RENAULT NON DEAL ROAD SHOW TOKYO SEPTEMBER 2008 · 2008. 9. 8. · Veronique DOSDAT Director Investor Relations Patrick CLAUDE Corporate Treasurer. INVESTOR RELATIONS SEPTEMBER 2008

RENAULT NON DEAL ROAD SHOWTOKYO SEPTEMBER 2008

Veronique DOSDATDirector Investor Relations

Patrick CLAUDECorporate Treasurer

2INVESTOR RELATIONS SEPTEMBER 2008

FIRST-HALF COMMERCIAL RESULTS01FIRST-HALF FINANCIAL RESULTS02

AGENDA

A NEW MACRO ECONOMIC ENVIRONMENT03ACTION PLAN04


International

+ 14.9%

Asia AfricaAsia Africa

87H1 07 H1 08

110

+ 25.5%+ 25.5%AmericasAmericas

+ 17.5%+ 17.5%

H1 07

137

H1 08

116 197

H1 07

EuromedEuromed

H1 08

214

+ 8.7%+ 8.7%

RENAULT GROUP WORLDWIDE SALES 1st SEMESTER 2008

Thousand units (PC+LCV)Based on J+9 Data

- 0.5%

France+ Europe

H1 07

347

H1 08

FranceFrance+ 5.7%+ 5.7%

367

EuropeEurope

H1 08H1 07

523 499

-- 4.6%4.6%WorldWorld

H1 08H1 07

1,270 1,326

+ 4.3%+ 4.3%


4%

Turkey37%

Argentina35%

Brazil16%

IsraelOthers

8%

Turkey

Algeria

Iran

Morocco

Colombia

India Ukraine

Mexico

Others

3. Russia

2. Romania

1. Brazil

4. S. Korea

5. Argentina

Venezuela

A growing global footprint

1999: 209K units11% of global volume

1999: 1999: 209K units209K units11% of global volume11% of global volume

Jan- June 2008 : 460K units35% of global volumes

By 2009 : 40% of total sales international (i.e. outside France and Europe)

Jan- June 2008 : 460K units35% of global volumes

By 2009 : 40% of total sales international (i.e. outside France and Europe)


20072006

Logan MCV

Logan Van

Twingo

Laguna

QM5 (Corée)

Sandero (Amér.)

Sedan, successorto Clio Symbol

H1 2008

Clio Grand Tour

Logan Pick-up

Laguna Coupé

Kangoo PC+LCV

Grand Modus

Kangoo Compact

Mégane

H2 2008

Expansionmodels

Replacementmodels

THE PRODUCT OFFENSIVE 2006-2008


YOUNGER MODEL RANGE IN EUROPE

Monthly average estimated model age

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2001

Age (years)

2002 2003 2004 2005 2006 2007 2008 2009


FIRST-HALF COMMERCIAL RESULTS01FIRST-HALF FINANCIAL RESULTS02

AGENDA

A NEW MACRO ECONOMIC ENVIRONMENT03ACTION PLAN04


H1 2008 VariationH1 2007(million euros)

FIRST-HALF 2008 FINANCIAL RESULTS

Worldwide sales (units) 1,270,000 1,325,500 + 4.3%

Group Revenues 20,465 20,942 + 2.3%

Change in Auto Revenues: + 2.2%- Volume + 5.0%- Mix / Price - 0.4%- Exchange rates - 2.6%

Automobile 19,451 19,887 + 2.2%

Finance 1,014 1,055 + 4.0%


CHANGE H1 2008 / H1 2007: + €143 million

OPERATING PROFIT VARIANCE ANALYSIS

+197Volume

-294Mix / PriceEnrichment

+10G&A

+124Warranty

-76Raw Materials

865

-115Currency

+51Sales

Financing& Others

-5R&D

(million euros)H1 2007 H1 2008

-84Industrial

performance

+259Purchasing

722

+335Gross Purchasing

3.5%4.1%


H1 2008 VariationH1 2007(million euros)

FIRST-HALF 2008 FINANCIAL RESULTS

Worldwide sales (units) 1,270,000 1,325,500 + 4.3%

Revenues 20,465 20,942 + 2.3%

Operating margin 722 865 + 19.8%

in % of revenues 3.5% 4.1% + 0.6pt

Other operating income (expenses) - 33 - 20 + 39%

Financial income (expenses) (112) 315 --

Associated net income 837 729 -12.9%

Result before tax 1,414 1,889 +33.6%

Net result 1,317 1,581 +20,0%


Investmentin AvtoVAZ

- 662

Cash Flow

Changein WCR

Net tangible & intangible Investments

Dividends paid

+ 2,569

- 1,730

- 823

+ 357Fair

value

Net debt increase

- 1,384

Auto net debt at end of…- Dec 31st 2007 : €2,088m- June 30th 2008 : €3,472m

- 20Others

(million euros)

