Half Year 2024 Renault SA Earnings Call Transcript
Key Points
- Renault SA (RNLSY) achieved a record 8.1% operating margin in H1 2024, the highest in the company's history.
- The company generated EUR1.3 billion of free cash flow and reached a strong net financial position of almost EUR5 billion.
- Renault SA (RNLSY) reduced its cash fixed costs by EUR2.7 billion since H1 2019 and achieved over 90% utilization rate of its industrial footprint.
- The company has struck over 20 strategic partnerships with leading players in the automotive value chain, enhancing its strategic agility.
- Renault SA (RNLSY) is making significant strides in AI, aiming to become the first AI-powered automobile manufacturer, which is expected to enhance productivity and efficiency across all value chains.
- The company faces challenges in meeting the 2025 CO2 emission targets due to slower-than-expected EV market growth, particularly in Germany.
- There is increased pressure on pricing in the market, which could impact margins if not managed carefully.
- The deconsolidation of HORSE will result in a EUR330 million adverse impact on H2 2024 profits and cash flow.
- The cost of risk for Mobilized Financial Services remains a concern, especially with the deteriorating economic backdrop.
- Renault SA (RNLSY) needs more coordinated support from European countries to provide incentives for electric vehicles to meet emission targets.
Good morning, everyone, and welcome to Renault Group H1 results. This presentation will be made by Luca de Meo, CEO; Thierry Pieton, CFO; and the management team of Renault Group.
Luca, the floor is yours.
(technical difficulty) -- the H1 results. And also, it will be an opportunity for us to update you with the in-depth transformation that we keep developing in this company. In the first semester of 2024, Renault Group achieved 8.1% operating margin. This is actually the highest operating margin in this company has ever achieved. We generated EUR1.3 billion of free cash flow, and we reached a very strong net financial position at almost EUR5 billion.
I want to take the opportunity to thank all those who are supporting us and have supported us also in challenging times. Our employees, of course, our clients, our distribution partners, our suppliers and of course, our shareholders and investors.
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