AVTOVAZ, THE RENEWAL ON TRACK September 2017
SCHEDULE SEPTEMBER 20 TH 1:00 PM 7:30 PM DEPARTURE FROM LE BOURGET ARRIVAL AT SAMARA AIRPORT DINNER SEPTEMBER 21 ST MORNING AFTERNOON DESIGN CENTER AVTOVAZ PRESENTATION TOGLIATTI PLANT TOUR LUNCH TEST DRIVE SEPTEMBER 22 ND MORNING AFTERNOON TRANSFER TO IZHEVSK IZHEVSK PLANT TOUR DEALERSHIP TOUR LUNCH SALES & MARKETING PRESENTATION 7:30 PM DINNER 4:00 PM FLIGHT BACK TO PARIS VIA MOSCOW 8:30 PM ARRIVAL IN PARIS 303
SPOKESPERSONS DENIS LE VOT NICOLAS MAURE ALES BRATOZ JAN PTACEK STEVE MATTIN DENIS LE VOT VICE CHAIRMAN OF AVTOVAZ DIREC- TORS BOARD, SENIOR VICE PRESIDENT, CHAIRMAN OF EURASIA REGION, GROUPE RENAULT 52 years old, graduated from École des Mines of Paris. He joined Renault in 1990 in the International Operations Department. In 1994, he joined the After Sales Division and became Senior Manager, After-Sales Product Development. Appointed successively Senior Manager After-Sales of Avtoframos in Russia, General Manager, Global After-Sales Marketing & Strategy and then General Manager, Marketing of Renault in Turkey, he became Vice President, in charge of Marketing & Sales of Eurasia Region in 2007. In 2011, he was appointed Deputy Managing Director of Renault Russia and then Senior Vice President, in charge of Sales & Marketing Europe in 2013. Since April 2016, he is Senior Vice President, Chairman of Eurasia region. He is a member of the Renault Management Committee and Vice Chairman of the AVTOVAZ board. NICOLAS MAURE PRESIDENT AND CEO OF AVTOVAZ 57 years old, graduated from Ste-Geneviève, École Centrale of Paris and Institut Européen d Administration des Affaires. Joined Boston Consulting Group in 1985. Moved to Valeo in 1988 for strategic planning, production, supply managing. In 1993, joined Bertrand Faure and Faurecia in 1996. Joined Renault in 2000 in the position of Purchasing Director Parts & Accessories Division, Corporate Quality Project Manager, General Manager Société de Transmissions Automatique. In 2006, appointed Powertrain Plant Manager of Dacia and in 2008 Powertrain VP, Purchasing. In 2013, Vice President Industrial Performance & Strategy and in 2014, Managing Director of Renault Group in Romania, President & CEO of Automobile Dacia SA in Romania. Appointed AVTOVAZ Group President and CEO in April 2016. ALES BRATOZ EXECUTIVE VICE PRESIDENT FOR PRODUCTION AND SUPPLY CHAIN MANAGEMENT AT AVTOVAZ 53 years old, graduated from the University of Maribor, Slovenia. He joined Renault in 2005 as Plant Manager. In 2008, he was appointed Plant General Director in Slovenia and Plant General Director in Turkey in 2013. Since 2016, he is Executive Vice President for Production and Supply Chain management at AVTOVAZ.
JAN PTACEK EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING AT AVTOVAZ 47 years old, graduated from Czech Technical University in Prague and École des Mines of Paris. He joined Renault in 2004. He became Sales and Marketing Director, Entry Range in France. In 2008, he was appointed Marketing Director of Russia and Eurasia region and in 2013, General Manager of Ukraine. Since 2016, he is Executive Vice President, Sales and Marketing at AVTOVAZ. STEVE MATTIN DESIGN DIRECTOR AT AVTOVAZ 52 years old, graduated from Coventry University of England. He joined Daimler Chrysler in 1987 and became successively Designer (1987-1990), Senior Designer (1990-1993), Design Manager (1993-2000) and Senior Design Manager (2000-2005). In 2005, he joined Volvo Car Corporation and was appointed Vice President & Design Director, Senior Vice President & Design Director (2006-2010) in Sweden. From 2009 to 2011, he was Independent Design Consultant. Since 2011, he is Design Director at AVTOVAZ. 505
GROUPE RENAULT AND RUSSIAN CARMAKER AVTOVAZ HAVE BEEN STRENGTHENING THEIR LINKS SINCE 2008. SINCE JANUARY 1 ST, 2017, AVTOVAZ IS CONSOLIDATED IN GROUPE RENAULT S ACCOUNTS AND LADA, THE AVTOVAZ OWNED BRAND, IS NOW THE FIFTH BRAND OF GROUPE RENAULT ALONGSIDE RENAULT, DACIA, RENAULT SAMSUNG MOTORS AND ALPINE. AVTOVAZ IS THE LEADING AUTOMAKER IN RUSSIA, with over 408,000 vehicles produced in 2016 under four brands (LADA, Renault, Nissan and Datsun), in two plants (Togliatti and Izhevsk). In 2016, AVTOVAZ initiated a roll-out of a recovery plan and is taking up new challenges. LADA IS THE RUSSIAN MARKET S NUMBER ONE BRAND, holding a market share of over 20%, and has never lost its leadership in the past 50 years. The iconic Russian brand is changing: new design, new models, network transformation and commercial performance.
