INVESTOR DAY

Renault Technocentre
October 3rd, 2008
INVESTOR DAY AGENDA

01 NEW MEGANE PROGRAM

Bruno ANCELIN

02 POSITIONING NEW MEGANE IN RENAULT COMMITMENT 2009

Patrick PLATA

03 PURCHASING STRATEGY & SOURCING

Odile DESFORGES

04 C-SEGMENT SALES STRATEGY

Patrick BLAIN

05 CONCLUSION AND Q&A

Carlos GHOSN

INVESTOR DAY OCTOBER 3RD 2008 2

INVESTOR DAY
NEW MEGANE PROGRAM

Bruno ANCELIN
SVP, M1/C SEGMENT PROGRAM DIRECTOR
AGENDA

01 MEGANE II BACKGROUND

02 PRODUCT PERFORMANCE

03 DEVELOPMENT & PRODUCTION COSTS

04 SALES STRATEGY

05 INTERNATIONAL OUTLOOK

06 PROFITABILITY

INVESTOR DAY OCTOBER 3RD 2008 6

01 MEGANE II BACKGROUND

INVESTOR DAY OCTOBER 3RD 2008 7

 MEGANE II SWOT ANALYSIS
Strengths
- 6 bodies covering all customer needs
- Sedan adapted to international markets
- Good COP at end of life
- Robust volumes in lifecycle for all bodies
except the hatchback
- Innovative hatchback design at launch
Opportunities
- De-contenting & LCC sourcing
for international bodies
- LCC parts sourcing development
- Reduction of short-term rental sales
& adaptation of industrial capacities
Weaknesses
- Designed for the European market (except Sedan)
- Purchasing & Manuf. structured for Europe
- Quality issues at launch
- Hatchback much debated design
Threats
- Raw material price increase
- Decreasing markets for MPVs
- New CO2 regulations
INVESTOR DAY OCTOBER 3RD 2008 8
02 PRODUCT PERFORMANCE

INVESTOR DAY OCTOBER 3RD 2008 9

NEW MEGANE KEY POINTS

ERGONOMIC & PRACTICAL DESIGN

REASSURING HANDLING
& DRIVING PLEASURE

SAFETY

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SPECIAL CARE TAKEN ON PERCEIVED QUALITY

INVESTOR DAY OCTOBER 3RD 2008 18

 NEW MEGANE KEY SELLING POINTS
#1 ERGONOMICS

Analogue / Digital display with Keyless car 2 Navigation systems Top 3 boot space
coloured speed monitoring (walk away) with central control
TOM-TOM navigation < 500
(available from early 2009)

- Automatic parking brake with central switch

- Best-in-class seat height adjustment (70 mm)

- Electric drivers seat

- Dual zone auto climate control

INVESTOR DAY OCTOBER 3RD 2008 19

 NEW MEGANE KEY SELLING POINTS
#2 REASSURING HANDLING & DRIVING PLEASURE

Best-in-class New axles Enhanced body roll More responsive steering

road handling & cornering stability

- Body roll reduced by 9% enhanced cornering stability

- Power steering :
- 7% more lively
- 20% stiffer
- 4x faster responsiveness

INVESTOR DAY OCTOBER 3RD 2008 20

 NEW MEGANE KEY SELLING POINTS
#3 SAFETY

Reinforced side impact Dual chamber side airbags Rear seatbelt indicator Anti-whiplash headrests

Keep leadership in passive safety

Megane III is 25% safer than Megane II on side impact
Maintain excellent level on front impact
Expert in active safety
Offer best-in-class active safety features (ESC, EBS)

INVESTOR DAY OCTOBER 3RD 2008 21

 QUALITY TOP 3 TARGET
100 Warranty claims after 12 months
(Base 100 = Jan 2003)
90

80
Objective :
70 ! Reach the best ever level
by Renault in C segment
60
! Be Top3
50

40

30
- 20%
20

10

0
Jan 2003 Mar 2007

INVESTOR DAY OCTOBER 3RD 2008 22

INITIAL QUALITY

Clio 3 Same level as Clio III and Laguna III, but

obtained 1 month before schedule
reached with 2 prototype batches instead of 3

Laguna 3

Mgane 3

0
Prototypes Manuf. approval

INVESTOR DAY OCTOBER 3RD 2008 23

 DURABILITY
1.2 Number of incidents per 1,000 km
on test fleets Validation fleet :
- Before SOP 45 cars 1.6 million km
1 - After SOP 100 cars 5 million km

