Good morning and good afternoon. Welcome to this presentation. Renaulution, that's the name we've chosen for our short, mid, and long-term strategic plan this time. This is one word which is already part of our organization's slang, able to grasp the degree of transformation we consider necessary while stating our belief that we will build it with our own style, leveraging the knowhow, the assets, and the culture of this 122 years old company. We knew we needed a new storyline, with a new direction, a plan with solid and credible numbers. We also felt that playing a new game would require a profound organizational change, putting our top managers and top leaders in the right positions on the field, giving them and their teams a new set of objectives and motivating them with a different reward system. This is part of what we have done in the last six months. This is what we are going to present you in the next 90, 100 minutes. If you want me to boil it down to just one simple slogan, it will be moving our focus from volume to value. I took the time to go pretty deep in the system to meet the people, see the problems, the challenges, also identifying strengths and scouting for opportunities. I visited plants, dealers, design and engineering centers in France, in Romania, in Russia, in Spain, in Turkey, in Morocco. Many different situations and issues, one common denominator. The entire system was tuned to grow in volumes. I would never dare saying that the approach was wrong. It might have been appropriate five, 10, or 15 years ago. It clearly failed in the recent past. Otherwise, we would not be in the situation we are in today. It is like a car growing in size and weight, becoming too heavy for the output of the engine. This becomes very obvious when the latest Grand Prix are raced on more and more twisty circuits. Let's start by celebrating the good things that we inherit from the past. 10 years ago, we started amongst the first in the world with electric cars. We have long experience on this value chain. By the way, just to remind everybody, we are the volume leaders in this segment, at least in Europe. 20 years ago, we engaged and proved that the global low-cost car was possible and sustainable. We have sold over 14 million vehicles in the meantime, everywhere. We have built a double-digit direct cost advantage compared to our competitors while being profitable. This is very difficult to replicate. Almost 100 years ago, we created our retail finance branch. Now we have a clear over performer with RCI, sporting best-in-class levels in profitability, resilience, and customer satisfaction. Then, of course, for the past 20 years, we have been members of the Alliance, which is one of our key strengths today. Not for the scale, like everyone keeps repeating to me, inside and outside, but for the potential and especially for the reach. The reach in terms of product, ranging from Japanese small kei car to two-tonne pickups. This scope potentially gives the three groups the chance to tap into 70% of the global profit pools in virtually any market on the planet. Reach in terms of technology with the three members' company engineering teams. This enables us to handle any current and future technology available and relevant in the automotive industry. Reach in terms of business, exchanges of technology and more between Alliance companies generated over EUR 35 billion in the past four years. Without forgetting that every year, our common purchasing platform, called APO, is processing more than EUR 100 billion worth of trade. On the negative side of the equation, two variables. First, the immoderate quest for volume, and second, an unresolved approach to market and brand portfolio management. The company had one objective you certainly remember, exceed five million units sold by 2022, and it strived to get there. We built a manufacturing capacity fit for this target. We increased our R&D CapEx by 65% in four years, and we reached a peak in 2019, only 3.6 million vehicles produced. The result is that our return on capital employed, the ROCE, was lowered by 50% between 2015 and 2019. Our break-even point grew 15 points above where it should have been before. All of this before the COVID. We grew bigger, but not better. We also grew wider worldwide, still not better. We targeted volume pools, not profit pools, outside of Europe, mainly in emerging low-profile markets and segments. After a decade of expanding our geographies, we sell cars in over 130 countries, but Europe still concentrates three quarter of our profit. In fact, it may surprise you to learn that five European countries generate half of our profit. Expanding to over 100 countries has only brought us 25% of our margin. Expanding globally frequently brings also product diversity and complexity, and it happened to us, too. Almost half of our lineup is made of region-specific models with suboptimal volumes. We were not particularly disciplined with complexity in product development. By counting the number of parts entering on average in each single plant independently from the model, we realized that we were at 20% above benchmark. Talking about brand portfolio management, you see here that we ended up with our two main brands selling cars in the same price ranges. On the right side, you see another symptom of the volume mantra. In Europe, Renault is well-positioned in terms of pricing compared with other mainstream players, but when we went global, we looked for the easiest way to gain market share, selling entry-level cars. My experience says that strong global brands have a homogeneous position across the markets. Let's look at the opportunities that we have. Over 2/3 of our sales are made in the B segment, when the C segment profit pool weighs 3x more. It brings an average of 30% additional operational margin per car. When you compare our operational performance in the last five years with our benchmark, half of the difference is here. We lost ground on the C segment in the most traditional European markets. It is as simple as this. I am seeing the C segment as a lost opportunity because we're talking about something we know how to do, in segments where our customer are expecting us to be competitive. We did it back in the 1990s, I remember, with the Mégane family. Only, we have not been able to replicate it since. In conclusion, the diagnostic is pretty cut and dry. Now, we know what we have to do, and we have already started doing it as a team in the past six months. Reduce our break-even point, reduce unnecessary diversity and complexity, focus our investment on more profitable products, steer our business from market share to margins. This is obviously the first part of the game. Now let's look at how we have organized the work and how we look beyond just fixing the basics. I would like to take the chance to underline that this plan is not just a wish list. It is the sum of actions we have already decided and organized, and for some, already up and running. We have three phases within a horizon that looks beyond the classical five years of a plan. It goes from simply surviving the storm to putting the company in a better shape it's never been before. First phase is resurrection, running from 2020 to 2023. It will be clearly about cost reduction, margin, and cash generation. We are already totally in this phase. All efforts are focused on restoring our competitiveness today. Leads us to the second phase, called renovation, spanning from 2023 to 2025. This is when we will benefit from a completely new and revamped lineup, electric and electrified, centered on larger profit pools and allowing us to finally leverage a portfolio of strong and differentiated brands. Third phase is revolution. From 2025 onwards, traditional OEMs will have to jump on the value chain of new mobility. Customer expectation are wider and different. It's about becoming a player in the data, energy, and services. We are getting organized to make the Renault Group a frontrunner in this race, scouting as of today for opportunities to make this company less dependent on traditional businesses. These phases have different endpoints. It is important for me to say that for all three phases, the work is already underway as of today. I will now briefly hand over to Clotilde for a snapshot of our turnaround roadmap. Clotilde New ambitions call for a new compass. Indeed, we're also changing the way we measure our performance. We no longer talk about market shares, sales, and synergy records. We talk about profit, cash, and investment effectiveness. In the construction of the plan, we went for cautious volume and flat market shares and assume markets would return to pre-crisis level by 2023 in most emerging markets and beyond 2025 in Europe. Any outstanding success of a product, any unanticipated rebound of a market, any opportunity to partner in order to synergize investments that might happen along the way, will just come on top of these numbers. We commit by 2023 to reach more than 3% group operating margin, accumulate around EUR 3 billion of operational, auto free cash flow, and lower our investment around 8% of turnover, moving from double digit to low level industry standard in these phases. We'll get there step by step, but our operating margin will stay penalized by the high level of depreciation and by decreasing R&D capitalization ratio. By 2025, we aim at more than 5% group operating margin, around EUR 6 billion of cumulative 2021, 2025 auto free cash flow, and a ROCE improved by more than 15 points compared to 2019. That KPI wasn't our focus up until now. It becomes fundamental as we have agreed as a team to be strict on the quality of our investment decision. Back to Luca. Thank you, Clotilde. Thank you very much. As I said at the beginning, a new game requires a new organization on the field. This is the way it worked before. It's a matrix with at least four dimensions, too many layers, too many people on the same ball, too many shared responsibilities, too many silos, and a go-to-market going through the regions with an underlying assumption that all that matter were size and volumes. Let's look at the way we are working since 1st of January 2021. It is simpler. It's flatter, with one, sometimes two layers less. It's not a matrix, it's a flow. I like to think about it like a four-wheel drive car. The two front wheels pulling are the brands, the two rear wheels pushing are the different function, engineering first. Everything well-anchored on the strong alliance platform. In the new structure, the brands are clearly in the driver's seat. They're responsible for margins, ROCE, and customer satisfaction. They pull the organization towards targeted customer and markets. Engineering faces directly the brands, therefore the business, and has full responsibility on timing, cost, and performance of product development. Everybody else is there, to ensure the connection between the front and the rear wheels works smoothly. Every piece is in the daring and caring hands of experienced, credible, and passionate leaders. I think it will do the job and give us the necessary support to face the huge challenge we have in front of us. Let's look first at how the functions will contribute to the plan, beginning with engineering. Here, Gilles Le Borgne gave three priorities to the team: efficiency, speed, and value for the customer. Efficiency means that we are streamlining by 30% the engineering organization through optimized outsourcing, digitalization, and reduction of G&A. We invest in new tools. To divide the prototype cost by almost two. We smartly redistribute workload amongst the different global engineering center to reduce engineering rates. We already see a decrease of over 20% in R&D net expenses in 2020 compared to 2019. This modernized, lean organization will allow us to reduce, by a whole year, our car development time from concept freeze to start of production. That's about 25% of the development time saved. New models to be launched on existing platforms will be in the market in less than three years from now on. After speed, diversity reduction has been our battle in the last month. Behind all our launches, there will be a 30% reduction of complexity from platforms to powertrain, down to components, without losing coverage, neither on markets nor on profit pools, on the contrary. The Alliance reach in technology will further boost our efficiency. We can proudly show that with the product strategy, we will be able to produce an unprecedented 80% of vehicles on just three Alliance platforms. We'll be efficient, we'll be flexible, those platforms being EV dedicated and multi-energy and covering all segments from A to D. When people question me whether the Alliance is working operational, I'll just show them this chart. Along with Nissan and Mitsubishi volumes, those three platforms will accumulate over six million vehicles per year across the Alliance. When it comes to scale, that puts us in the finals of Champions League compared to other automotive groups. That's more than we have ever done. Along with the platforms, we agreed on one of the most extreme powertrain rationalization exercises in the automotive industry. I know you are thinking that going evergreen comes at a growing cost. Yes, powertrain will cost up to 2.5x More in the next years with a direct effect on pricing. Over the same 10-year period, our pure electric powertrain cost will be divided by two. The other good news is that for us, it has been already all invested. Energy mix wise, we will be able to smartly leverage our legacy technology and invest in a future where we see Renault as one of the most progressive OEM in this direction. It goes like this. We'll have fewer powertrains, equipping more vehicles, and spending on a wider horsepower coverage. We will reduce the number of powertrains from eight to four families. In