Renault SA (RNO.PA) Earnings Call Transcript & Summary

Hello, everyone. I'm truly delighted to be here for my very first ERR as CEO of Renault Group. One month ago, I took on these new responsibilities with great pride, of course, but above all, with a deep sense of responsibility. As you know, our industry is going through a challenging period. We are facing technological, regulatory and geopolitical disruptions. And we are confronted with unprecedented fierce competition, particularly from China. Things are changing, and they are changing fast. We do not have the luxury of a status quo. We must constantly seek to be more efficient, more agile and strive for excellence in execution. Being here in Munich so soon after taking office is no coincidence. It shows how important our products are to me and how determined I am to keep value over volume at the heart of our strategy. Why? Because our strength lies in our cars. You will see it again today with our new PO. Thanks to the [indiscernible]. We can showcase one of the most dynamic lineups in Renault Group's history. Between 2022 and 2025, we successfully launched more than 20 new models. In 2024, we launched 10 new models and introduced 2 facelift across all our brands, all categories and all powertrains, from passenger cars to LCVs, electric to hybrid, both European and international markets. From the D segment, [indiscernible] to the International Grand [indiscernible] and [indiscernible], from [indiscernible] to Alpine A 390. This is not only our most dynamic lineup, but also our most attractive. We proved it with back-to-back Car of the Year wins in 2024 with [indiscernible] and in 2025 with Renault 5 and Alpine A290. The new [indiscernible] how we will continue this winning strategy and even accelerate it. This car embodies our ability to navigate a very unstable regulatory and commercial environment. As you know, we face CAFE regulations, decarbonization path that is less linear than first anticipated. To meet these challenges, one of our key strengths is the agility of our business model. It stands on 2 solid pillars: EV on one side, ICE and hybrid on the other side. For EV, we have Ampere. It supports our ambition to outpace pure EV players, reach EV and ICE price parity and to deliver affordable decarbonized mobility for all. This strategy is clearly paying off with EV sales for Renault Brand increasing by 57% in the first half of the year. For hybrid and ICE, we have horse. It is an asset that generates cash, mitigates risk and keeps reinventing these technologies. Year 2, the results speak for themselves. Our hybrid mix is [indiscernible] in Europe. With Clio 6, we unveiled today, we confirm our commitment to offer customers the best of both technologies and what better way to do it than with one of our most iconic cars. Clio needs no introduction. It is one of our [indiscernible] of the group, a core part of our identity. It is also one of our greatest commercial success. It has already won the [indiscernible] of nearly 17 million customers worldwide. And it is still going strong as the best-selling car in Europe in the first half of 2025 with more than 130,000 units sold. For 35 years, Clio has been the benchmark in the [indiscernible] segment. Generation after generation, it has kept [indiscernible] in design, performance and features. And today, we are doing it once again. Clio 6 comes with a brand-new hybrid powertrain, delivering best-in-class CO2 emission, the best of both worlds. I'm therefore very proud to present this new icon, which I'm convinced will be one of our next big hits. I will not elaborate further since Fabrice and Renault team will provide more details. Fabrice, the stage is yours.

