Good morning, everyone. Welcome to Renault Group's Q1 2026 conference call.

This presentation will be done by Duncan Minto, the Group Chief Financial Officer, and will be followed by a Q&A session. Duncan, the floor is yours.

Duncan Minto: Thanks, Florent. Good morning, everybody.

In Q1, group revenue increased by 7.3% compared to last year and stood at EUR 12.5 billion. At constant exchange rates, it was up 8.8%.

In 2026, mobility services revenue has been reintegrated in the automotive segment following the reorganization of these activities — this reintegration amounted to EUR 17 million in Q1 2026 and EUR 23 million in Q1 last year. Automotive revenue stood at EUR 10.8 billion this quarter compared to EUR 10.2 billion in Q1 2025, an increase of 6.5% or 8% at constant exchange rates.

Mobilize Financial Services revenue was up 13% to EUR 1.7 billion. Drilling into automotive revenue, up 8% at constant exchange rates.

The negative Forex impact was -1.5 points, mainly related to the devaluation of the Turkish lira and to a lesser extent the Argentine peso — a strong sales increase in Turkey implied a more negative impact, though it should be partly offset on margin by the positive effect on production costs. The volume effect was negative by -2.1 points, mainly due to the -3.3% decrease in group registrations.

The independent dealer network reduction in Q1 2026 versus Q1 2025 had no impact on the volume effect — it reflected timing differences mainly related to Euro 6e-bis regulatory change, with vehicles registered and invoiced at the end of 2025 delivered in Q1 of this year. Worldwide sales stood at 546,000 units in Q1, down 3.3% compared to Q1 2025, mainly due to one-off issues at Dacia, while Renault and Alpine sales grew.

In Europe, the group confirmed its number three position in the passenger car and light commercial vehicle market. Renault brand sales were up 2.2% globally, thanks to the growth of electrified vehicles and the full diversity availability of light commercial vehicles.

On international markets, Renault brand continues to consolidate its footprint, supported by a renewed product lineup notably in India, Morocco and Colombia, all up double digits. In Turkey, Renault maintained leadership with total sales up 13% in a market down 4%.

This trend will be reinforced with launches such as Renault Duster in India and the upcoming Renault Boreal in Turkey. Dacia sales were down 16.3% versus last year.

Severe weather conditions implied a 10-day closure of the Strait of Gibraltar and floods at our Tangier plant, leading to logistics and production disruptions in the first two months. Sales are showing signs of recovery in March, with 1.9% growth in Europe compared to March 2025, and Dacia can rely on a strong order book fueled by double-digit order intake year to date.

The several thousand units of reduction losses should be caught up progressively through H1. Alpine sales were up 54.7%, essentially driven by A290.

In March, group sales started to recover overall with a 5.3% global performance year-on-year, outperforming the market. On electrification — at group level, BEV sales were up 21% and the mix reached 17% of sales in Q1 2026, up four points year-on-year.

Under the Renault brand, we now offer five electric passenger cars covering the A to C segments. Renault brand EV sales increased by 43% in Q1, with the EV mix reaching 24% of sales by end of Q1 2026.

The brand was number one EV in France and in the B segment EV in Europe, benefiting from Renault 5 — number one BEV in most European markets — the progressive ramp-up of Renault 4, and solid performance of Scenic. This momentum will be further supported by the launch of Twingo, deliveries of which are just about to start.

Beyond Renault brand, the group's EV offer is complemented by Dacia Spring model year 2026 and Alpine's A290 already on the road, with A390 to come soon. On hybrid — we confirmed our second position in the HEV market in Europe.

Hybrid mix stood at 35% for the group in Q1 2026. Dacia HEV sales were up 49%, driven by Duster and Bigster.

Full hybrid E-Tech also continued to perform strongly across Renault brand's core models, representing more than 40% of total sales. The brand stood in second place in HEV in Europe.

Overall, electrified sales grew 12% and represented nearly two-thirds of Renault brand's sales and more than 30% of Dacia sales in Q1. At group level, electrified vehicles represented more than one out of two sales in Europe, up nine points compared to the previous year.

This momentum is expected to continue with the launch of Twingo and the full rollout of Clio full hybrid. In Europe, Renault brand sales were up 3.8% versus last year.

