Renault SA (RNO) Earnings Call Transcript & Summary

Hello. Hello, everyone. Welcome at Winston and thank you for coming. It's, of course, a great honor for the whole team to have you here. I'd like to start maybe talking about the Renault Group in general when we get into the subject of Alpine. Can someone take this because I don't need it. Okay. Good. So you know that in the last 3 years, we have gone a long way since the time when Renault was undergoing one probably -- one of the deepest crisis of it's history. In 2020, we lost -- I don't want to even remember the figure, but it was in billions. I kind of removed it and at that time, we launched our Renaulution plan. If you remember, you can see on the chart, we had 3 phases. One was a resurrection, which was about saving the company. So it was all turnaround. The second one was the renovation that was much more focused on developing, let's say, good range of products that is always the most important thing in the automotive industry to have a good product offer, which we didn't have. And then the third one, we call the Revolution and the old story of Revolution was to prepare Renault for the future, for the next challenges. Now if I recap a little bit, I think we have done a profound rework of the company in its operation, its organization. So on the regulation side, just to give you a few numbers that sometimes we share, especially with -- of course, with our investors. I just remind you that in 16 months, we were able to reduce breakeven by 50%, and we're continuing. And we have optimized our industrial footprints without making a big noise. So we already now flat out basically in average on all the plants. So we have 100% production capacity utilization, which is always a good sign of how well sized are -- is the manufacturing footprint. And then when it comes to the Renovation, we have been working on something like 22 models, new products. They will come -- they've been coming so far, 2 or 3 of them. And then you have 18 from now to 2025, 2026. I think it's something that the company Renault has never done before that want -- that wave Of new products coming. And I also want to underline the fact that we did it with the -- by reducing our R&D and CapEx budget to EUR 4 billion, more or less which represent around 80% -- 8% of our turnover. So we are in the bench with the market. But EUR 4 billion is not so much money. And I would actually challenge any expert or analysts to see a company even in China that did 22 cars with EUR 4 billion budget. I'm saying this because it shows you that we care about money. We know how to use money properly, okay? There is no doubt that the plan works. I would say, probably better and faster than expected. You saw the number in 2022. We did 5.6. Actually, it was 6 points more than couple of years before. And 5.6 in absolute term is probably not the best result of any of our competitors. Of course, we have room under we have gas under the accelerator. But for Renault, it was one of the best results in the last 2 decades. And we also generated and this makes a huge difference. We generated like a little bit more than EUR 2 billion free cash flow. For Renault, it was historic. And we have made basically more cash in 2 years than we did in the 10 years in previous years. So the good news is that we have also built a machine that can produce cash, which is always very, very important for an investor. So I think we are back in the game. We are ready to accelerate, and we are moving to the last phase, I think the most exciting one of the plan. We announced that how we were going to transform the Renault Group into what we call a next-generation automotive company. The whole idea was to use the crisis as an opportunity to design an organization that would be more adapted than any other competitor to a new landscape in the automotive that will change fundamentally with different value chains, let's say, emerging around the classical value chain of an OEM. Our idea is that automotive is not more single sports as it has been before for a century. It's rather more is other Olympic games. You have to play different disciplines. So when I talk about things like EV, which is a different business than a supply chain that ICE, software, different logic, different technology, different cycles, new mobility services, in general, share cars, system of payments and different financial, let's say, tools that you need, circle economy is also something that will become a regulation. So you've got to handle that. So -- and all these new sports, in fact, they require different talents. They regard specific trainings maybe a specific bet. And sometimes they are measured in a different way. It's like Olympic Games. Sometimes you're measured by distance, sometimes you're measured by Renault, sometimes it's the weight you lift. So that's the way we see it. And that's why what we are doing, and this is very important for you to understand because the discussion or opinions is only part of the story, important part of the story is we are, let's say, focusing at least 5 very compact teams on each one of them. Each organization fully fledged from engineering to manufacturing to distribution, et cetera. And each one fully independent. So with own governance their own mission, their own targets and their own way of being measured by the group. Alpine is one of them, is there to attract, I would say, affluent customers that the people that like to spend money on cars, like him. And people that value something that is special. And we think that the switch to EV technology gives us a window of opportunity to create something that can stand the competition of anybody on the planet. And this is the story of Alpine. I think it's -- I shouldn't do that as a father, but it's kind of one of my favorite deals, you should make any difference between your kids. But Alpine is for me, something absolutely special. And to be honest, 2 years ago, it was in a dead end. There was no new car in the pipeline after the 810, it would have stopped, I think, in 2024, right? The Dieppe plant was almost empty. We were producing like 5, 6 cars a day. The engineering team of the Renault Sport, that is a very talented bunch of people had no support and direction from the management, and they were more and the management was more concentrated on doing volumes with mass market vehicles. But these guys were and are very, very good. Formula One was not considered as an asset, but the cost, a mere line in the marketing budget, that was the situation. And in only 2 years, everything changed. We created what -- it's already de facto a full-fledged high-end car company by bringing together top-notch engineering, high-quality manufacturing with unique flexibility. This is the deep selected distribution, you will see later. And of course, an ambitious racing program, putting Alpine at the pinnacle of motor sports with low and not only. And it's important because I was discussing with some of you before, it is the kind of thing that gives you prestige that gives you credibility with the commercers and also gives you mass media awareness that is good to prepare the expansion of the bank. I think we can already see the results. On the commercial side that we sold in 2 years with double sales. In France, the 810 is the best-selling sports car. It is in the top 5 in the sports coupe segment in Europe. As I said before, the is flat out and can't produce more, which is good. And last year, to celebrate the 6 years of existence of 810, we introduced 3 limited editions. All 3 fund buyer in less than 30 minutes. This is the kind of fan excitement, you only see in brands like Lambo, Porsche and Ferrari. So it's a very, very good sign. We also have doubled Alpine network with 40 new outlets opened in 2022 and bringing the total to 140 outlets around the world. In addition, Alpine's ability to secure new partnership is telling evidence of its new attractiveness. We are very happy to be trusted by all the respected investors like Redbird, [ Autra ] Capital and maximum effort. They will help us to get I think, to the next level, and we will be more precise later today. And finally, Alpine is breaking for the first time into the top 150 most valued brands in France, reaching a value of more than EUR 500 million, which is a small thing, but it's a sign that what we are doing here is to create business to create value and not just to have fun on the weekends, which, of course, we have. So now everything is in place, in my opinion, to make up being one of the -- I would say, next big things in the sports car business. We revealed our ambition in November, with Laurent presenting that. Alpine is shooting for 40% compound annual growth rate between 2023 and 2030. We target EUR 2 billion of revenue already in 2026. In 2030, we'll be over EUR 8 billion and [ alphabet ], which is very important, will be outside, not only in France but also of Europe. We think that based on our projection that Alpine is on track to breakeven in 2026 with -- we're committing to a double-digit margin in 2030. And finally, Alpine will take sports car to the next level also in terms of, I would say, sustainability is important for us. with an all-electric lineup by the end of 2026 and with Net Zero carbon by 2030. Of course, we confirm the targets that Laurent gave 6 or 7 months ago. And today, we are here to go much more in depth with you and the team and the whole team showing how Alpine is going to build the next successes. So I think that, let's say, discussion this morning with some of the colleagues, I think that what you see today is the outcome of 2 years, 2.5 years of very hard work, where we went a little bit under cover. And then everything you will be seeing is very concrete. It's just not PowerPoint, these things one after the other are coming, whether it's motorsports product on distributors. So thanks again for coming. Enjoy the ride and I'll leave it now to the real boss of our business, Laurent Rossi. I hope you have fun.

