Renault Group decides to cancel Ampere’s IPO and confirms its EV and software strategy

Press Release January 29, 2024

20240129_Press Release_Renault Group_Ampere IPO Cancellation_Strategy confirmation

Renault Group decides to cancel Ampere’s IPO and confirms its EV and software strategy

Boulogne-Billancourt, January 29, 2024

Renault Group has created Ampere, the only European EV and software pure player, with one goal: democratize EV in Europe faster than EV pure players.

Since the inception, Renault Group’s strategic approach has been to build Ampere as a separate business with a dedicated team on EV and software to ensure higher competitiveness, agility and innovation. Since November 1^st, 2023, Ampere is operated as an autonomous business, and the Group measures the operational and industrial benefits of this organization on a daily basis.

In 2022, Renault Group had announced its intention to proceed with an IPO (initial public offering) for this entity. The latest calendar referred to the 1^st half of 2024, depending on market conditions. Renault Group considers that the current equity market conditions are not met to optimally pursue the IPO process in the best interests of Renault Group, its shareholders and Ampere.

As previously announced, Renault Group strategic plan, Renaulution, is self-funded and the results which will be released for 2023 confirms the Group’s ability to generate sustainable cash flow to finance its future (including Ampere development). Over the last semesters, Renault Group has significantly improved its performance to reach levels above initial expectations. It offers the Group greater flexibility and all the freedom of action it needs.

Therefore, considering both current equity market conditions and stronger cash generation, Renault Group has decided to cancel the Ampere IPO process.

The whole Ampere team is fully committed to execute its strategy and build its track-record. The main focuses are on:

• a clear roadmap already engaged to drastically reduce EV cost by 40% in one generation (allowing to gradually improve the price positioning of vehicles);
• a sound tech plan to differentiate with software and AI solutions (OpenR Link, Reno Avatar, Software-Defined-Vehicle…);
• major upcoming launches with Scenic, Renault 5, Renault 4, Twingo and 2 additional cars;
• the ramp-up of the most compact and efficient industrial EV ecosystem in Europe already invested.

Renault Group will continue to fund the development of Ampere until Ampere reaches breakeven in 2025. All the targets announced during Ampere Capital Markets Day are confirmed. Furthermore, this decision has no impact on the financial guidance of Renault Group and its capital allocation strategy.