Renault gained one position to rank number two in passenger car and light commercial vehicles, with Clio as the best-selling model. The brand was also number two in LCV in Europe, benefiting from a 15% sales growth following a transition year in 2025.

Worldwide LCV sales increased by almost 7% year-on-year. Dacia maintained its position in the top 10 automotive brands across all channels for passenger cars in Europe and is top three in the retail channel, which reached a high level of 77% of passenger car sales.

Duster is number three SUV in the retail channel in Europe, benefiting from an increasingly attractive lineup notably with LPG and hybrid engines. After a triple-digit growth record in 2025, Alpine confirms the upward trend in Q1 2026 with more than 3,200 registrations worldwide, up 55%.

Alpine continues to expand sales in Europe, particularly in the U.K., now its second most significant market, as well as Germany and Spain. A290 is the best-selling model with almost 2,500 registrations worldwide, up 64%.

The A390, the brand's first five-seat sport fastback, is now being launched in most European countries. We remain fully focused on sales quality.

We still run our plants at a high utilization rate above 90%, supported by improvement in Chennai utilization in India. We continue a strict discipline in managing total inventories, which stood at 554,000 units at the end of March — this level will enable us to smoothly operate during Q2, traditionally stronger in registrations.

This is underpinned by a strong order book in Europe at two months of forward sales versus 1.5 months at the end of December 2025, fueled by double-digit order intake growth since the start of the year with significant acceleration in EVs. We continue to uphold our commercial policy setting residual value over volume — our group's retail channel mix was 58% of PC sales, 16 points above the market.

Renault brand reduced exposure to short-term rental channel and grew in the retail channel by 8.5% in our five main European countries, supporting meaningfully higher residual values, 4 to 13 points above market average. We expect total inventories to be slightly lower at end of June compared to March.

On sales to partners — a strong positive impact of 5.9 points of revenue growth in Q1, driven primarily by partner programs, especially Nissan Micra, plus positive effects of scope evolution. The integration of RNAIPL, our Indian manufacturing site, contributed around EUR 200 million in Q1 2026 — full year revenue should be around EUR 1 billion, with margin close to zero on this activity.

We also began the ramp-up of distribution of Geely vehicles in Brazil, the first phase of our agreement with Geely, with local production through the Renault do Brasil joint venture set to begin in the coming months. On price, mix and geographical effects — price effect was slightly positive at +1 point in Q1.

Price increases in international markets compensating for negative effects were partly offset by pricing pressure in Europe, expected to continue throughout the year. Product mix was solid at +2.6 points, mostly due to EV success and the transition phase between Clio 5 and Clio 6, the ramp-up of Bigster and to some extent Master.

Geographical mix at -0.1 points was mainly explained by the sales increase in India. Other impacted revenue positively by 0.7 points, primarily related to solid parts and accessory sales performance.

On Mobilize Financial Services — new financing production was stable versus Q1 2025. Average performing assets increased by 4.8% to EUR 61.9 billion, thanks mostly to the increase in average ticket per vehicle over recent years.

MFS revenues were up 13% to EUR 1.7 billion, mainly driven by ticket per vehicle but also still benefiting from the growing interest rate portfolio from previous years. On outlook — this morning we confirm our guidance for 2026, with Group operating margin around 5.5% of Group revenue and Automotive free cash flow around EUR 1 billion.

As per usual seasonal patterns, H2 operating margin is expected to be higher than H1 — last year H1 margin stood at 6% while H2 margin stood at 6.5% of revenue. In 2026, international expansion, increasing sales to partners, growing share of electric vehicles, and the consolidation of RNAIPL on a full year basis will drive revenue growth, although being dilutive on margins.

Cost reduction remains a key priority. Our 2026 guidance assumes a substantial negative impact from raw materials and inflation, probably close to twice the positive impact we saw in 2025.

As of Q1, our purchasing and functions performance are well-oriented. Considering the geopolitical environment, we've decided to take additional measures to mitigate the potential impact of the Middle East crisis on raw materials, energy and logistics costs.

