20080402-socgen isr roadshow

RENAULT SRI ROADSHOW, LONDON APR. 2ND, 2008

Guillaume VAUDESCALSRI IR

2APRIL 2ND 2008

SOCIAL PERFORMANCE0102

AGENDA

03 ENVIRONMENT : POLLUTANTS & RECYCLING

ENVIRONMENT : CO2

3APRIL 2ND 2008

01 SOCIAL PERFORMANCE

4APRIL 2ND 2008

THE BASIS OF THE SOCIAL POLICY :THE DECLARATION OF SOCIAL FUNDAMENTAL RIGHTS

! Signed in 2004 by Group Committee, trade unions, and tier-1 suppliers

5APRIL 2ND 2008

THE BASIS OF THE SOCIAL POLICY : THE DECLARATION OF SOCIAL FUNDAMENTAL RIGHTS

! Health, safety and working conditions Renault considers EU standards as the benchmark for preventing occupational accidents. These standards are the basis of the Group's policy on working conditions, implemented at all sites worldwide.

! No child labor Renault agrees not to employ children below the school-leaving age or, in any case, under the age of 15.

! No forced labor Renault condemns forced or compulsory labor in any form, and agrees not to make use of it.

6APRIL 2ND 2008

ACTIONS

! Early retirement programs (CASA, Spain…)! Commitment on work force balance (e.g. transfer from

Douai to Maubeuge)! Employers grouping (North of France)! Diversity workgroup (implies senior hiring)! Ergonomics : ability to have seniors and disabled

people

7APRIL 2ND 2008

1946

8APRIL 2ND 2008

1989

9APRIL 2ND 2008

2007

ENVIRONMENT : CO202

11APRIL 2ND 2008

! CO2 is key driver of environmental policies

! The EU is more severe on CO2 regulation and taxes

! The US had to accelerate on CO2

! Outside EU, dieselization is on the move

CO2 REDUCTION: A GLOBAL ACCELERATION

12APRIL 2ND 2008

"

2007-2008

Annual tax Reg. tax0

10

20

30+

0

20

40

80+

€/gCO2 / year €/gCO2

EU COUNTRIES INCREASE THE CO2 CUSTOMER VALUE WITH TAXES

" : project

Annual or Registration taxes based on CO2 / FE criterion :

Average indicative cost of one additional gCO2/km on mid-market [100g-200g CO2/km]

13APRIL 2ND 2008

B-segmentB-segment

C-segmentC-segment

D-segmentD-segment

SUVSUV

A-segmentA-segment

THE BIG MIX SHIFT – French segment evolution

14APRIL 2ND 2008

2012 / 2015 EUROPEAN CO2 REGULATION PROJECT

In December 2007 European Commission project on CO2 regulation broken up in :! 130g CO2/km vehicle technologies OEM CAFE in 2012! 10g CO2/km « additional measures » :

# Efficient air conditioning# Tire pressure monitoring# Low rolling resistance tire# Gear shift indicator# Biofuels compatible cars# Other measures : CO2 taxation reinforcement# Modification of labeling directive

15APRIL 2ND 2008

averagecustomer

value:*2004 : 24 €/g2012 : 52 €/g

1g CO2/km

CUSTOMER VALUE OF CO2 REDUCTION

Fuel consumption

CO2 National Taxations*Value is based on fuel savings over life of the vehicle, plus impact of CO2 taxes

16APRIL 2ND 2008

POSITIONING TECHNOLOGIES ACCORDING TO CO2 VALUE …

0%0€/g

2% 4% 6% 8% 12% 14% 16% 18% 20%

20€/g

40€/g

60€/g

100€/g

80€/g

10%

Customer value

52€/g/km

62€/g/km

82€/g/km

Vehicle managementPowertrain technologies

CO2 benefit

Confidentiel Renault

17APRIL 2ND 2008

PICK UP THE RIGHT OPTIONS

0%0€/g

10% 20% 30% 40% 60% 70% 80% 90% 100%50%

Customer value

100€/g

200€/g

300€/g

400€/g

Vehicle managementPowertrain technologiesHEV & EV

52€/g/km62€/g/km82€/g/km

CO2 benefit

Confidentiel Renault

18APRIL 2ND 2008

HEV IS NOT YET A CASE

USA

Europe

~ 37 000

~250 000Japan

~80 000

HEV 2006 SALES(compared to 60M vehicles)