Thank you, Luca. Welcome, everyone. Welcome again. Thank you for being here. It's a privilege to be here talking in front of you. It's a privilege to be at the helm of Alpine. When Luca tasked me with the rebirth of Alpine in 2021. The first thing we did was to immediately define Alpine because it was important for us to we find a new way, a common way for everyone to define Alpine. From the get go, what came immediately was that Alpine DNA was raising like through and through. And so based on that, we decided to something moving. Nothing is moving yes. We decided to define Alpine in 3 simple terms. Alpine is born from racing, Alpine is made by racers and Alpine is for racers at heart. I'm going to give you a little bit of details around that. Alpine is born from racing, this is simply our origin. This is the story of Jean Redel. Chris Crossing the Alps, a board is like five gear four chevelle car enjoying himself thoroughly. And he was saying back then [Foreign Language] a very simple sentence. That means I had good fun. And that's the spirit of what we wanted to transmit. He wanted to transmit to everyone is a passion for race car driving for motorsports excellence, technology excellence. And so we decided to create Alpine back in 1955. So a pure sports car, like brand. That's it. initially that's what Alpine was. And then the racing DNA was forged into multiple successes on track. So for instance, 10 victories at Le Mans, the first constructor to win the WRC Championship. And that's what we're talking about when we say Alpine is all about racing. Now today, we define Alpine also as made by racers. In fact, there are like 900 technicians and engineers working every day at designing sports cars, whether it's for track or for road. That's 50% of our workforce, 50% of people dedicated to developing technology and products derived from the racing knowledge. It's massive, and it shows that we're living up to our legacy as simple as that. Everything we learned from the track, we apply it to our products. It's true for product and technologies. It's also true for the winning spirit as a matter of fact. Lastly, in is for racer at heart. That says a lot about us. We are welcoming community, if you will, united around the passion for racing and the values of racing where we compete ferociously on the track, but we welcome newcomers and we recognize each other as racers. It's also a spirit of values that we have such as equal opportunities for all. And I'll come back to that a bit later on. But it's also talking about our customers. It's the vast pool of people interested in motorsports which is huge. It's a pool in which we can tap, but not just is also the pool of specific customers for Alpine, people for whom life is a race, life is a race because they seek performance. self-realization and those are the people that are usually choosing Alpine. Let me share with you a video about the spirit of Alpine. [Presentation]

So that's the spirit of our team. This is really racing DNA, like I said, through and through. And this is what we try and like conveyed to our products as much as we do in our brand positioning. So we're definitely a special brand. And as a matter of fact, we call ourselves a specialty brand. We're catering to discerning customers that are looking for agility, lateness, performance, while not sacrificing for elegance and comfort. This is Alpine. This is our product positioning. In fact, we're basically creating a white space in between the traditional categories as you can see on this chart. And this is -- this hybrid position that enables us to express our DNA, racing DNA every day. and to create distinctive products, which leverage our [Foreign Language] this racing DNA I was talking about, which is inherited not invented completely cultivated by Alpine. The ultimate embodiment of this [Foreign Language] is, of course, what A110, our icon. So it was true yesterday back in the day with what was called then the Berlinetta, which was the A110 that Jean Redel created, whose trademark was agility. It is true today. It is still true today with our current A110, still agile, always agile. It's been held by countless awards across the world. very light true to the original principle of minimizing the weight to optimize weight-to-power ratio and with 3.7 kilos horsepower, our A110 is covering the 0 to 100 in in less than 4 seconds. So it's really also living up to his incredible legacy. And tomorrow, the A110 will still be the icon. We'll keep it front and center in our lineup because we feel like this is really the embodiment, the perfect embodiment of our philosophy. The A110 is living his best life. Luca mentioned that. We doubled the sales in 2 years. We're actually going to reach this year very likely 4,200 orders or sales or efficiency registration. And we have order bank more than 7 months full. So that means that since the beginning, it will be almost 3x the original figures that we had. So the Alpine recipe is working and that's important. The momentum is there. It's something that we're building on to build awareness everywhere in the world. Like I said, we are here to build the brand and building a brand means that equally important as commercial success is the brand value, Luca touched on this topic a little bit earlier. We multiply the brand value tenfold in less than 3 years, as a matter of fact. So we are well on our way towards the EUR 1 billion mark that we want to set for the brand, which was the brand value of comparable competitors. I'll let you do the search, but you will find out. And it's something that's important because it shows that not only our lineup and our car is good, but this indicator, this metric usually embeds strategic outlook and financial solidity of the venture. So for us, it's a good year stick. It's almost like the weather forecast of where we're going. So now you have a good idea of what Alpine is doing in terms of positioning. We are on the rise. We have high ambitions. So I'm going to show you a little bit more what are the assets we're building to achieve those goals. And to do that, we've designed almost an operating model blue print for how do we build our team. It's a virtuous circle. And I'm going to describe it to you. It's all based around racing like I said. Racing is our core DNA. So we keep racing front and center, and it's all through North. But everything starts at the center with Alpine Group, the motor of all Alpines, which has been presented last year, 3 figures, the designs of Alpines in the future. Alpenglow itself is a race car. This is how it's been thought initially because we are building race cars. So if you take out Alpenglow and go to the racing branch through North, like I said, you have all of our sports -- motorsports endeavors. F1, front and center, Renault Group has been in F1 for more than 45 years. Since the opening of the new Alpine chapter, I can tell you that we're here for another 45 years. I don't think Luca will contradict me here. It is the main pillar of our motosports engagement involvement. We also announced a few weeks ago, we revealed our contender for the 2024 LMDh season. And this also shows our intentions, ambitions in the endurance category. That means that Alpine will be present and fighting for the podiums in the two top motor sports categories worldwide. We're also present via our junior our driver academy in the Junior series which, by the way, will not only enable us to be present in these categories, but we'll feed all of the other ventures, F1 and LMDh, but not just in the future in terms of drivers. And we are also present by our customer programs in a great variety of other competitions that are DT rallying. So Alpine is really about racing. It's important for us because others might claim it. We do it. It's a bit of a different story. Now once you've said that, we need to translate that into products. And true to this saying, we race on Sunday and we sell on Monday. We derive our motorsport knowledge and transmit it to our customers through our sport icons. This is the branch, if you go on the left. And it's the brands where we express all of our knowledge from racing. At the moment, we have the only A110, a unique one, but it's only 1 car. And we derive from that more of sports and racing legitimacy from racing and from sports icons. From that, we get increased purchasing power that we will apply to our Lifestyle branch. The Lifestyle branch. You see it on the right is now composed of 4 vehicles, the A290, which has been presented as a beta version a few weeks ago and will be released next year. It's our urban racer, hot hatch. The year after in 2025, we will release the crossover rapidly after that, we will have 2 other cars announced by Luca last year during the Renault CMD, the DNA crossover DT. So this Lifestyle branch will produce volume and profit, which in turn will fund racing and sport icon. So it's a virtuous so-called, the loop is looped. And it's helping us supporting the whole model and you understand why racing for us is important because it creates positive effect along the circle. It enables brand expansion and growth. Now let me deep dive a bit more into the sport icon because I said there was only A110, which is perpetuating the excellence. As I mentioned, it's really the icon, the central pillar of our sport icon branch. At the heart of its success, there is one thing, just one thing that's critical is to chassis. I mean the A110 is not known for its equipment or even its power in it, which is a very good one, but not necessarily like above and beyond competition, but the chassis though, has an extremely important piece of the architecture. It's all aluminum. It's 150 kg, 200 kg lighter than most comparable cars. And that what gives the A110 is fantastic lightness and agility. So when it came to following Luca's vision, which is to electrify Alpine to make it eternal, well, we decided that this chassis was actually the perfect canvas to electrify Alpine, at least for a start. And so we created this car, Eternity, which was built around the A110 chassis, the aluminum chassis, the exact same chassis that you find in the ICE A110 and using only components from the Renault Group. So power engines, I would say, electric engines, batteries and all. So this car was a great proof that we could do it. It helped us achieve performance and actually driving feeling sensations that were very close to the A110 without even putting anything special into it, but the library of components we have in the Renault Group which has an extensive experience in EV. So it was something that we had to try. But it was not just a one-off proof of concept. We quickly realized it was way more than that. It's actually almost like the key to our future, the cornerstone of our lineup. And this is why we decided, and this is something you might have seen today already to create the APP, the brand-new APP, our proprietary Alpine Performance Platform, which is going to be critical in our strategy because it will underpin all of our sports cars going forward. In that sport branch that you saw, APP will be the key to all of our vehicles. I will start with the A110 that you can see here as a silhouette, and you will see some of you, I believe, later on as a market. But we decided that since we have some regrets with the current A110 because the current A110 was actually only a one-off project we should correct those regrets. And one of the regrets we had that was we were missing a roadster. And so we decided that we would also create the roadster. It's, of course, a matter of style because you might see someday soon, I guess, the design the breathtaking. But it is also a matter of business pragmatism because actually, with a roadster, you end up more or less looking at twice the volume perspective depending on the markets where you go, which helps solidify the economics of a A110 suddenly. And then we figured that, that was not enough and we could do better. And so we decided to go with a 2 plus 2 in the person of A310, which is an addition to the mix and we will allow to grow our branch, the sports branch. This is important because this will really change the deal for Alpine in the sense that we won't play on the sport icon landscape only on 1 car anymore. So for us, it's quite critical. So you see APP basically we have A110 group, A110 Roadster, A310 will offer us a more comprehensive sports lineup, and it will enable us to not only show our mastery of the segment of motor sports or racing cars, but expand the customer profit pool because suddenly, we won't tap into a very small lever of the people interested in sports car but expand to much more potential customers. But that's all. We have more in-store. We imagine that this platform is very capable of more than just that. In fact, APP, as you can see here on this little schematics, we'll be able to, of course, create A110. You see here the engine, the batteries, the blue boxes, the wheels the position of the driver, and you can -- you won't see it here, but you see it later that the driver is more in a sports car perspective. APP can be expanded because it's a beam structure. It's basically 4 beams that you can move the way you want. So you can change the wheel base, change the way you lay out your batteries, as you can see here, create suddenly the A310. And you can go further than that. Obviously, you can expand in multiple dimensions. You can see the beam structure a bit more here. And therefore, change overhangs with wheel base and imagine expanding into different body types different segments and that holds a lot of promises because with that, not only we will have access to more cars, more markets, but also we robustify the economics of APP by adding cars over cars, over cars and, therefore, improving all of the fundamentals, the Rochelle TV of the platform. And that's quite important to us because it's business. We don't do it just for fun, as Luca was saying, it's not just for the sake of having fun weekends. So for us, APP is really critical. APP is an 800-volt EV-native platform, but we will also be able to receive other propulsion means if needed. Luca mentioned hydrogen, I believe we're exploring hydrogen as a fuel. So hydrogen ICE engines potentially for very high-performance applications. And that combined, for instance, with proprietary technology that the group -- the Renault Group is developing such as like polymorphous tanks. We will be able to potentially have like an hydrogen part Ice sports cars at some point. It's a possibility, but APP offers it. So when you map this out on this wheel, this development circle, you can see that now we're getting to a much more balanced, again, comprehensive lineup that's pretty robust because all branches here have an halo effect on the other and the model is solid. And this model will clearly help us strengthen our presence in the core markets. So Europe and Japan in the first place, but also expand globally and tackle true sports cars territories, if you will. First of which would be the U.S. important sports car territory, very large. And we will enter the U.S. with all the models to be released from 2027 onwards. And this is going to help us big time in terms of rolling out the Alpine strategy. You can see that the goal is to move from a niche brand that we are today. We've essentially a subset of the volumes addressed in Europe, less than 1% to a truly global brand with at the very least 70% of the volumes addressable important because of the portfolio that we will have because of the breadth in terms of segment that we'll cover. We'll be able to potentially address 70% of the volumes in each of the considered geographies. Those are the main ones. Europe, Japan, South Korea being our core targets, North America being the next big challenge in China being considered as an opportunity that we will, of course, look at. And of course, when you compound, if you will, this geographic and lineup expansion. In terms of profit, that's also a big switch. It's a game changer, if you will. Today, we are only looking at the EUR 3 billion addressable profit pool because we have only 1 model sold in only 1 territory, if you will. Tomorrow, thanks to all of the cars in all the segments, but also present in all the markets, we'll be looking at a share of the EUR 120 billion profit pool that's constituted by the EV premium category, if you will. We're looking at 70% of that EUR 120 billion, which is EUR 90 billion more or less, as you can see here. So that means that we're going to move from EUR 3 billion to EUR 90 billion profit addressable -- profitable, that's massive. This is really a change of dimension for Alpine. And that's critical because this is what Luca was mentioning. You haven't seen much in the last 2.5 years because everything was done behind the curtains in the background. And now you're going to see the beginning of that starting next year with the first car and all the others coming in rapid succession pretty much 1 car per year, more or less. So now you will wonder, is Alpine really fit for the challenge because it's big. And I know everyone says that. Well, I'm going to assure you why we have good reasons to believe that we have pretty much everything to make it happen. In fact, we, first and foremost, following what's usually called an asset-light model. But is to say Alpine is at the center of a very strong, robust ecosystem of partners. It starts, of course, with the Renault Group, the parent company, which is an incredible source of top-notch assets in which we can tap. I'm going to name a few. Ampere, for instance, our EV chip gen will probably enable us to create synergies, strong synergies, industrial technological synergies to develop the product and services that are key in the EV world. For instance, we're going to pair APP our platform to Ampere's SDV, SDV being the software-defined vehicle architecture. So the EV-native software architecture. And so having a partner like that within the group makes it much easier while to be directly best-in-class on the EV side. We've mobilized our mobility arm. We have plenty of assets we can tap it to, but I would like to mention, for instance, the financial, the captive arm of the Renault Group, which is critical in terms of like crafting commercial offers especially when you pair that with the usually higher residual value of Alpine, we'll be able to basically craft offers to customers that will grow and retain foster loyalty with our customers, especially in a very inflationist world and in particular on the electric vehicle side. So this is a big asset we can lean on to. But not just, I mean, there's all other places where we can tap into. For instance, we can have -- we can resort to the industrial network of the Renault Group, which is global. And if we wanted to, we could, for instance, use our Korean facility, their skill sets, but also the free trade agreements, should we need it for our international endeavors. So you can see that the Renault Group is providing us a strong series of assets. Outside of the Renault Group, we partner only with top-notch references, selected partners that share our vision and needs. We're going to partner with Barco for our batteries, the AP being they will provide us with high chemistry, high-performance chemistry which is critical for brand like Alpine because it's something that you need when you want to complete, for instance, sustained performance over several track laps, which is something that goes directly into a sports cars because we wouldn't do sports cars if it doesn't have sports attributes. So that's why we chose Barco to help us on this journey. Already a partner of the group is Google providing benchmark connectivity, but also providing the ability for us to develop like bespoke solutions for Alpine. For instance, Alpine telemetrics that will gather data and we ingest it in terms of driver support, especially for people interested in the performance of the car. And then we are a brand leading on the sports branch and more than a branch. It's a sports franchise. And as you've seen today, even in this field, we're trying to look for the best partners, the best-in-class, and I believe we have found the best. The goal here is to grow the franchise, the motor sport franchise, monetize it. And in Otro Capital, Redbird and Maximum effort, I think we've found the perfect test partners for us. And so to give you a bit more of details around the partnership, I'm going to call on stage, Alec Scheiner, Founding Partner of Otro Capital; and David Henry, our VPF sponsoring and partnerships.

