1. GROUPE R ENAULT V EILLE STRATÉGIQUE GROUPE R ENAULT FDI – G ROUPE POUND

2. 1. Current close-up of automotive industry 2. Renault’s current situation 3. SWOT Analysis 4. « 3B » Analysis Conquest of the Indian Market Conquest of the Indian Market

3. 1. CURRENT CLOSE-UP OF AUTOMOTIVE INDUSTRY A market shaken by the economic crisis...  Restructuring of « mature » markets (Europe and North America) 500-600 cars/1000 habitants New target: Less oil consumption and less CO2 emissions American companies survives thanks to direct aids, Europe thanks strategic aids  Development of « new » markets  China : 100 cars/1000 habitants Massive financial aids from government (30% of crisis aids for automotive industry) Big stock of Lithium – Electric cars Exponential economic growth (+8% GDP/capita) and steady growth of automotive infrastructures

4.  Development of « new » markets  India 8 cars/1000 habitants and big growth on purchaising power 10 years late compare to China Less focus on export (13-17% of production) Little cars Forecasts: +12-14%/year production increase to 2016  Russia 2007: Expert global agreement say Russia will overtake Germany 2009: -55% car sales AvtoVAZ, incontested market leader, touched the stoppage of payment last month (CA – 46%, 50 000 job loss forecasted) 1. CURRENT CLOSE-UP OF AUTOMOTIVE INDUSTRY

5. 2. RENAULT’ S CURRENT SITUATION - BRANDS DACIA DACIA 1999: Renault buy Dacia, first rumain manufacturer and modernize their factories. Key values Key values: Simplicity, Modernity and Robustness bound to inedit report quality/price. Renault Samsung Motors Renault Samsung Motors 2000: Renault take back Samsung Group brand and become first european manufacturer based on south-corean market. Renault Samsung Motors become a success example Renault Samsung Motors become a success example in a country close to foreign investments

6. 2. RENAULT’ S CURRENT SITUATION - BRANDS Renault – Nissan Merger March 1999: Renault – Nissan become the first partnership between European and Japanese companies. This cooperation don’t stop strengthening in all the domains, of the production and the marketing. (Renault Nissan Purchasing Organization) Creation of RNPO (Renault Nissan Purchasing Organization) which cover 100% of purchases. AvtoVAZ Partnership February 2008: AvtoVAZ and Renault get into a new strategic alliance. AvtoVAZ is the first Russian manufacturer with 23% of share market

7. 2. RENAULT’ S CURRENT SITUATION TYPES DE VEHICULESVENTES 2009 / % VAR YTD Véhicules particuliers2 032 565 / +0.7% Véhicules utilitaires276 623 / -24.1% TOTAL2 309 188 / -3.1%

8. 3. A NALYSE S.W.O.T STRENGTHS Successful alliances with: NISSAN 11 year success Company growth  profitability (from 4 to 6%) Opens US and Asian markets DACIA Attracts “lower end” new customers Huge success of models Logan and Sandero SAMSUNG MOTORS Opens the North Korean market Electric propulsion technology transfer Development of new platforms (QM5/Koleos)

9. 3. A NALYSE S.W.O.T STRENGTHS Carlos Ghosn: a symbolic figure Leaders on new technologies Low consumption thermal engines Electric vehicles

10. 3. A NALYSE S.W.O.T STRENGTHS Efficient cost reduction strategy -25% between 2007 and 2009 Strategic choices for new production sites Tanger : 200 000 vehicles/year from 2012 onwards Valladolid : Production of the Twizy E Turkey : Production of the Clio4

11. 3. A NALYSE S.W.O.T WEAKNESSES AvtoVAZ Alliance: A costly failure A huge lack of cash Has about 1 billion € of stocks left Still has about 6 billion €s of loan to reimburse to the government 2009 Formula 1 season hampers its image « CrashGate » crisis Very poor results Last minute buy by the Genii group Nearly no presence on the booming Chinese market

12. 3. A NALYSE S.W.O.T OPPORTUNITIES End of crisis... ? New growing markets (China, Russia, Brasil, India,...) Alternative vehicles = New & Open market Who will be the first to conquer it?

13. 3. A NALYSE S.W.O.T THREATS Many competitors – Chinese manufacturers on the rise Possible drop of sales in 2010 due to the end of the “cash for clunkers” scheme  Has to maintain high bonuses to sell excessif stock Customers and gouvernments are more and more demanding Euro IV and V regulations (ecology and consumption) Want always more technological Alliances and changes are going very fast  Necessity to be very reactive

14. 4. A NALYSE « 3B » I NVEST THE I NDIAN MARKET BUT BUT: Invest the fast growing and high potential Indian market 8 vehicles/1000 inhabitants Very fast growing living standards 12 to 14% expected increase in production until 2016 BESOINS BESOINS: Make an alliance with a local manufacturer Assess customer needs Technology transfer Local production sites A market exclusively aimed at small Ultra Low Cost cars BASES BASES: Highly competitive market (Nano by TATA) Investments might not payback (Alliance fails, product does not appeal,...) Market starting to expand and in constant evolution  necessity to keep a close eye on changes

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