Thierry MOULONGUET Renaults CFO

1
Thierry MOULONGUET Renaults CFO EVP
Renault-Nissan Alliance Perspective
2
Renault-Nissan Alliance structureOptimizing the
global allocation of resources
44.4
15
50
50
Renault-Nissan BV
Strategic Management
Strategic Management
100
Joint companies eg RNPO - RNIS
19 Cross Company Teams (CCTs)
4 Functional Task Teams (FTTs)
3
The 7 management guidelines for the revival of
Nissan

• Focus on profit and organize the decision process
  around a set of simple financial yardsticks.
• Link compensation and promotion to performance.
• Concentrate on the core business.
• Seek new opportunities for growth.
• Transform a collection of regional fiefdoms into
  a global group.
• Associate public commitments empowerment
  transparency and accountability.
• Build a budget combining project global
  function and regional approaches to stretch the
  performance through transversality.

4
The performance drivers of the Alliance

• Common platforms
• Common purchasing
• Common manufacturing
• Exchange of best practices
• Common IS/IT infrastructures
• Complementarities in the international
  development of Renault and Nissan
• Sharing of resources for new RD development

5
Renault-Nissan Alliance win-win
Advantages drawn by Renault

• Acceleration of international deployment
• Economies of scale (purchasing, common engines
  platforms, co-development)
• Sharing of best practices (quality, industrial
  engineering)
• Optimization of capacity utilization
• Contribution to net result dividend flow
• Cooperation on leading technologies

Advantages drawn by Nissan

• Initial financial input from Renault
• New performance orientated culture
• Cost and vehicle project management
• Re-invention of a  product policy 
• Turn-around in Europe
• Development of captive finance business

6
Worldwide production facilities
Complementarities within the Alliance
India
7
Nissan operating margin
11.1
12
10.8
10
10
7.9
8
6
4.75
4
1.4
2
0
2004
1999
2000
2001
2002
2003
8
Nissan - ROIC
25
21.3
20
19.8
20
15
12.7
10
7.5
5
1.3
0
2004
1999
2000
2001
2002
2003
9
A positive impact of Nissan's resultsin
Renault's accounts
In millions of euros
Dividends receivedfrom Nissan
Nissan contribution to Renault's results
400
2,000
350
300
1,500
250
200
1,000
150
100
500
50
0
0
2004
2003
2002
2001
2000
2000-2004 894 million euros of dividends received
10
Market Capitalization
11
The objectives of the Alliance vision -
destination
To rank among the top three automotive groups in
the world

• For the quality and value of its products and
  services, in each region and market segment,
• In key technologies,
• In terms of operating profit thanks to its
  strategy of profitable growth.