Renault Group sees Q3 gains, in line with Q1 and Q2, and expects full year results to be significantly higher.

QUATERLY INFORMATION - SEPTEMBER 30, 2015

Renault Group maintained its pace of growth in the third quarter. In Europe, buoyant markets and the success of its new products continued benefiting the firm. Outside Europe, its market share increased or remained stable in all regions.

• In the third quarter of 2015, Renault Group registrations were up 1.2%, at 620,525 units.
• In Europe, Group registrations increased by nearly 21,000 units (+6.5%), supported particularly by the success of new models. The order backlog increased considerably compared with 2014.
• Outside Europe, the Group gained market share in Eurasia (+1.5 points) and in the Americas (+0.5 points) where the main national markets were down.
• Renault Group revenues came to €9.34 billion in the third quarter, up 9.4% compared with the same period in 2014.
• Automotive revenue increased 10.2% to €8.80 billion, still supported by sales to partners.
• The Group confirms its guidance for 2015.

Business results: highlights of the third quarter of 2015

Renault Group registrations (620,525 units in the quarter) were up 1.2%, in a global automotive market down 0.2%. Group registrations grew by 7,288 units in the third quarter, compared to an increase of 9,806 during the first half of the year.

In Europe, the Renault Group recorded a 6.5% increase in its registrations, in a market which continued to grow (+9.8%). Despite these additional 20,802 registrations over the period, the group’s market share dropped by 0.3 points to 9.0%.

The success of the most recent launches, Kadjar and Espace, together with the strength of Captur and Clio, greatly enhanced the order book (44,000 units more than at end-September 2014). This success should have a positive effect on the Group's sales performance in Europe for the last quarter.

The Group recorded strong increases in registrations in most European countries. In particular, a strong performance was posted in the United Kingdom (+22.3%), the Netherlands (+21.7%), Spain (+16.2%),Portugal (+21.1%) and in Poland (+25.4 %).

The Renault brand drove the Group's performance with volumes up 23,199 units, i.e. +9.8% compared with the same period in 2014. The market share of the Dacia brand decreased by 0.3 points, to 2.1% of the European market.

In France, Group sales decreased slightly, by 186 units. In the third quarter, its market share decreased by 1.4 points to 24.4%. Renault Clio is still the best-selling vehicle in France, across all segments.

Outside of Europe, the Group maintained its market share. In a market down 5.1%, the Group's registrations fell 4.6% and accounted for 45.4% of total volumes in the period. The Group gained market share in the Americas (+0.5 points), Eurasia (+1.5 points) and remained stable in Africa Middle-East India (+0.1 points) and in Asia-Pacific (0.0 points).

In the Americas, Group registrations fell by only 5.3% in a market down 12.5%. In Brazil, the Group's second-largest market worldwide, Renault strengthened its position and its market share increased by 0.3 points to 7.4%. In Argentina, Group registrations increased sharply over the period. With 5,437 more units than in 2014, they increased by 26.3%. The Group’s market share reached 14.6%, up by 2.6 points.

In the Eurasia Region, market share increased by 1.5 points. Group sales fell by 1.2%, in a market down 13.9%. In Russia, where the Group is aiming to defend margins, the decline in market share was limited to 0.5 points. Group registrations fell by 29.8%, in a market down 25.3%. In Turkey, Renault Group registrations shot up by 31.6%, in a market up 23.5% over the quarter. The Group gained 1.1 points of market share, which came to 17.1%.

In the Africa, Middle-East, India Region, Group registrations fell by 4.8%, in a market down 6.6%. As a result, Group market share increased by 0.1 points. In Algeria, the Group limited the drop in registrations to -36.7% in a market down 48.6%, disrupted by regulatory changes. Renault Group consolidated its leadership with a market share up 6.4 points, to 34%. In India, pending the launch of Kwid sales (which already recorded more than 50,000 pre-orders as of today), the Group's sales fell by 4,818 vehicles and its market share by 0.7 points.

In Asia-Pacific, Group market share was stable over the quarter with registrations down 11.2%. In China,pending the start of its local production in early 2016 in the leading market worldwide, the Group recorded a drop in sales equal to 6,735 units. In Korea, with sales up by 2,770 units over the period, Renault Samsung Motors continued to grow (+16.6%) faster than the market (+12.5%). Its market share, up by 0.2 points, has now reached 4.5%.

Third-quarter revenues by operating sector

In the third quarter of 2015, Group revenues increased by 9.4% to €9,336 million.

Automotive revenues grew 10.2% to €8,802 million. Continued growth in sales to partners accounted for 5.2 points of this increase. The 0.6 point volume effect is lower than the increase in registrations (+1.2 points) due to the CKD^[1] activities recorded under sales to partners. The geographic mix was down 0.6 point mainly explained by the sales drop in Asia. The product mix was positive by 2.3 points thanks to the success of Kadjar and Espace sales. The positive price effect of 2.3 points was attributable to:

- Price increases, in particular in emerging markets, to offset drops in currency,

- An improved version mix.

The currency impact was negative by 2.2 points, due mainly to the weak Russian ruble and Brazilian real.

"Other" items recorded a positive effect of 2.6 points, following the improved contribution of "parts & accessories", used vehicle sales, and the re-invoicing of R&D to partners.

