Renault - Fiscal Year 2005

DOC COUV R.A. 2005 GB.
qxd 21/03/2006 17:52 Page 1

Conception et réalisation : alliance design
Key figures 2005

Worldwide sales: 2,533,428 vehicles
Revenues: S41,338 million
Operating margin: S1,323 million
Net income (Renault share): S3,367 million
Dividend per share: S2.40(1)
Workforce: 126,584
(1) Subject to decision of Annual General Meeting on May 4, 2006.

2005 RENAULT ANNUAL REPORT
AR 2005 EN
2005 ANNUAL REPORT

Egeus – a concept car showcasing Renault's creative flair.
DOC COUV R.A. 2005 GB.qxd 21/03/2006 17:58 Page 1
Key figures 2005

Worldwide sales: 2,533,428 vehicles
Revenues: S41,338 million
Operating margin: S1,323 million
Net income (Renault share): S3,367 million
Dividend per share: S2.40(1)
Workforce: 126,584
(1) Subject to decision of Annual General Meeting on May 4, 2006.
RT
Egeus – a concept car showcasing Renault's creative flair.

Key figures 2005

Automobile market - Europe / Rest of the world (millions of units) Simplified structure of the Renault group at December 31, 2005
2001 2002 2003 2004 2005 15%

Nissan Renault
Europe (*) 17.7 17.2 17.1 17.5 17.5
Rest of the world 38.0 38.9 40.3 42.9 45.2 44.3%
AB Volvo Renault
Trucks/Mack
Group market share (%) 20% 100%
Renault
Dacia Samsung
2001 2002 2003 2004 2005 70.1% Motors
Europe (*) 11.1 11.3 11.1 10.8 10.4 99.4%

Passenger cars 10.6 10.7 10.6 10.2 9.8
Light commercial vehicles 15.0 15.6 14.9 14.8 14.4
Renault share performance from December 31, 2001 to December 31, 2005 (e)
Group sales worldwide (units)

CAC 40 and DJ Euro Stoxx Auto indexed on Renault share price at December 31, 2001 (e39.61).
Annual change Renault share + 13.1% + 22.2% + 12.5% + 11.9%

2001 2002 2003 2004 2005 80
70
Europe (*) 2,000,368 1,974,098 1,922,019 1,922,275 1,845,048
Rest of the world 412,255 431,010 466,411 568,062 688,380 60
In 2005 50
Worldwide 2,412,623 2,405,108 2,388,430 2,490,337 2,533,428
Passenger cars 2,074,546 2,063,834 2,055,779 2,108,832 2,141,248 40
Renault: + 11.9%
Light commercial vehicles 338,077 341,274 332,651 381,505 392,180 30
DJ Euro Stoxx Auto: + 19.9%
20
CAC 40: + 23.4% January April July October January April July October January April July October January April July October January
Group sales outside Europe (*) 2002 2003 2004 2005
Year-end price 44.78 54.70 61.55 68.90
High 57.45 60.30 70.40 82.45
2001 2002 2003 2004 2005 Low 34.60 29.51 51.35 61.30
(%) 17.1 17.9 19.5 22.8 27.2
Renault’s share price rose 11.9% to e68.90 at December 31, 2005 against a sluggish economic backdrop caused by macroeconomic uncertainties and
(*) Western and Central Europe.
lackluster market conditions in Europe. The share, however, did not perform as well as the CAC 40 or the European auto sector indexes.
Revenues Operating margin Net income - Renault share Dividend per share Workforce(1)
3 million 3 million 3 million 3 at December 31, 2005
41,338
40,000 37,525 40,292 3,750 3 200,000
36,351 36,336 2,500 3,367
2,115 2.40 (1)
3,000 2,836
30,000 2,000 150,000 137,108 127,864
2,480 2 1.80 125,128 126,584
60.8 61.7 64.5 65.4 67.2 1,483 1,402 1,323 2,250 124,277
1,500
20,000 1,956 1.40 100,000
1,000 1,500 1.15
1 0.92
10,000 473 1,051 50,000
500 750
39.2 38.3 35.5 34.6 32.8
0 0 0 0 0
2001 2002 2003 2004(1) 2005 2001 2002 2003 2004(1) 2005 2001 2002 2003 2004(1) 2005 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
Foreign revenues (%) Domestic revenues (%) (1) Excluding employees under early retirement plan
(1) 2004 data restated to IFRS. (1) 2004 data restated to IFRS. (1) 2004 data restated to IFRS. (1) Subject to decision of Annual General Meeting of May 4, 2006. (6,247 at December 31, 2005).
Simplified structure of the Renault group at December 31, 2005
15%
Nissan Renault
44.3%
AB Volvo Renault
Trucks/Mack
20% 100%
Renault
Dacia Samsung
70.1% Motors
99.4%
Renault share performance from December 31, 2001 to December 31, 2005 (e)
CAC 40 and DJ Euro Stoxx Auto indexed on Renault share price at December 31, 2001 (e39.61).
Annual change Renault share + 13.1% + 22.2% + 12.5% + 11.9%

80
70
60
In 2005 50
40
Renault: + 11.9%
30
DJ Euro Stoxx Auto: + 19.9%
20
CAC 40: + 23.4% January April July October January April July October January April July October January April July October January
2002 2003 2004 2005
Year-end price 44.78 54.70 61.55 68.90
High 57.45 60.30 70.40 82.45
Low 34.60 29.51 51.35 61.30
Renault’s share price rose 11.9% to e68.90 at December 31, 2005 against a sluggish economic backdrop caused by macroeconomic uncertainties and
lackluster market conditions in Europe. The share, however, did not perform as well as the CAC 40 or the European auto sector indexes.
Dividend per share Workforce(1)

3 at December 31, 2005
3 200,000
367
2.40 (1)
150,000 137,108 127,864

2 1.80 125,128 126,584
124,277
1.40 100,000
1.15
1 0.92
50,000
0 0
005 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
(1) Excluding employees under early retirement plan

(1) Subject to decision of Annual General Meeting of May 4, 2006. (6,247 at December 31, 2005).
EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:44 Page 1
Contents
Contents
2005 in pictures 2
From the President and CEO 4
Renault Commitment 2009 6
Corporate governance 12
Management team 16
Renault shareholders 18
A dynamic lineup 20
Concept cars 22
Market launches 24
Passenger cars 26
Powertrains 29
Light commercial vehicles 30
The vehicle range 32
A competitive international group 34

Research and development 36
Production prowess 38
Quality first 40
Purchasing 42
The sales network 44
Parts and accessories 46
Sales financing 48
Formula 1 50
Renault Sport Technologies 52
Equity interest in AB Volvo 53
The Renault-Nissan Alliance 54

Structure, operations and Vision - Destination 56
Cooperation and synergies in engineering 58
Cooperation and synergies in manufacturing 59
Cooperation and synergies in sales and marketing 60
Nissan in 2005 62
Combined performance of the Alliance 64
Sustainable development 66
What Renault stands for 68
The environment 70
Human resources policy 72
Societal initiatives 74
Sales performance and financial results 76

Sales performance 78
Financial performance and outlook for 2006 82
Renault’s 2005 Annual Report is supplemented by the Registration Document, filed with the French securities regulator,
the “Autorité des Marchés Financiers”, and posted on www.renault.com/Finance.
2005 Renault Annual Report 1

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:44 Page 3
Engine
2005 in pictures
In summer 2005, Renault unveiled the first diesel Offering a winning combination of performance
engine developed through its Alliance with Nissan, and driving pleasure, the new engine will in time equip
the 2.0 dCi, available in 150hp and 175hp versions. Mégane, Scénic, Laguna, Vel Satis, Espace and Trafic.
Clio III
Renault's new standard-bearer in the sub-compact

category, the roomy Clio III went to market in summer
2005. Confirming Renault's leadership in safety with
a top five-star rating in Euro NCAP crash tests, Clio III won
deserved recognition with the Car of the Year 2006 title
awarded by a jury made up of 58 auto journalists from 22
European countries.
Champions
Just four years after its return to Formula 1, Renault

swept the field in 2005, taking the Constructors'
World Championship on October 16 three weeks
after Fernando Alonso stormed to victory in the Drivers'
World Championship. Renault is the first volume
manufacturer in history to become world champion
with a car designed fully in-house.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:44 Page 2
2005 in pictures
President and CEO
2005 was an historic year

for Renault as Carlos Ghosn
took over from Louis
Schweitzer. The year also
saw continued
international expansion,
with Logan going into
production in Russia,
Morocco and Colombia
and an agreement signed
for production in India.
Two major product
launches were in the Following the Annual General Meeting of April 29, 2005,
headlines – the 2.0 dCi the Board of Directors appointed Carlos Ghosn
engine setting new President and CEO, while Louis Schweitzer remained
standards for performance Chairman of the Board of Directors without executive
and driving pleasure, responsibilities – a smooth changeover that won wide
and Clio III, Car of the Year recognition for harmonious relationships in the business.
2006. Finally, 2005 was
a vintage year in Formula 1,
with an almost perfect
season for the Renault F1
Team, winner of the Drivers'
and Constructors' World
Championships.
Logan
Logan made its debut on

the fast-growing Russian
market at the end of summer.
The Avtoframos factory
in Moscow came on stream
in April, making Russia the
second country after Romania
to host production of the
vehicle.
India
On March 21, 2005 representatives of Renault

and Mahindra & Mahindra Ltd. met in Bombay
for the signature of an agreement establishing
a framework for an Indian joint venture – Mahindra
Renault Ltd. – of which Mahindra is to hold 51%
and Renault 49%. The agreement calls for production
and sales of Logan in India to get under way in 2007.
2 2005 Renault Annual Report

EXE R.A. 2005 (1-92) GB.qxd 22/03/2006 15:40 Page 4
From the President and CEO
For Renault, 2005 was a year of transition. On April 29, Twenty-six new models will be launched during the plan.
you entrusted me with the task of carrying on from Louis Renault Commitment 2009 means mobilizing all our
Schweitzer, to whom I would once again like to pay forces in the service of three commitments – quality,
tribute for his work at the head of the company. profitability and growth.
Since then, I have rediscovered the company by listening - Quality is both our first duty to our customers
to as many of our staff members as possible at all levels, and the first commitment of the plan.The future Laguna
in all areas of operation and all over the world. will embody this commitment by ranking among
This extensive review reinforced my conviction the top three cars in its segment for product
that Renault has enormous potential. It provided and service quality. The progress achieved will be
an opportunity to make an in-depth, lucid diagnosis applied with the same diligence across the entire range.
of our position, drawing on collective contributions. - Profitability is the second commitment. We will raise
From this diagnosis, we decided the strategy our operating profit margin to 6% of revenues
of the company, developed a new product plan through unwavering efforts to contain costs
and prepared action plans for the future. and expand our product offering. Renault’s short-,
2005 was also a year of mixed fortunes for Renault, medium- and long-term management will be focused
with undeniable successes but also some difficulties on customers and driven by profit.
in the second half. Successes included highly promising - Our third commitment is to sell an additional
international development, buoyed in particular by Logan, 800,000 units in 2009 as compared to 2005.
which proved an immediate winner on all its markets. Our ambitious growth objective will be achieved
Alongside our partner Nissan, we made concrete by reinforcing the product range and making
progress exemplified by the launches of the Alliance’s significant progress in quality and technology. This drive
first engine, the 2.0 dCi, and the TL4 gearbox. will be supported by technological advances
The double Formula 1 World Championship title achieved through the synergies generated with Nissan
demonstrated Renault’s capacity to react rapidly in the Alliance. We are preparing a full range
and join forces to achieve breakthrough performances, of alternative technologies to reduce fuel consumption
as did the acclaim given to New Clio, named Car of the and CO2 emissions. We will also continue
Year 2006. But with competition in Europe fiercer to innovate in passive safety to consolidate
than ever and given the current stage in our product our European leadership in this field. Sustainable
cycle, our European sales fell 7.3% in the second half development is central to our strategy as well,
and our full-year operating profit margin declined. reflecting our concern for the protection of people
The contributions of Nissan and Volvo nevertheless led and the environment, a core value of the company.
Renault to post record net income, up 18.7% to set The commitments made in this plan are fully transparent,
earnings per share at 513.19. and I will give you regular reports on the progress made.
Renault is not in crisis, but remains fragile. Without As shareholders, you have a stake in the success
a strong response in the right direction to make of the company, and we are aiming for a linear
our performance more robust, our vulnerability could lead and significant increase in our dividend to 54.50 in 2009.
to a more dangerous, and therefore unacceptable, situation. You can count on the dedication of the men and women
The year ahead of us will be decisive. The business in our company who will be putting all their talent
environment is difficult and we will be bringing only two and conviction to work to make Renault – in the framework
new models to market. But it will also be a beginning of the Alliance – a great company with a sustainable,
as we lay the groundwork for future vehicles and deploy high performance in the global automotive industry.
our mid-term business plan – Renault Commitment 2009.
This growth plan aims to make and sustain Renault as
the most profitable European volume car company.
To achieve this ambition, we will take the offensive
with a product drive that is unprecedented in the history
of Renault.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:44 Page 5
From the President

and CEO
Carlos Ghosn
Renault President and CEO

EXE R.A. 2005 (1-92) GB.qxd 22/03/2006 15:44 Page 6
Renault Commitment 2009

Three commitments
Renault Commitment 2009 Position the next Laguna, which will be launched Sell an additional 800,000 units in 2009
aims to make and sustain in 2007, among the top three models in its as compared to 2005
Renault as the most profitable segment in terms of product and service quality Consolidation and expansion of the lineup combined
European volume car company. Independent organizations will be charged with measuring with significant progress in quality and technology
It is based on three major success in terms of attractiveness, reliability, durability will drive sales growth representing an additional
commitments. and customer satisfaction with sales and services in 800,000 units from 2005 to 2009. Renault's sales
Renault’s showrooms and repair shops. Laguna will be outside Europe will grow from 27% of total sales
the standard-bearer for quality. The progress in 2005 to 37% in 2009, an increase of 80%.
made on this product will be applied with the same
diligence to the rest of the lineup throughout the world.
Growth commitment
Achieve an operating profit margin of 6%
in 2009
This achievement – which will be a record for Renault –
will be surpassed the following year. It will make
and sustain Renault as the most profitable European
volume car company, comparing as it does with the 3.6%
average posted by major automakers in 2005.
In the industry, there are the winners with margins over 6%
and growing market share, and those that are destroying
value with margins under 2% and declining market
share. Renault is currently in the middle, with
performances since 1999 sometimes placing it in one
group, sometimes in the other. The goal is thus to ensure
that Renault consistently counts among the winners.
Profitability commitment
▼
▼
Renault Commitment 2009:

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:44 Page 7
Renault Commitment
2009
Members of the Group Executive Committee at the announcement of Renault Commitment 2009.
Left to right: Thierry Moulonguet, Michel de Virville, Michel Gornet, Carlos Ghosn, Patrick Pélata, Patrick Blain and Jean-Louis Ricaud.
Target dividend growth
The robust growth and high operating profit margin Dividend proposal
Renault is committed to will offer scope for a significant
increase in the dividend. The Board of Directors will be
asked to put a resolution to the Annual General Meeting
calling for a linear rise in the dividend.
The objective in 2009 is 54.50 per share, compared
with 51.80 in 2005.

EXE R.A. 2005 (1-92) GB.qxd 22/03/2006 15:46 Page 8

An unprecedented product offensive in Renault's history
As the focus of Renault's Renault will launch 26 new products over the duration Motors cars, among them the future Laguna, will be
commitment to quality, of the plan – two in 2006 and an average of eight a year targeting this segment, with the last three to be rolled
the new Laguna will spearhead from 2007 to 2009. The average age of Renault models out in 2010. As a result, sales of cars priced above
an unprecedented offensive sold in Europe will drop from 3.8 years in 2005 to 2.2 527,000 – the usual threshold defining the top of
for the expansion and renewal years in 2009. Half of the 26 new models will renew the market – will double.
of the product lineup starting current offerings and the other half will expand - Thirdly, Renault will launch innovative and relevant
in 2007 to achieve the lineup. SUVs, 4x4s, crossovers and niche vehicles with
the objectives defined But quality rather than quantity will be the key to renewal, targeted appeal in the middle as well as at the top
in Renault Commitment 2009. with products better focused on customers' needs of the range;
and aspirations. The goal is to offer customers, - Fourthly, Renault will develop products to support
everywhere in the world, cars that are more appealing, growth in markets outside Europe. Several new
more relevant and more Renault. models will be developed on the Logan platform,
Focus on customers means focus on quality, plus three for the domestic market in Korea and
and, importantly, the quality campaign that began in 2002 exports from that country. Renault will also launch
got new impetus with the Renault Excellence Plan in 2005. at least five cars in Latin America during the plan.
The results speak for themselves: Modus is in the top By taking customer expectations as the primary source
third of its segment for quality, and first indications show of inspiration for all decisions, Renault intends to excel
that New Clio is doing even better. in bringing clever solutions to customers' rational needs
On this basis, the product offensive will result in and also to their emotional desires.
widening the lineup in four directions: In the same spirit, the company is considering ways
- Firstly, Renault will creatively and rigorously renew to reinforce the Renault brand and regain the sort
the pillars of the existing range – the Mégane family, of recognition won in the 1980s and 1990s with cars
Twingo, Kangoo and Master; like Espace, Twingo and Scénic.
- Secondly, the company will develop a luxury range. To achieve that, the Renault brand must again carry a
Altogether eight new Renault and Renault Samsung promise of warmth, practical intelligence and joie de vivre.
Renault's new Clio III was voted

Car of the Year 2006.

EXE R.A. 2005 (1-92) GB.qxd 22/03/2006 15:49 Page 9
Renault Commitment
2009
▼
▼
Product plan 2006-2009: 26 new models
The Altica concept car

combines the styling of a station wagon
Among the world's top three for CO2 with high standards of traveling comfort.
emissions
Renault will be backing up its product offensive By then, all Renault diesel engines will also be able to
with continuous efforts to develop technologies, drawing run on 30% diester*. The first biofuel cars will be
support from the Alliance with Nissan. The company will launched at the end of 2006.
pursue innovation in passive safety – in order to maintain Today, Renault already ranks among the top three
its leadership position in Europe – as well as fuel European automakers for fuel economy and CO2
economy and CO2 emissions. Within the Alliance, emissions. In 2004, one out of every four cars sold
Renault is preparing a full range of alternative in Europe emitting less than 120g/km was a Renault.
technologies, such as hybrids, fuel cells, electric The company will maintain that position over the next
vehicles and continuously variable transmissions. four years. By 2008, Renault will sell 1 million cars
In France, by the end of the plan, Renault fuel cell emitting less than 140g/km of CO2, of which one-third
vehicles equipped with the latest Alliance technologies will be below 120g/km.
will be tested. * Diester is a fuel obtained from vegetable or animal oil.
At the same time, efforts will continue to optimize
traditional powertrains. Today, biofuels offer the most
effective way of reducing CO2 emissions. Based on Renault: efficient lineup in fuel economy
Renault’s existing flex-fuel technology on sale in Brazil, 50% and CO2 emissions
of its gasoline-powered engines sold in Europe in 2009 will
be able to operate with a mixture of gasoline and ethanol.
Renault will continue to optimize traditional powertrains.

