Prsentation PowerPoint

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Investor Presentation 2007 Results
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• Disclaimer
• This presentation is not, and is not intended to
  be, an offer to sell any security or the
  solicitation of an offer to purchase any
  security.
• The following presentation has been prepared to
  provide information about RCI Banque Information
  have been obtained from sources believed to be
  reliable. None warrant its completeness or
  accuracy.
• This presentation may contain forward-looking
  statements, in particular statements regarding
  our plans, strategies, prospects and expectations
  regarding our business. You should be aware that
  these statements and any other forward-looking
  statements, in this presentation, only reflect
  our expectation and are not guarantees of
  performance near and in the future.
• These statements involve risks, uncertainties and
  assumptions about events or conditions and is
  indented only to illustrate hypothetical results
  under those assumptions. Actual events or
  conditions are unlikely to be consistent with,
  and may differ materially from, those assumed. In
  addition not all relevant events or conditions
  may have been considered in developing such
  assumptions. Accordingly, actual results will
  vary and the variations may be material.
  Prospective investors should understand such
  assumption and evaluate whether they are
  appropriate for their purposes.

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• Key Figures
• RCI Banque activity and results
• Financial Policy

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A prime auto loans portfolio and a sound
liquidity position

• A strong liquidity position
• 3,1 Bn liquidity reserve at 2007 end
• M 5 361 Committed back-up lines.
• M 592 Cash.
• M 1 825 ECB eligible collateral.
• - M 4 701 CD/ECP outstanding.
• Funding of assets with longer dated liabilities.
• No drawing on back-up lines.
• ABS programs with long WAL, no repayments due in
  2008 and a potential increase in ECB eligible
  outstanding (retained ABS notes) in case of
  portfolio growth.

• A Car Finance activity with no direct or indirect
  links with subprime activity
• No activity in the US.
• Cost of risk under control, resulting from stable
  origination, underwriting and collection
  processes.
• 93 of assets in 10 western European countries
  (mainly France, Germany, UK, Spain and Italy).
• No off-balance sheet exposure to any credit risk.

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No impact of the liquidity crisis on profitability

• Customer financing (1.8 to 2 years WAL)
• Pricing is based on cost margin approach to
  achieve ROE target
• Increased credit margins are compensated by the
  drop in absolute level of interest rates.
• The banking environment has allowed for
  significant price increases in the last six
  months, without significant impact on new
  business.
• Floor plan financing
• Dealer financing is generally indexed on Euribor
  3 months.
• Short term cost of funds have remained stable
  (over Euribor) even if margins over EONIA have
  widened.

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2007 Results and ROE in line with 2006
M
Bn

• Despite difficult automotive environment, RCI
  Banque maintains its customer outstanding.

• ROE in line with 2006 and RCI Banque target

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and historical performance. RCI Banque has
shown very little volatility in result and
profitability over the last 15 years
MEUR
In
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8 Tier 1 target
In M

• 8 Tier 1 target drives dividend policy.
• Basel 2 as of 01.01.08 RCI Banque has been
  authorized to use its advanced internal models
  for its 3 activities in 4 countries (representing
  70 of the credit risk)

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• Key Figures
• RCI Banque activity and results
• Financial Policy

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100 owned by Renault, RCI Banque is an
autonomous Business Unit specialized in car
financing and related services

• French Bank under supervision of French
   Commission Bancaire.
• 2 mains targets
• ROE ,
• Integration in the marketing of Renault/Nissan
  Alliances brands.
• 3 Main markets
• Retail,
• Corporate,
• Dealer.

• 93 of assets in 10 western European countries.
• Origination of credits only through car
  dealership.
•  Stand alone  rating (one notch above Renault)
• Moodys C/A3/P2,
• SP A-/A2,
• FitchRatings B/C A-/F2.

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RCI Banque within the Renault Group
RENAULT sas
EUROPE
INTERNATIONAL
100
100
ALGERIA
BRAZIL
GERMANY
FRANCE
AUTOMOTIVE DIVISION
ARGENTINA
ITALY
RUSSIA
SPAIN
MORROCO
COLOMBIA
NETHERLANDS
SWITZERLAND
AUSTRIA
PORTUGAL
UKRAINE
SOUTH KOREA
CROATIA / SLOVENIA
BELGIUM
POLAND
ROMANIA
Renault Group Activity (Renault / Dacia /
Samsung)
CZECH REP. / SLOVAKIA
HUNGARY
SCANDINAVIA
UK
Renault Nissan Activity

• RCI Banque has a direct contribution to Renaults
  consolidated operating margin.

