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]

Core Insights - Renault Group reported strong revenue and sales growth in Q3 2025, demonstrating resilience and growth potential in a challenging market environment [1][4] - The company confirmed its full-year financial expectations, indicating confidence in its strategic positioning and product diversification [1] Financial Performance - In Q3 2025, Renault Group's total revenue reached €11.4 billion, a year-on-year increase of 6.8%, with a higher growth rate of 8.5% at constant exchange rates [1] - Cumulative revenue for the first nine months was €39.1 billion, up 3.7% year-on-year, with automotive revenue at €34.3 billion, reflecting a 1.7% increase [1] Sales Performance - Global sales in Q3 reached 529,400 units, a significant year-on-year increase of 9.8%, driven by growth in both international and European markets [2] - In Europe, passenger car sales grew by 10.9%, outperforming the overall market growth of 7.5% [2] - Renault, Dacia, and Alpine brands all experienced comprehensive growth, with Renault ranking third in the European market [2] Market Orders and Inventory Management - Renault maintained a healthy inventory level of 538,000 units as of September 30, supporting future market supply and sales rhythm [3] - The company plans to launch several new models in Q4, including Renault Boreal and Renault Kwid E-Tech, enhancing its product offerings [3] Electric Vehicle Transition - Electric vehicle sales surged by 58.6% in the first nine months, accounting for 43.9% of total sales, with Q3's share rising to 44.0% [4] - The market share for pure electric vehicles increased by over 5 percentage points to 12.7%, with Q3 sales up 122.1% [4] - Hybrid vehicle market share rose by over 8 percentage points to 30.4%, with Q3 sales growing by 25.0% [4] Strategic Outlook - The CFO emphasized a strategy prioritizing value over volume, focusing on cost optimization and preparing for the next mid-term planning phase to accelerate transformation and unlock future growth potential [4]

Group 1 - The core viewpoint is that European automakers are continuing to show significant growth in electric vehicle (EV) sales in the first half of 2025, with major brands like Volkswagen, Renault, and BMW leading the charge [1] - Volkswagen Group's BEV deliveries in Europe increased by 89% year-on-year, while Renault's BEV sales rose by 57%, and BMW's new energy vehicle sales grew by 35% [1] - Stellantis saw a substantial improvement in sales, with some brands like Citroën achieving a 185% year-on-year increase in pure electric sales, while Mercedes-Benz's new energy vehicle sales remained flat [1] Group 2 - European automakers are set to continue launching new electric vehicle models in 2025-2026, which is expected to solidify and extend the trend of electrification [2] - Renault plans to release multiple electric models, including the Alpine A390 and Renault 4, while Stellantis will introduce several models based on new platforms [2] - Volkswagen, BMW, and Mercedes-Benz are also preparing to showcase or begin production of their next-generation electric vehicles, with significant product launches planned for 2025 and 2026 [2]

Group 1 - Renault Group appointed François Provost as CEO of Renault S.A. and Chairman of Renault s.a.s, effective July 31, for a four-year term [1] - François Provost, 57, has extensive international operational and strategic management experience, having served in various key management positions within Renault since 2002 [1] - The previous CEO, Luca de Meo, announced his resignation effective July 15, seeking new challenges outside the automotive industry after leading significant reforms at Renault [3] Group 2 - Renault Group announced that Duncan Minto will serve as interim CEO of Renault S.A. starting July 15, 2025, until a new CEO is appointed [4] - The company is facing multiple challenges, including weak demand in the European market and increased competition from Chinese automakers, leading to a downward revision of its performance expectations for the year [4] - Renault Group's financial report for the first half of 2025 showed revenue of €27.64 billion, a 2.5% increase year-on-year, with automotive revenue at €24.49 billion, a 0.5% increase [5] Group 3 - Under François Provost's leadership, Renault plans to launch seven new models this year, including electric vehicles and mid-cycle updates for existing models [7]