KAMA: Korean Automobile Manufacturers Association
JAMA: Japan Automobile Manufacturers Association
ACEA: European Automobile Manufacturers Association

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 10

Mobilizing resources for success
Renault will be continuing Renault is aiming for a significant reduction of all costs Vehicle and powertrain engineering are central to the plan,
its drive to enhance between now and 2009. Objectives include reducing both in developing the number of products and
competitiveness with a cost purchasing costs by 14% in three years technologies but also in sourcing them from
reduction program and manufacturing costs by 12% in four years, with the company’s global production sites. In order to achieve
and optimized investments, the latter to be achieved mainly through productivity gains this while containing costs, engineering will
drawing support and an increase in the capacity utilization rate from be partially decentralized to Renault’s major
from synergies with Nissan 60%* in 2005 to over 75% in 2009. manufacturing sites in Romania and Korea. Renault
through the Alliance. Logistics costs will come down 9% over four years will also reinforce its engineering presence in Brazil.
despite very high energy prices that erode productivity Furthermore, engineering’s reactivity will be fueled
gains, with improved international performances a main by improved internal processes and by a 20% reduction
focus. General and administrative costs will be reduced in the number of parts per program. Globally,
from 5.1% of revenues to less than 4% by the end engineering headcount will increase by 3,000 people.
of the plan. All support functions are committed However, R&D expenses and investments will not exceed
to achieving world-class performance as measured 11.5% of revenues in the period from 2006 to 2009.
by an independent global benchmarking firm. Beyond Renault’s own efforts, the company will
Total distribution costs per unit, including incentives, obviously benefit fully from the synergies that it has
are to come down 8% in Europe. This reduction will be developed with Nissan in the Alliance – sharing
achieved in part through an enhanced brand, platforms, powertrains, interchangeable components
an enriched product plan, and a focus on more and common purchasing through the Renault-Nissan
profitable distribution channels, such as retail sales. Purchasing Organization. This will be an important factor
in moves targeting segments such as 4x4s, crossovers
In addition to these operating cost reductions, Renault
and sports vehicles that are new for Renault. In this,
will optimize the cost of its investments. The objective
as in other areas, the Alliance will make a significant
is to reduce the cost of investments by 50% to reach
contribution to the achievement of Renault Commitment
the best level in the automotive industry. It is not
2009.
a question of halving investments; rather it is a question of
doing twice as much with the same amount. The plan is
* Renault’s standard capacity utilization rate is calculated on the basis
ambitious, but Renault will concentrate its investments of a full capacity rate of 5,000 hours per year. This rate is more
on its core business – anything that is not core is open demanding than the one usually reported by the industry, which runs
to outside partnerships. between 3,760 to 4,000 hours per year.
▼
▼
Resources to achieve Renault Commitment 2009

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 11
Cross-functional management focused on customer satisfaction and driven by profit

Renault Commitment
2009
Renault Commitment 2009 structures management A third key point is program management. Program
around regions, functions and programs. The resulting directors will be responsible and accountable for their
cross-functional organization places customers at the heart vehicle’s contribution to the company’s profitability in all
of decision-making processes and calls for greater markets during every stage in the vehicle lifecycle,
emphasis on profit as the only indicator that shows including associated services such as aftersales
whether Renault is doing its job well. and financing.
There are five regions: the Americas, Asia-Africa, Program management supports the optimization
Euromed, Europe (outside France) and France. Each of customer value for each vehicle. Renault has put
is headed by a Regional Management Committee (RMC) various processes in place so that the customer’s voice will
presided by a Leader belonging to senior management, be acted upon from the first ideas right on through each
while RMC members represent all functions on all market milestone of the project.
segments in the countries concerned. RMCs Finally, 11 Cross-Functional Teams (CFT) further
are responsible and accountable for their region’s reinforce cross-functional management. Counting 500
contributions to the company's profitability. This new employees from all functions, CFTs have each been
management structure means that decisions will be taken assigned responsibility for a major topic, such
as close as possible to the field to ensure that as business development, competitiveness, or speed
Renault’s products and services are adapted to the needs and simplicity.
of customers everywhere in the world.
Their common goal is to help raise overall profitability,
A second important change is globalized functions, such measuring the results achieved by each function and in each
as engineering, sales and manufacturing. International area of operation against the best performances
development now concerns all the functions of the and practices worldwide to provide continuing
company. Their representation in the Regional incentives for improvement. Their work has identified
Management Committees ensures that they make a full a potential operating profit improvement of 51 billion,
contribution to operations on all Renault’s of which less than one-third is factored into Renault
markets. Each function is responsible and accountable Commitment 2009.
for its performance globally.
Each Cross-Functional Team works on a major topic, such as business development or competitiveness.

EXE R.A. 2005 (1-92) GB.qxd 22/03/2006 15:50 Page 12
Corporate governance
Board of Directors at December 31, 2005
Louis Schweitzer Carlos Ghosn Yves Audvard

Chairman of the Board President and CEO Renault Advanced Process Design Engineer
Chairman of the Appointments President and CEO, Nissan Motor Co., Ltd. Director elected by employees
and Governance Committee President of the Alliance Board Member of the International Strategy
Age 63 and Renault Nissan b.v. Committee
Age 51 Age 53
Number of shares: 87,845 Number of shares: 1,700 Number of shares: 6

and 4,578 ESOP units Date of first term: April 2002 and 82 ESOP units
Date of first term: May 1992 Current term expires (AGM): 2006 Date of first term: November 2002
Current term expires (AGM): 2009 Current term expires (AGM): 2008
Michel Barbier Alain Champigneux François de Combret

Renault Working Conditions Technician Document Manager, Quality Department Senior Advisor to Union de Banques
Director elected by employees Director elected by employees Suisses
Member of the International Strategy Member of the Accounts and Audit Member of the Remuneration
Committee Committee Committee
Age 50 Age 52 Age 64
Number of shares: 141 Number of shares: 497 ESOP units Number of shares: 1,000
Date of first term: November 2002 Date of first term: November 2002 Date of first term: July 1996
Current term expires (AGM): 2008 Current term expires (AGM): 2008 Current term expires (AGM): 2008
Charles de Croisset Jean-Louis Girodolle Itaru Koeda

Vice Chairman, Goldman Sachs Europe Inspector of Finance and Deputy Director, Co-Chairman of the Board of Directors
Independent Director Treasury & Economic Policy Department, and Executive Vice President of Nissan
Ministry of the Economy, Finance and Industry
Member of the Accounts and Audit Member of the Accounts and Audit Motor Co., Ltd.
Committee Committee Age 64
Age 62 Age 37
Number of shares: 1,000 Number of shares: none(1) Number of shares: 500

Date of first term: April 2004 Date of first term: October 2003 Date of first term: July 2003

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 13
Marc Ladreit de Lacharrière Dominique de La Garanderie Bernard Larrouturou

Chairman and Chief Executive Officer, Attorney, former Chair of the Paris Bar Managing Director, CNRS
Fimalac - Independent Director Association - Independent Director Member of the International Strategy
Member of the Remuneration Member of the Accounts and Audit Committee
Committee and the Appointments Committee and the Appointments and Age 47
and Governance Committee - Age 65 Governance Committee - Age 62
Number of shares: 1,020 Number of shares: 150 Number of shares: 1(1)

Date of first term: October 2002 Date of first term: February 2003 Date of first term: February 2000
Henri Martre Jean-Claude Paye Franck Riboud

Honorary Chairman, Aérospatiale Attorney Chairman and Chief Executive Officer,
Independent Director Independent Director Danone Group - Independent Director
Chairman of the International Strategy Member of the Accounts and Audit Chairman of the Remuneration
Committee Committee and the International Committee
Age 78 Strategy Committee - Age 70 Age 49
Number of shares: 328 Number of shares: 20 Number of shares: 331

Date of first term: July 1996 Date of first term: July 1996 Date of first term: December 2000
Georges Stcherbatcheff Robert Studer

Renault Representative for Industry-wide Former Chairman, Union de Banques
Standardization Suisses
Director elected by employees Independent Director
Member of the International Strategy Chairman of the Accounts and Audit (1) Civil-service regulations prohibit these Directors,
Committee - Age 59 Committee - Age 67 as representatives of the French state,
from owning company shares.
Number of shares: 2,167 ESOP units Number of shares: 1,000

Date of first term: April 2004 Date of first term: July 1996
Current term expires (AGM): 2009 Current term expires (AGM): 2007

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 14
Activities of the Renault Board of Directors
The Board met eight times in 2005. At each meeting, Group strategy
senior management gave a review of financial, sales, The Board reviewed progress on the strategic goals
manufacturing and technical items for all the company's defined in the three-year plan for 2005-2007
businesses and answered questions from members and considered the management report on the state
of the Board. Main items discussed were as follows. of business that is to provide the basis for the plan
presented in 2006. On the same occasion, it reviewed
Accounts and budget organizational projects under way.
The Board adopted the 2004 consolidated full-year The Board authorized the President and CEO to make
and half-year financial statements and set the dividend an offer for the purchase of minority interests in Renault
to be proposed to the Annual General Meeting. It also Argentina SA. It examined financing for the Technocentre,
examined the impact of the switch to International as well as quality policy and the place of Logan in the Group's
Financial Reporting Standards (IFRS) on consolidated international strategy.
financial statements for 2004. The Board approved plans for a site in India and was
The Board adopted the 2006 operating and investment informed of progress on projects for Iran and China.
budget.
Alliance
Corporate governance The Board was apprized of the decisions and proposals
In 2005 Renault separated the position of Chairman of the Alliance Board. It authorized the President
of the Board of Directors and that of President and CEO and CEO to sign documents for the establishment
as announced, with Louis Schweitzer taking up the former of the Alliance as amended to reflect changes in governance
position and Carlos Ghosn the latter. The Board also set at Renault.
up two separate committees, one responsible
for Appointments and Governance and the other
for Remuneration, to replace the former Appointments
and Remuneration Committee.
The Board conducted a simplified self-evaluation
of its operations, confirming the positive findings
of the 2004 audit. It also adopted the Chairman's report
on internal control.
▼
▼
Audit of the Board

of Directors
• On December 13, 2005 the Board of Directors conducted a simplified self-evaluation of structure, organization and operating
procedures. This followed up the detailed assessment conducted in December 2004, a procedure repeated every three years.
• The self-evaluation confirms the positive findings of 2004, with directors recognizing the quality of the organization
and its operation. They referred in particular to the frequency of meetings, the relevance of agendas and the background
documentation supplied, the quality of deliberations and respect for confidentiality. The presence of independent directors
and that of directors representing employees were their main reasons for satisfaction with the composition of the Board.
• Areas for improvement were nonetheless identified. Recommendations included more regular information between Board
meetings, more detailed information on competition and competitors, greater involvement of the Board in Alliance strategy,
and an annual Board review of risk based on proposals from the Accounts and Audit Committee.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 15
Annual General Meeting of Shareholders

Activities of the Board Committees on April 29, 2005.
Since its meeting of April 29, 2005, the Board of Directors The Appointments and Governance Committee
has counted four specialized committees. Chaired by Louis Schweitzer, the Committee's two other
members are Marc Ladreit de Lacharrière and Dominique
The Accounts and Audit Committee de La Garanderie, both independent directors. In 2005,
the Committee met twice and its principal concerns
Chaired by Robert Studer, the Committee's other
included the composition of the Board of Directors,
members are Alain Champigneux, Charles de Croisset,
the Board's new internal regulations reflecting changes
Dominique de La Garanderie, Jean-Louis Girodolle
in governance and reorganization of independent
and Jean-Claude Paye. Four are independent directors.
directorships on the basis of criteria set out in the joint
In 2005, the Committee met four times and reviewed
report of business associations AFEP and MEDEF.
consolidated financial statements and the single-entity
financial statements of Renault SA for 2004 and the first
half of 2005, considering the methods applied for the switch The International Strategy Committee
to IFRS for 2004 consolidated financial statements, Chaired by Henri Martre, the Committee's other
together with the financial impact of the change. It also members are Georges Stcherbatcheff, Yves Audvard,
considered the dividend to be proposed in respect Michel Barbier, Bernard Larrouturou, and Jean-Claude
of the 2005 financial year, fees of Statutory Auditors Paye, of whom two are independent directors. In 2005,
and their organizations, the internal audit plan and Group the Committee met once to consider Renault's position
taxation management. in China and the Mercosur countries, as well as the Logan
program.
The Remuneration Committee
Chaired by Franck Riboud, the Committee's two other
members are François de Combret and Marc Ladreit
de Lacharrière. All three are independent directors. In 2005,
the Committee met twice and considered the stock
option program for the year, as well as the remuneration
of the Chairman of the Board, the President and CEO
and members of the Executive Committee.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 16
Management team at February 1, 2006
Group Executive Committee
Carlos Ghosn Patrick Blain Patrick Pélata Michel Gornet

President and Chief Executive Officer, Executive Vice President, Sales and Executive Vice President, Plan, Executive Vice President,
Age 51 Marketing Product Planning and Programs Manufacturing and Logistics
Leader, Europe Leader, Asia-Africa Leader, France
Age 53 Age 51 Age 59
Ecole Polytechnique and Ecole des Mines. Ecole des Mines. Master's Degree Ecole Polytechnique, Ecole Nationale Ecole Polytechnique.
In 1996, after 18 years at Michelin, in Economics. Master of Science, des Ponts et Chaussées. Doctorate from Harvard Business School.
he joined Renault as Executive Vice Stanford University. Joined Renault EHESS. Joined Renault in 1984. Joined Renault in 1968.
President in charge of operations in 1977. Senior Vice President, Market Senior Vice President, Vehicle Engineering Appointed General Manager
in Mercosur countries as well as Area France and member of the Renault Development, and a member of the Billancourt plant in 1986,
Advanced Research, Car Engineering, Management Committee in 1998, of the Management Committee in 1998. then General Manager of the
Car Manufacturing, Powertrain then Senior Vice President, Market Area In 1999, Nissan Executive Vice President, Sandouville plant in 1989. He became
Operations and Purchasing. Europe in 2000. On January 1, 2005, Corporate and Product Planning, Senior Vice President, Manufacturing
In 1999, he was appointed Nissan's he was appointed Executive Vice Design and Programs, and a member in 1994 and joined the Renault
Chief Operating Officer and then President, Sales and Marketing, of the Executive Committee. He was Management Committee at that time.
became the company's President and became a member of the Group appointed Executive Vice President, Plan, Appointed Executive Vice President,
and Chief Executive Officer in 2001. Executive Committee and the Renault- Product Planning and Programs with Manufacturing and Logistics,
President and Chief Executive Officer Nissan Alliance Board. the Renault group and became a member he became a member of the Group
of Renault since May 2005, he remains of the Group Executive Committee Executive Committee on January 1, 2005.
President and Chief Executive Officer on July 1, 2005. He is also a member
of Nissan. of the Renault-Nissan Alliance Board.
Thierry Moulonguet Jean-Louis Ricaud Michel de Virville

Executive Vice President, Executive Vice President, Corporate Secretary General
Chief Financial Officer Engineering and Quality Executive Vice President,
Leader, Americas Age 53 Renault Group Human Resources
Age 55 Age 60
Ecole Nationale d'Administration. Ecole Normale Supérieure, Doctorate in mathematics.

Joined Renault in February 1991 Agrégation in mathematics. Chief Research engineer at the CNRS
as Head of Group Financial Relations, Engineer at the Ecole des Mines. (National Center for Scientific
before being appointed Vice President, Began his career at Cogema. Research). Ministry of Labor (1986).
Controller of Capital Expenditures
in 1996. In 1999, following the signature Joined Renault in early 2002 as Senior Advisor at the Auditor-General’s
of the Renault-Nissan Alliance agreement, Vice President, Quality, and became Department. Joined Renault in 1993.
he joined Nissan Motor in Japan as Deputy a member of the Renault Management Became Head of the Human Resources
Chief Financial Officer. In 2000, he was Committee. He was appointed Executive Department in 1996 and was appointed
appointed Chief Financial Officer Vice President, Engineering and Quality, Corporate Secretary General with
of Nissan and on January 1, 2004, and has been a member of the Group responsibility for the Group’s Human
he became Executive Vice President Executive Committee and the Renault- Resources in 1998. He became a member
and Chief Financial Officer of Renault, as Nissan Alliance Board since January 1, of the Group Executive Committee
well as a member of the Group Executive
Committee. 2005. on July 1, 1993.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 17
Executive Committee and Management Committee

Management team
Carlos Ghosn* Michel Gornet* Jean-Louis Ricaud*

President and Chief Executive Officer Executive Vice President, Executive Vice President,
Manufacturing and Logistics Engineering and Quality
Patrick Blain *
Executive Vice President, Kazumasa Katoh Yann Vincent

Sales and Marketing Senior Vice President, Powertrain Engineering Senior Vice President, Quality
Marie-Christine Caubet Philippe Klein Michel de Virville *
Senior Vice President, Market Area Europe Senior Vice President, CEO Office Corporate Secretary General
Jacques Chauvet Jacques Lacambre Executive Vice President,
Renault Group Human Resources
Senior Vice President, Market Area France Special Advisor to the Executive Vice President,
Engineering and Quality
Jean-Pierre Corniou
Senior Vice President, Patrick le Quément
Chief Information Officer Senior Vice President, Corporate Design
Marie-Françoise Damesin Benoît Marzloff
Senior Vice President, Corporate Communications Senior Vice President, Strategy and Marketing
Alain Dassas Luc-Alexandre Ménard
Senior Vice President, Finance Senior Vice President, Public Affairs
Chairman of Dacia
Rémi Deconinck Leader, Euromed
Senior Vice President, Product Planning
Bruno Morange
Odile Desforges Senior Vice President, Light Commercial Vehicles
Senior Vice President, Purchasing
Chairman and Managing Director, Renault-Nissan Thierry Moulonguet*
Purchasing Organization (RNPO) Executive Vice President,
Chief Financial Officer
Jean-Baptiste Duzan
Senior Vice President, Corporate Controller Patrick Pélata*
Executive Vice President,
Michel Faivre-Duboz Plan, Product Planning and Programs *
Members of the Group Executive Committee.
Senior Vice President, Vehicle Engineering Development
Pierre Poupel
Philippe Gamba Senior Vice President, Mercosur
Chairman and Chief Executive Officer, RCI Banque
Manuel Gomez
Special Advisor to the President and Chief Executive Mégane remained the best-selling car in Europe
Officer in 2005 across all vehicle classes.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 18
Renault shareholders
Building lasting ties
Renault shareholders at December 31, 2005 Keeping all shareholders in the picture
Ever since its shares began trading on the stock market
Individual 15.3% in 1994, Renault has demonstrated its commitment
shareholders: to transparency with a regular flow of clearly presented
approx. 5%*
information of the same quality for all individual
French and institutional shareholders.
institutional
investors: 15%
approx. 18%* • Winning the loyalty of individual shareholders
62.7% The Renault Shareholders' Club set up in May 1995
to consolidate loyalty now counts over 10,700
3.4%
members, who receive regular updates on Group
business through quarterly newsletters and other
Foreign
institutional channels. They can also visit factories and other
investors: 3.6% Renault sites and attend events giving them
approx. 40%* an opportunity to learn more about the automotive
industry and Renault's products.
■ French state ■ Nissan ■ Treasury stock
To offer opportunities for personal contacts, Renault
■ Employees ■ Free float also organizes regular meetings in cities around
* Estimates based on a survey conducted on September 30, 2005. France. In 2005, shareholders were thus able to meet
Group representatives at events in Lille, Nantes,
Strasbourg, Toulouse, Biarritz, Clermont-Ferrand,
A survey of holders of Renault bearer shares conducted
Mulhouse and Rennes.
on September 30, 2005 to assess free float showed
that individuals held a little under 5% of equity Since 1996, Renault has also had a Shareholders'
and institutional investors 58%, including 18% held Advisory Committee, confirming its commitment
by French institutions and 40% by foreign institutions. to providing individual shareholders with information
The 10 largest institutional shareholders together suited to their needs. The Committee's 12 members
held 19%. met four times in 2005, discussing issues that
included consistency of different information channels,
internet communications for shareholders and the future
format of the annual report.
• Maintaining close relationships

with institutional investors in all parts
Laurels for Renault financial
of the world
communications in 2005
Renault is also dedicated to ongoing relationships with
Renault won the Trophée d'or des Assemblées Générales, financial analysts and institutional investors in France
which counts five evaluation criteria: presentation of financial
statements, dividend policy, highlights of the year, corporate and other countries. To this end, it organizes analysts’
governance, and shareholder relations and dialogue. meetings in connection with its announcements
The jury noted in particular the quality of corporate governance of financial results or exceptional events, as well as
and communications concerning Carlos Ghosn's succession individual meetings with investors throughout the year
to Louis Schweitzer as President and Chief Executive Officer, at Group headquarters and venues outside France.
which was announced three years ago. Managers also speak for the Group at conferences
Renault also took third place in the Fils d'or awards bringing together intermediaries and investors
for the shareholder relations of companies represented in Europe and the US as well as at major auto shows
in the CAC 40 index, as it did in the previous year.
such as those in Geneva and Frankfurt. They also
Finally, the Finance section of www.renault.com placed
contribute to events such as the presentation
second for the second year in Grand Prix Boursoscan rankings
of financial communications on the sites of 79 listed of the financial implications of the Clio III launch
companies. on the occasion of the test-drives organized in Sardinia
in autumn 2005.
An insider's view of the Flins factory

for Renault shareholders.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 19
Financial announcements in 2006