0.8

0.6

0.4

0.2

0
Engineering prototypes Plant prototypes Pre-series

INVESTOR DAY OCTOBER 3RD 2008 24

WARRANTY COSTS
Evolution of manufacturers
warranty cost per unit
(Base 100 = 2006)

2006 2007 2008 2009

Megane II Megane III

INVESTOR DAY OCTOBER 3RD 2008 25

ENVIRONMENT
AIMING TOP EMISSION LEVEL ON DIESEL CORE ENGINE
1.5L 110hp Confort
Megane III (2009)
115 g/km CO

115 g/km CO

119 g/km CO

119 g/km CO

119 g/km CO
1.5L 110hp Confort
Megane III (2008) 120 g/km CO
1.5L 105hp Expression
Megane II
120 g/km CO

125 g/km CO

125 g/km CO

135 g/km CO

139 g/km CO

INVESTOR DAY OCTOBER 3RD 2008 26

ENVIRONMENT
MEGANE III IS BIGGER BUT LIGHTER

63 kg saved
at isovolume

1,235 kg

1,225 kg

INVESTOR DAY OCTOBER 3RD 2008 27

 DEVELOPMENT
03 & PRODUCTION COSTS

INVESTOR DAY OCTOBER 3RD 2008 28

MEGANE DEVELOPMENT
CARRY-OVER OPTIMIZATION
Megane II (X84) platform Commonality
134 parts (25%) reused Between 6 models
to minimize specific development

SPECIFIC
CARRY-OVER
MODIFIED CARRY-OVER

Laguna III (X91) Other models

Trim parts Trim parts to reduce
with high quality level development & investment

INVESTOR DAY OCTOBER 3RD 2008 29

 MEGANE DEVELOPMENT
ENTRY TICKET REDUCED BY 30% VS. MEGANE II

(facelift +
TOTAL ENTRY TICKET = -30%
life cycle)

Facelift + lifecycle = -43%

Carry-over
2.5
(phase1)
Body
Differentiation 1.9
Engineering Quality
productivity (Coupe,
Single plant Safety MPV 7-seater)
(phase1)
+ CO2
Technical for + new engines
savings hatchback

Development & investment fees (achieved) = -25%

Megane II range in billion euros Megane III range

(6 bodies) (6 bodies)

INVESTOR DAY OCTOBER 3RD 2008 30

 MEGANE DEVELOPMENT
THE SHORTEST SCHEDULE IN RENAULTS HISTORY
Start of
Pre-contract Design freeze Off-tool Production Sales

7 12.5 17 4
Mgane 2
40.5 months

4.5 10.5 17 4
Clio 3
36 months

4 11 16 3
Megane 3
34 months

INVESTOR DAY OCTOBER 3RD 2008 31

 MEGANE RANGE LAUNCH
THE SHORTEST SCHEDULE IN RENAULTS HISTORY
+11 months +16 months +42 months
Megane 1
(1995) MPV Cabriolet Estate
Saloon

+12 months +18 months

Megane 2
(2002) MPV 7 seats

Megane 3 +3 +7 +8 +10 +17 months

(2008) Hatch 6 bodies launched

within 17 months
(5 within 10 months)

INVESTOR DAY OCTOBER 3RD 2008 32

04 SALES VOLUMES

INVESTOR DAY OCTOBER 3RD 2008 33

SALES VOLUMES
REALISTIC SALES VOLUME ON A FLATTER LIFE CYCLE
Mgane II & III 6 bodies Mgane II
Sales record & forecast (x 1,000 units)
Mgane III
VEHICLE LIFECYCLE
VEHICLE LIFECYCLE

SALES
SALES
GAP
GAP

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

INVESTOR DAY OCTOBER 3RD 2008 34

SALES VOLUMES
MEGANE III HATCH
Mgane II & III Hatch Mgane II
Sales record & forecast (x 1,000 units)
Mgane III
VEHICLE LIFECYCLE

VEHICLE LIFECYCLE
SALES
GAP SALES
GAP

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

INVESTOR DAY OCTOBER 3RD 2008 35

05 INTERNATIONAL OUTLOOK

INVESTOR DAY OCTOBER 3RD 2008 36

INTERNATIONAL OUTLOOK
2 SPECIFIC MODELS FOR INTERNATIONAL CONQUEST

L38 Sedan

! Specific design
! Replacement for current Megane II Sedan and SM3
! 90% of sales forecast outside Europe
! Cost reduction Vs. X95 (non-visible decontenting + LCC sourcing)
! Mid level base specifications, up-gradable to European standards

