Renault Sa · EURONEXT:RNO
Renault Sa — Shareholder Meeting (April 2005)
45 slides from Renault Sa's shareholder meeting presentation, Apr 29, 2005
Slide 1: Mixed General Meeting
Mixed General Meeting April 29, 2005 1
Slide 2: Sharp rise in 2004 results
Sharp rise in 2004 results ! Revenues up 8.4% ! Operating margin representing 5.9% of revenues ! Net income of €3.5 billion ! Debt reduced by €1.2 billion 2
Slide 3: Renault group – Revenue growth
Renault group – Revenue growth Revenues by Division - € billion + 8.4% 40.7 37.6 + 3.6% 2.1 2.0 Sales Financing Division + 8.7% 38.6 Automobile Division 35.6 2003* 2004 * On a consistent basis 3
Slide 4: Operating margin up €1 billion
Operating margin up €1 billion € million As a % of revenues 2,418 + 72.5% 5.9% Automobile Division 1,402 3.7% 1,974 Sales Financing 1,035 Division 367 444 2003 2004 4
Slide 5: Contribution of Nissan and Volvo
Contribution of Nissan and Volvo € million 2,199 5th quarter 1,705 432 Nissan 240 175 2003 2004 2003 2004 Nissan AB Volvo 5
Slide 6: Net income up by over €1 billion
Net income up by over €1 billion € million + 43.2% 3,551 2,480 1,956 1,080 1,051 2000 2001 2002 2003 2004 Earnings per share (€) 4.50 4.38 7.53 9.32 13.35 6
Slide 7: Return on equity of 28.4%
Return on equity of 28.4% In % 28.4 22.3 19.8 12.6 11.7 11% 2000 2001 2002 2003 2004 7
Slide 8: Ongoing debt reduction
Ongoing debt reduction Net financial debt of the Automobile Division in € billion 2000 2001 2002 2003 2004 0.5 1.7 2.5 3.9 4.8 - €4 billion 8
Slide 9: Ever stronger financial structure
Ever stronger financial structure € billion Automobile Division debt As a % of shareholders’ equity Shareholders’ equity + € 2.5 billion 16.1 13.6 1.7 0.5 12.9 % 3.4 % At 31.12.03 At 31.12.04 9
Slide 10: Transition to IFRS - Main impacts for Renault in 2004
Transition to IFRS - Main impacts for Renault in 2004 € million Before IFRS After IFRS Impact IFRS Revenues 40,715 (423) 40,292 Operating margin 2,418 (303) 2,115 As a % of revenues 5.9% (0.7%) 5.2% Net income * 3,186 (283) 2,903 * Excluding fifth quarter of Nissan 10
Slide 11: Renault holds steady in a declining European market in Q1 05
Renault holds steady in a declining European market in Q1 2005 Registrations (cars + LCVs) in Western Europe – Thousands of units Change Q1 2005/ Q1 2004 as a % Q1 2004 -1.7 % Q1 trimestre 2005 4,406 4,330 -0.7% 464 461 Renault 10.6 % market share 10.5 % TIV Registrations Renault 11
Slide 12: Sales continue to rise outside Western Europe in Q1 2005
Sales continue to rise outside Western Europe in Q1 2005 Thousands Q1 2004 of units Q1 2005 +12.5% 175 150 Renault : - 3.9 % Dacia Samsung 125 100 +27.7 % 75 - 9.2 % + 94.5 % - 32.3 % +34.3 % 50 25 0 Turkey Central & Rest of the Group total outside Eastern world Western Europe Europe 12
Slide 13: Revenues in Q1 2005
Revenues in Q1 2005 € billion 9.92 - 0.8% 9.84 0.46 - 0.4% 0.46 Sales Financing Division Automobile Division 9.46 -0.9% 9.38 Q1 2004* Q1 2005* * On a consistent basis 13
Slide 14: Automobile markets in 2005
Automobile markets in 2005 ! Stability in Western Europe ! International growth (except in Turkey) 14
Slide 15: Outlook for 2005
Outlook for 2005 ! Ongoing growth in worldwide sales ! Operating margin higher than 4% of revenues under IFRS 15
Slide 16: Profitable growth strategy
Profitable growth strategy Five strategic 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 performa
Slide 17: Electronics and safety
Electronics and safety Airbags 17
Slide 18: A young, distinctive range
A young, distinctive range 18
Slide 19: A young, distinctive range
A young, distinctive range 19
Slide 20: A young, distinctive range
A young, distinctive range 20
Slide 21: Profitable growth strategy: Goal n°2
Profitable growth strategy Goal n°2: Be the most competitive manufacturer on our markets in terms of quality, costs and delivery times thanks to the Alliance with Nissan ! Control development times and costs of projects ! Guarantee plant flexibility and productivity ! Rigorously control structural e
Slide 22: Renault Nissan Purchasing Organization
Renault Nissan Purchasing Organization 22
Slide 23: Profitable growth strategy
Profitable growth strategy Five strategic goals: ! Build recognition for our brand identity ! Be the most competitive manufacturer on our markets in terms of quality, costs and delivery times thanks to the Alliance with Nissan ! Extend our international reach ! Develop Renault’s core values ! Transl
Slide 24: Increase in proportion of sales outside Western Europe
