Renault reports Automotive operational free cash flow* of €1,084 million in 2011, in line with the trajectory set in the mid-term plan, Renault 2016 – Drive the Change.

  • Group revenues of €42,628 million, up 9.4% on 2010.
  • Group operating margin of €1,091 million, or 2.6% of revenues, compared with €1,099 million and 2.8% in 2010.
  • Group operating income of €1,244 million, compared with €635 million in 2010.
  • Contribution of associated companies of €1,524 million, compared with €1,289 million in 2010.
  • Net income of €2,139 million, compared with €3,490 million in 2010, which included a €2 billion capital gain from the sale of B shares in AB Volvo.
  • Positive Automotive operational free cash flow of €1,084 million, including €627 million from a favorable change in the working capital requirement.
  • Automotive net financial debt of €299 million, down €1,136 million on December 31, 2010.

Commenting on the results, Carlos Ghosn, Chairman and CEO of Renault, said: “Thanks to the hard work of all its employees, Renault coped with the different crises faced throughout the year, exceeding the free cash flow objective for 2011. The 19% increase in Group sales outside Europe, notably in Brazil and Russia, illustrates the Group’s international growth. In 2012 we expect international sales to be well in excess of 43% of the total, while maintaining the Renault brand leadership in France, and No. 2 position in Europe.”

Group revenues came to €42,628 million, up 9.4%. Driven by sales momentum and an improved product mix, Automotive contributed €40,679 million to revenues, an increase of 9.4% on 2010.

Group operating margin was stable at €1,091 million, or 2.6% of revenues, compared with €1,099 million and 2.8% in 2010.

Automotive reported operating margin of €330 million (0.8% of revenues), compared with €396 million, or 1.1% of revenues, in 2010. The favorable impact of sales volumes (€455 million) and the improvement in costs as part of the monozukuri plan (€500 million) did not entirely offset negative factors, mainly external to the company, such as a €509 million rise in raw materials, a €199 million unfavorable currency effect and a €245 million negative mix/price impact.

In all, the supply constraints stemming from the Japanese tsunami had an unfavorable impact on the operating margin of Automotive of an
estimated €200 million in 2011. The impacts were mainly felt in production, commercial offers and logistics.

The contribution of Sales Financing to Group operating margin reached a new high of €761 million, up €58 million, resulting from growth in loans outstanding and a historically low cost of risk.

The contribution of associated companies continued to grow, totaling €1,524 million in 2011, driven by Nissan, compared with €1,289 million in 2010.

Net income came to €2,139 million, compared with €3,490 million in 2010, which included a capital gain of €2,000 million from the sale in October 2010 of B shares in AB Volvo. Net income Group share totaled €2,092 million (€7.68 per share).

Automotive operational free cash flow exceeded the objective reaching €1,084 million, having successfully maintained operating performance despite a series of crises (supply constraints, sovereign debt) and having rigorously managed the working capital requirement and investments in an uncertain economic environment.

This performance led to a reduction in Automotive net financial debt for the third consecutive year, reaching a historically low level of €299 million on December 31, 2011, down €1,136 million. In 2011 the Group continued to reduce gross Automotive debt through early repayment of the remaining €2 billion of the loan from the French government, while maintaining the Automotive liquidity reserve at high level of €11.4 billion, compared with €12.8 billion in 2010. The net debt to shareholders’ equity ratio stood at 1.2% at end-2011, compared with 6.3% at end-2010.

In accordance with the policy announced in the mid-term plan, Renault 2016 – Drive the Change, a dividend of €1.16 per share, representing the dividends received by the Group for its interests in listed companies in 2011, will be proposed for approval of shareholders at the annual general meeting on April 27th, 2012.


The global automotive market (PC + LCV) is expected to grow 4% year on year in 2012. Trends will remain contrasted, with markets outside Europe continuing to grow, especially Brazil (5%) and Russia (8%). With the economic environment remaining highly uncertain, the European market is expected to contract by 3% to 4%, including a decrease of 7% to 8% in France. Backed by the momentum of international growth, major launches (including Lodgy, Clio IV and ZOE), a new range of Energy engines and the introduction of the new design identity, Renault will continue to grow sales, in line with the objectives in the Renault 2016 – Drive the Change plan.

The Group targets positive Automotive operational free cash flow in 2012, with a ratio of capital expenditures and R&D below 9% of Group revenues.

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Operating margin



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o/w Automotive



% of revenues in sector



o/w Sales Financing (RCI Banque)



Operating income



Net financial income and expenses



Capital gain from sale of AB Volvo B shares


Contribution from associated companies



o/w Nissan



o/w Volvo



o/w AvtoVAZ



Current and deferred taxes



Net income



Net income Group share



The consolidated financial statements of the Renault group at December 31, 2011 were approved by the Board of Directors on February 15, 2012. The Group’s statutory auditors have conducted a limited review of these financial statements and their report will be issued shortly. The financial report, with a complete analysis of the financial results in 2011, is available for download in the Finance section of

*Operational free cash flow: cash flow (excluding dividends received from listed companies) minus tangible and intangible investments +/- changes in working capital requirements.