The Groupe Renault Plant in Tangiers has just produced its 1,000,000th car in 5 years.

• The Tangier plant has produced its millionth vehicle, a Dacia Lodgy.
• The landmark figure is reached in just over five years following the plant’s inauguration in 2012.
• The design of this efficient and eco-friendly plant, which is unrivalled in the automotive industry, is based on two pillars: zero CO2 emissions and zero industrial effluent discharges.

Groupe Renault is proud to celebrate the production of the millionth vehicle at the Renault-Nissan plant in Tangier: a five-seat, Azurite Blue Dacia Lodgy powered by a diesel engine and sold to a customer in Turkey. 

In all, 474,840 Sanderos, 320,078 Dokkers and 193,181 Lodgys have been manufactured in Tangier since the plant’s inauguration in 2012. In addition to covering the Moroccan market, the models built at the factory are exported to more than 73 destinations.

The inauguration of the Tangier plant’s first production line in February 2012, in the presence of His Majesty the King Mohammed VI and Carlos Ghosn, CEO, Groupe Renault, and the launch of a second line in 2013, marked a turning point in Morocco’s automotive sector. Indeed, it was the birth of the biggest car manufacturing plant south of the Mediterranean.

Today, the plant operates in three eight-hour shifts per day, six days a week, with an annual production capacity of 340,000 vehicles. The Renault-Nissan Tangier plant, a main driver of the Moroccan economy, supports Dacia brand growth by exporting the majority of its production. Half of all Dacias are produced in Morocco at either the Tangier plant or at the SOMACA facility in Casablanca.

Groupe Renault implanted in Morocco since 1928 and is the number one manufacturer in the Moroccan market with its two brands, Dacia and Renault. Four vehicles out of 10 sold in Morocco are sold by the Groupe Renault. The Renault plant in Casablanca (SOMACA) has produced Renault models since 1966, and Dacia model since 2005.

As Groupe Renault’s first plant designed to generate zero CO2 emissions and zero industrial effluent discharges, Tangier continues to set an example in the automottive industry today.

A ‘CO2 emissions-free’ design based on two pillars:

• More than 90 percent of needs fulfilled by renewable energies, notably through an innovative biomass heating plant (100,000 tonnes of CO2 emissions saved per year).
• Energy efficiency for optimised consumption performance (energy savings of 45 percent* in the paint shop).

The elimination of industrial effluent discharges through:

• 100 percent recycling of industrial wastewater. A true, closed-loop treatment plant that saves around 900 cubic metres of water per day.
• Controlled consumption of industrial water, through optimized processes. A saving of 70 percent compared to a conventional plant with equivalent capacity.

*Compared to the average across Groupe Renault plants

Groupe Renault moves forward with a massive increase in group revenues helped by a 10% growth in sales Units.

• Group revenues totaled €13,129 million in first quarter 2017 (€12,560 million excluding AVTOVAZ). The 25.2% increase (19.7% excluding AVTOVAZ) resulted primarily from an increase in the Group’s brand volume and sales to partners.
• First quarter sales rose by 15.8% to 873,678 vehicles (at constant scope, including Lada) in a market that grew 4%.
• Sales volumes and market share increased in all regions. The Renault and Dacia brands set new sales records for a first quarter.
• In Europe, Group registrations rose 10% in a market up 8%, driven by new models and the confirmation of the good results of Kadjar, Clio 4, Captur and Duster. 
• UK is Groupe Renault’s fifth biggest market globally in Q1 2017
• Outside Europe, the Group posted a 100% increase in sales in Asia-Pacific and a 31% increase in the Africa-Middle East-India Region.
• The Group is confirming its guidance for the year.

Sales Results: first quarter highlights

Groupe Renault (including Lada) worldwide registrations (Passenger Car + LCV) increased by 15.8% in a market up 4%. The Group’s share of the world market now stands at 3.8%, up 0.4 points on 2016. The Renault and Dacia brands set new sales records for a first quarter. Renault Samsung Motors sales increased by 56.3% and those of Lada by 7%.

In Europe, the Group’s share of the PC + LCV market increased 0.2 points to 10.1%. Sales grew 10% to 478,706 vehicles. 

The Renault brand continued to progress, with a 10.1% rise in registrations. Market share came out at 7.7%, up 0.1 points. Renault notably benefited from the complete renewal in 2016 of the Megane family car line-up. 

