Renault Sa · EURONEXT:RNO
Renault Sa — Investor Presentation (June 2023)
53 slides from Renault Sa's investor presentation, Jun 26, 2023
Slide 1: Alpine Future Tour - Enstone Field Trip
ALPINE FUTURE TOUR ENSTONE FIELD TRIP 26.06.2023
Slide 2: Luca de Meo, CEO Renault Group
LUCA DE MEO CEO, Renault Group 1
Slide 3: Resurrection, Renovation, Revolution
RESURRECTION Achieved in advance RENOVATION Already secured REVOLUTION Time to accelerate 2020 2021 2022 2023 2024 2025 2
Slide 4: Next-generation organization and new rules of the game
NEXT-GENERATION ORGANIZATION 5 SPORTS AND NEW RULES OF THE GAME ICE & EV & FINANCING, CIRCULAR HIGH-END HYBRID SOFTWARE ENERGY & MOBILITY ECONOMY Access Brand STRATEGIC Scale Technology Client to materials Move ISSUES lifecycle & Process upmarket Technology 3
Slide 5: Heritage, sporty, global, electric: rings a bell?
HERITAGE, SPORTY, GLOBAL, ELECTRIC RINGS A BELL? 2023 Racing heritage and DNA Top-notch engineering 2020 Selected distribution Iconic since 1962 Alpine A110 sports coupé Distinctive manufacturing 4
Slide 6: Aiming for the podium
AIMING FOR THE PODIUM Sales Partnerships Brand development attractivity awareness #1 Capital investment Brand Value1 Sports car in France in Alpine Racing Ltd >€550M Sales x 2 Miami partnership with AutoNation Breaking into the most valued brands (2022 vs. 2020) in France 3,500 units sold in 2022 1)
Slide 7: Alpine ambition is straightforward
ALPINE AMBITION IS STRAIGHTFORWARD Internationally growing high-end anchor Revenue Operating margin 40% CAGR (revenue) 2023-2030 Breakeven in 2026 €2bn revenue in 2026 >10% in 2030 >€8bn revenue in 2030 Main ESG targets 100% electric line-up by end 2026 Net zero carbon production in 2030 6
Slide 8: Laurent Rossi, CEO Alpine
LAURENT ROSSI CEO, Alpine ALPINE
Slide 9: Made by racers, from day 1
ALPINE Of MADE BY RACERS, FROM DAY 1
Slide 10: Racing at the core
RACING AT THE CORE BORN FROM MADE BY FOR RACING RACERS RACERS@HEART An equity built on motorsport A team of passionate An undeniable brand excellence since 1955, currently professionals, designing tech legitimacy to tap into undergoing a new hype innovations from track to road a huge pool of audienc
Slide 11: Motorsport as fundamental DNA
MOTORSPORT AS FUNDAMENTAL DNA BORN FROM RACING 1955 Founded in 1955 10 Victories at the 24h 1973 First constructor by French racing driver of Le Mans, first one to win the World Rally Jean Rédélé in 1964, latest one in 2019 Championship, in 1973 I had the most fun when I was zipping around the Alps
Slide 12: Living up to the legacy
LIVING UP TO THE LEGACY MADE BY RACERS Racing Sportscar Specialty Engineering Engineering Manufacturing 50% engineers in total workforce 11
Slide 13: Undeniable brand legitimacy
UNDENIABLE BRAND LEGITIMACY FOR RACERS@HEART For whom Life is a Race… … seeking self-realization, exhilaration and performance 12
Slide 14: Unique brand positioning
UNIQUE BRAND POSITIONING Specialty Luxury Traditional premium OEMs Tech-focused newcomers Mainstream segment Rational Passion-driven Mainstream 13
Slide 15: Capitalizing on our iconic A110
CAPITALIZING ON OUR ICONIC A110 Best-in-class specs & agility Unique know-how & technology The reference of the market ~300kg lighter Aluminum rivet bonding 1st most sold 2-seater coupé than Porsche Cayman know-how in Europe2 0-100 km/h in < 4s1 30% less CO2 emissions4 8 prestigious awards in 20223
Slide 16: Always aiming up
ALWAYS AIMING UP >7-MONTH ORDER BANK Sales, in units 3,500 >4,200 2,700 1,500 2020 2021 2022 2023 x2
Slide 17: Success fueling brand value
SUCCESS FUELING BRAND VALUE 2027 >€1Bn 2022 €550M 2021 2020 €260M 2019 €120M €50M Source: Alpine brand value by BrandFinance 16
