Business outcomes

• 3 complementary and rising manufacturers:
  • Worldwide Group’s gross sales up 9% versus 2022 to succeed in 2, 235,000 items. In Europe^[3], gross sales had been up 18.6% in a market up 13.9%.
  • Renault is the best-selling French model on the earth, 2^nd place within the European PC+LCV^[4] market, chief within the European LCV^[5] market, main place in France in PC and LCV. Clio turned the best-selling automobile in France in 2023, all gross sales channels mixed and is #3 in Europe.
  • Dacia ranked 11^th on the European PC + LCV market (+ 4 locations). Within the European PC market, Dacia joins the highest 10. The model confirms its 2^nd place on the retail automobile market in Europe^[6], its core market.
  • Alpine gross sales had been up 22.1% versus 2022. The Alpine A110 maintains its place because the main two-seater sports activities coupé offered in Europe in 2023.
• A industrial coverage targeted on worth and already benefitting from the start of the unprecedented product offensive:
  • Renault model gross sales in C-segment and above in Europe improved by 26% in comparison with 2022, due to the success of Arkana, Austral, Espace E-TECH Hybrid and Megane E-TECH Electrical. C & above segments represented 42% (+ 3 factors vs 2022) of Renault model gross sales combine in Europe in 2023.
  • 65% of Group gross sales had been on the retail channel within the Group’s 5 predominant international locations in Europe^[7]. Renault model generated greater than half of its gross sales within the retail channel.
• A profitable electrification offensive:
  • Renault model took the three^rd place in Europe for electrified^[8] passenger automobile with gross sales up 19.7% versus 2022. They accounted for 39.7% of the model’s PC gross sales in Europe (of which 11.3% EV). This pattern was supported by a 62% improve in hybrid automobile (HEV) gross sales. Austral, Clio and Captur are among the many high 10 best-selling hybrid autos in Europe.
  • Dacia already began its easy electrification technique: Dacia Jogger Hybrid 140, on sale since January 2023, represents greater than 25% of Jogger orders and Dacia Spring, 100% electrical, held on to its place within the top-three European⁴ retail electrical autos gross sales.
  • In 2023, Renault Group confirms it achieved its CAFE^[9] targets (passenger vehicles and light-weight industrial autos) in Europe.

Monetary outcomes

The consolidated monetary statements of Renault Group and the corporate accounts of Renault SA at December 31, 2023 had been accredited by the Board of Administrators on February 14, 2024 below the chairmanship of Jean-Dominique Senard.

Group income reached €52,376 million, up 13.1% in comparison with 2022. At fixed trade charges^[10], it elevated by 17.9%.

Automotive income stood at €48,150 million, up 11.7% in comparison with 2022. It consists of 4.8 factors of unfavorable trade charges impact (€2,068 million) primarily associated to the Argentinean peso and to a lesser extent to the Turkish lira devaluation. At fixed trade charges¹, it elevated by 16.5%.

• Quantity impact stood at +4.0 factors due to the industrial success of autos.
  The 9% improve in registrations interprets into 4 factors of quantity impact because of the decrease restocking throughout the dealership community in comparison with the tip of 2022. This enchancment on whole inventories is healthier than our goal of being under 500,000 items on the finish of the 12 months.
• The worth impact, constructive by +7.4 factors, continued to be very robust and displays the Group’s industrial coverage targeted on worth over quantity, autos enrichment in addition to value will increase to offset forex impact.
• The geographic combine impacted positively by +1.7 factors due to the robust gross sales efficiency in Europe.
• The product combine impact stood at +1.0 level primarily due to the success of Austral, Espace E-TECH Hybrid and LCVs. The success of Clio had a unfavorable affect on this merchandise as its common promoting value is under the Group’s common promoting value.
• Gross sales to companions had a constructive impact of two.1 factors, supported by the manufacturing of the ASX (because the starting of the 12 months 2023) and Colt (since October 2023) for Mitsubishi Motors in addition to a dynamic LCV enterprise with Nissan, Renault Vehicles and Mercedes-Benz.

The Group posted a document working margin at 7.9% of income versus 5.5% in 2022, up 2.4 factors. It continued to enhance sequentially from 6.3% in 2022 H2 to 7.6% in 2023 H1 and eight.1% in 2023 H2. It stood at €4,117 million, up €1,547 million versus 2022.

Group working margin consists of, because the starting of November 2022 and till the deconsolidation of Horse, a constructive non-cash impact of the cessation of amortization for these property held on the market. It accounted for €482 million in 2023 (€275 million in 2023 H1 and €207 million in 2023 H2). Yr‑on‑12 months, it represented a constructive impact of €398 million.

Adjusted from this constructive affect, the Group working margin would have been 6.9% in 2023 with 6.6% in 2023 H1 and seven.3% in 2023 H2.

Automotive operating margin additionally reached a document degree at 6.3% of Automotive income in 2023, up 3.0 factors versus 2022. It stood at a document €3,051 million in 2023 versus €1,402 million in 2022.