Thank you, Francois, and good evening, ladies and gentlemen. Thank you for joining us here in Munich. And what a pleasure it is to introduce you today to the all-new Renault Clio. And when I say new, I mean a completely reimagined sixth-generation Clio that will fully surprise you. Of course, it draws on the DNA of its 5 previous generations. But this new Clio takes everything further with bold design, advanced technology and next level connectivity. Clio has always been a flagship for Renault in design and innovation, but also a crucial pillar of our range. Over 17 million units have been sold in its 35-year history. We have been able to reinvent Clio, thanks to the strategic and commercial framework we set 4 years ago, a complementary product lineup built on [indiscernible], full electric and full hybrid powertrains, offering solutions for every customer. A strategy that prioritizes value, moving upmarket, adding value through technology and ensuring a balanced presence across sales channels from retail to fleet. And the strategy is paying off. In the first half of 2025, Clio was Europe's best-selling car. But at the same time, Renault 5 became also the best-selling electric vehicle in the European B segment. This success allows us to innovate boldly to push our vision for Clio even further. We saw room for growth in low CO2 internal combustion models, and we invested our energy into creating a new Clio that delivers long-lasting value. The result, a car that stands out through design, powertrain and technology. And let's break it down. First, design. The new Cleo is a [indiscernible], sleek silhouette, perfect proportions, a blend of allure, modernity and sportiness. It has that extra spark that captures attention instantly. And in just a moment, Laurence will take you through the detail and the design in detail. The second point is powertrain. Cleo 6 isn't fully electric. Instead, it's boosted by a new full hybrid engine, just 3.9 liters per 100 kilometer, delivering 160 horsepower. It is the most efficient and high performing in its class with CO2 emissions of only 89 grams per kilometer. It is designed to meet the needs of both high mileage fleet drivers and everyday customers. Third point, technology. Clio now features open air link with Google Built-in, a true benchmark in the market and the first in its segment. Customers already love it on our higher models, and now it will be available in Clio. In short, new Clio redefines what a hatchback can be in a market dominated by SUVs. It is fully upgraded, compact yet versatile and packed with features usually reserved for higher segments. Consistent with our strategy of the past 4 years, we have raised the bar once again, delivering a car as ambitious and appealing as our electric lineup. new Clio is designed to accelerate the electrification of mobility through design, hybrid power and connectivity. It will break the rule, reconciling filing what is usually seen as opposites. It is an all-in car at the same time, powerful and efficient, design-led and functional, popular and exclusive. Nu Clio is a modern interpretation of a compact car, which aims at winning the hearts of the European market and beyond. And now, the moment we've all been waiting for, I'm very proud alongside the entire Renault team to unveil the new Clio 6. [Presentation]

Thank you. Thank you, everyone. Thank you, Fabrice. Thank you, Francois. Good afternoon, everyone. What a great honor it is here to be in Munich and to introduce you to the new Renault Clio Full Hybrid E-Tech. With this sixth generation, we have embarked on a daring challenge to elevate it, to achieve a true stylistic shift, to make it even more desirable, expressive and more dynamic. In a nutshell, to turn a hero into a super hero. And a superhero, as you know, has superpowers. The new Clio is super emotional, super tech and super powered. It is with this vision that we embark on this new chapter. To spark of love at first sight and make Clio the most desirable model in that segment while remaining the reference. New Clio fully embodies Renault's new wave styling, sharp, potential, but it still goes further, driving this design language beyond its frontiers and it's unmistakably daring. It all starts with the stunning charismatic front face. The long hood is emphasized by character lines that push the grill forward, muscular, powerful, the front-end frames a piercing magnetic gaze. With its extreme design, pure lines and bold sculpted silhouette full of tension, it reinvents the segment's codes and asserts a powerful personality. It's fluid curves, alternating hollowed and contact surfaces come to life, thanks to precise tension lines that capture light and inject a certain nervousness and dynamism into the silhouette. The body is almost liquid and in motion, and it seems to flow around ultra-tech elements. It creates an audacious harmony between sculpted form and on the other side, meticulously crafted technical elements. The interior design will capture you as much as the exterior. We have designed a generally spacious and comfortable environment, modern, technical, intensely emotional. The interior forms create a connection with the exterior, while sophisticated and sometimes unexpected details have been crafted as unique elements. Take the dashboard, for example. It's wrapped gradient technical fabric from dark to light and it envelops the passengers in a refined comfort. Ambient lighting flows seamlessly into the doors, culminating in a crystal-like luminous detail. The seats amplify this dynamic driving posture with their enveloping lateral support, while exclusive graphic finishes create a perfect balance between performance and sophistication. In the [indiscernible] Alpine version, this sported character is even enhanced. Some details take on an exclusive and nearly artistic dimension such as the spectral titanium trim that supplements the interior like a jewel. Finally, I am proud to announce that in the [indiscernible] Alpine version, Clio was the first vehicle in the Renault range to reach 33.7% of materials with a controlled environmental impact, demonstrating our commitment to a more sustainable future. So to resume, a magnetic and striking gaze, fluid curves, an athletic aspect, a modern, technical and intensely emotional living space. As you will have understood by now, the Renault Cleo has everything it takes to spark love at first sight. I'm confident that you too will fall in love with the new Clio. So Delphine, Buros, tell us more about the future and the features, and thank you all for your attention.

