Renault, the strongest rise in CAC40 at the end of Wednesday, June 1, 2022-2022 June 1, 5:50 pm

(AOF)-

Renault

(+ 2.49% to 26.18 euros)

Renault has benefited from Nissan’s rise on the Tokyo Stock Exchange following favorable comments from JP Morgan on the financial outlook for Japanese automakers this year.

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Key Point

Established in 1898, it is the world’s fourth largest automobile manufacturer with the Renault, Dacia, Lada, Alpine and Mobilize brands.

-Position of global industry. With more than 50% of sales outside Europe, it has a strong position in nine countries: France, Russia, Italy, Turkey, Spain, Belgium-Luxemburg, Romania, Morocco and Poland.

-93% of sales are generated by the automotive sector, including 6% by Russian manufacturer Avtovaz.

-Business model: Relocation in medium-sized vehicles, quality of delivery in electric or hybrid vehicles, and flexible service.

-The capital is 15% (29.05% voting rights) in France, 15% in Nissan’s subsidiary, 3.61% (5.88%) in employees, and the 17-member board of directors is Jean-Dominique Senard, Lucade. Is chaired by. Meo is Chief Executive Officer.

-A fragile balance sheet with a gearing ratio of 142.5% against € 27.9 billion equity and cash reaching € 21.9 billion.

Task

-Three-step “regeneration” strategy:

-Resurrection by 2023: Brand autonomy, rationalization of platform 6 to 3, “midrange” offer increased from 15% to 40% of revenue, operating profit + 3%, free cash flow 3 billion Euro,

-Refurbishment from 2023 to 2025 by updating the range,

-“Regeneration”: Increased hydrogen use in professional vehicles with a 30% market share target in 2030.

-Innovation strategy focused on connectivity, services and electric vehicles based on 4.4% R & D:

-Network of experts, Innovation Labs (California, France, Israel), ReKnow University, specializing in electrification, data cyber security, etc.

-Partnership: CEA and Moveo, Sysematic and ID4Car Competitive Clusters,

-NeVeOS project for vehicle electronic architecture,

-E-TECH hybrid technology and French and carbon-free batteries,

-Partnership: CEA, EnVision AESCMoveo, Sysematic, STMicro, ID4Car…,

-Renault Venture Capital and Alliance Ventures Investment Fund for Venture Capital and Startup Support.

-Environmental Strategy for 2040 and 2050 Carbon Neutral in Europe:

-Investment of € 23 billion by 2027 and a series of all-electric private car targets in Europe in 2030 through five popular platforms.

-Circular mobility economy promoted by Flins factory: industrial readjustment of used cars, recycling and reuse of parts and equipment, innovation and research structure.

-European dynamism of E-TECH vehicles and the launch of seven vehicles in 2022.

Task

-Semiconductor shortage (total loss of 300,000 vehicles in 2022) and another strong impact in the first half of raw material inflation.

-Russia-Ukraine War: The end of all Renault activities in Russia.

-Started operation of Mobilize. It integrates mobility, energy, financing, insurance and maintenance services and aims to reach 20% of sales by 2030.

-The 2022 target has been revised downwards after sales declined in the first quarter.

-No dividends for 2021.

New giant of used car

The € 400 billion market in Europe is under concentration. UK group Constellation has taken over the retail platform CarNext. The aim is to form a European leader in this sector and compete with other leaders such as Germany’s AutoHero, UK’s Kazoo and France’s AramisAuto. Financing is accelerating. Kazu of the United Kingdom has announced that it will be listed on the New York Stock Exchange through Spac (special purpose acquisition company) and will raise $ 1.6 billion. The German Out-Ains Group has raised € 1.8 billion on the Frankfurt Stock Exchange, and the French subsidiary Aramis Group, a subsidiary of Stellantis, has entered the Paris Stock Exchange.

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