investor day in china (presentation by j. daniel) - november 12, 2014

DIRECTION DES OPERATIONS CHINE DATE 2014 NOV12CONFIDENTIALRENAULT PROPERTY

RENAULT STRATEGY FOR CHINA

DIRECTION DES OPERATIONS CHINE 2014 NOV 12CONFIDENTIALRENAULT PROPERTY 2

Information contained within this document may contain forward looking statements. Although

the Company considers that such information and statements are based on reasonable

assumptions taken on the date of this report, due to their nature, they can be risky and uncertain

(as described in the Renault documentation registered within the French financial markets

regulation authorities) and can lead to a difference between the exact figures and those given or

deduced from said information and statements.

Renault does not undertake to provide updates or revisions, should any new statements and

information be available, should any new specific events occur or for any other reason. Renault

makes no representation, declaration or warranty as regards the accuracy, sufficiency,

adequacy, effectiveness and genuineness of any statements and information contained in this

report.

Further information on Renault can be found on Renault’s web site (www.renault.com),

in the section Finance / Regulated Information.

� DISCLAIMER

DIRECTION DES OPERATIONS CHINE 2014 NOV 12CONFIDENTIALRENAULT PROPERTY

3

01. Introduction: Renault background in China

02. Chinese market overview

03. Project overview 04. Synergies05. New plant greenfield

SUMMARY

06. S&M strategy07. EV potential introduction


INTRODUCTION :

RENAULT BACKGROUND IN CHINA

01


5

1993o Start of SRAC operations to produce Trafic in the Hubei province (CKD project).

o SRAC : Sanjiang-Renault Automotive Co ltd. ( Sanjiang 55% - Renault 45% )

1999 o Renault starts CBU importations and development of a sales network

2003 o End of SRAC operations : overall less than 6000 Trafic were produced.

1999 ~

2004

o Several unsuccessful attempts to restructure SRAC with different partners. � First contacts with Dongfeng Group.

2006 o Renault CBU market share : 2,6%

2007~

2008

o 2008 sales fall under 900 vehicle, key dealers quit the business

� Establishment of RBAC, 100% Renault sales subsidiary

2009~

2011o New Start and Revival Plan

2012 o MOU Renault & Dongfeng

RENAULT IN CHINA


CHINA AUTOMOTIVE MARKET:

OUTLOOK & PERSPECTIVES

02


PV market overview and growth trend

PV TIV and growth trend

7


0 200 400 600 800 1,000

India

China

Brazil

Russia

England

Japan

France

Germany

USA 800

600

250

150

UIO per 1,000 by country

• Beijing, Shanghai, Guangzhou, Average UIO >300 in 2013

60��120 in 2025

Brand origin : mix and trend

PV market : main features

8


PV MARKET CONSUMPTION STRUCTURE

9


PROJECT OVERVIEW :

GETTING STARTED…

03


Our locationBeijing ~ 1 000 km

Shanghai ~ 700 km

Guangzhou ~ 800 km

WEDZ :Wuhan Economic & Technical Development Zone

WEDZ

11


DONGFENG RENAULT PROJECT : FROM SRAC to DRAC

SANJIANG RENAULT

SRAC

55% 45%

DFG RENAULT

DRAC 1

55% 45%

Shares transfer

DFG RENAULT

DRAC 2

50% 50%

5%

2. TRANSITION1. TRANSFER 3. NEW JV

April 2013 :

Transition entity is created

Nov 2012 :

Agreement signed between Sanjiang and Dongfeng

Since

1993

Capital increase: 4 Bn CNY Equity share rebalancing

*NDRC: National Development and Reform Commission

Dec 2013: NDRC Approval

Signing ceremony Dec 2013 in Wuhan

12


2 Billion CNY2 Billion CNY

3.2 Billion CNY

50%

50%

PRODUCTSPRODUCTS

KD PARTSKD PARTS

ROYALTIESROYALTIES

MARKET ACCES

MARKET ACCES

LOCAL TALENTSLOCAL

TALENTS

KKKK

DONGFENG-RENAULT

东风雷诺东风雷诺东风雷诺东风雷诺

Debt

Financing

FRAMEWORK

13


SYNERGIES :

04


« THE BIG PICTURE »

� Local talent pool

� CHINA expertise

� Training ….

� Plant C/P

� Common suppliers

� Common Parts …

� SPEED ��

� COST ��

� PERFORMANCE

15


Zhengzhou Plant

Dalian Plant

DFL

DFG-NISSAN

DRAC

DFG-RENAULT

DF-Renault

Veh + PwT Plant

R&D Center

Significant savings in terms of plant construction :

• D&D cost ….

and

• D&D lead time …

Huadu plant

PWT plant

R&D center

Training Center

INDUSTRIAL SYNERGIES : SMART GREENFIELD

16


Zhengzhou Plant

Dalian Plant

DFL

DFG-NISSAN

DRAC

DFG-RENAULT

DF-Renault

Veh + PwT Plant

R&D Center

An ideal playground to

constantly challenge ourselves

and improve our performance :

• Plant KPIs

• Manufacturing cost

• Quality

Huadu plant

PWT plant

R&D center

Training Center

INDUSTRIAL SYNERGIES : COMPARE WITH THE BEST

17


PLANT GREENFIELD :

05


GREEFIELD GROUNDBREAKING CEREMONY JAN 2014

19


STAMPING

Equipment

Installation

2020


Equipment

Building

BODYSHOP

2121


PAINTSHOP

2222


PLASTIC

InjectionPainting

2323


TRIM & CHASSIS

3 different stages …

2424


PROTOSHOP : Start of operations Sept 2014

25


S&M and PRODUCT

06


Megane RS launch

Shanghai

Prototype shop

inaugurationPrototype shop EPB

L38 III launch

Wuhan

Motor show

Start of

Main

buildings EPB

New plant visible above the ground … DRAC

2nd BoD

2014

HR Ramp-up

DRAC employee #

passes the 500 line

First RBAC & DRAC dealer

signing ceremony Beijing

DRAC takes over RBAC

CBU operations

JUN JUL AUG SEPT OCT

2014 HIGHLIGHTS :

27


Imported

CBU Integration : One single network

ONE SINGLE

INTEGRATED NETWORK

WHY ?

• Start network integration before first CKD vehicle SOS

• Capitalize on RBAC resources and experience : knowledge of Renault products and

Renault Brand

• Profitability of CBU business to support DRAC operations

�� Aiming towards 150 dealers at end 2014

Locally

Produced

CKD

CBU

28


Retail figures

SALES OVERVIEW

2929


外立面 Façade

短时等候区Waiting Area 展厅客休区Lounge

展厅 Showroom 售后接待AS Reception

车间 Workshop

Renault Store Deployment - Yangzhou

30


EV PERSPECTIVES

07


RENAULT IS READY TO SHARE ITS SUCCESS

RENAULT EV GLOBAL EXPANSION & SUCCESS STORIESCustomers Satisfaction

Customers

Satisfaction

Rate

93% 98%98%95%

32


RENAULT EV GLOBAL EXPANSION & SUCCESS STORIES

Success Stories : Fluence Z.E. in Hong Kong

� RENAULT won the last two tenders from the Hong Kong authorities, thanks to Fluence ZE

� As of today there are about 150 units on the roads

� Electric Vehicles are tax free in Hong Kong

� Several companies and individuals also choose Fluence Z.E

33


2014 SEPTEMBERBEIJING Formula E

3434

investor day in china (presentation by j. daniel) - november 12, 2014

Documents