Renault: H1 2015 sales results

• In the first half of the year, Renault Group registrations increased slightly at nearly 1.4 million vehicles.
• In Europe, in a market up 8.5%, the Group’s registrations increased by 9.3% and brought the Group’s market share to more than 10% through the successful renewal of the range.
• This strong European performance offsets the decline in depressed markets, in particular in Russia and Latin America.
• In the second half of the year, the Company can rely on the various launches over the year to continue its sales development.

In the first half of 2015, in a global automotive market up 1.4%, Renault Group registrations also increased slightly at 1,375,863 units. The Group’s business confirms the trend observed over several months: dynamism in Europe and disparate growth abroad, with the one offsetting the other.

In Europe, Renault Group registrations continue to grow faster than the market. They increased by 9.3% in a market up 8.5% (849,088 registered vehicles). Group market share increased in most European countries, reaching 10.2% (PC+LCV) thanks in particular to the performance of South Europe.

The Renault brand showed strong performance: the brand’s registrations increased by 10.6% to 643,928 units, boosted by Clio, Captur, Twingo, Trafic and Master.

Outside of Europe, the turmoil in certain emerging markets continues to undermine economic activity, in particular in Russia and Brazil, where Group registrations dropped in line with the market (down 40.8% and 18.7%). However, the situation is much more positive in Turkey, Romania and Algeria, where Group registrations increased by 35.3%, 23.9% and 8.6% respectively.

“In the first half of 2015, we strengthened our position in Europe significantly and softened the fall in the Russian and Brazilian markets. These results show that we are less dependent of specific markets and that we know how to seize the opportunities that present themselves”, said Jérôme Stoll, member of the Executive Committee, Chief Performance Officer and Group Sales and Marketing Director.

Europe

In Europe, the Renault Group took full advantage of its new products’ success and the market’s recovery: registrations increased by 9.3%, i.e. 849,088 vehicles in the first half. The Group sold more than one out of ten vehicles registered in Europe.

The Renault brand stands out particularly well for its strong sales momentum, with 643,928 vehicles registered in the first half of the year (+10.6%). After Nissan, Renault is the second strongest growing brand with market share (PC+LCV) of 7.8% (+0.14 point).

• Clio is the 2^nd most registered model in Europe[1], and is by far the most sold vehicle in France.
• Captur is still the most registered urban crossover in Europe¹.

Despite a high basis for comparison in H1 2014 following the launch of Duster Phase 2, the Dacia brand recorded growth of 5.3% with 205,160 vehicles registered in the first six months of 2015. This year, the brand is celebrating the 10^th anniversary of its launch in Europe and reaches the milestone of 2 million Dacia vehicles sold in the region.

Among the Renault Group’s major European markets, Spain and Italy experienced the strongest growth (30.9% and 24.4% increase in registrations, respectively), thereby ranking 5th and 3rd in the Group’s markets (see table). The Group recorded its strongest performance in 30 years in Italy, where it holds 9.2% market share.

In a European electric vehicle market that continues to show strong growth (+52%¹), Renault’s volume increased by 72%¹ compared with 2014. In particular, Renault recorded very significant growth in the United Kingdom and in Norway. ZOE continues to spearhead the Group’s growth, with volumes that have more than doubled in the beginning of this year. Renault aims to remain the leader in EV sales in Europe in 2015.

In France, the Group’s primary market, registrations increased by 3.7% with a total of 325,365 vehicles. The Renault brand’s penetration rate in France reached 22.3%, up 0.23 point. Clio, Twingo, Captur and Scenic are leaders in their segment. The Group gained 1.2 points in the French light commercial vehicle market, and remains a leader with 32.5% market share. Kangoo, Trafic and Master dominate their segment.

INTERNATIONAL

In the Eurasia region, the Russian market, struck by the economic crisis, dropped 37.1% in the half-year. In this highly competitive market, the Group focused on protecting its margins and recorded market share of 7.4%, down 0.5 point.

The rebound of the Turkish market, where Group sales increased by 35.3% (67,856 units) for market share of 15.8%, and the strong performance recorded in Romania (+24% with market share of nearly 42%), enable the entire Eurasia region to limit the decline in its sales to -10.2%.

In the Americas region, registrations have fallen to 20.6%, i.e. 163,223 vehicles. Registrations in Brazil dropped 18.7% to 89,527 units, but the Group managed to increase its market share in excess of 7.0%.

In Argentina, faced with a challenging local financial market, Renault decided to limit its exposure to the peso, thereby limiting the volume of its imports. Its registrations dropped 39.8% (31,808 units) in a market which declined by 17.5% over the half-year.

The Group maintained a strong position in Colombia and recorded 17.6% market share, up 1 point compared with H1 2014.

In the Africa Middle East India region, Group registrations increased slightly (+0.7%) to 150,735 vehicles for market share of 3.6%. With the Renault and Dacia brands, the Group demonstrated its leadership in North Africa, with record market share in Algeria (31.8%, +7.2 points) and in Morocco (38.2%, +0.9 point). In Algeria, the Renault Symbol produced in the Oued Tlelat plant in the Oran region, launched in end-2014, became the best-selling car on the market in May.

In India, in a market up 6.2%, sales are down 3.2% (23,346 vehicles) but have increased since the launch of Lodgy last April. The arrival of the Kwid should improve this dynamic in the second half of the year.

In the Asia Pacific region, registrations dropped 5.6% (53,621 vehicles), despite the growth of Renault Samsung in Korea (+0.8%, 37,260 sales). In China, the Group recorded a sharp decline in sales (-45.5%) pending the commercial launch of a new vehicle produced locally in early 2016.

BUSINESS OUTLOOK IN 2015

In the second half of the year, the European automotive market should remain buoyant and continue to offset the decline in our major emerging countries. We expect growth in Europe at a minimum annual rate of 5%, of which at least 2% for France. The global automotive market should record growth of 1%, versus the previously projected 2%, due in particular to the slowdown in the Chinese market and the crisis in Latin America and in Russia.

The Group should benefit from the effect of recent launches, primarily Espace and Kadjar, which were very well received by the market, and of Lodgy and Kwid in India.

 Against this background, the Group confirms its annual targets:

• Continued growth of its global volumes;
• Strengthening of the Renault brand in Europe;
• Improved positions in its major emerging markets.

“After three years of steady growth, we reiterate our ambition to reach a new milestone this year. The strengthening of our positions in Europe, combined with the many products launched in 2015, confirm our ability to speed up growth in the second half of the year,” said Jérôme Stoll, member of the Executive Committee, Chief Performance Officer and Renault Group Sales and Marketing Director.

Total PC+LCV Group registrations by region

* Total registrations at end-June
** Europe = EU (28 countries – Bulgaria & Romania) + Balkans (5 countries) + Iceland, Norway & Switzerland

Total registrations by brand

*Total registrations at end-June

The Group’s 15 main markets at end-June 2015