Nine Months 2017 Renault SA Earnings Call
Oct 24, 2017 AM CEST
RNO.PA - Renault SA
Nine Months 2017 Renault SA Earnings Call
Oct 24, 2017 / 04:00PM GMT
==============================
Corporate Participants
==============================
* Clotilde Delbos
Renault SA - CFO & EVP
* Thierry Huon
Renault SA - IR Director
* Thierry Koskas
Renault SA - EVP of Group Sales & Marketing
==============================
Conference Call Participants
==============================
* Charles Winston
Redburn (Europe) Limited, Research Division - Partner of European Autos Research
* Dominic Patrick O'Brien
Exane BNP Paribas, Research Division - Analyst of Automotive
* Gaetan Toulemonde
Deutsche Bank AG, Research Division - Research Analyst
* José Maria Asumendi
JP Morgan Chase & Co, Research Division - Head of the European Automotive Team
* Stephen Michael Reitman
Societe Generale Cross Asset Research - Equity Analyst
* Thomas Besson
Kepler Cheuvreux, Research Division - Head of Automobile Sector
==============================
Presentation
------------------------------
Operator [1]
------------------------------
Ladies and gentlemen, welcome to the Third Quarter Financial Results Conference of Groupe Renault. I would like now turn over to Mr. Thierry Huon. Sir, please go ahead.
------------------------------
Thierry Huon, Renault SA - IR Director [2]
------------------------------
Good evening, everybody, and thank you for joining this call, which is broadcast live and available in replay versions on our website. Presentation slides and press release for this call are all available on the Finance sections of our website. I would like to point out disclaimer on Slide 2 of this pack regarding the information contained within this document and, in particular, about forward-looking statements. I invite all participants to read this. Today's call is scheduled to last 45 minutes. As usual, we have 2 speakers this evening, Thierry Koskas, EVP, Incharge of Sales and Marketing; and Clotilde Delbos, EVP and CFO of the Group. The presentations will last about 15 minutes and will be followed by a Q&A session. If you don't have the time to take all the questions during the session (inaudible), and myself will be available after the call for answering the questions. Without further ado, I would hand over to Clotilde for a few opening remarks.
------------------------------
Clotilde Delbos, Renault SA - CFO & EVP [3]
------------------------------
Thank you, Thierry, and good evening, everybody. Before reviewing our Q3 commercial result with Thierry in a minute, I would like to highlight the key takeaways from the third quarter. We are pleased to see the ongoing recovery in key emerging markets, like Brazil and Russia. Both are doing better than expected and contributed to the strong revenues reported today. The Russian market recovery is also accelerating the AVTOVAZ turnaround, which is well on track, if not ahead of our expectations. In this quarter, we also booked strong revenues coming from our business with partners, particularly, thanks to the ramp-up of Nissan MICRA production and the positive momentum of our CKD business in Iran and China.
In terms of risk for the rest of the year, ForEX impact is the main uncertainity as volatility remains high, as you will see in the revenue variance analysis, this item turned negative this quarter. On the other hand, the main opportunity should be on the volume side, especially in emerging markets. As you could see in our press release, we have raised our estimates for some markets. Given the overall context, we're confirming our guidance for the full year. I will now pass the call over to Thierry, who will review our quarterly commercial performance.
------------------------------
Thierry Koskas, Renault SA - EVP of Group Sales & Marketing [4]
------------------------------
Thank you, Clotilde. I will now present the commercial results for the third quarter of 2017. So let's start with a look at the evolutions of the market. Worldwide, the TIV grew by 3.4% in Q3. In Europe, the evolution remains positive, plus 1.4%, with key markets well oriented like France, Spain or Italy; and negative impact of the U.K. markets, down by 8.1%. Outside Europe, we should highlight the significant growth rate in 2 key markets of Renault: Russia, plus 17.7% and Brazil, plus 14.6%. Iran is also progressing fast, plus 18.5%, as well as India plus 13.7%. Algeria is still down due to restrictions on imports.