fact, we'll only rely on one gasoline powertrain that, combined with the E-Tech modular hybrid technology, will allow us to cover low, mid, and high power, and therefore, price ranges. With that set up, I would say we consider that we will pass regulation on ICEs and hit CO2 objective even beyond 2030, with very limited additional investment, as it will be about changing battery size or changing the electric engine. This technology, ladies and gentlemen, is one of the hidden gems in the house. One family of diesel engine, we have already invested, and will be dedicated to light commercial vehicles for as long as we need. Parallelly, we are working to integrate the most competitive hydrogen technology and adapting the current engines to green fuels. We'll focus on taking advantage of our scale and experience to push on pure electric platform for small and medium-sized vehicles with same battery module in LFP and NMC chemistry. We are engaging in the future, playing the leaders game when it comes to energy transition. The good news, I repeat, is that all investment in hybrid and BEVs are already behind us. Based on this strategy and according to our modeling, we should be in the position to pass the 2025 regulation gateway. For the time being, I can confirm that we have made it in 2020, and we are on track to meet 2021. Here is an information that might be interesting for you. We are already generating more contribution margin per pure electric car than per the ICE equivalent. In 10 years, we were able to reduce by half the cost of electric powertrain. We consider that with the next battery generation, 2023, 2024, non-dilutive pure BEVs should be within our reach. For the E-Tech hybrid, we aim to reach the cost level of the European market leader in 18 to 24 months. This is our life insurance in the challenging times of powertrain transition, something that puts Renault in a very, very comfortable position. In the same smart way, we want to approach the integration of the key automotive technologies in our vehicles. The message in this chart is, I would say, pretty simple. We will be at best competitive level, thanks to the possible sharing within the alliance, and thanks to a very open approach to partnerships. I have already mentioned the scale and cost advantage we have on platforms and powertrains. On connected services and onboard AI, I have to admit that I was very convinced about the potential of the partnership with Google in the moment I drove the prototype of the Mégane E a few months ago. It is a totally different user experience compared to all made of or integrated system by traditional suppliers I've known before. We will develop this partnership further, simply because it brings something better than the competition for our customer. When we will be launching that technology as a world premiere on our mid-size EV next year, we will be leading the pack for sure. You will see. On ADAS and autonomous driving, we have made a decision of being fast followers, as we don't currently see a clear business case in the markets where we operate. We will be quickly adopting technology, leveraging the Nissan push, who considers this application as fundamental in their strategy to compete in markets such as China or Japan, where everybody expects adoption will be faster. Let's turn to the work and the decision we have made on the industrial side. I suspect not many people know that the Renault Group is already industry benchmark for manufacturing costs per vehicle for the cars we sell in Europe. I would say thanks to a very cost-competitive manufacturing network, including Spain, Turkey, Romania, and Morocco. This is a fact. The new strategy we're putting in place will allow us to gain additional 20 points of competitiveness in the next three, four years, giving us an edge on this, I would say, very important KPI. What do we plan to do? We'll take our 2022 plan commitments a step further. We'll lower our capacity from four million in 2019 down to 3.1 million in 2025. Our plant utilization rate will recover from its 70% level in 2019 to over 100% already in 2023. We are already starting to right-size infrastructure, sell unnecessary assets and services. Obviously, as most of the new products are being developed on existing platforms, they will be there, I would say, to better fill existing capacity. The combination of all those actions plus the fact that a lot of investment went into the upgrade and automation of our plants in the last decade will allow us to have lean and high-performance operational system on the industrial side. Don't ask me today where exactly we'll take action. We don't want speculation or media buzz to hinder the work that we have planned to do. Believe me, we have a very clear and strong ideas and concept on where we want to be in not more than three, four years. We will do it in the Renault way, meaning in the full respect of the expectation from the different stakeholders, especially our workforces. We have already started on the reconversion of the historical plant, and this, for me, represents a very good example of our approach. Renaulution means also a fundamental rethinking of our go-to-market strategy. Of course, with different starting points and different challenges here and there, but with a common criterion in developing the plan. We'll stay only if we see the potential to make a profit. Let me remind you that even without considering the alliance, Renault became, in the last 20 years, a true global player. This global footprint is a real asset for the Group. Outside Europe, it represents 1/2 our sales, 2/3 of our workforces, six design and engineering centers, 16 vehicle production sites. The fact that we didn't reach the profitability we wanted doesn't mean that we want to give up on our global footprint. On the contrary, it means that we need another approach. We are going to change strategy on the product, rightsizing where necessary, as we've done, for example, recently in Brazil, stop the rush for market share at the expenses of profitability. We'll optimize our operations in Latin America, in India, and Korea. We'll strengthen our competitiveness in Spain, Morocco, Romania, and Turkey, for example. We'll create more synergies within Russia because we see the potential for that. All these efforts from all functions will fuel our 2022 cost reduction plan and taking it a step further. Let's have a look at the impact on our fixed and our variable cost. We have a visibility to achieve our EUR 2 billion fixed cost reduction objective well ahead of what we have committed to, maybe by the end of 2021. The fixed cost reduction effort is happening everywhere in the company, and even more so, I would say, in engineering, where it is normally more complicated. We will push it further by 2023 to reach EUR 2.5 billion. We have plans to go further with cost discipline, including, amongst other things, a plan to revise our direct involvement in distribution markets, including with our own dealers. We think we can achieve over EUR 3 billion by 2025, when the rightsizing of our manufacturing footprint will fully kick in, as I have mentioned before. On the variable cost side, we have new design to cost approach in the product development, a clear cost responsibility to the chief engineers for new projects and to manufacturing for series cars, 30% reduction in diversity, stricter rules of up to 85% on carryover between products, an earlier involvement of suppliers in the process. All of this, I would say, makes us confident that we will be able to achieve a EUR 600 reduction per car at iso- perimeter by 2023, so in two years. I had the chance to meet the CEOs and the leading teams of our top 10 suppliers to challenge together business as usual practices. I have to say that their response makes me optimistic that we will achieve the targets, doing better work from our side, allowing them to plan for the long term, and reduce the unnecessary cost generated by our own complexity. I think it's a very healthy base for a new beginning in our relations. I thank all our supplier for their commitment because this is one of the areas where we will have to make the difference, and we will do it together. All in all, the picture on variable costs will look like this. We anticipate an increase of unit cost due to higher segment mix, and especially from the enrichments following the regulations. This will be true, I think, for everybody. The EUR 600 mentioned earlier will only partially compensate it. In addition, by our calculation, the effect of a renewed lineup and the change in market focus, we believe will be able to overcompensate and therefore increase margins. The question is: Are we able to cover the additional cost coming from regulation? The answer is yes, we can, and we will. The combination of cost reduction and our increase in net revenues means a reduction of our break-even point by more than 30% by 2023. Please note that in 2021, we will be already able to show a drastic improvement. Coming to revenues, let me show you the playbook of our product renovation strategy. We'll regain our legitimate rank in the C and the D segment with a total of 11 electric or hybrid new models, pushing the contribution of mid-size cars to our contribution margin from just 15% in 2019 to 40% in 2025. We'll manage this offensive while maintaining our leading position in the small car segment with five electric or hybrid new models. We will secure our position in the LCV segment with six models, of which three pure electric. Most importantly, we will be profitable in all segments. We'll take now a pause, watching a short video talking about the topic we didn't want to omit while building the plan, quality. Let's look at how the Renaulution will impact this discipline, too. Quality is a key topic for any OEM. We normally divide it in three dimensions, reliability, perceived quality, and durability. In the world of shared economy and new mobility, where you sell kilometers rather than the vehicle, we have a strong motivation to break the classical consumer cycle, which, by the way, all car makers have contributed to create. In this new world of circular economy, we want to reduce amortization on the hardware to lower down total cost of ownership and offer the possibility to upgrade the product throughout the life cycle. Our battery, now we know, can last easily 10 years, and upgradable software architecture will make this easier. That's why we have engaged on the one million km ZOE project, and for us, it is a symbol of the priority we have set to become the true front-runner in the new game. You will see the business implication when we will later speak about the Mobilize brands. Before closing this chapter, let me point out that although I've been talking often about the future, the work has already begun at Renault, and it has been, I can tell you, intense and also fruitful. We appointed Mission One, a dedicated team whose boss sits on the board of management and is surrounded by the best people in the company, to focus on the turnaround of the entire organization on cash, revenue, and cost optimization. We are going much faster on the previous plan commitments on fixed cost reduction, as I mentioned earlier. We have reshuffled all line-up in a matter of weeks. We stopped, I think, seven programs and decided to launch eight new ones. We are already creating value. With the help of our commercial teams, our importers, and dealers, we were able, in just one quarter, to cash back 5.5 points in net pricing. We expect to go further by the end of 2020 and are determined to sustain this trend in 2021. Something unexpected for many, an achievement that shows that everybody has rebooted the operating system at Renault. Earlier, I told you about the organization being like a four-wheel drive car, with the rear wheels being the function, pushing the performance. Let's now move on the front wheels, which pull the system towards the customer, the markets, and the business. In other words, the brands. We were speaking earlier about an unresolved approach to brand portfolio management. This is a simple way to represent it. Growing overlap between Renault and Dacia, duplication between Renault Sport and Alpine, no clear customer targeting, no distinctive technology hierarchy, nor timeline and technology allocation amongst the brands. What you see now is the way it is going to work from today, supported by dedicated organization. Dacia will stay Dacia, offering accessible products based on proven and affordable technologies, targeting smart buyers in any segment where we can provide a solution. The Renault brands will embody modernity to offer solutions in the core of the market. Renault will push the envelope on EV and hybrids, tech, and services to attract progressive mainstream buyers. Finally, Alpine will move from a kind of nostalgic position to become our tool to play automotive avant-garde. Fully electric, still sporty, and exclusive. It will give us the chance to start from scratch on all parts of the value chain, from engineering to distribution, in order to attract passionate early adopters. Then Mobilize. Mobilize goes beyond into the field of data, mobility, and energy services, and will enable us to dive earlier into the new world of mobility, providing solution and services to other brands and partners, but also attracting customers that don't want necessarily to buy vehicles, but merely use them. Let's start with Renault. For the Renault brand, we say "La Nouvelle Vague" of European automotive. That's the ambition we gave ourselves in a time where a lot of disruptions and discontinuities are giving us the chance to kind of reshuffle the cards. Nouvelle Vague, as you probably know, was the name given to a new film style emerged in France in the '50s and the '60s, challenging the Hollywood mass market dogma. A new way of