Groupe Renault – Third-quarter revenue up 13%

Groupe Renault – Third-quarter revenue up 13%

In a global automotive market up 5%, Groupe Renault’s registrations rose by 16% to 721,741 units. The group’s market share increased by 0.3 points to 3.3%.

The group continued to enjoy traction from the renewal of its range in a buoyant European market (+5.3%). Its registrations rose by 11.3%, with market share gaining 0.5 points to 9.5%.

Sales under the Renault brand grew by 8.1% thanks to the success of new Mégane, Kadjar, Espace and Talisman models. Clio IV remains the second bestselling vehicle in Europe and Captur was again the leading crossover in its class. In Europe, in the electric vehicle segment, Renault’s market share came to 20.8% in the third quarter, while ZOE posted a 22.4% growth.
Sales under the Dacia brand increased by 22.1%, due chiefly to Sandero Stepway and Duster.

In France, the group outperformed the market with a 3.9% rise in registrations to
123,000 vehicles in the quarter. The group placed five vehicles in the Top 10 best-selling passenger cars at the end of September, with Clio IV coming in at number one and Captur leading its segment. Sandero remains the best-selling car to retail customers, at the end of September and for the third quarter.

Internationally, despite turbulence in Brazil, Russia and Algeria, group sales increased by 21.5% in the third quarter. The group increased its market share in each region.

In the Africa, Middle East and India Region, the group’s registrations were up by 85% as market share gained +2.7 points to 6.4%.

In Iran, Groupe Renault confirmed the trend of the first half of 2016, with deliveries up 135.5% thanks to the success of Logan and Sandero. The group’s market share increased by 2.9 points to 9.6%.

In India, the market grew 17% while Renault registrations were multiplied sevenfold thanks to the success of Kwid. 82,771 Kwids have been registered since the start of the year, including 34,350 in the third quarter alone.

In North Africa, Groupe Renault registrations rose by 13.6%, in a market down 15%. Market share increased by 10.6 points to reach a record 42.2%. In Algeria, the market continues to be weakened by the current regulations setting import quotas. Within this context, the group consolidated its lead in the country with a market share of 63.1%, a gain of 29.2 points. The three best-selling vehicles were Symbol and Sandero – both of which are manufactured at the Oran plant – and Logan.

In the Americas Region, the group’s market share increased by 0.2 points to 6.9%.
The Renault brand continued to benefit fully from the recovery of the Argentinean market, with its registrations up 21.7% in a market up 12.7%. In Brazil, in an automotive market down sharply (-17%), the group held up well, increasing its market share by 0.4 points to 7.8%. The end-2015 launch of Duster Oroch and the upcoming launch of  Alaskan are enabling the group to expand its offering and position itself in the pick-up segment.

In Eurasia, the group’s market share improved by 0.7 points to 12.4%. In Russia, where total industry registrations fell by 15.1%, Renault held up well, registering a limited 4.7% decline. Market share expanded 0.9 points to 8.3%, due to the successful launch of Kaptur, for which more than 7,500 orders have been placed since its launch in June 2016. In Turkey, the group was impacted by the market decline, with sales down 23.1%.

In Asia Pacific, the group’s registrations rose by 25.6% in a market up 11.5%. In South Korea, the group’s largest market in the region, Renault Samsung Motors posted 24.5% growth, driven by the success of its new SM6 sedan and its QM6 crossover. Market share expanded 1.9 points to 6.3% over the period. In China, pending the upcoming launch of Koleos, 10,686 Kadjar have been registered since the model’s introduction in March, including 6,032 in the third quarter alone. The sales network, which currently encompasses 125 dealerships, is expected to grow to 150 outlets by the end of the year.

Third-quarter revenues by operating sector

In the third quarter of 2016, the group’s revenues came to €10,546 million, a 13.0% increase compared to the previous year (+16.7% increase at constant exchange rates).

Automotive revenues came to €9,989 million, up 13.5% thanks to an increase in volume (+10.7 points) and pricing (+4.6 points). This last effect still benefits from price increases in emerging countries to offset currency declines, but as well from recent launches. Growth in Sales to Partners (+1.8 points) reflects the positive momentum of our CKD¹ activities in Iran and China, as well as the increased production of vehicles to our partners in Europe. The euro’s gain against a number of currencies, including the Argentinean peso and the British pound, resulted in an unfavourable impact of 3.8 points. Product mix is negative this quarter (-2.5 points), mainly due to the impact of Kwid in the group’s sales.

Sales Financing (RCI Banque) reported revenues of €557 million, up 4.3% compared with the third quarter of 2015. The number of new financing contracts rose by 10.0%. Average performing assets increased by 17.5% to €33.9 billion.

