Renault Sa · EURONEXT:RNO
Renault Sa — H1 2022 Earnings Presentation
40 slides from Renault Sa's earnings presentation, Jul 29, 2022
Slide 1: 2022 H1 Financial Results
2022 H1 July 29, 2022 Financial Results 1
Slide 2: Agenda
Agenda 2022 H1 Highlights 2022 H1 Financial Results 2022 Outlook & Strategy Questions & Answers 2
Slide 3: 2022 H1 Highlights
2022 H1 Highlights Luca de Meo CEO Renault Group 3
Slide 4: 2022 H1: a new step in Renault Group recovery
2022 H1: a new step in Renault Group recovery Operating Automotive operational Net debt margin free cash flow June 30, 2022 4.7% €956m -€426m +2.6pts +€1,470m €1,196m improvement vs Dec. 21 vs 2021 H1* vs 2021 H1* o/w €522m due to Russia exit … despite strong headwinds Cost inflation Russia EC crisi
Slide 5: Thanks to our in-depth transformation
Thanks to our in-depth transformation 3 main levers Commercial Line-up renewal Competitiveness policyfocused with 1st commercial on value successes 5
Slide 6: Efficient value over volume policy
Efficient value over volume policy Renault E-TECH mix (pc,Europe) +10 pts to 36% vs 2021 H1 2022 H1 C & above segment Pricing +3 pts to 39% effect +7.4 pts vs 2021 H1 2022 H1 Retail channel mix Renault* +13 pts to 53% vs 2021 H1 vs 2021 H1 2022 H1 High trims mix ≥ 70% for Arkana, Megane Electric, Sp
Slide 7: All launches are a hit
All launches are a hit Renault ARKANA Dacia SPRING > 40,000 orders in H1 > 30,000 orders in H1 > 100,000 since launch €19.8 k*, the most affordable European EV ~60% E-TECH #2 EV & #1 EV Retail in France in H1 ~60% retail channel Order book 4.1 months of sales Renault MEGANE ELECTRIC Dacia JOGGER > 2
Slide 8: Competitiveness
Competitiveness Continuous improvement & optimization LEAN ORGANIZATION Since July 2020: New strategic talents Continuous improvement 53 in span of control (1) Internal promotions 250 +14% CASH FIXED COSTS OPTIMIZATION ENERGY CRISIS MANAGEMENT -€100m mostly fixed marketing expenses & Industry Worldw
Slide 9: 2022 H1 Financial Results
2022 H1 Financial Results Thierry Piéton CFO Renault Group 9
Slide 10: Russia deconsolidation impact
Russia deconsolidation impact 2021 2021 H1 2021 H1 2021 FY 2021 FY In million euros Change Change Published Adjusted Published Adjusted Group revenue 23,357 21,057 -2,300 46,213 41,659 -4,554 Operating margin 654 432 -222 1,663 1,153 -510 % of Group revenue 2.8% 2.1% -0.7 pt 3.6% 2.8% -0.8 pt Net in
Slide 11: 2022 H1 Renault Group sales
2022 H1 Renault Group sales Sales evolution by brand* 1,137 1,001 832 692 262 278 43 31 2021 2022 2021 2022 2021 2022 2021 2022 H1 ** H1 H1 ** H1 H1 H1 H1 H1 Others*** RENAULT GROUP RENAULT DACIA In % Δ / 2021 H1 -11.9 -16.8 +5.9 -27.6 * PC+LCV in thousand units ** 2021 volumes at proforma 2022 (exc
Slide 12: 2022 H1 Group revenue
2022 H1 Group revenue In million euros 2021 H1* 2022 H1 Change Global unit sales (Kunits) 1,137 1,001 -11.9% Group revenue 21,057 21,121 +0.3% o/w Automotive 19,524 19,574 +0.3% o/w Mobility Services 11 17 +54.5% o/w Sales Financing (Mobilize Financial Services) 1,522 1,530 +0.5% * Adjusted to refle
Slide 13: Revenue variance analysis
Revenue variance analysis Revenue for Renault Group Discontinued operations +0.3% -2,300 Change 2022 H1 Sales Mobility vs 2021 H1 * Automotive Services Financing +€64m In million euros 23,357 21,057 +50 +6 +8 21,121 Revenue for 2021 H1 2021 H1 2022 H1 Automotive Adjusted* +0.3% Discontinued operatio