So good afternoon, everyone. So as Laurent just explained, one of our goals is to create a sports franchise. And maybe we take a minute to explain to you what we mean by that. In order to create a sports franchise, you basically need 2 elements. The first element is that you need to create a brand or club that is bigger than your core product. If you see the best brand in the world, take Nike, for example, when you buy a Nike, Jerome just buy pair of shoes, you buy an emotion, you buy a story, you buy something that goes far beyond your core product, it's exactly what we're going to do with Alpine. The second thing you do in order to create a franchise is you create a connection, an emotional connection with your fan, which is indestructible. If you look for example again a country of football, I'm sure it's not that football fans here. You lose or you win, it's still your club. You can maybe in your life, change your love partner, but probably you will never change because it's part somewhere in your art that you can't break. And of course, it's something which is very important when you talk about business, because the revenues that you create with your fans, of course, depends on the sports results, but not only because the reaction is always the same, even if you lose and god knows I'm fan of a club, who lose a lot, but I still buy the shirt, I still go to the stadium, I still buy the merchandise, my father did and my son will. And that's part of the thing that you need to create when you create a franchise. So how are we going to do that? We want to create a sports franchise. For this, you need to create credibility with defense. You need to show that you're committed to it. And Laurent said it all, I think we've shown in the past that Alpine was really emitted to motorsports for a long time, but we want to do it, and we want to do more. This is why Alpine is the brand which is the most committed in a world to FIA championship. And you can see some examples behind me like GT4, for example, you probably saw yesterday, the podium in [indiscernible] that shows the commitment that we have to U.S. but also to Rally world. Of course, we've got Le Mans [indiscernible] was presented 2 weeks ago at Le Mans. You have also the rally, which is part of the DNA of our brands for a long time. Also the customer competition or the cars we do for the customers that are able to drive our cars, the esport where we invest massively and we generate tons of fans everywhere in the world. And of course, at the center of everything, you've got Formula One. Why do we think that Formula One is the best thing to start with the -- sorry, I did the wrong way -- to start a franchise because F1 has a momentum, which is absolutely amazing. If you look at it from any angle. First, if you look at the global expansion of the sport, F1 is everywhere in the world now, 24, we talk about 25 GPs next week -- next year, everywhere in the world. And especially if you look in the U.S. now with incredible success with 3 GPs in the U.S. in Miami, and Austin, in Las Vegas soon with incredible number of fans, incredible business that is organized around these events and the support of the fans is absolutely amazing. The second element, which is also very important, is the cost cap. We are in a world now where the costs are capped, which is, of course, very important because you can create value just by improving the top line and the costs are not linked to the top line, which is created. So you create an environment which is economically very good in order to create this kind of franchise. And the third element, maybe the most important is the media coverage and the fans support that we see here, which are absolutely amazing. We took almost 1.5 billion viewers on TV. We saw an attendance that grew by 39% in the last 3 years. You see the media coverage, which is absolutely amazing. The number of social media interaction multiplied by 5 in the last 3 years. So we have never seen so much fun and so much passion around F1. It's the perfect moment to build these kind of things. Of course, you see the result in our financial balance sheet. Only for Alpine, the sponsorship revenue of Alpine grew by 20% year-on-year to year. And if you look at the sports in general, it's almost EUR 0.5 billion that has been invested in the last -- since 2018 in the different teams. So why do we think we are very credible as a team in F1 to do that is because we are first year for a long time. Laurent, Luca said before, it's more than 45 years that we are here. So we are not -- we've got a lot of credibility and a lot of legitimacy in the sport. We work as team means that we produce or engine, which gives us an edge compared to the competition. We are also here in [indiscernible] in the visit 1,000 employees, super dedicated with a long experience in the sport. We won here for driver championship, 3 consecutive championship, 63 victory in GP and a brand with a long history of victories and who knows how to win. That's it. That's the proof of the commitment. And as Laurent said, we will be here forever, maybe. But we think we can do more. And in order to do more, we decided to partner up with Otro management, with Red Bird and maximum effort because these guys will help us to bring the franchise to the next level.

