Feb 12, 2015 - In cash. Dividends received from listed co. Capitalized. R&D. -845 .... Warranty Manufacturing. &
RENAULT GROUP FY 2014 FINANCIAL RESULTS
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 website (www.group.renault.com), in the section Finance / Regulated Information.
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
2
AGENDA
01
FY 2014 FINANCIAL RESULTS
02
2014 REVIEW AND 2015 OUTLOOK
03
QUESTIONS & ANSWERS
FY 2014 RENAULT GROUP
DOMINIQUE THORMANN EVP, Chief Financial Officer
CARLOS GHOSN Chairman & Chief Executive Officer
February 12, 2015
RENAULT PROPERTY
3
01
FY 2014 FINANCIAL RESULTS DOMINIQUE THORMANN
EVP, Chief Financial Officer
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
4
RENAULT GROUP UNIT REGISTRATIONS 2014 vs 2013 WORLD MARKET SHARE: 3.2% (=)
K units (PC+LCV)
2,628 2,712
1,465 1,302
INTERNATIONAL -5.9% 412
2013
2014
GLOBAL GROUP +3.2% TIV
+3.5%
FY 2014 RENAULT GROUP
2013
2014
2013
390
2014
339
2013
467 308
2014
2013
417
2014
108
133
2013
2014
EUROPE +12.5%
EURASIA -5.4%
AFRICA-ME-INDIA -9.2%
AMERICAS -10.7%
ASIA-PACIFIC +23.0%
+5.9%
-11.5%
+7.8%
-7.5%
+4.6%
February 12, 2015
RENAULT PROPERTY
5
FY 2014 GROUP REVENUES
Global unit sales (units) Group revenues of which: Automotive Sales financing
2013
2014
2,628,208
2,712,432
+3.2%
40,932
41,055
+0.3%
38,775
38,874
+0.3%
2,157
2,181
+1.1%
(million euros)
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
6
CHANGE
AUTOMOTIVE REVENUES VARIANCE ANALYSIS CHANGE 2014 vs 2013: +€99m Sales to partners
-14 +1,248
-1,150 Currency
-327
Geographic mix
Price
+64
+311
Others
-33
Volume
38,874
Mix
38,775
-3.0pts
-0.8pts
+0.2pts
-0.1pts
+0.8pts
+3.2pts
0.0pts
+0.3% FY 2013
FY 2014
(million euros)
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
7
OPERATING PROFIT BY ACTIVITY
FY 2013 AUTOMOTIVE % Automotive revenues
SALES FINANCING GROUP OPERATING PROFIT % Group revenues
FY 2014
495
858
+363
1.3%
2.2%
+0.9pts
747
751
+4
1,242
1,609
+367
3.0%
3.9%
+0.9pts
(million euros)
FY 2014 RENAULT GROUP
February 12, 2015
CHANGE
RENAULT PROPERTY
8
GROUP OPERATING PROFIT VARIANCE ANALYSIS CHANGE 2014 vs 2013: +€367m Raw materials G&A Monozukuri
Volume & partners
+134
+66
-226
+121 -35
Mix / Net Enrichment
RCI Banque & other activities
+778
-471 Currency
COST REDUCTION €844m
GROWTH €86m
1,609
1,242
FY 2013
FY 2014
(million euros)
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
9
OTHER OPERATING INCOME & EXPENSES
FY 2013 Net restructuring costs
FY 2014
-423
-305
-488
-153
-
-50
Profit / loss on asset sales
+153
+7
Others
-518
-3
-1,276
-504
(incl. competitiveness agreement in France) Impairment of assets / reversal
RCI Banque (mainly change in regulation)
Total other operating income & expenses (million euros) FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
10
FY 2014 FINANCIAL RESULTS
FY 2013 Revenues Operating profit in % of revenues Other operating income & expenses EBIT Net financial income & expenses Associated companies Current & deferred taxes Net income
FY 2014
40,932
41,055
+0.3%
1,242
1,609
+367
3.0%
3.9%
+0.9pts
-1,276
-504
+772
-34
1,105
+1,139
-282
-333
-51
1,444
1,362
-82
-433
-136
+297
695
1,998
+1,303
(million euros)
FY 2014 RENAULT GROUP
February 12, 2015
CHANGE
RENAULT PROPERTY
11
ASSOCIATED COMPANIES
Nissan AVTOVAZ
(1)
Others Total associated companies
FY 2013
FY 2014
1,498
1,559
+61
-34
-182
-148
-20
-15
+5
1,444
1,362
-82
(million euros)
(1)
AVTOVAZ is consolidated with a 3-month time lag . Adjustments have been made to take into account significant transactions and accounting entries that occurred between September 30, 2014 and December 31, 2014.