Electric vehicle sales increased by 46% to nearly 10,000 units (excluding Twizy) thanks to the success of New ZOE with an official range of 250 miles (NEDC). Sales of ZOE rose 57% and reinforced the Group’s leadership with a 28% share of the electric vehicle market. 

The Dacia brand posted a sales record for a first quarter with 112,457 registrations and a 2.4% share of the market. This 9.5% growth resulted from the performance of New Sandero – the facelifted model launched in late 2016.

In France, Groupe Renault benefited from the growth of the market with a 5.6% increase in registrations. The Group placed five vehicles in the top ten best-selling passenger cars (including the top-seller, Clio) and occupied the top four positions in the LCV top ten. The Dacia brand was buoyed by the success of Sandero (the leader in sales to retail customers).

In the UK, Groupe Renault has experienced unprecedented growth over the last five years. This growth has continued in 2017 with 39,498 Groupe Renault vehicles being sold in Q1 – up 3.8% on Q1 2016. The UK is Groupe Renault’s fifth biggest market worldwide.

Outside Europe, all the Regions increased their sales volumes and market share.

Groupe Renault strengthened its positions with the success of its range: Kwid in India, QM6 and SM6 in South Korea, Kaptur in Russia, Koleos in China, Megane Sedan in Turkey, and Captur in the Americas.

In Africa-Middle East-India, Group registrations rose 30.9% for a market share of 6% (up 1.4 points).

Sales in Iran rose sharply (up 161.5%) for a market share of 9%, up 4.9 points, thanks to the success of Tondar and Sandero.

In India, Renault continued to rank as the number-one European brand with a 3.6% share of the market and a 9.9% increase in sales. Kwid registrations reached nearly 27,000.

In North Africa, the Group took a 41.5% share of the market, up 8.3 points with a 13.4% increase in sales.

In Eurasia, registrations increased by 6.3% in a market down 0.5%. The market share of Groupe Renault, now including the Lada brand, rose 1.5 points to 24.1%, notably thanks to a strong momentum in Russia.

In a Russian market that grew slightly (+1%) for the first time in four years, the Group increased its sales by 9.2% (including Lada).

The Renault brand took a 8.1% share of the market, up 0.8 points. Registrations of Kaptur, launched in June 2016, came to over 6,000 for the quarter.

Lada sales volumes rose 8% for a market share of 19.1% (up 1.2 points) thanks to the success of the new Vesta and Xray models. 

With the consolidation of Lada sales volumes, Russia has become the Group’s number-two market.

In Turkey, sales increased 0.8% in a market down 7.4%. The Group posted a 19% share of the market, up 1.5 points. New Mégane Sedan, awarded “Car of the Year”, is off to a successful start with over 6,500 registrations.

In the Asia-Pacific Region, registrations were up 99.7% in a market up 4.6%. 

In China, Renault sold nearly 18,000 vehicles (compared with 3,400 in first-quarter 2016), including 10,000 New Koleos, launched at end-2016 and produced locally at a new plant in Wuhan.

Renault Samsung Motors posted a growth of 56.4% in a South Korean market up 0.9%, for a market share of 6.2%, up 2.2 points, driven by the success of the latest product launches (SM6 and QM6).

In the Americas region, sales increased 19% in a market up 9%, for a market share of 6.3%, up 0.5 points. The success of Sandero, Logan and Duster Oroch models was confirmed.

Groupe Renault continue to take full advantage of the recovery in the Argentinean market, with an 87.2% increase in registrations in a market up 42.8%. Market share rose by 3.1 points to 13.1%. Renault is fully benefitting from the local production of Sandero and Logan since end-2016. The market in Brazil has stabilized (down 1.2%) and the Group maintained its market share at 6.8%.

First quarter revenues by operating sector

Group revenues came to €13,129 million in first quarter 2017, up 25.2%. Excluding the impact of the consolidation of AVTOVAZ, Group revenues increased by 19.7% to €12,560 million (up 18.4% at constant exchange rates).

Automotive excluding AVTOVAZ revenues totaled €11,939 million, up 20.1%, mainly thanks to growth in sales volumes (up 9.2 points). The increase in sales to partners contributed 3.5 points to this growth. The performance reflects the strong momentum in our CKD1 activity in Iran and China and in the sales of vehicles assembled in Europe (notably with the start of Nissan Micra production). The price effect (+2.4 points) benefited primarily from recent launches. The currency effect was positive at 1.3 points, mainly owing to the strengthening of the Russian ruble and Brazilian real, despite the negative impact of the British pound.