+ 498Dividends received from associated companies

- 1,075

- 152 Leasedvehicles

- 959 Net

Investments

AUTOMOBILE NET FINANCIAL DEBT EVOLUTION

- 619Capitalized

R&D Expenses


Funding & Liquidity profile

! Total capital Markets funding : 5.86 billion euros

In million euros at June 30, 2008 Bonds & assimilated

! Liquidity reserves: - Available back-up lines : 4.2 billion euros - Cash & cash equivalents: 3.63 billion euros

In million euros

Automobile Division

Private placement &

EMTN1030

Eurobonds2975

Samurai1142

Redeemable shares

127

Commercial paper

593

290

1 324

932

621

1 008

341

10

578

42

200

400

600

800

1 000

1 200

1 400

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018


0102

AGENDA

0304

FIRST-HALF COMMERCIAL RESULTS

FIRST-HALF FINANCIAL RESULTS

FIRST HALF CONCLUSIONS

ACTION PLAN


THE SIX LEVERS TO RESPOND TO CHALLENGES

1. Quality results already being delivered

2. Position in emerging markets

3. Success in entry level range

4. Arrival of the new Megane

5. Strength of “B” segment products

6. Discipline in cost reduction


+5 Weeks +10 Weeks

QUALITYWARRANTY CLAIMS - UP TO 26 WEEKS AFTER LAUNCH

SALESLAUNCH

+15 Weeks +20 Weeks +25 Weeks

(Reference vehicle)

Clio III

Laguna

Laguna Estate

Twingo II

Koleos

Modus

Kangoo


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 June2008

2009

EMERGING MARKET PERFORMANCE

Brazil

Russia

Maghreb

Renault group sales (units)


ENTRY LEVEL WORLDWIDE SALES

160

257

Logan MCV

Logan Van / Pick-up

Logan Sedan

Sandero

0H1 2007 H1 2008

9%2%

23%

67%

3%

21%

86%

FY 2007: 366,000FY 2008 forecast: 550,000

Thousand units (Cars+LCVs)

and % of mix

100

200

300


NEW MEGANE CONCEPT


STRONG B-SEGMENT PERFORMANCE

Clio &Clio Estate

Kangoo PV & LCV

Modus &Grand Modus

Twingo

Between 121 and 140 g/km C

Low CO2 emissions

Below 100 g/km

101 to 120 g/km

A

B

121 to 140 g/km C


! Purchasing performance

! Manufacturing

! Logistics

! G&A

! Distribution costs

! Investment costs

2009 Objectives

COST REDUCTION

- 12% - 14%*

- 5.4% - 12%

- 9.2% - 9%

- 6% < 4% revenues(ie 4.4% rev.)

+ 5.8% - 8% per unit in Europe

- 35% - 50%

H1 2008 vs FY 2005

* 2008 Objective


SIX RISKS

1. Weakness in certain European markets

2. Slow ramp-up in Iran

3. Insufficient contribution to date from New Laguna

4. Slowdown in Korea

5. High R&D and Capex expenses as % of revenue

6. Low capacity utilization in Western Europe


GLOBAL!60%

CAPACITY UTILIZATION BY REGION(% change from 2005 to H1 2008)

20%

40%

60%

80%

100%

2005 2006 2007 H1 2008

63%

RENAULT SAMSUNG!

43%

20%

40%

60%

80%

100%

2005 2006 2007

70%

WEST.EUROPEFRANCE + SPAIN"

64%

20%

40%

60%

80%

100%

2005 2006 2007

54%

H1 2008

H1 2008

EUROMED

75%

20%

40%

60%

80%

100%

2005 2006 2007

!96%

H1 2008

AMERICAS!

29%

20%

40%

60%

80%

100%

2005 2006 2007 H1 2008

53%


FIRST-HALF COMMERCIAL RESULTS01FIRST-HALF 2008 FINANCIAL REVIEW02

AGENDA

FIRST HALF CONCLUSIONS03ACTION PLAN04


Growth

Profitability% of revenues

2008+5% 3 million vehicles

4.5%* 6.0%*

2009SUMMARY

* As commented at half-year presentation


ADJUSTMENT OF ORGANIZATION FOR NEW ENVIRONMENT

! 10% reduction of corporate overhead

! Reduction of one shift at Sandouville plant

! Potential adjustment of European “B”-segment production


REDUCE R&D AS PERCENTAGE OF REVENUER&D + Capex as 10% of revenue by end of 2009

in % of group revenuesCash impact (excl. IAS 38)

R&D Expenses

Net investments

6.8%

11.7%

5.7%

10.3% 10.0%

5.2% 4.4%

9.9%

11.5% 11.4%

5.3%5.5%

0%

2%

4%

6%

8%

10%

12%

2002 2003 2004 2005 2006 2007

4.9%

4.6% 4.9%5.5%

6.1%6.0%

2009

<10.0%Target

(2008)


New common plants : Chennai (India)Tangiers (Morocco)

Zero emission vehicles

Ultra Low Cost Programwith Bajaj

IsraelDenmarkPortugal

USAJapan

BOOST THE MOMENTUM OF OUR ALLIANCE WITH NISSAN :Strategic initiatives adapted to a new environment