Outlook for 2016

In 2016, the global market is expected to record growth around 1.7% compared to 2015. The European market, as well as the French one, are now expected to increase by at least 5%.

Outside Europe, the Brazilian and Russian markets are expected to decline: -15% to -20% for Brazil and -12% for Russia. On the contrary, China (+4% to +5%) and India (+7% to +9%) should pursue their positive momentum.

Within this context, Groupe Renault (at constant scope of consolidation) confirms its full-year 2016 guidance:

• ­Increase group revenues (at constant exchange rates)
• Improve group operating margin
• Generate a positive Automotive operational free cash flow

Groupe Renault consolidated revenues

Groupe Renault – Groupe Renault’s low-carbon endeavours earn award from international organization CDP

At a ceremony in the presence of Ségolène Royal, French Minister of the Environment, Energy and Marine Affairs on 25 October 2016, Groupe Renault received a Climate Leadership Award from the international organization CDP (formerly the Carbon Disclosure Project), in acknowledgement of the company’s efforts in reducing greenhouse gas emissions. The CDP awards programme analyses data from thousands of companies worldwide to evaluate their commitment on shrinking their carbon footprint.

Groupe Renault joins the select “A-List” of companies that CDP considers world leaders in countering global warming. On behalf of 827 investors accounting for around 100 billion dollars in assets, CDP draws up its yearly A List on the basis of a detailed analysis of the low-carbon endeavours of more than 2,000 companies worldwide, across all business sectors.

“We’re honoured to achieve the maximum A rating in acknowledgement of our commitment to countering global warming. Renault was the world’s first automaker to commit publicly to shrinking its carbon footprint, and one of the first to take up this challenge by investing massively in the development and wide-scale market release of affordable electric vehicles. Through ongoing innovation in electric vehicles, involving greatly extended travel range for example, we’re advancing toward our goal of lasting and substantial reduction in our carbon footprint,” announced Jean-Philippe Hermine, Groupe Renault VP, Strategic Environmental Planning.

Through a firm, pioneering stance on environmental responsibility, Groupe Renault shrank its overall carbon footprint by more than 17% from 2010 to 2016.

Carbon footprint shrinkage is a major objective for Renault, and features prominently in the company’s strategic plan. It is taken as a performance indicator, and as a management pointer in all company functions, targeting improved environmental awareness and lower energy consumption.

In 2011, Renault became the world’s first automaker to publicly set itself a target figure on carbon footprint reduction. The first objective was a 10% reduction in overall carbon footprint per vehicle sold worldwide by the end of 2013. Renault achieved this goal then committed to further efforts in the form of an average reduction of 3% per year during its 2016: Drive the Change plan. The company was thus targeting an overall carbon reduction approaching 17% from 2010 to 2016.

By the end of 2015, Renault had already shrunk its carbon footprint¹ by 17.2% with respect to 2010, ahead of its 2016 deadline. For the year 2015 alone, the reduction in CO2 emissions achieved by Renault was equivalent to the yearly CO2 emissions from a city the size of Barcelona².

Groupe Renault’s carbon footprint figure includes: emissions of greenhouse gases (CO2 in the main) generated during the vehicle lifecycle as such (production of energy for powering the vehicle, plus the provision of materials involved in vehicle manufacture); and emissions across all its business operations (design, manufacture, transport, sale of vehicles and parts, and all business support functions). To shrink its carbon footprint, Renault addresses all these aspects.

The electric vehicle is an effective and immediately available answer to today’s climate-change concerns: it emits no CO2 while driving³, and its overall carbon footprint, already smaller on average than that of an equivalent internal-combustion vehicle in Europe, will continue to shrink with the development of renewable energy sources for generating carbon-free electricity. Renault has pioneered the electric vehicle in Europe, and leads the European market for electric vehicles, with cars such as ZOE, Europe’s biggest-selling electric car, which now boasts a record travel range of 400 km⁴. Renault has put more than 100,000 electric vehicles on the road since 2011, and in doing so has avoided the discharge into the atmosphere of 125,000 tonnes of CO2.

Renault also works on carbon reduction across all its business operations: in manufacturing, engineering, transport, sales, etc. Renault is constantly improving the energy efficiency of its production facilities, by making increasing use of renewable energies. A good example is the carbon-neutral Tangiers facility in Morocco, the only one of its kind in the automotive industry, which uses a biomass boiler fuelled by local agricultural residues. In 2015, 91% of the plant’s energy needs were met from renewable energy sources, thus avoiding atmospheric discharge of more than 90,000 tonnes of CO2 per year.

Source: Renault