Sales Financing (RCI Banque) posted revenues of €621 million in the first quarter, up 13.5% on 2016. The number of new financing contracts increased by 21.4%. Average performing assets rose 21.9% to €37.9 billion. 

Outlook for 2017

In 2017, the global market is expected to a record growth of 1.5% to 2.5% (versus 1.5% to 2% previously). The European market is still expected to increase by 2% this year, as is the French market. 

Outside Europe, the Russian market might increase by up to 5% (versus stable previously), whereas the Brazilian market should remain stable. China (+5%) and India (+8%) are expected to continue their growth momentum. 

With this context, and following the consolidation of AVTOVAZ, Groupe Renault is confirming its guidance:

• increase Group revenues, beyond the impact of AVTOVAZ (at constant exchange rates)*,
• increase Group operating profit in euros*,
• generate a positive automotive operational free cash flow.

* compared with 2016 Groupe Renault published results

Groupe Renault consolidated revenues

(€ million)	2017	2016	Change
			2017/2016
Q1
Automotive excluding AVTOVAZ	11,939	9,942	+20.1%
Sales Financing	621	547	+13.5%
AVTOVAZ	750	-	-
AVTOVAZ eliminations	-181	-	-
Total	13,129	10,489	+25.2%
Excluding the impact of AVTOVAZ consolidation	12,560	10,489	+19.7%

1CKD: Complete Knock Down

Group Renault proved its strong enough to significantly increase turnover and profits in the last year.

• Revenues up 13.1% to €51,243 million
• Registrations up 13.3% to 3.18 million units
• Group operating margin at €3,282 million, up 38.2%, representing 6.4% of revenues, versus 5.2%¹ in 2015
• Automotive operating margin at €2,386 million, up 54.3%
• Group operating income at €3,283 million (+50.9%)
• Contribution of associated companies at €1,638 million (versus 1,371 million in 2015)
• Net income at €3,543 million up 19.7% representing 6.9% of revenues
• Positive Automotive operational free cash flow of €1,107 million

"After very strong results in the first half of the year, Groupe Renault confirmed its performance by establishing a new record for the year. We outperformed the targets of the "Drive the Change" plan, launched in 2011, both in terms of growth and profits one year in advance. 

This success rewards the hard work of all Group employees." said Carlos Ghosn, Chairman and Chief Executive Officer of Renault.

In 2016, under the impetus of the Drive the Change plan, Groupe Renault reached a new sales record and becomes the number-one French automotive group worldwide, with 3.18 million vehicles registered. Volume and market shares were up in all regions.

In 2016, Group revenues were €51,243 million, up 13.1% from 2015. This represents growth of 17.0% at constant exchange rates.

Automotive revenues were €48,995 million, up 13.7% thanks to an increase in the Group’s brand volumes and sales to partners. The price effect was positive, due to the impact of new models and price increases in some emerging markets to offset currency devaluations.

The Group operating margin was €3,282 million (+38.2%), compared to €2,375 million¹ in 2015, representing 6.4% of revenues (5.2%¹ in 2015).

The Automotive operating margin wasup €840 million (+54.3%) to €2,386 million, or 4.9% of revenues (versus 3.6%¹ in 2015).

This performance is mainly explained by volume growth (€1,036 million).

Continuing efforts to reduce costs positively contributed for €184 million, taking into account a significant increase in R&D expenses.

The mix/price/enrichment effect was positive at €115 million, in particular due to the impact of our new models and price increases in some emerging countries. 

The currency impact was highly negative at -€702 million, reflecting firstly the depreciation of the British pound and the Argentinean peso.

Raw materials continued to have a very favourable effect of €331 million.

The company's G&A increased by €112 million.

Sales Financing contributed €896 million to the Group operating margin, compared with €829 million¹ in 2015, an increase of 8.1%.

Cost of risk (including country risk) has stabilized at a very good level of 0.31% of average performing assets (versus 0.33% at end-2015).

Other operating income and expenses are near-neutral at €1 million. This balance is primarily due to a profit of €325 million recorded following the first full consolidation of AVTOVAZ at December 31, 2016, and to provisions for restructuring, in particular in France, for a total amount of €283 million. No provision has been booked regarding the diesel investigation in France

Accordingly, the Group operating income came to €3,283 million, compared to €2,176 ¹ million in 2015.