B32 - Hatchback

! B95 skin with L38 technical content

- Design of Megane III hatchback (B95)
- Platform of L38 Sedan

INVESTOR DAY OCTOBER 3RD 2008 37

INTERNATIONAL OUTLOOK
IN 2009, 2 PLATFORMS WITH 4 DEDICATED PLANTS

DOUAI BURSA
J95
B32
R95 X95 platform
X38 platform
E95 L38

B95 PALENCIA X95 platform BUSAN

D95 X95 platform L38 X38 platform

K95 Lower
cost

X38 platform

INVESTOR DAY OCTOBER 3RD 2008 38

INVESTOR DAY
POSITIONING NEW MEGANE
IN RENAULT COMMITMENT 2009
Patrick PLATA
EVP, MARKET AREA EUROPE
 YOUNGER MODEL RANGE FOR GROWTH IN EUROPE
Age (years)
5.0

4.5

4.0

3.5

3.0
Monthly average estimated model age
2.5

2.0

1.5
2001 2002 2003 2004 2005 2006 2007 2008 2009

INVESTOR DAY OCTOBER 3RD 2008 42

RENAULT POWERTRAIN AND CO2 COMPETITIVENESS

INVESTOR DAY OCTOBER 3RD 2008 43

TRUE TO OUR ROOTS

! De lavant-garde mais sans excs, pour des vhicules

lgers, des prix modestes et des moteurs de qualit
rpondant aux besoins des clients

! Avant-garde but without excessiveness, for light weight

vehicles, modest prices and quality motors meeting
customers needs.

Louis Renault - 1901

INVESTOR DAY OCTOBER 3RD 2008 44

 CAFE EVOLUTION
RENAULTS AVERAGE IS ON TRACK WITH REGULATION
CO2 emissions (g/km)
190
Base Europe G5 (Fr, U.K, Ita, Sp, Ger)

180
ACEA targeted average

170
Milestone #1
160 Renault

150 146.6 g

140 Milestone #2
141.3 g
130 CO2 regulation

H1 2008 Year
120
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

INVESTOR DAY OCTOBER 3RD 2008 45

 IN-LINE WITH RC2009 120 & 140g CO2 COMMITMENT
WITH A HIGHLY COMPETITIVE OFFER
Renault Market Share
UE 27 Sales 101-120 in Europe G5
Emission level (g/km CO2)
(thousand vehicles) 121-140 in H1 2008 (%)
1,200
1,005,000 25%

1,000

20%

800
151 16%
42 versions 15%
600 versions 15%

1/3 emitting less 393,000 10%

400 than 120 g/km CO2 333,333 9%
5%
200
16 47
versions versions
0 0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

INVESTOR DAY OCTOBER 3RD 2008 46

RENAULT POWERTRAIN STRATEGY

! Offer best cost-to-value ratio to customers

- Total Cost of Ownership
- CO2 reduction
- Durability
- Fun to drive

! Improvement of conventional technology

- dCi Diesel line-up continuous evolution
- TCe gasoline line-up deployment
- Transmission line-up improvement

! Breakthrough to zero-emission" vehicles with electric powertrains

INVESTOR DAY OCTOBER 3RD 2008 47

EV: A STRATEGIC MOVE

INVESTOR DAY OCTOBER 3RD 2008 48

WHAT DRIVES THE EV?
Well to Wheels analysis for gCO2 per km (Source: JRC/Eucar/Concawe & Renault)

Megane 1.6 115ch 192

Gasoline
Megane 1.6 115ch
GNV European mix
163
Megane 1.5 dCi 85ch
139
Diesel
Toyota Prius
Hybrid Gasoline
122

Coal (w/o CCS*) 121

Coal (IGCC*) 108

European mix 58

Natural gas 57

Wood 9
Well to tank
Nuclear 2 Tank to wheels

Windmill 0 CO2 emissions (g/km)

0 20 40 60 80 100 120 140 160 180 200

* CCS = capture & sequestration of CO2
* IGCC = Integrated gasification on a combined cycle
INVESTOR DAY OCTOBER 3RD 2008 49
 ULTIMATELY
CHANGE FROM OIL CYCLE TO SOLAR CYCLE