Strategic partnership with AvtoVAZ

APPENDIX


VOLUME GROWTH BY SEGMENTENTRY, B & D SEGMENT GROWTH

Sales variationH1 08 vs. H1 07 LCVENTRYLCV/PVDCB RSM

TWINGO

TWINGO 2

CLIO 2

CLIO 3

CLIOESTATE

THALIA

MODUS

-100,000

-75,000

-50,000

-25,000

0

25,000

50,000

75,000

100,000

MEGANE

MEGANE 2

SCENIC

KOLEOS

LAGUNA

LAGUNA 3

ESPACEVEL SATIS

KANGOO 1

KANGOO 2

TRAFIC

LOGAN

SANDERO

KANGOO 1

KANGOO 2MASTER

TRAFIC

LOGAN MCV

DACIA LCV

SM3SM5

SM7

QM5

Others


AUTOMOBILE DIVISION REVENUESContribution to the change (as a %) in revenues +2.2%

Euromed + Americas + Asia Africa

* of which France : +1.9% - Europe : -2.4%

+0.3

France + Europe Others

+ 0.3

-0.5* +2.4

ExchangerateVolume Mix /

price

+2.2%

19,451(bln eur)

19,887(bln eur)

ExchangerateVolume Mix /

price

+ 1.4

-0.5

+ 3.1 -2.1

+1.8

-1.8


RCI PERFORMANCEStability of the gross financial margin and results before tax

2.32%2.28%RESULTS BEFORE TAX

-1.63%-1.79%OPERATING EXPENSES

-0.77%-0.57%COST OF RISK (customers & dealers)

4.72%4.72%NET BANKING INCOME

-1.16%-1.15%Intermediation fees

1.51%1.43%Services & others products

4.37%4.44%Gross financial margin

H1 2008IFRS

H1 2007IFRSin % of average outstandings


RCI BANQUE : Cost of customer and dealer risk

(0.77%)

(0.47%)

6.20

(0.89%)

16.95

June2008IFRS

(0,64%)

(0,51%)

5,47

(0,69%)

17,39

2007IFRS

2006IFRS

2005IFRS

2004IFRS2003

(0,59%)(0,72%)(0,54%)(0,68%)Customer and dealer cost of risk

17,7317,6016,4914,80Customer average outstanding (euros billion)

(0,39%)

5,10

(0,78%)

(0,40%)(0,18%)(0,47%)Dealer cost of risk

(0,65%)(0,86%)(0,57%)Customer cost of risk

5,415,305,23Dealer average outstanding (euros billion)


RCI BANQUE : FINANCIAL POLICY AND DEBT AT JUNE 30 2008

! Sensitivity to interest rate risk was €2m for 100 basis points.

! Exposure to currency risk amounted to €2.1m.

! Available liquidities totaled €7,428m, (including €5,337m in committed lines of credit, €1,813m in Central Bank eligible collateral, €278 m in cash and equivalents).

Composition of debt at June 30 2008Financial policy at June 30 2008

BMTN757 M€ CP

4 329 M€

Renault 633 M€

Bondholders & EMTN6 833 M€

Money market 4 772 M€

Central bank 402 M€

Schuldschein 774 M€

ABS3 512 M€


Evolution of the purchasing scope managed by RNPO as % of the total purchases of Renault and Nissan

2001

2006

30%

75%

€€62.7 billion purchased 62.7 billion purchased by RNPO in 2008by RNPO in 2008

2007 83%

RNPO

PURCHASING COST DISCIPLINE

92%2008


RUSSIA: AvtoVaz (Lada) & Renault

Synergies:• Technology and R&D• Engineering• Purchasing and supplier

development• Product development

#1 Automaker in Russia• Lada holds 30% of the market

" 710K units in 2007• Togliatti plant:

" approx. 1 million units capacity

Light Light VehicleVehicle Sales in Sales in RussiaRussia

Source: JD Powers

e e e e e

FULL SPEED IN INTERNATIONAL EXPANSION


Laguna Coupé ConceptNew Laguna Estate


Laguna Coupé ConceptLaguna coupe


New Kangoo PC


Grand Modus

New Kangoo LCV


Logan Pick-up

Clio Grand Tour


Laguna Coupé ConceptKoleos


Laguna Coupé ConceptSandero


Long Term Short Term

# Moody’s Baa1 (negative outlook) P-2June 2008

# Standard & Poor’s BBB + (negative outlook) A-2July 2008

# Fitch BBB + (stable outlook)August 2008

# Japan R&I AJune 2005

# JCR AAugust 2004

Automobile Division ratings

Documents

RENAULT NON DEAL ROAD SHOW TOKYO SEPTEMBER 2008 · 2008. 9. 8. · Veronique DOSDAT Director Investor Relations Patrick CLAUDE Corporate Treasurer. INVESTOR RELATIONS SEPTEMBER 2008