Let's now move to Group sales. So in Q3, the Group sold 866,000 units, which is a growth of 9.4% versus Q3 2016, in line with our growth rate in the first half of the year. If we look at some details by region. In Europe, our sales grew by 4.9%, outpacing TIV. The Group gained 0.3 points of market share. Sales outside Europe fueled our growth, as they increased by 13.5%. So a few comments, by region. In Africa, Middle East, India, our sales are almost stable with significant growth in Morocco and in Iran, but on the other side, a drop in Algeria due to market limitations, and a slight decrease in India before the launch of Captur that is due next month. In Eurasia, sales are up by 24% in a dynamic market. The Group gains more than 1 point market share in Russia and more than 3 points in Turkey. In America, the Group also outpaces the market with an outstanding performance in Brazil, where Kwid was recently launched in this country. The Group progresses market share by 0.7 points. Finally, in Asia, sales are up by 21%. Sales more than doubled in China versus last year. Let's have a look quickly at the ranking of our market in terms of sales. In the next slide, my first comment here is that, the rate of sales outside Europe continues to grow, reaching 54%, up 2 points versus Q3 last year. In terms of ranking by country, we can see that 6 countries out of our top 10 are non-European countries and the Group gains market share in 6 markets out of 10.
Before I hand over to Clotilde, I'll finish with some highlights on recently launched models. So firstly, Scenic is year-to-date #1 C-segment NPV in France, #3 in Europe. In most countries, it was launched during Q3, so this does not reflect the full year potential of this model. And indeed, Scenic was #1 in its segment, in the month of September. Koleos is enjoying a good start in Europe above our expectation. The model is well received and completes our existing offering high-end segments. Regarding sales outside Europe, Captur is doing well both in Russia and in Latin America. Kwid is off to a very promising start in Brazil, where sales started in September. And during this month, Kwid accounted for more than a 1/3 of its segment. And finally, ZOE maintains strong leadership in EV segment in Europe. Since we launched the 400-kilometer version, customer orders have increased by 72%. I will now hand over to Clotilde Delbos, who will present Q3 revenue and outlook.
------------------------------
Clotilde Delbos, Renault SA - CFO & EVP [5]
------------------------------
Thank you, Thierry. I will start this presentation with the change of this -- in third quarter revenues compared to last year on Slide 11. As you can see, Group revenues increased 15.9% to EUR 12,218,000,000 in the quarter. This include the contribution of AVTOVAZ, which was consolidated at equity in Q3 '16. The contribution from the Automotive division, excluding AVTOVAZ increased 9.9% to almost EUR 11 billion, while AVTOVAZ contributed for EUR 634 million in the quarter.
The contribution from Sales Financing was up 9.5%, at EUR 610 million. I will begin the analysis with the review of the Automotive division on Slide 12. From the left-hand side, the first item, volume, accounted to -- accounted for 2.7 points. This positive impact is smaller than the increasing registration due primarily to the fact that CKDs, notably in Iran and China, included in registration are not captured in this volume effect. In addition, the change in inventory had a negative effect of about 2 points on this item. Last but not least, do not forget that our new car business is not a 100% of Automotive revenues. Next item, geographic mix had a slight positive impact of 0.1 points. The product mix effect was positive in Q3 at 1 point, with the start of Koleos and the ramp-up of Scenic in Europe. The price effect was positive by 1.1 points, but lower than the 2.3 points recorded in H1. As anticipated, the significant impact of last year price increases in emerging markets has clearly faded away. We increased prices this summer in some countries, but on the limited scale compared to last year. In addition, we're now more than a year after the launch of some of key models such as Mégane and Talisman's families therefore, we are not benefiting anymore from the carryover impact of enrichment priced to the customer at the time of the model renewal.
