core values
Respect the men and women of Renault and help them to progress
Work in compliance with the Alliance Charter
Contribute to sustainable development
Concept-carEllypse
Translate success intofinancial performanceTranslate success intofinancial performance
Meet shareholders' Meet shareholders' expectationsexpectations
By reaching our financial objectives:
Operating margin of 4% of revenues on average overa business cycle
Return on equity of 11%
By building a lasting relationship with our shareholders
Renault is building a lasting relationship with shareholders
Renault is building a lasting relationship with shareholders
Renault Renault shareshare ownershipownership on March 31, 2003on March 31, 2003
As a %As a %
Total equity capital Voting rights
Treasury stock3.6%
Employees3.3%
Nissan15.0%
Public
French State25.9%
French State31.8%
Public
Employees4.1%
64.1 %64.1 %64.1 %52.2 %52.2 %52.2 %
A constant concern:corporate governance
A constant concern:corporate governance
Strictly apply theStrictly apply the principlesprinciplesof of corporatecorporate governancegovernance
Adoption of the principal recommendations of theBouton Report
Director's charter
Renault Board of Directors
Renault Board of Directors
A board comprising 17 directors:
13 appointed by the AGM of shareholders
3 elected by employees
1 appointed by the AGM on basis of proposal byemployee-shareholders
Adoption of independence criteria in accordancewith the Bouton Report
Met 12 times in 2002
Specialized committees Specialized committees
Accounts and Audit Committee
Appointments and Remuneration Committee
International Strategy Committee
Open communicationspolicy
Open communicationspolicy
Better quality information
Sustainable development
Risk management
More meetings with our shareholders
Developmentof shareholder meetings
Dynamic management of our Shareholders' Club(plant visits, brand-relatedevents…)
Sharp rise in dividendSharp rise in dividend
Net dividend per share in €Net dividend per share in €
2001 2002
+25%+25%
0.920.92
1.151.15
20022001
Trend in Renault share,CAC 40 indices and
DJ Euro Stoxx Auto index
Trend in Renault share,CAC 40 indices and
DJ Euro Stoxx Auto index ((indexed indexed on Renault on Renault share priceshare price on 31/12/96, €17)on 31/12/96, €17) Share price 28/04/03:€37.85
10
20
30
40
50
60
70
-15.5%-15.5%
RenaultRenault
CAC 40CAC 40
DJ Euro Stoxx AutoDJ Euro Stoxx Auto
-3.7%-3.7%
-3.1%-3.1%
- 34 %
+13.1%+13.1%+48.3% +25.1% +16.0% -28.6%+51.8%
4/031997 1998 1999 2000 2001 2002
Joint Annual General MeetingRENAULT
Joint Annual General MeetingRENAULT
April 29, 2003April 29, 2003