Renault Sa Unsp/Adr

Good morning everyone. Apologies for this technical issue, so we will have a restart. That was the formation lap, we would say. So welcome to this Renault Group H1 2026 conference call. This call is broadcast live and will be available in replay on the Group's website. We are today with Renault Group's leadership team. Francois Provost, Group CEO, Duncan Minto, Group CFO, Fabrice Cambolive, Chief Growth Officer and Renault Brands CEO, Catherine Hatt, Dacia CEO, and Philippe Grieff, Alpine CEO. The presentation will be followed by a Q&A session. Please send me your question either by email, either through the teams, and I will read it to the management. Thank you. Francois, the floor is yours.

Thank you, Florent. Hello, everyone, or hello again. I am very pleased to be with you today. It is exactly one year after my appointment as CEO of Renault Group. I am also very proud, not only because we will present to you good results today, but moreover, because I feel that Renault Group is transforming, is accelerating our future-ready new mid-term plan. is already giving and delivering results. It is what I will present to you now. As you know, Futurity is four pillars. Growth Ready, this plan is a growth plan and in H1 we deliver plus 10% revenue growth compared with last year. Tech Ready to be at the best level for all technologies that matters in modern automotive industry. Excellence ready to be among the best for all what we can control in a more and more complex environment. And last but not least, trust ready, and this is typical Renault culture, our engagement towards our stakeholders, our employees, of course, but also our dealers, our suppliers, our partners. Let me start with growth ready. In H1, we deliver a strong new product momentum. Twingo's start of sales is booming. Nucleo is also doing super well with outstanding design but also against the success of our cutting-edge full hybrid technology E-Tech. I am also very pleased by the start of the new smart 4x4 hybridation of Dacia on the Duster and Bigster and in H1 we also start the sales of Alpine A390. Future Ready is also about growth outside Europe. We launched successfully our new Duster in India, our new Boreal in Turkey and Brazil, and our new Renault Filante in South Korea. As a result of all of this, we deliver plus 10% revenue growth compared with H1 2025. This is one of the main highlights. of today's results presentation. For Renault brand plus 3% sales, Renault brand second brand in Europe plus 61% sales in India. Dacia sells down minus 8% but plus 4% orders compared with last year. Dacia remains very strong in its business model, top 3 retail in Europe. And Dacia is also now moving towards electrification, a really top 4 passenger car hybrid in Europe. For Alpine, Alpine delivers a new record of sales with more than 8,000 vehicles sold in each one. EV is the core of Renault Group's strategy and future ready. Again, we deliver strong results in EV. Renault brand is now the number two EV retail brand in Europe. Renault 5 leads its segment. And as I said before, Twingo is off to an outstanding start. Beyond full EV, I would like also again to mention the success of our full hybrid solution. Together, EV, full hybrid e-tech, electrified vehicles represent two-thirds of Renault brand sales in Europe and also 31% of Dacia sales, up 7 points versus H1 2025. LCV is back. When I presented our results in Feb, I told you that the complete reshuffle of LCV business unit was done and that I was optimistic about the output. We see at the end of H1 2026 the concrete first output with sales per 12%. We are second in Europe for LCV. I am very proud to have the new master leading large van segment. But what I would like to mention to you today is I feel we reached a tipping point for electrification in LCV. Our sales for LCV EV were up 48% compared with H1 2025. And we have, as Renault Group, the best EV lineup for LCV. Master EV, outstanding performance. We have also our Kangoo EV. And I do confirm that by the end of the year, we will launch our new Trafic E-Tech, the first native EV, LCV in Europe with SDV. and we are very confident with this car. I am convinced Traffic Van E-Tech can do for electric vans what Renault 5 is already doing for passenger cars. Mobilize Financial Services, MFS. We always underestimate the importance of MFS in our business model and it is why I want to insist on this this morning. MFS operates in 35 countries. In Europe, one car out of two sold to retail customers is financed through MFS. And moreover, at the end of financing contracts by MFS, 77% of the customers renew with the Renault Group cars. This is a huge tool to sell cars and to enhance royalty. and with all of this MFS deliver also a very strong and stable financial performance with for H1 alone 753 million in profitability representing 50% of group operating margin. Future ready second pillar is tech ready and in H1 we passed again