RENAULT : RENAULT: 2012 FINANCIAL RESULTS - Press release
February 14, 2013
2012 FINANCIAL RESULTS
Despite a challenging European environment, the Renault group reinforced its
balance sheet, pursued its global growth strategy and achieved a positive net
income of €1,735 million.
oGroup revenues of €41,270 million, down 3.2% on 2011.
oGroup operating margin of €729 million, or 1.8% of revenues, compared with
€1,091 million and 2.6% in 2011.
oGroup operating income of €122 million, compared with €1,244 million in
oContribution of associated companies of €1,504 million, compared with
€1,524 million in 2011.
oNet income of €1,735 million (including a capital gain of €924 million
from the disposal of remaining AB Volvo shares).
oPositive Automotive operational free cash flow^ of €597million, mainly
resulting from efficient management of the working capital requirement.
oThe Group moved from a net debt position of €299million at December 31,
2011 to a net cash position of €1,492million mainly due to the disposal
of AB Volvo A shares for €1,476 million.
Commenting, Carlos Ghosn, Chairman and Chief Executive Officer of Renault,
said: "In a contrasted global automotive market, Renault benefited from the
growth of markets outside Europe, which account for over half of its sales. In
the difficult environment in Europe, and especially in France, the Group led a
rigorous sales policy and began the renewal of its range with the launch of
Clio IV. Thanks to the commitments of all its employees, the Renault group is
pursuing its strategy of global growth while strengthening its financial
situation and delivering a positive Automotive free cash flow".
Group revenues came to €41,270 million, down 3.2%. With the strong increase in
sales outside Europe (+9.1%) failing to offset the decrease in sales in Europe
(-18.0%), The Automotive division contributed €39,156 to revenues, down 3.7%
Group operating margin fell €362million in 2012 to €729million (1.8% of
revenues) compared with €1,091million in 2011 (2.6% of revenues).
The Automotive division posted a slightly negative operating margin (-€25
million or -0.1% of its revenues) compared with a positive €330 million in
2011 (0.8% of its revenues). The positive impact from cost reductions for €528
million and the good control of G&A expenses did not offset the sharply
negative volume impact (-€501million) or the increased competition in Europe
(mix/price/enrichment effect of -€242 million).
The contribution of Sales Financing to Group operating margin came to
€754million, compared with €761 million in 2011. The cost of risk totaled
0.38% of the outstandings (up 0.15 points), after reaching a low point last
year. However, it remains below its historic average, reflecting the continued
good quality of the portfolio, despite the worsening economic environment in
Operating income was €122 million, after recognizing other negative operating
income and expense items, which totaled €607 million, mainly du to impairment
charges of several vehicles lines, the devaluation of the Iranian currency,
and restructuring costs.
The contribution of associated companies came to €1,504 million in 2012^
(of which €1,234 million for Nissan), down from €1,524 million in 2011.
Net income came to €1,735 million, compared with €2,139 million in 2011. The
total includes a capital gain of €924 million from the disposal of A shares in
AB Volvo in December. Net income, group share, was €1,772 million (€6.51 per
For the fourth consecutive year, Automotive operational free cash flow was
positive. Despite the negative impact from sales and operating income,
full-year free cash flow came to €597 million, mainly resulting from the
rigorous management of the working capital requirement. The Group was able to
increase its annual investments reaching 8.1% of revenues.
This performance, along with the disposal of AB Volvo A shares in December
2012 for €1,476 million, enabled the Group to eliminate its net debt. For the
first time since the beginning of the Alliance with Nissan in 1999, Renault is
reporting a positive Automotive net cash position of €1,492 million at
December 31, 2012, compared with net debt of €299 million at end-December
2011. At the same time, the Automotive division reported a strong liquidity
position of €13.6 billion, compared to €11.4 billion at end-2011.
In line with the dividends policy announced in the "Renault 2016 - Drive the
Change" plan, a dividend of €1.72 per share, strictly representing the
dividends received by the Group in 2012 for its shares in listed companies,
will be submitted for approval at the next Shareholders' General Meeting.
In 2013, the European market remains uncertain and is expected to contract by
at least 3% with a French market down 3 to 5%. The global automotive market
(PC+LCV) is expected to grow 3% year on year. This growth will be fueled by
positive momentum expected in China, North America, India (+11%) Russia (+5%),
and Brazil (+1.5%).
In this context, Renault will pursue its strategy of international
development. In Europe, the Group is targeting market share growth with new
product launches (Captur, ZOE, Clio Estate, New Logan) and the full impact of
the products launched at the end of 2012 (Clio IV and New Sandero) with a
sustainable pricing policy.
Renault Group is targeting for 2013 (provided European and French markets are
not significantly worse than expected):
ounits sales growth,
opositive Automotive operating margin,
opositive Automotive operational free cash flow.
CONSOLIDATED GROUP RESULTS
€ million 2012 2011
Revenues 41,270 42,628
Operating margin 729 1,091
% of revenues
o/w Automotive -25 330
% of revenues in sector
o/w Sales Financing (RCI Banque) 754 761
Operating income 122 1,244
Net financial income -266 -121
Capital gain from disposal of AB Volvo A shares 924 -
Contribution from associated companies 1,504 1,524
o/w Nissan 1,234 1,332
o/w Volvo 80 136
o/w AVTOVAZ 186 49
Current and deferred taxes -549 -508
Net income 1,735 2,139
Net income group share 1,772 2,092
The consolidated financial statements of the Renault group at December 31,
2012 were approved by the Board of
Directors on February 13, 2013. The Group's statutory auditors have conducted
a limited review of these financial
statements and their report will be issued shortly. The financial report, with
a complete analysis of the financial
results in 2012, is available for download in the Finance section of
Press contact: Renault Press: Raluca Barb +33 (0)1 76 84 18
Websites: www.media.renault.com - www.renault.com
Operational free cash flow: cash flow (excluding dividends received from
listed companies) minus tangible and intangible investments +/- changes in
working capital requirements.
After taking into account AB Volvo's contribution for three quarters.
2012 Financial results Pres release
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: RENAULT via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.