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Renault Feasibility Study Summary

1st April 2009

#AgendaAim & PurposeSuccess FactorsKSA Passenger car market Renault past performance.Alissa Marketing StrategyOrganization chartChallenges and solutionsFinancialsWhy Renault for Alissa?

#AimAcquire 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.

#Success FactorsRenaultOffering wide range of reliable products that are adapted to KSA environmentProduct test has been conducted in the region for the last 2 years for Passenger cars and Light Commercial VehiclesProfessional and quality standard after sales service to meet the need of the target consumerTechnical 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 Manufacturerfor Trade-in programs to acquire maximum re-sale value.Focused and innovative marketing programs Customer First ProgramUtilizing Alissa expertise in the market place.

#Success Factors ContAlissa

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

Sales strong network with complete infrastructureDistribution attractive customer base through out the kingdomDedicated 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 salesStrong foundation of Customer Relationship Management.Customer financial offering (Leasing, Installment,...etc) for retail and fleet customers, through Al-Yusr and other financial institutionsOperational leasing, Daily rental through BTC and other Rent-A-Car companies.Retail distribution channels through Autostar and other sub-dealers.

#All of this is supported by 5

KSA Passenger car marketLow 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.

#Passenger car Market share/brand 20083.9%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

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Passenger car growth analysis / brand 2008 VS 200721%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

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Subcompact cars growth analysis 2007 vs 200810%-1%91%59%23%4%7% Subcompact cars sales are growing in all brands. Yaris is growing 24% in 2008

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2.4 cc cars growth analysis 2007 vs 200820%19%-23%-63%-4%16%

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0.47%1.33%1.27%1.39%0.97%Renault Market share forecast (assuming market growth at 3%)

#Koleos Market Share Forecast1.67%4.15%5.15%5.4%5.67%

#Safrane Market Share forecast0.59%1.39%1.59%1.66%1.75%

#Logan Market Share Forecast1.22%2.87%3.57%3.81%3.92%

#Megane Market Share forecast0.24%0.54%0.67%0.71% 0.74%

#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)

1st April 2009

#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)

1st April 2009

#Sales Growth Forecast summary / units43%90%80%34%8%8%

#Price Comparison

303540455055607080901.3 1.6ccToyotaNissanHondaRenaultHyundaiMazdaChevroletMitsubishiCitronPeugeotDaihatsu

YarisCorolla

CamryGetz

Logan PE

Megane 1.6Mazda 3Aveo

Sirion

Retail price (kSR)

civic

Tiida1.3 1.6 cc

1.6 2.0 cc

2.0 2.4 ccLogan Se

2.0 2.7 cc1.6 -2.0 cc

2.5 4x4Rav4Santa fiKoleosKoleos 4x2

AccordMazda 6

Sonata

Safrane

Safrane

Safrane

Epica

Lancer

Megane 2.0

LCV

LCV

LCV

LCV

#PAR AJ5 01-09-04 Dubai Presentation (sans photos)Sources: AAC

Renault Current Performance overview in KSALow 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.

#Alissa Renault Marketing Strategy in KSARe-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.

#Market SegmentationRetailYouth: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.FleetRent-A-car companies: Operational leasing, and daily rental.Firms: Which purchase cost-effective cars, atlow servicecostand low price.Government: ministries, police, civil defense and healthcare sector.....etc.Sub-dealers

#Promotion strategyTactical campaigns to create demand and expand sales.Above the line activities.Newspaper advertisement, prints , banners, brochures. E-marketing activities.Radio spotsOutdoor marketing activities.Below the line activities.Direct mail for fleet customersPersonal promotion.Sales promotion. seasonal offersPublic relation activities:A press release kit will be sent to all major media outletsinSaudi Arabia,highlighting:What is Renault?New Renault products.After sales service facilities in Saudi Arabia. Events: launching, fleet events.etc.