doing movies, which, at that time, had actually global influence. Why? Because it offered a smart, cult, soul-filled alternative, and it represented, at that time, modernity in that industry. What is modernity in the automotive business today? This is the question. This will also be the role of the Renault brand in the house. Beyond doing what everybody expects an automotive brand to do, that means engineering, producing, distributing, and of course, servicing good cars. Modernity is not just about integrating tech in our product. It is also about managing smartly the energy business generated by electric batteries and offer unique services. I will dedicate some minutes to show that we have strong arguments, strong assets, and projects that will substantiate this ambition. We will turn Renault into a tech brand, into a service brand, into an energy brand. We are also putting modernity at the core, and we think that by putting modernity at the core, we'll be able to reinvent our footprint in France. We'll have the assets to push the entire French automotive ecosystem on the higher end of the value chain. Let's take a closer look at how we will be competitive in each one of those three fields. First, it's energy, on energy transition, especially. We are able now to challenge the leader on the hybrid market with our modular, very competitive technology, the technology we call E-Tech. We think that this is one of the best solution for European driving conditions. It's powerful, it's green, with up to 80% electric driving for an HEV in the city. We are also determined to sustain our leadership on EV, first by leveraging our two EV platforms, to create families of product in the C segment, but also in the B segment. Second, by sharing components, and especially battery modules, we will be able to develop profitable EVs at the price of combustion engine-powered models. You'll be able to see one of them very shortly. By enlarging and converting one of our plants into the biggest EV factory in Europe. We are working on ways to make it in France, including, for example, the creation of a battery plant with one of our top suppliers. This is what we meant when we were speaking about the Electropole. We'll also offer market-ready end-to-end hydrogen solutions for LCVs. We have just signed, as you probably read, an MOU to create a JV with Plug Power. Plug Power is one of the global leaders today, and together, we will design fuel cells LCV based on Renault platform and offer turnkey solution for customer, including vehicle, including refueling station, and also decarbonize hydrogen delivery, the whole chain. We will be based in France, where we will gradually localize the production of the fuel cells. Our objective, in general, is to become European number one in fuel cell LCVs, targeting a market share of about, or over 30%. The target is clear for the whole Renault brand. The target is to reach the greenest mix in the European market by 2025. Out of the 14 vehicles we'll launch by 2025, seven will be electric, fully electric. All of our new models will have an electric or an hybrid version by 2023. 30% of our sales will be fully electric cars. 35% will be hybrid. We'll be both green, but also is very important, profitable. All our EVs have a better contribution margin than their ICE equivalents. Let's talk about coming from hardware to software. Better, let's talk about our new approach to software, an ecosystem that we call the Software République. This ecosystem-Approach aims at creating world-leading next generation mobility OEMs and suppliers. Engaged in building European know-how and defending our sovereignty in these key technologies. We will develop joint expertise in user interfaces, big data, service platforms, operating systems, cybersecurity, embedded computers, sensors, actuators, just to name a few. Amongst the founding members of the Software République, we can see great companies such as Orange, Atos, Dassault Systèmes, and STMicroelectronics, just as a start. You have to imagine the Software République as a giant real-world lab where experiments on connected autonomous cars can be led in a controlled environment in real-time. To do so, we will open 100,000 sq m in our facilities to our partners. In this space, software and other groundbreaking innovation will be developed and will be tested. We will offer proximity to our engineering infrastructure, to our technical skills, and we will include our Renault Software Factory. In this lab, we'll bring 1,000 engineers and data scientists, I think the best you can find in the market. These activities will create, I believe, immediate opportunities for the automotive industry, but also for other sectors such as defense, infrastructures, aerospace, telecoms, electronics, mobility and of course, also the data industry. The Software République will be one of a kind in Europe, and Renault will be one of the founding members. How will this translate into our cars? This is Automotive 4.0 artificial intelligence infused. Our cars will get better every day as they're driven. Leveraging in-house expertise and our Software République ecosystem will offer the best connected high-tech services embedded natively in our vehicles. Let's take a look at how it feels. With our in-house Renault app, we call it My Renault, our customers stay in touch with their cars, control them from their smartphone, and prepare their trips. In 2022, Renault will be introducing My Link, a new infotainment system with Google built in. We will be the first car maker to bring Google services to mass-market cars. With Google Maps, navigation will be personalized based on the car user's frequent destination, including enhanced electric vehicles functionalities. Car users will access their favorite apps on Google Play and control car features hands-free by voice. Our cars will become more intelligent every day. In the future, they will adapt their functionalities proactively to meet the needs of our drivers. Our vehicles will gain value over time. They will be constantly enriched with new features, which will be offered to our customer over the air. Mégane E-Tech Electric will be the first vehicle equipped with OpenR Link starting in 2022. On top of getting more intelligent, the second characteristic of Renault product is that they will last longer. You have seen our remanufacturing and refurbishing services work with the ZOE just a few minutes ago. We plan to make it a hallmark of our brand. This is particularly relevant in the fleet world but also in the mobility world. This approach will have a big and positive impact, for example, on our residual values, but not only. By taking a fresh look at Flins, we actually came to realize that we are the biggest recycler in this country. We have a clear advantage when it comes to second life and end of life of batteries. In other words, a lot of money is available during the life cycle, and the control of this part of the value chain has the potential to fundamentally change the business case of electric cars. At the Refactory in Flins, we will recondition more than 100,000 used cars per year. We will repurpose diesel light commercial vehicles and convert them into biogas [at Faurecia]. We will upgrade mobility platform vehicles with new batteries. We will collect used batteries and find them a second life. This is also why we say that Renault vehicles will actually last longer. I think this is also a strong commitment to sustainability. Now let's conclude the Renault brand section with a classical product planning chart, but actually not a very classical one, and also with the go-to-market strategy before coming with a little surprise today only for your eyes. When you look at the chart in summary. In 2025, we'll be launching 14 Renault core vehicles. seven will be full electric vehicles, seven will be in the C and the D segment. It is a double down on both electrification and mix improvement. In Europe, B segment launches are 100% electric. Because our EVs already today generate a higher contribution margin than their IC equivalents, the segment will remain a pillar of profitability for the group. Our C, D segment launches are 100% electrified and will total 45% of our sales mix in 2025. The consequence of this product plan, and I must say, taking some cautious assumption on volume and pricing, is that we will increase our average price by up to EUR 5,000 by 2023 and more than EUR 7,000 by 2025. Speaking about market portfolio management this time, I want to say that for sure we want to stay global, but with a different philosophy. We'll reconquer our position in the C segments in Europe to generate margin first, but we will also focus on more profitable segments and channels in countries such as Russia, in Brazil, in India, and in South Korea. This is the approach and the strategy. I like to say also that once we would have settled the current challenges that we have in China, we will consider it coming back because it's an important country. When we do so, we will skip, I think, directly to the next generation, directly to the 6G, if you will. We are aiming at being profitable in all markets by 2023. Now, let me finish, before leaving the stage to Denis, to Denis Le Vot, the CEO of Dacia-Lada Business Unit. Let me leave you with something showing what Renaulution means when it comes to product. I know by experience that when you are able to reinvent some cult products of the brand, it lights a fire under the whole brand. This is what we expect with the new Renault 5. It's a pure electric vehicle, but at the price that many, many people will be able to afford. This is only the beginning for the Renault brand. Hello, everyone. I'm happy to present you the brands Dacia and Lada together. In fact, these two brands have a lot in common, and this is why we decided to bring them closer in the organization. Indeed, they both sit on a very cost-competitive technical, industrial, and distribution setup, making each of them a very profitable business. This model is something very difficult to replicate, at least for our European competitors. Behind Dacia and Lada's popular lineup lies a unique all-weather business model. First, a frugal and discipline design-to-cost approach in the product development, leveraging the best technically proven and amortized solutions in the group. Second, a labor cost of less than a quarter of what we see in Western European countries, combined with a very high local integration ratio. All this brought together gives to our cars a double-digit cost advantage versus competition, completed by a very lean distribution model based on low-discount retail sales. Both brands stand for real value for money, and both address the smart buyers, which represent more than 20% of the world global demand. That is why we sell lots of them. You might know that Lada Granta and Vesta are number one and number two in Russia. You might not know that Dacia Sandero is the most sold nameplate in Europe, if you consider the pure retail market. Duster is the most sold SUV on the same perimeter. These blockbusters show that value for money never goes out of fashion. The idea behind the creation of the business unit is that Dacia and Lada will remain separate companies with their own brands, history, and strategy. They will benefit from more dedicated, focused, and coordinated governance. More importantly, they will be better integrated within the Renault Group to leverage synergies. Let's see what it means from a technical standpoint. Concretely, we have decided to base both range of product on the very cost competitive and flexible CMF-B platform. We are talking here about more than one million car per year to be produced in competitive locations, Russia, Romania, and Morocco. We will go from four platforms to one, from 18 body types to 11, with up to 85% carry across between the models. Finally, upgrading the substance of the product from a quality and technical standpoint as this new platform is brand new and recently invested. Now let's talk about the product planning. The idea is also to unleash the potential of Lada and Dacia, making them full-fledged international brands, enabling them to go beyond their current perimeters in terms of markets and segments. The CMF-B platform enables us to tap into the C segment with vehicle longer than 4.5 m, as you will discover in a few seconds. This coverage extension potentially doubles the profit pool we can address. Lada will consolidate its leading position in Russia with state-of-the-art vehicles, therefore not only defending more than 20% market share, but also focusing on share of wallet. We will not stop at the Russian borders. Our ambitions are international. Entering the C segment, Dacia will be in the position to increase its average price by a fat 30% thanks to the new product portfolio. Very importantly, it is all starting right now in 2021 with the launch of the new Sandero. Just Google Sandero, and you will see the reaction of the press to this new platform. Continuing very soon with the all new pure electric Dacia Spring. What shall we do with the brands? Beyond those products, we have some ideas on how to give a new spirit to Dacia and Lada. Let's take a look. Niva, in two sizes, compact and medium, based on the same CMF-B platform. Niva is a cult product, and not only in Russia. It is the Russian automotive proxy of the Swiss Army knife, a technical product for usage in extreme condition, 4x4, high stance, short gears, and robust construction. We all know that any Russian family has a story to tell about the Niva, like any French family with Renault. We think this product have a space beyond the Russian market, as they've always had. Besides the complete renewal of the mainstream range, the relaunch of the Niva will enable the complete repositioning of Lada as a brand. Now Dacia. Shall I say, [Foreign