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
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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
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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
DIRECTION DES OPERATIONS CHINE 2014 NOV 12CONFIDENTIALRENAULT PROPERTY
INTRODUCTION :
RENAULT BACKGROUND IN CHINA
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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
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CHINA AUTOMOTIVE MARKET:
OUTLOOK & PERSPECTIVES
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PV market overview and growth trend
PV TIV and growth trend
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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
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PV MARKET CONSUMPTION STRUCTURE
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PROJECT OVERVIEW :
GETTING STARTED…
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Our locationBeijing ~ 1 000 km
Shanghai ~ 700 km
Guangzhou ~ 800 km
WEDZ :Wuhan Economic & Technical Development Zone
WEDZ
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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
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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
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SYNERGIES :
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« THE BIG PICTURE »
� Local talent pool
� CHINA expertise
� Training ….
� Plant C/P
� Common suppliers
� Common Parts …
� SPEED ����
� COST ����
� PERFORMANCE
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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
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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
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PLANT GREENFIELD :
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GREEFIELD GROUNDBREAKING CEREMONY JAN 2014
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STAMPING
Equipment
Installation
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Equipment
Building
BODYSHOP
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PAINTSHOP
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PLASTIC
InjectionPainting
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TRIM & CHASSIS
3 different stages …
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PROTOSHOP : Start of operations Sept 2014
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S&M and PRODUCT
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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 :
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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
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Retail figures
SALES OVERVIEW
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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
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EV PERSPECTIVES
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RENAULT IS READY TO SHARE ITS SUCCESS
RENAULT EV GLOBAL EXPANSION & SUCCESS STORIESCustomers Satisfaction
Customers
Satisfaction
Rate
93% 98%98%95%
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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
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2014 SEPTEMBERBEIJING Formula E
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