Thank you, David. I realized walking up here that most of you were probably expecting Ryan Reynolds. So I apologize after today's news. So we've been investing in sports for over 25 years. We've invested across various countries in the world across almost every single support. We've partnered with the Dallas Cowboys, New York Yankees, NFL Players Association, we've invested in football. Football, we've invested in basketball and hockey, Cricket in India. And so for us, when we look at sports investing, we look at 3 things. Number one is the valuable intellectual property. Number two, can we provide value to the investment we bring? And number three, do we have like-minded partners. As we think about those things and we look at Alpine, it checks every single box. So it starts with the partners for us, and it started with Laurent and Luca. And they came to us, which is how we like to start these partnerships because it shows that there's a strategic value that we can bring. And so that like-minded partnership is the most important thing because we have to start with people who believe in what we believe in, which is the ability to bring commercial revenues to the table to treat it like the scarce asset it is. So that's part one. And that was the easy part here. Part two is valuable intellectual property. And if you think about F1 or you think about investing in sports in general, I would say to people, this is the one business where you really should never leave your customer. I worked for the Cleveland Browns. If we could not lose our customers, then no one can basically. This is a job for American people, I guess. And so the beauty of sports is there's a tie to your brand that cannot be lost just because performance goes down in 1 year. And so that is the moat around the intellectual property that we find in F1. So if you start from that and then you look at what Liberty has done fixing the structure of the sport with the cost cap and then launching the sport in the United States, we think it's a perfect time to invest, and we think Alpine is the perfect vehicle for all of the reasons David just said, a works team, an iconic team, high-performance built into it, and the brand is just getting started. So that checks the box on the IP. And then lastly is how can we help. That's probably the most important question for us. And for us, all of the things we've done in our career, all of the investments we've made lend themselves to being able to help here. So we built a company called Legends Hospitality when I was at the Dallas Cowboys. We essentially outsourced food and beverage and sales sponsorships and ticketing sales. We've built a business called on location experiences with the NFL as an equity investor where we took the hospitality around the Super Bowl to the next level. We've invested in a business with the players associations where we built a licensing business around video games and trading part. And all of these experiences will lend themselves the success here. As we look at the sport, we think it's incredibly well run. The team is incredibly well run, but we do see a lot of upside the same way we saw it when we invested a few years ago and Cricket in India, and we are proving to be right. So I really appreciate the partnership. I appreciate the people at Alpine and Renault for welcoming us, and we can't wait to get started. Thank you.

Thanks, Alec. Thanks, David. Yes, we said that we only select partners to add value. I'm pretty sure with Otro Capital, Redbird, maximum effort going to unlock a lot of value. What's also important is that we're going to reinvest some of that incremental value into the team and therefore, feed another virtual circle to accelerate the program of catch-up that we've already started 2 years ago in order to be at the level of the very top teams. So the idea is also to reuse that in terms of performance booster. Now having said that, I'll go back to my asset-light model. At Alpine, we feel like, of course, we asset light in terms of the way you define it classically, but we call ourselves asset right. Asset right because, yes, we have a strong network of partners that we can lean on, when it comes to competing with the pure players that are usually built around the same model. But compare to them, what we do have that they don't is a history that we can sum on. It's the racing legitimacy I was talking about that we can really leverage to extract more value above and beyond the competitors. And this is why we can focus on developing the technologies, the products, the services that are very essential to support ascertain our claims. I mentioned the APP, which is going to be extremely critical because it will keep lightness and agility at the heart of whatever we do, all our sports cars. I could also mention the Alpine dynamic modules which basically will take advantage of SDV to develop very specific modules that are going to enhance the sporty drivability of our cars. We will also, for instance, develop, I mentioned that already a couple of times, the possible powertrains of the future that could complement nicely the EV lineup that we have. So have been, in fact, can develop the very specific assets that are making our brand distinctive, and so doing, we can develop the drivers of competitive advantage, if you will. And the driver of competitive advantage are actually also being developed in other drivers of competitive advantages, which are centers of excellence. And that's why we really like asset right because we have some assets and they're all put to very good use. It's all a high-level top-notch quality assets. And we decided to be Enstone today, it's not the confidence of other show. It's one of those assets. Enstone is basically the quintessential excellence of engineering, the motorsport pinnacle, if you will. So it's the reason why we're here today because the people of very and Enstone are working tirelessly to bring Alpine and the on back at the forefront of the grid by doing truly like pieces of art in terms of engineering that we use in our, of course, race cars, but like I said also in our sports cars. So it was also an opportunity for us to pay a special tribute to the people of F1 of the 2 sites. And to see a bit more about their job, the dedication, the commitment which I'm sure you've already appreciated during the tour. I'll have a little video I want to share with you. [Presentation]

So it's a little bit of behind the scenes. You've seen it during the tour as well. It's important for us to show you that because you can see that there's way more than just like people running a car on a weekend, which itself, is already a very, very complicated task. There's a lot of know-how. There's a lot of knowledge, a lot of expertise that goes into that. And we use that in our cars. We truly use it. There's a lot of technological transfers that are operated between the sports car branch and the rest of the -- I mean, the racing branch and the rest of the lineup. We, for instance, share between all the 3 branches expertise on EV, how to use and maintain a battery charge and how to deliver talk whenever needed, but also knowledge around everything that increases, for instance, the range, aero mass reduction. So all of this goes into all Alpines. And that's why it's important. It's not a made-up claim that we are a true racing brand. So there you have it. Alpine is the brand built around a sport franchise, leaning an asset right model, developing a full lineup enabling global expansion and driving profit. That's more or less our business model, our operating model, if you will. So now it's the last stretch. I'm going to give you a bit more insights on the results. The goals we're looking at. But before I do that, I wanted to share with you a the light, if you will, on 3 tenants of our operating model. These are 3 pillars that we believe when combined to our operating model, like I mentioned in the strategy, we'll probably provide business apparently. These are equal opportunities, environmental sustainability and take for good. And I'm going to give you a bit of details on it. Equal opportunities is a cardinal value as a matter of fact, at Alpine. It's the firm belief that your commitment your hard work and your results only should be the sole determinant of the opportunities that you are given. It's -- we feel like it's a healthy fair value, but it's also a way to increase immensely your talent pool, the available talent pool because you suddenly don't limit yourself at the degree or diplomas. So it's really something critical. It's also fostering durable superior performance because it's made on tangible results and not claims again. This is the reason why we partner with our ambassadors Zinedine Zidane because the equal opportunity is something very important to him. So it's a perfect sponsor for all of our initiatives. I'm going to mention here 3 programs that are important. There is plenty of them, race her, as you probably know by now, which is a program aimed at promoting women at all the ranks across all of the divisions at Alpine from the workshop up to the driving seat, hopefully, one day, very important program for us, a big bet that a few people to entities make and that will be leaving the CEMA, the Concord Excellence Mechanic, which is a program designed to detect young technicians and open the gates of F1 that would be otherwise close to them in order to bring those people into the team and it's good for them. It's really good for us as well because it brings new talent fresh talent, new blood into our team. And then the driver academy is another very iconic program, which, of course, support building drivers in making their passion hopefully a job one day. And we have all of the sports discipline to find them an outlet. So it's all consistent and it's all virtuous because we basically source the people with the right values from the onset, so they can become true drivers, true members of a band of racers, if you will. Another pillar, like I mentioned earlier on, is environmental sustainability. A lot of people leave that as a constraint or as an obligation, we embrace it as an opportunity. There's obviously the nonnegotiable. Net Zero production, of course, is one, and there's the choices we make. We're investing a lot in both process and product development. to leverage the opportunity that environment is providing us with because it can become a source of competitive advantage, and we believe in it. Of course, 1 tangible example is the 100% EV lineup that we are building. We believe that we can combine our expertise in EV but also in chassis and sports cars to create the spot cars of tomorrow. But we will also develop other things such as specific race seats made of entirely recyclable durable and lighter fibers, such as hemp in the case of this picture here which actually provides even better feeling for drivers and obviously, superior performance. So as I said, if correctly harnessed, this can become a competitive advantage, and that's something that we pursue actively. And then the last, but not least is the objective to promote technology for good, which is something a bit different a bit new because we have those 900 technicians and engineers available and all of this human and knowledge capital available. We figured that we could put it to good use when they are not busy developing race cars or sports cars, which is rare, but it happens. And so they are mobilized whenever feasible, whenever there is a possibility, a capacity -- possibility. On projects with external partners that we deem are making a positive tangible impact on society. A couple of examples here amongst the 5 customers that we have since we launched the lab in September 2022. We developed -- we partnered with a company [indiscernible] developing exoskeletons, which basically promote safety and performance. So we feel like it's something that can improve a lot the way you conduct a couple of things, whether it's leisure or professional activities. We developed -- we codeveloped with [ Aqualis ], ultrafast, low-carbon boats, which basically lend themselves for cleaner transportation and we also develop with IQ endoscopes, specific devices, connected devices, which provide for smarter possibly more reliable health practice. So all those 3 pillars are critical to us because they make sure that you can always achieve your targets, but you can achieve them not in the right way. Those keep us through to a mission that we believe is more sustainable. So now you have a better perspective on our positioning on our assets. So it's basically time to wrap up. Luca mentioned that already, we're growing from a niche to a global brand. We have 3 phases. The first one is finishing this year, it was started under Renaulution when we created the fully fledged brand that Luca was mentioning, the business unit. The goal of this phase was basically to grow the brand awareness through F1, obviously, the central pillar of our strategy in terms of media visibility and racing legitimacy, as I mentioned. Through the A110, which is also providing us with our racing legimacy and we're maxing out the visibility of the car. But it's a phase of investment. We're basically investing -- we have been investing and that's what Luca was referring to when I was saying the stuff that you wouldn't see under the radar. We've been investing heavily in the product in the commercial network in the industrial network in the marketing means, you name it. It's the time where we've been creating all of the elements that are going to be put to good use in the second phase, This coming of age I'm mentioning here that will span from '24 to '26 in which we're going to roll out our first batch, the so-called Dream Garage, the first 3 cars that we had in sight when we launched the brand with an objective to really grow the brand, at least in all territories. So you can see here, we want to move from more than 50% of the sales in France to two third of the sales outside of France basically max out the potential in Europe for which we have prepared the ground already. Luca mentioned the fact that we moved from 70 to close to 150 point of sales at the end of this year. More importantly, we want to reach breakeven. This is the first, I guess, target that was set by Luca for the business unit this is something we've never compromised on and we're well on track for that. Of course, during this phase, we're going to create revenue we mentioned here to be in revenue, Luca mentioned that earlier on, but we'll also reinvest to create the next batch of the lineup that I touched upon during this presentation. And this next batch will enable the third phase. I was about to say the last phase, but it's probably only the beginning which will allow us to start looking abroad, I would say, and expand globally. And by then, we will probably become truly a global sports brand and franchise with half of our sales anticipated to be outside of Europe, driving profit, and that's the double-digit profitability that was mentioned several times today. And we will reach up to potentially EUR 8 billion revenue if we look at all the territories. So I think this is an ambitious plan, but I think we also have most, if not all, the tools to accomplish it. And Stay tuned for more help in news as we enroll new elements of the plan pretty much like every six month in the future. And in the meantime, Luca and I are available for your questions, I guess.