• RCI Banque finances sales of Renault brands
  worldwide and Nissan mainly in Europe

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Synergies between the captives and the carmaker

• Trusted brand
• Access to dealer channel
• Exclusive marketing programs

Proposes competitive financial services
Proposes competitive offer of vehicles
Car Manufacturer
Captive Finance

• Supports vehicle sales (faster turnover rate)
• Customers buy more options
• Higher customer satisfaction and loyalty
• Dealer and International expansion
• Profits and dividends (RENAULT)

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Retail activity accounts for 50 of the
outstanding
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An international development in relationship with
Renault
Outstanding distribution

• 100 Subsidiaries Commercial
  Agreement
• JV Minority stake

• CENTRAL EUROPE
• Poland
• Czech Rep.
• Slovakia
• Croatia
• Hungary
• Slovenia

• ASIA - AFRICA
• South Korea

• NORTHERN EUROPE
• Denmark
• Sweden
• Finland
• Norway

• EUROMED
• Morocco
• Algeria
• Romania
• Russia
• Ukraine

• SOUTH AMERICA
• Argentina
• Brazil
• Mexico
• Colombia

• Outstanding outside the 10 historical European
  countries increased from 114 MEUR in 2000 to
  1620 MEUR in 2007

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but under RCI Banque control
JV, JV or 100 RCI Banque according to
feasibility study
SECOND PHASE

• Funding can be partially or totally centralized
  if the country transfer and convertibility risk
  rating is A- or better.
• Provisioning of country risk exposure
  (total provision 26MEUR
  at 2007 end, ie 8M vs 2006)

Usually commercial agreement with local bank
INITIAL PHASE
Steps of international development
Under exclusive RCI Banque responsibility
FEASIBILITY
OPPORTUNITIES
Markets for Renault and Nissan exceeding 15 000
vehicles / year
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Stability of the gross financial margin and
results before tax, as of average outstanding

• Despite interest rates rise, the gross financial
  margin has been maintained.
• Cost of risk is kept inside target (0.5-0.7)
• the repurchase of 50 in previous UK JV has a non
  recurring negative impact on operating costs in
  2007

NRE non recurring elements In M
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Cost of Customer and Dealer Risk
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Stable non performing loans ratio, and a
conservative provisioning policy
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• Key Figures
• RCI Banque activity and results
• Financial Policy

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A cautious financial policy

• While maintaining permanent liquidity reserve
  coming from
• Assets being funded with longer dated liabilities
• Committed lines (undrawn)
• ECB eligible securities
• Cash invested in short term bank deposits only

• Aiming to protect the commercial margin
• No exposure (direct or indirect) to any subprime
  assets, no activity in the US.
• Market risk kept at low level
• 25 Risk division ratio applying to all banks
  prevents RCI Banque from lending more than 25
  of its equity to a single name (including Renault
  and Nissan). Limit mostly used by dealership
• Diversified sources of funding
• Centralized funding only in  single A  rated
  countries

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A conservative liquidity risk management
Liquidity Position of RCI Banque as of DECEMBER
31st 2007 (in M)

• Assets are funded with longer dated liabilities.
• A recognized know how in ABS.
• Sufficient potential portfolios to be securitized
  in order to deal with a major liquidity stress
  scenario (no access to unsecured funding during
  12 months).
• Access to ECB liquidity in case ABS market dries
  out

assets
liabilities back up lines assets eligible to
ECB
liabilities
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Liquidity Reserve remains high

• Available Liquidity made of
• bilateral committed lines
• allocated by 35 international banks from 12
  countries.
• No covenant no negative pledge, ownership, pari
  passu, cross default, material adverse change,
  rating triggers.
• Asset Backed Notes eligible to ECB tenders.
• Cash.
• Liquidity Reserve Available Liquidity CD/CP
  Outstanding

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Limited market risks

• Interest rate risk
• Low sensitivity exposure, daily control at group
  level (RCI global sensitivity exposure was 1.23
  M for a 100 bps on December 31st 2007).
• Foreign exchange risk
• Low foreign exchange exposure due to funding in
  local currency (FX exposure on 31/12/07 2,3 M)
• Counterparty risk
• 99 of exposure (mainly on derivatives) with
  counterparties rated  single A  or above.