Increase in proportion of sales outside Western Europe Cars + LCVs % of sales outside Western Europe 27.2% 677,000 14.9% 340,000 1999 2004 24
Slide 25: International development - Global rollout of Logan programme
International development - Global rollout of Logan programme Objective: > 1 million vehicles by 2010 China Full-year production Brazil capacity in units India Iran Colombia Morocco Russia Romania Launch year 2004 2005 2006 2007 2010 25
Slide 26: International development - Signing of an agreement in India
International development - Signing of an agreement in India 26
Slide 27: Renault’s core values – Training
Renault’s core values – Training 27
Slide 28: Renault’s core values – Respect for the environment
Renault’s core values – Respect for the environment The major challenges of tomorrow: ! Preservation of energy resources ! Climate change CONTROL AND REDUCE IMPACTS ON THE ENVIRONMENT Current production models have scored good results 60 Renault range average Renault range average CO2 (g/km)/ 55 in
Slide 29: Reinforcement of corporate governance principles
Reinforcement of corporate governance principles ! Specialist committees at Renault Accounts and Audit International Strategy Appointments and 2004 Remuneration Committee Committee Committee Appointments Accounts and Audit International Strategy and Remuneration 2005 Governance Committee Committee C
Slide 30: Renault Shareholding structure
Renault Shareholding structure At December 31, 2004 Individual French shareholders State 5.2%* 15.7% French institutional investors 20%* Public Nissan 15.0 % 62.2% Treasury stock 3.8% Employees 3.3% Foreign institutional investors * Estimates 37%* 30
Slide 31: Dividend doubled in three years
Dividend doubled in three years Net dividend per share in € + 95.7% + 28.6% 1.80 1.40 1.15 0.92 2001 2002 2003 2004 31
Slide 32: Trends in Renault share price and CAC and European automobile indexes
Trends in Renault share price and CAC 40 and European automobile indexes Index basis 100 at 31/12/01 Share price 28/04/05: 65.35 € +13.1% +22.2% +12.5% 180 160 Renault + 6.17% 140 120 Dow Jones Stoxx Auto - 2.76% 100 80 CAC 40 60 + 2.36% 40 2002 2003 2004 4/2005 32
Slide 33: Market capitalization of the leading automakers
Market capitalization of the 10 leading automakers In € billion at April 28, 2005 101.3 Renault: market capitalization increased by nearly fivefold between end-July 1996 and end-March 2005 34.5 34.4 33.5 21.5 18.6 13.7 12.7 11.6 11.0 Toyota Honda Nissan Daimler BMW Renault Volvo Ford Volkswagen GM C
Slide 34: Strategic continuity
Strategic continuity ! Performance ! Brand identity ! Efficient international development 34
Slide 35: Performance
Performance We owe it to our shareholders, our customers, our employees, our partners, and society at large. 35
Slide 36: Brand identity
Brand identity ! Irreproachable safety ! Product and service quality ! State-of-the-art technology ! Cost competitiveness ! Design personality ! Perceived quality ! Driving pleasure ! Customer treatment 36
Slide 37: Efficient international development
Efficient international development Develop our presence and succeed in growth markets 37
Slide 38: Three requirements
Three requirements ! Commitment to objectives ! Transparency in operations ! Accountability for results 38
Slide 39: Nissan business plans
Nissan business plans ! Nissan Revival Plan (2000-2001) ! NISSAN 180 (2002-2004) ! NISSAN Value-Up (2005-2007) 39
Slide 40: Nissan operating margin
Nissan operating margin 12% 11.1% 10.8% 10% 10% 7.9% 8% 6% 4.75% 4% 1.4% 2% 0% 1999 2000 2001 2002 2003 2004 40
Slide 41: Nissan - ROIC
Nissan - ROIC 25% 21.3% 19.8% 20 % 20% 15% 12.7% 10% 7.5% 5% 1.3% 0% 1999 2000 2001 2002 2003 2004 41
Slide 42: The Alliance
et: Alliance RENAULT a 42
Slide 43: A positive impact of Nissan's results in Renault's accounts
A positive impact of Nissan's results in Renault's accounts In millions of euros Nissan contribution Dividends received to Renault's results from Nissan 400 2,000 350 300 1,500 250 200 1,000 150 500 100 50 0 0 2000 2001 2002 2003 2004 2000-2004: 894 million euro of dividends received 43
Slide 44: The principles of the Alliance
The principles of the Alliance ! Develop synergies to boost the performance of Renault and Nissan ! A partnership based on respect for the identity and culture of each company 44
Slide 45: Alliance Vision - Destination
Alliance Vision - Destination Rank among the world’s top three automotive groups in terms of: ! Quality ! Technology ! Operating profit 45