• Automotive working margin was strongly impacted by a unfavorable foreign exchange of -€595 million primarily because of the Argentinean peso.
• The constructive quantity impact at +€621 million and the constructive combine/value/enrichment impact of +€2,908 million illustrated the success of autos and of the industrial coverage targeted on worth. The constructive combine/value/enrichment impact greater than compensated the rise in prices. This improve amounted to -€1,630 million and is especially defined by the affect of the carry-over of uncooked supplies and power value will increase, logistics and labor prices.
• SG&A elevated by €389 million, primarily pushed by advertising and marketing prices due the continued product offensive and wage will increase.
• The worth reevaluations in Argentina, computed within the Renault Group’s subscription plan within the nation, defined a lot of the +€376 million impact within the “others” merchandise.

The contribution of Mobilize Monetary Companies (Gross sales Financing) to the Group’s working margin reached €1,101 million versus €1,198 million in 2022^[11] because of non-recurring impacts of the swaps valuation linked to the rate of interest improve in Europe since starting 2022. Excluding this one-off, Mobilize Monetary Companies would have posted an working margin up 8% in comparison with 2022. This evolution was primarily pushed by the rise in new financings and decrease price of danger.

Different working earnings and bills had been unfavorable at -€1,632 million (versus -€379 million in 2022). This quantity was primarily pushed by -€0.9 billion of capital loss on the disposal of Nissan shares made in December 2023, -€0.5 billion of impairment on autos developments and particular manufacturing property and by restructuring prices. Capital achieve on asset disposals amounted to +€0.3 billion, associated to the sale of land in Boulogne-Billancourt, of a number of industrial subsidiaries of the Group and of branches of Renault Retail Group.

After bearing in mind different working earnings and bills, the Group’s working earnings stood at €2,485 million versus € 2,191 million in 2022 (+€294 million versus 2022).

Internet monetary earnings and bills amounted to -€527 million in comparison with -€486 million in 2022. The rise is defined by the affect of hyperinflation in Argentina partially offset by the constructive affect of the rise in rates of interest on the web money place.

The contribution of related firms amounted to €880 million in comparison with €423 million in 2022. This included €797 million associated to Nissan’s contribution.

Present and deferred taxes represented a cost of -€523 million, secure in comparison with 2022 (-€524 million in 2022). The rise within the pre-tax earnings, associated to the advance in efficiency, was offset by the evolution of deferred taxes.

Thus, internet earnings stood at €2,315 million, up €3,031 million in comparison with 2022 and internet earnings, Group share, was €2,198 million (or €8.11 per share). As a reminder, in 2022, internet earnings from discontinued operations amounted to -€2,320 million because of the non-cash adjustment associated to the disposals of the Russian industrial actions.

The money circulate of the Automotive enterprise was at document degree in 2023 and reached €5,485 million, up €667 million versus 2022. It consists of €600 million of Mobilize Monetary Companies dividend versus €800 million in 2022. This money circulate considerably greater than lined the tangible and intangible investments earlier than asset disposals which amounted to €2.9 billion (€2.6 billion internet of disposals) and the restructuring bills (€0.5 billion).

Excluding the affect of asset disposals, the Group’s internet CAPEX and R&D stood at €3,817 million in 2023, representing 7.3% of income in comparison with 7.4% of income in 2022. It amounted to six.7% together with asset disposals.

Free money circulate^[12] reached a document degree at €3,024 million. Excluding Mobilize Monetary Companies dividend, it stood at €2,424 million versus €1,319 million in 2022, up €1,105 million. The change in working capital requirement was constructive at €637 million and is especially associated to the lower in inventories.

As of December 31, 2023, whole inventories of latest autos (together with the impartial seller community) represented 484,000 autos, higher than our goal, and in comparison with 569,000 autos on the finish of June 2023 and 480,000 autos on the finish of December 2022.

The Automotive internet monetary place stood at €3,724 million on December 31, 2023 in comparison with €549 million on December 31, 2022, an enchancment of €3,175 million. In 2023, it included the next operations:

• €764 million equivalent to the sale of 211,000,000 Nissan shares held in a French belief, carried out as per new Alliance Settlement;
• €200 million representing a 24% fairness stake funding in Alpine Racing Ltd (United Kingdom) by Otro Capital, RedBird Capital Companions and Most Effort Investments.

The mortgage of a banking pool benefiting from the assure of the French State (PGE) is now totally reimbursed (one 12 months prematurely).

Liquidity reserve on the finish of December 2023 stood at a excessive degree at €17.8 billion, up €0.1 billion in comparison with December 31, 2022.

Capital allocation

Renault Group intends to share worth creation with its stakeholders by means of an worker shareholding plan and thru its dividend.

Renaulution worker shareplan

Since 2022, Renault Group is taking steps to extend the share of staff in its capital to succeed in 10% by 2030.

In 2023, greater than 95,000 staff benefitted from 8 free shares. Amongst them, practically 38,000 additionally subscribed to shares at a preferential value of 26.28 euros per share. In whole, with practically 2.1 million further shares held by staff, this second Renaulution Shareplan operation represented 0.7% of Renault Group’s capital.