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Securitization is used both for funding and
increasing asset liquidity.
ABS fully consolidated, first losses are kept by
RCI Banque.
SPV
Issuer
Assets Portfolio (no cherry picking all
receivable meeting eligibility critera are sold)
Medium Term Senior Notes AAA Medium Term
Subordinated Notes A Short Term revolving
Notes AAA Short Term Subordinated
Notes A Credit enhancement
Assets
Sale of receivables
Market
Underwriting (only through dealership)
Private Placement Monthly re-issue to match
portfolio fluctuation
Purchase price
RCI Banque
Generaly kept by RCI Banque as ECB collateral
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A balanced funding profile split between
different sources and maturities.

M
Short Term
Long Term

• Stand alone funding (without any Renault
  support)
• 4 ABS programs have been launched since 2002
  leading to an increase of long term liabilities.

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A balanced geographical funding diversification
Borrowings with initial maturity of one year and
above

• 2005 5 636 M (wam 3.4 years)
• 2006 5 103 M (wam 3.3 years)
• 2007 3 679M (wam 2.8 years)

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2008 funding plan

• 2008 expected asset growth
• 400 to 800 M (2 to 4)
• relative cost will be key to final program

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A stand alone rating, notched up from Renaults

• Standard Poors, Moody's and Fitch carried out
  an individual analysis of RCI Banque and assigned
  a better rating than Renaults.
• A better long term rating mainly due to
• strong financial results.
• banking status.
• autonomous management.
• Stable outlook on all RCI Banques ratings

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RCI Banques credit main strengths

• Mono-activity business model with no
  diversification.
• We do not expect any departure from this
  prudent and primarily profit-oriented strategy
  SP analysis 27/07/2007.
• Strong stability in results.
• RCI Banques overall margins are high and
  reflect its car financing activities Moodys
  analysis 20/11/2007.
• No exposure on US economy, no exposure on
  subprime.
• A cost of risk kept inside target.
• Strong liquidity profile resulting from cautious
  financial policy Moodys views RCI Banques
  liquidity as strong and sufficient to withstand a
  period of stress without significantly affecting
  the banks activities Moodys analysis
  20/11/2007.

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APPENDIX
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Consumer loyalty
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Renewal acceleration

• 2 cycles (14 years)

• 50 increase of renewal rate with RCI
  Financing.
• 100 increase of renewal rate with loyalty
  inducing products Financing.

Cash
RCI Standard credit
RCI Loyalty inducing product
Sce average vehicle holding depending on
payment method - Renewals VN CCX 2004 G5
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Commercial Activity
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No cost of risk evolution noticed during the last
months

• Public management report of RCI Banque ABS show
  no deterioration of the Delinquency and loss
  Ratio of 2 majors credit portfolio since the
  crisis started.

Portfolio Italian Customer Loans.
Recovery means any amount received by the
Servicer in connection with any Defaulted
Receivable.
Full reporting available on http//www.securitisat
ion-services.com (access can be asked on the web
site).
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No cost of risk evolution noticed during the last
months
Portfolio French Customer Loans
Recovery means any amount received by the
Servicer in connection with any Defaulted
Receivable.
Full reporting available on http//www.eurotitrisa
tion.fr (access can be asked to the Management
Company)
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CONTACTS
RCI Banque Finance Division - API MLV 45 14
avenue du Pavé Neuf - 93168 Noisy le Grand Cedex
France CFO Antoine ROUSSELIN Phone 33 1 49
32 80 21 - Fax [phone] Group treasurer
Jean Marc SAUGIER Phone [phone] -
Fax [phone] - Jean-Marc.Saugier_at_rcibanqu
e.com Dealing Room Nicolas DUC 33 1 48 15 75
04 - Nicolas.Duc_at_rcibanque.com Jean Paul LABATE
33 1 48 15 75 04 - Jean-paul.Labate
_at_rcibanque.com Christian DESCH 33 1 48 15 75 02
- Christian.Desch_at_rcibanque.com Nicolas
CHAILLAN 33 1 48 15 75 03 - Nicolas.Chaillan_at_rcib
anque.com Banks Communication Michèle
BELHASSEN 33 1 49 32 82 59 - Michele.Belhassen_at_rc
ibanque.com Alain MEYER 33 1 49 32 69 07 -
Alain.d.Meyer_at_rcibanque.com Thomas HUART 33 1 49
32 68 73 - Thomas.Huart_at_rcibanque.com Reuters
RCIDIAC
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www.rcibanque.com