11st April 2009

Renault Feasibility Study Summary

2

Agenda• Aim & Purpose• Success Factors• KSA Passenger car market • Renault past performance.• Alissa Marketing Strategy• Organization chart• Challenges and solutions• Financials• Why Renault for Alissa?

3

Aim• Acquire Renault franchise as an exclusive dealership in the

kingdom.

Purpose • Maximize shareholder business profitability.• Optimize the utilization of the group infrastructure

(economies of scale)• Business Diversification.– Capture the available opportunity “Renault exclusive dealership”.– Balance and mitigate current franchise uncertainty.

4

Success FactorsRenault• Offering wide range of reliable products that are adapted to KSA environment

– Product test has been conducted in the region for the last 2 years for Passenger cars and Light Commercial Vehicles

• Professional and quality standard after sales service to meet the need of the target consumer– Technical team reside in the region (in Dubai) to assist and serve the local dealers.– High ratio of spare parts availability.

• Marketing Support “Renault market strategy)– Detailed re-launching marketing strategy in the region “include re-building image, Brand positioning

and brand awareness)– Competitive price that are capable to acquire reasonable market share. – Financial support from Manufacturer for Trade-in programs to acquire maximum re-sale value.– Focused and innovative marketing programs “Customer First Program”– Utilizing Alissa expertise in the market place.

5

Success Factors Cont…

Alissa

Alissa Heritage as a pioneer in Saudi Auto market backed by experienced executive board

• Sales “strong network with complete infrastructure”• Distribution “ attractive customer base through out the kingdom”• Dedicated experienced management and staff.• Reliable fleet and retail customer data base.• Professional outdoor sales resources.• State - of – the - art IT and management system.• After sales service “Facilities, technical skills, and point of sales”• Strong foundation of Customer Relationship Management.• Customer financial offering (Leasing, Installment,...etc) for retail and fleet customers, through

Al-Yusr and other financial institutions• Operational leasing, Daily rental through BTC and other Rent-A-Car companies.• Retail distribution channels through Autostar and other sub-dealers.

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KSA Passenger car market

• Low penetration of vehicles / person, favorable demographics and macro economic factors are contributing to continued growth in the automotive sector.

• Introducing attractive new models will impact significantly sales and market share.

• Subcompact and compact cars are growing in the last 2 years by 16% .

• The market leader in Passenger car sector is 2.4 – 3.5 cc engine cars “Camry alone sold 47,108 units in 2008.”

• It is expected that female will be allowed to drive then Subcompact and Compact cars will be the first choice for this segment.

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Passenger car Market share/brand 2008

Toyota

Nissan

MMCHonda

Mazda

Suzu

ki

Daihats

u

Subaru

Renault

Hyundai Kia GM

0

50000

100000

150000

200000

250000

2008

44.4%

3.9%2.7% 2.3%1.9%

7.73%

1.28%0.13%

17%

0.3%

10%

4.3%

• Renault Market share in 2008 0.3%• Hyundai is ranked number 3 in 2008

8

Passenger car growth analysis / brand 2008 VS 2007

Toyota

Nissan

MMCHonda

Mazda

Suzu

ki

Daihats

u

Subaru

Renault

Hyundai GM

0

20000

40000

60000

80000

100000

120000

20072008

13%

21%15% 16%-45%

-25%

92% -6%

2%

43%

4%

• Renault growth was 43% in 2008• Daihatsu growth was 92% last year since the franchise transferred to A.J

9

Subcompact cars growth analysis 2007 vs 2008

Yaris Sunny Lancer Civic Swift Sirion Aveo Accent0

5000

10000

15000

20000

25000

20072008

24%

10%-1%

91%59%

23%

4%7%

• Subcompact cars sales are growing in all brands.• Yaris is growing 24% in 2008

10

2.4 cc cars growth analysis 2007 vs 2008

Camry Accord Altima Epica Mazda 6 Sonata Elantra0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