19APRIL 2ND 2008

RENAULT ECO²3 CRITERIA FOR ECOLOGICAL & ECONOMICAL VEHICLES

& &

Low fuel consumption, tax management, affordabilityto a wide majority of customers supported by the ecological efficiency.

Below 140 g/CO2or biofuel-compatible

Produced in anIso-14001-certified plant

PRODUCTION

95% reusable by weight &at least 5% of recycled plastics

END-OF-LIFECO2 EMISSIONS

Ecological & Economical

20APRIL 2ND 2008

0

200

400

600

800

1,000

1,200

2000 2001 2002 2003 2004 2005 2006 2007 2008

1,000,000

1/3 emitting less than 120 g/km CO2

1 million vehicles emitting less than 140 g/km CO2 in 2008

42 versions42 versions

16 versions16 versions

121-140101-120

European Union sales(thousand vehicles)

ENVIRONMENTA WIDE OFFER UNDER 140 g/km CO2

122 versions122 versions

35 versions35 versions

333,333

Emission level (g/km CO2)

21APRIL 2ND 2008

Breakdown of CO2 classes by carmakers2007 – EU 15

22APRIL 2ND 2008

CO2 EMISSION REDUCTION ISA CHALLENGE AND AN OPPORTUNITY FOR RENAULT

! Kaizen:! Compact cars

! Aerodynamics! Losing weight : Laguna 3 67kg lighter than Laguna 2! Gearbox : 6-shift gearbox on small cars too

! Efficient diesel! Downsized gasoline turbo

! Breakthroughs: ! Electric Vehicle! Hybrid electric vehicle

! Fuel cells

! leverage

23APRIL 2ND 2008

Diesel 2.0 dCi 130, 150 & 175hp Leader in performance & driving pleasurePerforming, Silent, Economical & Clean

Diesel 1.5 dCi 110hpLeader in consumption & CO2 emissionsin this market segment

ALLIANCE

ALLIANCE

RENAULT

Petrol 2.0L 16v 140hpSilent, smooth & Dynamic

Petrol 3.5L V6 24v 245hpPerforming & smooth

NISSAN

Engine Origin

ENVIRONMENTAL COMPETITIVENESS

ELECTRIC VEHICLE PROJECT

25APRIL 2ND 2008

OIL REFINEMENT

OIL

100,000YEARS

SOLAR ENERGY

GAS STATION

CO2

CHANGE FROM OIL CYCLE

26APRIL 2ND 2008

OIL REFINEMENT

OIL

100,000YEARS

SOLAR ENERGY

GAS STATION

CHANGE FROM OIL CYCLE TO SOLAR CYCLE

SOLAR ENERGY

15 m²

15,000 km a yearCO2

Zero emission

A ZERO EMISSION CAR IS TECHNICALLY FEASIBLE

27APRIL 2ND 2008

WHY NOW?! CO2 value increases

! LITHIUM-ION battery :! Safety of use! Cost

28APRIL 2ND 2008

START OF THE ELECTRIC VEHICLE PROJECT : ISRAEL

Why Israel?$Government subsidies on zero

emission vehicles #60% minimum until 2015#30% minimum until 2019

$Small, compact country

$High-Tech industry

$cooperation with “Project Better Place” that will develop the charging network

50Km50Km

29APRIL 2ND 2008

WHY AN ELECTRIC VEHICLE?