Slide 14: 2022 H1 operating margin by activity
2022 H1 operating margin by activity In million euros 2021 H1* 2022 H1 Change Group operating margin 432 988 +556 % of Group revenue 2.1% 4.7% +2.6 pts o/w Automotive -145 420 +565 % of segment revenue -0.7% 2.1% +2.8 pts o/w Mobility Services -16 -14 +2 o/w Sales Financing (Mobilize Financial Servi
Slide 15: Operating margin evolution
Operating margin evolution Group margin Auto margin 3.5% 4.7% 2.6% 2.1% 2.1% 0.3% 0.7% -0.7% -7.3% -11.0% 2020 H1* 2020 H2* 2021 H1* 2021 H2* 2022 H1 * Adjusted to reflect the exit from Russia 15
Slide 16: Group operating margin variance analysis
Group operating margin variance analysis Raw Materials -797 Warranty Manufacturing Price / Mix / Purchasing & logistics Enrichment Costs** +167 +55 &others Change 2022 H1 vs 2021 H1* +1,548 -647 -72 +€556m Mobilize R&D** SG&A Financial +56 -82 Services Others -12 -75 Discontinued In million operatio
Slide 17: Sales Financing: Mobilize Financial Services
Sales Financing: Mobilize Financial Services 2021 H1 2022 H1 Change New financings (€bn) 8.7 8.9 +2.3% Average performing assets (€bn) 45.5 43.7 -3.9% Net banking income 4.2% 4.7% +0.5 pt Cost of risk (customer & dealer) -0.16% -0.49% -0.33 pt Operating expenses -1.3% -1.5% -0.2 pt Pretax income 2.7
Slide 18: Other income & expenses
Other income & expenses In million euros 2021 H1* 2022 H1 Change Restructuring costs -144 -134 +10 Impairment of PP&E**, intangible assets and goodwill -30 -2 +28 Capital gain/loss on disposal of assets 126 56 -70 Others -22 31 +53 Total other operating income & expenses -70 -49 +21 * Adjusted to re
Slide 19: 2022 H1 financial results
2022 H1 financial results In million euros 2021 H1* 2022 H1 Change Group revenue 21,057 21,121 +0.3% Operating margin 432 988 +556 % of Group revenue 2.1% 4.7% +2.6 pts Other operating income & expenses -70 -49 +21 EBIT 362 939 +577 Net financial income & expenses -138 -236 -98 Associated companies
Slide 20: Associated companies
Associated companies In million euros 2021 H1 2022 H1 Change Nissan 100 325 +225 Others 60 -111 -171 Total associated companies 160 214 +54 20
Slide 21: Current & deferred taxes and net income
Current & deferred taxes and net income In million euros 2021 H1 * 2022 H1 Change Group revenue 21,057 21,121 +0.3% Operating margin 432 988 +556 % of Group revenue 2.1% 4.7% +2.6 pts Other operating income & expenses -70 -49 +21 EBIT 362 939 +577 Net financial income & expenses -138 -236 -98 Associ
Slide 22: Automotive net financial position
Automotive net financial position 2021 2022 Tangible December, 31 June, 30 & intangible Cash flow investments -€1,622m* -€426m • Capex: -€692m -€1,100m** -1,130 • Disposals: +€101m • Capitalized R&D: -€543m • Leased vehicles: +€4m o/w €800m + 2,639 Change MFS*** dividend in WCR Restructuring Operati
Slide 23: New vehicles distribution inventories
New vehicles distribution inventories (In thousand units) 547 486 487 470 427 358 348 336 340 336 336 304 Total 263 236 245 227 Independent 234 167 177 dealers 224 189 173 159 150 Group 123 121 91 * Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 107 65 61 80 62 60 53 63 60 Number of
Slide 24: Debt and liquidity