LADA VESTA MIKHAILIN, Yuri Avtovaz Groupe Renault 707
GROUPE RENAULT AND AVTOVAZ ARE FACING A NEW STEP OF THEIR LONG-TERM WIN-WIN PARTNERSHIP. WELCOME TO TOGLIATTI AND IZHEVSK, THE TWO INDUSTRIAL SITES OF AVTOVAZ, TO DISCOVER THE RENEWAL ON TRACK. NICOLAS MAURE PRESIDENT AND CEO OF AVTOVAZ
01 AVTOVAZ GROUP THE NEW CHALLENGES OF THE LARGEST CARMAKER IN RUSSIA 09
AVTOVAZ KEY FIGURES LEADING MANUFACTURER of vehicles in Russia (2016) 408 467 cars & KDs produced OWN BRAND NAME LADA PC MARKET SHARE IN RUSSIA (2016) 20.1 % MOSCOW AVTOVAZ Representative office DEALER NETWORK IN RUSSIA EXPORT 331 sales points 30 countries TOGLIATTI AVTOVAZ Head Office & Togliatti plant IZHEVSK LADA Izhevsk plant CONSOLIDATED TURNOVER 2016 184.9 Bn RUB (2.5 Bn EUR) HEADCOUNT DEC. 2016 51 527 persons
AVTOVAZ ACTIVITIES Develop / Build / Sell / Service LADA cars globally Local producer of Renault / Nissan / Datsun cars & components Component supply on Russian market DESIGN ENGINEERING PURCHASING (ARNPO) PRODUCTION INCL. COMPONENTS SALES SERVICE + FINANCE SPARE PARTS 11
AVTOVAZ TOGLIATTI AND IZHEVSK PLANTS TOGLIATTI IZHEVSK Capacity 113 K vehicles per year 1 vehicles line: LADA Vesta, LADA Granta + COMPONENTS lines 96 K cars in 2016 Capacity 650 K vehicles per year 3 vehicles lines: LINE B0: Renault Logan, Renault Sandero, Nissan Almera, LADA Largus, LADA XRAY LINE KALINA: LADA Kalina, LADA Granta, Datsun on-do, Datsun mi-do LINE 3: LADA Priora, LADA 4x4 + POWERTRAIN & COMPONENTS lines 312 K cars in 2016
IZHEVSK MIKHAILIN, Yuri Avtovaz Groupe Renault IZHEVSK TOGLIATTI MOURON, Roland MIKHAILIN, Yuri Avtovaz Groupe Renault TOGLIATTI MIKHAILIN, Yuri Avtovaz Groupe Renault 13
AVTOVAZ A MORE THAN 50-YEAR HISTORY 2016 LADA XRAY 1966-1979 JIGOULI 2008 STRATEGIC PARTNERSHIP AGREEMENT WITH RENAULT 2007 START OF PRODUCTION OF LADA PRIORA 2004 START OF PRODUCTION OF FIRST LADA KALINA 1996 START OF PRODUCTION OF LADA 110 1993 AVTOVAZ BECOMES A JOINT-STOCK COMPANY 1986 GOVERNMENT DECREE TO SET UP A R&D CENTER IN AVTOVAZ 1984 START OF PRODUCTION OF LADA SAMARA 1977 START OF PRODUCTION OF LADA 4X4 (VAZ-2121 NIVA OR LADA NIVA) 1970 START OF PRODUCTION OF VAZ-2101 ( JIGOULI ) 1966 GOVERNMENT DECREE TO BUILD AN AUTOMOBILE PLANT IN TOGLIATTI
AVTOVAZ A WIN-WIN PARTNERSHIP WITH RENAULT SINCE 2008 ALLIANCE ROSTEC AUTO B.V. BEFORE DECEMBER 2016 Renault 50% 73.3% Nissan 17.1% 9.1% Rostec 32.9% 17.6% 100% 100% AVTOVAZ BEFORE DECEMBER 2016 Alliance Rostec Auto B.V. 74.5% 64.6% Others 25.5% 35.4% 100% 100% RENAULT IN AVTOVAZ BEFORE DECEMBER 2016 Renault indirect participation 37.3% 47.4% DECEMBER 2016 OPEN CAPITAL INCREASE DECEMBER 2016 OPEN CAPITAL INCREASE DECEMBER 2016 OPEN CAPITAL INCREASE 2016 RENAULT PARTICIPATES IN THE CAPITAL INCREASE OF AVTOVAZ RENAULT INCREASES ITS SHARE IN THE CAPITAL OF ALLIANCE ROSTEC AUTO BV TO 73.30% AND FULLY CONSOLIDATES AVTOVAZ. 2015 RENAULT, NISSAN AND AVTOVAZ MERGE THEIR PURCHASING IN RUSSIA. 2012 December: RENAULT-NISSAN ALLIANCE ACQUIRES A MAJORITY SHARE IN ALLIANCE ROSTEC AUTO B.V. (A JOINT VENTURE SET UP WITH RUSSIAN FIRM ROSTEC), WHICH HAS A 74.5% SHAREHOLDING IN AVTOVAZ. April: INAUGURATION OF THE SHARED PRODUCTION LINE B0 & START OF PRODUCTION OF LADA LARGUS, FIRST CAR BASED ON RENAULT- NISSAN PLATFORM. 2008 STRATEGIC PARTNERSHIP AGREEMENT WITH RENAULT. RENAULT ACQUIRES A STAKE OF 25% PLUS ONE SHARE IN AVTOVAZ. 15