20072008

10%

20%

19%-23% -63%

-4%

16%

11

2009 2010 2011 2012 2013 -

100,000

200,000

300,000

400,000

500,000

600,000

2,300 4,925 6,600 7,129 7,700

491,573 506,320

521,509 537,155

553,269

Renault

Total

0.47%1.33%1.27%

1.39%

0.97%

Renault Market share forecast (assuming market growth at 3%)

12

Koleos Market Share Forecast

2009 2010 2011 2012 2013 -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

250 640 819 885 956

14,988 15,437

15,900 16,377

16,869

Rav4SantafiKoleosTotal segment

1.67%4.15%

5.15%

5.4%5.67%

13

Safrane Market Share forecast

2009 2010 2011 2012 2013 -

20,000

40,000

60,000

80,000

100,000

120,000

48,521 49,977 51,476 53,020 54,611

600 1,450 1,700 1,836 1,983

100,927 103,954

107,073 110,285

113,594

CamrySonatasafraneTotal segment

0.59%1.39% 1.59%

1.66%

1.75%

14

Logan Market Share Forecast

2009 2010 2011 2012 2013 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

20,908 21,535 22,181 22,847 23,532

700 1,700 2,176 2,394 2,538

57,463 59,187

60,962 62,791

64,675

YarisAccentLoganTotal segment

1.22%

2.87%

3.57% 3.81%

3.92%

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Megane Market Share forecast

2009 2010 2011 2012 2013 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

33,653 34,663 35,703 36,774 37,877

150 350 447 484 522

62,498 64,373

66,304 68,294

70,342

CorollaCivicMeganeTotal segment

0.24%

0.54%

0.67% 0.71% 0.74%

161st April 2009

2009 2010 2011 2012 20130

1000

2000

3000

4000

5000

6000

7000

8000

9000

KoleossafraneLoganMeganeRenault

0.97%

1.27%

1.33%

1.39%

1.22%

3.92%3.81%3.57%

2.87%

0.47%

0.59%

1.39%

1.59% 1.66% 1.75%

1.67%

0.24% 0.71% 0.74%0.54% 0.67%

4.15%5.15% 5.4% 5.67%

Renault products Market share (assuming 3% growth in Auto market)

171st April 2009

2009 2010 2011 2012 20130

1000

2000

3000

4000

5000

6000

7000

8000

9000

KoleossafraneLoganMeganeRenault

1.03%

1.38%

1.49%

1.61%

1.25%

4.55%4.29%3.90%

3.05%

0.48%

0.61%

1.48%1.73% 1.87% 2.02%

1.72%

0.25%

0.8% 0.86%

0.58% 0.74%

4.4% 5.63% 6.08% 6.57%

Renault Market share (assuming no growth in Auto market)

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Sales Growth Forecast summary / units

2007 2008 2009 2010 2011 2012 20130

100020003000400050006000700080009000

sales

43%

90%

80%

34%8%

8%

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Price Comparison

30 35 40 45 50 55 60 70 80 90

1.3 – 1.6cc

Toyota

Nissan

Honda

Renault

Hyundai

Mazda

Chevrolet

Mitsubishi

Citroën

Peugeot

Daihatsu

Yaris Corolla

Camry

Getz

Logan PE Megane 1.6

Mazda 3

Aveo

Sirion

Retail price (kSR)

civic

Tiida

1.3 – 1.6 cc 1.6 – 2.0 cc 2.0 – 2.4 cc

Logan Se

2.0– 2.7 cc1.6 -2.0 cc

2.5 4x4

Rav4

Santa fi

Koleos

Koleos 4x2

Accord

Mazda 6

Sonata

Safrane SafraneSafrane

Epica

Lancer

Megane 2.0

LCV

LCV

LCV

LCV

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Renault Current Performance overview in KSA

• Low sales volume and very small market share.

• Resale values is lower than competitors’.• Perception of low quality after sales service. • Perception of expensive spare parts and non-

availability.• Weak brand image.