I think you are the [indiscernible]

Please do not forget to introduce yourself before asking the question. We will start with questions from the room. But for those who are online, you also have the possibility to ask your questions. So we now have a question from George Galliers, Goldman Sachs.

Yes. Thank you for a very interesting day and for the presentation. I had 2 questions. First one is just with respect to the Alpine brand, Obviously, you're targeting more than 50% of sales outside of Europe by the end of the decade. But beyond the A110, the impression is that the next wave of cars will be smaller cars. So can you just sort of square how those vehicles, in your view, will fare in international markets, particularly markets such as North America and potentially China? And then the second question is just with regards to the Alpine line branding, which we're starting to see on some Renault cars. What is the mechanism in terms of the reward for Alpine financially for that? Is this a royalty payment or some other kind of mechanism? And is that part of the revenue projections for Alpine.

So I'll take the first question, at least in order. You said smaller cars after A110, is that what you said ?

The next car we have seen.

Oh yes, the next car, the A290.

So perhaps you give us some sort of insight into what comes after that? And how we should think about, where the brand is positioned?

So maybe we could have the slide showing all of the cars in the market, but that's fine. I can comment without it. So yes, the A290 is an urban racer as we call it. So it's a hot hatch. So it's smaller in a way, but it has 4 seats. So it will expand actually our customer pool immediately because we know that a lot of the people that want to buy an Alpine an A110 actually stop there because suddenly they realize that it's not gonna carry all the family. So it will probably expand a little bit the reach after this car duo comes the seat crossover. So it's a much larger car, bigger cars, its 465 meter. So it's a true 4 seater as well. It's capable of taking people on a highway for more than 500 kilometers. And we don't communicate on the exact figure right now because we're still working on the technology, but guaranteed more than 500 kilometers of range. So this is like going to expand big time our reach. Yes. [indiscernible] And then after that, you saw the A310 is also a 4 seater, 2 doors, 2 plus 2 sports car. And then perhaps in the middle of that, very likely, we're going to have a D&E segment coming in. So SUVs, much larger. So it's only going to bigger and bigger and bigger, in fact, which are cars adapted to the markets we look at and especially the U.S., for sure. I think with that, I'm complete. And then on the Alpine line, I will probably leave it to Luca because it's both of our brands. But we collaborate with the brands in order to define what's the content. And there's a mechanism, yes, that makes it all for everyone.

Maybe what we are doing is actually -- you don't have to look at the picture. You have to look at the movie, right? So we'll start from the segment to segment cars because this is where we have assets already. And then we will move up and as we move up, the more we move up, the more chance that will have to go beyond Europe where normally people buy compact cars. So in Europe between 3 meter 90 and 4 meter 60, 65 , you have 80% of the market, not because people don't have the money but because they just like they need more cars, right? -- was you don't get into a parking lot in Paris, for example. So it will be very careers the whole thing, right? International expansion and lineup expansion and also from an economical point of view, we are not remixing. We actually upgrading the range. So the average, let's say, the average price for Alpine grow, which is a good news for the business. Let's say, the story of the, let's say, Alpine was -- you have to understand also where we started, like, we have no money. And I have no possibility to finance Alpine 2.5 years now we come up with the idea,that Renault was selling very few, let's say, high hand trims because the strategy was wrong. And so I came up with the idea of why don't we give it a spirit, a sporty spirit and we take only the flavor of Alpine with the colors, the materials, et cetera, et cetera. And maybe you also have potentially an upgrade where we ask the Alpine engineers to give it a kick in terms of technology, and we're going to do Alpine, SP Alpine both design and technical. And we made a deal at that time to actually help Laurent and his team that have no money. At every time we will sell an Alpine, Renault Alpine, SP Alpine, then Renault will pay because at that time, I was also the boss of Renault brand. Renault will pay a royalty to Alpine users, so that we could do what we had to do. And it was pretty -- even in our first forecast, it was enough money to play around a few things and develop some of the ideas, et cetera, et cetera. And I remember that we used to do probably, I don't know, 7%, 8%, 3% of high-end trims, sporty trims that Renault with Renault Sport batch. In some cars, [ Asprel ] Alpine is 50%. So now we actually have the opposite problem that the guys from Renault don't want to pay all that money to Alpine anymore. But for him, it's good because he can have some resources. And I'm not sure it's diluting at all the thing because it's just like a flavor. It's a bit of a dream. The fact that 50% of the people buying [ Asprel ] Alpine, it tells you also about the potential of the brand. And if I'm driving my [ Cleo ] and I want to participate somehow to the dream of somehow owning an Alpine. And this is not unique. I mean I remember doing the same thing when I was at Audi, with the red rumbo on the S line versus the RS . It worked very well. It was a very, very good business, I think so. I think that the more we are authentic, advanced on Alpine, the less the risk is that people make up, I think. So we don't want to exaggerate, but I believe that now in the Renault Group with [indiscernible] entry price thing. Renault coming back into the core of the market, both in mix and in technology with electric. And we put Alpine on top. We're probably one of the group that has the clearest hierarchy of all brands. There is no overlapping between the things. And you have a lot of groups that have a lot of issues to manage brands that means basically the same. And that's also an outcome of a very good work strategically we did together as a team. I don't know why you're laughing.

Question from Pierre-Yves from Stifel.

Bonjour. Pierre-Yves with Stifel. Actually, I've got 2 questions. The first one would be on capital allocation. You mentioned that Dieppe plant was running flat out with roughly 4,000 cars planned for this year. In '26, you probably plan to produce 40,000 to 45,000 cars and in 2030 probably 150,000 cars. Where do you plan to manufacture all those cars? Will it be at one of Renault plant? Or will you rely on other partners. Speaking of partners, you welcome today for Alpine racing, a new financial partner which is great. Can we talk about an older one.

For me an industrial partner [indiscernible] I think it's important that it's just a question of money. It's a question of doing things together because they know how to do things that we are not able to do, and that's the beauty of it. Right.

