Estimated 2010 financial results

Renault reports estimated automotive operational free cash flow[1] of €1.67 billion in 2010 for a previously announced objective of €700 million.
 

• The Group is reporting estimated revenues of €38.97 billion, up 15.6% on 2009.
• The Group’s estimated operating margin is 2.8% of revenues, compared with -1.2% in 2009.
• When announced, net income will include the contribution from associated companies, as well as a capital gain of €2 billion from the sale of the B shares of Volvo AB.
• Estimated Automotive operational free cash flow reached €1.67 billion for 2010 exceeding the previously announced objective of €700 million, as a result of stronger revenues in the last-quarter and with the full year change in working capital requirement ending up as a positive impact,
• Net automotive financial debt is estimated at €1.43 billion. The estimated available liquidity reserve[2] reached a record level of €12.8 billion, of which a part will serve to reimburse ahead of schedule the remaining €2 billion of the French State loan, as authorized in the contract.

Carlos Ghosn, Chairman and CEO of Renault, said: “Renault can already announce that, driven by record commercial results in a growing world market and good cost control, the Group has largely exceeded its annual free cash flow objective and reduced net automotive debt to €1.4 billion.”

ADDITIONAL INFORMATION

The figures provided are estimates and were presented to the Board of Directors on January 31, 2010. The Group’s statutory auditors have not yet completed their work on the accounts.

The consolidated financial statements of the Group and the financial statements of the Renault SA parent company at December 31, 2010 will be presented to the Board of Directors for finalization on February 9, 2011.

The definitive 2010 results of the Group as well as the new medium-term plan will be disclosed on February 10, 2011.

[1] Operational free cash flow: cash flow (excluding dividends received from associated companies) minus tangible and intangible investments +/- change in working capital requirement. Dividends received from associated companies in 2010 came to €88 million.

[2] Liquidity reserve: cash and cash equivalents (€8.8 billion) + confirmed credit lines (€4 billion).