Renault breaks records with its friends!

Reporting "Asre Khodro", Renault performance achieves historic record, including sales, revenues, operating margin and net income

·  Registrations increased ۸.۵% to ۳.۷۶ million units.

·  Group revenues increased by ۱۴.۷% to €۵۸,۷۷۰ million (+۹.۴% excluding the AVTOVAZ consolidation effect ^(۱)).

·  Group operating margin stood at €۳,۸۵۴ million, representing ۶.۶% of revenues. Excluding AVTOVAZ, the operating margin increased by ۱۵.۸% to €۳,۷۹۹ million (۶.۸% of revenues, as compared with ۶.۴% in ۲۰۱۶).

·  Group operating income stands at €۳,۸۰۶ million (+۱۵.۹%) compared with €۳,۲۸۳ million.

·  Net income at €۵,۲۱۰ million (+۴۷.۱%) compared with €۳,۵۴۳ million. Excluding non-recurring items mentioned for Nissan, net income would have been €۴,۱۸۹m (+۱۸.۲%).

·  Positive Automotive operational free cash flow of €۹۴۵ million.

"۲۰۱۷ was another record year for Groupe Renault. The commercial and financial results are the outcome of our strategy deployed over the past years and the efforts of all the group's employees. With this performance, and the implementation of our new strategic plan "Drive The Future", we are confident in our ability to face the current and future challenges of the automotive industry", said Carlos Ghosn, Chairman and Chief Executive Officer of Renault.

Boulogne-Billancourt, ۰۲/۱۶/۲۰۱۸ – Group revenues came to €۵۸,۷۷۰ million (+۱۴.۷%), including €۲,۷۲۷ million for AVTOVAZ. Excluding the impact of the AVTOVAZ consolidation, Group revenues increased by ۹.۴% to €۵۶,۰۴۳ million (+۱۰.۱% at constant exchange rates).

1. AVTOVAZ profit and loss account consolidated by full integration from ۱^st of January ۲۰۱۷.

                              
Automotive excluding AVTOVAZ revenues amounted to €۵۳,۵۳۰ million (+۹.۳%) mainly due to volume growth (+۳.۳ points) and to the increase in sales to partners (+۲.۶ points). The latter reflects the start of production of Nissan Micra in France and the positive momentum of our CKD^[۱] activities for Iran and China. The price effect (+۱.۵ points) benefits mainly from price increases related to the renewal of the range. The other effects (+۲.۰ points) are partly the result of the positive performance of used vehicle and spare parts activities. The currency impact is negative (۰.۷ points), mainly due to the devaluation of the Argentinian peso, the Turkish lira and the British pound.

The Group's operating margin amounted to €۳,۸۵۴ million, and represents ۶.۶% of revenues.

The Automotive excluding AVTOVAZ operating margin was up €۳۶۳ million (+۱۵.۲%) to €۲,۷۴۹ million, representing ۵.۱% of revenues compared to ۴.۹% in ۲۰۱۶. This performance can be explained mainly by strong business growth (€۴۹۳ million positive impact) and Monozukuri^[۲] gains (€۶۶۳ million). The mix/price/enrichment effect did not benefit as much as in ۲۰۱۶ from price increases in emerging markets to offset currency devaluation and becomes negative at €۲۳۰ million. Raw materials had a negative effect of €۳۹۴ million, reflecting in large part the increase in steel prices. The negative currency impact (-€۳۰۰ million) was mainly due to the devaluation of the Argentinian peso, the British pound, and the US dollar.

The operating margin of AVTOVAZ (non-consolidated in ۲۰۱۶) amounted to €۵۵ million, i.e. ۲.۰% of its revenues.

Sales Finance contributed €۱,۰۵۰ million to the Group's operating margin, compared with €۸۹۶ million in ۲۰۱۶. This ۱۷.۱% increase is mainly due to the increase in average performing assets (+۱۸.۹%), reflecting the strong sales momentum of RCI Banque.