language]Tout simplement[Foreign language]. Dacia will stay Dacia, always offering the best value for money proposition in all segments we play in. We want to bring the brand to higher grounds. Take a look at this. This is the new C segment SUV by Dacia, the Bigster concept car. 4.6 m long on a cost structure of a B segment car, and it can be fitted with alternative or hybrid powertrains for compliance with CAFE or local regulations. As a conclusion, our strategy for the two brands consists in four pillars. Maintain the unique business model based on design to cost competitiveness and lean distribution. Enhance industrial synergies between Dacia and Lada with CMF-B platform and diversity reduction. Reinforce brand identities for each brand. Expand lineup in C-segment, and increase average price. To sum up, Lada is rough and tough from Russia to the world, and the Dacia brand is the best value proposition in its segment, still with a touch of coolness and outdoor flavor. [Foreign language] Tout simplement. Thank you. Hello, everyone. I'm excited to present you Alpine. The Renault Group has an amazing sports legacy. Countless beautiful stories, gripping finish lines, memorable victories, and podiums. From blue Berlinettes to yellow teapots, each with their own crowd of cheering fans. Part lies in the global spotlight of motorsports, part in a more confidential niche sports brand. The new Alpine division will bring it all together, legacy and future, tracks and roads, F1 and A110, and reignite it all with high-tech excellence and passion for racing. Welcome to Alpine, the avant-garde brand of the group. Alpine will combine assets once seen as cost centers with an uncertain future into a fully-fledged, new generation business unit, developing exclusive, innovative sports cars. Let's look at the three ingredients composing our core DNA. First, Alpine, a true brand with heritage and pedigree. Arguably, the epitome of French motoring, building its reputation on remarkable victories along breathtaking racing stages. A brand would be nothing without the people building its products. As such, Alpine is also a factory packed with high-end craftsmanship and savoir faire, as we say in Dieppe. Second, Renault Sport, a team of 300 engineering wizards dedicated to special assignments, mastering the entire sports car development from design to after-sale. They gave us countless iconic products such as R5 Turbo, Clio V6, Mégane R.S. Trophy. The list is long. Third, last but not least, Formula one. Our F1 team gathers 1,200 [spiriting] clock masters, developing the grand complication watches of motorsports. Elite engineers trained to compete against the most aspirational and highly funded constructors. F1 is also a considerable marketing platform with half a billion fans worldwide, a unique opportunity for global branding. By bringing together the credibility of an authentic brand, specialized manufacturing, engineering mastery, and significant media exposure, we set the foundations to truly create market value around Alpine and take it into a different league. This core of key assets will be further strengthened by leveraging a solid environment. Alpine can lean on the scale and capabilities of the Renault Group and the Alliance, tapping into a rich pool of existing resources such as leading-edge technology, including the Alliance EV native platform, offering best-in-class EV performance. Top-notch production facilities and a powerful purchasing arm, ensuring optimum cost competitiveness. An 1,100-strong dealership network worldwide, and the array of RCI financial services, offering the potential to multiply hundredfold the distribution of Alpine. All of this will provide strong basis and immediate levers to the new business model. Above all, it's from within that this newly formed division will extract the necessary spirit and additional value to switch gears. Building on F1 expertise and technologies, we will inject cutting-edge features in all Alpine products. On the track, every kilowatt of power is paramount. Energy management is a skill we've honed for more than a decade. Taking this expertise to Alpine cars, we will deliver highly efficient electric powertrains, seamlessly connected to the road and the grid for best-in-class experience. On the track, time is of the essence. Data must not only be swiftly exchanged, but also rapidly analyzed and processed. F1 know-how will translate into state-of-the-art connectivity solutions, but also turn Alpines into intelligent machines, learning patterns to adjust behavior to routine commutes or sporty runs. More than ever, the future of Alpine is electric. We leverage the Alliance EV platforms to launch a B-segment hot hatch and a C-segment crossover, 100% electric. We will team up with another legendary brand to imagine the future A110. Electric, of course. Together with Lotus, we will develop the next generation of EV sports cars. These exclusive future-ready products are meant for discerning, passionate early adopters. With this exciting lineup we call our Dream Garage, the story becomes real. By now, there should be no doubt that racing in general, and F1 in particular, will remain at the heart of our brand. We renewed our full F1 commitment, and we'll enter the new regulations era in 2022 with the objective of consistently contending for podiums. 2021 will be a transition year for us like for all teams. The climb towards the summit has already begun. We'll proudly defend the Alpine team colors with our very own Alpine racers. I'm very proud to show you for the first time, our car for this season. Stay tuned. We'll unveil the livery of the newly minted A521 next month. To wrap it up, the new Alpine is a story of three brands and foreign entities all merging into one to create an invaluable asset. We'll be agile, smart, and opportunistic, leveraging the best of the Renault Group and the Alliance, and teaming up with partners to go even further. Our goal is to be profitable by 2025, including investment in motorsports. We'll move from nostalgia to avant-garde by offering an exclusive, authentic lineup made of high-performance EV sports cars for everyday driving. Thank you. Let's now move beyond automotive. Mobilize is a brand on a mission. Embracing disruption, we will help solve three major challenges of the auto industry. First, the gap between usage and cost. People pay 100 but use only 10. Second, the rapid loss of asset value. We will fight against the residual value dictatorship, the one imposing that new vehicle value should drop by over 50% after three years, independently from product physical obsolescence. Third, emission. In Europe, the auto industry weights about 15% of the CO2 global emission. We strive here for zero impact. Why are we embarking on this mission? Because many customers are expecting more from automaker. They move away from consumerism and wish for responsible, efficient, clean solution. As a carmaker, we have all the assets and expertise to choose the role we want to play in the new car usage. We'll transform this disruption into opportunity for profitability. Beyond the core auto industry, we'll capture new growth territory. The value chain is evolving quickly. Value pools are shifting up towards moving to mobility, energy, and data services. All in all, these three value pools will grow by 40% from 2019 to 2030, to a total of over EUR 370 billion in Europe alone. This will be the playing field of Mobilize. Why will we succeed? Because we have unique assets and a smart business approach to leverage them. First, we know how to make cars. More than cars, purpose-designed vehicles meant for mobility services. Second, we know how to do business with those cars beyond selling them. RCI can offer a right array of solutions. Third, we will provide data, AI, and mobility software platforms, and best-in-class onboard connected services. Beyond digital, we can extend our service offering and geographical reach, thanks to our unique network of physical touchpoints with 6,000 dealership in Europe alone. In addition, we can leverage the Refactory in Flins to extend vehicle and battery life. On top of these assets, we created a dedicated, agile business unit. Mobilize will have its own engineering and design teams, its own service offer in energy, data, and mobility. It will also benefit from Renault Ventures to work with startups. How will we create value for all stakeholders? First, as mentioned, our purpose-designed vehicles will be engineered for mobility services. Their robustness, lightness, modularity will optimize their operating cost, and being electric will enable them to access cities anytime, anywhere. Let's take an example. The car sharing service, Zity, in Madrid, operating on ZOE, was roughly breakeven before COVID-19. It was a successful mix of using algorithm and leveraging Renault dealers. Imagine the impact of using Spring, which is twice as cheap. In average, we aim at reducing operating cost by a minimum of 20%. Second, we'll make fleet acquisition easier. The financial services provided by RCI will allow fleet operators to subscribe, lease, or pay per use. This way, fleet ownership costs can become variable. Smartly financed fleet operation can turn into an asset-light model. Third, we will increase used car usage, thanks to our dedicated mobility data and AI platforms. We leverage the Renault Software Factory, the Software République, and partners to develop leading-edge algorithm and data processing software. This will allow better prediction of users' demand and better allocation of vehicles. We aim at increasing the rate of car use by at least 20%. Finally, we'll offer maintenance and recycling services for car-sharing fleets. When our vehicles are no longer fit for use, we have a sustainable solution. End of life for an electric vehicle does not mean end of value. At the Refactory, we can recycle used electric batteries by giving them a second life as a stationary source of energy. This will generate at least EUR 1,000 per battery. Let's now take a sneak peek at our cards up our sleeve. This lineup is adapted to the most critical new mobility needs, car sharing, ride hailing, last-mile delivery, and we're also working on on-demand transit. Let's start with our ace, EZ-1. EZ-1 is a snappy two-seater fit for end users, operators, cities, you name it. Cost efficiency meets durability. EZ-1 zooms around, single or duo. It's electric and modular. The rear seat can turn into a trunk. Its exchangeable batteries will make it independent from public infrastructure. Made out of 50% of recycling materials, it will aim to be 95% recyclable. On to the King. The King is the latest Dacia revolution, all electric, lean, and affordable. That's the best cost of ownership operators can get for a four-seater. Like all Dacia vehicles, it's robust, practical, and focused on the essential. The Queen. The Queen is entirely designed and developed for ride hailing. It has an autonomy range above 400 km. It will offer best-in-class roominess and comfort, with its 4.6 m length and 1.8 m width. Finally, the Jack of all trades. The vehicle will draw on our concept car, EZ-Flex. Its last-mile delivery solution is agile and practical, with an innovative loading and unloading module, and its cabin is especially designed for high-intensity door-to-door delivery. This is our hand of cards to win the mobility services game. Now, let's see what an ace on wheel can do. In conclusion, Mobilize will provide access to vehicles and mobility services directly to end users, through corporates and cities. We'll offer a unique combination of hardware and software, dedicated vehicles, and leading-edge services. We'll build on an integrated and seamless client experience onboard and off board. We leverage our proprietary data from connected vehicles and mobility services. We'll benefit from our ecosystem of partners and startups. Tomorrow, by offering access to cars from one minute to a lifetime, we will create a unique value proposition for end users. Our turnkey solutions, including fleet financing, ride hailing, car sharing, and energy services, will also create unique value proposition for operators and public authorities. All in all, Mobilize aim at contributing more than 20% to group turnover in 2030. Thank you. Let me take back my CFO hat with my usual bias, under promise, over deliver. Let's be clear. The Renaulution marks a new beginning for the group. In order to illustrate how we will exceed 3% operating margin profits by 2023, we have split the impact coming from external factors and the one depending on us. We're not betting on a strong recovery after the exceptional 2020 situation. Even though this visibility remains limited, we expect around 25% increase in our main markets in the new three years versus 2020. The seasoned bar shows the main external factors like raw material, Forex, and the non-recurring cost reduction related to the 2020 lockdown. We also have in this bar the provision we have accounted for in order to cover unexpected risk. The next bar is what we expect from our commercial performance and sales to partner. The impact is negative because our focus is no longer on volume and sales to partners' assumptions are based only on the existing contracts. The chart does not reflect any potential new business upside. Cost reduction will be the strongest lever for our margin improvement. As I already told you, part of the cash cost reduction is not helping the P&L as the lower capitalization ratio and the increase in depreciation will limit the P&L improvement. The second major lever is the mix price enrichment. Beyond the pricing policy, the mix will increase as we have a clear ambition to do better business rather than more business. Enrichment will come from the required electrification of our lineup, even after this cost, this bar should be a strong positive. The last bar