The sales to partners item was again positive in the quarter at 4.8 points, reflecting the ramp-up of Nissan MICRA production, and the ongoing momentum of CKD sales in Iran and China. We benefited as well this quarter from a positive impact of the Nissan Rogue produced in South Korea, as the third quarter of 2016 was a low base due to a model change -- model year change at that time. The next item is foreign exchange. It showed a negative impact of 2.4 points. This is mainly explained by a weakening of most currencies against the euro. And I would highlight, particularly, the Argentinian Peso, the Turkish lira, the Korean Won, but as well the US dollar and the British pound. The last item, others, impacted positively by 2.6 points, mainly explained by the robust performance of used vehicles and spare parts activities, but also from the accounting impact of buybacks adjustments, R&D invoiced to partners was also a positive contributor. If I now turn to Slide 13. You have our inventories situation. Globally, our stock went up a bit, but since our registration grew faster in number of days of business, we saw a decline from 76 days to 71 days. As usual, we have a destocking at independent dealers. Independent dealers stocks stood at 333,000 units versus 410,000 units at the end of June. At the same time, Group inventory increased by 68,000 units. On a forward-looking basis, our inventory level is below 60 days.
I will now move on to Slide 14 and comment RCI's commercial performance. In terms of activity during the quarter, the number of new contracts written by RCI Banque increased by 14% versus the same period in 2016, thanks to strong sales momentum, higher penetration rate on new car and growing used car activity. New financing reached EUR 5 billion or a 14.8% increase, in line with the trend in new contract. Before moving onto the Q&A session, I will turn to the last slide, #15, which gives you our outlook for 2017.
As I mentioned in my preliminary remarks, we confirm our guidance for the full year 2017, which states: increased Group revenues beyond the impact of AVTOVAZ at constant exchange rates, improved group operating margin in euros generate a positive automotive operational free cash flow. This concludes our presentation. Thierry and I will now take your questions. And so, I will hand over the call to the conference operator. Thank you for your attention.
==============================
Questions and Answers
------------------------------
Operator [1]
------------------------------
(Operator Instructions) We have a question from Charles Winston from Redburn.
------------------------------
Charles Winston, Redburn (Europe) Limited, Research Division - Partner of European Autos Research [2]
------------------------------
It's Charles from Redburn. Throughout Clotilde's presentation, we were left with the impressions that the volume contribution was perhaps understated, you talked about an inventory impact. You talked about forward-looking inventories being less than 60 days. Should we expect that to reverse in the fourth quarter? In other words, we can all form our views as to what registrations and consolidated volumes are going to do. Should we be then boosting that, by say, 2%, 3% in the fourth quarter took to unwind that inventory impact, that's question 1. Question 2, just in terms of sustainable pricing. You highlighted pricing slow down, you very much predicted it. But what is the sustainable level? Can you remain in the 0 to 1% level without any FX gain or are we likely to drift back to 0. And I'm sorry, just very quickly, can you help guide us on the fourth quarter FX impact from revenue, it is a bit all over the place, I must confess, I got it wrong. If you could offer any help at current spot rates that would be useful.
------------------------------
Clotilde Delbos, Renault SA - CFO & EVP [3]
------------------------------
Yes, sure. Yes, there is a lot of question here. So that's why I was gathering my thought in order not to forget any of your questions. On the volume impact, we're -- we clearly don't see any specific drop in our volume per se. Maybe, Thierry can first say a word on the volume itself and then we'll look back to revenues.
------------------------------
Thierry Koskas, Renault SA - EVP of Group Sales & Marketing [4]
------------------------------
Yes. On the volume side, we plan for Q4 to continue to grow at reason that is comparable to what we had year-to-date for 2 reasons. First of all, in Europe, we have today a full lineup with especially the effect of Scenic that we just had at the very end of the year. So this will have positive impact. And outside Europe, on top of the launch of some models, like Kwid in Brazil, as we showed, some markets are quite well oriented, it's the case especially of Russia or Brazil.