At this stage, we see no meaningful impact, but we are monitoring the situation very closely. 2026 automotive free cash flow will include the EUR 350 million dividend from Mobilize Financial Services, and we expect a negative change in working capital in 2026 to continue unwinding the positive change we saw at the end of 2024.

To conclude, we delivered strong revenue growth in Q1 despite the challenging environment, supported by both automotive and Mobilize Financial Services. In March we started to recover in terms of sales performance, and order intake continues to evolve positively.

This confirms the relevance of our comprehensive product lineup, supported by a two-leg strategy of both EV and HEV. Thank you, and let's go to the Q&A.

Florent Chaix: Thank you, Duncan. We will open the Q&A session.

The first question will come from Michael Foundoukidis from ODDO BHF. Michael Foundoukidis: Congrats on the Q1 performance.

Two questions. First, on margins — you highlighted strong BEV growth and meaningful contributions from sales to partners, both margin dilutive.

Could you quantify the expected margin impact of these mix effects this year and how it factors into your 5.5% full year guidance? Second, on the Middle East — regarding the specific cost risk on raw materials, energy and logistics, do you have estimates of the incremental gross exposure you're aiming to mitigate, and the key levers you're using to offset these pressures?

Duncan Minto: Thanks, Michael. We are seeing very strong EV growth and sales to partners.

The sales to partners agreements were concluded a while back, so they were clearly built into our assumptions for futuREady and for the year. I confirm sales to partners and EV are profitable for the group — they're just dilutive compared to group average.

The most difficult environment is the India agreement, because our margin markup is on what we call the value added, the actual production cost of the workforce — that's why the very strong revenue growth has very little margin in India. On EVs, we're comfortable with the margin on Twingo as it hits the street, demand is strong, Renault 5 is also a good contributor, and A290 is strong.

Overall, it's confirmation that the group's strategy of having highly competitive EV platforms is the right one. If partners are coming to us — on Nissan Micra today, on Ford in the future — it's because we have a highly competitive offer.

So yes, it's slightly margin dilutive compared to the average of the range, but increasing EV volumes also gives us a bigger portfolio to work cost reductions on going forward. This is in line with what we thought we'd be doing and overall positive for the group.

On Middle East raw materials — we have some hedging on this and contracts on energy, so this isn't something I'm seeing impacting H1. It's more about preparing for the future given a very volatile external environment.

We have options ready internally — managing fixed costs, optimizing variable costs through logistics routes, energy consumption within sites, purchasing and sourcing. I won't call out our actions line by line, but it's about looking ahead — at the moment we're not seeing any short-term impact on demand.

Florent Chaix: Our next question will come from Pushkar Tendolkar from HSBC. Pushkar Tendolkar: Two questions.

First, on pricing — you mentioned offsetting FX in international markets. Is there also an incremental benefit you get in Europe from tight supply at Dacia and from model changeover — for example, lower discount on Clio 6 versus Clio 5?

Does that feed into this 1% pricing number? Second, on competition in Europe — is it entirely Chinese, or do you also see increasing competition from fellow European peers?

Duncan Minto: Yes, in the pricing bucket — it's offsetting the FX negative internationally, but partly impacted by the highly competitive situation in Europe. You'd see in that bucket both MSRP, the sticker price increase, and incentives — the two are shown in the same bucket.

We didn't have high expectations for a positive pricing environment in Europe; we knew it was going to be competitive, and competitive I can confirm. On competition — I'd say it's broadly across the whole market.

Dacia is 77% retail-focused — we're not spreading volumes across other channels, it's focused on that segment alone and it's not a discounting model. Fabrice Cambolive: We are looking at the increase of commercial pressure month after month, mainly represented by higher discounts from many competitors in Europe.

We have factors that enable us to remain stable and protect residual value. The first is product appeal — we are working in our traditional A, B and C segments and can propose products like Clio 6 which are very attractive, enabling us not to do discounts and not to go on tactical channels.

We are very stable and far below average in terms of discount. Second is our powertrain offer — full hybrid for Dacia and Renault with very low consumption, and the 4x4 LPG automatic transmission for Sandero, Duster or Bigster.

Third, today's circumstances where customers who were hesitating between powertrains are now determined to shift to EV in Europe — this lack of hesitation helps us manage price at a good level, both for new and used car EV prices. Florent Chaix: We'll jump to the next question from Horst Schneider from Bank of America.