is the increased contribution of AVTOVAZ and RCI. Here as well, we have been prudent when setting the assumption. We told you that cash generation was our top priority. The cumulative cash flow from 2021 to 2023 is going to more than cover our investments. This will be the consequence of the improved cash profitability and lower investments. I must add that the cash flow assumption includes a dividend payment from RCI to the auto business, and as you know, the timing of this payment is subject to European Central Bank decision. The working capital improvement should generate some cash inflow, sufficient cash inflow, to the same tune as a restructuring outflow for the period under review. We have not factoring a strong working capital inflow as, once again, we base this plan on the quality of the business and not on volume. We will keep our investment in R&D under control. First, because we passed the peak and invested in the most advanced technology to comply with ever stricter regulation. The investment may not have been the wisest, at least now we have good assets to build on. The second, because we made decision to stop programs that were too expensive to provide a good return. R&D costs should decrease from about 11% of revenue to below 8% by 2025, thanks to a clear focus on ROCE and much lower diversity and complexity. At the end of H1 2020, despite the COVID impact, we had EUR 16.8 billion cash in hand and confirmed credit lines, including EUR 5 billion state guaranteed credit line. During Q3, we have drawn down EUR 3 billion of this facility, another EUR 1 billion in December. The reason why we have decided to use an additional tranche is that this facility was to disappear at the end of 2020. Given all the uncertainties with the pandemic, we thought it was wise to increase our watches. The reimbursement schedule that you see on the chart does not include the redemption on this credit facility, as we want to keep the benefit of its relatively flexible reimbursement term. In any case, we'll keep our liquidity reserves, including the confirmed credit lines, at a minimum of 20% of our revenues. As you see, our destination is a place where the operating margin will be at least 5%, with a total cumulative free cash flow of EUR 6 billion between 2021 and 2025. Finally, an improved ROACE by more than 15 points. I think this guidance confirm the turnaround underway in the company. Thank you, and back to Luca. I would like to take a minute to comment this turnaround roadmap. A minimum of 5% of operational margin might seem a [lack warm] ambition. Let's not forget where we come from. A little over a year ago, and before COVID hit, our results started to deteriorate with an automotive operating margin down to 1.3% in H2 2019. Last summer, we reported a negative operational margin of EUR 1.2 billion and a negative free cash flow of EUR 6.3 billion. Our numbers are bottom up and rock solid. Our assumption are cautious. We did not bet on any market or partnership upside, as Clotilde said. This financial performance will be the consequence of a profound transformation of our operations. We've set the basics, steady, healthy, sound foundations for a sustainable performance. To do so, we have done more than just resizing and cutting excessive costs. We streamlined our organization with a purpose in mind. We have stopped programs initiated new ones and reallocated our capital wisely. We concentrated our efforts on highly efficient modular multi-energy and full electric platforms. 80% of our production will be based on them. One single family of ICE powertrains will keep all our passenger cars. We push the boundaries on variable cost reduction, embarking our top suppliers with us. Together, with our efforts on pricing and sales mix, this will allow us to face the regulation-induced variable cost peak and still be profitable. These cost reduction efforts don't just aim at downsizing Renault. They aim at turning Renault into a leaner company ready to grow again. This leads to a stronger operational resilience, with a breakeven point lowered by 30% and more. That's only the beginning. We'll build an in-house capacity to face more regulatory challenges, innovate, and offer competitive tech-infused smart vehicles. This in-house capacity is supported by brick-and-mortar assets like the Electropole, the Software République, and the Refactory. It also supported by new skills and expertise from the AI, data specialist, microelectronics, and software engineers. This in-house capacity will be the foundation on which we will build our own business within and beyond traditional automotive value chain. It is very clear to all of us that today we are a car maker integrating tech, but tomorrow we want to become a tech company integrating vehicles, and we have already started the journey. Before ending this presentation, let me say three last things. First, I would like to hand over the stage to my dear colleagues and partners, Uchida-san, CEO of Nissan Motor, and Kato-san, CEO of Mitsubishi Motors. I have presented them our strategic plan. They could not be with us today, but they did it the kindness of to say a few words. Thank you, Luca. Hello, everyone. Today is an important day for Renault Group. I'm sure their strategic plan, Renaulution, turns a new page for them. On behalf of Nissan, let me take this opportunity to express my view. In summary, I believe Renaulution is a well-laid-out business strategy, taking into consideration the current ongoing macro and industry trends, but also with an aggressive vision towards the future. I would like to first congratulate Luca and the whole team under his leadership in crafting this strong plan towards Renault's Renaulution. When Luca shared this plan with me, I felt strong resonance with Nissan NEXT, our business transformation plan. With a clear focus on repositioning, I believe that Renaulution's concentration on brands and key segment while balancing product portfolio will help them deliver clear value and move them beyond automotive. This definitely complements Nissan's approach to beyond mobility and driving innovation. In May 2020, Nissan announced Nissan NEXT, that aims to return the company to a growth path and reestablish our foundation to compete in the coming decade. Currently, it is progressing well. Our alliance partner, Mitsubishi Motors, is also progressing on their recently announced mid-term business plan, Small but Beautiful. Together with today's Renaulution, each company's plan is designed to capitalize on the asset within the alliance. We all share common interests and are all aggressively positioning ourselves in connected, autonomous, and electrification area. As Luca mentioned in his presentation, the complementary and collaborative nature of our business plans makes me very confident of the opportunity the alliance presents. We all need to be prepared to face a very challenging business environment ahead of us, a challenging environment that we have never seen. In order for us to remain in this race, each partner company will need to focus on their individual ambitions, capitalize on their strengths, enhancing our competitiveness, and at the same time, collaborate more closely among partners to support mutual growth. It is critical that the three companies further enhance their combined strengths. On a final note, I'm looking forward to seeing Renault back on the path to long-term growth under the leadership of Luca. Nissan will also do its best. Please count on us. Thank you. Hello, everyone. I'm Takao Kato, CEO of Mitsubishi Motors. First of all, thank you very much for giving me the opportunity to make a comment on Renault's new strategic plan, Renaulution, developed by Luca and the colleagues of Renault. After hearing Luca's impressive presentation, I'm more confident that Renault can achieve the goals of this challenging but dynamic plan, which leads Renault to realize further growth. In July 2020, Mitsubishi Motors announced our three-year mid-term business plan, Small but Beautiful. Renaulution and Nissan NEXT both resonate well with our plan, helping us pursue value rather than scale or volume. I believe Renault's three-step approach to 2030 allows for agility to adapt and evolve to the many uncertainties we face today. Mitsubishi Motors is now focusing on completing our structural reforms and further strengthening our competitive areas. I am glad to see a similar synergetic approach in Renault's plan. The current plan allows for many areas of collaboration among the alliance partners and leverage collaboration as Renault strengthens their position in Europe. Nissan pursues their core market strategy in the U.S. and China, while MMC concentrates on ASEAN. As I said, the world has been facing a very difficult situation, and it is going to continue for a while. However, I believe that we, Renault, Nissan, and Mitsubishi Motors, can overcome this tough situation and achieve our future plans by holding hands together. Thank you, and all the best to Luca and all colleagues of Renault. Thank you, Uchida-san. Thank you, Kato-san. [Foreign language]. I know you are watching us from Yokohama and Tokyo. Your support is most valuable to us. I also want to take this opportunity to thank the Renault board for their contribution and support. Second thing I wanted to say is that electrification is only one pillar of our CSR strategy. As a leader in this industry, Renault has an ambitious CSR plan, which will be unveiled at the general assembly in April, along with our new corporate purpose. I can already tell you that our CSR plan will be bold and revolve around three main topics: environment, safety, and inclusion. Finally, I'd like to say thank you. Thank you for your support in general in these tough times. Thank you for your attention on this very intense 90 minutes. A special thanks goes to all the people that contributed to develop the plan and organize this event. Even though some of the ingredients were already in the house, most of these projects have been created and activated in the last six months. It tells you about the speed and energy moving our employees in this time of crisis. The Renault people want their company moving away from the state in which it has been recently. Imagine what might happen if we continue with that level of dynamism for the next six years. A particular thanks goes to the 40 colleagues of The Source. You see them on the screen, the team that helped the board of management feed and structure the plan. Our team has put all its energy in it, and the most important thing for me is that Renaulution is Renault peoples' plan. Seeing what I've seen, the project, the team, the leaders, I am now, after six months, very optimistic that we will turn this company around and succeed. Thank you very much. We will open now after a small preparation to your question in a few minutes. Good morning, everyone, thank you for being with us this morning. After this rich presentation, I think it's time to open the Q&A sessions. Operator, who is first in line? Hello? Who is first in line? First question from Thomas Besson from Kepler Cheuvreux. Please go ahead. Thank you very much. It's Thomas Besson, Kepler Cheuvreux. I have two areas of question, please. First on brand positioning, and then on the targets. I'll start on brand positioning. I like the ambition to lift the average transaction price so much for the Renault brand. We've seen in the last 25 years that the Renault brand has not necessarily been able to carry such transaction prices, and that the recent efforts to bring fresh C and D segment products in the current generation have not reversed the trend of market share loss. Is it possible to have something more than the arguments you've given us in the presentation to explain your confidence in the ability of the Renault brand to carry such a transformation in terms of transaction price? Maybe give us an idea of what proportion of your 2020 Renault volumes were already at or above EUR 27,000 but for the Renault brand. On the Dacia Lada brand, a simple question about the regional reach you intend to reach, and the ability to limit the overlap with the Renault brand once you reach the C segment in 2025, how can you do that? Are you going to refrain from having both brands in each market, or are you going to use different tools to limit the overlap? I think you didn't mention, Luca, who was going to be the designer for each brand or whether it's going to be a team effort. On the targets, historically, Renault has been disclosing automotive and RCI margins. Should we expect from here that you're going to disclose profit contributions by brand? Should we assume as well that the targets you've shown, at least three and at least five are clean targets, or are they pre one-off targets as in the past? Lastly, maybe more as a support than a real question, how much do you have in common with Peugeot for these targets? We know they've underpromised with global targets, and their stock price also fell when they presented their different plans. Do you think this is going to be the same for you? A negative stock price reaction initially and a stronger overall delivery on performance? Thank you very much. I know it's a lot of questions. I'll leave it to Thierry. No, that's fine, Thomas. Thank you for your questions. I guess that the first one is for Luca. Yeah. I think we have strong arguments. The idea of going back to the C segment is nothing new for Renault. When I was here 25 years ago, Renault launched the Mégane family. It was a great idea with different body styles on the same platform. It worked pretty well. It's just that in the last generation, we missed the wave of C-SUVs and we started doing sedans or MPVs, et cetera. You can explain half of the, let's say, lack of performance to our benchmark, basically because we were not so successful in the C-SUV. In