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
12
CHANGE
FY 2014 FINANCIAL RESULTS
FY 2013 Revenues Operating profit in % of revenues Other operating income & expenses EBIT Net financial income & expenses Associated companies Current & deferred taxes Net income
FY 2014
40,932
41,055
+0.3%
1,242
1,609
+367
3.0%
3.9%
+0.9pts
-1,276
-504
+772
-34
1,105
+1,139
-282
-333
-51
1,444
1,362
-82
-433
-136
+297
695
1,998
+1,303
(million euros)
FY 2014 RENAULT GROUP
February 12, 2015
CHANGE
RENAULT PROPERTY
13
AUTOMOTIVE NET CASH POSITION
Change in WCR
Cash flow
DEC 31, 2013 : €1,761m DEC 31, 2014 : €2,104m
Net tangible & intangible investments -2,651
+596 Net capex
-1,571
Capitalized R&D
3,138
-845 Leased Vehicles
-235
Operational free cash flow
Dividends received from listed co.
+463
Dividends paid Financial investments & others
-542
-661
1,083
Net change In cash
343 (million euros)
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
14
DISTRIBUTION STOCK NEW VEHICLE DISTRIBUTION STOCK (IN K UNITS)
421 228 193
445 314
481
507
240 241
DEC'12
MAR'13
JUN'13
65
65
72
67
527
260
272
243
255
140
SEP'12
488 388
367
131
FY 2014 RENAULT GROUP
503
75
February 12, 2015
DEC'13
63
MAR'14
76
493
459
TOTAL
253
353
240
106
INDEPENDENT DEALERS GROUP
337 158
100 SEP'13
495
JUN'14
SEP'14
DEC'14
62
74
57
RENAULT PROPERTY
15
Number of days of sales (previous period)
AUTOMOTIVE DIVISION LIQUIDITY
DECEMBER 2013
DECEMBER 2014
LIQUIDITY RESERVES
LIQUIDITY RESERVES
Cash Available credit lines
= €10.7bn = €3.4bn
Cash Available credit lines
= €11.6bn = €3.2bn
TOTAL
= €14.1bn
TOTAL
= €14.8bn
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
16
RCI BANQUE
2013
2014
New financings (€bn)
11.4
12.6
Average loans outstanding (€bn)
24.2
25.4
5.04%
4.98%
Cost of risk (customer & dealer)
-0.42%
-0.43%
Operating expenses*
-1.56%
-1.58%
3.07%
2.95%
747
751
Net banking income*
Pretax income* Operating profit (€m) (in percentage of average loans outstanding)
FY 2014 RENAULT GROUP
February 12, 2015
* Excluding non recurring items RENAULT PROPERTY
17
RCI BANQUE RETAIL DEPOSIT ACTIVITY
End 2013
End 2014
4,33
6,53
o/w GERMANY
3,05
4,38
o/w FRANCE
1,28
1,78
o/w AUSTRIA
-
0,37
DEPOSITS
(billion euros)
• 2016 TARGET: 30% OF RCI BANQUE OUTSTANDINGS
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
18
02
2014 REVIEW & 2015 OUTLOOK CARLOS GHOSN Chairman & Chief Executive Officer
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
19
2014: GUIDANCE FULLY MET
REGISTRATIONS 2014 > 2013 REVENUES 2014 > 2013*
* at constant exchange rates
GROUP & AUTOMOTIVE OP. PROFIT 2014 > 2013 AUTOMOTIVE OPERATIONAL FREE CASH FLOW > 0
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
20
2014: EUROPEAN RECOVERY STRONGER THAN EXPECTED
FRANCE GERMANY UK ITALY SPAIN
GLOBAL TIV
+ 3.5%
EUROPE TIV
+ 5.9%
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
21
+ 0.5% + 3% + 10% + 5% + 20%
2014: ADVERSE ENVIRONMENT IN OUR MAIN EMERGING MARKETS
RUSSIA TURKEY ALGERIA MOROCCO
GLOBAL TIV
- 11% - 10%
- 20% +1%
+ 3.5%
EURASIA TIV
- 11.5%
AFRICA-ME-INDIA TIV
INDIA
+ 7.8%
AMERICAS TIV
- 7.5%
BRAZIL ARGENTINA COLOMBIA
ASIA-PACIFIC TIV
+ 4.6%
FY 2014 RENAULT GROUP
February 12, 2015
- 7% - 28% + 10%
RENAULT PROPERTY
22
- 1%
2014: A ROBUST MILESTONE FOR OUR MID-TERM PLAN
RENAULT GROUP REGISTRATIONS
+ 3.2% vs 2013
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
23
2014: A ROBUST MILESTONE FOR OUR MID-TERM PLAN STRONG SALES PERFORMANCE IN EUROPE NEW CLIO
2014 MS FRANCE
CAPTUR
26.6 %
+ 1.3
GERMANY
5.3 %
+ 0.2
ITALY
8.9 %
+ 1.6
SPAIN
13.2 %
+ 1.0
3.9 %
+ 0.9
U.K.