Horst Schneider: First, on sales progression — January and February were weak at Dacia, but March was much better. What's the run rate going forward — can we expect similar growth for Q2?

And can you confirm, setting India consolidation aside, that sales growth will be positive in 2026? Second, on high oil prices — is it changing consumer behavior?

BEV sales are performing well but slightly dilutive to mix — could that have a more negative impact on earnings in 2026? Duncan Minto: On sales — January and February were impacted at Dacia, March showed a positive impact compared to last year.

Order intake was up double digits, and with a strong order book of two months forward-looking sales, we'll see positive sales in Q2 — though I'm not sure we'll catch up 100% of what we lost, as we don't push sales artificially. We said when publishing 2025 full year results that we weren't counting on Dacia growth this year — it was more about steady control of the business model.

Even with some catch-up in Q2, it's not the element I'd call out for full year sales growth on Dacia alone. However, our international sales and Renault side forecast full year sales growth.

Horst Schneider: Does that mean the group is positive in 2026, not just international sales? Duncan Minto: Yes.

Fabrice Cambolive: Keep in mind on the India effect — it will keep supporting sales to partners notably until annualization on August 1st, since we started consolidating RNAIPL activities on that date last year. That's something to keep in mind for H2 forecasts.

Duncan Minto: On order impact — we're seeing an uptick in EV mix in order intake in April, quite significant, alongside Twingo, R5, R4, A290. Is it our product attractiveness or some reaction to the Middle East crisis, or both?

Difficult to tell short-term. Let's say it confirms we have the right product to answer market demand.

It's slightly margin dilutive in percentage but not a killer — we have a very competitive offer in A and B segments that contributes in margin per unit, and the drop down to margin and net income mass is what allows us to pay dividends and generate cash. There's an acceleration in order intake in April.

Horst Schneider: Is that a shift to BEVs rather than people trading down from C to B segment? Duncan Minto: No.

Fabrice Cambolive: In Q1, the C and above segment mix progressed year-over-year. We already mentioned at full year results the dilutive effect of sales to partners and BEVs at group level — it doesn't mean we stop progressing.

We will notably introduce LFP cell-to-pack batteries progressively on all our cars in 2026. We also see demand oriented on B or A segment like Twingo and R5, and we're very focused on the retail channel, which is not as under pressure as the C segment with fleet, for instance.

Not only do we not see any downgrade, but we focus on the most profitable channels regardless of segment, which is good. Florent Chaix: We will now take the next question from Stuart Pearson from Oxcap Analytics.

Stuart Pearson: First, on product mix — Clio 6 is a driver for revenue, but presumably you're adding content. Structurally, is that a more profitable car than Clio 5, or just early in the life cycle?

Second, on working capital — you mentioned the partial unwind from last year, but I wonder if H1/H2 dynamics could be a bit different this year because of the volume catch-up in Q2 — might working capital be slightly less negative in H1 than otherwise? Third, anything on the Ford LCV talks and timeline?

Duncan Minto: On Ford LCV — nothing new to report. We have discussions on the passenger car side progressing well, and opportunities to look at LCV going forward, but the product life cycle means it's further out — not a short-term subject.

On product mix — Clio 6 versus Clio 5 isn't a major difference; we've equipped the car, but it's also the fact that hybrid mix is so high and the offer so competitive. Fabrice Cambolive: With Clio, we have a smooth transition but a big change.

Four or five years ago, Clio was really rental-car oriented; now we're mainly retail and hybrid. This kind of change secures long-term profitability on a solid basis with a very competitive production base.

It allows a complementary offer to R5 and R4, completing our two-leg strategy on the B segment, the most important in Europe. Duncan Minto: Don't expect too many margin differences between H1 and H2.

We will catch up a little production on Dacia in Q2, but we run at very high capacity already, so we can't just switch things back on and catch up fully within a couple of weeks — the uptick isn't that much. Working capital is normally a little negative in H1, so I don't think there'll be major differences.

We've called out that margin should be stronger in H2 than H1, as it has traditionally been seasonally. Florent Chaix: The next question will come from Christian Funke from Goldman Sachs.

