Groupe Renault Achieves 5% Operating Margin as Early as 2015

PARIS, February 12, 2016 /PRNewswire/ --

- Group revenues up 10.4% to EUR45,327 million 
- New registrations up 3.3% to 2.8 million units 
- Group operating profit at EUR2,320 million (+44.2%), representing 5.1% of revenues
versus 3.9% in 2014 
- Automotive operating profit increased by 74.4% at EUR1,496 million (3.5% of automotive
revenues versus 2.2% in 2014) 
- Group operating income at EUR2,121 million (+91.9%) 
- Associated companies' contribution amounted to EUR1,371 million (versus EUR1,362
million in 2014), including AvtoVAZ's negative contribution 
- Net income at EUR2,960 million (+48.1%), compared to EUR1,998 million in 2014 
- Positive Automotive operational free cash flow at EUR1,033 million 

"2015 results mark a decisive step towards the achievement of our plan "Drive the Change" targets. The involvement of all our staff and the success of our vehicles allowed us to reach our operating margin target sooner than planned. We must now achieve our revenue target while maintaining a margin in excess of 5%" said Carlos Ghosn, Chairman and Chief Executive Officer of Renault. 

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In 2015, Group revenues came to EUR45,327 million, up 10.4% from 2014. At constant exchange rates, revenues grew by 10.6%.

Automotive revenues amounted to EUR43,108 million, up 10.9% thanks to an increase in Group's brands volumes and sales to partners. The price effect was positive, primarily due to price increases in some emerging markets to offset currency devaluation.

The Group's operating profit amounted to EUR2,320 million (+44.2%), compared to EUR1,609 million in 2014, representing 5.1% of revenues (3.9% in 2014).

The Automotive operating profit was up EUR638 million (+74.4%) to EUR1,496 million, or 3.5% of revenues (versus 2.2% in 2014).

This performance is mainly attributable to volume growth (EUR480 million) and cost reduction (EUR527 million).

On the other hand, the mix/price/enrichment effect was negative by EUR379 million, mainly due to costs related to the life-cycle management of some ageing products, and to Euro 6 costs.

Finally, currency and raw materials impacts were slightly positive, respectively at EUR22 million and EUR61 million.

The contribution of Sales Financing to the Group's operating profit amounted to EUR824 million, compared to EUR751 million in 2014. This increase was due in particular to the rising contribution of services. The cost of risk improved to 0.33% of the average performing loans outstanding, compared to 0.43% in 2014.

Other Operating Income and Expenses Items were negative at EUR199 million (-EUR504 million in 2014), mainly due to restructuring costs related to the ongoing implementation of the competitiveness agreement in France and restructuring costs in some other countries.

The Group's operating income came to EUR2,121 million, compared to EUR1,105 million in 2014. The increase in operating profit and significant reduction in other expenses led to this improvement.

The contribution of associated companies came to EUR1,371 million, compared to EUR1,362 million in 2014.

Nissan's contribution amounted to EUR1,976 million in 2015 versus EUR1,559 million in 2014.

Regarding AvtoVAZ's contribution, the exceptionally weak economic situation in Russia (35% contraction in the auto market, 33% decrease of the annual average Ruble exchange rate, and rising interest rates), worse than our initial expectations, led Renault to book a EUR620 million loss explained by:

- Renault's share in the net loss booked by AvtoVAZ for EUR395 million (of which
EUR136 million from negative operating margin),
- An impairment loss on the value of the equity investment for EUR225 million, to adjust
it to the stock- market value of AvtoVAZ shares. As of December 31, 2015, Renault's
share in AvtoVAZ was valued at EUR91million.

The Renault group has entered into discussions with the other shareholders of the AvtoVAZ's controlling holding company, ARA BV, with an intention to recapitalize the company. This could lead to consolidation in Renault's accounts. As a result, the loan and receivables on AvtoVAZ would be capitalized and constitute part of the net equity investment on December 31, 2015.

Net income came to EUR2,960 million (+48.1%), and Group share totaled EUR2,823 million (EUR10.35 per share, compared to EUR6.92 per share in 2014, up 49.6%).

Automotive operational free cash flow was positive at EUR1,033 million, mainly due to the increase in profitability, as well as a positive change of EUR663 million in the working capital requirement.

A dividend of EUR2.40 per share, vs EUR1.90 last year, will be submitted for approval at the next Shareholder's Annual General Meeting.


In 2016, the global market is expected to record growth of 1% to 2% compared with 2015. The European market is expected to increase by 2%, with a 2% increase also for France.

At the International level, the Brazilian and Russian markets are expected to decline further, by 6% and 12% respectively. On the contrary, China (+4% to +5%) and India (+8%) should pursue their momentum.

Within this context, the Renault group (at constant scope of consolidation) is aiming to:

- increase group revenues (at constant exchange rates),
- improve group operating margin,
- generate a positive Automotive operational free cash flow.


EUR million 2015 2014 Change
Group revenues 45,327 41,055 +4,272
Operating profit 2,320 1,609 +711
% of revenues 5.1% 3.9% +1.2pts
Other operating income and expenses
items -199 -504 +305
Operating income 2,121 1,105 +1,016
Net financial income -221 -333 +112
Contribution from associated companies 1,371 1,362 +9
o/w : NISSAN 1,976 1,559 +417
AvtoVAZ -620 -182 -438
Current and deferred taxes -311 -136 -175
Net income 2,960 1,998 +962
Net income, group share 2,823 1,890 +933
Automotive operational free cash flow 1,033 1,083 -50


The consolidated financial statements of the Renault group at December 31, 2015 were approved by the Board of Directors on February 11, 2016.

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 2015, is available at in the Finance section. WEBSITE: Follow us : @Groupe_Renault


Groupe Renault

CONTACT: FOR MORE INFORMATION CONTACT:Renault, Press:Hélène Mazier+33-1-76-84-39-59Renault Press: +33-1-76-84-63-36

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