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
vs 2013 (pts)
24
2014: A ROBUST MILESTONE FOR OUR MID-TERM PLAN RESILIENCE IN EMERGING MARKETS NEW LOGAN
2014 MS
NEW SANDERO
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
vs 2013 (pts)
BRAZIL
7.1 %
+ 0.5
RUSSIA
7.9 %
+ 0.3
TURKEY
17.4 %
+ 0.4
ALGERIA
26.9 %
+ 0.7
ARGENTINA
12.9 %
- 2.5
25
2014: A ROBUST MILESTONE FOR OUR MID-TERM PLAN ACCELERATION OF SALES TO PARTNERS
SALES TO PARTNERS CONTRIBUTION IN 2014
+€1.25bn vs 2013
NISSAN ROGUE shipment from South Korea to USA
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
26
2014: A ROBUST MILESTONE FOR OUR MID-TERM PLAN CONTINUING COST REDUCTION
COST REDUCTION CONTRIBUTION TO OPERATING PROFIT IMPROVEMENT
+ 66 + 58
+€844m vs 2013
+ 397 -107 + 430
Purchasing
FY 2014 RENAULT GROUP
Warranty
Manufacturing & Logistic
February 12, 2015
R&D
G&A
RENAULT PROPERTY
27
2014: A ROBUST MILESTONE FOR OUR MID-TERM PLAN 4 KEY-FUNCTIONS CONVERGENCE
ALLIANCE SYNERGIES
> €4.3bn €3.8bn*
2009
2010
2011
Renault
2012
2013
2014
PURCHASING
UPSTREAM ENGINEERING
MANUFACTURING & LOGISTICS
HUMAN RESOURCES
2016e
Nissan
(*) estimated
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
28
2014: A ROBUST MILESTONE FOR OUR MID-TERM PLAN MARGIN IMPROVEMENT > 5% in 2017* 3,9% 3,0% 2,2% 1,9% 1,3%
0,1%
2012 restated
2013
2014
GROUP OPERATING MARGIN AUTOMOTIVE OPERATING MARGIN
* target
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
29
2015 TIV OUTLOOK UNCERTAINTIES IN EMERGING MARKETS
EUROPE + 2%
RUSSIA -20% to -30%
GLOBAL TIV*
+ 2% ARGENTINA & BRAZIL Single digit decline
* PC+LCV INCLUDING USA & CANADA
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
30
2015: A NEW STEP TOWARDS OUR MID-TERM PLAN TARGETS OUR MAIN REVENUES OPPORTUNITIES
2015 A-entry vehicles for emerging countries A-entry
2014 New Twingo for Europe New Twingo
2015
2015
New Espace
D-sedan
2014
2015
Captur
Kadjar
C & D complete renewal
Full cross-over line up for all our markets
C-hatch
D-crossover
2015 LCV international roll out Pick-up 0,5T
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
Pick-up 1T
31
C-MPV
2015: A NEW STEP TOWARDS OUR MID-TERM PLAN TARGETS OUR MAIN COST EFFICIENCY LEVERS
COMPETITIVENESS AGREEMENT BENEFITS
LEVERAGING CMF PLATFORMS
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
32
PREPARING FOR THE FUTURE USINE DE WUHAN
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
33
PREPARING FOR THE FUTURE
EOLAB
FY 2014 RENAULT GROUP
February 12, 2015
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34
OUTLOOK 2015
THE GROUP IS AIMING TO Increase further its registrations and revenues* Continue to improve the group’s operating margin and that of the
Automotive division Generate positive Automotive operational free cash flow
RENAULT IN TRAJECTORY TO ACHIEVE MID-TERM PLAN TARGETS
* At constant exchange rates
FY 2014 RENAULT GROUP
February 12, 2015
RENAULT PROPERTY
35