Renault shareholders
February 9 2005 results and mid-term business plan

April 24 First-quarter 2006 revenues
May 4 Annual General Meeting
May 15 Dividend payment(1)
July 27 First-half 2006 results
October 25 Third-quarter 2006 revenues
(1) Depending on the date proposed by the Board of Directors, subject to approval of the Annual General Meeting on May 4, 2006.
Market capitalization – Renault placed seventh worldwide

Risk management in automobile manufacturing
Renault makes it a constant priority to control all the risks (e billion)

its operations and plans entail, including financial,
operational and legal risks. 158.2
50
Risk management is an integral part of the Group's
44.7 44.4
operational management, while its partners Nissan and
Volvo take responsibility for this in their own businesses. 40 38.7
It is organized on the basis of dual responsibilities.
• At corporate level, the Risk Control unit within the Audit 30
Department defines appropriate methods on the basis 24.8
of a structured overview, identifying and mapping 21.5
19.6
20 18.3
risks to allow effective monitoring and prevention. 16.8
• The entities in charge of major business processes 11.8
implement the guidelines defined at corporate level 10
and identify their know-how and experts needed
to assess and rank risks as well as offer solutions 0
for their limitation.
Toyota Honda Daimler Nissan BMW Hyundai Renault VW Volvo Ford
Illustrating this approach, special care is taken for risk Chrysler Motor AB
relating to: 1 2 3 4 5 6 7 8 9 10
Source: Reuters
• internationalization, in particular in connection with
financial risks within each country and foreign On the basis of a share price of 568.90, Renault's market capitalization stood at 519.6 billion
exchange risk from trade with emerging-market at December 31, 2005, compared with 517.5 billion a year earlier.
countries;
• product and product quality, particularly as regards
user safety and customers' understanding of complex
functions; Shareholder information
• suppliers, which means monitoring their financial Mail:
positions as well as their compliance with environmental Investor Relations - 27-33 Quai Le Gallo, 92512 Boulogne-Billancourt Cedex, France.
and HR standards; E-mail: communication.actionnaires@renault.com.
• the environment, allowing for the impact of both plant Telephone:
Interactive voice response system: 0 800 650 650 (toll-free in France) and +33 (0)1 76 84 59 99.
operation and vehicle design; Renault group employee shareholders hotline: +33 (0)1 76 84 33 38 / +33 (0)1 76 84 31 74.
• information systems as regards reliability and security. Consult all our documents and watch live broadcasts of major Group events (AGM, earnings
releases):
Website: www.renault.com/Finance.
To register your Renault shares in bearer form:
BNP PARIBAS - Securities Service - Actionnariat Renault, Immeuble Tolbiac, 75450 Paris Cedex 09,
France - Tel.: +33 (0)1 40 14 89 89.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 20
A dynamic
lineup
Clio III, Renault's new standard-bearer for sub-compacts, has been on the market since September 2005.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 21
Renault's sales showed a moderate 1.7% rise 4% in Western and Central Europe, business
in 2005, a result partly attributable to the success remained on a firm track in other parts of the world
of the lineup on international markets.While sales slipped with sales up 21.2%.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:45 Page 22
Concept cars
Egeus – a top-end SUV
Renault unveiled Egeus at the Frankfurt Motor Show Development of the concept car brought a string
in September 2005. Designed in the Corporate Design of innovations in its wake, including a smart speedometer
Department competitions – the first stage in all new that displays the optimum speed calculated by the GPS
projects – Egeus is a sport utility vehicle whose lines navigation system. The engine is a 3.0-liter V6 diesel
nonetheless recall a top-of-the-range sedan. As Patrick generating 250hp, equipped with a particulate filter
le Quément, Renault's Senior Vice President, Corporate and meeting Euro IV emission standards.
Design, puts it, "Egeus is an SUV for city driving and
Suppliers also contributed to innovation, with equipment
the open road, a sort of 'tall coupé' that combines
including Michelin Eden Weiss tires designed to better
driving pleasure with elegance and sportiness."
withstand friction and, by the same token, reduce fuel
The project's originators had twin goals in mind: consumption and CO2 emissions.
contribute to the emergence of new ideas for the future
at the top end of the market, while developing a compelling
design concept with an elegant, unobtrusive style and
standards of traveling comfort not found in a traditional
sedan.
Twin-curved sides create a play of light for added flow.
The speedometer displays the recommended speed in the center.

In all-terrain mode, the dashboard has a display
showing the car's attitude.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:46 Page 23
Zoé – city style

A dynamic lineup
Rounded pillars frame

a panoramic windshield.
A bright interior features a glazed

roof with two transparent strips
featuring LEDs to create a starry
Zoé, the concept car presented at the Geneva Motor Zoé offers a surprisingly roomy interior for a car its size, canopy for night driving.
Show in March 2005, is a top-end compact suited and seating can be rearranged in several ways as needed.
to city driving, a vehicle type that is a main theme Another innovation is the scope for personalization
for reflection at Renault, alongside its commitment of the interior offered by the Pass system, based
to sustainable mobility. As Patrick le Quément explains, on a control-pad that programs preferred settings. Glass
"Research shows that cars carry 1.4 people on average, roof panels with inlaid LEDs provide a steady source
but two-seat interiors are perceived as cramped. Zoé of light, and create a starry canopy for night driving.
therefore has three full-size seats plus a roomy trunk Under the hood, Zoé is equipped with a new turbocharged
behind the driver's seat, all built into a compact Renault 1.2-liter gasoline engine that ensures a high power
architecture." output for lively response and low fuel consumption.
This keeps CO2 emissions below 140g/km – a good
performance for a gasoline engine.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:46 Page 24
Market launches
Three new winners
Clio III, SM5 and SM7 – Clio III

quick success for Renault Clio began a new era in its 15-year history with the launch Bigger and roomier than Clio II, Clio III offers a winning
newcomers in 2005. of Clio III in September 2005. The Clio II/III combination combination of appealing design, driving pleasure
took the lead in the small-car segment of the European and safety – the last borne out by five-star rating in Euro
market from the start, accounting for 9.6% of the total NCAP crash tests, making it the eighth Renault vehicle
in its very first month, compared with 7.8% for its with this distinction. Equipped with Euro-IV compliant
predecessor. Full year, after slackening in anticipation engines, Clio has never been more environment-
of the new model, sales headed up again with a total friendly, with fuel consumption down for all engine
of 341,000 Clios on the road. Clio III also placed ahead options.
of 28 rivals to win the Car of the Year 2006 award from Despite the launch of Clio III, Renault is continuing to sell
a jury of 58 automotive journalists from 22 European Clio II, now repositioned in the entry-level segment.
countries. Assembled at the Novo Mesto plant in Slovenia, Clio II
rounds out the Renault offering, particularly in Central
Europe.
The safest range on the road
Renault lines up eight models with top five-star ratings

in Euro NCAP crash tests and offers the safest range
in the automotive market in terms of adult passenger
protection.
Clio III Modus
Mégane CC Mégane II
Scénic II Laguna II
Vel Satis Espace IV
The flow and sensuality of Clio III's

lines evoke pace and driving pleasure.
Putting capacity for excellence to work

year after year.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:46 Page 25
A dynamic lineup
The SM5 uses the same platform

as the Nissan Teana and SM7.
SM5
In February 2005, Renault Samsung Motors replaced On-board equipment unmatched on the South Korean
the existing SM5 first released in 1998 with a new market includes a rear-view video camera and hands-
model all the more eagerly awaited given its predecessor's free badge. Safety features include a Smart Airbag
benchmark status on the South Korean market. System with auto-adaptive front, side and curtain
The newcomer was quick to win favor with its added airbags, ABS with Electronic Brakeforce Distribution
safety features and comfort, plus Step Gate automatic (EBD) and the Brake Assist System (BAS).
transmission for faster gear-shifting. By the end of its first year, SM7 held 18.4% of the market,
Sales of the new SM5 totaled almost 62,000 units placing second on its segment with more than 25,600
in South Korea, 7.1% more than for its predecessor vehicles sold in South Korea.
in 2004, while market share reached a record 27.6%
of the mid-segment. Significantly, over 60% of sales
were for the two best-equipped versions. For Renault
Samsung Motors, this marks an important success
on a South Korean market where buyers are traditionally
loyal to their brand. The new SM5 has consolidated
Development of SM7 took 24 months,
its existing customer base while winning new business calling for an investment of KRW300
with young managers with families who are particularly billion (approximately u220 million).
attentive to high standards of safety and comfort.
The SM5 is thus well placed to remain a benchmark
in South Korea.
SM7
Launched on the South Korean market at the end
of 2004, SM7 marks Renault Samsung Motors' first
venture into the premium end of the market. And with
3.5-liter V6 and 2.3-liter Neo VQ engines developed
under the Renault-Nissan Alliance, it has clearly lived up
to customer expectations, becoming a top contender
in the large luxury vehicle segment. A roomy,
handsomely appointed interior offers outstanding
comfort for added driving pleasure.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:46 Page 26
Passenger cars
World sales on the rise
The Renault group's In Western and Central Europe, Group sales slipped 4% Twingo
worldwide sales rose 1.7% and Renault lost its ranking as the number-one car Thirteen years on, Twingo is still going strong.
to 2.53 million in 2005, brand. It nonetheless held onto the top spot for combined In 2005, it placed fourth again on the European market
for a 4% share of the global sales of passenger cars and light commercial vehicles, for small city cars with 7.7% of the total, with sales
market. with 10.2% of the market. refocused on France, Germany and Italy, its three main
Outside Western and Central Europe, momentum markets. Altogether, sales were down only 10.4%
continued and sales showed an overall rise of 21.2%. on 2004 for an overall total of more than 77,000
All brands made positive contributions to performances registrations, a modest decline for a car that has been
outside Western and Central Europe, with sales up on the market since 1993. Demand remained brisk
45.5% for Dacia, 40% for RSM and 11.4% for Renault. in France with 45,600 new registrations, rewarding
strong support from the sales network.
Modus
On the market for only a year, Modus ranked second
for sub-compact minivans in Europe with nearly
164,000 cars registered. This represents a 3.8% share
of the B segment, the same segment as for Clio. While
overall market volumes in sub-compact minivans were
a disappointment for Renault and its rivals, Modus
scored high marks with buyers for compact comfort,
safety and handling. Alongside Clio III, Modus has
the best quality record for any Renault vehicle.
Sales outside Europe started up in spring 2005,
and were particularly buoyant in South Africa.
Twingo remains in a class of its own – as the length
of its market success also goes to show.
Modus stands out with sleek

lines and a cab-forward
windshield.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:46 Page 27
A dynamic lineup
Logan Mégane
Logan's record of success remains unbroken. Launched With worldwide sales totaling more than 803,000
under the Dacia brand in Romania, Central Europe in 2005, Mégane was again the best-selling model
and Turkey in 2004, Logan made its market debut in Europe, where nearly 644,000 passenger cars
in Western Europe in mid-2005. By the end of 2005, registered represented a 12.4% share of the C segment.
the Dacia Logan was available in 39 countries. Taking all categories together, Mégane topped the list
More than 135,000 were sold in 2005, reflecting not in France, Belgium, Spain, the Netherlands and Portugal.
only remarkable popularity in Romania – where it took Outside Europe, sales rose 10% to almost 146,000.
a huge 41% of the passenger car market – but also The Mégane Scénic, Mégane sedan and Mégane
healthy results in nearly all the countries where it has coupé-cabriolet made healthy contributions to overall
been put on sale. In France, Logan got a warm welcome results in Western Europe, with each ranking first in its
from the media and customers saluting unrivaled value category, while Scénic with its five- and seven-seat
for money in terms of equipment and cabin space. versions remained the uncontested leader on the Western
Nearly 10,000 new Logans were registered in France European market for compact minivans with sales
during the year. totaling 305,000 for a 20.9% share in 2005. Finally,
In 2005, Logan also came out under the Renault brand the Mégane range is also a top performer for fuel economy
in Russia, Colombia, Ecuador and Venezuela, where and, by the same token, reduction of CO2 emissions.
sales totaled almost 10,000 units in 2005. Production
started up in Morocco, Russia and Colombia, Laguna
where its success augurs well for performances
in 2006. Worldwide sales of Laguna totaled more than 114,000,
with Europe accounting for over 106,000 registrations.
While the launch of New Laguna in March 2005 failed
to halt a decline in sales, it was well received in the press, Mégane II is on offer in 75 countries outside
winning praise for quality and a rich array of technology Western Europe.
at its best, in particular the new GPS Carminat
Navigation & Communication System. Perceived quality
and proven reliability make for a highly positive image,
and New Laguna is now a standard-setter for safety
and effective use of new technology to enhance traveling
comfort and driving pleasure. In this, it also benefits
from the power and efficiency of the new 2.0 dCi engine.
Logan sells under the Renault brand in Iran,

Russia and Colombia.
Logan’s popularity led to a 40% increase in

Dacia sales in 2005.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:46 Page 28
Passenger cars
Vel Satis SM3

The New Vel Satis launch in March 2005 fueled a rise The phase-two SM3 proved an immediate success
of nearly 3.5% in French sales, with close to 5,400 new following its launch on the South Korean market
registrations, while Europe-wide registrations leveled off in September 2005, contributing to the excellent
at 7,600 units. In addition to high standards of safety – performance of Renault Samsung Motors for the year.
attested by a top five-star rating in Euro NCAP crash Over the 12 months, sales of this compact sedan totaled
tests – cabin space and traveling comfort, New Vel Satis more than 27,800, showing a rise of 37.9%. Market
continues earlier progress with noise levels 3dB(A) share, which stood at a cumulative 18.5% for the year
below the regulatory standard. Some 95% of vehicle as a whole, jumped to 25% following the launch
mass is recyclable, and Vel Satis is produced at a site of the new model, which is all the more remarkable as
certified under ISO 14001. the two best-equipped versions accounted for the majority
of sales.
Espace All-new design with more forceful, dynamic lines makes
Espace continued to lead the field for large minivans for added appeal with younger customers and on-board
in France, consolidating its number-one place in Europe technology includes a range of accessories such as
with 18.3% of the market. Registrations nonetheless an MP3 player and the high-performance Interactive
declined 21.4% to 49,500 as growing competition Navigation System INS-300S. In 2006, RSM will be
from SUVs and compact rivals brought a 12.6% decline exporting the SM3 under the Nissan brand, with targets
in the market. including Russia.
With the new SM3, Renault Samsung Motors

offers an entry-level vehicle especially suited
to younger drivers.
Espace leads the field

on the European market for
top-of-the-range minivans.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:46 Page 29
Powertrains
The first Alliance diesel, best in class for performance and driving pleasure
A dynamic lineup
The new 2.0-liter dCi is offered in two versions, New TL4 gearbox In 2005, Renault unveiled
with power outputs of 150hp, which has equipped On the market since June 2005, the TL4 six-speed the first diesel engine
Laguna on some markets since July, and 175hp manual gearbox is the third powertrain developed under from the Renault-Nissan
– the benchmark on the 2.0 diesel market. The latter, the Renault-Nissan Alliance. Coupled to diesel and gasoline Alliance.
equipped with a periodic-regeneration particulate filter engines powering small to medium-size vehicles
and twin balancer shafts, went into production at the end that include Renault's Modus, Mégane II and Clio III,
of 2005. In time, the 2.0 dCi, coupled to a new six- as well as Nissan's Tiida, its sixth gear makes for added
speed manual gearbox, the PK4, will equip Mégane, driving comfort and fuel economy.
Scénic, Laguna, Vel Satis, Espace and Trafic. Both
versions comply with Euro IV emission requirements.
Precise fuel injection and the treatment of polluting Emissions reduction in the European Union: Euro III to Euro IV
emissions upstream of the exhaust outlet ensure
effective reduction of nitrogen oxides (Nox) and particulates, Gasoline Diesel
100 100
while fuel economy limits CO2 emissions. Acoustic comfort
90 90
was also a design priority, as illustrated by an aluminum
80 80 - 22%
bearing ladder to absorb vibrations. Finally, the 175hp 70 70
version offers the best specific power output in the category. 60 60
- 47% - 46%
50 - 50% 50 - 50%
- 56%
Euro IV emission standards 40 40
30 30
Renault has deployed a broad range of technology 20 20
allowing for full compliance with Euro IV standards, 10 10
which aim to reduce admissible emission levels for all 0 0
passenger cars and new light commercial vehicles sold Carbon
monoxide
Hydrocarbons Nitrogen oxides Carbon
monoxide
Hydrocarbons Nitrogen oxides
in the EU from January 1, 2006. Ceilings are set for four

Euro III Euro IV Euro III Euro IV
types of pollutions – carbon monoxide, unburned
hydrocarbons, nitrogen oxides and particulates.
Design-to-Quality methods
set the standard
Drawing on experience with projects conducted under

the Alliance, Renault has adopted the Design-to-Quality
methods developed by Nissan with a view to achieving
the highest standards of reliability and quality on all engines.
For new projects, the aim is to favor technical options
that have already proved their value for customers while
maintaining strict control of all innovations that might in any
way compromise product quality.
In the case of products already on the market, this involves
analyzing and systematically correcting all defects observed
and capitalizing on solutions. Renault applied Design-to-
Quality methods in full for the first time in the development
of the 2.0-liter dCi diesel engine and the TL4 gearbox.
The 2.0 dCi – the top diesel for performance and driving pleasure.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:46 Page 30
Light commercial vehicles

Number one in Europe
Renault had another Registrations totaling nearly 310,000 units gave Renault Trafic saw European registrations reach almost 62,000
vintage year for light a 14.4% share of the market in 2005, compared with to account for 6% of the van segment. It ranked second
commercial vehicles, 14.8% in 2004, when close to 306,000 vehicles were for the first time, behind the Volkswagen Transporter
confirming the number-one sold. but ahead of the Mercedes Vito.
place in Western Europe After eight years on the market, Kangoo remained On a relatively stable market for passenger-carrying
it first won in 1998. number one in Europe on the small van segment with vans, Trafic scored a 15.9% rise in sales driven by Trafic
over 105,000 new registrations in 2005, representing Generation, launched in 2004, and Trafic Passenger,
19.9% of its market segment. In the leisure activity launched in 2003.
vehicle segment, Kangoo was a top-seller with over Master posted nearly 66,000 registrations in Europe –
58,000 units registered in Europe. Continuing the Kangoo 10.1% more than in 2004 – setting market share
tradition, the Kangoo Generation 2006 launched in October at 6.4%.
2005 shows a natural bent for fun with friendly lines
With Master, Renault has taken its place on the camper
and practical design.
van segment, a move initiated in 2003 that has led
On the van market, up 3.1%, Renault took the number- the LCV Division to work with a dozen European firms
two place, practically level with Ford, and had a market specialized in leisure vehicles. In 2005, over 8,000
share of 13.4% – eight-tenths of a point higher than Renault chassis were made for this market, which
in 2004. Growth was strong in the segment, represents annual unit sales of 80,000 in Europe.
with registrations up 10.4% to nearly 138,000.
At the same time, the Renault group's LCV sales have
expanded internationally and almost 82,000 vehicles
were sold outside Europe, 10.7% more than in 2004
and making up 11.9% of total sales.
Master had a 6.4% share of the New Special Vehicles

