Renault Group Midterm Plan "futuREady" Conference Call Summary Company Overview - **Company**: Renault Group - **Plan**: "futuREady" - **Duration**: Midterm plan focusing on growth, profitability, and operational excellence Key Points and Arguments Industry Positioning - Renault aims to become the reference European OEM, focusing on growth and product innovation across three brands [2][5] - By 2030, Renault plans to launch **36 new models**, including **22 in Europe** and **14 in international markets** [10][18] Growth and Revenue Expectations - Total revenue is expected to grow at a **mid-single-digit rate** over the midterm [3] - Targeting a sustainable group operating margin of **5%-7%** of revenue from 2026 onwards [4] - Aiming for strong automotive free cash flow of **EUR 1.1 billion-1.5 billion** per year on average, more than twice historical performance [4] Product and Technology Development - Focus on developing and mastering technologies in electric vehicles and AI-driven cars [2] - Commitment to **50% electric and 50% full hybrid** sales for Renault Brand by 2030 [10] - Introduction of a new **EV platform** and **full hybrid powertrains** to enhance electrification [16][42] Operational Excellence - Quality improvement initiatives have reduced quality incidents by **50%** over the last five years, with a goal to reduce incidents by another **50%** in the next three years [3][54] - Plans to cut production hours per unit by **30%** and reduce variable costs by **EUR 400** per vehicle per year [51][56] Customer Experience and Engagement - Aiming for **80% customer loyalty** over a 10-year vehicle lifecycle, leveraging AI and digital solutions for personalized customer interactions [39][40] - Development of a digital twin for cars and customers to enhance service and maintenance [39] Sustainability and ESG Goals - Commitment to achieving **net zero** in Europe by **2040** and globally by **2050** [63] - Targeting **30% recycled content** per car and focusing on circular economy initiatives [63][64] Brand-Specific Strategies - **Renault Brand**: Focus on European leadership and electrification with 12 new models by 2030 [14] - **Dacia**: Emphasis on value for money, launching **4 electric vehicles** by 2030, and maintaining a strong market presence [26][27] - **Alpine**: Aiming to redefine the brand with a focus on high-performance electric sports cars, targeting **11,000 sales in 2025** [31] Additional Important Insights - Renault's strategy includes a **balanced geographical approach**, focusing on both European and international markets, particularly in fast-growing regions like India and South America [9][10] - The company is adopting a **de-risked business model** to mitigate exposure to challenges faced by competitors in the Chinese and U.S. markets [9] - The introduction of **AI and digital technologies** is central to enhancing operational efficiency and customer engagement [39][49] This summary encapsulates the key points from Renault Group's midterm plan conference call, highlighting the company's strategic direction, growth expectations, and commitment to innovation and sustainability.

Core Insights - Renault Group achieved global sales of 2.3368 million units in 2025, marking a 3.2% year-on-year increase, significantly outperforming the global market growth of 1.6% [2] - The group's strategic positioning and brand matrix demonstrated strong competitiveness, with all three brands—Renault, Dacia, and Alpine—exceeding market average growth rates [2] Group Performance - In Europe, Renault Group's passenger car sales reached 1.6078 million units, a 5.9% increase, solidifying its position as one of the top three automotive manufacturers and maintaining its status as the leading automotive group in France [3] - The international market emerged as a new growth engine, with Renault brand sales outside Europe increasing by 11.7%, particularly strong in Latin America (11.3% growth), South Korea (55.9% growth), and Morocco (44.8% growth) [3] Strategic Implementation - The group is committed to a "value creation" strategy, with nearly 60% of passenger car sales coming from five key European markets, and three models ranking in the top five of their category [4] - The sales of C-segment and above vehicles accounted for 31.1% of total passenger car sales, indicating a continuous optimization of product structure [4] Electrification Transformation - Renault Group accelerated its electrification efforts, with hybrid vehicle sales reaching 400,000 units (up 35.1%) and electric vehicle sales hitting 194,000 units (up 76.7%) [5] - The Renault brand's electric vehicles constituted 20.2% of its passenger car sales, with the Renault 5 E-Tech being the second best-selling electric vehicle in Europe [5] Brand Performance - Renault brand's global sales reached 1.628 million units, a 3.2% increase, with a 7.4% rise in European passenger car sales [6] - Dacia brand achieved sales of 697,400 units, a 3.1% increase, with a focus on retail channels leading to a market share of 7.9% in Europe [7] - Alpine brand registered 10,970 units, a remarkable 139.2% increase, driven by strong performances in France, the UK, and Germany [9] 2026 Strategic Planning - In 2026, Renault Group plans to enhance its product lineup in Europe, including new models such as the Renault Clio and Twingo E-Tech, and expand its international market presence with models like the Renault Boreal and Duster [10] - The CEO emphasized that the 2025 sales performance reflects the alignment of value-driven product planning and strategic layout, with a dual-path powertrain strategy supporting strong commercial performance and electrification goals [10]

Core Insights - Renault Group achieved a third consecutive year of growth, with a total of 2,336,807 vehicles sold globally in 2025, reflecting a 3.2% increase compared to 2024, outperforming the overall market growth of 1.6% [4][15] - The growth was driven by strong international sales and a focus on electrification, with two-thirds of Renault's sales being electrified vehicles (EV and HEV) [2][4] Renault Brand Performance - Renault sold 1,628,030 vehicles in 2025, marking a 3.2% increase, with a notable 10.0% growth in global passenger car sales [4][14] - In Europe, Renault secured the second position in the passenger car and light commercial vehicle market, achieving a 7.4% growth in passenger car sales [3][4] - Full hybrid sales rose by 17.0%, reaching approximately 287,000 units, which accounted for 38.4% of the brand's passenger car sales, significantly above the market average [3][4] Dacia Brand Performance - Dacia recorded 697,408 vehicle sales in 2025, representing a 3.1% growth compared to 2024, and became the second-largest brand among retail customers in Europe [7][8] - The brand's hybrid sales more than doubled, increasing by 121.7%, now accounting for 19.2% of its total passenger car sales [10] Alpine Brand Performance - Alpine achieved a historic performance with 10,970 vehicle registrations in 2025, reflecting a remarkable growth of 139.2% [10][11] - The brand's expansion included the successful launch of the Alpine A290 and the introduction of the new Alpine A390, which is expected to attract new customers [10][11] International Sales Growth - Renault's international sales grew by 11.7%, with significant increases in core markets such as Latin America (+11.3%), South Korea (+55.9%), and Morocco (+44.8%) [4][6] - Outside Europe, Renault's passenger car and light commercial vehicle sales accounted for 38% of total brand volumes, up by 2.9 points [6] Electrification Strategy - Renault Group's electrification offensive continued, with approximately 400,000 hybrid vehicles sold (+35.1%) and around 194,000 electric vehicles sold (+76.7%) in 2025 [4][5] - The Renault brand's electric vehicles now account for 20.2% of its passenger car sales, supported by new models and a strong focus on hybrid sales [5][10] Future Outlook - In 2026, Renault Group plans to continue its product offensive, introducing new models such as the Renault Clio and Twingo E-Tech electric, while expanding its international growth strategy [4][13]