The robust enchancment in working profitability within the second half reveals the primary optimistic impacts of the actions taken within the context of a 12 months closely impacted by Covid-19.
The outcomes for the second half of 2020 (Group working margin at 3.5% and optimistic Automotive operational free money circulate) mark step one within the Group’s restoration. The achievement of 60% of the €2 billion financial savings plan goals proper from the primary 12 months (in contrast with 30% introduced), along with the implementation of the brand new industrial coverage of the “Renaulution” strategic plan largely contributed to those outcomes.
Nevertheless, Fiscal 12 months 2020 stays strongly impacted by Covid-19.
- Gross sales at 2.95 million items, down -21.3% (-6.8% in H2).
- Group revenues down -21.7% at €43.5 billion (-18.2% at fixed alternate charges[1]). Group revenues down -8.9% in H2.
- Group working margin of -€337 million (-0.8% of revenues). It was optimistic at €866 million (3.5% of revenues) in H2.
- Group working revenue at -€1,999 million (+€8 million in H2). It takes into consideration a rise of costs associated to competitiveness enchancment (restructuring prices and impairments) for near a billion euros.
- Internet revenue of -€8,046 million (-€660 million in H2) in comparison with €19 million in 2019.
- Damaging Automotive operational free money circulate of -€4,551 million after a optimistic contribution of €1,824 million in H2.
- Groupe Renault achieved its CAFE targets[2] (passenger vehicles and light-weight industrial autos) in Europe the place it maintains its EV management.
- The digital chips scarcity impacting the entire auto trade doesn’t spare the Group. It’s completely devoted to restrict as a lot as doable the impression on manufacturing. The height of the scarcity must be reached in Q2. The latest estimate, assuming a manufacturing catch-up in H2, offers a internet danger of about 100,000 autos for the 12 months.
- In accordance with the “Renaulution” plan, the Group will proceed the implementation of the actions aiming at its restoration and confirms the 2023 goals communicated throughout the plan presentation.
After a primary half impacted by the Covid-19, the Group has considerably circled its efficiency within the second half. This result’s the fruit of all staff’ efforts, the profitable acceleration on our mounted price chopping plan and pricing coverage enchancment. The precedence is profitability and money technology, as introduced throughout our strategic plan « Renaulution ». 2021 is about to be tough given the unknowns relating to the well being disaster in addition to digital parts provide shortages. We’ll face these challenges collectively, preserving the momentum in direction of restoration we’ve been efficiently engaged in since final summer season, mentioned Luca de Meo, CEO Groupe Renault
Boulogne-Billancourt, February 19, 2021
Group revenues reached €43,474 million (-21.7%). At fixed alternate charges, the lower would have been -18.2%.
Automotive excluding AVTOVAZ revenues stood at €37,736 million, down -23.0%.
The quantity impact was -19.2 factors. It stemmed primarily from the well being disaster and, to a lesser extent, from our industrial coverage favoring revenue over quantity.
Gross sales to companions declined by -5.1 factors, additionally impacted by the well being disaster and the Nissan Rogue manufacturing discontinuation.
Foreign exchange impression was unfavorable -2.8 factors, and associated to the devaluation of the Argentinean peso, Brazilian actual and Turkish lira and to a lesser extent to the Russian rubble.
Worth impact, up 3.9 factors, got here from a extra formidable worth coverage and measures to mitigate devaluations.
Product combine impacted for 1.1 factors due to ZOE gross sales improve.
Impact « others » weighed for -1 level notably due to decrease contribution from spare components exercise, largely impacted by the confinement measures in H1.
The Group’s working margin amounted to -€337 million and represented -0.8% of revenues (4.8% in 2019) due to a marked enchancment in H2 (3.5% of revenues).
Automotive excluding AVTOVAZ working margin was down -€2,734 million to -€1,450 million, which represented -3.8% of revenues in comparison with +2.6% in 2019. Within the second half, it was optimistic at €198 million (0.9% of revenues).
The change could be defined by the next:
- Quantity impact had a unfavorable impression of -€2,556 million, together with gross sales to companions.
- Combine/worth/enrichment impact was optimistic +€172 million regardless of the enrichment of recent merchandise and the regulatory content material.
- The Monozukuri impact was optimistic by +€36 million after taking into consideration a unfavorable impression of -€479 million because of the improve in depreciation and amortization and a decrease R&D capitalization charge.
- Uncooked supplies weighed for -€131 million largely on greater costs for valuable metals.
- The development of +€172 million of G&A spending stemmed from the impression of decrease exercise in H1 but in addition from the corporate’s effort to restrict its prices beneath the « 2o22 » plan.
- Currencies impacted by -€428 million reflecting the devaluation of our predominant currencies regardless of the optimistic impression of the Turkish lira on manufacturing prices.
The AVTOVAZ working margin contribution amounted to €141 million, in comparison with €155 million in 2019 highlighting the resilience of AVTOVAZ within the Covid-19 context.
Gross sales Financing contributed €1,007 million to the Group’s working margin, in comparison with €1,223 million in 2019. This lower was on account of a decrease exercise, with new financings down -17% and a price of danger representing 0.75% of common performing property in comparison with 0.42% final 12 months.
The contribution of Mobility Companies to the Group’s working margin amounted to -€35 million in 2020.
Different working revenue and bills amounted to -€1,662 million (in comparison with -€557 million in 2019) coming from considerably greater restructuring costs and impairments.
Group working revenue got here to -€1,999 million in contrast with €2,105 million in 2019 after taking into consideration a powerful improve of costs associated to competitiveness enchancment.
Internet monetary revenue and bills amounted to -€482 million, in contrast with -€442 million in 2019, on account of greater common indebtedness.
The contribution of related corporations got here to -€5,145 million, in contrast with -€190 million in 2019. Nissan’s contribution was unfavorable at -€4,970 million and the one in all different corporations amounted to -€175 million.
Present and deferred taxes represented a cost of -€420 million in comparison with a cost of -€1,454 million in 2019.
Internet revenue stood at -€8,046 million and internet revenue, Group share totaled -€8,008 million (-€29.51 per share in contrast with €0.52 per share in 2019).
The Automotive internet money place was unfavorable at -€3,579 million at December 31, 2020 in contrast with a optimistic place of €1,734 million at December 31, 2019.
The Automotive exercise at December 31, 2020 held +€16.4 billion of liquidity reserves.
At December 31, 2020, whole inventories (together with impartial sellers) represented 486,000 autos, down greater than 100,000 items (-19%). It represented 61 days of gross sales, in comparison with 68 days at finish December 2019.
The Board of administrators will suggest on the Shareholders’ Annual Basic Assembly, scheduled for April 23, 2021, to not pay a dividend in respect of 2020.
OUTLOOK
Groupe Renault confirms the 2023 goals communicated within the “Renaulution” strategic plan:
- Group working margin above 3% by 2023,
- Cumulative automotive operational free money circulate[3] (2021-23) about €3bn,
- Investments (R&D and capex) at about 8% of revenues by 2023.
Groupe Renault consolidated outcomes
SOURCE: Renault Group