renault group renault s entry range -the right tool … · 2014. 7. 3. · exane bnpp 13/06/2012...

13/06/2012EXANE BNPP

DOMINIQUE THORMANN, CFO

EXANE-BNPP - JUNE 13TH 2012

RENAULT GROUP

RENAULT’S ENTRY RANGE - THE RIGHT TOOL FOR CHASING GROWTH


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 web site (www. Renault.com), in the section Finance / Regulated Information.


ENTRY RANGE SALES EVOLUTION – GROWING TO 1M UNITS IN 2012

23

145248

367

510 535

687

814

~1,000

2004 2005 2006 2007 2008 2009 2010 2011 2012eIN K UNITS

� One third of Renault group sales in 2011

� Sold under Renault and Dacia brands

� A full range - 2 business models


Sandero

192ku

24%

Duster

180ku

22%

Logan

295ku

36%

Stepway

90ku 11%

Van 11ku 1%

MCV 39ku 5%

Pick-up 5ku 1%

ENTRY RANGE: 814k UNITS SOLD IN 2011


ENTRY RANGE ROOTS: BACK IN 1999


ENTRY RANGE ROOTS: CONFIRMED VISION BUT DIFFERENT IMPLEMENTATION

PLAN IN 2000

�Modern & robust

�Dacia brand

�1 derivative

�€5k entry-level price

�>700ku per year from 2010

�Excl. Western European markets

�Pitesti production base

PLAN IN 2006

�Modern & robust�Dacia & Renault

brands�6 derivatives�€7k to €8€ entry-level

price�>700ku per year by

2009�Worldwide

commercialization�Worldwide production

base

2011 RESULTS

�Modern & robust

�Dacia & Renault brands

�7 derivatives

�€7k to €8k entry-level price up to €20k

�>800ku in 2011

�Worldwide commercialization

�Worldwide production base


ENTRY RANGE – WHAT’S THE RECIPE FOR SUCCESS ?

� The “right” level of vehicle content

� High carry-over to minimize investment

� Design to Cost

� Manufacturing to localization


ENTRY RANGE: GLOBAL COMPETITIVE COST FOOTPRINT

S. AFRICA50ku1.5

ROMANIA320ku

2

RUSSIA160ku

2.3

BRAZIL225ku

5

COLOMBIA71ku

3

INDIA65ku

1

MOROCCO75ku

1

2011Capacity 5000h

Labor cost(base 1 = Morocco)

INDIA65ku

1

RENAULT

ALLIANCE


CURRENT LOGAN CLIO 2

ENTRY RANGE BUSINESS MODEL – COST OPTIMIZATION

0%

25%

50%

75%

100%

Commercial expenses

Powertrain depreciation

Other

Entry ticket depreciation

Warranty

Transportation

Production costs

Outsourced parts & powertrain


ENTRY RANGE : A FLEXIBLE TOOL WITH 2 BRANDS

57% of 2011 Entry sales

« value brand » in Europe and Euromed with a specific business

model�� Entry level price positioning

Complementary to Renault’s product range outside Europe

�Mid range price positioning

A regionalbrand in Europe + Euromed

(43% of Entry Sales)


ENTRY RANGE RECIPE FOR SUCCESS VALUE BRAND IN EUROPE & EUROMED

• Low dealer margin

• Low fixed marketing expenses (FME)

• No variable marketing expenses (VME)

• 100% retail focused

= Smart-buy =


ENTRY RANGE RECIPE FOR SUCCESS OUTSIDE OF EUROPE A DIFFERENT POSITIONING

OUTSIDE EUROPE: MID-RANGE PRICE POSITIONNING Q1 2012

700k RBL

200k RBL NE

XIA

AV

EO

PR

IOR

A

LOG

AN

RIO

GR

AN

TA

PO

LOLOG

AN

Ret

ailP

rice

49k BRL

25k BRL

PA

LIO

FIE

ST

A

GO

L

SA

ND

ER

O

SA

ND

ER

O R

etai

lPric

e


ENTRY RANGE : A FLEXIBLE TOOL

0 20 40 60 80 100 120 140

Ukraine

Belgium

Spain

Algeria

Turkey

Morocco

Italy

Romania

Columbia

Germany

Argentina

Iran

France

Russia

Brazil

K Units

TOP 15 COUNTRIES (2011)

Renault: 470ku

Dacia: 344ku


ENTRY RANGE SITUATION: SOLID PROFITABILITY IN 2011

� 18% unit sales growth achieved in 2011

� Entry range achieving > 6% full cost COP in 2011

� Good spread of profit by source by region & body style

� Capacity at the upper limit (Euromed-Africa, Eurasia and Americas)

� Regional roll out of Duster (Eurasia, Americas, Asia Pacific)

� Tangiers �� 170ku new capacity & 3 new body styles

� ~ 20% unit sales growth expected

� All new models replacing current line up (Sandero, Logan, Logan MCV)

� Stronger differentiation Renault/Dacia

� New capacity in Eurasia (AVTOVAZ) & Americas (Brazil)

� Continued growth

2011

2012

2013


Q&A


MONDE

* PC+LCV including USA & Canada

EURASIA

EUROMED AFRICA

ASIA PACIFIC

AMERICAS

EUROPE

GLOBAL*

TIV - 8.4 %GROUP - 17.3 %

TIV + 15.1 %GROUP + 28.6 %

TIV + 2.6 %GROUP + 7.5 %

TIV + 9.8 %GROUP + 1.7 %

TIV + 0.7 %GROUP + 16.0 %

RENAULT’S SALES AND TIV AT MAY 2012 YTD

TIV + 5.8 %GROUP - 5.8 %


1 138

693

15093

13864

1 071

573

17495

14882

0

200

400

600

800

1 000

1 200

YTD'11 YTD'12 YTD'11 YTD'12 YTD'11 YTD'12 YTD'11 YTD'12 YTD'11 YTD'12 YTD'11 YTD'12

GLOBAL

- 5.8 %

EUROPE

- 17.3 %

AMERICAS

+ 16.0 %

ASIA PACIFIC

+ 1.7 %

EUROMED - AFRICA

+ 7.5 %EURASIA+ 28.6 %

INTERNATIONAL + 12.2 %

Thousand units(PC+LCV)

RENAULT GROUP UNIT SALES IN MAY 2012 YTD

INTERNATIONAL SALES MIX AT 47% (+ 8 PTS vs. 2011 YTD)


2012 TIV OUTLOOK : RISKS & OPPORTUNITIES

*

*PC+LCV including USA & Canada

TIV + 4%

TIV + 9%

TIV - 3 / - 4%

TIV + 1%

TIV + 6%

TIV + 3%

renault group renault s entry range -the right tool … · 2014. 7. 3. · exane bnpp 13/06/2012...

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