Slide 18: Building a global brand
ALPINE O2 BUILDING A GLOBAL BRAND
Slide 19: Motorsport pivotal in business model
MOTORSPORT PIVOTAL IN BUSINESS MODEL RACING BRAND DNA F1 Endurance Junior series LEGITIMACY FUNDING SPORT LIFESTYLE ICONS VOLUMES A290 A110 C-XO GT D/E-XO GT PRICING POWER 18
Slide 20: A110: perpetuating excellence
A110: PERPETUATING EXCELLENCE 19
Slide 21: Our chassis, our savoir-faire
OUR CHASSIS, OUR SAVOIR-FAIRE 20
Slide 22: I want to electrify Alpine to enshrine it into E-ternite
“I WANT TO ELECTRIFY ALPINE TO ENSHRINE IT INTO E-TERNITE” 21
Slide 23: Announcing APP, Alpine Performance Platform
ANNOUNCING APP, ALPINE PERFORMANCE PLATFORM 22
Slide 24: APP to keep agility at heart of A110
APP TO KEEP AGILITY AT HEART OF A110… 23
Slide 25: And its sister, the roadster
… AND ITS SISTER, THE ROADSTER 24
Slide 26: Expanding the playground with A310
EXPANDING THE PLAYGROUND WITH A310 25
Slide 27: APP to allow for further line-up expansion
APP TO ALLOW FOR FURTHER LINE-UP EXPANSION 26
Slide 28: A comprehensive line-up to support our ambitions
A COMPREHENSIVE LINE-UP TO SUPPORT OUR AMBITIONS RACING BRAND DNA F1 Endurance Junior series SPORT LEGITIMACY FUNDING LIFESTYLE ICONS VOLUMES At the core of Alpine DNA International expansion Control of core-technology Segment coverage A290 A110 coupé C-XO GT A110 roadster D/E-XO GT A310 PRICING POW
Slide 29: A product portfolio to expand globally
A PRODUCT PORTFOLIO TO EXPAND GLOBALLY… Model 2023 2024 2025 2026 2027 2028 2029 2030 A110 SPORT A110 Coupe/Roadster LINE-UP A310 A290 C-XO GT LIFESTYLE LINE-UP D/E-XO GT
Slide 30: And increase our market coverage
… AND INCREASE OUR MARKET COVERAGE EUROPE JAPAN/S. KOREA NORTH AMERICA CHINA* 3.0Mu 0.5 Mu 2.6 Mu 4.4 Mu 80% 0.1 Mu 80% 70% 1.3 Mu 70% 0.8 Mu 0.9 Mu <1% < 1% 0% 0% 2023 2030 2023 2030 2023 2030 2023 2030 MARKETS ADDRESSED: 70% SOURCE: Market Research Note: Premium EV volumes in Mu & Alpine market co
Slide 31: A 2-fold expansion to grow profits
A 2-FOLD EXPANSION TO GROW PROFITS € 90Bn € 3Bn 2023 C-XO GT D-XO GT E-XO GT Sport 2030 4% MARKETS ADDRESSED 70% Note: Addressed Profit Pool in €Bn (A110-specific in 2023, EV Premium in 2030) 30
Slide 32: Built for success
ALPINE O3 BUILT FOR SUCCESS
Slide 33: An asset-light model
AN ASSET-LIGHT MODEL EXTERNAL PARTNERS 32
Slide 34: Tapping into parent group's strong ecosystem
TAPPING INTO PARENT GROUP’S STRONG ECOSYSTEM AMPERE FINANCIAL SERVICES INDUSTRIAL NETWORK TECH & FACTORIES THROUGH OUR OWN CAPTIVE GLOBALLY Scale effect on CMF-platforms, access to Expertise from Møbilize Access to engineering centers state-of-the-art EV plants & software technologies Financial Serv
Slide 35: Complemented by best-in-class partners
COMPLEMENTED BY BEST-IN-CLASS PARTNERS EXTERNAL PARTNERS HIGH-PERFORMANCE BENCHMARK SPORT CHEMISTRY CONNECTIVITY FRANCHISE Long-term commercial partnership for Extensive partnership to shift Strategic partner to boost high-performance, low-carbon batteries towards software-defined vehicle sport fran
Slide 36: Building a motorsport franchise
BUILDING A MOTORSPORT FRANCHISE COMMUNICATION ALPINE CARS PARTNERSHIP ALPINE BRAND MARKETING MOTORSPORT FRANCHISE eSport GT4 Formula 1 WEC / Le Mans Rallye 35
Slide 37: Incredible F1 momentum
INCREDIBLE F1 MOMENTUM F1 momentum A FAVORABLE FRANCHISE CONTEXT $ 1.2Bn <$ 300M +20% >€ 0.5Bn Increasing F1 Cost cap on chassis Increasing sponsoring 3rd party financial revenues(1) & power unit revenues investments in F1(2) Note: (1) amount paid to the teams (2) over the past 5 years 36
Slide 38: Alpine F1 built on solid foundations