Okay. Duly noted. Regarding older partner Gilli, where are your relationship with Gilli lately, between Alpine and Gilli and Lotus.

So in terms of capital allocation, I mean, we're going to clearly use the [ app ] because that's our capital, if you want. So we have to make -- we have a few decisions to make. But to assume that will continue to be flat out and probably also developments of volume. And we -- it's already embedded in the plan that the seat crossover and that the Renault 5, the A510T will be produced in a duet. So that's a great advantage because we have the platform already installed there with Megan, [ Semic ] and the Renault 5 Renault 4. So we can really use a very, very efficient, let's say, plant and platform. So we will make the cost of the car also very, very competitive. And we don't have to invest in Giga factories. Everything is there. So that's the beauty of the store. And then we will see for the others. So I'm not sure I get the question on the partnership, et cetera, what was the pressure. What does it mean for us.

Where are your partnership or your project with Lotus currently stands.

I mean on the -- we have decided that we would develop our platform because it's a bit -- I don't know if -- it's a bit like Porsche, we'll never lose control of the platform on the 911, right? So it's the core of the thing. So that's our APP. So it gives -- it's a pivot that creates value and gives that to the whole story. So we had a very good, let's say, discussion for a long time with them. And then we have realized that we had to produce the thing in our place on our platform. It doesn't mean that we don't have options in the future to do stuff with them as we are doing like with Gilli in Korea, between Renault and Gilli Korea or the thing we are doing with on the engine. So as soon as some opportunity will raise we will look into it. We have a very fluid relationship with -- it's a company that you can really admire. You have a lot of things, a lot of content. So if you look at the latest product from low to electric SUV, they are pretty impressive. So they can do stuff. And in that phase of sports car, collaboration in the future is, let's say, is -- I mean it's very needed because of the volumes. So you've seen some news also coming on from other competitors. Everybody is trying to share a little bit because , you have no size. The advantage of Alpine is that we have an internal partner, Alpine as an internal partner that is Renualt group. And then, of course, we will be looking at other opportunities if they come.

I think we've got next question from Harald.

Harald at Citigroup. Two quick questions. One sort of strategic for both of you really, We saw with this previous luxury IPO has been very successful. But as far as I'm concerned, it was all about the independents, right, taking the luxury brand away from the big company. And it was pretty clear during the process that the management was really looking forward to making those decisions for themselves in terms of what product to go to and whatever, right? The market valuation is very clear, right? Growth and return on capital are far more important than size, right? How do you ensure that independence for Alpine within your plan, right? Is the EUR 8 billion turns out to be a little bit aggressive on volume relative to consumer expectations or something. How do you decide right? In other examples, that independence has been lost a little bit, and I think the brand has been hurt, right? How do you secure this brand once you get that into the market, will the different pressures you're going to have between you. And then a slightly different question. But why is hydrogen going into Alpine and -- or is it going to be working very closely with hydrogen developments inside of Renault. I don't really understand why it would be inside of Alpine otherwise.

We didn't talk about IPO. So don't worry relax. And we didn't talk about the fact that Alpine will be the only brand doing hydrogen. We are doing that for commercial vehicle. It's already in the market, right? So -- and I'm looking also maybe potentially for solution on the Renault brand that might not be putting, I don't know, developing a V6 engine hydrogen to go racing, thats the different story. So -- but I think that you need to give you -- especially in places like Alpine, you can never close the door to the future. You got to give these guys the dream of doing something very vanguard and the option that they've chosen is to take -- instead of doing a meat power fuel cell electric solution with hydrogen to go for combustion engine because racing car, they have to make noise. And I think that is as simple as this. So it's not -- it is not dedicated to the Alpine. On the rest, we are not making -- right now, it's the time to -- we have already done a lot of work. We have assets, we have arguments, we have technology. Now it's a matter for the team to get this plan to be implemented. And then we talk about what all you were talking and return on capital, et cetera. So I think I can tell you one thing is the plan is financed. So I'm not -- I don't need cash to do all that was written on the chart. This thing every time in Renault since now 3 years, we are always filtering project based on a certain level of return on capital employed. It was not the case before. That's why when I came, I had ROCE at minus 10% at Renault, okay? I can guarantee you that below 25%. ROCE, we don't do anything, okay? There's no life, okay? So you can imagine that Alpine is qualifies for being one of the [indiscernible] is above this thing in terms of the return on the capital you invest. And for me, it is important, we said we say 10% double-digit margin. It could be -- I don't know, it could be 11%, it could be 14%, it would be 13% but it is important for me that Alpine as we are committing as a group to be a double digit in that horizon of time, there is no way business like Alpine should be dilutive to the rest of the group. That's why I give the task to the team, you go double digit. If they do twice that, I'm going to be happy. And if there is a space in the market where you can do really good retruns and profitability percentage exist is Alpine. So they are likely to achieve this even in a more natural way than the business on Renault. So I am pretty confident that if we do the right thing, of course, compared to Renault, let's say, [indiscernible] is already there. Renault will probably get it in a few years, and they still have to build the whole thing. But if you start with the right mindset, then you get there, and the in segment where they are working is probably more naturally you bring double-digit profitability. That's a little bit the description of the situation. I don't know if it answers to your question.

Like you say, when we get to sort of 2028, '29, maybe we'll think about that again. But you understand the underpinning things super important right.

Let's say you can always make it a very complicated governance, governance discussion on rules and so. But at the end of the day, it boils down to people in a company like in life, right? So for sure, I give them independence to do the things in the sense that I give them responsibility to do what we have agreed. And I put, of course, pressure like I will be a shareholder, an activist shareholders so that they can deliver what they promised to the markets, to the company, et cetera, et cetera. But it is clear that the whole spirit of bringing people, pushing people and resources down in the organization closer to the market, closer to the challenge comes with the level of responsibility for these people to deliver what they have to do. But at the same time, I give them the keys of the house and say, okay, this is the thing. And hopefully, I have to be also kind of somehow the person that ensures that kind of business. And I can leave it to Laurent, of course, will not say the contrary. But I think I give them a lot of freedom. Otherwise, in 2 years, they would have not come up with a plan like this. In the classical world where I don't know how many things we did, a platform, the engagement from below 1, 6 or 7 products that were not there. This is the best let's say, I think, proof that I'm pushing the guys to do their job as simple as that, without having a very complicated governance rules that are important, but in the start-up phase, I think, is more important in the mindset. But do you want to say something to deny what.

No, no, no. I can complement. Yes, I mean obviously, the governance at the moment at the very least, it's been 2.5 years. So I guess it's a sign that it's a governance that's working very straightforward. We have a road map we do what we have to do. I come back to Luca and the Board of Renault and Board of Directors. Every now and then to explain in more details my ideas, my plans, my deviations to the plan. I get held to high standards, ROCE, NPV, operating margin. And if it doesn't work, I know the answer. If it does work, I get an opportunity to come back 6 months later. And in the meantime, what I do, to be honest, is rather me annoying him because I know he's been done -- like it's done that for a living. So it would be a bit stupid not to use a page or 2 of Luca's book. So that's about it. That's the way it goes. And this is how we came up with A310, where we had -- obviously, we wanted to do yet another sports car because we felt like a straight two seater was a bit limiting. And so we came back with the sports car. And we've look basically with back and forth, we ended up designing more or less not design, design, designing the A310 in terms of what it is going to be, where is it going to be positioned in the market for maximum success as a complement to the that it works that well. On hydrogen, I know it's a bit weird to come back from such a high-level topic to the floor like that. I want to say that we are the lead, but we don't do it alone. We are the lead because, of course, when it comes to like running V6, delivering 600, 700 horsepower, we're best positioned to do that. But we work, like I said, briefly in the presentation with the Renault Group because, of course, they develop their own hydrogen solutions, more on the fuel cell side. And that's also why we pursue hydrogen because we feel like it's a very compatible source of energy with electricity. It's basically one way or another. You move into the fork, you can do one or the other. And we work with the group also on the tanks for instance. On all of the vehicle architecture because we basically just provide our expertise on the power in it because that's what Veri which is a most separate entity. It's a high-performance powertrain. They don't do just F1. As a matter of fact, Veri is not no for instance, today, we talked about RedBird, RedBird is a partner of Alpine, of course, but the investment is into Enstone. There is a bit of a different story. That's why we have the lead on that. It makes sense because this is where the expertise lies. But we share it with the group back and forth. It's like -- as a matter of fact, most of our engineers are Renault people, we all Renault people by the way, our Renault people coming from Tecnocom going to VAE, going to the release. We have a lot of rotation of knowledge that's exchanged. So we just believe

We now have a question from Thomas Besson.

