Renault Group upgrades its 2022

2022 first half outcomes

Renault Group upgrades its 2022 monetary outlook
and accelerates its transformation

• 2022 H1 results, a brand new step within the Group’s turnaround:
  • Significant enchancment in profitability: 4.7% working margin
  • Strong free money circulate era: €956 million
  • Strengthening of the monetary construction: web debt lowered by €1.2 billion to -€426 million
• Acceleration of the technique centered on worth and success of recent automobiles
• 2022 FY financial outlook upgraded
• Capital Market Day within the fall to current the two^nd step of the Renaulution technique and the replace of the Group’s mid-term monetary outlook

“Renault Group is resolutely pursuing its in-depth transformation and turnaround of its activities. These first half results are a proof of this: despite all the headwinds related to the stop of the activity in Russia, the semiconductor crisis and cost inflation, the Group continues to improve its operating performance and is beginning to benefit from the success of new launches.

Having more than compensated for the loss of its Russian activities and continuing its high–speed transformation, Renault Group is upgrading its 2022 full-year financial outlook. In the fall, new mid-term financial outlook and the accelerated roll-out of Renaulution will be presented during its Capital Market Day. All our energies are mobilized to transform Renault Group into a competitive, tech and sustainable player.“ mentioned Luca de Meo, CEO of Renault Group

• 2022 H1¹ results, a brand new step within the Group’s turnaround: vital enchancment in profitability, robust free money circulate era and strengthening of the monetary construction
  • Group income at €21.1 billion, steady in comparison with 2021 H1, regardless of 11.9% decline within the Group’s international gross sales over the interval, in a nonetheless disrupted market
  • Group working margin at €988 million (4.7% of income): up €556 million and +2.6 factors in comparison with 2021 H1
  • Automotive working margin at €420 million (2.1% of Automotive income): +€565 million (+2.8 factors) regardless of a lower of 136,000 automobiles in comparison with 2021 H1
  • Net revenue from persevering with operations at €657 million, up €458 million in comparison with 2021 H1
  • Net revenue from discontinued operations at -€2.3 billion because of the non-cash adjustment associated to the disposal of the Russian industrial actions introduced on May 16, 2022
  • Automotive operational free money circulate at +€956 million (together with a €800 million dividend from Mobilize Financial Services) up €1,470 million in comparison with 2021 H1
  • Automotive web debt lowered by €1.2 billion versus December 31, 2021, of which €522 million associated to the sale of actions in Russia: -€426 million

• Success of recent automobiles and acceleration of the technique centered on worth
  • Group order e-book in Europe at 4.1 months of gross sales, supported by the success of recent launches:
    • Renault Arkana recorded greater than 100,000 orders since its launch, 60% of that are in E-TECH model and 60% on the retail channel
    • Renault Megane E-TECH Electric is experiencing a promising launch with already greater than 25,000 orders, 75% of that are on the very best variations and 80% on probably the most highly effective engines. The first automobiles arrived in French dealerships mid-May; its launch in European nations is underway and can proceed till September
    • Dacia Sandero stays the best-selling automobile to retail clients in Europe
    • With greater than 30,000 orders recorded in 2022 H1, Dacia Spring 100% electrical is
      no 1 electrical automobile offered to retail clients in France
    • Dacia Jogger guarantees to be a brand new success with greater than 50,000 orders in 6 months and a mixture of greater than 60% on high-end variations in Europe
    • Alpine doubled its orders versus 2021 H1 because of the success of its new A110 vary
  • Product combine impact of +3.3 factors on the Automotive income versus 2021 H1 because of new launches (Arkana, Jogger and Megane E-TECH Electric)
  • Performance of E-TECH gross sales² that proceed to develop, representing 36% of the registrations of Renault model passenger automobiles in Europe (vs. 26% in 2021 H1)
  • Acceleration of the pricing impact, which reached +7.4 factors of the Automotive income versus 2021 H1. This impact will proceed in H2 because of the Renaulution industrial coverage
  • Impact of uncooked supplies worth will increase and price inflation greater than offset by the advantages of this new industrial coverage coupled with the Group’s productiveness
• 2022 FY financial outlook upgraded

Renault Group is upgrading its 2022 FY monetary outlook with:

• a Group working margin superior to five%

versus round 3% beforehand

• an Automotive operational free money circulate superior to €1.5 billion

versus constructive beforehand

The Group confirms an affect of the semiconductor disaster estimated at 300,000 automobiles in 2022.

• During its Capital Market Day within the fall, the Group will current an replace of its Renaulution mid-term monetary outlook and its technique positioning itself as a aggressive, tech and sustainable reference participant

Boulogne-Billancourt, July 29, 2022 –

On May 16, 2022, the Board of Directors of Renault Group unanimously accredited the signing of agreements to promote 100% of Renault Group’s shares in Renault Russia to the City of Moscow and its 67.69% stake in AVTOVAZ to NAMI (the Central Institute for Research and Development of Automobiles and Engines). In addition, the settlement gives for a name possibility for Renault Group to purchase again its stake in AVTOVAZ, exercisable at sure intervals over the following 6 years.

