Renault Group is ahead of its « Renaulution » plan

Renault Group ought to obtain its goal of €2 billion money mounted price reductions one yr forward of schedule: €1.8 billion have already been achieved of which €0.6 billion throughout this primary half in comparison with 2019

Renault Group ought to obtain its goal of €2 billion money mounted price reductions one yr forward of schedule: €1.8 billion have already been achieved of which €0.6 billion throughout this primary half in comparison with 2019.
Sturdy optimistic internet value impact (+8.7 factors on the Automotive excluding AVTOVAZ revenues), reflecting the implementation of the brand new industrial coverage as a part of “Renaulution”.
Group working margin at 2.8% in comparison with -6.5% within the first half of 2020.
Optimistic Automotive (together with AVTOVAZ) working margin bettering by greater than €1.7 billion in comparison with the primary half of 2020, regardless of the pandemic and the elements disaster.
World gross sales up 18.7% within the first half of 2021 in comparison with the primary half of 2020 however nonetheless down -24.2% in comparison with the primary half of 2019.
Group revenues up 26.8% at €23.4 billion.
Web end result optimistic at €368 million.
Automotive operational free cashflow near breakeven (-€70 million).
Discount of the Automotive internet debt by €0.8 billion and Automotive liquidity place at €16.7 billion at June 30, 2021.
Regardless of the uncertainties in demand, the persevering with damaging results of the elements disaster which might result in a manufacturing lack of about 200,000 models over the yr and rising uncooked supplies costs, Renault Group is aiming to achieve a full yr working margin fee of the identical order because the one of many first half.
In step with environmental challenges, the Group’s ambition is to attain carbon neutrality in Europe by 2040 and confirms it’s on observe to satisfy its CAFE goal in 2021.

These outcomes are the fruits of our strategic Renaulution plan, centered on profitability. They mark solely step one in our turnaround, which ought to speed up with the arrival of the brand new autos in preparation. I wish to thank all our workers for his or her dedication in attaining these outcomes, declared Luca de Meo, CEO of Renault Group.

Now we have taken an necessary step within the restoration of our key monetary indicators, notably due to the return near breakeven of our free cashflow this semester. Our sturdy liquidity place permits us to pursue our restoration with serenity, declared Clotilde Delbos, CFO of Renault Group.

Boulogne-Billancourt, 7/30/2021 – Group revenues reached €23,357 million, up 26.8% in comparison with the primary half of 2020. At fixed trade charges and perimeter¹, Group revenues would have elevated by 31.8%.

Automotive excluding AVTOVAZ revenues amounted to €20,339 million, up 29.3% in comparison with the primary half of 2020. The restoration of the automotive market is contributing +23.7 factors. The implementation of the brand new industrial coverage, specializing in worthwhile volumes, led to a optimistic internet value impact of 8.7 factors and a damaging « quantity efficiency » of -8.7 factors.

The foreign money impact was damaging -3.9 factors primarily linked to the devaluation of the Argentinian peso, the Russian Ruble, the Turkish lira and the Brazilian actual.

The product combine impact is optimistic by +2.9 factors, due to the success of the launch of Arkana which marks the model’s come again within the C-segment, and to the efficiency of sunshine industrial autos.

The “Others” impact, optimistic by +6.8 factors, got here from the rise within the contribution of components and equipment and the restoration of the community enterprise, which was closely impacted by the confinement measures within the first half of 2020.

The Group recorded a optimistic working margin of €654 million representing 2.8% of revenues in comparison with -€1,203 million within the first half of 2020.

The Automotive excluding AVTOVAZ working margin was up +€1.6 billion to -€41 million.

Quantity and gross sales to companions impact had a optimistic affect of €487 million.

Combine/value/enrichment impact was optimistic €599 million due to the affect of the brand new industrial coverage in Europe and value will increase in rising international locations to cowl foreign exchange affect within the first place.

The “productiveness” impact (buying, guarantee, R&D, manufacturing and logistics, G&A) was optimistic €219 million notably due to the efficiency of buying (€143 million).

Currencies and uncooked supplies weighed respectively for -€70 million and -€76 million.

The “Others” impact amounted to +€454 million defined notably by the affect of the restoration of the sellers’ enterprise and the aftersales exercise.

The working margin of AVTOVAZ amounted to €118 million up +€120 million, primarily reflecting the rise in volumes and costs in comparison with the primary half of 2020.

Gross sales Financing contributed €593 million to the Group working margin in contrast with €469 million within the first half of 2020. This enhance is especially as a result of enchancment in the price of danger. The whole price of danger reached 0.16% of the typical performing property in comparison with 0.99% within the first half 2020 reflecting the return to regular market circumstances and the beneficial replace of the provisioning on the finish of June 2021. Working bills represented 1.35% of common performing property in comparison with 1.29% within the first half of 2020. This enhance is defined by the sharp drop in common community performing property in reference to the technique of optimising automobile shares.

Different working earnings and bills stood at -€83 million primarily defined by provisions for restructuring prices (in comparison with -€804 million within the first half of 2020).

After bearing in mind the opposite working earnings and bills, Group working earnings got here to €571 million in contrast with -€2,007 million within the first half of 2020.

Web monetary earnings and bills amounted to -€163 million, in contrast with -€214 million within the first half of 2020.

The contribution of related firms got here to €160 million, in contrast with -€4,892 within the first half of 2020. It’s value noting that Nissan contribution within the first half 2020 included -€4,290 million of impairments and restructuring prices (together with -€1,934 million of IFRS restatements).

Present and deferred taxes represented a cost of -€200 million in contrast with a cost of -€273 million within the first half of 2020.

Web earnings reached €368 million and internet earnings, Group share totalled €354 million (€1.30 per share in contrast with -€26.91 per share within the first half of 2020).

Automotive operational free money circulation was damaging at -€70 million after bearing in mind -€302 million of restructuring bills, a optimistic free money circulation for AVTOVAZ of €294 million and a damaging affect of the change in working capital requirement for -€410 million. Money circulation excluding AVTOVAZ and restructuring bills amounted to €1.8 billion (in comparison with €22 million within the first half of 2020). Investments within the first half of 2021 amounted to €1.5 billion in comparison with €2.5 billion within the first half of 2020.

At June 30, 2021, complete inventories (together with unbiased sellers) represented 427,000 autos in contrast with 547,000 on the finish of June 2020.

The Automotive exercise at June 30, 2021 held €16.7 billion of liquidity reserves. The Automotive internet debt stood at €2.7 billion at June 30, 2021 down -€0.8 billion in comparison with the primary half of 2020.