Two questions that are connected to each other. I mean, the Alpine brand, as you said, was founded by a French guy I think mostly not in France. So can you talk about the -- beyond the partnership you signed in the U.S., what kind of distribution model or partnerships you plan to develop to make eventually one day a global brand and remind us exactly what was the share of France in your total business in '22 or year-to-date. And the second question, can you help us understand how you are going to differentiate and avoid confusion between Bruno and Alpine because you've decided that Alpine was a face of Renault in Formula One. Well, the history is with Renault Motorsport not with Alpine. So are you going to make that differentiation, knowing that the next car, the A290 is visibly Renault 5 with a different color. And how are you going to make sure that this is well differentiated for customers, and that it doesn't bring back that kind of confusion.

So on the U.S., we haven't signed anything yet, to be honest. Nothing is fine. We work with a partner, a possible partner, a thought partner, like I would say, because they know their job, and they are also personal relationships there. So Luca and I, we know McManli, so we figure it could be a good opportunity to explore. They were keen. Why not? So we're doing it. But there will obviously be a good candidate, but for now, nothing inside. So your first question, unfortunately, that's pretty much all I can say about it. I mean, the sales of the share of friends into the sales, I wouldn't want to say anything wrong. So I suggest that David will give you the exact number for I'd rather do that don't make a mistake. On the Formula One, A290, Alpine is the face of Motorsports at Renault today. So if you have that question, it means that we haven't really fully accomplished the mission because this is only Alpine, the fact that the A290 can be assimilated to Renault, I don't know what was exactly your question?

Heritage of on Renault motorsport and you're putting it Alpine I understand that now, today, Alpine the brand you want to use for Renault Group, but effective history with Renault motorsport what I'm saying is it the A290 looks very similar to Renault 5, just blue instead of [indiscernible]

So there's 2 things in your question. First, the portion of Les rules, which is the place where we developed the sports cars for the road was indeed before working on Renault sports, but they basically the motorsport division of the Renault Group. They were not worrying color specifically. They're now folded into the Alpine division because we continue being motorsports. It is -- it was Renault because they were doing motorsports for Renault, they are doing motorsport for Alpine. They're more of a center of excellence than a brand themselves. And that's 400 people out of the 2,000 in Alpine. So I think Alpine remains Alpine. The A290, yes, it's a car that looks like the big sister of Renault, which is normal. This is a choice we made in terms of developing a car because partly, this is also what Jean Radle was doing because you were mentioning him, he was taking a car Renault car and like overcharging it, supercharging it. We figured the A290, the 5. First of all, because it has a history of Alpine true predecessor, the real 5. And then second, because it's a great support to showcase our capabilities because we're basically going to supercharge this car, electrified over and beyond what it has already in store and show the difference between Renault and Alpine. The way Luca mentioned that, it's 2 different positioning. No one will be able to mix one for another, even though they look similar. We're going to showcase what we can do with it. I think it lends itself well, it's a hot hatch. There's a category for that. So we figured we should do hot hatch. Why not? We can.

Maybe I can complement on what Laurent -- I went through a couple of exercise like this, in my career. And it actually worked okay? And I have to say that I never had in my hand, so many good ingredients to do something even better by noting. And you can't look at the picture you cannot only look at the picture, you have to look at the whole movie. This thing is in the making, right? And the destination is, by the end of this decade, you have 2 brands that are very, very differently positioned. And the substance that is behind the brand will be much more differentiated because of, for example, the decision we're making on the platform or the fact that Alpine will clearly be in segments for example, where Renault will not be much more differentiated than other groups that are using this exactly the same technology to do different brands. So I can guarantee you that we will ensure because we know the business and we have a lot of respect for the customer to put the money that they find very different ingredients, within Alpine, Renault and [ Dutch ]. We're not going to mix up the thing. On your call for Renault sport to be the real brand, I allow me to disagree complete into the thing because between the pedigree for sports, for car enthusiasts, people that know the history of automotive [ Audio Gap ] another pedigree and I remember looking at the data what was the impact have been one, the marginal gain for Renault have been like this because Renault -- I don't know it's already well-known brand. But for Alpine, that is an unknown brand. As you see like limited where the number is 50% of the sales of Alpine in France than I think it was last year [indiscernible] was much bigger. So it's a much more sensible business decision to paint the car in Blue France and to become the national team of France in Formula One, and we are seeing that already from numbers. And you need to give it a try and wait and look at the video because if we do the right things, and you create an authentic brand that has something different to propose, the Americas Chinese [indiscernible] knows better than me, notable brand. So you need time [indiscernibles's]

[indiscernible] So we'll have a question from Stephen Reitman.

You hit the revenue is under EUR 1 billion. I wonder a bit more specific on the [indiscernible] at the moment. But if you could say how it's trading at the moment? And secondly, your point about making clearly, the new electric car that coming out is going to be obviously the sport and really our whole essence of Alpine, and that's a differentiating factor. What does it mean for Renault with the Renault 5 itself? Because clearly, you've gone the way you've made your -- the rental vehicles, more expensive vehicles have been the sports here and anything like that. Do you think there's actually a scope for Renault also then to find another niche to go higher to justify higher price, higher price positions for, let's say, for the high versions of Renault cars as well, if Alpine is monopolizing sporting as part of the equation.

I think I can maybe start from the second. I think there is a space for -- we're doing what in Europe, for example, at the global level, we're doing probably something percent, 3-point-something percent market share. And in Europe, we're doing a little bit more than 10% right now. So we have 90% to go that is space and you need and you need to actually position the brands in a way that is simple for people to understand. And of course, I will have to make the decision to limit Renault to leave room to Alpine upwards as much as I'm trying to shift renal actually in the place where it belongs. The problem is that Renault was too much down market. When I took it, 70% of the volumes selling to Ingos and Clios, but Renault used to sell Meganes and C segment cars in quantity, et cetera, et cetera. What we're doing is just bring back Renault in the place where it belongs. That means in the heart of the market. And now, of course, you have the challenge to switch to electric. So we try to leapfrog and to be with Renault some of the ones that do it faster than the others, it's simple this. And then we grow. We grow a high-end market thanks to the credibility and the work that will be done on Alpine because historically Renault never succeeded in the high-end market. I mean years ago, when I was at man, I don't know, you can't believe out difficult it was to sell upfront to a deep blooding state. So we [indiscernible] align all this -- so there is a net -- that's a pay where you have a whole thing -- that's very simple. It's kind of very, I would say, vertical distribution of the thing. It's not very complete. We only have 3 brands. So it's not complete when you have 10, 12, 14. But for us, it's very clear, and it will give us an advantage because it's sharp. And on the money, I think much sure we're doing like EUR 400 million, EUR 500 million.

A bit less.

Yes. So it's right now with 1 car you can make the math very easily. We sell 4,000 cars at EUR 60,000, UER 70,000 can understand where we are.

A bit more than that.

Yes. Now a bit more. So it's -- but you can't look at Alpine as a brand today is a monoproduct thing, and that's why we are here. And I think that many of the questions, we should have probably done, let's say, the press conference after the presentation of the product because many of the question -- or the answer to your question, you will have by looking at the cars.

What I can say is that we are -- we have milestones inside the group, obviously, until breakeven and after. It's basically the maximum losses that we are allowed because at the moment, obviously, we are in that phase where we invest, and we head in most -- in all our exercises because we sell more because we're raking more revenue from sports because we're more virtuous on operations, thanks to what's happening in the group. So that's why we're confident that we're going to reach breakeven. It's trending in the right direction. You never know. We might end up selling 0 to A290 or see crossover I doubt. But for now, so far, we believe in our projections.

What the modeling we had -- we also do modeling. But the modeling 3 years ago, I think we are on the good side of the equation. I have to say. I remember when we were first discussion on how to build that being, we were much more conservative than what's actually happening.

Mostly because -- I mean, it's a small figure at the moment. Obviously, you can make the math, as Luca said, but Nobody anticipated that the A110 will continue selling so strong. It's been 7 years now. Once of the time the car sales are declining it's ever stronger. We're breaking record 1 year after the other and the profitability follows by the way. So.

So well, we've got another question in the room, and then we've got questions online. So Mr. Please?

[ Alex Renault ] from Asset Management. Good afternoon. I have 4 quick questions. First 1 regarding fuel. What do you think about about it? And it included in -- when you say you speak about combustion engine with hydrogen do you mean if you do pure hyrdogen. First question. Second question, what is the net investment or net cost of the group on in racing Formula One and race and so on. I wanted to have just an idea about the investment, which is which is spent in this division. And third is related to your new launches you will do. So we know next year is a new Alpine -- but after there is no date or I didn't see any date for the new model you will launch in the next few years, you could have a little bit more information on it.