Debt and liquidity Auto division liquidity reserves (in €bn) Loan with French State guarantee ʺPGEʺ 16.7 2022 H1: €1bn early repayment 15.8 2022 H2: €1bn annual repayment Fully reimbursed by the end of 2023 at the latest 3-year maturity Samourai Bond for ¥80.7bn (received on July 1, 2022) Dec. 2021
Slide 25: Outlook & Strategy
Outlook & Strategy Luca de Meo CEO Renault Group 25
Slide 26: 2022 H2 Risks and Opportunities
2022 H2 Risks Opportunities EC shortage EC availability Cost inflation (o/w raw mat) Cost reduction Energy crisis Product cycle (Arkana, Jogger, Megane Electric, Austral…) Customer demand 26
Slide 27: 2022 outlook upgraded
2022 outlook upgraded H2 market outlook Europe Eurasia Latam excluding Russia Group operating margin >5% vs ~3% previously Automotive operational free cash-flow >€1.5bn vs positive previously The Group confirms an impact of the semiconductor crisis estimated at 300,000 vehicles in 2022 27
Slide 28: Ambitious product line-up to fuel sustainable & profitable growth
Ambitious product line-up to fuel sustainable & profitable growth Global PC+ LCV 4 3 12 6 25 Launches 2022 2023 2024 2025 > 50% on C & above segment for PC ~50% BEV 80% electrified vehicles 28
Slide 29: Key partnerships
Key partnerships in 2022 H1 to secure the EV value chain Battery raw Battery e-Motor Power materials casings electronics Low-carbon cobalt JV creation for 200kW new generation for EV and hybrid battery casings rare-earth free powertrains in in ElectriCity in France Produced in Morocco with electric
Slide 30: Covered EV Value chain
Covered EV Value chain from 10% in 2020 to 30% in 2022 80% by 2030 Battery Step of the e-Motor & Power value chain Reducer Electronics Recycled Other Cell & module Casing, BMS, Raw mat PCAM / CAM materials materials Production Assembly 2030 target 70% 100% 0% 100% 100% 100% 100% 92% coverage Covered
Slide 31: Accelerate the transformation to become more Competitive Tech
Accelerate the transformation to become more Competitive Tech Strategy 2030 revealed & ambition of 20% of 2030 Group’s revenue 3DEXPERIENCE platform for the RCI becomes development of products and mobility services First-of-a-kind deployment of this scale Already 5 startups incubated 4 projects fina
Slide 32: Scenic Vision concept-car
A new ambition for sustainability Scenic Vision concept-car 32
Slide 33: Reloaded Alliance
Reloaded Alliance Largest EV Common H1 offer worldwide Platforms announcements 35 full EV in 2030 ~80% Alliance 90% common Alliance vehicles in 2026 platforms vs 60% in 2021 Electrification: €10bn already invested €23bn for 2022-26 New ASX in RG New Colt Successor of Micra Valladolid plant 2023 in R
Slide 34: Capital Market Day
To update mid-term Capital financial targets Market Day & reveal the new in the fall 2022 chapter of Renaulution strategy 34
Slide 35: Questions & Answers
Questions & Answers 35
Slide 36: Competitive, tech & sustainable company
Competitive, tech & sustainable company 36
Slide 37: Appendix
5 Appendix 37
Slide 38: H1 2022 Renault Group Sales
H1 2022 Renault Group Sales Market and sales evolution by region(1) 1,137 1,001 745 647 2021 2022 2021 2022 74 2021 78 2022 80 2021 2022 66 101 2021 85 2022 137 2021 125 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 H1(2) H1 H1 (2) H1 H1(2) H1 H1 H1 H1 H1 H1 H1 Global Europe Euras
Slide 39: Disclaimer
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 i
Slide 40: 2022 H1 Financial Results
2022 H1 July 29, 2022 Financial Results 40