European van segment.
Department
Renault makes three kinds of special vehicle –
customized vehicles for fleets such as those operated
by the French post office and electricity company,
adaptations made with partner firms such as the stretch
version of the Kangoo van, and body conversions such
as ambulances and refrigerated vans. They are generally
sold directly through the Renault network.
Among its first initiatives, the new department has
established a contractual framework for relationships
between Renault and bodymakers with a view Special-purpose vehicles – a profitable
to consolidating existing partnerships and ensuring niche for Renault.
the necessary standards of quality and service. Renault
is thus developing the resources needed to respond
to growing demand in the sector, which accounts
for 30% of Trafic and 40% of Master sales.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:47 Page 31
A dynamic lineup
The light commercial vehicle range continued to make emissions of less than 150g/km. Automated Manual
progress in environmental protection. Kangoo is available Transmission (AMT), which equips Trafic and Master,
with a 1.5 dCi engine with CO2 emissions of less than cuts fuel consumption by 8% compared with a conventional
140g/km and a Natural Gas for Vehicles (NGV) version manual gearbox.
will be released in the second quarter of 2006 with CO2
Trafic Passenger’s expressive design, roadgoing qualities and wide array of comfort and safety features make
it a close relative of minivan ranges.
Kangoo has proved its winning

ways with a following for both
What is the main thrust for the European market, in 2009 or 2010. Express van and passenger-
of your Division's we have to develop carrying versions.
international strategy? products suited to local What are your target
markets?
Today, the bulk of Renault's markets and make them
LCV business is in Europe. on the spot to be competitive. We see most potential
We are present in other for our new LCV business
parts of the world, When will design strategy in Russia, India,
but despite good progress work for new vehicles and other parts of Asia.
sales remain limited. We are begin? Our aim is to achieve
now aiming for genuine At this stage, we have set the same sort of success
international reach, which the general course and as Logan has for passenger
will involve taking a new allocated the necessary cars.
approach for operations resources. We expect
on a new scale. Rather than production of the first new
export vehicles designed vehicles to get under way
Bruno Morange
Senior Vice President,
"A NEW STRATEGY FOR INTERNATIONAL MARKETS" Light Commercial
Vehicles

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:47 Page 32
The vehicle range

The Renault passenger car range
Twingo Clio II Campus
Clio III three-door Clio III Renault Sport Clio III five-door
Mégane three-door coupé Mégane five-door hatchback Mégane Renault Sport
Mégane sedan Mégane coupé-cabriolet Scénic
Logan Laguna Laguna station wagon
Espace Grand Espace Kangoo Generation 2006

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:47 Page 33
The Renault LCV range

A dynamic lineup
Thalia/Symbol Kangoo LCV Trafic LCV
Modus Master LCV (L1 H1) Master RWD
The Dacia range
Mégane station wagon

Pick-up
Grand Scénic Logan

The RSM range
Vel Satis SM3
Trafic Car - Trafic Generation SM5 SM7

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:47 Page 34
A competitive
international group
Turkey – a base for Renault production and a fast-growing automobile market.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:47 Page 35
Renault held on course for growth in 2005, pursuing contributions from parts and accessories and sales
a consistent strategy in all areas of operation financing. Not to mention double victories in Formula 1
to achieve efficient engineering, build competitive World Championships.
strength in production, enhance quality and raise

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:47 Page 36
Research and development

High environmental standards, safety and comfort
In 2005, Renault's research Clio III, awarded a top five-star rating in Euro NCAP combining low noise, fuel economy and limited
and development capacity crash tests and named Car of the Year 2006, emissions with a particulate filter equipping the 175hp
was center stage with was brought to market in just 28 months, the shortest version. Epitomizing the best in technology, internal
the launches of Clio III, development time ever for a Renault vehicle. aerodynamics ensure optimum operation of piezoelectric
the new 2.0-liter dCi diesel In addition to Emergency Brake Assist, tire pressure injectors, while progress in acoustic properties makes
engine and the TL4 six- monitoring system and additional cornering headlights – for unmatched traveling comfort.
speed manual gearbox. an innovation that won Renault the Epcos SIA Trophy – The new TL4 six-speed manual gearbox, the third
In each case, teams are Clio III is equipped with pretensioners and load limiters powertrain developed under the Renault-Nissan
dedicated to the overriding on safety belts on rear side seats, making it the only Alliance, offers top value for money with the latest
goals of customer vehicle in its segment with this important safety feature. technology to get the best out of small to medium-size
satisfaction and safety. It is also the first car fitted with a comfortable safety seat diesel and gasoline engines. The sixth gear ensures
for children aged 6 to 10 sitting in the rear center seat. added driver comfort as well as fuel economy.
The new 2.0-liter dCi diesel engine developed through Renault's R&D outlays led to 895 patent filings,
the Renault-Nissan Alliance offers top levels of performance, compared with 765 in the previous year.
The 175hp version of the 2.0 dCi,

fitted with a periodic-regeneration
particulate filter, offers the highest
power output in its class.
The work of Renault engineering teams

led to filings for 895 patents in 2005
after 765 in the previous year.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 37
A competitive
international group
During the year, R&D strategy focused on four priorities:

Safety. Boasting eight models with top five-star ratings
in Euro NCAP crash tests, Renault offers the safest
range in the automotive market. Renault harnesses
the best in technology to offer drivers and passengers
the highest levels of safety through a combination
of prevention, correction and protection. The Group thus
took the lead in an EU research program for lighting
simulation which was completed in 2005. While night-
driving represents only 25% of road traffic, it accounts
for 55% of serious accidents and 40% of all accidents
involving pedestrians. The research aims to provide
a basis for the development of headlights better suited
the lighting conditions outside.
An acyclic drivetrain test bed,

the first of its kind in Europe,
Traveling comfort. Renault's research teams are helps the NVH unit correct
engaged in continuing efforts to set new standards undesirable vibro-acoustic
for acoustics inside and out, visibility, ergonomics, features.
temperature control and overall comfort. Illustrating
this commitment, Clio III offers the biggest cabin space
in its segment.
Respect for the environment. The environment is
a central concern in areas that range from reducing
emissions of greenhouse gases and other pollutants
The NVH unit is able to calculate the vibro-acoustic to noise abatement, the use of renewable sources
performances of powertrains quickly and efficiently, of energy, and recycling of vehicle materials. Initiatives
well upstream in the development process.
over recent years have included moves to ensure
compliance with Euro IV emission standards that came
into force in 2006, while challenges ahead include
Advanced equipment and partnerships reduction of nitrogen-oxide emissions in line with Euro V
for excellence in R&D standards and the development of biofuels, which could
meet up to 30% of Europe's total fuel requirements
Renault's R&D teams draw on some of the most advanced
by 2020. Second-generation biofuels, resulting from new
resources anywhere in Europe, with a broad array of testing
facilities, wind tunnels, simulators and other equipment methods for the processing of biomass, should divide
to reduce development times and design processes total CO2 emissions in a vehicle's lifetime by a factor
for robust, reliable vehicles. In 2005, this was rounded out of five to eight. Renault is also working alongside Nissan
with a new Noise Vibration Harshness (NVH) unit dedicated for the development of hybrid technologies and fuel cells.
to improving powertrain performance in terms of noise
and vibration. Mobility. The Carminat Navigation & Communication
During the year, Renault was involved in no fewer than 61 System developed jointly by Renault and Nissan,
national and European research programs in partnership with enabling drivers to optimize routes according to traffic
other organizations, pooling resources to expand scope conditions, leads the market with levels of performance,
for creativity in areas that included safety, environmental ergonomics and functionality unmatched at its price.
protection and on-board equipment. To take some examples, The priority for Renault engineers
the EU's Nice program targets new technologies for internal – technology with genuine value
combustion engines, while Mimosa concerns digital for customers.
modeling of aero-acoustic sources. Trace will allow
the development of a shared database covering accidents
in France, Germany and the Netherlands.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 38
Production prowess
Production facilities among the most competitive in the world
Highlights of 2005 included These operations confirmed the competitive strengths Looking further afield, Renault pursued its strategy
the successful rollout of Renault's plants and the effectiveness of the Renault of installing sites close to final markets, with production
of Clio III at the Flins Production Way in ensuring uniform standards of quality of Logan extended to Russia, Morocco and Colombia
factory in France and new and performance worldwide. following a successful start in Romania.
production startups outside The Clio III launch entailed capital outlays totaling 5630 Renault's Avtoframos site inaugurated in spring 2005
Europe. million, including 5385 million for the Flins factory, represents the largest investment ever by a European
5216 million at Bursa in Turkey and 529 million vehicle manufacturer in Russia – a market with major
at Dieppe in France to create annual production capacity potential – particularly for cars priced under 58,000,
of 475,000 vehicles. Special emphasis was placed on which currently account for 80% of all sales.
ensuring that the new model immediately matched the In Morocco, Renault is working to consolidate its market
standards of quality achieved for Clio II only at the end lead with its Somaca plant set to turn out 30,000
of its lifecycle. The frequency of serious defects reported Logans a year, including some for export.
for Clio III was thus cut to a third of that for Scénic II. Finally, in Colombia, Logan is made at the Sofasa site,
Quality was also a fundamental priority for the first which already makes Twingo, Clio II and Mégane.
powertrains developed within the framework of the Renault also plans to launch production of Logan in Iran
Alliance – the M9R engine and the TL4 gearbox in 2006 and in India in 2007.
launched in 2005.Renault assembles the engine at
its Cléon site in France and the gearbox in Seville, Spain.
Logan production in Colombia has created 150 jobs
at the Sofasa factory in Envigado near Medellin.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 39
A competitive
international group
Being close to local markets enhances profitability,

in particular as a result of significantly lower logistic
costs. The international expansion this entails is conducted
in full compliance with Group standards for environmental
protection and respect for employee rights, backed
by close cooperation with local suppliers and building
on human resources policies with worldwide scope.
Other key developments in 2005 included moves to adapt
to variations in demand, demonstrating Renault's
capacity to take change in its stride. In particular,
this involved the introduction of a night shift at the Flins
plant in France, redistribution of staff at Valladolid
and Palencia sites in Spain, reorganization of production
flows at Sandouville in France and rescheduling
The Renault
in response to outside events affecting supplies. Plants
Production Way
thus successfully adapted to both rises and falls focuses on people
in required output levels, maintaining margins while as the key
at the same time meeting customer delivery times. to performance,
making the
Adjustments were made in accordance with development
the agreements on variable work schedules reached of competencies
with employee representatives at each site. and training for all
high priorities.
All told, Renault production facilities include 27 sites
in Europe, Asia, America, Latin America and North The Renault Production Way – the key to success
Africa. The Group also benefits from the support Deployed since 2000, the Renault Production Way structures Renault's drive to rank among the most
of Nissan production facilities in Mexico and Spain, efficient manufacturers anywhere in the world. Drawing on the experience built up over its own
while Nissan uses Renault's plant for light commercial history and best practices developed through the Nissan Production Way, the Renault Production Way
vehicles in Curitiba, Brazil. rallies all those concerned with the production process – from designers to buyers, suppliers
and logistic providers as well as factory staff – to shared goals, principles and standards.
Over recent years, it has provided invaluable support for international growth and is now operational
at all sites, ensuring uniformly high standards of quality and organizational efficiency, making Renault
one of the world’s most competitive manufacturers. Placing special emphasis on the united
contributions of all staff members, it naturally entails a major commitment to the development
of know-how at all levels and makes environmental standards and quality working conditions
an integral part of day-to-day operation.
What was the focus of What about parts? How have you dealt
progress in logistics in In Romania, we successfully with the jump in oil
2005? launched a new International prices?
Clio III – our strongest start Logistics Network* center Fuel accounts for 20 to 30%
ever. We delivered agreed for delivery of parts to all of our costs, but despite
quantities on time to all our Logan manufacturing sites. the higher prices we were able
distributors in full compliance In time, it will be the largest to cut the bill at constant
with schedules. Startups in the Renault group. At business scope by 2.3%
for production of Logan assembly plants, we have for parts transport and 1.1%
in Russia, Morocco and reached an 88% compliance for vehicle transport. We did
Colombia also went well. rate for supplier deliveries, that by negotiating hard and
As for other production, up from 80% in 2003. raising productivity, reengi-
deliveries less than three And the number of vehicles neering distribution circuits
days late were up to 80% at these plants affected by to ensure fuller loads on
*International Logistics Network:
in 2005, compared with a supply problem fell from trucks, redesigning packaging Shipment of CKD kits to be
60% in 1999, and we even 3.2% to 1.2% in two years. and parts, and so on. assembled at other sites.
achieved a new record
of 92% in one week during Bruno Ancelin
September. Vice President,
"CLIO III – OUR STRONGEST START EVER" Logistics

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 40
Quality first
Quality – a natural priority
Renault sets its sights Quality goals are formalized in the three-year Renault Progress is already significant. Since 2002, the number
high, aiming for customer Excellence Plan which was adopted on March 23, 2005 of faulty parts delivered by suppliers and the number
recognition, in all parts to carry on from the Renault Quality Plan. The underlying of vehicle-off-road breakdowns affecting cars in their first
of the world and in every philosophy is simple, calling for the deployment of systems year on the road have both been halved. Over the same
market segment, as one and standard processes that place the achievement period, major defects detected at the end of the assembly
of the world's top three of quality on an industrial scale. line and the number of incidents reported by buyers
auto manufacturers in the first three months have been divided by three.
for quality and service.
Deployment of the Renault Excellence Plan builds

on the personal commitment of each individual.
Quality checks at the end

of the line are crucial
to excellence.
How would you describe Logan production sites You came under heavy
your Department's job? in Russia, Colombia and fire for the cruise
Our fundamental mission is Morocco have been very control system. What
to ensure that quality is part satisfactory. Quality controls would you say about
and parcel of everything h a v e b e e n a b u rd e n that?
the business does – from in some ways, but they All the tests carried out by
design and development have very definitely been our 40 in-house engineers
to production, sales and worth it. as well as by outside
Yann Vincent aftersales. Which means specialists reached the
Senior Vice President, defining standards, moni- Could you tell us some same conclusions – there
Quality toring compliance and more about quality were no technical problems
working to ensure contin- at international level? with the cruise control
uous improvement. We have to be alongside system. At the same time,
"OUR EFFORTS What were the results
operational teams, wherever our analysis of the problems
they are. And start very encountered by some
HAVE ALREADY in 2005? early in the day – which is of our customers led us
In the space of a year, we why we have quality teams to the conclusion that the
PAID OFF. cut the number of incidents in Iran and India even system is not all that easy
by 25%. And progress has though production has not to use, especially if a driver
AND NOW been even better with the yet started there. is under pressure. So we
latest models – Modus, are working to simplify
WE WILL BE the phase-two Laguna II and operation and ensure that
TAKING THEM Clio III. Importantly, conditions
for the startup of new
customers are better
informed.
EVEN FURTHER"

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 41
A competitive
international group
Formula 1 successes help to drive

the quality message home.
The Renault Excellence Plan sets five fundamental priorities:
Robust design – applying standards that reflect
the lessons of experience, the target in a three-year horizon Success in figures
is to cut the number of repairs needed in a car's first With a view to accurately assessing progress achieved and remaining room for improvement, Renault's
three years on the road to an average of no more than one. Quality Department has adopted a series of measurable indicators. These show that action to date has:
Compliant manufacture – no more than one in 10
vehicles on average should suffer even a minor incident 2 3
in the three months following sale. • more than halved the • divided by three the
Reinforced reliability for all usages – relying not number or faulty parts number of defects detected 2
only on the technical design of the car, but also delivered by suppliers; 1 at the end of the assembly
line and requiring later 1
on targeted maintenance policies, the goal is to cut correction;
the number of incidents to an average of just one during
the first three years on the road. 0 0
2003 2005 2003 2005
Customer satisfaction in sales and aftersales 3 2
with a drive for greater efficiency within the dealer • divided by nearly three • halved the number
network and higher standards of service. the number of incidents 2 of vehicle-off-road break-
Anchoring quality in the corporate culture with affecting customers' downs in the first year on 1
vehicles during the first 1 the road.
the Renault Quality Management System.
three months on the road;
The success of the Renault Excellence Plan hinges
0 0
on the full commitment of everyone in the business, 2003 2005 2003 2005
in all parts of the world. Initial results as measured
by selected performance indicators have been more Renault is thus reaping the rewards of renewed efforts since 2003 and will be continuing its drive
than encouraging, showing spectacular progress in key for improvements to bring clear benefits for customers.
areas.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 42
Purchasing
A purchasing policy for tangible progress
In 2005, Renault pursued In 2005, a highly structured program to improve an unfavorable economic environment. In this area,
its drive to enhance the quality of bought-out components, backed by a major Renault did all it could to encourage suppliers to raise
purchasing efficiency commitment to communications targeting suppliers, productivity and in so doing limit the impact of higher
with the active support more than halved the number of defects per million raw-material prices.
of suppliers. parts received at our factories. At the same time, The Alliance with Nissan naturally continued to play
the number of defects detected per thousand vehicles a central role, with joint purchases through the Renault-
during the first three months on the road was divided by Nissan Purchasing Organization now accounting for over
three. Delivery problems attributable to suppliers also 70% of all orders. Nearly 60% of suppliers also now
fell sharply. Finally, efforts to cut the costs of bought-out work with both partners, compared with only 50%
components and services remained on track despite in 2004. This reflects the growing use of common
platforms and powertrains, opening the way for
the development of a worldwide network of suppliers.
In addition, more and more equipment makers are
accompanying Renault as it begins production in other
countries, saving time and money for startup.
Development of local content

Purchasing organization is increasingly international
in scope and Renault's Purchasing Department has a direct
presence in all factories outside Western Europe, reflecting
commitment to local content as a means of optimizing
performances. Local purchasing teams thus make
an essential contribution to the startup phase and ongoing
production, ensuring compliance with the required
standards of quality and maximum cost efficiency. Applying
the most demanding international standards, they thus play
an essential role in the development of reliable sourcing
networks in new areas.
To back up this decentralized approach, Renault has placed
special emphasis on standardization of work processes
and training to ensure that teams in all parts of the world
share the same know-how. We achieve this through
Purchasing School programs drawn up by the Purchasing
Department and using the combined expertise of its specialized
units. Similarly, deontological rules and principles have been
unified. Finally, in 2005 the Group defined standard
organizational structures reflecting key functions at Group
level and all local units have either already adopted or will
soon be adopting management structures centered on functions
and projects.
Progress achieved in 2005 included a fall of over 50% in the number

of defective parts per million delivered to factories.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 43
A competitive
international group
Renault and its suppliers work together on topics

such as improving vehicle recyclability.
Sharing components within the Alliance helps

to establish a global supplier base.
The purchasing policy is also framed to reflect Renault's

commitment to sustainable development. Suppliers are Backing co-innovation
actively encouraged to apply the principles of the UN In 2005, Renault launched a new program to back
Global Compact and Renault's Declaration of Employees' innovation in cooperation with suppliers, the aim being
Fundamental Rights. This involves in particular the strict to favor technological progress through shared research
commitments. This, in turn, contributes to achieving
prohibition of all forms of forced labor and child labor,
Renault's goal, which is to count among the three most
as well as the requirement to limit industrial hazards. innovative manufacturers in the global automotive industry.
Procedures have been set up to measure and assess To this end, three committees were set up to consider issues
environmental and employee relations performance, relating to the environment, traveling comfort, and safety
and suppliers have been provided with a self- and reliability, leading to the identification of eight priority
areas for cooperation with suppliers. Five additional
assessment system encouraging them to apply best
committees will begin work in 2006, and rules regarding
practice. Joint working groups have been established intellectual property rights have been clarified to facilitate
with some suppliers to address issues including CO2 joint development projects.
emissions, recycling of end-of-life vehicles, and an inventory
of substances to be banned or for restricted use only.
This is in keeping with Renault's conviction that lasting
relationships with suppliers in all parts of the world must
be based on common values and a shared commitment
to continuous progress.
A dedicated portal helps suppliers optimize relationships

with Renault.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 44
The sales network