the plan, you actually have seven models on that front between electric, combustion, hybrid, et cetera. I am very confident that the car will come, will make the job. In the proportion, it's difficult to answer what kind of proportion we have today, but I would guess that in the chart, we say we go to 45% of Renault cars in that segment. We're probably around now 25%, something, 30%. It's a big jump, but we've done that in the past, and it was because of lack of a competitive product, not because our dealers are not able to sell those cars or because people are not expecting Renault to be between, I don't know, the EUR 30,000 and EUR 50,000 price range, if I may. I will use the opportunity to answer also the other question, not all of them. On the design, we have also organized the design by brands. You have each brand, Gilles Vidal is on Renault, Alejandro Mesonero is on Dacia, Antony is on Alpine. Patrick Patrick is on Mobilize. I also, Laurens is like the godfather of all of them, is trying to govern this whole thing. You know that Laurens is a key member of our team. What I've asked him, and I've asked also the newcomers, is really to work as a team. I think, sometimes they are around the cars with very famous spin doctors. You need the opinion on everybody. That's the way I want them to work. They need to keep their identity. They reorganized their offices. I think we will create more brand culture by doing also that. It's not only on design. The last one is on the comparison with the PSA. Yeah. It's clear that what Clotilde say, we try to be very realistic, okay? In the way we define the targets. These are numbers that we did with the people in the company, so it's not only a top-down dream. We are there to make sure that we are reliable as a team. That's why we commit to the three and then to the five minimum, because we know we can do these numbers even in the worst condition. That was a rule of engagement by doing the plan. We kind of capped the volume. We were very prudent on the market evolution. I think the company needed that, rather than dreaming about things that were more stretchy and then not deliver them. It is clear that we go into some kind of underpromise, overdeliver kind of sports. Yeah. I think there was another one. Yeah. Maybe I can rebound on target, and then we'll finish with Denis on Dacia. Yes. Yeah, Thomas, they are very clean. We have taken into account, as Luca said, assumptions on volume, which are very fair. Everything, as I said already, everything which will come on top, like better market situation, an outstanding success of a product, any partnership, there is nothing on partnership in this plan. Clearly, this is what we know we can do. Clearly, the ambition in the company is to do a lot better. You know me, we say what we know we can do, we want to do more, and we strive to do more on a day-to-day basis, every week after every week, and on a quarter after every quarter. We're reaching for what we know we can do and change the company. That's clearly the ambition. Underpromise, overdeliver, whatever happens. To feedback on one of your question also, we're organized by brands, but as you have seen, the functions still are central. We're not aiming today at publishing our results at the operating margin level by brand. You're going to have RCI as always, and the rest is going to be on a different line. We're not going to publish by brand for the time being, because the organization is really with central team for R&D, for manufacturing, we stay central. Everything would be a question of allocation key, and we don't want to enter in this game. We prefer to keep it the way you have, automotive, RCI, for the time being. Maybe one thing on the organization. Can I take the mic? Part of the organization is central. We have also tried in the brands to inject know-how. You will have for each brand, head of engineering, head of purchasing, and the industrial part, but we try to do it in a lean way and keep centrally, that's what Clotilde was referring to, keep centrally what doesn't make sense to divide between the brands in a smart way. One thing I want to say on the target, to rebound on what you were saying, is that, as we took relatively prudent, cautious assumption on volumes, even in the projects. that means all the projects are built with new cars or with a volume projection which is more than feasible. Of course, the leverage of volumes and size is pretty big. I was discussing before with some of the colleagues, probably if you have a 5% increase in turnover, you get 0.5 points of profitability more. You have a strong leverage. How can you bet on a explosion on the market in a situation where we are today, right now? I think it's better to do that, make sure that we can sit on a very solid platform, and then we will grasp any opportunity that the future will give us. Yeah. Denis? Yeah. Thank you for the question, Thomas, regarding the potential overlap of the brand. What we see today is that it should not be a problem because it is not a problem today. We have a great experience on the B segment, and we are targeting different client. I will give you two. One example in Italy, I'm taking Italy here. When you take the cross-shopping, which is the hesitation of a people buying a Clio, none of them in top five, there is no Sandero. If at the same time, in the same country, you consider the people buying Sandero and you ask them what was their hesitation models, in the top five, there is no Clio either. Which means that we are addressing completely different client. Example, Sandero starts below EUR 9,000, so these are different clients. Essential does not mean boring, and we think we can replicate this into the C-segment, and this is what we are going to unleash. The car you saw is based on the CMF-B platform. It's going to be super efficient, again, in terms of value for money proposition. When you know the kind of marketing we do with Dacia, you can imagine what it can be on a C-segment. It's a huge potential, clearly. Thank you. Next questions, please. Thank you. Next question from George Galliers from Goldman Sachs. Sir, please go ahead. Thank you. Thank you for a great presentation. I have to say, I think everybody's probably excited by the new Renault 5. My first question was just on the margin targets. Obviously, you've given group operating margin targets. Can you give any insight into what your expectations are for the auto margin target by 2023 and 2025? I think if we do some sort of rough calculations based on the level of profitability expected for RCI, and FaaS, it would imply a 1% margin for automotive in 2023. Does this sound sort of reasonable to you? The second question I had was just with respect to the fuel cell strategy in LCVs. Obviously, you're looking to have market leadership. Two questions on this. Firstly, by introducing fuel cell, are you not adding incremental complexity back into the powertrain by essentially having another powertrain derivative? Also when we look at fuel cell, there are several third-party studies that suggest that from a cradle to grave perspective, fuel cell has a higher CO2 footprint than battery electric vehicles. In this context, is fuel cell the right strategy to decarbonize your overall footprint? Thank you. On the margin, thanks for the question. Yeah, you are right. Historically, RCI, the difference between operating margin and auto operating margin was between 1.5 and 2 points of difference. If you do the same calculation, you would come to something around. Again, it is a floor. First, RCI, we took also cautious assumption because of the cost of risk and the environment. Again, this is a floor. Our ambition is clearly to do more, but this is a calculation that makes sense. On the LCV, I think I speak under the control of Gilles, but on the LCV and fuel cell, I think you have the answer. You are asking whether this thing will bring us complexity. The way we see fuel cell integration in LCVs is basically with the idea of a range extender, which is an electric battery car with an engine, okay? The basic car is the electric LCVs that we were planning. We already sell in the market. The next generation will be fitted, obviously, with the new technology. It doesn't bring complexity. It's a solution because looking ahead into the development of the regulation, we really fear that the life of diesel engines, also for commercial vehicles, will be in danger. The ability that we might have to be very quickly on the market with the new hydrogen range extender solution, it's actually the way for us to pass the CO2 and to offer a solution for long-haul transportation in intercity. I don't know if you know, Renault is already with the fuel cell offering in the market. It's not something new to us. We know how to integrate a stack. The project with Plug Power goes beyond the product itself. I answer to your second question, because as I said, the uniqueness of the Plug Power approach with Renault will be that we don't only take probably one of the best stack in the market. We will integrate it with our experience in the product, but we will also take care and offer full-fledged solution to consumer, maybe big fleets, that want to buy the charging infrastructure. We will integrate in our business case also the production of decarbonized hydrogen. Why we think we have an advantage? Because we are in France, and with the energy mix behind the whole French ecosystem, we think we can produce at good cost, decarbonized hydrogen, and that will contribute to the whole story and to the CO2 reduction. I wanted to add. It's [Foreign language]bon, Gilles. Bon, Gilles. No. I wanted to add something on the margins that I did mention in the speech, but I wanted to re-emphasize. Don't forget that we have a big impact from, again, higher depreciation linked to the investment in the past and the lower capitalization ratio, which combined with lower expense in R&D, the amortization plus capitalization ratio has a huge impact on our operating margin in the tone of between 20 and 23, maybe one point or something like that. It's true that the progression on the operating margin may not seem high, even though, again, it's a floor. The progression on the EBITDA is a lot faster. That's what I wanted to tell you. We probably are one year ahead in terms of reaching what we had done in the past, when you look at the EBITDA level versus what you have on the automotive margin. We're paying the heavy investments of the past. That's why we're a lot more confident to announce big numbers on free cash flow, because here you see the whole benefit of everything we're doing in terms of increasing the operating margin and reducing the R&D and CapEx level. What you saw on the slide was really that, for first time since quite a few years, our cash flow generation from the operation is able to cover investment as any company should be in a position to do. That's the point I wanted to mention because I think it's very important when you're going to do your model, not to focus only on operating margin. Again, we have the burden of the past, but really focusing on the progression of the EBITDA that you're going to be calculate yourself on your model. There is also one thing which, I don't know if the mic is on. Yeah another thing which we need to underline is that with the new product plan where we try to defend our position on small cars and then we inject a very good, let's say, lineup of product on the different brands on the C segment, you actually make the whole thing more balanced because we were on 70% of our margins on basically one platform. Okay? Industrial, but also from a business point of view, we would be facing a situation in 2025 in a positive way that we haven't had for many years. Yeah. it makes the whole thing, at least we are at least on two legs. Okay? this is very important story also. Thank you, Luca. Next question, please. Next question from Arnd Ellinghorst from Deutsche Bank. Sir, please go ahead. Yes, good morning, everyone. Thanks, Team Renault for the presentation. The first question is on consolidation and how the industry will shape out. Look, we've talked about industry consolidation for a long time, but so far it's largely been within the auto industry. I think it's very likely that in the next 10 years, there's a lot of tech entering the space. We see Baidu talking to Geely, Apple to Hyundai, God knows what Tesla does with its $800 billion equity. In a world where tech enters the traditional auto manufacturing field, A, how do you see the industry shaping out? B, which role do you think that Renault should play? Would you be open to collaboration with a tech company? Secondly, and more briefly on Mobilize, because you mentioned 20% of group revenues by 2030. That's a very big call. Other companies clearly step away from ride hailing, car sharing activities and focus on electric and connectivity. Why is Renault still in that area? It's very hard to earn any money, even if you make 20% of your revenues in there, it's very unclear to us at least, how you're going to generate good return on capital employed in that area. I'm a bit surprised that you still have this relatively strong focus on some of the, especially car sharing activities. Thank you very much. Thank you, Arnd. I go for it? hello, Arnd. Yeah. I want to tell you that for sure we are open, and you see it in some of the statements that we are making. When you look at the Software République, it's about bringing together, let's say, company from different sectors, from infrastructure, energy, deep tech company to work for us. In exchange, we can offer a lot of things to these people. We have had so many discussion, even in the space of shared mobility, where we understand that, let's say they need us, especially for some of the things, for the control and the presence on the field, but also for