Renault announces its third quarter results and pushes its numbers higher than ever with a €10bn revenue in Q3.

• Groupe Renault revenues came to €10,546 million for the quarter. This 13.0 per cent increase is mainly due to the European market’s continuing strong performance and the success of its range
• In the third quarter of 2016, Groupe Renault sales increased by 16 per cent to 721,741 vehicles, in a market which expanded by 5 per cent
• In Europe, the group’s registrations rose by 11.3 per cent in a market up 5.3 per cent. The success of the new models and the continuing strength of Clio IV, Captur and Dacia models helped the group to pick up an additional 0.5 points market share
• Outside of Europe, the group grew by 21.5 per cent with significant expansion in the Africa, Middle East and India Region (+85 per cent). Market share grew across all regions
• Groupe Renault confirms its guidance for full-year 2016

All regions continue to win market share in the third quarter

In a global automotive market up 5 per cent, Groupe Renault’s registrations rose by 16 per cent to 721,741 units. The group’s market share increased by 0.3 points to 3.3 per cent.

The group continued to enjoy traction from the renewal of its range in a buoyant European market (+5.3 per cent). Its registrations rose by 11.3 per cent, with market share gaining 0.5 points to 9.5 per cent.

Sales under the Renault brand grew by 8.1 per cent thanks to the success of new Mégane, Kadjar, Espace and Talisman models. Clio IV remains the second bestselling vehicle in Europe and Captur was again the leading crossover in its class. 

In Europe, in the electric vehicle segment, Renault’s market share came to 20.8 per cent in the third quarter, while ZOE posted a 22.4 per cent growth.

Sales under the Dacia brand increased by 22.1 per cent, due chiefly to Sandero Stepway and Duster.

In France, the group outperformed the market with a 3.9 per cent rise in registrations to 123,000 vehicles in the quarter. The group placed five vehicles in the Top 10 best-selling passenger cars at the end of September, with Clio IV coming in at number one and Captur leading its segment. Sandero remains the best-selling car to retail customers, at the end of September and for the third quarter.

Internationally, despite turbulence in Brazil, Russia and Algeria, group sales increased by 21.5 per cent in the third quarter. The group increased its market share in each region.

In the Africa, Middle East and India Region, the group’s registrations were up by 85 per cent as market share gained +2.7 points to 6.4 per cent.

In Iran, Groupe Renault confirmed the trend of the first half of 2016, with deliveries up 135.5 per cent thanks to the success of Logan and Sandero. The group’s market share increased by 2.9 points to 9.6 per cent.

In India, the market grew 17 per cent while Renault registrations were multiplied sevenfold thanks to the success of Kwid. 82,771 Kwids have been registered since the start of the year, including 34,350 in the third quarter alone.

In North Africa, Groupe Renault registrations rose by 13.6 per cent, in a market down 15 per cent. Market share increased by 10.6 points to reach a record 42.2 per cent. In Algeria, the market continues to be weakened by the current regulations setting import quotas. Within this context, the group consolidated its lead in the country with a market share of 63.1 per cent, a gain of 29.2 points. The three best-selling vehicles were Symbol and Sandero – both of which are manufactured at the Oran plant – and Logan.

In the Americas Region, the group’s market share increased by 0.2 points to 6.9 per cent.

The Renault brand continued to benefit fully from the recovery of the Argentinean market, with its registrations up 21.7 per cent in a market up 12.7 per cent. In Brazil, in an automotive market down sharply (-17 per cent), the group held up well, increasing its market share by 0.4 points to 7.8 per cent. The end-2015 launch of Oroch and the upcoming launch of Alaskan are enabling the group to expand its offering and position itself in the pick-up segment.

In Eurasia, the group’s market share improved by 0.7 points to 12.4 per cent. In Russia, where total industry registrations fell by 15.1 per cent, Renault held up well, registering a limited 4.7 per cent decline. Market share expanded 0.9 points to 8.3 per cent, due to the successful launch of Kaptur, for which more than 7,500 orders have been placed since its launch in June 2016. In Turkey, the group was impacted by the market decline, with sales down 23.1 per cent.

In Asia Pacific, the group’s registrations rose by 25.6 per cent in a market up 11.5 per cent. In South Korea, the group’s largest market in the region, Renault Samsung Motors posted 24.5 per cent growth, driven by the success of its new SM6 sedan and its QM6 crossover. Market share expanded 1.9 points to 6.3 per cent over the period. In China, pending the upcoming launch of Koleos, 10,686 Kadjar have been registered since the model’s introduction in March, including 6,032 in the third quarter alone. The sales network, which currently encompasses 125 dealerships, is expected to grow to 150 outlets by the end of the year.

THIRD-QUARTER REVENUES BY OPERATING SECTOR

In the third quarter of 2016, the group’s revenues came to €10,546 million, a 13.0 per cent increase compared to the previous year (+16.7 per cent increase at constant exchange rates).

Automotive revenues came to €9,989 million, up 13.5 per cent thanks to an increase in volume (+10.7 points) and pricing (+4.6 points). This last effect still benefits from price increases in emerging countries to offset currency declines, but as well from recent launches. Growth in Sales to Partners (+1.8 points) reflects the positive momentum of our CKD^[1] activities in Iran and China, as well as the increased production of vehicles to our partners in Europe. The euro’s gain against a number of currencies, including the Argentinean peso and the British pound, resulted in an unfavourable impact of 3.8 points. Product mix is negative this quarter (-2.5 points), mainly due to the impact of Kwid in the group’s sales.

Sales Financing (RCI Banque) reported revenues of €557 million, up 4.3 per cent compared with the third quarter of 2015. The number of new financing contracts rose by 10.0 per cent. Average performing assets increased by 17.5 per cent to €33.9 billion.

OUTLOOK FOR 2016

In 2016, the global market is expected to record growth around 1.7 per centcompared to 2015. The European market, as well as the French one, are now expected to increase by at least 5 per cent.

Outside Europe, the Brazilian and Russian markets are expected to decline: -15 per cent to -20 per cent for Brazil and -12 per cent for Russia. On the contrary, China (+4 per cent to +5 per cent) and India (+7 per cent to +9 per cent) should pursue their positive momentum.

Within this context, Groupe Renault (at constant scope of consolidation) confirms its full-year 2016 guidance:

• Increase group revenues (at constant exchange rates)
• Improve group operating margin
• Generate a positive Automotive operational free cash flow

Groupe Renault consolidated revenues

(in € million)	2016	2015	Change 2016/2015
1st Quarter
Automotive	9,942	8,829	+12.6%
Sales Financing	547	559	-2.1%
Total	10,489	9,388	+11.7%
2nd  Quarter
Automotive	14,136	12,236	+15.5%
Sales Financing	560	573	-2.3%
Total	14,696	12,809	+14.7%
3rd  Quarter
Automotive	9,989	8,802	+13.5%
Sales Financing	557	534	+4.3%
Total	10,546	9,336	+13.0%
9 months
Automotive	34,067	29,867	+14.1%
Sales Financing	1,664	1,666	-0.1%
Total	35,731	31,533	+13.3%

[1] CKD : Complete Knock Down

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 %