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Alissa Renault Marketing Strategy in KSA• Re-launch Renault brand.• Positioning Renault brand.• Leverage Renault image.• Gain sizable market share.• Promote Renault brand as “modern French design backed

by Japanese technology”.• Restore the customer confidence in Renault after sales

service.

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Market Segmentation• Retail

– Youth: • Includes males aged from 20 to 34 years which represent 29.3% of the population. • This segment is price oriented due to low purchase power (limited income).• Students, employees, expatriates and nationals who prefers economic cars, modern designs.• Sport cars and coupe for niche segment.

– Family: • Small and mid size families.• Focus on safe, reliable vehicles that matches the Saudi environment.

• Fleet– Rent-A-car companies: Operational leasing, and daily rental.– Firms: Which purchase cost-effective cars, at low service cost and low price.– Government: ministries, police, civil defense and healthcare sector.....etc.– Sub-dealers

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Promotion strategy• Tactical campaigns to create demand and expand sales.

– Above the line activities.• Newspaper advertisement, prints , banners, brochures. • E-marketing activities.• Radio spots• Outdoor marketing activities.

– Below the line activities.• Direct mail for fleet customers• Personal promotion.• Sales promotion. “seasonal offers”

• Public relation activities:– A press release kit will be sent to all major media outlets in Saudi

Arabia, highlighting:• What is Renault?• New Renault products.• After sales service facilities in Saudi Arabia.

– Events: launching, fleet events….etc.

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Distribution Strategy

Start up:• 4 dedicated showrooms for Renault

– 2 In Riyadh "Khorais Road (main Auto Market) and Al Shifa area”• Shifa Showroom will be opened in 2010

– 1 In Dammam "Auto mall”– 1 in Jeddah "Madina Road"

• 12 Autostar showrooms kingdom wide– Dedicated branded area for Renault vehicles in Hubtowns.

• 8 Autostar workshops kingdom wide with dedicated reception area for Renault.

• More than 35 parts outlets kingdom wide.

251st April 2009

Geographic Coverage

Renault presentation

Renault existence

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• Used car sales– 12 Autostar used car centers kingdom wide.

• Financing– Retail and fleet financing facilities through our

sister Company Al Yusr.– Operational leasing and daily rental through our

sister company BTC.

Distribution Strategy Cont…

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Distribution Strategy Cont…

Future expansion:• When sales volume exceeds 10,000 units per annum

– 3S facilities dedicated for Renault in the 3 main cities

– Opening new showrooms dedicated for Renault according to new opportunities in the market.

– Renault will be part of all Autostar showrooms, service workshops and parts outlets kingdom wide.

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Sales strategy • Dedicated fleet and retail team for Renault Kingdom

wide in the three main cities.

• Focus on LCV range and Logan for fleet segment.

• Focus on Safrane and Koleos for retail segment.

• Re-launch of “customer first” program.

• Trade-in program.

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Organization Chart

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Challenges & SolutionsChallenge• The Bad brand image in the market

Solution• Re-launch Renault brand in KSA by Marketing activities.• Financial budget allocated by manufacturer for re-launch events.• Leverage Renault brand image by introducing new models to the market

adapted to the Saudi environment.• Communicate “What is Renault?” In our re-launch activities:

– Over 110 years in Automotive market– Owns 44% of NISSAN worldwide.– French design, Japanese technology– New Era for Renault products to cope with GCC requirements.

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Challenge • Perception of low service quality

Solution• Re-launch “Customer First” program for service.• Communicate the new wide network of service

workshops kingdom wide:– Now…you can serve your Renault in 8 workshops kingdom

wide and more…• CRM to ensure high customer service for Renault users.

Challenges & solutions Cont…

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Challenge• Perception of expensive and non-availability of parts

Solution• Communicate our over 35 parts outlets kingdom wide.• Restructuring price list of parts with the manufacturer.• Communicate price comparison of parts and service

between Renault and other brands.