Building a multi-brand network
With the development Logan has opened up new markets and will soon be In other parts of the world, Logan will be sold under
of the Dacia brand, developing into a range in its own right to meet vigorous the Renault name, spearheading moves into new
the Renault group has been demand. markets including Russia, Iran and India. The Dacia
able to broaden This reflects a marketing approach that is at once global range is to be extended to include a station wagon
its customer base and differentiated to match varying conditions in different and a light commercial vehicle between now and the
with complementary parts of the world. In Central Europe, Turkey and North beginning of 2007.
product ranges and images. Africa, Renault and Dacia brands are marketed Renault has already acquired experience of multi-brand
separately, with a distinct area for each brand. So far, marketing through the Alliance with Nissan. The two
509 sales outlets have opened under the Dacia banner. brands have separate networks and resources, allowing
In Western Europe, the Dacia brand has instead been each to deal with its own customers, but back-office
made the direct responsibility of the Renault network, processes are pooled as are aftersales services
which has set up dedicated show areas for this purpose. at Renault-Nissan outlets.
By the end of 2005, 45% of Renault dealers also served The Renault sales network is present in 118 countries
the Dacia brand. Strategy was first defined at corporate around the world, counting over 12,000 dealers
level, with each subsidiary then making the necessary and subdealers. It is backed up by a web presence,
adjustments to match the structure of the existing which is particularly important considering that half
network and local market conditions. of all customers in Europe seek information on the internet
prior to purchasing a vehicle. Renault sites receive some
2 million visits each month, generating 35,000 leads.
Pooling of resources combined with respect for brand identity.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 45
A competitive
international group
Training moves up a gear

Over the past two years, Renault has raised the number of hours' training provided to technical staff
in its distribution network by 45%. In 2005, 76,000 technicians, 53,000 mechanics and 23,000 body
and paint workers thus received a total of 1.9 million hours' training. This will help them achieve Renault's
excellence targets for 2007, building competencies to meet not only current needs but also those
to come. Preparations for this year's courses began with a full review to measure existing know-how.
Results were used to define programs to be offered through the 62 Renault training centers around
the world. These programs are structured on the basis of a master program dubbed FK2,
which encompasses evaluation of skills using a virtual workshop on CD-ROM, followed by pre-training
Constant enhancement of service quality is a top at the workplace with a CD-ROM, then hands-on training at a center. In 2006, resources will be rounded
priority for the Renault group.
out with an online Learning Management System.
Why has Renault What initiatives have Renault is cooperating These will allow students
developed new you taken? with France's to move on from an initial
training programs for One important thing we Education Ministry in qualification in electronics
aftersales? have done is to prepare the field of secondary- or mechanics to acquire
These programs respond new career paths allowing school learning. Could a full secondary diploma in
to the new needs that go more opportunities to shift you tell us more about automobile aftersales and
with exponential growth from engineering positions what that involves? maintenance; previously
in the technology content into the technical side Schools obviously need to this was an option only
of our products and a of sales, increasing overall keep pace with technology, available to those who had
widening range distributed scope for mobility. This will and in this our role is to assist studied mechanics. The first
in more and more countries. allow staff to acquire dual with the development of programs should get under
A key challenge is to build know-how, which should programs matching industry way in September 2006.
reparability into design help to ensure that repairs needs. We have also formed
and create new synergies are factored into design. With this in mind, we will be partnerships with vocational
between professionals in Similarly, we now offer young entering into partnership and technical schools,
design and development engineers opportunities to with the Education Ministry, in particular GARAC, an
a n d t h o s e i n re p a i r s . participate in government- ANFA – the French auto- institution based near Paris
And along with that, to s p o n s o r e d o v e r s e a s mobile industry's training that specializes in training
ensure that competencies internships in the aftersales association – and PSA for the automotive industry.
keep step, anticipating departments of our sales to develop pilot programs
future needs and enhancing subsidiaries. in four school areas.
customer satisfaction in
a context marked by the
growing convergence of
electronics and mechanics.
"TRAINING PROGRAMS RESPOND TO NEW NEEDS Philippe Jombart
Vice President, Service
FOR KNOW-HOW IN AFTERSALES"

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 46
Parts and accessories

Parts and accessories for world brands
Over the years, parts Strong performances reward a combination of outstanding central warehouse with an area of 150,000 sq.m.
and accessories have made quality, efficient logistics and forceful sales strategies. at Villeroy near Paris, while elsewhere in Europe the surface
an increasingly important A top priority for the Parts & Accessories Division is area of the main warehouse in Poland has been
contribution to Renault's to defend the use of genuine parts embodying Renault's doubled, the Belgian center has been expanding,
competitive strengths, research and production know-how as the best way and a joint Renault-Nissan facility has opened in
providing effective leverage to preserve the value of a Renault vehicle. As such, Hungary. In other parts of the world, work is under way
for growth. they make an important contribution to brand loyalty. on centers in Russia, Algeria and Morocco, and projects
A total of 100,000 items available cover all types are under consideration for Iran and India. To ensure
of repair for cars that may have been last produced overall cohesion and consistency with production
10 years ago – or even more. schedules, Renault is deploying its Parts & Accessories
Logistics System worldwide, a process that began with
A major focus of recent efforts has been to boost
the main distribution centers in 2005 and was extended
logistics to meet the demands associated with international
to other European centers from the beginning of 2006.
expansion. In France, work has begun on a fourth
Service exchange brings new scope

for recycling in electronics
Service exchange means the replacement of a component
with used parts that have been fully reconditioned, allowing
the buyer to save 30 to 50% off the price of new parts.
Renault's service-exchange offering covers 2,600 items in 14
product categories. Until recently, most were mechanical
parts, but inventory now encompasses a growing range
of electronic equipment, particularly navigation systems.
Quality standards are the same as for new parts, as confirmed
with a 12-month unlimited mileage warranty.
Each year, Renault sells some 800,000 remanufactured parts,
generating revenues of approximately 5200 million. Service
exchange is an important aspect of the Group's sustainable
development policy, since renovation for reuse means that
fewer parts wind up as waste – one approach to environment-
friendly solutions for the treatment of end-of-life vehicles.
In 2005, Renault expanded capacity at its warehouse

for parts and accessories in Poland.
The new spare parts facility shared

by Renault and Nissan in Hungary
distributes Renault, Nissan and Dacia parts
in five Central European countries.

EXE R.A. 2005 (1-92) GB.qxd 22/03/2006 15:57 Page 47
A competitive
international group
The success of the Parts & Accessories Division also The range of products available has also been extended
reflects its capacity to sell Renault's offerings to other with the new Ixtar brand for cleaning products, as well
organizations and professionals in the field of automotive as reconditioned electronic components. These round
maintenance and repairs. Here the internet provides out an offering that already includes Ixell paints
highly effective support, with the Renaultp@rts site and Motrio multi-manufacturer parts.
serving professionals in France, the UK, Germany, Italy, The Parts & Accessories Division has also backed
Spain, Switzerland and Portugal. the development of the Renault Minute banner for quick
Counting over 10,000 customers, the site has attracted repairs and Renault Minute Carrosserie for bodywork,
more than 2 million orders since its launch for revenues plus a network of affiliates for Motrio parts. A similar
totaling close to 5400 million in 2005. move is planned for Ixell paints in 2006.
Backing the development of its Ixell brand,

in 2006 Renault will launch a network of affiliated
body workshops in France.
How is Renault to ensure vehicles will be of structures for recycling, information on regulatory
applying the EU's handled in accordance with dismantling of parts, requirements and promoting
End-of-Life Vehicles the Directive over the sorting of materials after best practices and favored
Directive? coming 10 years. shredding and use of some options for treatment. In
In 2005, efforts focused materials as fuel in certain France, we have selected
on the development of a What about 2006? partner industries. five providers offering one-
network for the collection Once collection sites are stop solutions nationwide.
and treatment of end-of-life operational, we will have What about recycling In 2006, all dealers in Europe
vehicles, the first priority two main tasks – first, of waste at maintenance will be able to participate
under the Directive. To do an information drive to and repair facilities? in these initiatives – we
that, we have reached ensure owners know what We have launched a consider proper waste
agreements with vehicle to do with their end-of-life campaign to raise aware- treatment an important part
dismantlers and shredders vehicle and, secondly, ness of the issue in our of environmental manage-
in most European countries continued development European network, providing ment in the network.
Bernard Poncelet
RECYCLING – "RENAULT IS MEETING ITS OBLIGATIONS WITH A NETWORK Director, Remanufactured
Parts Program
FOR THE COLLECTION AND TREATMENT OF END-OF-LIFE VEHICLES" & Recycling

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:48 Page 48
Sales financing
RCI Banque – growing international reach
Providing financial backup RCI Bank Polska, RCI Banque's wholly-owned Polish business, 70% of the 1 million contracts processed
for Group brands subsidiary, began providing credit for network sales in 2005 were outside France and 10.3% were outside
worldwide and for Nissan in 2005, while in Hungary the Group bought out the 50% Western Europe.
in Europe, RCI Banque of Renault Credit Hungary held by a partner bank In all parts of the world, the priority is to offer individual
accelerated in June and started up credit financing for the local and corporate customers a full range of financing
its international network. In Morocco, a sales subsidiary was set up solutions, including not only standard loans but also
expansion in 2005. in partnership with a local bank to provide financing rental with a purchase option, leasing, and contract hire,
for customers of Renault, Nissan and Dacia brands, as well as related services such as maintenance,
and in South Korea preparations have been completed warranty extensions, insurance, assistance, fleet
for the launch of a local subsidiary in 2006. management, and more. RCI Banque also finances
Other operations could be launched in countries such as inventories for Renault and Nissan distributors,
Croatia, Slovenia, Colombia and Russia during the year. and covers their short-term cash requirements.
Illustrating the international growth of RCI Banque's
Renault Polska started a new stage

in its development with network
financing on this high-growth
market in 2005.

EXE R.A. 2005 (1-92) GB.qxd 22/03/2006 16:00 Page 49
A competitive
international group
All told, loans outstanding to customers and distributors

rose 5.7% to 523.4 billion in 2005, reflecting
in particular growth in business with corporate
customers. In Western Europe, the proportion of new
vehicle registrations financed by RCI Banque for Renault,
Nissan and Dacia remained at a high level, accounting
for 34.9% of the total. Financing for sales under
the Dacia banner is still at its beginnings, but already
accounts for over 30%.
Proportion of new vehicle

registrations financed
(Renault, Nissan and Dacia; 2005)
40
34.9% 33.5% 34.4% 34.8%
30
RCI Banque is a source of value creation, providing
20
added impetus for business development as illustrated
in Morocco, where sales rose 30.9% in 2005.
10
0
■ Europe (G10) ■ International Operations Dept.*
■ Central and Eastern Europe ■ RCI Banque total
What were the main On that point, could How do you plan
highlights of business you tell us more about to expand
in 2005? your international your business now?
First of all, earnings reached strategy? We already have one
a record as we benefited Our mission is to provide of the largest slices of the Number of vehicles financed in 2005
from what was in all support for the international market, providing financing Central and
likelihood the last year expansion of Renault and for 34.9% of all cars sold in Eastern Europe International Operations Dept.*
of declining interest rates, Nissan without unsettling Europe. We will naturally be 21,460 85,790
as well as the efforts our own financial balance. continuing our efforts, and
Philippe Gamba applied over the past three We step in wherever we plan to make synergies
Chairman and CEO, years to cut costs. At the business volumes are suffi- with the sales network
RCI Banque RCI Banque
same time, we stepped up cient to allow that or are and marketing teams even Europe (G10) total
the pace of international in the process of becoming more effective. We will be 929,400 1,036,650
d e v e l o p m e n t a n d w e so. As an example of this, placing special emphasis
expect to reap the rewards we are setting up oper- on offerings such as leases
of these investments in the ations in Russia. We now with purchase options and
years ahead. have subsidiaries in 22 contract hire that maintain
countries, keeping in mind close ties between custom- New contracts
that Nissan has sole respon- ers and dealers. (O million)
sibility for business in North
"WE PLAN TO MAKE SYNERGIES America, Japan, Thailand Central and
Eastern Europe International Operations Dept.*
and Mexico.
WITH THE SALES NETWORK 99 188
AND MARKETING TEAMS EVEN

RCI Banque
MORE EFFECTIVE" Europe (G10) total
10,203 10,490
* Romania and Mercosur.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 50
Formula 1
Constructors' and Drivers' World Champions
Renault produced
a sensation in the Formula 1
World Championship
by claiming both the
Constructors'
and Drivers’ titles in
the same year.
Renault gave rivals almost no chance,

winning nearly every second Grand Prix.
Renault is the first volume car manufacturer to have Renault also demonstrated its know-how in keeping
won the Formula 1 Constructors' World Championship, costs under control, winning the two top titles with a budget
while Renault driver Fernando Alonso is the youngest that was only the grid's fourth-largest. At the same time,
World Champion in F1 history. Just as remarkable is the Group leveraged its involvement in F1, with the race
the short timescale in which the team achieved team working closely with the Group's engineering
this historic feat. departments on a number of research projects aimed
Success was the reward for close cooperation between at improving aerodynamic efficiency, quality and reliability,
teams at Enstone near Oxford in the UK and Viry- combustion, engine performance, vibration control
Châtillon south of Paris, with each team drawing and data-processing systems.
strength from united commitment rather than relying
on a few outstanding individuals. Flat organization
proved particularly effective in speeding up processes,
making for maximum motivation. And Fernando Alonso
showed himself a true professional in building fruitful
relationships and winning unreserved support with his
own enthusiasm and commitment to the highest
standards.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 51
A competitive
international group
Renault has developed a genuine F1 culture centered exhibitions and demonstration runs by historic models
on the permanent fine-tuning of its chassis and engine, from Renault's own collection.
with all those involved putting their full energy into With a global TV audience of 2.3 billion viewers in 2005,
the project and carrying it through to victory. including 200 million in China, Renault's World
The team also contributed actively to raising Renault's Championship double is expected to reap significant
international profile. Formula 1 roadshows were commercial benefits, especially in countries where
organized in major capitals like Istanbul, Moscow the Group is now setting up operations. A survey carried
and Rome. These events, which all attracted in excess out in November 2005* revealed that the Group has
of 50,000 spectators, featured a parade of the Renault gained broader recognition and a reputation for technical
F1 car in the city's streets, plus Renault road car excellence.
Shared enthusiasm for working together The superior reliability

was a key to success for the Renault F1 Team. of the R25 opened
the road to victory.
The results of this survey were particularly clear:

Engineered for victory • One automobile consumer in two believes that
The philosophy behind the design of the car was based on the presence of a carmaker in F1 is beneficial for its
ongoing development work during the year. This work focused image;
on all areas, from improving structural rigidity and saving
weight to ensuring the most compact packaging for the • One in five said they place greater confidence
mechanical components in order to give as much freedom in carmakers involved in Formula 1 (one in two
as possible to the aerodynamicists. The reward was a 10% in China, and one in three in Brazil);
gain in efficiency between the start and finish of the season
and the fall-off in performance resulting from changes to the • One in four considered that Renault's presence in F1
technical regulations at the beginning of the year was allows it to improve the reliability of its road vehicles;
progressively overcome. An all-new electronic system enabling • One in five said that Renault's results have had
engine and chassis data to be handled by a single electronic
unit contributed to optimizing the car's efficiency thanks
a positive effect on their perception of Renault
a 400% increase in its processing capacity and a tenfold and its products (one in two in China).
increase in its data-logging capacity. Meanwhile, the car was Finally, 10% of respondents said that Renault's
powered by a new V10 engine featuring a "V" angle of 72°
involvement in F1 has led them to want to purchase
and a lifecycle extended to more than 1,400km. The V-shaped
keel on which the front suspension was mounted represented a vehicle from the Renault range.
a creative compromise between the two approaches
experimented by other teams. Finally, the banning of mid-race
tire changes saw Renault review its race strategies which led
to one less pit-stop per race. * A Research International survey conducted on behalf of Renault in November 2005
using the quota method and based on a sample of 8,000 automobile consumers
in 23 countries in Western and Eastern Europe, Asia and South America.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 52
Renault Sport Technologies

Success for the inaugural "World Series by Renault"
The "World Series Launched in May 2005 at the Belgian circuit of Zolder, by the Renault F1 Team, parade laps, collectors' car
by Renault" got off the new "World Series by Renault" was an immediate hit shows, pit-stop contests, driving simulators and road
to a promising start. across Europe. The 2005 calendar's eight events safety workshops, plus a wide variety of more general
This innovative motor sport attracted more than 655,000 spectators who entertainment in the form of concerts, celebrity
concept combines top- represented a far broader audience than traditional autograph-signing sessions and fairground attractions.
class racing action race-going fans. Indeed, some 60% of those who Entry is free of charge.
and an exciting program attended had never previously been to a motor racing "World Series by Renault" events have emerged as an
of entertainment off meeting. effective marketing tool which not only generates
the track. Each weekend sees three international championships interest in the brand but also plays a positive role in
top the bill: the World Series Formula Renault 3.5 aimed enhancing the image of Renault products. Indeed, more
at Formula 1's stars of tomorrow, the Formula Renault than 40% of visitors received their invitation through
2.0 Eurocup, a long-time stepping stone for young their Renault dealership, while media coverage (TV, print
racers which has produced such top names as Kimi media, etc.) represented the equivalent of advertising
Raikkonen, Felipe Massa and Christian Klein, and finally valued at 543.9 million. In the future, new partnerships
the Eurocup Mégane Trophy, Renault's new flagship will be developed at local level and efforts to consolidate
single-make hatchback car series. In between races, customer bases will be stepped up.
spectators are kept entertained with demonstration runs
"World Series by Renault"

events provide effective
promotional support for
the brand's sports models.
The hot hatch with passion

and driving pleasure
The challenge faced by Renault Sport Technologies'
engineers when first penning New Clio Renault Sport was
to respect the original personality of Clio III while at the same
time highlighting the sports version's own intrinsic strengths
and dynamism. The result is an outstanding car which puts
the accent firmly on performance, passion and driving
pleasure.
New Clio Renault Sport features a groundbreaking first
in its segment in the form of a rear air diffuser which uses
technology derived directly from Formula 1. In association
with the extractor vents in the front wings, it ensures excellent
aerodynamic performance.
Sportier than ever, New Clio Renault Sport is powered
by an evolution of the normally-aspirated 2.0 16V engine,
the power of which has been increased to 200hp. This is
equivalent to 100hp/liter, making it the highest specific power
output of its category. New Clio Renault Sport is a worthy successor
to the Clio II Renault Sport 2.0 16V.
Coupled with a six-speed gearbox, this powerful, responsive
engine offers first-class sports performance and driving
pleasure, while the double-axis strut system guarantees
sharp and extremely precise handling.

