Renault Group announces full year results, with lots of new metal coming it can only get better.

Renault meets its full-year guidance 

• New registrations up 3.2% to 2.7 million units • Group revenues: €41,055 million (+0.3%). Excluding foreign exchange rate effect, +3.1% 
• Group operating profit: €1,609 million, or 3.9% of revenues, compared to €1,242 million and 3.0% in 2013 
• Automotive operating profit: €858 million, compared to €495 million in 2013 (2.2% vs 1.3%) 
• Group operating income: €1,105 million versus minus €34 million 
• Net income: €1,998 million versus €695 million in 2013 • Positive Automotive operational free cash flow: €1,083 million 

“We met all the objectives announced for 2014. This milestone positions us on track to achieve our strategic plan, "Renault Drive the Change". 2015 should allow us to take a new step forward, thanks to an unprecedented product offensive in the history of Renault”, said Carlos Ghosn, Chairman and Chief Executive Officer of Renault. 

In 2014, Group revenues came to €41,055 million, an increase of 0.3% compared to 2013. At constant exchange rates, revenues grew by 3.1%. The contribution of the Automotive division to revenues amounted to €38,874 million, up 0.3% vs 2013. 

The Group offset negative currency variations by increasing prices outside Europe and by the strong growth of sales to partners. The Group's operating profit reached €1,609 million, compared to €1,242 million in 2013 (3.9% of revenues vs 3.0% in 2013). The Automotive operating profit rose by €363 million to €858 million, representing 2.2% of revenues. 

This performance results from cost reductions and from growth in sales while unfavorable foreign exchange rates and the enrichment of some end-of-life models impacted negatively. Sales Financing contributed to €751 million to Group operating profit compared to €747 million in 2013. The drop in net banking income was offset by an increase in average loans outstanding and by growth in services. 

The cost of risk remained stable at 0.43%. Other operating income and expense items were negative by €504 million, mostly due to restructuring costs of €305 million and the impairment of assets for €153 million. Group operating income came to €1,105 million compared to -€34 million in 2013. This improvement results from the increase in operating profit and the reduction in other operating expenses of €772 million. 

 The contribution of associated companies, mainly Nissan, was €1,362 million, compared to €1,444 million in 2013, including the negative contribution of AVTOVAZ for -€182 million. Net income came to €1,998 million and net income, Group share, to €1,890 million (€6.92 per share compared to €2.15 per share in 2013). 

Automotive operational free cash flow was positive at €1,083 million, due to the increase in profitability, as well as a positive change of €596 million in the working capital requirement over the period. A dividend of €1.90 per share, vs €1.72 last year, will be submitted for approval at the next Shareholders’ Annual General Meeting. 

2015 OUTLOOK 

In spite of the uncertainties surrounding numerous economies, global car demand should continue to grow this year (+2 %). The European market should also show a slight positive growth (+2 %) while we continue to expect high volatility in our main emerging markets: 

In this context, Renault Group aims to: 

 - increase further its registrations and revenues (at constant exchange rates),

 - continue to improve the Group’s operating margin and that of the Automotive division, 

 - generate positive Automotive operating free cash flow. 

RENAULT CONSOLIDATED RESULTS 

ADDITIONAL INFORMATION The consolidated financial statements of the Renault group at December 31, 2014 were approved by the Board of Directors on February 11, 2015. The Group’s statutory auditors have conducted a limited review of these financial statements and their report will be issued shortly. The earnings report, with a complete analysis of the financial results in 2014, is available at www.renault.com in the Finance section. 

Ferrari continues record breaking sales and profits

• Revenues: 2.433 billion euro (+ 8%)
• Cars delivered: 7,318 (+ 4.5%)
• Trading profit: 350 million euro (+ 12.1%)
• Net profit: 244 million euro (+17.8%)
• Industrial net cash position: over one billion euro
• Record sales in USA, China, Germany and Great Britain
• Operating margin on Brand-related activities up by 40%

Maranello, February 18^th 2013 – In 2012 Ferrari posted record results in its best ever trading period in the company’s 66-year history. This fact was confirmed when the Ferrari Board of Directors met today under the chairmanship of Luca di Montezemolo to examine the company’s end-of-year results.

All the main economic indicators exceeded the previous records set in 2008 despite a much poorer world economic backdrop.

A total of 7,318 road cars were delivered to the dealership network in 2012 (+4.5 per cent on 2011), whilerevenues of 2.433 billion euro (up 8 per cent) were recorded.  

Trading profit jumped by 12.1 per cent to 350 million euro, with net profits coming in at just under 244 million euro (+17.8 per cent) and ROS (Return on Sales) of 14.4 per cent which is very much on a par with the top companies in the luxury sector.

The company made significant investments over the last 12 months which, including Research and Development, amounted to 324.3 million euro (up from 280 million euro in 2011). This investment was completely self-financed thanks to the company’s consistent cash flow generation, a fact confirmed by itsindustrial net cash position for 2012 of over one billion euro.  

“We are all enormously proud of ending the year with these kinds of results despite the unfavourable economic backdrop in many European nations, and the distinctly hostile one in Italy,” declared Chairman Luca di Montezemolo. “The credit for this goes to the men and women in Ferrari, the strength of the brand, a very complete and highly innovative range, and our gradual expansion into automotive markets worldwide.”  

The 2012 results are in line with the company’s geographical sales distribution plan which is divided into equal parts between America, Asia and Europe, including the Middle East. To further boost its presence on the various markets, Ferrari has reorganised its commercial network so that it now has four coordination centres: America, Europe and the Middle East, Greater China, Far East.  

Ferrari enjoyed record sales in the USA in 2012 with deliveries there exceeding the 2,000-car mark for the first time (2,058), an increase of 14.6 per cent (Canada included).

Europe performed very impressively with deliveries in Great Britain up by 20.4 per cent (673 cars), and by 17.4 per cent in Switzerland (357). Germany (750 cars, +8.2 per cent) confirmed its position as Ferrari’s most important market in Europe, while other main Countries in the area ended the year in line with 2011.

Results from Italy couldn’t have been more different: despite performing better than the average in a sector that registered a 60 per cent drop in sales in 2012, Ferrari ended the year with 318 cars delivered to dealerships, a 46 per cent decrease on the 2011 figure.

The positive trend in the Middle East and Africa continued with an increase of 4.5 per cent with deliveries of cars rising to 556.  

Greater China (People’s Republic of China, Hong Kong and Taiwan) retained its position as the second largest market with a record 784 cars delivered (+4 per cent), just under 500 of which went to China. Japan, a long-established Ferrari market, made a significant return to double-figure growth (+ 14.4 per cent), with 302 cars delivered.

The results delivered by brand-related activities (Retail, Licensing and e-commerce), which underwent reorganisation in 2012, were excellent too, showing a 40 per cent increase in operating margin to over 50 million euro. 

Retail results were up 5 per cent, thanks also to a new interior design concept which will be extended to the 50 Ferrari Stores around the world.

Growth was impressive too in licensing (+22 per cent), while e-commerce revenues were in excess of seven million euro (+31 per cent).  Ferrari enjoys a particularly extensive presence on the various web channels and social networking sites, having recently passed the 10 million fan mark on Facebook.  

On the sponsorship front, the Scuderia welcomed its first Chinese partner, Weichai Power, whose parent company, the Weichai Group, is one of China’s largest conglomerates. Ferrari also strengthened its links with other companies that lead the world in their respective sectors, including Hublot, Kaspersky Lab and TNT.