Christian Funke: First, on light commercial vehicles — very strong growth in Europe. What's your visibility into the rest of the year, and should we expect similar growth rates going forward?

Any comments on LCV operating margin versus last year? Second, on Dacia — you sound muted on the sales recovery potential despite a positive acceleration.

There's also a powertrain shift at Dacia — what operating margin impact should we expect in H2 year-over-year? Duncan Minto: On LCV growth — we're off low comparison bases, since last year we didn't have full Master availability.

But looking forward, the order book for LCV is actually a little stronger than the group average — outlook is positive. Operating margin is in double digits and I'm not expecting a huge change versus last year — slight upside.

Production is going smoothly, which is part of why utilization rates are above 90%, with Batilly producing well and also producing for partners. More Master in the mix is good, plus Trafic E-Tech at year-end as a bonus for next year.

Fabrice Cambolive: Just to add — in terms of run rate, keep in mind the comparison base is quite low. In H1 last year, we were down 25-29% on LCV in Europe, so the comparison is more favorable to start the year and will become less easy in H2.

Duncan Minto: On Dacia, I'd like to apologize to Catherine, who's the boss of Dacia and is here today — I didn't want to be muted in looking at the performance. It was impacted in Q1, but order take is double-digit up, and Dacia has a strong position within that two months group average order take.

It's not a push model — if we catch up everything in Q2, great; if not, we'll keep going at our pace. You're right to point out the powertrain update — Euro 6e-bis was rolled out, slightly positive on price but a cost on margin, something we called out at full year results as impacting us as of Q1, which is why you'll see a negative mix impact in the operating margin line.

Fabrice Cambolive: As a reminder on margin guidance — the price mix and enrichment bucket for full year 2026 will be negative by several hundred million euros, notably due to this regulatory weight on margin that is difficult to pass through to customers. Florent Chaix: The next question will come from Thomas Besson from Kepler Cheuvreux.

Thomas Besson: First, on order trends in April — Q1 orders are up on an easy base for LCVs, and you mentioned positive BEV trends in April. Do you expect that momentum to continue into Q2 in places directly impacted by higher oil prices like Europe or India, or do you expect that momentum to reflect the changing environment at some point?

Second, I had the impression the C segment share was actually down to about a third versus 40% last year — can you clarify, and whether that's linked to delayed Bigster and Duster shipments from the Gibraltar weather disruption? Also, any cannibalization between Duster and Bigster?

Duncan Minto: April order take continues to be strong — we haven't seen anything slow down compared to end of March, with the same trend of acceleration in EV mix pickup. Do we expect that to continue all year?

No — we don't see Middle East impacts right now, but we have to watch going forward, which is why we're prudent about decisions on managing fixed and variable costs and adjusting production to demand changes. Nothing seen short-term, strong continuation in April, but the economy could be impacted at some point.

On Bigster versus Duster — the closure of the Strait was actually impacting us shipping parts from Morocco to Romania. Speaker 10 (Catherine): We had assumed there would be some cannibalization when deciding on Bigster.

We're now seeing the first customer survey results from last year, and it's far less cannibalization than assumed. Both products find different customers, are in different segments, have different price points, and cohabitate very well.

Florent Chaix: Thomas, I'll take the point on C and above and come back to you on the data. Florent Chaix: Our final question will come from Tobias Beith from Redburn.

Tobias Beith: The composition of volumes was quite decent in Q1. How much upside is there to MFS' average ticket size and yield on its assets over the next 12 months?

Duncan Minto: MFS is a portfolio business — we're looking at the average of the portfolio and the impact of that. I think it will continue to show a positive trend, with mix increasing on the auto side reflected in EUR per unit.

I wouldn't book 13% every single quarter, but we've seen that trend build last year and expect it to be a strong contribution this year and going forward — in futuREady, we called out mid-single digit revenue growth coming from both auto and MFS. Tobias Beith: So the EBIT in Q1 isn't some sort of exceptional result?

Duncan Minto: If you're talking about average ticket price in the auto side, the MFS portfolio is growing year-on-year — it's not exceptional, no. Duncan Minto: With this, we will close today's call.

Thanks a lot for your time and attention. The team remains available if you have any follow-up questions.

Speak soon. Have a good day.