EXE R.A. 2005 (1-92) GB.qxd 22/03/2006 16:01 Page 53
Equity interest in AB Volvo

AB Volvo – Europe's number-one truck maker
A competitive
international group
The truck business of Volvo and Renault (Renault V.I. Their combined offering thus spans the full range from AB Volvo's contribution
and Mack) has been united through AB Volvo since light commercial vehicles to the largest trucks and to Renault's earnings
January 2001. With the integration of Renault V.I. is backed by a network covering over 130 countries amounted to 7308 million
– renamed Renault Trucks – and Mack, Volvo is now in Europe, North and South America and Asia. Altogether in 2005, after 7221 million
the number-one manufacturer of trucks in Europe and over 214,000 vehicles were sold in 2005 after 193,000 in 2004. Renault received
number two worldwide. As a result of the 2001 tie-up, in 2004. 7120 million in dividends.
Renault is Volvo's largest shareholder with a 20% interest. Renault is represented on the Volvo Board of Directors
The three brands – Volvo, Renault and Mack – continue by Louis Schweitzer, Renault's Chairman of the Board,
their development based on distinctive identities, but also and Patrick Faure, who is due to retire in the second half
complement each other in terms of geographical reach of 2006. His term will therefore not come up for renewal
and products. at Volvo’s next Annual General Meeting.
AB Volvo’s financial results

in millions 2005 2004 restated to IFRS
SEK 7* Change SEK 7**

2005/2004
Net revenues 231,191 24,915 + 14.4% 202,171 22,168
Operating income 18,151 1,956 + 23.7% 14,679 1,610
Net income 13,106 1,412 + 32.3% 9,907 1,086
Dividend per share in SEK 12.50 FY + 56.3% 8.00 FY

2004 2003
* e1 = SEK9.28 ** e1 = SEK9.12
Renault's interest in AB Volvo is a source

of profit for the Group.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 54
The Renault-Nissan
Alliance
Across the world, the partner best placed on each market helps the other to expand business there.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 55
The Renault-Nissan Alliance strategy of profitable Nissan Purchasing Organization developed further
growth continued to make good progress in 2005, momentum and synergies were reinforced in sales
yielding significant benefits for both partners. Renault- and production.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 56
Structure, operations
and Vision - Destination
The principles of the Renault-Nissan Alliance
The Renault-Nissan
Alliance is built on two
independent companies,
each with its own
corporate culture
and brand identity,
with a joint strategy
of profitable growth
and a community
of interests.
The third Alliance Convention

on October 18, 2005 brought
together 300 people from
Renault and Nissan in Tokyo.
An Alliance Charter, signed in July 1999, sets out The Alliance attracts and retains the best talents,
the principles of a shared ambition, mutual trust, provides good working conditions and challenging
respect of each partner's identity, and balance between opportunities; it grows people to have a global
the two partners. and entrepreneurial mindset. The Alliance generates
On the strength of the numerous synergies generated attractive returns for the shareholders of each company
by the Alliance over the past six years and the performance and implements the best established standards
of both companies, Renault and Nissan have asserted of corporate governance. The Alliance contributes to global
their ambition for the future. In March 2004, the two sustainable development.
partners reaffirmed their shared values and principles The Alliance has set itself three main objectives,
in a document entitled "Alliance Vision - Destination". which are:
"The Renault-Nissan Alliance is a unique group of two • To be recognized by customers as being among
global companies linked by cross-shareholdings," the best three automotive groups in the quality
states the document. They are united for performance and value of its products and services.
through a coherent strategy, common goals and principles, • To be among the best three automotive groups in key
results-driven synergies, and shared best practices. technologies.
They respect and reinforce their respective identities
• To consistently generate a total operating profit among
and brands.
the top three automotive groups in the world.
The Alliance is based on trust and mutual respect.
Its organization is transparent and ensures:
• Clear decision-making for speed, accountability and a high
level of performance;
• Maximum efficiency by combining the strengths of both
companies and developing synergies through common
organizations, cross-company teams, and shared
platforms and components.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 57
Strategic management Sharing of best practice

The Renault-Nissan
Alliance
Renault-Nissan b.v., the strategic management company The Alliance promotes the sharing of best practice
of the Renault-Nissan Alliance, is jointly and equally held and conducts benchmarking studies in all areas of business
by both Renault and Nissan groups. The company, whose at Renault and Nissan to identify avenues for progress
registered office is located in the Netherlands, hosts in each sector.
the Alliance Board, which meets regularly.
The Alliance Board steers the Alliance's medium-
and long-term strategy and coordinates joint activities
on a worldwide scale. The President of the Alliance Board
is the President and CEO of Renault and President
and CEO of Nissan, Carlos Ghosn. The other members
are Patrick Blain, Patrick Pélata and Jean-Louis Ricaud
from Renault, and Toshiyuki Shiga, Tadao Takahashi
and Mitsuhiko Yamashita from Nissan.
Steering Committees deal with all cross-functional
Alliance operations and propose priority topics for
the Alliance Board Meetings. They also coordinate
the activities of the Cross-Company Teams (CCT),
Functional Task Teams (FTT) and Task Teams (TT). There are
seven Steering Committees overseeing Planning,
General Overseas Markets, Control and Finance, Sales
and Marketing, Information Systems, Support Functions,
and Product Development and Manufacturing.
Since the beginning of the Alliance, Renault and Nissan
have been committed to developing personnel exchanges
2005 was an historic turning point for Renault and Nissan,
in order to enhance the performance of the Alliance. with the same President and CEO leading both groups,
These exchanges concern 412 employees (including completion of the Nissan 180 business plan and preparations
common organizations). Several hundred people for Renault's own business plan.
are involved in Alliance bodies, remaining employed
by their home company.
Key dates in the Renault-Nissan Alliance
• March 27, 1999: Renault and Nissan announce their strategic Alliance. Renault takes a 36.8% stake in Nissan for ¥643
billion (55 billion).
• June 1999: The structures for devising and implementing joint projects are established. They are governed by the Global
Alliance Committee.
• October 30, 2001: Renault and Nissan announce their decision to further strengthen the Alliance. Renault-Nissan b.v.,
a joint management company held equally by both partners, is established under Dutch law.
• March-May 2002: Renault exercises the warrants it has held since 1999 ahead of schedule to raise its stake in Nissan
from 36.8% to 44.43%. Nissan acquires a 15% stake in Renault.
• May 29, 2002: The Alliance Board meets for the first time.
• May 2005: Carlos Ghosn becomes President and CEO of Renault, while remaining President and CEO of Nissan,
and becomes President of Renault-Nissan b.v.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 58
Cooperation and synergies in engineering

Common platforms
and interchangeable components Research and advanced engineering
Renault and Nissan aim to use 10 platforms for their Renault and Nissan are cooperating in strategic fields
main vehicles by 2010. The platforms are developed of research and advanced engineering in which they have
as the vehicle range of each of the partners is renewed. common interests. The aim is to optimize the allocation
An initial platform, the B platform, has been used of resources of both groups, covering a broader range
by Nissan since March 2002. Renault started using of potential technical solutions and accelerating
the platform with Modus in October 2004 and Clio III cooperation to make technological progress. Common
in September 2005. areas of research include fuel cells, hybrid vehicles,
A second platform, the C platform, was launched materials, electronics, powertrains and active safety.
by Renault at end-2002 with the new Mégane II. Nissan These activities boost competitiveness. Clio III, for example,
has also been using the platform since December 2004 was developed using Serial-lots (S-lots). This method,
with the Lafesta. devised by Nissan and applied on Logan, involves
The Interchangeable Components Policy promotes replacing a series of physical prototypes by digital
the use of identical components in Renault and Nissan simulations and partial prototypes. The car's development
cars, across the full range of vehicle types and classes. time was reduced to 28 months, compared with
This requires the development of standardized 49 months for the previous generation – the shortest
components which meet the expectations of customers development time for a Renault vehicle to date. The total
of both companies. program outlay was thus kept down to 5953 million,
including 5630 million for capital expenditure.
Electric and electronic systems
Renault and Nissan jointly developed a new navigation

and communication system in 2004. The first European
application is on the Renault Laguna and the Nissan
Pathfinder, both launched in March 2005. It was also
introduced on the Renault Vel Satis in April 2005.
In Mexico, Renault can draw

on the resources of Nissan's
Aguascalientes plant.
Powertrains
Cooperation in the common use and development

of powertrains within the Alliance is accelerating.
The first engines developed jointly by Renault and Nissan
came to market in Japan in 2004 and in Europe in 2005.
• HR15DE (S2G 1.5) and MR20DE/MR18DE (M1G 1.8
and 2.0) gasoline engines:
- HR15DE on Nissan Tiida and Tiida Latio in July
2004, and on Nissan Note in December 2004;
- MR20DE on Nissan Lafesta in December 2004,
Serena in May 2005, and a Renault vehicle
at the beginning of 2006;
- MR18DE on Nissan Tiida and Tiida Latio in January
2005 and Clio III from March 2006.
• M1D (M9R) 2.0 diesel engine:
- M1D on Renault Laguna II in June 2005.
• TL4 (MT1) 240Nm six-speed manual transmission:
- TL4 (MT1) on Renault Modus, Mégane II and Clio III
in April 2005, and Nissan Tiida in November 2005.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 59
Cooperation and synergies

in manufacturing
Quality Logistics
The Renault-Nissan
Alliance
One of the major contributions of the Alliance is In 2004, Logistics acquired its own Cross-Company
the progress achieved in the quality of products Team (CCT) in an effort to capitalize on the close
and services by pooling the experience of both groups. geographical fit between the production plants operated
The Alliance Quality Charter, signed in 2002, defines by the two groups worldwide. The same year, synergies
joint rules and tools such as the Alliance Vehicle attained over $132 million. The Logistics CCT is made
Evaluation System, the Alliance New Product Quality up of six operational sub-teams focusing on overseas
Procedure and the Alliance Supplier Evaluation System. parts logistics, supply parts management, in-bound
The Charter has been applied to every project since logistics, material handling, out-bound logistics
January 2003. and common standard packaging. In 2005, four new
working groups were added, dedicated to strategy, cost
management for new projects, international resources
Manufacturing and human resources.
Renault and Nissan have actively exchanged

and implemented best practices in the area
of manufacturing. Renault upgraded the Renault
Production Way by introducing shop floor management
with the support of Nissan experts, including
workstation standardization, implementation of Total
Productive Maintenance (TPM), quality control, and so on.
Renault practices adopted by Nissan include methods
to evaluate workstation ergonomics and control costs.
The Harbour Report, which ranks the productivity
of European plants each year, rated five Renault plants
among the eight most productive in Europe.
The Alliance is now shifting to more direct exchanges
between Renault and Nissan plants through cross-visits
and common studies.
Renault-Nissan
Purchasing Organization (RNPO)
RNPO was established in 2001 as the first Alliance joint-venture
Nissan's factory in Barcelona, Spain
company, representing about 30% of Nissan's and Renault's
global annual purchasing turnover. The scope of joint
Process engineering is a major production site for Trafic.
purchasing activities was enlarged, increasing annual volume

from $21 billion at end-2002 to $33 billion in January 2005,
which represents 70% of the Alliance's purchasing turnover. The purpose of the Process Engineering CCT is to improve
During the same period, the percentage of Renault and Nissan Quality-Cost-Delivery tasks of vehicle process engineering.
common suppliers grew from approximately 20% to nearly It aims to reduce investments in particular in stamping
60% in 2005. In addition, RNPO's geographical scope is now dies, body assembly facilities and paint facilities. New
expanding from Japan, Europe and the US to all regions where
actions have been identified for 2006-2007:
Renault or Nissan have industrial operations.
Key purchasing activities have been defined as Core - Study of Renault tooling in Europe;
Processes, common to all RNPO, Renault and Nissan - Renault Samsung Motors opportunities;
Purchasing Departments, to reflect the best purchasing
practices of the Alliance. - Sharing the new process development list and seeking
RNPO has been an accelerator for the performances
new opportunities.
of Renault and Nissan in the different purchasing sectors
under its responsability. A recent survey shows that suppliers
strongly support RNPO as it brings value to the business.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:49 Page 60
Cooperation and synergies

in sales and marketing
Europe Mercosur
Within the Alliance, Renault and Nissan manage their own networks of separate In Brazil, Nissan set up its subsidiary in 2000. The back-
the partner with the sales outlets. "Common hubs" are a new dealer office functions are operated under Renault's responsibility.
strongest market presence organization based on a network of joint partners. A network of 64 Nissan dealers (end-2004) was formed
supports the development In January 2005, 2,877 Renault and Nissan primary with the support of the existing Renault dealers.
of the other by actively dealers were restructured and 525 Renault hubs Renault Argentina took over responsibility for Nissan
backing sales, marketing and 382 Nissan hubs were created, of which 170 are imports in 2001. In Peru, the local Nissan partner helped
and/or production. common. Renault to re-establish a sales presence.
Mexico and Central America
Nissan's strong presence in Mexico provided major United Kingdom

support for Renault's return to the Mexican and Central
American markets. At the end of 2004, 45 franchises
were built to Renault standards. The two partners have
also developed a new financing program for automobile France
loans to customers and the Renault and Nissan dealer Slovenia
networks.
In Central America, Nissan National Sales Companies
started Renault operations in Ecuador, El Salvador, Spain
Honduras, Panama and Nicaragua. In Guatemala,
Renault started activities in 2003 with an importer that Portugal
belongs to the main Nissan importer group. In Costa
Rica, FASA Group (Renault-Nissan's National Sales
Company in Panama) successfully took over Renault's
previous importer in April 2005.
1,148
North America
United States
Global sales and production sites

Mexico
Renault group plants (Renault, Dacia and Renault Samsung Motors)

Colombia
Nissan plants Body assembly Powertrain
Brazil (2)
Sales in thousands of vehicles - 2005
483
Renault 165
group Latin
318 America (1)
sales
Nissan Chile
sales
Argentina

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:50 Page 61
Asia-Pacific Africa, Middle East and Eastern Europe

The Renault-Nissan
Alliance
Renault sales are steadily growing in Asian countries In Morocco, the Renault importer acquired SIAB,
with support from Nissan's existing organization. Nissan's exclusive importer in the country. In Tunisia,
In Japan, Nissan dealers have been selling Renault the Renault National Sales Company (NSC) became
vehicles through Renault outlets since 2000. A total the new Nissan NSC. In South Africa, Renault and Nissan
of 77 exclusive or dual-brand dealer outlets have been have created a permanent local Alliance committee.
in operation since December 2005. In the Persian Gulf, Renault has been able to develop
In South Korea, Renault Samsung Motors produces its presence using Nissan's existing structures in Kuwait,
the SM7, SM5 and SM3, derived from Nissan vehicles. Bahrain and Qatar. Nissan National Sales Companies
The SM3 will also be exported under the Nissan brand also started distributing Renault models in the United
to Russia, Ukraine, the Gulf States and Latin America. Arab Emirates and Oman in September 2005.
In Australia, Renault vehicles are now imported In Romania, Renault imports and distributes Nissan
by Nissan Australia and 25 outlets are in operation. vehicles. Renault Nissan Bulgaria, created in September
In Malaysia, TCEC, a subsidiary of Nissan's Malaysian 2005, is responsible for importing and distributing
partner, is in charge of distributing Renault models. vehicles for the Renault, Nissan and Dacia brands.
In China, Renault and Nissan have both signed In Russia, Nissan Europe and Renault International
agreements to develop operations through partnerships Operations are actively pursuing back-office synergies.
with Dongfeng Motor.
Number of units sold worldwide - 2005 Alliance product planning

Renault group 2,533,428 The Product Planning CCT coordinates Alliance product
Nissan group 3,597,748 planning and defines a medium- and long-term vision for both
Renault-Nissan Alliance 6,131,176 groups' product and powertrain ranges. It aims to ensure
maximum market coverage while minimizing costs and expenses
and product cannibalization (i.e. direct competition between
Renault and Nissan for certain products in a given market).
2,192 The specific role of this CCT is to ensure that cooperation
1,744 within the Alliance does not threaten the Renault or Nissan
brand identities. The CCT also coordinates the exchange
of information on market surveys (customer surveys
and price/volume forecasts) in order to harmonize working
methods and to better anticipate future developments
484 for the Alliance.
391 870
Central and 4 Generally, Renault and Nissan develop and market their own
Russia 93 Eastern Europe (3)
vehicles. In some cases though, when brand image is not
Western involved and for specific products in certain markets, Renault
448 Europe and Nissan can go ahead and sell adapted products from their
866 Japan partner's lineup under their own brand name. Since 2002,
Nissan has assembled and sold in Mexico the Nissan Platina,
South Korea (RSM)
an adapted version of the Renault Clio sedan. In Europe,
Romania (Dacia)
China (4) Japan Renault Master and Renault Trafic were also adapted
Turkey
and launched as Nissan Interstar and Nissan Primastar.
Morocco
Pakistan
Egypt Taiwan
287 Thailand
103 Philippines
Middle East
184 and Africa
Kenya Malaysia
Indonesia
Zimbabwe 668
127
South Africa
541
Asia and Oceania
(1) Including Mexico.

(2) Including joint LCV plant.
(3) Including Russia and Turkey.
(4) Nissan and Dongfeng Motors have established a joint venture to produce and sell a vehicle line.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:50 Page 62
Nissan in 2005
An operating profit margin of 9.3%
In February 2006, Nissan Motor announced financial Globally, Nissan sold a total of 2,653,648 vehicles in the first
results for the first nine months of fiscal year 2005, nine months of fiscal year 2005, up 10.0% compared
ending March 31, 2006. with last year. Sales were higher in all major markets,
In the April-to-December 2005 period, net income after especially in the US, Europe and China. Net revenue rose
tax totaled ¥365.7 billion ($3.26 billion, 52.69 billion), 11.4% to ¥6.792 trillion ($60.59 billion, 549.91 billion).
down 2.0% compared with the previous year, due to Nissan’s operating profit from April to December totaled
one-time charges in the first quarter. The charges ¥631.2 billion ($5.63 billion, 54.64 billion), up 3.1%,
related to a change in Japanese accounting standards while its operating profit margin came to 9.3%. Ordinary
for the treatment of fixed assets and the introduction profit amounted to ¥605.5 billion ($5.40 billion, 54.45
of Nissan’s defined contribution pension plan. billion), down 1.1%. Nissan maintained its forecast
for the full fiscal year.
The successful Tiida model fueled

Nissan’s sales in China.
The Pathfinder SUV is a major hit

in the US.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:50 Page 63
Production: a 9.4% increase in calendar Sales: a strong rise in US sales

year 2005 in calendar year 2005
The Renault-Nissan
Alliance
Nissan's global production in 2005 increased 9.4% In Japan, Nissan's registrations in 2005 rose 2.2%
year-on-year to 3,508,005 units. to 759,725 units due to strong sales of new models
In Japan, production increased 0.8% to 1,451,212 units. released in the latter half of fiscal year 2004. Nissan's
Robust sales of new models introduced in fiscal year share of the domestic registered vehicle market
2004 offset slower sales of existing models and exports. amounted to 19.3%, up 0.5 percentage points.
Including minivehicles, Nissan's domestic sales rose
Overseas production climbed 16.3% to 2,056,793 units,
4.8% to 866,157 units. The company's share of the market
reaching the 2 million mark for the first time ever.
increased 0.7 percentage points to 14.8%.
Production in the US rose 10.8% to 835,946 units
helped by continued strong sales of the Altima mid- In the US, sales climbed 9.2% to a record 1,076,670 units,
sized sedan and increased sales of the Pathfinder SUV. the first time for calendar sales to reach the 1 million
In Mexico, production increased 11.5% to 362,591 units mark. Nissan brand sales rose 10% to 940,269 units
due to strong demand for the Sentra compact sedan supported by strong sales of the Altima mid-sized sedan
and other models. and Pathfinder SUV. Sales at the Infiniti luxury division
rose 4.1% to 136,401 units, boosted by strong sales
In Europe, output in the UK fell 1.4% to 315,297 units.
of the M45 luxury sedan (Fuga in Japan).
In Spain, the Pathfinder SUV and the Navara pickup
truck boosted output 35.5% to 193,604 units. In Canada, Nissan's sales rose 2.2% to 70,983 units,
while sales in Mexico remained largely unchanged
Production in General Overseas Markets (GOM) jumped
at 234,932 units.
54.8% to 349,355 units with production in China alone
rising 160.7% to 186,744 units due to strong demand In Europe, sales fell 0.6% to 540,945 units although
for the Teana luxury sedan and the Tiida sedan demand was strong for newly launched models,
and hatchback. including the Pathfinder SUV and the Navara pickup truck.
Nissan sales topped the 1 million mark in the US in 2005,

buoyed by the popular Altima sedan.
Nissan Value-Up
The Nissan Value-Up business plan has three commitments relating

to profitability, growth and return on investment.The commitments are:
· to maintain the top level of operating profit margin among global
automakers for each of the three years of the plan;
· to achieve global sales of 4.2 million units, measured in fiscal year
2008; and
· to achieve a 20% return on invested capital on average over
the course of the plan, excluding cash on hand.
Under the plan, Nissan will expand its worldwide presence, and Infiniti
will be launched as a global tier-one luxury brand. Furthermore,
through the end of fiscal year 2007, 28 all-new Nissan and Infiniti
models will be launched globally.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:50 Page 64
Combined performance
of the Alliance
Renault-Nissan Alliance worldwide sales
Sales of 6.1 million In 2005, worldwide sales totaled 2.5 million vehicles Total unit sales of the Renault-Nissan Alliance were up
vehicles placed for Renault and 3.6 million for Nissan. 345,000 or 6% from 2004.
the Renault-Nissan Alliance In Western Europe, where the automobile market was
among the world's top Renault-Nissan Alliance worldwide sales
practically flat, edging up a meager 0.1%, Alliance sales
four automakers in 2005. ‘000s of passenger cars and light commercial vehicles
declined by 94,000 units or 4.1%. But sales headed up
In this, it continued to draw
strength from the two 6,000 5,786 6,131 on other markets, showing rises of 92,000 units
partners’ complementary or 8.7% in North America, 40,000 units or 4.8% in Japan
positions in geographical 3,296 3,598 and 307,000 units or 19% in the rest of the world.
markets around the world. 4,000
Operating profit margin Worldwide sales by geographical region in 2005
represented 7.1% ‘000 units sold (% of total)
of combined revenues 2,000
and net income reached Japan
2,490 2,533 North America 14.2%
76.4 billion. 870
0 1,148
2004 2005 18.7% 31.3%

Rest of the world
Renault Nissan 1,921
The total of 6.1 million vehicles placed the Renault- Western Europe
35.8%
Nissan Alliance among the world's top four automakers 2,192
and represented a total market share of 9.8%,
with Renault taking 4.04% and Nissan 5.74%.
The world’s top 10 automotive groups in 2005
(Millions of passenger cars and light commercial vehicles - preliminary estimates)
12
11.2
11
10
8.2
8 7.8
6.1
6
5.2
4.3
4 3.6
3.4 3.3
2.0
2
0
General Ford/ Toyota Renault Volks- Daimler Hyundai/ PSA Honda Fiat
Motors * Mazda Nissan wagen Chrysler Kia
1 2 3 4 5 6 7 8 9 10
* GM + Daewoo + Suzuki + Isuzu.