Workers maintain 5.07% of the capital at December 31, 2023.

Dividend

The proposed dividend for the monetary 12 months 2023 is €1.85 per share, up €1.60 per share versus final 12 months. The payout ratio is 17.5% of Group consolidated internet earnings – father or mother share^[13]. It could be paid totally in money and can be submitted for approval on the Annual Common Assembly on Could 16, 2024. The ex-dividend date is scheduled on Could 22, 2024 and the cost date on Could 24, 2024.

As introduced throughout its Capital Market Day, the dividend coverage will step by step develop, in a disciplined method, as much as 35% payout ratio of Group consolidated internet earnings – father or mother share, within the mid-term. To take action, the Group should obtain its first precedence: return to an “funding grade” ranking.

2024 Outlook

2024 product offensive and the acceleration of price discount would be the drivers of operational efficiency and robust money era:

• Product launches: 2024 can be a historic 12 months with 10 new autos launches^[14]
  • Renault model: 7 new autos launches^[15]:
    • 2 new all-electric autos with Scenic E-TECH electrical, providing greater than 600 km of WLTP vary, and Renault 5 E-TECH electrical – all-electric pop icon
    • 2 new hybrid autos in Europe, together with Rafale E-TECH
    • New Renault Grasp (ICE and all-electric variations)
    • 2 new autos in markets exterior Europe: Kardian and a Renault Korea Motors automobile
    • In 2024, the Renault model will proceed to roll out the “Worldwide Sport Plan 2027”. After Brazil and Turkey in 2023, this 12 months can be highlighted by the deployment of the plan in Morocco and South Korea
  • Dacia:
    • New Dacia Duster on sale beginning March 2024
    • The brand new 100% electrical Dacia Spring, with an all-new design, each exterior and inside, on sale in summer season 2024
    • The model may even reveal Bigster, a C-segment automobile, on the finish of 2024
  • Alpine:
    • Alpine will proceed its worldwide deployment with its arrival in Turkey in H1 2024
    • 2024 will mark Alpine’s shift into electrical. The model will current its electrical scorching hatch, the Alpine A290, its first all-electric automobile
• Quicker price discounts and time-to-market:
  • Discount of manufacturing prices per automobile by 30% for thermal autos and 50% for electrical autos between now and 2027, due to the Industrial Metaverse.
  • This manufacturing price discount may even gasoline Ampere goal to scale back variable prices between the 1^st and the two^nd era of C-segment electrical autos by 40% by 2027+, following a steady trajectory.

In 2024, European and Latin America automotive markets are anticipated to be secure, and Eurasia is predicted to say no by 11%.

On this context, Renault Group is aiming to realize in 2024:

• A Group working margin ≥7.5%
• A free money circulate ≥€2.5bn

Renault Group’s consolidated outcomes

Horse accounting impacts

No affect from Horse on free money circulate for 2022 and 2023.

Further data

The consolidated monetary statements of Renault Group and the corporate accounts of Renault SA at December 31, 2023 had been accredited by the Board of Administrators on February 14, 2024.

The Group’s statutory auditors have performed an audit of those monetary statements and their report can be issued shortly.

The earnings report, with a whole evaluation of 2023 monetary outcomes together with condensed monetary accounts, is offered at www.renaultgroup.com within the “Finance” part.

2023 Monetary Outcomes Convention

Hyperlink to observe the convention at 8am CET on February 15^th, and out there in replay: occasions.renaultgroup.com/en/

^[1] The 2022 figures embrace restatements following the primary utility of IFRS 17 “Insurance coverage contracts” in 2023.
^[2] 10 new autos launches in 2024 with out Renault Duster (exterior Europe) and Captur facelift. 
^[3]  ACEA European Scope. 
^[4] PC+LCV: passenger automobile + mild industrial automobile.
^[5] Excluding pickup vehicles. 
^[6] Austria, Belgium, Croatia, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom.
^[7] France, Germany, Spain, Italy, United Kingdom.
^[8] Consists of EV, Hybrid (HEV) and Plug-In Hybrid (PHEV), excludes Delicate-Hybrid (MHEV).
^[9]  The official outcomes can be launched by the European Fee within the coming months. CAFE = Company Common Gasoline Economic system. 
^[10] So as to analyze the variation in consolidated income at fixed trade charges, Renault Group recalculates the income for the present interval by making use of common trade charges of the earlier interval.
^[11] The 2022 figures embrace restatements following the primary utility of IFRS 17 “Insurance coverage contracts” in 2023.
^[12] Free money circulate: money circulate after curiosity and taxes (excluding dividends acquired from listed firms) much less tangible and intangible investments internet of disposals +/- change in working capital requirement.
^[13] Excluding €880m of capital loss on Nissan shares disposal.  
^[14] 10 new autos launches in 2024 with out Renault Duster (exterior Europe) and Captur facelift. 
^[15] 7 new autos launches for Renault Model in 2024 with out Renault Duster (exterior Europe) and Captur facelift. 

SOURCE: Renault Group