RENAULT INVESTOR RELATIONS April 1-2, 2009
RENAULT CSR MANAGEMENT Switzerland SRI roadshow
GUILLAUME VAUDESCALSRI RELATIONS
2DRF – INVESTOR RELATIONS April 1-2, 2009
SOCIAL PERFORMANCE
0102
AGENDA
ENVIRONMENTAL STRATEGY
03
RENAULT KEY FIGURES
3DRF – INVESTOR RELATIONS April 1-2, 2009
01 RENAULT KEY FIGURES
4DRF – INVESTOR RELATIONS April 1-2, 2009
International
+ 1.7%
Asia AfricaAsia Africa
192
2007 2008
215
+ 12.3%+ 12.3%AmericasAmericas
+ 4.1%+ 4.1%
2007
255
2008
245424
2007
EuroMedEuroMed
2008
405-- 4.6%4.6%
- 7.2%Europe
Thousand units PC+LCVYTD End 2008 (D+9 Data)
2008 COMMERCIAL RESULTSRENAULT RESISTS IN A FAST DECREASING MARKET
WorldWorld
20082007
2,485 2,382
-- 4.1%4.1%EuropeEurope
20082007
1,624 1,507
-- 7.2%7.2%
5DRF – INVESTOR RELATIONS April 1-2, 2009
+ 4.0%
- 7.0%
- 45.0%
+ 4.2%
+ 0.4%
- 2.2%
+ 6.5%
+ 2.5%
- 3.5%
- 21.8%Production
Auto Revenues
Registrations
Q1 2008
Q2 2008 Q3 2008 Q4 2008
- 30.0%Change vs. 2007
- 6.0%
Q4 2008A RAPID & BRUTAL DOWNTURN
6DRF – INVESTOR RELATIONS April 1-2, 2009
20082007
Other operating income & expenses - 116 - 329 - 213
Net financial income & expenses 76 441 + 365
Associated companies 1,675 437 - 1,238
Current & deferred taxes - 255 - 162 + 93
Net income 2,734 599 - 2,135
2008 FINANCIAL RESULTS
Revenues 40,682 37,791 - 7.0%(1)
Operating margin 1,354 212 - 1,142
in % of revenues 3.3% 0.6% - 2.7pt
(1) On a consistent basis, 2007 = €40,620m
Change(million euros)
72008 FINANCIAL RESULTS FEBRUARY 12th 2009
OPERATING MARGIN VARIANCE ANALYSIS
CHANGE 2008 / 2007 : - € 1,142m(million euros)
1,354
212
2007 2008
- 174
- 504
- 816
+ 15
+ 121+ 21
+ 156
FX
Volume
SalesFinancingG&AWarranty
Mix / Price Enrichment
Purchasing
Others
+ 282
+ 175
R&DRaw
Material - 147Manufacturing
& Logistics
- 271
8DRF – INVESTOR RELATIONS April 1-2, 2009
40
44
48
52
56
60
64
68
72
Dec-8
9Ju
n-90
Dec-9
0Ju
n-91
Dec-9
1Ju
n-92
Dec-9
2Ju
n-93
Dec-93
Jun-9
4Dec
-94Ju
n-95
Dec-95
Jun-9
6Dec
-96Ju
n-97
Dec-97
Jun-9
8Dec
-98Ju
n-99
Dec-99
Jun-0
0Dec
-00Ju
n-01
Dec-01
Jun-0
2Dec
-02Ju
n-03
Dec-03
Jun-0
4Dec
-04Ju
n-05
Dec-05
Jun-0
6Dec
-06Ju
n-07
Dec-07
Jun-0
8Dec
-08Ju
n-09
Dec-09
Global TIV (million units)
12-month sliding average
2009 level estimation(3-mth seasonal adjustment : Nov 08, Dec 08, Jan 09 ) 64YTD end 2008 situation
2009 OUTLOOKA CONTINUING DECREASING TREND
68
-14%-19%
55
9DRF – INVESTOR RELATIONS April 1-2, 2009
Aiming for a positive Free Cash Flow
! Maximization of revenue sources! Cost reduction! Working capital decrease! Investments decrease
2009 ACTION PLAN
RENAULT INVESTOR RELATIONS April 1-2, 2009
ENVIRONMENTAL PERFORMANCE02
11DRF – INVESTOR RELATIONS April 1-2, 2009
GLOBAL WARMING
URBAN AIR POLLUTION
RESOURCES DEPLETION
THREE MAJOR ENVIRONMENTAL CHALLENGES
Regulations (Euro 5,6…)
New technologies(Particulate Filter, NOxTrap), Car affordability
CO2 Taxes & Incentives(on Fuels and Cars)
Car price Use costs
Sales mix changes
Material pricesFuel shortage
ProfitabilityCar residual value New Fuel solutions
RESOURCES DEPLETIONTOP 3 CO2
ENVIRONMENT& HEALTH
LIFE CYCLE…UP TO RECYCLING
IMPACTING THE BUSINESS :
THREE OPPORTUNITES
