Quarterly information, 30 september 2014

Renault Group Third Quarter revenues up 6.7%

Positive business momentum in Europe offset declines in Renault group’s main emerging markets. The Group gained market share in all Regions, except for the Americas.

• Renault group registrations were stable in the third quarter of 2014, at 612,934 units;
• European market share increased by 0.2 points to 9.3% in the period. Registrations grew 7.6%, supported by the continuing success of new products, Clio, Captur as well as the Dacia brand;
• Renault group revenues came to €8.530 billion in the third quarter, up 6.7% compared with the same period in 2013;
• Automotive revenues rose by 6.7% to €7.984 billion, thanks in particular to increased sales to partners;
• Full-year 2014 guidance maintained.

Business results: highlights of the third quarter 2014

In a global automotive market up 3.2%, Renault group registrations were stable at 612,934 units. The Group gained market share in all Regions, except for the Americas.

In Europe , in a market up 5.5%, Renault group registrations increased 7.6% while market share rose 0.2 points to 9.3%. This result is due to the success of top-selling Renault Clio, Renault Captur, leader in its segment of crossovers, and Dacia Sandero, industry leader for the quarter in Spain.

In France , market share for the third quarter fell 0.5 points to a still high level of 25.8%. Cumulative share at the end of September came to 26.9%, 1.5 points higher than in the previous year. Renault Clio is still the best-selling vehicle in France, across all segments.

The Group's strong performance in the United Kingdom (+42.8% with 28,694 units) and in Southern Europe should also be noted: Italy (+30.1%), Spain (+24.0%) and Portugal (+28.2%).

In the third quarter, Dacia's market share was up 0.2 points to 2.4% of the European market. At the end of September, Dacia was still the fastest-growing automotive brand in Europe.

Outside of Europe , the Group's registrations fell 7% and accounted for 48% of total volumes in the period.

In the Americas Region , the Group's registrations fell 20.6% in a market down 8.3%. In Argentina , despite Clio Mio being the market leader, local financial conditions restricted imports, causing Renault registrations to drop by a half in a market that fell nearly 30%. In Brazil , the Group's second-largest market worldwide, market share was stable at 7.1% pending the full effect of New Sandero, which was launched during the summer.

In the Eurasia Region [1] , the Group's registrations fell 13% in a market down 20.3%. In Russia , the Group's third-largest market worldwide registrations were down 14.7 %. However, Renault's market share increased 0.7 points to 7.8% thanks mainly to the renewal of the New Logan. In Turkey , the drop in the market slowed to -8.9% in the quarter, compared with -23.6% at the end of June. Within this context, Group market share fell by 1 point to 16.1%.

In the Africa, Middle–East, India Region [2] , Group registrations increased by 14.4%, in line with the market. In Algeria , the market declined more slowly (-6.7% in the quarter, compared with -34.5% at the end of June) while Renault group registrations increased by 9%, driven by Dacia Logan, the best-selling vehicle. The Group gained 4 points of market share, which came to 27.5%. In India , an unfavourable product cycle negatively impacted Renault registrations by -13.3% in a market that recovered by 10% in the period.

In the Asia-Pacific Region , Group registrations increased by 37.1% in a market up 2.8%. In South Korea , Renault Samsung Motors continued to gain market share (+0.2 points, at 4.3%), with volumes up 10.5%, thanks in particular to the success of QM3.

Third-quarter revenues by operating sector

In the third quarter of 2014, Group revenues increased by 6.7% to €8,530 million.

Automotive revenues grew 6.7% to €7,984 million. Sales to partners accounted for, 4.4 points as production of assembled vehicles increased in the period.

Despite stable registrations, volumes made a positive contribution of 3.1 points due to a lower reduction in inventory in the independent dealer network during the quarter.

Price increases had a positive impact of 1.1 points and offset in large part the negative 1.3 points currency effect.

Sales financing (RCI Banque) contributed to Group revenues for €546 million, up 6.0% compared with the same period in 2013. Average performing loans, which amounted to €25.6 billion in the third quarter of 2014, increased by 4.1%. The number of new financing contracts increased 5.3% to 301,588 compared with the third quarter of 2013.

Outlook

The European market should increase by 5% this year (compared with 3 to 4%, as previously expected). Our main emerging markets should remain adverse and volatile in the fourth quarter.

Within this context, the Group confirms its guidance:

• increase registrations and Group revenues (at constant exchange rates);
• improve Group operating profit and that of the Automotive division;
• achieve positive Automotive operational free cash flow.

Renault group consolidated revenues

[1] New scope of the Eurasia Region including Turkey, Romania, Moldavia and Bulgaria previously in the Euromed Region
[2] Creation of the Africa, Middle-East, India Region resulting from the split of Euromed-Africa and Asia-Pacific Regions