EXE R.A. 2005 (1-92) GB.qxd 22/03/2006 16:02 Page 65
Renault-Nissan Alliance sales outside top three markets

The Renault-Nissan
Alliance
Outside the world's three largest automobile markets, ‘000 units sold 2005 2004 Change 2005/2004
which are North America, Western Europe and Japan,
‘000 units %
sales showed a general rise in all regions. Asia-Pacific
turned in a particularly strong performance, with China Central and Eastern Europe 484 414 70 16.9%
and South Korea the main sources of momentum, Middle East and Africa 287 248 39 15.7%
Latin and South America 483 449 34 7.6%
and Central and Eastern Europe, especially Romania
Asia-Pacific 667 503 164 32.6%
and Russia, also doing well. Total rest of the world 1,921 1,614 307 19.0%
Alliance key performance indicators
Since 2003, Renault has published a number of key Renault-Nissan Alliance revenues in 2005
performance indicators broadly quantifying
the economic significance of the Renault-Nissan r million 2005
Alliance1. Renault 41,338
Nissan1 66,072
Renault and Nissan cooperate in the fields of vehicle
Eliminations (2,260)
and powertrain development, purchasing, production
resources and distribution. In 2005, Renault sales Renault-Nissan Alliance 105,150
to Nissan were an estimated 51,060 million
and Renault purchases from Nissan an estimated
51,200 million. These intercompany transactions
have been eliminated to produce the revenue
indicator.
Operating margin, operating income and net income in 2005 (*)
In 2005, the operating profit margin of the Alliance
amounted to 57.4 billion, representing 7.1% r million Operating Operating Net
of combined revenues. margin income income3
Renault 1,323 1,514 1,178

Nissan2 6,100 7,856 5,186
Renault-Nissan
Alliance 7,423 9,370 6,364
(*) Intercompany transactions impacting the indicators are minor and have therefore not been
eliminated.
1 - The specificity of the Alliance means, among other things, that Renault and Nissan’s assets and liabilities cannot be combined. Consequently, these data
do not correspond to a consolidation as defined by generally accepted accounting principles. Information concerns the two groups in the period from January 1
to December 31, 2005 and is presented in accordance with the accounting policies applied by Renault in 2005. Data concerning Nissan reflect the impact
of the adjustments for fair value applied by Renault on the occasion of acquisitions in 1999 and 2002. Other indicators, in particular key balance sheet items,
will be published in Renault's registration document.
2 - Converted at the average exchange rate for 2005, which is r1 to ¥136.80.
3 - Renault net income shown above does not include Nissan's contribution, nor does the net income figure for Nissan include Renault's contribution.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:50 Page 66
Sustainable
development
The ecological design of the Modus dashboard earned Renault second prize in the "Ecoproduct for Sustainable Development" category in the 2005 Entreprises & Environnement award.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:50 Page 67
Sustainable development is central to Renault's strategy, at large. This reflects our conviction that ethics
which demonstrates a commitment with concrete action and business success converge over time.
in favor of employees, the environment and society

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:50 Page 68
What Renault stands for

Sustainable development – a cornerstone of strategy
Renault believes that ethics The Group is committed to ethical standards set out Renault has a Sustainable Development Committee
and efficiency converge in a Code of Good Conduct that covers essential priorities charged with defining policy directions, developing new
over time. Which is why including personal safety, protection of company assets, ideas and planning targeted action in cooperation
sustainable development compliance with the law and environmental standards, with global functions as well as suppliers. Following
is a central component circulation of information, use of company funds, the same approach, in 2005 Renault conducted
of our strategy participation in community life and conflicts of interest. an evaluation of all subcontractors, opening the way
for profitable growth. An Ethics and Compliance Committee oversees for new progress, and defined methods to help buyers
implementation. and quality control personnel assess suppliers'
The aim is to consolidate and promote commitment manufacturing sites. Similarly, purchasing working
to freedom, fairness, transparency and loyalty – values groups have offered proposals for concrete initiatives
essential to cohesion and performance, now and in the in areas ranging from emissions and road safety
future. to recycling, renewable resources and human
and employee rights. Renault works only with suppliers
Renault signed the Declaration of Employees'
who have undertaken to not use child labor or forced
Fundamental Rights with the International Metalworkers'
labor and to take necessary action for the prevention
Federation and other union representatives. The Declaration
of workplace hazards.
applies to all Group employees in all parts of the world,
including those at Dacia and Renault Samsung Motors.
Purchasing working groups
play an important role in involving
suppliers in sustainable
development policies.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:50 Page 69
Sustainable development
In 2001, Renault joined the UN Global Compact pour l'Environnement, for which Renault is sponsoring
and in 2003 followed this up with membership a sustainability prize to be awarded to a student
of the Forum des Amis du Pacte Mondial in France, in 2006, and Comité 21, which promotes progress
an association dedicated to the promotion of the Global towards the Agenda 21 goals adopted at the 1992 Earth
Compact's principles and recruitment of new companies Summit in Rio. Renault is also a member of several
to extend the network. European and international business forums.
Renault also adheres to OECD principles of corporate Rewarding the breadth of its commitments and
governance and the International Labor Organization's its pioneering role in a number of areas, Renault has
Declaration on Fundamental Principles and Rights won high marks from non-financial rating agencies
at Work. It applies Global Reporting Initiative indicators and is a component of ethical stock market indices
to assess its environmental standards, labor practices including Aspi Eurozone, Ethical Euro and Ethibel
and societal performance. Excellence Sustainability Index.
Other organizations with Renault's support include
Airparif, which monitors air quality in Paris, Entreprise
Gravimetric filters used in the production

of particulate filters help to make them
more efficient.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:50 Page 70
The environment
Environmental management in manufacturing
Renault's rapid More than 90% of the Renault group's manufacturing All employees have received training in the chemical
international expansion sites already have ISO 14001 environmental certification hazards of products used at the plant and suppliers
since 1996, involving and recently acquired businesses are moving have backed up the program with efforts to improve
the construction of new in the same direction, as the example of Dacia shows. their own environmental performances.
plants and modernization The main Logan site in Pitesti, Romania thus earned ISO
of acquisitions, has been 14001 certification – awarded by an independent
consistently backed organization – in 2005, confirming effective commitment Ongoing commitment to preservation
by commitment to a strategy for international expansion consistent with of the environment
to environmental standards high standards of environmental protection.
in both manufacturing Renault has defined five environmental priorities for all
Action taken in Romania has been exemplary in this its businesses, in all parts of the world:
projects and day-to-day
regard. Following its acquisition of Dacia, Renault • Preserve the natural heritage of local environments;
management.
launched a five-year plan to bring the plant up • Eliminate or reduce the impact of products and plants
to standard in partnership with local authorities. Soil on the environment;
decontamination was a main focus, involving in particular • Develop product and service offerings that are
the installation of an on-site unit for bioremediation compatible with environmental protection throughout
of hydrocarbon pollutants. Modernization of stamping their lifecycle;
presses and engine machining equipment, together • Implement environmental management throughout
with the replacement of compressors and cooling the company and open this to external monitoring over
the entire lifecycle;
circuits and other enhancements to production processes,
were associated with the introduction of a system to sort • Ensure the transparency of communications on
environmental issues.
and treat waste, ensuring progress in both manufacturing
efficiency and environmental standards.
ISO 14001 certification of the Pitesti site in Romania rewards

the efforts that began with the acquisition of Dacia.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:51 Page 71
New strengths for the Renault range, model after model

Renault developed its own method, dubbed "Lifecycle Clio III illustrates the benefits of this approach, with in-
Inventory", to analyze the vehicle's environmental depth environmental assessment providing the basis for
impact at every stage from design to recycling. real progress on its predecessor, Clio II. Lower fuel
The method was applied to Modus in 2005, after Scénic consumption and greenhouse gas emissions thus
in 2004. reflect the success of cross-functional cooperation
Environmental successes in the Renault range have between designers and suppliers in producing a lighter
included the reduction of noise induced by Clio III, now vehicle, optimizing operation of electrical equipment
a standard-setter for acoustics in its segment. This most and combustion, at the same time reducing friction
recent model in the Renault range has benefited from and enhancing aerodynamics. With its reduced emission
solutions implemented with Vel Satis to count among levels, Clio III complied with Euro IV standards
the select group of vehicles with output 3dB(A) below from launch for the protection of air quality in urban
the EU standard, which corresponds to a 50% reduction environments. Greenhouse gas emissions were continually
in noise levels. slashed across the entire range, with an average
of 149.3g/km of CO2 emissions recorded for average
The entire Renault range is built to allow recycling
vehicle sales in Europe in 2004.
of 95% of vehicle mass, but without any compromises
Made of renewable materials
on quality or equipment. Like its predecessors, Clio III and recycled plastics.
is partly made of recycled plastic, as is Modus,
which received the 2005 Entreprises & Environnement
award in the "Ecoproduct for Sustainable Development"
category.
Commitment to sustainable development has shaped
Clio III from its beginnings, with designers aiming
to minimize environmental impact at every stage
in its lifecycle. As the new version of a vehicle that is
emblematic of the Renault range, it naturally needed
to offer not only roomy comfort and high standards
of safety, but also a sound ecological balance.
Achieving that balance is a complex challenge, calling
for sometimes difficult trade-offs between contradictory
considerations. Reducing noise, for example, requires
additional equipment that increases the vehicle's mass
and, by the same token, fuel consumption. Which is why
Renault places such emphasis on detailed assessment
of all the parameters in a vehicle's lifecycle – from
production to recycling.
Environmental progress at Renault plants
Consumption of resources (1996-2005) Atmospheric emissions (1988-2005)

• Energy in MWh/veh.: - 25% • VOC in kg/veh.: - 61%
• Water in m3/veh.: - 56%
Waste output (1998-2005) Emissions to water (1996-2005)

• Hazardous waste in kg/veh.: - 30% • Toxic matter in kg/day: - 44%
• Organic matter in kg/day: - 45%
• Suspended solids in kg/day: - 52%

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:51 Page 72
Human resources policy

Skills driving performance
Worldwide business Renault owes its success to its people, making human Backing international expansion
expansion, the Alliance resources policy decisively important for performance Renault actively encourages the development
with Nissan, the emergence and sustainable development over the longer term. of multicultural teams as part of its worldwide
of new technologies expansion, and in 2005 international recruitment
and shifts in demographic Consolidating competitive strengths accounted for 24% of the total. The international mobility
trends have all contributed Renault sets ambitious targets for employment policies of staff members is managed at Group level to ensure
to increasingly rapid to back its international growth and face up to demographic the best allocation of competencies around the world.
change in attitudes challenges in Europe. From 2000 to 2005, Renault
and organizations. An HR Functional Task Team set up within the framework
recruited nearly 43,000 people worldwide, including of the Alliance with Nissan in October 2005 has been
10,000 in 2005 alone. New production teams were charged with benchmarking policies and stepping up
set up for Logan in Romania, Russia and Morocco, while the efforts put into targeted recruitment, personnel
in France and Spain recruits brought in additional skills exchange and intercultural training since 1999.
and made for quicker renewal of generations.
At the same time, Renault is developing Group-wide
In Europe, Renault is preparing to work with older human resources policies by stages, defining principles
employees while at the same time maintaining skills that apply to all employees worldwide in accordance
at the highest possible level through a combination with its Declaration of Employees' Fundamental Rights.
of initiatives that provide for adaptation of working In 2005, policies for annual performance and development
conditions and lifelong training. Other measures to maintain reviews, recruitment and relations with employee
team motivation and new rules for professional representatives were adopted, rounding out existing
development are also being implemented. Group-wide guidelines on languages, training, working
Finally, Renault aims to organize work schedules conditions, pension funds and employee share
to achieve a closer match with customer needs. ownership.
Agreements have thus been reached to allow for more Finally, in 2005 Renault continued work on its single
flexible working hours in France, Spain and South Korea. personnel database to ensure consistent administration
throughout the Group. At the end of the year, this database
covered 19 countries, representing more than 90,000
Renault human resources policies aim
employees out of a target group of 125,000.
to offer staff members in all parts
of the world the same access to training.

exe_ra_uk 29/03/06 9:08 Page 73
Expanding competencies
Since 2002, Renault has taken a systematic approach
to skills development based on forward planning
in a 10-year horizon, drawing on input from departments
and the HR function. Through this Skills Program,
Renault is able to identify critical competencies and take
appropriate actions, applying levers that include
recruitment, training, staff mobility and knowledge
management.
Training is thus a natural priority, and in this area
Renault has set itself the ambitious goal of offering
equivalent access to all employees. In 2005, more than
four employees in five benefited from training within
the Group.
Attracting and motivating talent

On a fiercely competitive labor market, Renault aims
to be an employer of choice for young talent. In this,
its three main priorities are cooperation with the education
system, initiatives to raise awareness of the automotive
industry among young people, and professional training.
Renault hosted more than 5,850 young people,
including more than 600 apprentices, 4,000 interns
and 106 corporate volunteers in 2005.
Staff mobility within the Group is also a priority.
At the end of 2005, Renault took a new initiative in this area
with the launch of the Careers@Renault intranet site
detailing career opportunities within given areas
of expertise or on a cross-functional basis.
Management quality is naturally always a focus
of attention, and Renault is involved in several initiatives
to underpin individual and team commitment to the highest
professional standards. In 2005, these included
extension of the 360° Feedback Program – which allows
managers to better understand how others perceive
their working methods – to 5,100 Group managers.
Special programs have also been set up to support A major communications drive
focused on Renault's appeal
managers and technicians at each stage in their career as an employer.
development at corporate, functional and regional levels.
Renault is actively committed to safeguarding employees'
health and ensuring working conditions that are a source
of motivation. Results are measured in site audits with
a seal of approval awarded in recognition of compliance.
Workstation ergonomics have been steadily upgraded
and the number of workplace accidents were nearly
halved in five years. Approval had been granted
or renewed at 53 manufacturing, administration,
engineering and sales sites at end-2005.
Finally, active dialogue with unions and other staff
representatives continued within the framework
of the Group Works Council and structures that exist
for this purpose in each country. Renault is committed
to high-quality, active and responsible relationships with
employee representatives at all levels of the business,
and in 2005 defined a Group-wide policy for this purpose.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:51 Page 74
Societal initiatives
Promoting sustainable mobility and road safety
Along with its broad Sustainable mobility means fulfilling people's desire
commitment to to travel at will, at a reasonable price and in optimum
environmental standards safety conditions, while at the same time preserving
and human resources, human, environmental and economic value for the present
Renault makes a special and future.
point of programs To this end, Renault has implemented an action plan
to improve people's daily steered by its Transport and Mobility Committee. Some
lives in the areas directly of the main actions are as follows:
related to its business.
• In 2005 Renault released a new navigation system
In this, sustainable
developed jointly with Nissan dubbed the Carminat
mobility and road safety
Navigation & Communication System. It features traffic
are main priorities.
information and communication functionalities that
enable drivers to optimize routes according to traffic
conditions and thereby reduce congestion and pollutant
and greenhouse gas emissions.
• A transport plan has been introduced at the Plessis-
Robinson site in France where 2,800 employees
work. As a result, 25% of staff used public transport
for their work-home journey in 2005.
• Renault has undertaken a study to better understand
the place of automobiles in the giant urban areas
of China, India and Brazil, and contributed to the World
Business Council for Sustainable Development's
Mobility 2030 project. The latter concerns both
developed and developing countries, and in 2005 led
to the adoption of an action plan on road safety
as part of the Global Road Safety Initiative of which
Renault is a member.
600 Renault staff members are dedicated

to improving automobile safety.
Rewarding the scale of resources
committed, Renault has the safest
range on the road.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:51 Page 75
Each year, 1.2 million people die and 50 million more

are injured in road accidents around the world. Renault
takes a holistic approach to safety that aims to protect
drivers and passengers of all ages in any seat in the vehicle,
but also pedestrians, bearing in mind every stage
in accidents. Renault’s onboard safety equipment
and systems are designed to:
• Prevent accidents, alerting the driver and passengers
to risks and promoting safe driving. Many models
include a tire pressure monitoring system and a speed
limiter.
Messages in posters
• Correct driver errors to avoid accidents with driving for Renault's
"Safety for All"
assistance devices such as ABS and Emergency program reflect new
Brake Assist functions. awareness among
young people.
• Protect passengers if an accident does occur.
Renault was the first to offer load limiters, and is now
the only manufacturer to line up eight models with top
five-star ratings in the Euro NCAP crash tests.
Because human error is the cause of most accidents,
Renault also takes the initiative in raising awareness
among future drivers. Renault’s "Safety for All" program,
which has already involved 7 million children and teenagers
in 19 countries, is the most extensive road safety
operation for young people offered by any vehicle
manufacturer.
Benefiting society at large