the vehicle integrity. This is exactly the Mobilize thing. This is why I believe that Mobilize will work, is that you have an engineering team behind, you have a design team behind, and you plug it with the bank, with the possibility of financing the fleet, et cetera. For me, Software République and the Mobilize story, the circular economy thing about Flins, the story of Plug Power and let's say the hydrogen story, the thing with Going North tells you the vision we have. It's an integration, and it's a company that turns into a much more tech company than it used to be in the last years. That's what we see it clearly. We are very open. I also consider that we have unique assets, and I leave it then to Clotilde, who's in charge of bringing the 20% in 10 years of turnover. We really have unique assets to make the share mobility business or the new mobility business, in a way not dilutive. Okay? We are not betting on making money next year. Tomorrow. We have been also there very prudent. Please don't reduce the whole story of new mobility to car sharing. That's a little bit limiting the scope of the thing. We have a lot of things. You have energy, you have data, you have whatever. Maybe I can bounce on that, and then we can talk maybe more if you need on the consolidation. On Mobilize, yeah, 20%. First, it includes many things. It includes RCI, it includes everything we're going to do on leasing. As Luca said. Subscription subscription. Today, more and more people don't want to buy a car. They want to lease a car, at best. In many cases, they want just to pay for the ride and pay for the kilometers they want. They want to go to subscription. They want flexibility. They want to be able to get out of their contracts whenever they want, or they want to change cars. All of that is embedded in Mobilize. You have the RCI turnover, everything we could do in leasing together, alone, with RCI, with other companies. Everything we do on the energy front, everything we would do in terms of data monetization. It's a big number, and it's in 10 years. What we wanted to say with this 20% is Renault is looking at the future. If we stick to the usual model, waiting for people to be 55-year-olds to buy a car and get financed by the bank, we know that in 10 years, it's not what it's going to be. It's turning to a very different model. Many people don't want to own the car anymore. We encompass everything of that in Mobilize, saying, "This is where we want to play." We want to make sure that by focusing on today what we're doing, we don't forget the future. A few more things. We would, nevertheless, want to go in car sharing. As I said, we have found a way not to be losing money on that stuff. You know me, I'm the CFO, and I think it's no surprise if Luca put me on that job. It's because he knows that I'm not going to spend billions. Losing money. I would not sustain that as a CFO. The combination of my knowledge of what RCI is doing, my role as CFO on Mobilize is to make sure that we look at the future, but we don't burn money, and we don't forget the return on capital employed. Luca, do you want to add something on the consolidation of the industry? Consolidation is, everybody, there are different opinion. I think it's an issue that for us, it's behind since many, many years with the Alliance. Our focus, as a team, is to make sure that we can really leverage the potential and the reach that the Alliance gives us. I think that the fact that Kato-san and Uchida-san were today at the presentation is a very symbolic act, for which I want to thank them because it gives everybody a feeling that we're working together, trying to solve operational issues, try to, let's say, to make sure that we can leverage all the possibilities the Alliance gives us. There is still a lot of potential, and it is working well. Unfortunately, we cannot travel too much- to Japan. That's a pity. They cannot travel to Europe. Hopefully, this thing is out, and then we can shake hands and continue to work as we're doing. Thank you. Next question, please. Thank you. Next question from Jose Asumendi, from JPMorgan. Sir, please go ahead. Jose. Thanks very much, Jose. Good morning. Good morning, Luca. Hello Clotilde, thank you for the great presentation. Just maybe a couple of items. There's some big numbers on Dacia, right? You're going from four to one architectures. You've got 85% carryover products. You're doing a double-digit price increase. It's very interesting to see how much progress there is still to be done on Dacia, on a brand that's already driving very strong returns. Can you talk a little bit about the CMF-B architecture? How is it going to play a role to leverage the resources of Dacia with the group? Can you talk a little bit about the momentum on when does Dacia really gain much farther incremental volumes on the architecture? I'm very interested around the price increases. Is this product mix related? Are we going to have some additional product launches that are going to upscale the brand into a different level? That'll be very helpful to understand. Second question, please, around the key actions behind the upping of the fixed cost saving to the level of EUR 2.5 billion. What is making you more confident within a different bucket you have in fixed cost? What do you think is going on track, and what has been already been achieved, and you think you can overachieve? Final question on pricing. Luca, can you talk a little bit around also, please, the incentivization or the relation with the dealers across Europe? Do they understand that Renault is going to be much more targeted in terms of the segments? We're not looking at volume targets. Do they understand the right level of mix needs to incentivize going forward? I believe you've been doing a lot of work on that field as well. Thank you. Do you want the first? Yes, I will. Thank you for your question. I hope the microphone's working. Yeah. On the CMF-B, the presentation, I think, was very simple, is the fact that we are going to have two new levels of synergy at the Lada and Dacia brand. One is technical engineering one, production one, which is the introduction of the CMF-B. CMF-B is a brand-new platform. Of course, it's the same as we're already using for the Clios and the Capturs, but that has been re-engineered on design to cost. Proof point is the Sandero that we are being launching right now on this platform, starting less than EUR 9,000 as an entry price. We did the job already and recognized by the press on the platform. This will be the first lever. It will be applied to Lada, and that is why we are going to switch from four to one platform, is when you put together all the Dacia model and all the Lada model, they're going to be coming back on one platform. This is also the second lever that you talked about and that we presented. The CMF-B platform will permit us to tap the C segment, and the car that you just saw, the Bigster, is designed on this very platform that is being shared between this Sandero up to the C segment SUV. Finishing on your question, how does the portfolio will increase gradually? We're just starting exactly right now with the Sandero Stepway on the market. We're going to be adding to the range of the Dacia product this spring, the full electric new car called Spring. Of course, these two cars are going to arrive further down the road, the SUVs based on the CMF-B platform. I can make an addendum to what Denis said. This is probably what we call a P13X. It's probably one of the smartest projects we have in the whole house. We're doing seven models across three brands in three or four, let's say, production locations on the planet, for what, how many per year, if you include everything? 1.2 This model is going to be more than EUR 500,000. It's going to be EUR 700,000. Exactly. Just on this model. With 85% of carry across. This is probably one of the most interesting project we have in the whole plan. There are many. One thing I want to underline, José, is that this car will also be used on an international base with the Renault version. It is very important to say because it will support the repositioning of Renault upwards, and think about Latin America, et cetera, where, because as I said in the presentation, in some cases, we are too low into the thing. We deserve more. We deserve to be in the core of the market. We will use this base also to do a Renault version, but it was designed and imagined as a Dacia first, and then we had the idea of resurrecting the Niva brands to make it a very technical product, also fit for expert and fit for some extreme utilization. It's a very good project for me. Yeah, sorry. On fixed cost? Luca, do you want to answer the question about the price? Yes. Mix? Look, I think we have really seen some very strong signs. As I mentioned in the presentation, I was even personally surprised, but I think that it went so fast. The people understood what I meant when I was talking to the commercial guys, and Denis was the head of the tribe. They switch very quickly. We gained 5.5 points net pricing in one quarter. I'm not going to, let's say, tell you that I do it more than 20 in one year. I have to say that by the end of 2020, it's getting better, and also because we made some, for example, decision, it will continue in 2021. One of my objective was to close the gap to our benchmark in terms of pricing. I think we're going to get there. You can look at a lot of, as you like numbers, obviously, you can look at, for example, how we behave with the landing at the end of 2020. How much stock we have into the thing, whether we have pushed stock and all. You will see that there are already a lot of concrete signs that we are changing policy towards our dealer. Do the dealer understand that? They will see the presentation live. There probably is a lot of them seeing that. We will have a discussion, I think if it's not today, it's tomorrow, with them. We're starting to pass this message, but the teams in the markets have already engaged in discussion on how to change the reward policies for dealers, because we want them to make money, because we know that if they make money, we will make money. I'm very clear on that. I've always been in all the companies I worked. I think together we can do it. You have to understand that Renault is one of the companies that was the top-notch university on sales and marketing. Okay? The base is there, and we're going to come back, and we're going to be very good in our go-to market for our consumer and for our dealer partners. On the fixed cost, I may take it. As we told you during the Q3 call, we were going faster than anticipated, and you will see that in the numbers in a month, when we will publish the 2020 numbers for 2020. As Luca mentioned, we are going faster than anticipated. What is going very well is engineering. Gilles has done a tremendous work in engineering in order to rationalize what we spend, on what we spend it, and how we spend it. Also on process engineering. Also on process engineering. Thank you, Luca. The whole engineering portion is going very fast versus what was anticipating. You know that we have negotiated the voluntary departure plan with the unions just before summer. No, between summer and Christmas, and now it's open for people to start to leave. Everything is going well, and we don't see any roadblock for the moment. As Luca mentioned, we want to go faster than the end of 2022, moving it back as much as possible through the year, and if possibly, even this year. You have seen also that we are now extending the cost reduction plan, for what we expect by 2023 and by 2025. This is working pretty well. You see the impact actually on the break-even point. The mix between the cost reduction and the increase in pricing and margin per car is exactly the reason why we are able to have such a drastic reduction in break-even points already in 2021. As time is flying, I will kindly request you to limit your number of questions to two, if possible. Who is on the list? Hello? Next question, please. Yes. Next question from Dorothee Cresswell from Exane. Madam, please go ahead. Hi there. It's Dorothee Cresswell from Exane. Thank you for taking my question. My first question is around BEV profitability. Your BEV profitability assumptions are pretty impressive. I'm just wondering what's driving that. Could you share your battery cost assumptions? the pricing assumptions relative to ICE and maybe also any assumptions you've made when it comes to BEV subsidies? My second question is around the possible upside from partnerships, which you say is not reflected in your profitability targets. Could you give us a little more color around the potential benefit on that front? Maybe even some numbers? Thank you. I'm not sure I will be able to fully answer to all those questions. I'm sorry for that. I hate that. That's okay, yes, yeah I hate not answering, but, let's say what I can say on the profitability of EVs is, coming into Renault, you understand that we have long experience. We started very early. Of course, the company for a while gave up on that, we are back on focusing on EV. The fact that next year we'll be launching the platform with the Alliance platform, CMF-EV, this is a great base. I have seen other C-segment platforms in my past. I think we have really a very, very strong asset, okay? What I can tell you about is the experience we have right now with the Spring, which is the cheapest, let's say, most affordable, let's put it like this, EV car in the European market, which is a very clearly positioned car. Of course, we have 10 years of ZOE. In the ZOE case, we reduced the cost of battery by half. We know that we are making, in absolute terms, more margin than we do on, for example, on a comparable Clio. The Clio is also a profitable car for us. EVs are still dilutive, but we expect that coming with the new platforms, for example, with that car and change in chemistry, okay, we will be able to also, from a percentage point of view, maybe 24. 