------------------------------
Clotilde Delbos, Renault SA - CFO & EVP [5]
------------------------------
On the -- so to add some comments on the volume impact. Usually, we don't have. I don't see such a big destocking impact versus where we are at the end of September in the last quarter. There should be, again, as I said, less mismatch between registration and invoices in the last quarter. So you have the volume trend and you should not take into account such a negative gap between registration and invoices. On the pricing front, I think, we are -- in terms of offsetting FX impact. So first maybe on the FX. You see that the FX has turned negative in this quarter in terms of sales. And for the last quarter, it's very difficult to predict by nature, FX is extremely volatile, but you can note that it is one of the risk. It is the risk that I did mention for the last quarter. So now, how about our ability to price FX in emerging countries. First, you always have a time lag. So we clearly see in Q3 that we were not able to price a lot. So maybe that could be a little better in the last quarter. But we are already in many countries, one of the highest priced, if we look at our TPV and now versus competitors, so our ability to continue to increase prices is being reduced in the future. So I think this is what I can say on pricing, because obviously, on the rest, we keep our policy each to be in average, at the basket or slightly above in all country, so it will depend also on the competitor's behavior, I would say on the market. So globally, I guess, this answers most of your question, because it brings out what you want in terms of revenue on the volume and the pricing.
------------------------------
Operator [6]
------------------------------
Our next question is from Dominic O'Brien from Exane.
------------------------------
Dominic Patrick O'Brien, Exane BNP Paribas, Research Division - Analyst of Automotive [7]
------------------------------
Just firstly, 1 question on Russia. Well -- sorry, 2 questions on Russia. We saw some quite impressive results yesterday from VAZ, particularly, its profit in the third quarter. So I'm just wondering, first of all, are there any one-offs in Q3 profit number for VAZ. And then secondly, can you confirm that you're seeing the same in Renault's core business in Russia, i.e. the Renault ex-VAZ. And secondly, just on sales to partners. Can I just confirm, Is the Nissan MICRA now at full volume in Europe? And it's just from the registrations date that we had, I know the China, Iran and the Nissan Rogue were contributors, but they didn't look, it'd be that big a contributor to what we've seen reported. So is there something else going on here, are these all declines less than you thought and just a bit color there would be great?
------------------------------
Clotilde Delbos, Renault SA - CFO & EVP [8]
------------------------------
Okay, thanks for the question. Regarding Russia, no, there was no specific one-off in the result of the month of September. Obviously, they did benefit from correct, I would say, ruble, and this is something to be looked at for the last quarter. They also did benefit from incentives, from the government on the -- for the sales of car. So that's basically -- and they have made a lot of progress on their recovery plan, so that's the reason for these good result. We are pretty happy, because as I mentioned already several times, we are very well on track if not ahead of our expectation on VAZ. One word may be on Q4, even if you didn't ask, obviously, this will depend on the FX volatility. There are still some risk as [Nikolai Mordi] did mention, I guess, in the press release on raw material. So we are happy so far. We still have to see what Q4 is going to look like. No specific things to mention on Renault Russia. Same trend as you have seen in terms of sales, and we're also progressing pretty well on Renault Russia. On MICRA, my understanding is that, we are still in a ramp-up phase and there will be some additional production, at least it is planned. Obviously, it will depend on Nissan's performance on the market. But MICRA is still not yet on the full production mode for Q3. On diesel, I'm not sure I completely got your question. But you can see on the market that it is starting to be quite complicated on diesel. Maybe Thierry, you want to say some word on the market first.
------------------------------
Thierry Koskas, Renault SA - EVP of Group Sales & Marketing [9]
------------------------------
Yes. What we can see year-to-date 2017 compared to 2016 in the PC market, we -- the weight of diesel lowered by around 5 points. And we completely -- from Renault side, we completely follow this evolution by obviously adapting our offer to the requirements of the customer.
------------------------------
Operator [10]
------------------------------
Our next question is from Thomas Besson from Kepler Cheuvreux.
------------------------------
Thomas Besson, Kepler Cheuvreux, Research Division - Head of Automobile Sector [11]
------------------------------
It's Thomas Besson. I have 2 questions. First, to come back on the emerging market dynamics that you raised in that Q3 segment. Even if I understand correctly, it's fair to say that Europe is doing the way you are thinking and you continue to gain share, but your key emerging markets are doing better. So overall, you are in a better environment then you were thinking before, is it self-alluring, and therefore you're logically more confident on your earnings for control for 2017 or you put ForEX risk is sufficiently big to offset the gains in emerging markets they make?