Challenges & solutions Cont…

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Challenge• Low re-sale value.

Solution• Launch Trade In campaign with special

financial support by manufacturer.• Extended warranty for used car.

Challenges & Solutions Cont…

34

P&L statement “With average GP% (8.7%)”

Total Sales 2009 2010 2011 2012 2013

Units Sold 1901 4925 6599 7129 7708

Net Sales 100,737,757 260,331,104 352,856,101 381,456,104 412,291,411

Net COS (COS less Incentive) 91,913,655 237,630,110 322,099,643 347,944,347 376,174,022

Gross Profit 8,824,102 22,700,994 30,756,458 33,511,757 36,117,389

GP % 8.76% 8.72% 8.72% 8.79% 8.76%

GP Per Vehicle 4,642 4,609 4,661 4,701 4,686

Operating Expenses 5,069,677 12,187,423 13,879,942 14,315,427 15,184,626

Finance 589,023 1,351,455 245,393 (280,697) (912,393)

Operating Profit 3,165,402 9,162,116 16,631,123 19,477,026 21,845,156

Net Profit 1,793,503 5,701,681 12,041,040 14,379,853 16,564,179

Break Even (Value Sales) 194,945,206.73 214,714,241.11 217,773,764.61 223,206,070.40

Break Even ( Qty ) 3,688 4,016 4,070 4,173

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Balance Sheet “With average GP% (8.7%)”2009 2010 2011 2012 2013

ASSETS

Current Assets

Total Current Assets 98,218,269 109,058,680 114,489,148 127,345,061 148,124,382

Non-Current Assets

Total Non-Current Assets 2,770,000 1,910,000 1,050,000 440,000 130,000

Total Assets 100,988,269 110,968,680 115,539,148 127,785,061 148,254,382

LIABILITIES & EQUITY

Current Liabilities

Total Current Liabilities 78,666,527 81,667,161 73,933,032 71,970,713 76,235,294

Non-Current Liabilities

Total Non-Current Liabilities 525,120 1,144,640 1,299,520 2,042,944 2,860,710

Total Liabilities 79,191,647 82,811,801 75,232,552 74,013,657 79,096,004

Equity

Total Equity 21,793,503 28,065,353 40,170,160 53,579,790 68,924,417

Total Liabilities and Equity 100,985,150 110,877,153 115,402,712 127,593,447 148,020,421

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Ratios “With average GP% (8.7%)” 2009 2010 2011 2012 2013

Efficiency

Gross Margin % 8.76% 8.72% 8.72% 8.79% 8.76%

Inventory Turnover - Months 2.59 2.71 2.16 2.16 2.40

Collection Ratio - Months 4.6 3.0 2.2 2.0 1.9

Operating Cycle Period - Months 6.15 4.69 3.36 3.20 3.28

Debt Management

Bank Debt to Equity 1.7 1.4 0.7 0.4 0.2

Total Debt to Equity 3.63 2.95 1.87 1.38 1.15

Total Debt to Assets 0.78 0.75 0.65 0.58 0.53

Liquidity Management

Current Ratio 1.25 1.34 1.55 1.77 1.94

Quick Ratio 0.75 0.68 0.76 0.90 0.96

Total Debt to Current Assets 0.81 0.76 0.66 0.58 0.53

Return

Return on Equity (ROE) 16.5% 20.3% 30.0% 26.8% 24.0%

Return on Capital Employed (ROCE) 5.9% 8.3% 17.5% 19.1% 20.1%

Return on Assets (ROA) 0.59% 5.14% 10.42% 11.25% 11.17%

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P&L statement “With average GP% (7%)”

Total Sales 2009 2010 2011 2012 2013

Units Sold 1901 4925 6599 7129 7708

Net Sales 99,072,828 255,767,679 346,727,687 374,784,697 405,096,950

Net COS (COS less Incentive) 91,913,655 237,630,110 322,099,643 347,944,347 376,174,022