Sales financing (RCI Banque) contributed to Group revenues for €534 million, down 2.2% compared with the same period in 2014. This decrease was due to lower interest rates in Europe and the drop in some currencies. Average performing loans increased by 12.8% and came to €28.8 billion in the third quarter of 2015. The number of new financing contracts increased 15.2%, compared with the third quarter of 2014.

Outlook

The European car market should grow 8% this year, with a French market up 5%. Our main emerging markets should remain adverse and volatile in the fourth quarter.

Within this context, the Group confirms its guidance:

• increase its registrations and revenues (at constant exchange rates),
• improve the Group’s operating margin and that of the Automotive division,
• generate a positive Automotive operational free cash flow.

^[1]CKD : completeKnockdown

Renault group consolidated revenues

(in € million)	2015	2014	Change 2015/2014
1st quarter
Automotive	8,829	7,727	+14.3 %
Sales financing	559	530	+5.5 %
Total	9,388	8,257	+13.7 %
2nd quarter
Automotive	12,236	11,012	+11.1 %
Sales financing	573	551	+4.0 %
Total	12,809	11,563	+10.8 %
3rd quarter
Automotive	8,802	7,984	+10.2 %
Sales financing	534	546	-2.2 %
Total	9,336	8,530	+9.4 %
9 months
Automotive	29,867	26,723	+11.8 %
Sales financing	1,666	1,627	+2.4 %
Total	31,533	28,350	+11.2 %

Porsche looks like it will have another record year after it releases its Q3 results showing significant gains.

Sports car maker secures return on sales of 15.5 percent after nine months

Porsche AG is heading towards another record year. In the first nine months of 2015, the sports car maker has increased deliveries of new vehicles by 28 percent to 173,085 and revenue by 35 percent to 16.47 billion euros. Operating profit exceeded that of the previous year by 32 percent, reaching a figure of 2.55 billion euros. Operating return on sales was 15.5 percent.

Chief Financial Officer and – since October 1 – new Deputy Chairman of the Executive Board, Lutz Meschke, emphasized that this trend is a positive indicator of the financial situation for Porsche. “After we were able to retire our net debt while simultaneously financing our growth in fiscal 2014, net liquidity has continued to increase in the first nine months.” Net liquidity from the car business division rose from 195 million euros as of December 31, 2014 to 1.32 billion euros as of September 30, 2015. Meschke also remains optimistic for the year as a whole: “I expect that we will achieve a significant year-on-year increase in revenue and operating profit in fiscal 2015.” He also reaffirmed, “Porsche will meet the return on sales target of 15 percent that it has set itself.” For the 2016 fiscal year, Meschke is confident in light of the outstanding order situation Porsche is enjoying.

The new Chairman of the Executive Board, Dr. Oliver Blume, pointed out that Porsche was recording two-digit growth rates in Europe as well as in America and Asia. “This homogeneous growth in the key markets is a particular strength of Porsche,” said Blume.  He gave two reasons for the success: “The world-famous top quality of the sports cars and the high level of customer satisfaction.”  Two studies conducted by the prestigious U.S. market research institute J.D. Power confirmed this in 2015. Porsche achieved the highest overall ranking in the “Initial Quality Study” (IQS) for the third time in a row. In the J.D. Power “Automotive Performance, Execution and Layout Study” (APEAL), Porsche achieved the highest score for the eleventh time in succession in the overall assessment and thus remains the most attractive car brand for drivers in the United States.

This worldwide success results in job creation for Porsche. After nine months of 2015, the number of employees has risen to 23,999 – nine percent more than twelve months ago. Within the last five years, the sports car maker has been able to grow its workforce from approximately 13,000 to the current level of 24,000 employees – an increase of more than 80 percent.

WORLDWIDE SALES - VW COMMERCIAL - The decline in sales has started with both passenger & Commercial down.

• Sales of the Brand remains at the level as last year
• T-series achieves growth of 3.1 per cent

Up to the end of September 2015, Volkswagen Commercial Vehicles delivered 321,300 urban delivery vans, Transporters and pick-ups, all over the world. The brand's deliveries therefore continue to be at the level of the previous year (January to September 2014: 324,800, -1.1 per cent).

In the West European markets deliveries fell by 0.2 per cent to 212,500 deliveries (213,000). In Germany deliveries fell by 5.6 per cent to 81,000 vehicles (85,800). There was once again a clear growth in sales in the United Kingdom with an increase of 13.1 per cent to 38,500 vehicles (34,050). In Spain, the brand's sales increased by 8.5 per cent to 7,200 deliveries (6,600).

In Eastern Europe deliveries fell by 21.2 per cent to 21,800 vehicles (27,600). In the Middle East 26,000 vehicles were delivered, 43.8 per cent more than the previous year (18,100). In Mexico, deliveries rose by 8.9 per cent to 4,800 vehicles (4,400).

In South America Volkswagen Commercial Vehicles delivered 27,700 vehicles (30,000; -7.7 per cent). The brand's deliveries in Brazil fell by 34.2 per cent to 9,100 vehicles (13,900). 14,500 vehicles were delivered on the Argentinian market, an increase of 13.0 per cent (12,850).

Worldwide: Caddy deliveries fell by 4.6 per cent to 104,500 vehicles (109,600). The T-series saw growth of 3.1 per cent to 125,100 deliveries (121,400). Amarok sales fell by 2.5 per cent to 55,600 vehicles (57,000). Crafter deliveries were up by 2.5 per cent to 36,100 vehicles (35,200).