12DRF – INVESTOR RELATIONS April 1-2, 2009
THERE IS NO LONG TERM ENVIRONMENTAL MANAGEMENT OUTSIDE OF MULTIPLE IMPACTS MANAGEMENT OVER THE ENTIRE LIFE CYCLE
Abiotic DepletionPotential
Acidification Potential
Eutrophication Potential
Global WarmingPotential
Photochem. Ozone Creation Potential
13DRF – INVESTOR RELATIONS April 1-2, 2009
LIFE-CYCLE ANALYSIS : MEGANE 3 VS MEGANE 2 (GASOLINE)
Abiotic DepletionPotential
Acidification Potential
Eutrophication Potential
Global WarmingPotential
Photochem. Ozone Creation Potential
Vehicleproduction
Fuel production
Vehicleuse End of life
14DRF – INVESTOR RELATIONS April 1-2, 2009
0
20
40
60
80
100
eutropgw p
0
20
40
60
80
100
eutropgw p
g
- 9%
- 35%
- 10%
- 1%
- 40%
Laguna II1,9dCi110cv
Laguna III1,5dCi110cv
Abiotic DepletionPotential
Acidification Potential
Eutrophication Potential
Global WarmingPotential
Photochem. Ozone Creation Potential
Ref 100%Total life cycle impact
ON EACH NEW VEHICLE, TRUE REDUCTION OF THE FOOTPRINT REQUIRES PROGRESS FOR ALL INDIVIDUAL IMPACTS
15DRF – INVESTOR RELATIONS April 1-2, 2009
95% RECOVERABLE1 USE OF RECYCLE MATERIAL2
BUSINESS COMMITMENT3
2008: RENAULT - SITA
(SUEZ)Joint Venture in
FRANCE
END OF LIFE VEHICLE : RENAULT AT THE FOREFRONT
2008 HOMOLOGATIONMEGANE III
(First type approval for recycling – anticipating
regulatory requirements)
16DRF – INVESTOR RELATIONS April 1-2, 2009
02.1 FOCUS ON CO2 & ENERGY CHALLENGES
17DRF – INVESTOR RELATIONS April 1-2, 2009
Share of mix of Renault sales in the European Union (%)
Emission level (g/km CO2)
60% OF OUR 2008 SALES BELOW 140 g/km CO2
0% 20% 40% 60% 80% 100%
120100 140
24% 36% 40%
Renault particle filter
Logan eco²
18DRF – INVESTOR RELATIONS April 1-2, 2009
FOSTERING THE PROGRESS FROM GENERATION TO GENERATION
DIESEL ENGINES :
GASOLINE ENGINES :
19DRF – INVESTOR RELATIONS April 1-2, 2009
CARS AND ANTHROPOGENIC CO2 EMISSIONS! Personal cars are responsible of about 12 % of the European CO2 emissions! Europe takes the lead of car CO2 emission reduction
(confirmed by Dec 19, 2007 Proposal of EU Commission)! But the issue is global
g/km
20DRF – INVESTOR RELATIONS April 1-2, 2009
80
100
120
140
160
180
200
220
240
260
700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800
2006 Market trendline 2006 Average 2012 objective 100%mass 60% Mass
U.E. CO2 REGULATION- 2012 - AGREEMENT IN DEC.2008
18,75%
18,75%
18,75%
60% mass
CO2Penalty
Kerb weight (kg)
CO
2(g
/km
)
21DRF – INVESTOR RELATIONS April 1-2, 2009
2020 TARGET
22DRF – INVESTOR RELATIONS April 1-2, 2009
CO2 REDUCTION LEVERAGES
Energy generationPowertrain efficiencyVehicle Energy management
Fuel consumption & CO2 emissions
Aerodynamics
Weightmanagement
Rollingresistance
Auxiliaries consumption
Mechanical yield On-boardEnergy management
Catalytic aftertreatmentThermodynamics&kinetics
Production énergie
23DRF – INVESTOR RELATIONS April 1-2, 2009
WEIGHT MANAGEMENT CONCEPT
PC C ROP AF
Cost
Additional cost of lightening
Cost saving on materials
Cost savingof avoided weight increase
Cost savingby indirect lightening Weight
managementcan be
economical
24DRF – INVESTOR RELATIONS April 1-2, 2009
DOWNSIZING….