AVTOVAZ NEW MID-TERM PLAN: AMBITION BACK ON TRACK IN 2 PHASES 1-Consolidated Operating Profit 2-Free Cash Flow 3-Passenger Car Market Share 2020-2026 2016-2019 PROFITABLE GROWTH through: Complete product/market portfolio regeneration Full utilization of capacities (3 vehicle lines in Togliatti & 1 in Izhevsk) Fully integrated Alliance standards and systems COP 1 5% from 2021 FCF 2 positive from 2020 REBOUND through: Robust 20% PC MS 3 in Russia Strong cost optimization Deep supplier localization Quality and customer satisfaction Export sales ramp-up Positive COP 1 from 2018 FCF 2 - breakeven in 2019
AVTOVAZ NEW MID-TERM PLAN: KEY LEVERS NEW WORKING SCHEME with suppliers Monozukuri PRODUCTION OPTIMIZATION (including Components) PRODUCTIVITY IMPROVEMENT ALLIANCE PRODUCTION WAY Creation of INDUSTRIAL PARK 17
AN AMBITIOUS PLAN IS ON THE WAY TO RESTRUCTURE ACTIVITIES AND TO SET NEW COMMERCIAL CHALLENGES. WE ARE VERY CONFIDENT THANKS TO THE AVTOVAZ INDUSTRIAL, COMMERCIAL AND HUMAN POTENTIAL AND THANKS TO THE PERSPECTIVES OF THE AUTOMOTIVE RUSSIAN MARKET. NICOLAS MAURE PRESIDENT AND CEO OF AVTOVAZ
02 LADA BRAND THE RENEWAL OF THE NUMBER ONE BRAND IN RUSSIA 19
LADA LADA VESTA KHOLMOV, Andrey Avtovaz Groupe Renault Launched in November 2015, LADA Vesta won the RUSSIAN AUTOMOBILE FORUM S CAR OF THE YEAR AWARD. It is the THIRD MOST POPULAR MODEL in Russia. TWO NEW MODELS, Vesta SW and Vesta SW Cross, are launched in second-half 2017.
LADA LADA XRAY Launched in February 2016, LADA XRAY is a NEW ATTRACTIVE COMPACT CROSSOVER. It is among the 10 th TOP-SELLING vehicles in Russia. KHOLMOV, Andrey Avtovaz Groupe Renault 21
LADA NEW BOLD DESIGN A NEW X-STYLE DESIGN with a grille and sides hollowed out in the shape of an X. MIKHAILIN, Yuri Avtovaz Groupe Renault LADA Vesta & LADA XRAY, FIRST VEHICLES featuring the NEW LADA BRAND IDENTITY. More than 130 PERSONS WORKING IN A RENEWED R&D CENTRE.
LADA PRODUCT PLAN DIRECTIONS 2 NEW MODELS 5 NEW MODELS 5 NEW MODELS 12 NEW MODELS IN 10 YEARS 11 FACELIFTS IN 10 YEARS 4 FACELIFTS 2 FACELIFTS 5 FACELIFTS 2017-2019 2020-2022 2023-2026 23
LADA RANGE LADA Granta LADA Kalina LADA Priora LADA Vesta LADA XRAY LADA Largus LADA 4x4 20 MODELS IN THE B, B+ AND SUV SEGMENTS, FROM 390 TO 850 K RUBLES including VAT (EUR 6,200 13,500 at today s FX). ALL LADA VEHICLES ARE FITTED TO RUSSIAN ROAD CONDITIONS (cold temperature capacities and high ground clearance).
LADA 2016 COMMERCIAL PERFORMANCE TOP-10 BRANDS, K units / MS % TOP-10 BRANDS, K units 2016 MS vs. 2015, % POINTS 20.1% 266.3 90.4 +2.2p 11.3% 149.6 87.7 10.9% 145.3 87.7 8.8% 116.8 7.1% 94.3 7.1% 76.1 5.3% 70.5 4.2% 55.4 2.8% 36.9 2.8% 36.9 55.2 47.7 44.0 36.3 30.6 29.8 29.6 25
LADA TRANSFORMATION OF THE BIGGEST NETWORK IN RUSSIA MIKHAILIN, Yuri Avtovaz Groupe Renault 331 SALES OUTLETS in Russia NEW SERVICE QUALITY STANDARDS in sales and aftersales
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