As a results of these agreements:

• The Russian actions have been deconsolidated in Renault Group’s 2022 H1 monetary statements and handled as discontinued operations beneath IFRS 5 with retroactive impact from January 1^st, 2022.
• The monetary aggregates of continuous operations for 2022 H1 due to this fact not embody the Russian industrial actions and the yr 2021 has been adjusted consistent with this new scope of exercise.
• The results of discontinued operations represents a lack of -€2.3 billion in 2022 H1, primarily because of the impairment of the property, plant and tools, intangible property and goodwill of AVTOVAZ and Renault Russia in addition to the impairment of particular property held by the opposite entities of the Group and the results of disposals on the Russian entities offered.
• The Automotive web debt was lowered by €0.5 billion from -€1.6 billion to -€1.1 billion at December 31, 2021.

Group income reached €21,121 million, up 0.3% in comparison with 2021 H1. At fixed change charges³, it elevated by 1.1% (damaging change price impact primarily associated to the Turkish lira devaluation).

Automotive income stood at €19,574 million, up 0.3% in comparison with 2021 H1.

The worth impact, constructive by +7.4 factors, mirrored the continuation of our industrial coverage, launched in 2020 Q3, centered on worth over quantity in addition to worth will increase to offset price inflation, and an optimization of economic reductions. It amounted to +8.4 factors in 2022 Q2 after +5.6 factors in Q1.

The success of Arkana, launched in 2021 Q2, in addition to these of Jogger and Megane E-TECH Electric in H1, emphasised the renewal of Renault model within the C section and contributed to generate a constructive product combine impact of +3.3 factors.

These two results make it doable to compensate for the lack of quantity of -5.2 factors, which is especially defined by the decline of the European automotive market in reference to the scarcity of semiconductors.

The affect of gross sales to companions, damaging by -1.8 factors, is especially because of the lower in manufacturing of diesel engines and automobiles for our companions (finish of contracts of Master for Opel and Traffic for Fiat on the finish of 2021).

The “Other” impact, of -2.1 factors, is because of a lower within the contribution of gross sales from the Renault Retail Group (RRG) community following the disposals of branches and partially offset by the aftersales efficiency.

The Group recorded a constructive working margin of €988 million (4.7% of income) versus €432 million in 2021 H1(+2.6 factors).

Automotive operating margin improved by €565 million to €420 million (2.1% of Automotive income, or +2.8 factors versus 2021 H1).

The constructive combine/worth/enrichment impact of +€1,548 million illustrates the success of the industrial coverage centered on worth over quantity. This coverage greater than offset the damaging quantity impact of
-€270 million and the rise in prices (uncooked supplies, buying, guarantee and manufacturing & logistics prices) which amounted to -€647 million. The latter is especially defined by the sharp improve in uncooked supplies costs (-€797 million), partially offset by the efficiency of buying (+€167 million).

The contribution of Sales Financing of Mobilize Financial Services (previously RCI Bank and Services) to the Group’s working margin reached €582 million, down €11 million in comparison with 2021 H1, primarily because of the normalization of the extent of threat and a median performing property (€43.7 billion) reducing consistent with the Group’s technique to optimize automobile shares within the community.

The retail business recorded a 2.3% improve in new financings. The 14.8% improve within the common quantity financed for brand new contracts offset the ten.9% lower of the variety of new financing contracts because of the decline of the Group’s registrations.

In 2022 H1, Mobilize Financial Services efficiently accomplished its first inexperienced bond concern for an quantity of €500 million with a 5-year maturity. The proceeds of this concern might be used to finance electrical automobiles and charging infrastructure. This concern was cashed in early July and is due to this fact not included within the monetary liabilities as at June 30, 2022.

Other working revenue and bills have been damaging at -€49 million (versus -€70 million in 2021 H1) and have been notably defined by restructuring provisions of -€134 million and asset disposals (+€56 million) primarily associated to the sale of a number of industrial subsidiaries of the Group and branches of RRG.

After making an allowance for different working revenue and bills, the Group’s working revenue stood at €939 million versus €362 million in 2021 H1.

Net monetary revenue and bills amounted to -€236 million in comparison with -€138 million in 2021 H1. This deterioration might be defined by the affect of hyperinflation in Argentina, the price of debt remaining steady.

The contribution of related firms amounted to €214 million, up by €54 million in contrast with the primary half of 2021. This consists of €325 million associated to Nissan’s contribution, which greater than offset €111 million damaging contribution from different associates, notably in reference to the impairment of Renault Nissan Bank shares in Russia.

Current and deferred taxes represented a cost of -€260 million in comparison with a cost of -€185 million in 2021 H1 in relation with the advance in revenue.