5%, something like this, get to a percentage in profitability that is similar. There is another urban legend about electric cars, about the impact that this thing has on after-sales business. I ask the question, and I look into the numbers. In fact, what happens on the ZOE case is that because people are more loyal to the workshops in electric cars, we are actually making more business with the ZOE on after sales than we do on a normal car. It's a revolution. It's a discontinuity. We'll have to find our way to do the business. There are some opportunities. I'm not going to comment on the cost of the battery. You know what the other people say, where is the level that will make such kind of products competitive. Of course, we are fighting. Of course, we have very strong knowledge also on the supplier side with the Véronique team, and we will try to get the best cost of battery, because we have a very long relation with some of our suppliers. I think even on that one, we have a clear advantage. If we are able to commonalize all our technology with the Alliance, it is possible that this Alliance will get above the million car per year sold on two platform on EV. That puts us really in the final of Champions League, and will have definitely an impact of the cost. The subsidies thing, we make a, let's say, incremental dilution of subsidies, maybe a 20% for years, an assumption from now to 2025. I think that, if I look at the latest discussion on the Green Deal coming, for example, in new in the European perimeter, all government will be very motivated to push on that side. My personal view on the thing is that subsidies are excellent, obviously, to boost the demand. At the beginning. the targets, et cetera. I think we probably should put more money on the higher part of the value chain. For example, in infrastructure, to make it possible that the people can charge their cars. We know how to do electric cars. We will have them in the market. We need to make sure that we facilitate the charging of this thing. That would be a priority. Yeah. On the partnership side, it's too open as a question, and I cannot. Yeah. The only thing, it's very open. It will take time. Yeah. Any type of partnership that you do today will take a few years before it comes in your P&L. Yeah. That's why we've been prudent. That being said, just take back the numbers in the past. At some point of time, partnership was 20% of our turnover, 15%-20% of our turnover. Today, it is very low, but if it comes back and comes back big, it can have a big impact, depending on what partnership we are talking about. I- It's too broad. Yeah. I think, if I may, I take advantage of this question to say that I think we have a lot of potential to work, for example, with Mitsubishi and Nissan, and vice versa. That we can find solution and open some fundamental project with them. This is the spirit in which. We work. we engage. That will have an effect, but it's not actually considered in the plan. Yeah. We stay at the level as today. We are already discussing some opportunities. You look at the presentation, we have already announced a few partnerships during the presentation, in which we have worked in the last weeks. Think about the Lotus, we are very proud of it, or the Plug Power story or the fact that you have companies like Orange or STMicroelectronics or Atos. Yes with us. We are very open to that, but give us the time. As a basic assumption, we don't put that into the numbers until we know that it's feasible and that it can actually have an impact on our numbers. I think it's fair. Yep in terms of position. Thank you. Next questions, please. Thank you. Next question from Charles Coldicott from Redburn. Charles, please go ahead. Good morning. Thanks for taking my question. My first one was actually on your volume assumptions. If I look at slide 27, for example, which has your production and capacity utilization, you can sort of deduce that you're expecting to get back to maybe 3.5 million units in 2023. Which is up about 16% versus 2020. I know there was a comment later that you're expecting the main markets that you sell into increase, I think, 25% over the next three years. Obviously, you're focusing on value over volume, but I'm just wondering if you can comment maybe on your thoughts on market share loss over the next three years as you focus on increasing the price point. My second question was just going to be on the dividend policy. Obviously, historically, there was a policy to pass on any dividends you received from Nissan. Is there any update on that? Also on thoughts on future dividends, given the strong free cash flow targets you talked about. Also, sorry, just finally, as you mentioned that your free cash flow includes dividends from RCI, what are you assuming for that from 2021 to 2023? On the volume? Yeah. On the volume, yeah. Well, you make the deduction that you want on our slide. That's your role, I guess. Remember what I said in terms of volume assumption. We said that the emerging market would come back to the 2019 pre-COVID situation by 2023, but that Europe will not come back to pre-COVID before 2025 and beyond. In view of where we spend when we sell our cars. The assumption we put in, yeah. that's our assumption we took. We didn't forecast any big loss of market share. No. No. We're just following the market, but reorienting to the more contributing product. Yeah Channel than what we were doing before. In terms of volume, as you said, very conservative. You should calculate the share of wallet rather than share of market. Yeah, than share of wallet, share market. That's it. Market share, no big loss, just reorientation, more retail, less fleet, and more where it makes money and makes sense, versus other things. Again, the assumption is that the European market is not back to where it was before 2025. If it goes faster, then it's a double whammy for us because that's where we make the most money and where we have the cars which are coming in. In terms of dividend policy, clearly, we understand and we agree that we have to give a return to our shareholders. We know our duty and we'll fulfill it. In view of the current situation, I think we will first and foremost favor returning to net cash position positive. It's what we need to do. This will come according to the plan that we have today. After that, obviously, we will go back to dividend policy. In terms of the Nissan, we could come earlier back to dividend payments versus our cash position, depending on the Nissan speed of recovery. If Nissan goes faster, obviously, there will be more availability to pay a dividend to our shareholders. Is that going to be an automatic pass-through? I don't know. I can't promise because it will really depend. We're going to have to make arbitrage between what we pass on to the shareholder and what we use in order to restore our net cash position. Your last question was on the free cash flow, which include RCI. Obviously, I'm not going to give you a number. What I can tell you is that the RCI position in terms of capital structure is pretty good, very solid, and we have more capital than what the requirements of European Central Bank is currently when we look at the numbers. You know that we have not been able to pay the last portion of the 2019 dividend. As soon as the European Central Bank is less strict on what we can deliver as a dividend, obviously, we'll have to come back to that. We have really sufficient capital structure in order to pay more dividend than what we used to pay in the past, but we will never put RCI at risk. We will always respect the capital requirement from the ECB, but we have a big potential in that field. Thank you. It's already 11:00 AM. Paris time. I guess that we'll accept to have a couple of extra questions. Please keep yourself to only one question. Next. Thank you. Next question from Stephen Reitman from SocGen. Sir, please go ahead. Thank you very much. My question is also about the plan, about the resurrection part of the plan. That is, what do you expect in terms of labor cost when you benchmark yourself? The PSA's Back in the Race plan was reducing labor cost and also reducing inventory levels. You can maybe give some detail on that, please. Well, on labor costs, we're not going to give you a number. Basically, everything we're doing in terms of reducing our fixed costs, a portion is not labor, but a big portion is labor. That's the reason why we had made the announcement we made, actually, in the month of May. By 2023, we don't have much more than what we have announced. This is a big way of working on the labor cost to go back to where we were before and even lower and closer to benchmark. Currently, it's true that in the last years it went up. In terms of inventory, you want to say a word, maybe Luca? No, I want to rebound on the story of the labor cost. I think the reality is that, and this is what I mentioned also before. In a big part of the company, the level of competitiveness we have on this KPI is very strong. I see when I look at the numbers that probably we have a lot of plants that are underutilized. We have to do two things, which we are doing with José Vicente and the industry team, to rightsize those plants and, of course, to fill the plants with the products that we have in mind. That are, most of them or basically all of them, are based on platforms that are already industrialized and localized. Okay. It will very quickly go to a level of, let's say, utilization rate, which is more than decent. Okay. This will solve the problem. It's not about only cutting jobs, which is something we don't necessarily like to do, because we are also here to protect the work of the people. This plan is done also for the people of Renault, and I want to underline this thing. We have to do a lot of things to protect this, and be efficient. With the team, we have some good ideas on how to solve issues in the past and bring the whole top of cost and industrial cost, et cetera, to the level that we need. On the stocks, I think we came out better than I actually asked you, Denis. I think we were 20% down by the end of 2020. 486,000 cars. You see that I focus on this volume. It's a very good sign, because it means that we start the year lean with a portfolio that it's almost at the level that I expect, which was around 1.8. +15%. +15, yeah. On the portfolio. It's 15% more than last year. I think the way we manage the transition 2020, 2021, from a commercial point of view is good, and we continue to work on that. We want to reduce, in the medium term, the stock by substantially. I can give the target because. Yeah We want to reduce the stock by 30%. To do that, we need to completely restructure, reengineer, let's say, the supply chain. There is a project in the house that we are doing with José Vicente and his team to really make of supply chain not, let's say, a really competitive lever rather than just a cost center. We will talk about that in the next years. I think you can expect Renault to be pretty advanced in this field. The ultimate aim of this project is actually to reduce working capital and immobilization of the capital. I think we can show you very quickly where we're going on this field. Yeah, we already talked to you about that in the first part of Luca's answer. Yeah in Q3. Yeah. The motto now in the company is more than two months of portfolio. Less than two months of stock. I think Luca was quite impressed about our rapidity. Mm, mm to get there, as we achieved that. in some of the months. Not every month, but it's really getting there. We have time for a very last question. At least it is only one question. Thank you. Last question from Horst Schneider from Bank of America. Please go ahead. Yeah, good morning. I would have, again, five questions. I constrain myself to one. Yeah. Sure. Just follow up on the statement on inventory. That was very interesting. Is the conclusion right that your free cash flow target by 2023 is also impacted by the fact that you had a very good working capital development, basically in H2 2020, which basically limits the working capital improvement going forward? Is that the right conclusion? Coming back again to the Q3 statements from the conference call, I guess that Q4 then was better than your original expectations. Is that right? Well, I'm not going to comment on Q4, you know, guys. I mean, you know the rule of the game, I'll comment on Q4 in a month, right? Sorry about that, you're right. Obviously, everything which would have been cut back in 2020 H2, we will not get it back afterwards. The fact that the working capital improvement is not that big, actually, it's not that small either, is also because we were cautious on volume. You very much know that the working capital is linked to the volume development. What is important is, in our view, the working capital recovery will cover restructuring costs. That is very important because I know it was one of your concern when we presented the 2022 plan in May. You said, "How are you going to pay for the restructuring you need to do?" The fact is, we have the plan in order to do so. Generate free cash flow even, because this free cash flow is covering restructuring, clearly. That's a big, important thing to keep in mind. This is after restructuring. We have plenty of ideas in order to improve the free cash flow and get to these numbers. Okay, thank you. As you have understood, we have a rendezvous on the 19th of February for commenting on fiscal year 2020 numbers. I think it's time to close the Q&A session. Thank you for being with us this morning. Of course, as usual, the IR team is available if you have other questions that have not been addressed this morning. Thank you, and see you soon. Bye.