I will answer the first 1 or 2. So if you will give it to horse because we're having out the, let's say, the engine division of Renault, as you know, bringing that together with Gilli and potentially having an oil and gas company to enter exactly to reinvent the combustion engine, look at the product from the fuel side. And the, let's say, the godfather of if you will be Dacia because we think that this is the smartest, let's , and cheapest way to decarbonize. So it makes a lot of sense that, let's say, Dacia takes ownership of that. Having said this, the Dacia guys will work with LP because by 2026, e-fuel will be in Formula One, so a lot of the research that we do on combustion on if you so Formula One, that means it starts tomorrow because we are already developing the engine, then maybe the guys in Horse and therefore, Dacia will benefit -- that's the way it works, right? But everybody has his own combat. So Dacia about e-fuels, biofuels, all alternative fuels for combustion because they will electrify later. Renault goes into pure electrification, pure EV gives a platform when it is needed and when it makes sense to Alpine.And that's -- it's a kind of all business are independent, but we have somehow a connection between the different parts.

[indiscernible] with e-fuel is possible.

No, no, no. I said an Alpine Formula One is certain because it's the Formula One Yes. But you've got to be a little bit sharp. Otherwise, everybody does everything, okay? And the call from them is that they might look for combustion -- clean combustion with hydrogen rather than if. But some of the fuels are technical or propane. So imagine that there is a regulation that enables us to run a combustion engine maybe yes, but I think we have to be a little bit sharp. And we need to develop high-end, super high energy electric cars that are light, so you have a small battery and then well distributed on the chassis. So the thing is nimble agile. I mean, you can't do everything, right? So we have to be dividing. So that was the question section.

[indiscernible]

We used to spend like the thing would cost us a little bit above EUR 200 million cost -- net cost at the time. I'm not going to tell you the number now. We're still not in breakeven, but I think that with the support of , for example, even from RedBird we're sponsoring what we're doing with the cost cap, et cetera, with the fact that we might work on different motorsports platform altogether, some of them are more expensive others that may be profitable because you have, I don't know, customer racing people that pay for the thing, and so you have a margin, the idea that within 1 or 2 years, we'll be breakeven on the motorsports. That's the thing. But -- and then we developed the business. So yes, it used to be a cost of the marketing, let's say, budget we're going to reduce this pace. It's already the case, by the way, because of the work we've done on the sponsorship and because of running Formula One is less expensive than they used to be before. Because before, you had to you had to, let's say, engage with people that were spending double the money. Now everybody spends the same, right? Whether you have, Ferrari, Mercedes, Alpine et cetera, Mclaren. everybody spends the same and it's much lower than what they used to spend. So it became easier to do. So target is also 1 day that the motorsports activity will be on a breakeven. Yes. And the third question was.

New launch.

Next year is -- no, '25.

No '24 [indiscernible] the A5T and the sequence of '25 and then all the others will come. So as Laurent said, every year, we have more or less model lineup for the well enter new segment. So duration is very strong.

I'll take on the questions. And the last question in the room. So I've got questions from Matthias Schmidt. Is China part of the growth strategy given the current trading conditions. Another 1 is do you confirm you will address the U.S. market with a 100% electric lineup with 100% electric lineup. So China and the U.S.

So you want to say this?

So the first question about China, I didn't catch it entirely. What is the question.

Is China part of the growth strategy given...

Yes. It's embedded in the figures you saw. It's now it's an opportunity because is less developed, but our lineup is attached to -- I mean it's designed, sorry, in such way that we can go to China, and we haven't bid in our lineup, some figures for China that take into account some elasticity because we don't produce in China some volume. So that's what this U.S. definitely. It's a bit earlier in time. We designed our lineup specifically for this as well, and we are more advanced into the good market, even though we cannot say much today. We anticipate to be able to reveal a bit more in the next year or so.

We'll now take the last question from [ Erin Cosman ], Barclays.

I came up earlier, but you didn't really comment on it. Would you be prepared to share the volume that's implied in the EUR 8 billion revenue figure for 2030, I think the number mentioned was 150,000, for example, so would imply [indiscernible] revenues.

You don't know me, do you know me. I never talk about volumes. Because when you give a target volume -- if I tell you 100 until I'm 99,000 a loser. And when I get to the 100, you asked me, what's next? So it doesn't matter. So it actually doesn't matter. So of course, we need to have -- get relevance for Alpine. So the brand is seen on the street, okay, so that people know it. But the most important thing for us is to do the right things, is to make money and to reach a sizable, let's say, a sizable business that will allow us to reinvest because this is techno race, right? So you need money. Of course, they can count on the group support. But in the spirit of this unit that are kind of independent, they have to they have to find their own life and they are financing. So I will not talk about volume on Alpine. You can make your math, but you don't know exactly the mix of cars that we're planning to do. Of course, the -- let's say, the more bigger car we will sell in richer market, the less volume will need. And that's -- but I have never mentioned volume, sorry.

So the reason I'm asking is for [ Alpine ], you've obviously given us a volume number, and it's quite useful in the context of the revenue target, and you've now recently in the press release also said you're looking to reduce costs by 40%. So just to understand, the overall framework in terms of revenue and profit per unit and how that system works is quite useful for us to understand.

Yes. But I think that in the amp case, I would not -- I would have no person, I would have not released a figure, someone did and then we were trapping to the thing. But there is easier because, in fact, what we're doing is let's say, switching Renault in Europe from a combustion engine brand into an EV brand. So -- and we do more or less that number, right? So the concept was, okay, as a regulation 2035 will force us to do full EV, we better do that 5 years before the others, and we switch. And we put in the condition of the brand because at the end of the day, regulation might be reinterpreted the markets, the ultimate judge of all things is the customer, right? So maybe people not everybody, 100% won't want to go for EVs and whatever. But more or less, the whole idea in Renault is to switch from being a combustion engine brand into an EV brand, and I have to work right from now to put the brand in the condition to do it. In the case of Alpine, it's a different story. It's a growth story, right? So I mean if you simply make the math is not very complicated, they're talking about the CAGR of 40% from now to, we sell 4,000 cars. You know more or less what we it's not very tough. But don't force me to give you the number because I think this is not a story of volume. This is a story of quality of the business. This is a story of growth, and that's what we want to do.

And just 1 clarification of me. I think you said you would make the new volume in duet, right, because it's already set up for the platform yet you have this dedicated APP platform. So you just clarify how it compares to the platforms you're going to be using in [ Ampere ]? And so why there's the synergy of making it in the way when it's.

Because the crossover is based on the CMF EV, every modified to ensure -- and you will speak later with Philippe on the technical thing and on the technical workshop to actually embed Alpine DNA on that platform. For example, we have heavily modified the rear axle. So it will feature talk vectoring a little bit like, I don't know, Porche, GT3, et cetera, et cetera, because we want to be extremely and agile to drive with even in a time where you have to carry a big battery to get to your 500 plus range. So that's the thing. So -- but the platform is the same. So it goes on the same line with 75%, if I remember correctly, carryover of parts, et cetera, et cetera. So the car, you will see completely different from Megane has nothing to do or [ Senic ], but the base is the same, and we put it on the way. And then, let's say, you have all the amortization that are on big volumes. So for a brand like Alpine will be impossible to spend billions to have a platform like this impossible. But this platform is used by us is used by Nissan, is Mitsubishi is something you would compare to an MEB of Volkswagen. So it's one of the biggest platforms on the planet, on that category of thing. And then the guys from Alpine, they come and they put some spice or even a lot of spices on it. But industrial, that's a very efficient way of doing it.

Okay. We've got a very last question from the BBC.

Yes. How is what you've announced today going to help you, particularly the investment going to help you win in Formula One how are you going to win in Formula One, given that you're not going to hit your targets this year it would seem? And how important is it to win in formula One for this brand-building exercise.

So the investment -- you mean the RedBird investment, right? Like I said, they're going to help us on the monetization side of the business. So strictly speaking, not on the sport side. Obviously, people here know what they're doing. People in [ VE ] know what they're doing. They're going to continue doing what they're doing. They're going to help us boost our revenue, hospitality, sponsoring, licensing, merchandising, above and beyond what we had planned. a portion of that, we will reinvest into facilities, into tools, into equipment. This is part of a plan that we already launched way before RedBerd joined us, which we call Mountain Climber, a plan on which we commented. You might have heard last year, automating. We are hiring 80 people. We're investing or there. So we're going to simply boost this plan, accelerate it even further in the limitations of the cost cap, obviously. So this is how it's going to help us indirectly continue on our path. The team is moving up. I mean, 2 years ago, we were a distant 6 really. We thought against self-author -- that was the fifth car, but they only had one driver. Last year, we finished fourth this year, it's a little bit complicated at the beginning of the season, and it's getting back into order. I hope. We're going to just continue -- we have road map, if you will. It's progress that you build one step at a time because it takes time to find that people find the resources to complement our team because our team is slightly smaller than top teams. So we're just going to continue growing, expanding up to a point where we have similar structures and the way of doing makes a difference. And we believe the way of doing will make a difference because we have expertise here.

Thank you. Thank you, Laurent. Thank you, Luca. This conference is coming to an end. Thanks, everyone, for joining. Investor Relations, Media Relations remains at your disposal may have further questions Thanks, everyone. Good afternoon.

Thank you.