Hello. So I'm delighted to be here today with Delphine because I joined Renault before the first PO back in the very late '80s. I've seen every single generation come and go, and I can assure you this car has changed Renault's history. Each generation brought something special in design, in powertrain and in technology. It pushed the entire category forward. As you can see, we have all the ingredients to give Clio a super power boost, a real shot of energy. The first shot of energy is linked to our huge design shift. But the second shot of energy, it's our full hybrid E-Tech 160 horsepower engine. It's the ultimate combination of efficiency and driving pleasure. It even outperforms our latest full hybrid E-Tech 145. It represents an additional 15 horsepower and 22 newton meters of torque. It's also better in terms of both emissions and consumptions. It offers with a driving range of up to 1,000 kilometers, a fuel consumption of 3.9 liter for 400 kilometer, and it emits only 89 grams of CO2 per kilometer, setting a new benchmark in its category. Alongside our full hybrid E-Tech engine, the TCE 115 is a well-balanced engine, offering an increased power and torque. The Eco G120 is an LPG compatible engine with an EDC automatic gearbox. It is versatile, cost-effective and eco-friendly alternative. It is ideal for drivers seeking lower running costs, but without compromising comfort and providing a driving range of up to 1,450 kilometers. The EDC is Renault's new generation of dual-clutch automatic gearbox efficient, smooth and responsive. In the end, this lineup represents a major leap forward and a real game changer on the market for our customers. Delphine, I hand over to you to present the third superpower of Cleo6.

Good afternoon, everyone. Alongside its design and its new full hybrid engine, CleO6 also gains a third superpower through its technology. Connectivity is clearly one of the assets of Clio 6. Open Link with Google built-in delivers seamless connectivity. For example, with Google Assistant, no more typing on the screen, just speak, very convenient and much safer when you're driving. And if you are using Google Maps, the map updates automatically and shows you real-time traffic conditions. Also, while you're driving or taking a break, you can access Google Play Store, more than 100 apps, including new applications such as Prime Video and HBO Max. The system is as intuitive and responsive as a smartphone today, offering a fluid user experience. When it comes to driving heads, New Clio is also moving ahead strongly. It's a truly versatile car designed with all the right features for every kind of use from density traffic to long motorway journeys, Featuring up to 29 driving heads coming from higher-end segments, new Clio delivers cutting-edge safety and convenience. We are very proud to offer a standard adaptive cruise control and an electric parking brake. Clio is also particularly well suited to urban environment where maneuverability and intelligent assistance systems are essential. Take, for example, automatic rear emergency braking and the occupant safe exit system, a particularly innovative feature. These equipments are not just gadgets. They are useful from day-to-day while also enhancing safety. They are an essential pillar of our human-first program, our commitment to putting people and protection at the heart of every Renault. But new Renault Clio is much more than the recipe combining these 3 superpowers of design, hybrid powertrain and connectivity. It's also about new sensations, new dimensions and an enhanced driving experience. New Clio maintains an excellent level of roominess, including a generous boot capacity with a lower load seal. It also has a sporty feeling with a new driver cockpit fitted with a smaller and more agile steering wheel borrowed from our C&D segment models and beautiful redesign seats. At the same time, wider tracks and 18-inch wheels contribute to improved handling and road presence. Bruno, what would you like to add as a conclusion?

New Clio, superpowered hatchback redefines the standards of its class. Engineered for global appeal, it maximizes market coverage, and it delivers a truly versatile driving experience. Even more than ever, new Clio embodies its original promise of being a small car that plays in the major leagues. And today, more than ever, it truly deserves to be called Cleo, the small car that has all the characteristics of a grownup. [Foreign Language] Thank you all.