#Distribution StrategyStart up:4 dedicated showrooms for Renault2 In Riyadh "Khorais Road (main Auto Market) and Al Shifa areaShifa Showroom will be opened in 20101 In Dammam "Auto mall1 in Jeddah "Madina Road"12 Autostar showrooms kingdom wideDedicated branded area for Renault vehicles in Hubtowns. 8 Autostar workshops kingdom wide withdedicated reception area for Renault.More than 35 parts outlets kingdom wide.

#Geographic Coverage

*************Renault presentationRenault existence

1st April 2009

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Used car sales12 Autostar used car centers kingdom wide.FinancingRetail and fleet financing facilities through our sister Company Al Yusr.Operational leasing and daily rental through our sister company BTC.Distribution Strategy Cont

#Distribution Strategy ContFuture expansion:When sales volume exceeds 10,000 units per annum3S facilities dedicated for Renault in the 3 main citiesOpening 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.

#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.

#Organization Chart

#Challenges & SolutionsChallengeThe Bad brand image in the market

SolutionRe-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 marketOwns 44% of NISSAN worldwide.French design, Japanese technologyNew Era for Renault products to cope with GCC requirements.

#Challenge Perception of low service quality

SolutionRe-launch Customer First program for service.Communicate the new wide network of service workshops kingdom wide:Nowyou can serve your Renault in 8 workshops kingdom wide and moreCRM to ensure high customer service for Renault users.Challenges & solutions Cont

#ChallengePerception of expensive and non-availability of parts

SolutionCommunicate 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

#ChallengeLow re-sale value.

SolutionLaunch Trade In campaign with special financial support by manufacturer.Extended warranty for used car.Challenges & Solutions Cont

#P&L statement With average GP% (8.7%)Total Sales20092010201120122013Units Sold19014925659971297708 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

#Balance Sheet With average GP% (8.7%)20092010201120122013ASSETSCurrent AssetsTotal Current Assets 98,218,269 109,058,680 114,489,148 127,345,061 148,124,382 Non-Current AssetsTotal 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 & EQUITYCurrent LiabilitiesTotal Current Liabilities 78,666,527 81,667,161 73,933,032 71,970,713 76,235,294 Non-Current LiabilitiesTotal 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

#Ratios With average GP% (8.7%)20092010201120122013Efficiency Gross Margin % 8.76%8.72%8.72%8.79%8.76% Inventory Turnover - Months 2.592.712.162.162.40 Collection Ratio - Months 4.63.02.22.01.9 Operating Cycle Period - Months 6.154.693.363.203.28Debt Management Bank Debt to Equity 1.71.40.70.40.2 Total Debt to Equity 3.632.951.871.381.15 Total Debt to Assets 0.780.750.650.580.53Liquidity Management Current Ratio 1.251.341.551.771.94 Quick Ratio 0.750.680.760.900.96 Total Debt to Current Assets 0.810.760.660.580.53Return 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%

#P&L statement With average GP% (7%)Total Sales20092010201120122013Units Sold19014925659971297708 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

#Balance Sheet With average GP% (7%)20092010201120122013ASSETSCurrent AssetsTotal Current Assets 97,575,237 107,549,782 112,449,634 124,741,906 144,636,763 Non-Current AssetsTotal 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 & EQUITYCurrent LiabilitiesTotal Current Liabilities 79,445,657 86,252,206 83,586,751 87,227,224 97,825,272 Non-Current LiabilitiesTotal 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

#Ratios With average GP% (7%)20092010201120122013Efficiency Gross Margin % 7.23%7.09%7.10%7.16%7.14% Inventory Turnover - Months 2.592.712.162.162.40 Collection Ratio - Months 4.63.02.22.01.9 Operating Cycle Period - Months 6.154.693.363.203.28Debt Management Bank Debt to Equity 1.92.01.31.00.8 Total Debt to Equity 3.933.962.972.492.28 Total Debt to Assets 0.800.800.750.710.70Liquidity Management Current Ratio 1.231.251.351.431.48 Quick Ratio 0.730.620.650.710.71 Total Debt to Current Assets 0.820.810.750.720.70Return 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%

#Net profit Forecast SR/M

#ROCE Forecast SR/M

#Why Renault Franchise for AlissaRenault 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

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