Gross Profit 7,159,173 18,137,569 24,628,044 26,840,350 28,922,928

GP % 7.23% 7.09% 7.10% 7.16% 7.14%

GP Per Vehicle 3,766 3,683 3,732 3,765 3,752

Operating Expenses 4,808,212 11,497,533 12,954,865 13,313,513 14,391,403

Finance 604,603 1,644,622 849,074 661,320 411,719

Operating Profit 1,746,359 4,995,413 10,824,104 12,865,517 14,119,806

Net Profit 374,460 1,534,978 6,234,021 7,768,344 8,838,829

Net Profit Percentage 0.38% 0.60% 1.80% 2.07% 2.18%

Break Even (Value Sales) 234,122,121.05 258,961,578.76 266,311,577.22 281,299,569.34

Break Even ( Qty ) 4,508 4,929 5,066 5,352

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Balance Sheet “With average GP% (7%)”2009 2010 2011 2012 2013

ASSETS

Current Assets

Total Current Assets 97,575,237 107,549,782 112,449,634 124,741,906 144,636,763

Non-Current Assets

Total Non-Current Assets 2,770,000 1,910,000 1,050,000 440,000 130,000

Total Assets 100,345,237 109,459,782 113,499,634 125,181,906 144,766,763

LIABILITIES & EQUITY

Current Liabilities

Total Current Liabilities 79,445,657 86,252,206 83,586,751 87,227,224 97,825,272

Non-Current Liabilities

Total Non-Current Liabilities 525,120 1,144,640 1,299,520 2,042,944 2,860,710

Total Liabilities 79,970,777 87,396,846 84,886,271 89,270,168 100,685,983

Equity

Total Equity 20,374,460 22,062,936 28,613,363 35,911,738 44,080,781

Total Liabilities and Equity 100,345,237 109,459,782 113,499,634 125,181,906 144,766,763

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Ratios “With average GP% (7%)”

2009 2010 2011 2012 2013

Efficiency

Gross Margin % 7.23% 7.09% 7.10% 7.16% 7.14%

Inventory Turnover - Months 2.59 2.71 2.16 2.16 2.40

Collection Ratio - Months 4.6 3.0 2.2 2.0 1.9

Operating Cycle Period - Months 6.15 4.69 3.36 3.20 3.28

Debt Management

Bank Debt to Equity 1.9 2.0 1.3 1.0 0.8

Total Debt to Equity 3.93 3.96 2.97 2.49 2.28

Total Debt to Assets 0.80 0.80 0.75 0.71 0.70

Liquidity Management

Current Ratio 1.23 1.25 1.35 1.43 1.48

Quick Ratio 0.73 0.62 0.65 0.71 0.71

Total Debt to Current Assets 0.82 0.81 0.75 0.72 0.70

Return

Return on Equity (ROE) 3.7% 7.0% 21.8% 21.6% 20.1%

Return on Capital Employed (ROCE) 1.3% 2.3% 9.3% 10.7% 11.2%

Return on Assets (ROA) 0.12% 1.40% 5.49% 6.21% 6.11%

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Net profit Forecast

2009 2010 2011 2012 20130

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1,793

5,702

12,041

14,379

16,564

3741,535

6,234

7,7688,839

Net Profit 8.7% GP Net Profit 7% GP

SR/M

41

ROCE Forecast

2009 2010 2011 2012 20130.0%

5.0%

10.0%

15.0%

20.0%

25.0%

5.9% 8.3%

17.5%19.1%

20.1%

1.3%2.3%

9.3%10.7% 11.2%

ROCE 8.7% GP ROCE 7% GP

SR/M

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Why Renault Franchise for Alissa

• Renault will enter the Saudi Automotive market, planning to capture sizable market share, equipped with new strategy, initiatives, products and dedicated expertise.

• Alissa is capable to accommodate and deliver Renault objectives and goals to sustain and grow shareholders’ profitable base.

Confidential

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Thank you