Net financial income and expenses is a charge of €323 million, compared to -€221 million in 2015. This evolution came mostly from lower financial income notably in Argentina, and foreign exchange gains in 2015.

The contribution of associated companies came to €1,638 million, compared to €1,371 million in 2015.

Nissan’s contribution amounted to €1,741 million in 2016, versus €1,976 million in 2015

AVTOVAZ’s contribution for 2016 was negative at -€89 million, versus a loss of €620 million recorded in 2015.

This improvement stems mainly from a sharp reduction in impairment losses recorded in 2016 compared with 2015, and partly, from the company's improved operating performance. Furthermore, accounting for AVTOVAZ’s losses in the results of equity affiliates was capped in 2016 at the value of the investment in Renault’s books.

Net income came to €3,543 million (+19.7%) and net income, Group share, to €3,419 million (€12.57 per share, compared with €10.35 per share in 2015, up 21.4%).

Positive Automotive operational free cash flow came to €1,107 million, after taking into account a positive change in working capital requirements of €356 million over the period.

The net cash position, after AVTOVAZ consolidation, amounted to €2,720 million (€3,925 million before the consolidation. A dividend of €3.15 per share, versus €2.40 last year, will be submitted for approval at the next Shareholders' Annual General Meeting.

AVTOVAZ

As the first full AVTOVAZ’s consolidation occurred on the 28th of December 2016, the income statement was not consolidated. On the other hand, the company's balance sheet was consolidated in our financial statements. The consolidation impact on Groupe Renault’s net financial position was a negative €1,205 million, and a preliminary goodwill of €1,025 million was accounted for. As of 31st of December 2016, AVTOVAZ market value was higher than the carrying value of AVTOVAZ net assets including goodwill in Renault’s financials. 

During 2017, some other capital restructurings are contemplated in order to restore AVTOVAZ’s equity.

AVTOVAZ’s management communicated its detailed recovery plan on January 16^th 2017.The main objectives of this plan is to reach positive operating profit (before impairment and restructuring costs) in 2018 and achieve profitable growth beyond. 

OUTLOOK 2017

In 2017, the global market is expected to record growth of 1.5% to 2%. The European and French markets are expected to increase by 2%.

At the International level, the Brazilian and Russian markets are expected to be stable. On the other hand, China (+5%) and India (+8%) should continue their momentum.

Within this context, and including AVTOVAZ, Groupe Renault is aiming to:

• increase group revenues, beyond the impact of AVTOVAZ (at constant exchange rates)*,
• increase group operating profit in euros*,
• generate a positive automotive operational free cash flow.

(*) compared with 2016 Groupe Renault published results

MIDTERM PLAN 2022

Groupe Renault will present in 2017 a new strategic plan 2017-2022, with an ambition to reach €70 billion (at constant exchange rates) in revenues and 7% operating margin at the end of the plan, while maintaining a positive operational automotive free cash flow every year.

⁽[1]⁾Taxes, which satisfy the definition of tax based on a taxable profit according to IAS 12 "Income Tax" and which were previously presented as operating expenses, have been reclassified under current taxes from 2016 and conversely for taxes not satisfying the definition of tax based on a taxable profit income. The presentation of the financial statements for the year 2015 was restated accordingly.

Renault CONSOLIDATED RESULTS

€ million	2016	2015(1)	Change
Group revenues	51,243	45,327	+5,916
Operating profit % of revenues	3,282 6.4 %	2,375 5.2 %	+907 +1.2pts
Other operating income and expenses items	1	-199	+200
Operating income	3,283	2,176	+1,107
Net financial income	-323	-221	-102
Contribution from associated companies	1,638	1,371	+267
o/w : NISSAN	1,741	1,976	-235
AVTOVAZ	-89	-620	+531
Current and deferred taxes	- 1,055	-366	-689
Net income	3,543	2,960	+583
Net income, Group share	3,419	2,823	+596
Automotive operational free cash flow	1,107	1,051	+56

⁽[1]⁾Taxes, which satisfy the definition of tax based on a taxable profit according to IAS 12 "Income Tax" and which were previously presented as operating expenses, have been reclassified under current taxes from 2016 and conversely for taxes not satisfying the definition of tax based on a taxable profit income. The presentation of the financial statements for the year 2015 was restated accordingly.