significant milestone In terms of EVI chain, as planned, we launch our second chemistry LFP on Twingo and it will be the case also on new Megane. We will launch in H2. We are among the first worldwide OEM to have wireless battery management system. We launch our new e-machine six in one on Twingo as planned. And moreover, in terms of battery, as you know, we don't want to be battery makers. We rely on our suppliers, but we want to dig into technology. And our lab on battery is now fully operational at the end of H1 2026. In terms of SDV, I do confirm we will launch in Europe the first European SDV in traffic van e-tech by the end of the year. And for intelligent car, we introduce Gemini in our open air link vehicles. A lot of people doubt that European industry will not match China's pace in automotive technology. At Renault Group, with Future Ready, we are proving that we can. Third pillar is about excellence in operations. Development time, 100% of the new project now in Renault will be developed under the two-year development time scheme. And this is what we structured in H1. In terms of cost target, I do confirm we are on track with €400 target a year, which is outstanding performance by procurement and all upstream functions when you consider headwinds, especially in terms of raw materials. In terms of resilience as well, we granted significant milestones in H1. For instance, thanks to our digital twin for manufacturing and supply chain, we could mitigate within 48 hours the supply chain issues raised by Middle East conflict. And with AI, we are capable to get a lot of quick proposals and scenarios to mitigate this. But I am also very pleased to see the speed on which the speed is moving for dual sourcing. Dual sourcing is completely new in Renault, completely new in automotive, I would say. It is one of the pillars of Future Ready to have dual sourcing on targeted parts and technologies. This is already fully implemented in each new project we start now, as from H1 2026. And for manufacturing, as you know, introducing humanoid robots is a key action of Future Ready. This is already operational in the way in H1 2026. Let's move to Trust Ready. This is very important to me. And after the release of Future Ready, I took specific attention to the cascading and endorsement by all the teams, especially the 9,000 managers. So we did a V-shaped process. This is cascading first, and this is team contribution. Later on, and to check the good engagement of our teams, we did a survey with our 9,000 managers and we got good results with above 80% of our managers fully comfortable with the plan, aligned with the strategy, capable to cascade, capable to define the contribution of its team to the future ready and confident towards future ready. We also continue to speed up organization transformation. I remind you four months to define the new organization of engineering and of last year, six months to structure the transformation plan of engineering. This engineering transformation is an ambition to show that European OEM can develop in Europe with European suppliers at the best level in the world in terms of speed, technology, cost competitiveness. This transformation is now ready for implementation and I would like to thank especially Our unions, because they were very demanding but supporting, and we got 75% favorable opinion of union reps towards our L&D transformation. In H1, we also grant significant social agreements in order to secure the competitiveness of very important sourcing worldwide. I remind you that we intend to decrease manufacturing costs by 20% in future ready. We grant social agreements in Spain, Morocco, Slovenia, and South America. And last but not least, I want to continue to simplify this company. I decided significant changes with general secretary appointment and I decided also to manage directly product organization. Trust Ready is also about partnership. We deliver significant growth, plus 164% growth compared with H1 2025, plus 50% excluding scope effect. I would like to mention the very successful start of our project with Geely in Brazil, with a very encouraging start of Geely brand in Brazil, for instance, plus 35% total sales of Renault du Brasil with both brand Renault and Geely. I would like also to remind you that we launched two new defense partnerships with Thales in the course of H1. With all of this, we delivered good results in H1, consistent with our guidance, 5.2% operating margin, automotive free cash flow over 600 million euros. But beyond numbers, I would like today to thank all the teams, All our employees, I would like to thank also our suppliers, our dealers, our partners, because this is the result of the efforts of all the team. And as you can understand, this gives us a lot of confidence about the robustness of Future Ready moving forward. And I would like now to hand over to Duncan to present in detail our H1 financial results. Duncan.

Thank you Francois.