Wind

SOLAR SOLAR
ENERGY ENERGY
OIL
REFINEMENT 15 m
Zero emission

100,000
YEARS GAS
OIL
STATION
15,000 km a year
CO2

from refueling stations to vehicle-to-the-grid concept

INVESTOR DAY OCTOBER 3RD 2008 50

THE RENAULT ELECTRIC VEHICLE LINE-UP
From 2009 onwards, progressive demonstrations
Test fleet before end of 2009

2009 2010 2011 2012

e-Sedan

e-Kangoo

Specific EV

Mass production

INVESTOR DAY OCTOBER 3RD 2008 51

KEY TAKE-AWAYS FROM THE ISRAEL OPERATIONS

1. The Israel operation

- Guarantees mass production, lowering the barrier-to-entry of volumes,
- Makes the thinking of electric grid infrastructure (more) reasonable
- Sets the example for governmental incentives allowing EV usage

2. The Israel operation has massive coverage in the media,

and positive impact for Better Place and Renault

3. Israel is just the first step: other countries, regions or cities are
coming ...

INVESTOR DAY OCTOBER 3RD 2008 52

THE RENAULT-NISSAN ALLIANCE ACTS
TO MASS PRODUCE ELECTRIC VEHICLES BY 2011

! Competitive schedule

! Key breakthrough on batteries

- High knowledge in the Alliance further to longstanding R&D activities in Nissan

! Vision on business model and best partners

- Project Better Place : adequate partner for the complementary investments

! Early initiatives in progress

- In Israel : high potential of an innovative business model associating main leverages
- In USA : Nissan involvement for meeting Californian rules with EV starting 2010
- In Denmark, but also in UK and several EU countries

INVESTOR DAY OCTOBER 3RD 2008 53

INVESTOR DAY
PURCHASING PERFORMANCE
Odile DESFORGES
SVP, PURCHASING
CHAIRMAN & MANAGING DIRECTOR, RNPO
MEGANE III (X95)
SPECIFIC VENDOR TOOLING

545 M
745 Target: -30% Achieved: -30%
380 M

Mgane II Mgane III range

range (6 bodies)

INVESTOR DAY OCTOBER 3RD 2008 56

 VENDOR TOOLING LCC SOURCING
% toolings Results
100% sourced in LCC New Korean
Target line-up

90%

From Megane To
Europe-based range LCC-based range

45% 50%
Twingo
Kangoo
Laguna Other
Western
Europe
29%
22%
19%
Portugal
6%
0%
2007 2008 2009

INVESTOR DAY OCTOBER 3RD 2008 57

FURTHER COST REDUCTION
AN ADDITIONAL - 15% TO REACH - 50% TARGET

FY 04
(reference)

ALREADY ACHIEVED
! Process optimization
- 35% ! LCC

! Carry-over
! Standardization
- 15% ! Diversity reduction
2009 Target ! Process spec. down
- 50%

INVESTOR DAY OCTOBER 3RD 2008 58

LCC FOR HCC
PARTS PURCHASES IN LCC FOR W. EUROPE PLANTS

% LCC purchases for HCC plants

50%
Target
40%
40%
37%
32%
30%
25%
22%
20% 17%
14% B95

10%

0%
2004 2005 2006 2007 2008 (2008) 2009

INVESTOR DAY OCTOBER 3RD 2008 59

 NAMASTE PLAN: INDIAN SOURCING
FOR BETTER PERFORMANCE WORLDWIDE

! Sourcing decisions in 2008:

! Turnover: 240 M
! Average actual savings: 17 % including logistics costs

! Potential purchasing turnover in India: 850 M

INVESTOR DAY OCTOBER 3RD 2008 60

ALLIANCE APPROACH TO ACHIEVE COST LEADERSHIP

COST LEADERSHIP
Growth
Growth in
in
volume
volume per
per part
part

Deep
Deep Logistics
Logistics Material
Material Spec
Spec
localization
localization improvement
improvement optimization
optimization challenge
challenge
Complexity,
Complexity,
Business
Business diversity
diversity
growth
growth reduction
reduction