ALPINE F1 BUILT ON SOLID FOUNDATIONS F1 momentum A WORLD-CLASS TEAM 4X driver championships 1 out of 4 46 years Works teams Long-term 3X constructor championships commitment 63X GP victories 37
Slide 39: The right partners for Alpine racing franchise
THE RIGHT PARTNERS FOR ALPINE RACING FRANCHISE F1 momentum 38
Slide 40: Unique expertise
UNIQUE EXPERTISE Value F1 momentum TO INCREASE MONETIZATION Sponsoring Licensing Hospitality revenues & merchandising & experience 39
Slide 41: From asset-light to asset-right
FROM ASSET-LIGHT TO ASSET-RIGHT EXTERNAL PARTNERS 40
Slide 42: From asset-light to asset-right
FROM ASSET-LIGHT TO ASSET-RIGHT ALPINE PERFORMANCE DYNAMIC BREAKTHROUGH PLATFORM MODULES H2 POWERTRAIN Leverage distinctive aluminum Central intelligence to drive & synchronize Combining engineering know-how to develop state-of-the-art all chassis, powertrain, aerodynamics, excellence for racing lig
Slide 43: Only centers of excellence
ONLY CENTERS OF EXCELLENCE Enstone Viry Les Ulis ElectriCity Dieppe 42
Slide 44: Business outlook
ALPINE 04 BUSINESS OUTLOOK
Slide 45: Addressing all pillars of sustainable performance
ADRESSING ALL 3 PILLARS OF SUSTAINABLE PERFORMANCE ENVIRONMENTAL SUSTAINABILITY EQUAL Decarbonation of our motorsport OPPORTUNITIES & road car activities Ex: Developing breakthrough Hydrogen engine technology Inclusion by chasing the best talents where they are Ex: Rac(h)er program training 10 young
Slide 46: Equal opportunities as base principle
EQUAL OPPORTUNITIES AS BASE PRINCIPLE RAC(H)ER CEMA DRIVER ACADEMY 45
Slide 47: Environmental sustainability along the value chain
ENVIRONMENTAL SUSTAINABILITY ALONG THE VALUE CHAIN NET ZERO 100% ELECTRIC SUSTAINABLE PRODUCTION LINE-UP MATERIALS 46
Slide 48: Tech for good with Alpine R&D Lab
TECH FOR GOOD WITH ALPINE R&D LAB SKI MOJO EXOSKELETON FOR AQUALINES FOR IQ ENDOSCOPES FOR SAFETY & ULTRA-FAST LOW CARBON SMART HEALTH PERFORMANCE MARINE TRANSPORTATION SYSTEMS 47
Slide 49: Aqualines for ultra-fast low carbon marine transportation
AQUALINES FOR ULTRA-FAST LOW CARBON MARINE TRANSPORTATION Aqualines presentation Alpine undertaking ✓ French start-up developing a new ✓ Wind tunnel model production & generation of low carbon ultra-fast flying aerodynamic testing ships (electric/H2 powered craft) ✓ Key expertise: design, manufactur
Slide 50: IQ Endoscopes for smart health systems
IQ ENDOSCOPES FOR SMART HEALTH SYSTEMS IQ Endoscopes presentation Alpine undertaking ✓ UK Medtech company developing a range ✓ Engineering design of single use flexible endoscope system ✓ Key expertise: design, analysis ✓ Solution helping accelerate the early ✓ Project duration: 2 months, from Janua
Slide 51: Ski Mojo exoskeleton for safety and performance
SKI MOJO EXOSKELETON FOR SAFETY & PERFORMANCE Ski~mojo presentation Alpine undertaking ✓ French company producing a winter sports ✓ Engineering design exoskeleton, improving safety, ✓ Key expertise: design, manufacturing, performance and reducing pain material science, stress analysis ✓ Project dura
Slide 52: Growing from niche to global brand
GROWING FROM NICHE TO GLOBAL BRAND RE-IGNITING THE BRAND COMING OF AGE EXPANDING GLOBALLY 2021 2023 2024 2026 2027 2030+ Brand awareness €1Bn brand value Global sports brand & franchise <50% sales out of France 2/3 of sales outside France 1/2 of sales outside Europe Investment phase Breakeven in 202
Slide 53: A plan carried out by a robust and experienced management team
A PLAN CARRIED OUT BY A ROBUST & EXPERIENCED MANAGEMENT TEAM >150-YEAR COMBINED OF COMPREHENSIVE & GLOBAL EXPERIENCE IN AUTOMOTIVE STRATEGY & VALUE-ORIENTED KEY STRATEGIC RECRUITMENTS FROM REFERENCE BRANDS & INSTITUTIONS 52