Net revenue from persevering with operations was €657 million, up by €458 million in comparison with 2021 H1.

Net revenue from discontinued operations amounted to -€2.3 billion because of the non-cash adjustment associated to the disposals of the Russian industrial actions.

Thus, web revenue was -€1,666 million and web revenue, Group share, was -€1,357 million (or -€4.98 per share).

The money circulate of the Automotive business, excluding restructuring bills, included €800 million of Mobilize Financial Services dividend and reached €2.6 billion, up €0.9 billion in comparison with 2021 H1. This money circulate largely lined the tangible and intangible investments earlier than asset disposals which amounted to €1.2 billion (€1.1 billion web of disposals).

Excluding the affect of asset disposals, the Group’s web CAPEX and R&D price was 8.0% of income in comparison with 9.1% in 2021 H1. It amounted to 7.5% together with asset disposals.

Automotive operational free money circulate⁴ was constructive at +€956 million making an allowance for -€278 million of restructuring bills and a damaging change in working capital requirement of -€275 million.

Automotive web debt amounted to -€426 million at June 30, 2022 in comparison with -€1.6 billion at December 31, 2021 (-€1.1 billion adjusted from the operations of AVTOVAZ and Renault Russia), or a lower of €1.2 billion.

In 2022 H1, Renault Group made an early reimbursement of €1 billion of the mortgage of a banking pool benefiting from the assure of the French State (PGE) and can reimbursed, in H2, €1 billion for the necessary annual reimbursement. As introduced, the whole mortgage might be reimbursed by the top of 2023 on the newest.

As a part of its Shelf Registration program, Renault SA launched on June 24, 2022 a bond concern on the Japanese marketplace for a complete quantity of 80.7 billion yen (or €561 million) with a price of three.5% and a
3-year maturity. This concern was cashed in on July 1^st , 2022 and is due to this fact not included within the monetary liabilities as at June 30, 2022.

As of June 30, 2022, whole inventories of recent automobiles (together with the unbiased supplier community) represented 348,000 automobiles in comparison with 427,000 (together with c. 12,000 automobiles in Russia) on the finish of June 2021, or 60 days of gross sales.

Outlook & Strategy

Renault Group is upgrading its 2022 FY monetary outlook with:

• a Group working margin superior to 5%, versus round 3% beforehand
• an Automotive operational free money circulate superior to €1.5 billion, versus constructive beforehand

The Group confirms an affect of the semiconductor disaster estimated at 300,000 automobiles in 2022.

During its Capital Market Day within the fall, Renault Group will current an replace of its Renaulution mid-term financial outlook and its technique positioning itself as a aggressive, tech and sustainable reference participant.

Renault Group’s consolidated outcomes

Adjustments of AVTOVAZ and Renault Russia actions in 2021

Additional data

The condensed half-year consolidated monetary statements of Renault Group at June 30, 2022 have been reviewed by the Board of Directors on July 28, 2022.
The Group’s statutory auditors have carried out a restricted assessment of those monetary statements and their half-year report might be issued shortly.
The monetary report, with an entire evaluation of the monetary leads to the primary half of 2022, is on the market at www.renaultgroup.com within the “Finance” part.

2022 H1 Financial Results Conference

Link to observe the convention at 8am at the moment and out there in replay: occasions.renaultgroup.com/en/

About Renault Group
Renault Group is on the forefront of a mobility that’s reinventing itself. Strengthened by its alliance with Nissan and Mitsubishi Motors, and its distinctive experience in electrification, Renault Group contains 4 complementary manufacturers – Renault, Dacia, Alpine and Mobilize – providing sustainable and modern mobility options to its clients. Established in additional than 130 nations, the Group has offered 2.7 million automobiles in 2021. It employs practically 111,000 individuals who embody its Purpose each day, in order that mobility brings individuals nearer. Ready to pursue challenges each on the street and in competitors, Renault Group is dedicated to an formidable transformation that can generate worth. This is centred on the event of recent applied sciences and providers, and a brand new vary of much more aggressive, balanced and electrified automobiles. In line with environmental challenges, the Group’s ambition is to realize carbon neutrality in Europe by 2040. https://www.renaultgroup.com/en/

¹ The outcomes offered relate to persevering with operations (excluding Avtovaz and Renault Russia whose disposals have been introduced on May 16, 2022)

² The E-TECH vary consists of electrical and hybrid automobiles
³ In order to analyze the variation in consolidated income at fixed change charges, Renault Group recalculates the income for the present interval by making use of common change charges of the earlier interval.

⁴ Automotive working free money circulate: money circulate after curiosity and taxes (excluding dividends obtained from listed firms) much less tangible and intangible investments web of disposals +/- change in working capital requirement
⁵ The outcomes offered relate to persevering with operations (excluding Avtovaz and Renault Russia whose disposals have been introduced on May 16, 2022)