Alliance Productivity improvement

Component 333 - Synergie 500

Supplier Respect, Trust, Transparency

INVESTOR DAY OCTOBER 3RD 2008 61

SET A SINGLE ALLIANCE COMMODITY STRATEGY

19 joint teams by end 2008 35% RNPO parts turnover

1 Technical Strategy

Standardization policy
& the related technical strategy ACM
Total delivered cost Alliance
Alliance
3 Road maps Commodity
Commodity
2 Sourcing Strategy
Meeting
Meeting

and world-wide Alliance

supplier base management

INVESTOR DAY OCTOBER 3RD 2008 62

INVESTOR DAY
C-SEGMENT SALES STRATEGY

Patrick BLAIN
EVP, SALES & MARKETING
AGENDA

MEGANE III SALES STRATEGY

! C-Segment history
! Marketing positioning
! Feedback on customer tests
! Sales volumes
! Customer channels
! Price strategy, including residual value
! International outlook

INVESTOR DAY OCTOBER 3RD 2008 64

01 MEGANE III
SALES STRATEGY

INVESTOR DAY OCTOBER 3RD 2008 65

 PC TIV
C-SEGMENT ACCOUNTS FOR C-segment
C-segment weight
1/3 OF THE WESTERN EUROPE TIV
PC registrations (x 1,000 units) Market weight (%)
16,000 35%

14,000 30%

12,000
25%

10,000
20%
8,000
15%
6,000

10%
4,000

5%
2,000

0 0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

INVESTOR DAY OCTOBER 3RD 2008 66

 HATCHBACK SALES ARE STABLE
IN W. EUROPE C-SEGMENT OVER THE LAST 5 YEARS
Coup-Cabriolet
100%

90%
Mgane Estate

80%

70%
MPV
60%

50%

40%

30%
Hatch
20%

10%

0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 YTD
Aug 08

INVESTOR DAY OCTOBER 3RD 2008 67

 C-SEGMENT IS RENAULTS CORE BUSINESS
Western Europe Renault 16%
800 000 PC + LCV Sales (x 1,000 units) Market share (%)
R19
700 000 Mgane 1 14%
Mgane 2

600 000 12%

500 000 10%

400 000 8%

300 000 6%

200 000 4%

100 000 2%

0 0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 YTD
2008

INVESTOR DAY OCTOBER 3RD 2008 68

 MARKET POSITIONING

STYLING DRIVING PLEASURE PRICE VS. EQUIPMENT

! Sporty ! Dynamic ! Very persuasive
! Reassuring ! Powerful equipment & perf.
! Sleek / Elegant ! Roadholding vs. price ratio
! Consensually appreciated modernity

Positioning

A STYLISH, DYNAMIC
AND REASSURING CAR

USPs BSPs
! Reassuring
! Dynamic
! Environment-friendly
! Easy
Claim justifications ! Affordable

INVESTOR DAY OCTOBER 3RD 2008 69

REALISTIC SALES VOLUME ON A FLATTER LIFE CYCLE
Mgane II & III Hatch Sales record & forecast Mgane II
(x 1,000 units)
Mgane III
VEHICLE LIFECYCLE

VEHICLE LIFECYCLE
SALES
GAP
SALES
GAP

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

INVESTOR DAY OCTOBER 3RD 2008 70

BASED ON AN OPTIMIZED CHANNEL MIX
Mgane Sales by type of client
(Fr, U.K, Ita, Sp, Ger) Retail

Fleet

Self
registrations
Short term
rental

2003 2004 2005 2006 2007 2008 2009

INVESTOR DAY OCTOBER 3RD 2008 71

LEADING TO THE IMPROVEMENT OF THE VARIABLE
NET REVENUE (5 MAJOR EUROPEAN COUNTRIES)
Net revenue per unit ()
(Fr, U.K, Ita, Sp, Ger)
Price + version mix
+ 13.4%
S&M exp. + channel mix

Mgane II 5-door Hatch Mgane II 5-door Hatch Mgane III

2006 2007 5-door Hatch
2009

INVESTOR DAY OCTOBER 3RD 2008 72

INTERNATIONAL OUTLOOK

L38 - Sedan
More than double the volume
of Sedan (Mgane II + SM3) worldwide

B32 Hatchback
Increase significantly our C-segment hatchback
presence outside of Europe

INVESTOR DAY OCTOBER 3RD 2008 73

CONCLUSION

! A line-up fully covering market and customer needs in Europe

! Ambitious but realistic objectives

! Super selective policy

! Specific bodies to improve our performance & conquer

new markets outside Europe

INVESTOR DAY OCTOBER 3RD 2008 74

INVESTOR DAY
CONCLUSION

Carlos GHOSN
PRESIDENT & CEO