------------------------------
Thierry Koskas, Renault SA - EVP of Group Sales & Marketing [12]
------------------------------
On the sales side, indeed in Europe, we continue to gain market share. Year-to-date, we are 0.2 points above last year. So we continue to gain market share. Thanks to the full renewal of our lineup. And yes, there is outside Europe, we see positive momentum in some markets that are key for the Group, where we make significant market share. That's the case you have seen in Russia, that's the case in Brazil, in Argentina as well. So it’s seen as an opportunity and that's why we have reviewed the outlook of these TIVs up compared to what we were saying at the end of H1.
------------------------------
Clotilde Delbos, Renault SA - CFO & EVP [13]
------------------------------
Thomas, to go on your question. Obviously, as you know, this is not an earning call. That being said, today, I don't see any reason to change what I told you at the end of June. Yes, there are some risks as we mentioned on the ForEX volatility and raw material, but there are some opportunities, especially, as you rightly mentioned, on the emerging markets volume potential that we have seen. So there is no major reason to change, there is no new elements versus what we told you at the end of H1. We are committed to do better than last year, and we're clearly on the paths to do so.
------------------------------
Thomas Besson, Kepler Cheuvreux, Research Division - Head of Automobile Sector [14]
------------------------------
Okay, it's very clear. I'm sorry, I'm asking another question, which is not exactly appropriate for the call, but coming back to Russia and the question is from Dominique earlier. So you are already at 3.7 for -- after VAZ, we've -- volume is about identical to Q2 and the (inaudible) Renault, and the Renault car business is doing well. I mean, what do you think is potential for the business, if we assume that the Russian market getting back to closer to EUR 2.5 billion net in 2020. Is it back above 10%, are you aware for the car Renault business or is it even higher?
------------------------------
Clotilde Delbos, Renault SA - CFO & EVP [15]
------------------------------
I think, Thomas, we answered already this question during the MTP presentation on October 6. Clearly, Russia has a lot of potential. At the end of the plan, it's going to be our first market. And we don't see any reason, except maybe for currency assumption. But if the market goes back to where it was before, there is no reason why it cannot be one of our major profitable pool. There is no change versus what we said 2 weeks ago. But obviously, this is that in a few years, this is not for now yet unfortunately.
------------------------------
Operator [16]
------------------------------
We have a next question from Gaetan Toulemonde from Deutsche Bank.
------------------------------
Gaetan Toulemonde, Deutsche Bank AG, Research Division - Research Analyst [17]
------------------------------
I'm crossing my finger on the question I am going to raise. Regarding raw material, I remember at the end of H1, you mentioned that you're guiding for something that's around EUR 400 million headwind this year. Is that the number you count firm? It's a little better, it's a little bit worse? Some question on FX. In the past, a kind of rule of thumb, you gave us is approximately 1/3 of the revenues falling through. Is it something you still see today? That's my first question and I have a second one afterwards.
------------------------------
Clotilde Delbos, Renault SA - CFO & EVP [18]
------------------------------
Okay. So on raw material, yes, there is no reason again to change what we told you during the H1 result. We said around EUR 400 million headwind. Of course, it really depends on the assumption you take on the raw material, but flat still being the main component as we have mostly semi-annual or annual contracts of supplier, this is relatively predictable item. So yes, EUR 400 million, it might be slightly more, but not anything major. On the FX, it really depend on the basket of currency. Unfortunately, as you have seen in the first quarter, we had -- sorry, in the first half, we had a currency of basket which was quite preferable because we had a positive impact on the turnover and a negative impact on the P&L. These have slightly changed. We now have a negative impact on the turnover. The basket has changed. And then, we should go back to something closer to what we saw before on the currency of the emerging markets. Everything will depend though on euro-to-dollar and the euro-to-Won and currency exchange, I would say. For modeling purposes, I think that you can take globally an effect on the -- if it stays as it is today, an effect that could be in the same magnitude of what you saw in the first half despite the change on the turnover impact.
------------------------------
Gaetan Toulemonde, Deutsche Bank AG, Research Division - Research Analyst [19]
------------------------------
Okay, that's clear. So It's a little bit better than I thought. Second question, on the pricing environment in Europe. Is it -- I remember in the first half, you started to mention some kind of deterioration, not totally sure, but some of your competitors. How do you see the situation, qualitatively speaking? Is it a little bit worse, stabilizing, a little bit better in Europe?