Other operating income and expenses amounted to -€۴۸ million (compared to +€۱ million in ۲۰۱۶).

The Group's operating income came to €۳,۸۰۶ million, compared to €۳,۲۸۳ million in ۲۰۱۶ (+۱۵.۹%).

Net financial income and expenses amounted to -€۵۰۴ million, compared to -€۳۲۳ million in ۲۰۱۶. This deterioration is mainly due to the consolidation of AVTOVAZ's net financial income and expenses for -€۱۱۲ million, as well as the negative impact of the value adjustment for redeemable shares (-€۱۲۰ million compared to -€۳ million in ۲۰۱۶).

The contribution of associated companies, primarily Nissan, came to €۲,۷۹۹ million, compared to €۱,۶۳۸ million in ۲۰۱۶. Nissan's contribution includes a non-recurring income of €۱,۰۲۱ million linked to the tax reform voted at the end of ۲۰۱۷ in the USA and to the sale of its interest in the equipment manufacturer Calsonic Kansei.

Current and deferred taxes showed a charge of €۸۹۱ million.

Net income amounted to €۵,۲۱۰ million (+۴۷.۱%) and net income, Group share, to €۵,۱۱۴ million (€۱۸.۸۷ per share, compared with €۱۲.۵۷ per share in ۲۰۱۶). Excluding non-recurring items mentioned for Nissan, net income, Group share, would have been €۴,۰۹۳ million (€۱۵.۱۰ per share).

Automotive operational free cash flow (including AVTOVAZ) was positive at €۹۴۵ million after taking into account a positive change in working capital requirements of €۵۵۰ million and an increase in investments of €۳۵۹ million.

At December ۳۱, ۲۰۱۷, total inventories (including at the independent network) represented ۵۷ days of sales, compared with ۵۹ days at end-December ۲۰۱۶.

A dividend of €۳.۵۵ per share, versus €۳.۱۵ last year, will be submitted for approval at the next Shareholders' Annual General Meeting.

OUTLOOK ۲۰۱۸

In ۲۰۱۸, the global market is expected to grow ۲.۵% vs ۲۰۱۷. The European market is expected to expand ۱% with an increase of ۱% for France.

At international level, Russia is expected to grow by close to ۱۰%. Brazil, as well as China, are expected to grow by more than ۵%, and India by ۶%.

The Group is aiming to: 

• Increase Group revenues (at constant exchange rates and perimeter)*
• Maintain Group operating margin above ۶.۰%*
• Generate a positive Automotive operational free cash flow

* Excluding IFRS ۱۵ impact

GROUPE RENAULT CONSOLIDATED RESULTS

1. AVTOVAZ profit and loss account consolidated by full integration from ۱^st of January ۲۰۱۷

ADDITIONAL INFORMATION
The consolidated financial statements of Groupe Renault at December ۳۱, ۲۰۱۷ were approved by the Board of Directors on February ۱۵, ۲۰۱۸. 
The Group's statutory auditors have conducted an audit of these financial statements and their report will be issued shortly. 
The earnings report, with a complete analysis of the financial results in ۲۰۱۷, is available at www.group.renault.com in the Finance section.

About Groupe Renault
Groupe Renault has been making cars since ۱۸۹۸. Today it is an international multi-brand group, selling close to ۳.۷۶ million vehicles in ۱۲۷ countries in ۲۰۱۷, with ۳۶ manufacturing sites, ۱۲,۷۰۰ points of sales and employing more than ۱۲۰,۰۰۰ people. To meet the major technological challenges of the future and continue its strategy of profitable growth, the Group is harnessing its international growth and the complementary fit of its five brands, Renault, Dacia and Renault Samsung Motors, Alpine and LADA, together with electric vehicles and the unique Alliance with Nissan and Mitsubishi. With a new team in Formula ۱ and a strong commitment to Formula E, Renault sees motorsport as a vector of innovation and brand awareness.