EuropeanEuropean marketmarket

Ecological and Economical for a multi-purpose daily use

… living in the urban centers(17%)

… Households possessing at least one vehiclenot used for holidays or week-ends (29%)

Elec. Vehicle target

ENVIRONMENT : POLLUTANTS & RECYCLING03

31APRIL 2ND 2008

REACH REGULATION

!Chemicals control and substance data management already in the Renault culture for years

!Special 6 people project team dedicated to REACH compliance at Renault

!ACEA+Japanese & Korean automotiveassociations grouping as a taskforce

32APRIL 2ND 2008

0,7HydroCarbon g/km

NOx g/km

CO g/km

Particulates g/km

Euro 2

Euro 3

0,70,08

1,0

Euro 4

Euro

6 Euro5

Euro 11993 1996 2000

Euro 22005

Euro 3 Euro 42010

Euro 52015

Euro 6

DECREASE BOTH CO2 AND POLLUTANTS EMISSIONS

(Nitrogen Oxyds)

33APRIL 2ND 2008

EURO5 AND EURO6 TECHS

! Euro5 : ! Particulate filter on Diesel engines

! Euro 6 :! NOx traps, EGR Exhaust Gas Recirculation

34APRIL 2ND 2008

RECYCLING : ELV EUROPEAN REGULATION

! EU target : effective recovery of 95% of all vehicles by 2015! JV with SITA to speed up ELV treatment! SITA, a Suez subsidiary, is Europe's leading global waste

management specialist.! Renault and SITA France will both take control of INDRA, a

network of 200+ certified vehicle dismantling business throughout France.

35APRIL 2ND 2008

RECYCLING! Production phase : The amount of packaging waste per

vehicle dropped 50% between 1996 and 2006. ! Increase the use of recycled plastics (target of 50 kg (i.e. 20

to 25%) by 2015)

36APRIL 2ND 2008

40

50

60

70

80

90

100Best score 2007 DJSI

Renault positioning (SAM score/ 100)

2007 Results 2006 Results

Economy Environment Social Global

OEKOM RESEARCHRenault (ranking over 17 OEMs)

0

1

2

3

4

5

6

7 GlobalEnvironmentSocial

2004

20052006

6th in 2000

2nd in 2003

1st in 2006

2007

PROVEN AND WIDELY ACKNOWLEDGED RESULTS

QUESTIONS & ANSWERS

Guillaume VAUDESCALSRI IR

38APRIL 2ND 2008

! QUALITYNew Laguna in the Top 3 models of its category in quality.

! PROFITABILITY6% operating margin in 2009.

! GROWTH+ 800,000 vehicles between 2005 and 2009strongest period of growth in the history of Renault.

39APRIL 2ND 2008

THE RENAULT BOARD

40APRIL 2ND 2008

THE BASIS OF THE SOCIAL POLICY : THE DECLARATION OF SOCIAL FUNDAMENTAL RIGHTS

! Equal opportunitiesRenault agrees to combat all forms of discrimination and to promote the integration of people in difficulty.

! JobsRenault has a commitment to protect jobs. In the event of reorganization or restructuring, it agrees to help employees and, where possible, to find other jobs for them within the Group.

! The right to trainingRenault ensures that all employees have access to training throughout their careers.

! Working hours and the right to paid holidaysIn compliance with national legislation, Renault is implementing a policy based on the adjustment of working hours. It also grants paid holidays to all employees.

! Salaries and wagesRenault recognizes the principles of fair compensation for work and equal pay for equal work.

! Employee representationRenault seeks to ensure that all personnel are represented. It places particular importance on trade union rights and the freedom of association.

! Supplier relationsRenault encourages its suppliers to observe these fundamental principles. Their commitment to preventing occupational risk and to banning child labor and forced labor will be considered a selection criterion.

No affirmative action : criteria based on competenciesExample : non-working day atDouai=>workers sent to Maubeuge (circ. 70km)