------------------------------
Thierry Koskas, Renault SA - EVP of Group Sales & Marketing [20]
------------------------------
Okay. So you're right. At H1 result presentation, we had mentioned the drift or the increase of tactical channels in the main European markets, which means that their weight in the total TIV was increasing. At the end of September, we see this trend confirmed. No further deterioration. But still in the main markets, we can see that the weight of tactical channel, which is a short-term rental and demo is slightly increasing, except in Germany, where the weight of these channels is not moving. Second point is, in this context, the Renault Group has healthy behavior as our performance is increasing in the healthy channels fleet and retail, more done on the tactical channels. But yes, we see this increase of the weight of the tactical channels. In terms of price positioning, we are the same picture as what we had at the end of June. As you know, we compared to the basket of our main competitors, and we are today, in terms of transaction price, above the average of the markets.
------------------------------
Operator [21]
------------------------------
(Operator Instructions) Our next question is from with Jose Asumendi of JP Morgan.
------------------------------
José Maria Asumendi, JP Morgan Chase & Co, Research Division - Head of the European Automotive Team [22]
------------------------------
Thierry, maybe just the first one on diesel. Can you just remind us please what is your share of gasoline versus diesel in the French car market, what is the unit of change roughly? And how far can you increase the share of gasoline technically within the Group, if the share of diesel continues to decline in 2018? And also, if you please -- if you could please comment on received values for diesel vehicles. What's your take in general for the market or specifically, for Renault? And then, Clotilde, can you just help us a little bit, I'm trying to sort of square a little bit the earliest contribution from the volume growth and then from the sales to partners and the other line. Can you give us a bit of a steer into the year-end, how should we think about that in Q4 from volume or from sales to partners or the other line?
------------------------------
Thierry Koskas, Renault SA - EVP of Group Sales & Marketing [23]
------------------------------
So on the -- so I understand you're asking about the share of diesel in the market, am I right? Or the share of petrol it's the same. What we observe is in the PC market in Europe, 49.3% of the global market is petrol. And for Renault, it's 49.1%. So it's exactly the same. And as I said, it's a shift of 4 to 5 points versus same period last year. So we -- I would say, we completely follow the market trend.
------------------------------
José Maria Asumendi, JP Morgan Chase & Co, Research Division - Head of the European Automotive Team [24]
------------------------------
And on residual values, on diesel vehicles, what do you see in general?
------------------------------
Thierry Koskas, Renault SA - EVP of Group Sales & Marketing [25]
------------------------------
Yes. No, on residual value, overall, what we see is slight erosion of diesel residual value, but at the same time an increase of residual values of petrol cars. So basically, the gap that we had traditionally between petrol and diesel is narrowing down. And even in some countries, we can observe that petrol residual value is now slightly above diesel that's, for example, the case in Spain. I'm talking about the B-segment where the share of petrol and diesel are quite significant. So we can have good a comparison between petrol and diesel. But basically, slight erosion on diesel, and narrowing the gap between diesel and petrol residual value.
------------------------------
Clotilde Delbos, Renault SA - CFO & EVP [26]
------------------------------
On the volume flow through. I guess, all I can say is it's very difficult to predict exactly. I already commented on the gap between registration and invoices. So I'm not going to say that again. But all I can tell you is it, it really depends on the mix of countries. Depending on which country is going than faster than the other it does -- the ever flow through the old volume or through sales to partner. If we are increasing in Russia, a part is going to go through volume and a part with the CKD that we're selling to VAZ would go, well, actually it's eliminated, but now in some -- to some point, but it could go in sales to partner. Same with Iran and China. If the growth is in Iran and China, it's going to go through sales to partner and not through volume. So it's very difficult to give you a very definite split between the 2 because at the end of the day, what comes for us is the total. But -- so that's what I can say. I can say, another word also, on sales to partner, obviously, don't forget that our sales in Iran and China started to pick up in the Q4 last year. So our comparative base, it's going to be tougher in Q4 than it was in the first -- in the previous quarters. On the other hand, and also, the same thing on Iraq, where we had easy comparison in this quarter and it's going to be tougher in the Q4. But globally, it's very difficult to predict, what is going to fall into volume and what is going to fall into sales to partner.
