TRACKING FORM Group Cost Centre

1
The Renault-Nissan Alliance
2
1998 Snapshot

• Sales FF 243,934 million
• ( 40,552 million)
• Production 2,197,395 units
• Employees 138,321

• Sales 6,565bn ( 49,732m)
• Production 2,754,598 units
• Employees 137,201

0
Year ended on December 31st, 1998
Year ended on March 31st, 1998
As per annual report (March 31st, 1998)
1 FF 6.02
3
Transaction Rationale Existing Rankings
Source CCFA December 1998. Based on production
figures
4
Transaction Rationale Combined Rankings
Combined, Renault and Nissan will create the num
ber 4 car manufacturer in the world with a marke
t share of 9.1

Source CCFA December 1998. Based on production
figures
5
Transaction Rationale Markets Complementarity
1998 Estimated market shares of Renault by
Geographical Area
N.B. Volumes in thousand of units Source
Renault () Includes Hong Kong and Taiwan
6
Transaction Rationale Markets Complementarity
1998 Estimated market shares of Nissan by
Geographical Area
N.B. Volumes in thousand of units Source
Nissan () Includes Hong Kong and Taiwan
7
Transaction Rationale Markets Complementarity
1998 Estimated market shares of the Alliance by
Geographical Area

• Leading market share in Europe and Japan
• Global presence

N.B. Volumes in thousand of units Source
Renault and Nissan () Includes Hong Kong and
Taiwan
8
Transaction Rationale Fit of Product Range
The product lines are strong in key segments and
complementary in all categories
800
100
200
300
400
500
600
700
800
900
100
200
300
400
500
600
700
900
0
0
March, Micra, Cube
Almera, Sunny
Bluebird, Primera
Altima, Maxima, Infiniti, Q45, Cedric
Quest, Elgrand, Prairie
Safari, Patrol, Terrano
Pick-up
Atlas Civilian
Source Company
9
Transaction Rationale Production Sites
Complementarity
Assembly Plants
Engine Plants
Number of Sites per region
Number of Sites per region
10
Transaction Rationale Complementary Expertise
Renault and Nissans areas of operating strengths
are complementary and will be exploited to
achieve improved revenue and earning growth
- Cost Management - Global Platform and Purcha
sing Strategy
- Innovative Product Styling
- Advanced Engineering and Technology
- Plant Productivity
- Quality Management
11
Transaction Rationale Potential Synergies
3,000
(US millions)
(3.2)
3,000
Estimates based on Joint Studies
2,500
1,600
2,000
1,573
(1.7)
142
1,500
1,182
120
(1.2)
183
105
100
RD 41SGA 20Addl Rev. 16
1,000
568
(0.6)
1,400
500
0
2000E
2001E
2002E
2005E
Other
Revenue enhancement
Purchasing
Manufacturing costs
SGA
RD
() Based on sales of Renault and calendarized
sales of Nissan as of December 31st, 1998
() Other includes (i) Additional sales (ii)
RD (iii) SGA (iv) Vehicle and engine
assembly and other production costs (v) Capital
expenditures savings
12
The Renault-Nissan Alliance Why

• Excellent fit in terms of markets, products and
  production sites
  
• Outstanding complementarity of operating
  strengths
  
• The Alliance will generate significantly improved
  revenue and earnings growth
  
• Strong cost savings targeted through
  commonalization of platforms and powertrains and
  through mutual support
  
• Management teams have worked closely together
  since July 1998. The cultural fit is promising
  
• Renault has completed extensive due diligence and
  has reached a good understanding of Nissans
  situation
  
• Renault will contribute to Nissans Global Reform
  Plan (reduction of debt and costs) through
  
• Capital injection
• Senior management support
• Realisation of synergies

The Alliance will create high value for both
Renault and Nissan shareholders
13
Transaction Summary
Net Investment
Ownership
bn
FF m
m

• Nissan Motor 590.7 30,061 4,997 36.8
• Nissan Diesel 9.3 473 79 22.5
• European Financing Subsidiaries
  37.8 1,923 320 100.0
  
• Nissans South African Subsidiary 5.0 254
  42
  
• Total Investment 642.8 32,711 5,438
• The transaction is only subject to regulatory
  approvals. Closing should take place by the end
  of May.

Minority interest
FF 1 19.65 1 118.20 1 FF 6.02
14
Transaction Summary Terms of investment in
Nissan Motor

• Renault will subscribe to a reserved capital
  increase in Nissan
  
• 1,464 million shares bringing the total number of
  shares outstanding to 3,977 million
  
• 400 / share
• Share price as of 19/03/99 429
• 1-month-average 453
• 3-month-average 409
• Resulting ownership 36.8

Renault is paying a fair market price without
premium
15
Transaction Summary Terms of investment in
Nissan Motor

• Additionally, Renault will acquire warrants for
  540 million shares
  
• Exercise price 400
• Maturity 5 years
• Exercisable at any time up to a maximum of 39.9
  in the first 4 years
  
• Exercisable with no restriction in year 5
• Warrants will be attached to 216 bn ( 1,827 m)
  of 5-year bonds. These bonds will be immediately
  purchased by Nissans main banks and will
  strengthen Nissans financial structure

As part of this long term partnership, Renault
has the flexibility to increase its participation
1 118.20
16
Transaction Summary Implementation of the
Alliance
Cross Company Teams identify and propose
synergies for the Alliance. Renault and Nissan
implement them
Cross Company Teams
Product Planning Related Strategy
Vehicle Engineering
Powertrains
Purchase Supply
Marketing Sales by region

• Identify,
• Study,
• Propose

• Global Alliance Committee
• Headed by Renaults CEO and
• Nissans President
• Senior Executives 5 from
• Renault and 5 from Nissan

• Decide

• Implement

17
Renaults Contribution to Nissans Recovery
Nissans Global Reform Plan Targets
Renaults Contribution to Nissan Recovery

• Improve financial position through sale of
  non-core assets and inventory reduction
  
• Reduce number of platforms and models
• Improve production efficiency
• Reduce sales and distribution costs in Japan
• Launch new models, reduce production costs and
  inventory levels in the US

• Review and strengthen current restructuring plan
• Improve financial structure through
• Capital injection
• Debt consolidation
• Develop synergies total combined amount of US
  3.3 bn over the 2000-2002 period
  

18
Impact of the Transaction on Renaults Financials
Transaction structure minimizes Renaults
financial risk

• Renaults investment in Nissan Motor and Nissan
  Diesel accounted for under the equity method
  
• No consolidation of debt
• Goodwill amortisation over 20 years estimated at
  approximately FF 300m ( 50m) per year
  
• Renault is not responsible for Nissans
  indebtedness
  
• The investment will be financed through cash and
  debt
  
• The impact on Renaults financial income is
  approximately FF 1,100m ( 183m) on a full year
  basis, i.e. FF 700m ( 116m) after tax.

1 6.02 FF