1.5 dCi 1.2 TCE 100 1.4 TCE 130
Diesel engine Gasoline engines
3 cylinders0,9 l
90 hp
4 cylinders1,2 l 115 hp
Forthcoming turbocharged & direct injection gasoline engines range :
25DRF – INVESTOR RELATIONS April 1-2, 2009
Average Customer value:
52 €/ g/km
1g CO2/km0,04 l/100 km
Fuel consumption
CO2 national taxations
GLOBAL IMPACT ON FOR THE PLANET MEANS AFFORDABLE ENVIRONMENTAL CARS
Each gram of saved CO2 per km has a customer value
26DRF – INVESTOR RELATIONS April 1-2, 2009
CO2TECHNOLOGIES
0%0€/g
2% 4% 6% 8% 12% 14% 16% 18% 20%
20€/g
40€/g
60€/g
100€/g
80€/g
10%
Customer value
52€/g/km
Vehicle managementPowertrain technologies
CO2 benefit
Confidentiel Renault
(1)
(2)
(3)
27DRF – INVESTOR RELATIONS April 1-2, 2009
02.2 FOCUS ON THE ELECTRIC VEHICLE
28DRF – INVESTOR RELATIONS April 1-2, 2009
THREE MAIN REASONS FOR A MASSIVE DEPLOYMENT OF ELECTRIC CARS DURING THE NEXT DECADE
! 1. Technology & Cost- Advanced Li-ion batteries- High volumes production
! 2. Sociology & Market- EV driving range (>> 100 km)- > 50 % of world population in cities (2006)- Suburban drivers: 87 % less than 60 km/day !
! 3. Regulations & Incentives- Car ban or restriction in cities- CO2 taxes on cars
29DRF – INVESTOR RELATIONS April 1-2, 2009
ZERO EMISSION11 PARTNERSHIP AGREEMENTS SIGNED
Tennessee
Denmark
IsraelPortugal
Sonoma County
Oregon Switzerland (Energie Ouest Suisse)France (EDF)
Monaco YokohamaKanagawa
30DRF – INVESTOR RELATIONS April 1-2, 2009
THE INFRASTRUCTURE NETWORK
Quick charge
43 to 100 kW
Standard Charge
3-6 kW
Swap stations
+ NEED FOR SMART NAVIGATION TO LOCATE SPOTS, BOOK THEM AND MANAGE AUTONOMY
31DRF – INVESTOR RELATIONS April 1-2, 2009
4 BUSINESS MODELS
Operator
Operator
Operator
OEM
OEM
OEM
OEM
OEM
Model 2OEM does batteries
Energy operator
B-PLC model(Vehicle and
Battery supply only)
OEMOEMSell/leaseVehicle
Model 4(Israel)
Operator on batteries, energy
and car
OEM
OEM
OEM
OEM
Model 1OEM does batteries
No operator
Operator
Operator
Operator
OEM
Operator
Operator
Operator
Model 3Operator on
batteries and energy
Information system
PublicArea
Swap
Sell/lease
Battery Resale
Recycle
Private (Home)
Charging
EV business fields
32DRF – INVESTOR RELATIONS April 1-2, 2009
03 SOCIAL PERFORMANCE
33DRF – INVESTOR RELATIONS April 1-2, 2009
2009 ACTION PLANADAPT OUR PRODUCTION LEVEL
260
80
100
120
140
160
180
200
220
240
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Thousand units 2008
60
2009 Production forecastRenault global industrial output
34DRF – INVESTOR RELATIONS April 1-2, 2009
SHARPENING THE COMPETITIVE EDGE
! Freezing recruitment in Europe! Contributing to a 10% reduction in overheads! Reorganizing production plants
35DRF – INVESTOR RELATIONS April 1-2, 2009
RENAULT VOLUNTARY DEPARTURE PROJECT
TARGET :Renault SAS: 4,000 peopleo/w Sandouville plant: 1,000European subsidiaries : 1,100
RESULT (as of 03.20.2009) :
•Renault SAS : 6,273 people engaged in the process, 2,413 actual departures
• o/w Sandouville : 1,468 people engaged in the process, 611 actual departures plus 155 inter-sites
36DRF – INVESTOR RELATIONS April 1-2, 2009
2008 TEMPORARY LAY-OFF FIGURES (Renault SAS)
! 2008 : 27,600+ man-day of temporary lay-off (blue collars)
429K €
768K €
332K €
French State aid
Renaultcompensation
Compensation fund
Legal basis
SpecificRenaultagreement
37DRF – INVESTOR RELATIONS April 1-2, 2009
RENAULT SOCIAL AGREEMENT 2009
! Blue collar temporary lay-off better compensated :! Higher French State compensation! Solidarity fund between white collar and blue collar workers : Cancelled White collar
days off are donated into a compensation fund for blue collar workers
FrenchState aid
Crisis management fund
Cancellationof accumulated holidays
[1 white collar’s days off = 5 bluecollar’s days off compensation]
64%
16%
20%
Cost savingpositive impact :
180M€Renault contribution
38DRF – INVESTOR RELATIONS April 1-2, 2009
POPULATION PYRAMID ANALYSIS
TOTAL Production staff
ManagersNon managerialstaff
39DRF – INVESTOR RELATIONS April 1-2, 2009
CONCLUSION
! Renault CSR policy recognized for years
! Innovation capacity both in the technology field and in the social field
! True fundamentals to arise from the crisis