------------------------------
Operator [27]
------------------------------
Our next question is from Stephen Reitman from Societe Generale.
------------------------------
Stephen Michael Reitman, Societe Generale Cross Asset Research - Equity Analyst [28]
------------------------------
A question following on from Gaetan about pricing. And particularly, the impact of the eco measures that have been introduced by carmakers. How impactful do you think these eco measures are being in terms of supporting sales? I'm looking particularly at some of the deals that are being offered in France and when you can get a Golf for EUR 159 a month with EUR 1,000 down on a 3-year higher contract, they seems to be very low. So I'm just wondering that if you trade in a Euro 1 to Euro 4 diesel car. So I'm just wondering what -- how many people are trading in these vehicles and taking these kind of deals, which look very attractive on the face of it, how much impact is that having on the market?
------------------------------
Thierry Koskas, Renault SA - EVP of Group Sales & Marketing [29]
------------------------------
Yes. So on this point, we -- as you all know, the scrappage schemes started in Germany. As it's a global market trend in Germany, we offer the similar comparable offer. So we see there are some difference between OEM and so on. In France, we understand that, yes, the competitor you mentioned launched a similar action, but we do not intend to follow the same scheme to be very clear.
------------------------------
Stephen Michael Reitman, Societe Generale Cross Asset Research - Equity Analyst [30]
------------------------------
And then just what do you think is happening in terms of -- are you seeing, just in terms of the take-up of Euro 1 to 4 Africa's being traded in. How successful is this already?
------------------------------
Thierry Koskas, Renault SA - EVP of Group Sales & Marketing [31]
------------------------------
No, we don't have any comments to -- we are not going to give figures. Yes, there is, obviously, some interest in this scheme. Oh, you see not everybody has the type of cars that can be traded on this type of scheme. But yes, we noticed, especially in Germany, significant customer interest on this scheme. But we don't have -- we don't comment on the take-up price.
------------------------------
Operator [32]
------------------------------
We have no further questions.
------------------------------
Thierry Huon, Renault SA - IR Director [33]
------------------------------
Okay. If there is no more questions, thank you for being on the call. I know it is a very busy day for you guys and that you have value coming in few minutes. But if you have further questions feel free to call us whenever you want. Bye-bye.
------------------------------
Operator [34]
------------------------------
Ladies and gentlemen, this concludes the conference call. Thank you all for your participation. You may now disconnect.
------------------------------
Definitions
------------------------------
PRELIMINARY TRANSCRIPT: "Preliminary Transcript" indicates that the
Transcript has been published in near real-time by an experienced
professional transcriber. While the Preliminary Transcript is highly
accurate, it has not been edited to ensure the entire transcription
represents a verbatim report of the call.
EDITED TRANSCRIPT: "Edited Transcript" indicates that a team of professional
editors have listened to the event a second time to confirm that the
content of the call has been transcribed accurately and in full.
------------------------------
Disclaimer
------------------------------
Thomson Reuters reserves the right to make changes to documents, content, or other
information on this web site without obligation to notify any person of
such changes.
In the conference calls upon which Event Transcripts are based, companies
may make projections or other forward-looking statements regarding a variety
of items. Such forward-looking statements are based upon current
expectations and involve risks and uncertainties. Actual results may differ
materially from those stated in any forward-looking statement based on a
number of important factors and risks, which are more specifically
identified in the companies' most recent SEC filings. Although the companies
may indicate and believe that the assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could prove inaccurate or
incorrect and, therefore, there can be no assurance that the results
contemplated in the forward-looking statements will be realized.
THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION
OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO
PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS,
OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS.
IN NO WAY DOES THOMSON REUTERS OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER
DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN
ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S
CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE
MAKING ANY INVESTMENT OR OTHER DECISIONS.
------------------------------
Copyright 2018 Thomson Reuters. All Rights Reserved.
------------------------------