The Renault Foundation promotes French and European culture, enabling foreign students, especially from
Japan, to study in Paris and obtain advanced diplomas in France. In 2005, the Foundation made an active
contribution to the launch of a post-graduate program in Transportation and Sustainable Development
offered by Paris Tech, an association of 10 top engineering schools, and Ecole des Mines. Renault also
helps unskilled young people get training, offering internships followed by a contract of employment
providing for alternate periods of work and study. In South Africa, the Group is a partner of the Valued
Citizens program to promote education, mutual respect and a sense of responsibility to prevent violence.
Turning to sponsorship, in 2005 Renault contributed to a number of humanitarian organizations
and in February 2005 raised e1 million for the victims of the tsunami in Asia, following this up at year end
with a review of the work of beneficiary organizations:
• Care France, an NGO, helped revive fishing in Sri Lanka;
• UNICEF distributed funds for the reconstruction of 17 schools in Sri Lanka;
• The Red Cross dedicated the funds received to reconstruction of housing in the Maldives.
With the agreement of unions, Renault’s distribution outfit REAGROUP France deducts 2% of the profits
normally distributed to employees and makes a matching contribution to a humanitarian fund that provided
support for a multitude of micro-projects in 2005.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:51 Page 76
Sales performance
and financial results
The Group sold 2,533,000 passenger cars and light commercial vehicles worldwide in 2005.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 77
In 2005, Renault sold over 2.5 million vehicles, Operating margin reached 51.3 billion or 3.2%
a performance driven by particularly robust operations of revenues, while net income rose 18.7% to 53.4 billion.
outside Europe.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 78
Sales performance
Renault group sales worldwide
The Group's worldwide sales(1) in 2005 grew 1.7% • Group sales outside Europe climbed 21.2%
(43,000 units), despite a flat European(2) market that to almost 700,000 vehicles, or 27.2% of total
contracted by 0.3%. Growth was driven by the Group's worldwide sales, up from 22.8% in 2004. The Group
buoyant performance outside Europe, where sales rose advanced in all regions except Turkey, which was
120,000 units: down 1.4%, and Brazil. All three Group brands
• In Europe, Renault sold 1.8 million units, down contributed to sales growth:
5.4% on 2004, and remained the leading brand - Dacia’s sales surged 45.5% with the successful
for passenger cars and light commercial vehicles rollout of Logan;
(LCVs), with 10.2% of the market. In an automotive - in Korea, the range renewal program enabled
market that was broadly stable (down 0.3%) Renault Samsung Motors to grow sales by 40.4%;
and subject to strong price pressures, Renault
- and the Renault brand saw an 11.4% increase
maintained its selective commercial policy. Mégane
in sales volumes.
was again the top-selling car in Europe, despite
a half-point drop in market share to 4.2%. Sales
of Trafic and Master enabled Renault to confirm
its leadership in LCVs – a strategic segment –
with 14.4%. And with Logan, Dacia recorded
an impressive performance in Europe, selling
30,000 vehicles.
Renault group - Worldwide sales by brand
Passenger cars and LCVs
Renault 2005(*) 2004(*) % change

Europe 1,814,258 1,917,770 (5.4)
Worldwide excl. Europe 435,737 391,202 11.4
Renault total 2,249,995 2,308,972 (2.6)
Dacia
Europe 30,790 4,505 583.5
Worldwide excl. Europe 133,616 91,814 45.5
Dacia total 164,406 96,319 70.7
Renault Samsung
Renault Samsung total 119,027 85,046 40.0
Worldwide Group sales 2,533,428 2,490,337 1.7

O/w: - in Europe 1,845,048 1,922,275 (4.0)
- outside Europe 688,380 568,062 21.2
O/w: - Passenger cars 2,141,248 2,108,832 1.5
- Light commercial vehicles 392,180 381,505 2.8
(*) Provisional figures.
(1) The term “sales” includes registrations of new vehicles plus invoicing for certain geographical regions. In Western Europe, the figure includes sales
of 29,277 unregistered vehicles in 2005, versus 32,832 in 2004. In line with car industry practice, market share is calculated from previous years’
statistics from official bodies or, failing that, from data derived from carmakers’ internal product flows, hence sales.
(2) “Europe” refers to Western Europe (France, Germany, Italy, UK, Spain, Netherlands, Belgium, Luxembourg, Portugal, Switzerland, Austria, Sweden,
Finland, Norway, Denmark, Iceland, Ireland and Greece) plus Central Europe (Baltic States, Bosnia, Croatia, Czech Republic, Hungary, Macedonia,
Poland, Serbia-Montenegro, Slovakia and Slovenia).

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 79
Sales performance of the Renault brand

Sales performance and
financial results
Renault brand - Registrations (reg’s) and market share (mkt sh.) (*)
2005 2004
Reg’s Mkt sh. Reg’s Mkt sh.
Passenger cars and LCVs (in units) (as a %) (in units) (as a %)
France 666,050 26.8 689,048 28.4
Germany 183,567 5.2 181,114 5.2
UK 197, 366 7.1 212,490 7.3
Italy 162,489 6.6 179,703 7.2
Spain + Canary Islands 236,565 12.4 237,232 12.8
Belgium + Luxembourg 67,969 11.4 72,086 12.1
Western Europe 1,700,739 10.3 1,780,103 10.8
Poland 19,938 7.3 33,843 9.5
Central Europe 84,282 8.6 104,835 9.9
Europe 1,785,021 10.2 1,884,938 10.8
Argentina 37,597 10.4 24,884 9.3
Brazil 47,528 2.9 53,588 3.6
Turkey 107,806 15.1 112,781 16.3
(*) Provisional figures based on data supplied by official bodies or manufacturers.
Renault - Registrations in Europe(1) by model (in units) (*)
Passenger cars and LCVs 2005 2004

Twingo 78,288 87,274
Clio / Clio III 383,786 443,039
Modus 166,474 60,810
Thalia 12,849 19,728
Mégane / Mégane II 661,300 753,541
Laguna 106,959 133,783
Vel Satis 7,592 8,066
Espace / Espace IV 50,557 64,388
Kangoo 163,933 176,101
Trafic / Trafic II 74,768 66,928
Master / Master II 68,055 61,679
Mascott(2) / RWD Master 9,844 9,211
Other (Messenger, Avantime) 616 390
Registrations in Europe(1) 1,785,021 1,884,938
(1) Western and Central Europe.

(2) Mascott is distributed by Renault Trucks, a subsidiary of AB Volvo.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 80
Sales performance
Renault sales outside Europe - Worldwide Logan program
Sales outside Europe (*)
Passenger cars and LCVs 2005 2004 % change

Turkey 107,806 112,781 (4.4)
Eastern Europe(1) and Russia / CIS 58,824 33,288 76.7
Africa and Middle East 92,389 86,606 6.7
Central and Latin America 161,767 145,019 11.5
Asia-Pacific and Indian subcontinent 14,951 13,508 10.7
Total outside Europe 435,737 391,202 11.4
(1) ¨Eastern Europe¨ includes Romania, Bulgaria and Moldavia. In this region and in Russia / CIS, Renault sales are significant in Romania, Ukraine,
Bulgaria, Belarus and Russia.
Top 10 markets outside Europe (*)
Passenger cars and LCVs 2005 2004 % change

Turkey 107,806 112,781 (4.4)
Brazil 47,528 53,588 (11.3)
Argentina 37,597 24,884 51.1
Russia 29,176 16,126 80.9
Colombia 24,167 17,777 35.9
Mexico 24,086 24,091 0.0
Romania 23,968 12,156 97.2
South Africa + Namibia 19,112 14,152 35.0
Algeria 15,608 22,098 (29.4)
Morocco 12,364 11,352 8.9
Total top 10 markets
outside Europe41 341,412 309,005 10.5
Worldwide rollout of Logan program (*)
Total since
Dacia brand 2005 2004 Sept. 2004
Romania 88,275 20,274 108,549
Turkey 8,317 477 8,794
Central Europe 16,631 2,074 18,705
Eastern Europe 1,450 0 1,450
Western Europe 13,714 6 13,720
Africa, North Africa, Middle East 6,532 37 6,569
Asia-Pacific 309 0 309
Latin America (Guadeloupe, French Guiana, 162 0 162
Martinique)
Total Logan under the Dacia brand 135,390 22,868 158,258
Renault brand
Russia 7,057 0 7,057
Latin America (Colombia, Venezuela, 2,876 0 2,876
Ecuador)
Total Logan under the Renault brand 9,933 0 9,933
TOTAL LOGAN 145,323 22,868 168,191

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 81
Renault group - Worldwide production by model and by brand(1) (in units) (*)
financial results
Renault production 2005 2004

Twingo 90,674 91,309
Clio 434,034 577,732
Clio III 121,522 -
Modus 164,741 98,869
Logan 17,792 -
Kangoo 123,057 127,668
Mégane 24,042 27,755
Mégane II 777,454 870,087
Laguna II 112,365 144,358
Espace / Espace IV 50,521 64,429
Vel Satis 7,609 8,361
Total passenger cars 1,923,811 2,010,568
Kangoo Express 118,667 120,093
Twingo Van 957 952
Clio Van / Clio III 42,429 43,680
Modus Van 2,131 -
Mégane II Van 9,492 9,034
Master II 106,703 98,832
Mascott 15,255 12,891
Total LCVs(2) 295,634 285,482
Total Renault production 2,219,445 2,296,050
Dacia production
1300 - 7,184
Solenza 5,694 36,369
Logan 152,164 28,612
Total passenger cars 157,858 72,165
Pick-Up 1300 19,871 22,555
Total LCVs 19,871 22,555
Total Dacia production 177,729 94,720
Renault Samsung production

SM3 (passenger car) 30,091 19,411
Total Renault Samsung production 118,554 80,906
WORLDWIDE GROUP PRODUCTION 2,515,728 2,471,676
(1) Production data taken from:

- vehicle deliveries to sales entities for 2004 data;
- vehicles leaving the production line for 2005 data.
(2) Trafic production at the General Motors Europe plant in Luton, United Kingdom and the Nissan plant in Barcelona, Spain was not recorded
as Renault production.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 82
Financial performance
and outlook for 2006
Revenues up 1.9%(1)
Faced with difficult Group revenues increased 1.9% to total 541.3 billion Revenues by Division
business conditions in 2005. e million
in Europe, but strong 40,565 41,338 1.9%
• Revenues reported by the Automobile Division were 40,000
growth on other
up 2% at 539.5 billion on the back of increased
international markets, 38,681 39,458 + 2.0%
sales worldwide: 30,000
Renault reported
- on fiercely competitive markets in Europe,
an operating margin
a decline in unit sales was compounded by a less 20,000
equal to 3.2% of revenues
favorable product mix and lower prices as the Group’s
while net income reached
product range entered a less positive phase; 10,000
a record 73.4 billion.
- in the rest of the world, a rise in unit sales
combined with higher prices and an improved 0 1,884 1,880 (0.2)%
product mix led to increased revenues, with new 2004 2005 2005/2004
Renault Samsung models SM5 and SM7 leading 2005 scope change
the way, and Logan increasing its market share.
• The contribution from the Sales Financing Division, Automobile
down 0.2% to 51.9 billion, was nearly unchanged Sales Financing
as a lower average interest rate on loans to customers
was offset by a 4.6% rise in total average loans
outstanding.
Operating margin reaches 3.2%

Operating margin by Division
of revenues e million
Group operating margin came to 51.3 billion in 2005, 2,500

or 3.2% of revenues, compared with 5.2% in 2004: 2,115
2,000
• The Automobile Division reported operating margin 1,654
1,500 1,323
of 50.86 billion, compared with 51.65 billion in 2004.
Strong performances outside Europe were offset
1,000
by a marked decline in the contribution of European 858
sales, in turn due to: 500
- a less favorable product mix and geographical mix;
0 461 465
- lower sales price of vehicles;
2004(*) 2005
- a rise in both raw material costs and costs % of revenues 5.2 3.2
associated with the introduction of Euro IV
emission standards.
Furthermore, R&D costs increased due to international Automobile
expansion and the extension of the product lineup. Sales Financing
A drive to reduce purchasing costs failed to offset these
factors. (*) 2004 data presented under IFRS.
• The Sales Financing Division once again made

a healthy contribution to revenues, totaling 50.47
billion.
(1) On a consistent accounting basis.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 83
Net income up 18.7% to a record 73.4 billion(1)

financial results
The sharp rise in net income is the result of three Summary income statement
main factors: e million 2004(*) 2005
- a capital gain of 50.3 billion on the sale of land
Revenues 40,292 41,338
in Spain and divestment of an interest in Nissan
Operating margin 2,115 1,323
Diesel;
Other operating income
- an 50.7 billion rise to 52.6 billion in contributions and expenses (243) 191
from AB Volvo and Nissan. For Nissan, this includes Operating income 1,872 1,514
a non-recurring gain of 50.5 billion as the company Share in net income of Nissan 1,689 2,275
completed transfer of part of its pension Share in net income of AB Volvo 221 308
commitments to the Japanese government; Pre-tax income 3,464 3,784
- the 50.2 billion decrease in current and deferred Current and deferred taxes (561) (331)
taxes. Net income (Renault share) 2,836 3,367
Net income (Renault share) came to 53.4 billion,
Earnings per share (Z) 11.16 13.19
up 18.7% from 52.8 billion in 2004. (*) 2004 data presented under IFRS.
Earnings per share came to 513.19 per share,
compared with 511.16 in 2004.
Dividend up by over 33%

Outlook for 2006
The Annual General Meeting to be held on May 4, 2006
In 2006, Renault expects the automobile
will be asked to approve the payment of a dividend
market to decline slightly in Europe and to grow
amounting to 52.40 for 2005, compared with 51.80
in the other main countries in which the company
for 2004.
operates.
Renault will not benefit from major product
Sound financial structure launches in 2006, but will profit from the first
full year of sales of the new Clio in Europe,
The Automobile Division's net financial debt increased as well as the release of phase-two models
by 50.7 billion, with key items including: of Mégane, Espace and Trafic and the phase-
three Master. Outside Europe, two new station
- exercise of an option to acquire the Technocentre
wagon and van versions will be brought
for 50.6 billion; to market in the second half of 2006 to round
- marking to market of redeemable shares for 50.3 out the Logan line. Furthermore, action plans
billion. focusing on our cost competitiveness, defined
Without these two items, operating activities would have within the framework of the new business plan,
reduced the Division’s net financial debt by 50.2 billion. will be deployed and start to bear fruit in 2006.
On December 31, 2005, net automotive debt amounted Overall, against a backdrop of higher raw
to 52.3 billion or 11.5% of shareholders’ equity, material costs than in 2005, an extremely
compared with 9.9% at year-end 2004. competitive European market and continuous
international growth, Renault plans to achieve
(1) On a consistent accounting basis. an operating margin of 2.5% of revenues
in 2006 and stable unit sales compared
to 2005.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 84
Summary consolidated financial statements(*)
In application of regulation 1606/2002 passed on July 19, 2002 by the European Parliament and the Council
of Europe, Renault’s consolidated financial statements for 2005 are prepared under International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (lASB) at December 31, 2005
and endorsed for application by European Commission regulations published in the Official Journal of the EU
at December 31, 2005.
The comparative financial information for 2004 is presented under the same IFRS, in compliance with IFRS 1
on first-time adoption of IFRS. The impact of the transition to IFRS is described in Notes 3 and 34 of the Notes
to the Consolidated Financial Statements(*).
In the transition to IFRS, Renault opted for early application of IAS 32 and 39 on financial instruments as of January 1,
2004.
Consolidated financial statements
7 million 2005 2004(1)

Sales of goods and services 39,978 38,923
Sales Financing revenues 1,360 1,369
Revenues 41,338 40,292
Cost of goods and services sold (32,137) (31,090)

Cost of Sales Financing (926) (912)
Research and development expenses (2,034) (1,676)
Selling, general and administrative expenses (4,918) (4,499)
Operating margin 1,323 2 ,115
Other operating income and expenses 191 (243)
Operating income 1,514 1,872
Net interest income (expense) (95) (22)

Interest income 153 128
Interest expenses (248) (150)
Other financial income and expenses, net (232) (309)
Financial expense (327) (331)

Share in net income (loss) of associates 2,597 1,923
Nissan 2,275 1,689

Other associates 322 234
Pre-tax income 3,784 3,464
Current and deferred taxes (331) (561)
Net income 3,453 2,903
Net income - minority interests’ share 86 67

Net income - Renault share 3,367 2,836
Earnings per share(2) in euros 13.19 11.16

Diluted earnings per share(2) in euros 13.08 11.10
Number of shares outstanding (in thousands)
for earnings per share 255,177 254,168
for diluted earnings per share 257,342 255,435
(1) 2004 figures restated for compliance with IFRS.
(2) Net income - Renault share divided by number of shares stated.
(*) Renault's consolidated financial statements are available on the Finance section of www.renault.com.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 85
Consolidated balance sheets - December 31

financial results
ASSETS - 7 million 2005 2004(1)
NON-CURRENT ASSETS
Intangible assets 2,972 2,657
Property, plant and equipment 12,691 11,597
Investments in associates 12,452 9,713
Nissan 10,477 7,929
Other associates 1,975 1,784
Non-current financial assets 577 696
Deferred tax assets 309 565
Other non-current assets 358 403
Total non-current assets 29,359 25,631
CURRENT ASSETS
Inventories 5,862 5,142
Sales Financing receivables 20,700 19,807
Automobile receivables 2,055 1,878
Current financial assets 1,871 1,398
Other current assets 2,413 2,398
Cash and cash equivalents 6,151 5,521
Total current assets 39,052 36,144
Total assets 68,411 61,775
SHAREHOLDERS’ EQUITY
AND LIABILITIES - 7 million
Share capital 1,086 1,086
Share premium 3,453 3,453
Treasury shares (456) (508)
Revaluation of financial instruments 33 77
Translation adjustment 562 (216)
Other reserves 11,153 8,752
Net income - Renault share 3,367 2,836
Shareholders’ equity - Renault share 19,198 15,480
Shareholders’ equity - minority interests’ share 463 384
Total shareholders’ equity 19,661 15,864
NON-CURRENT LIABILITIES
Deferred tax liabilities 231 454
Provisions - long-term 1,754 2,166
Non-current financial liabilities 5,901 5,404
Other non-current liabilities 516 426
Total non-current liabilities 8,402 8,450
CURRENT LIABILITIES
Provisions - short-term 1,264 910
Current financial liabilities 2,547 2,447
Sales Financing debts 22,427 20,629
Trade payables 7,788 7,234
Current tax liability 215 197
Other current liabilities 6,107 6,044
Total current liabilities 40,348 37,461
Total shareholders’ equity and liabilities 68,411 61,775

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 86
Changes in consolidated shareholders’ equity
7 million Number Share Share Treasury Revaluation Translation Other Net Shareholders’ Shareholders’ Total
of shares capital premium shares of financial adjustment reserves income equity equity share-
(thousands) instruments (Renault (Renault (minority holders’
share) share) interests) equity
Balance at
January 1, 2004(1) 284,937 1,086 3,453 (519) (35) - 6,618 2,480 13,083 395 13,478
Allocation of 2003
net income - - - - - - 2,480 (2,480) - - -
Dividends - - - - - - (357) - (357) (35) (392)
Cost of stock
option plans - - - - - - 11 - 11 - 11
Change in
other reserves - - - 11 112 (216) - - (93) 8 (85)
Impact of
changes in
the scope of
consolidation and
capital increases - - - - - - - - - (51) (51)
2004 net income(1) - - - - - - - 2,836 2,836 67 2,903
Balance at
December 31, 2004(1) 284,937 1,086 3,453 (508) 77 (216) 8,752 2,836 15,480 384 15,864
Allocation of 2004
net income 2,836 (2,836)
Dividends - - - - - - (459) - (459) (60) (519)
Cost of stock
option plans - - - - - - 24 - 24 - 24
Change in
other reserves - - - 52 (44) 778 - - 786 32 818
Impact of
changes in
the scope of
consolidation and
capital increases - - - - - - - - - 21 21
2005 net income - - - - - - - 3,367 3,367 86 3,453
Balance at
December 31, 2005 284,937 1,086 3,453 (456) 33 562 11,153 3,367 19,198 463 19,661

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 87
Consolidated statements of cash flows

financial results
7 million 2005 2004(1)

Cash flows from operating activities
Net income 3,453 2,903
Cancellation of unrealized income and expenses:
Depreciation and amortization 2,705 2,752
Share in net income (loss) of associates (2,597) (1,923)
Dividends received from associates 516 552
Other unrealized income and expenses 393 748
Cash flow 4,470 5,032
Financing for final customers (12,998) (11,917)
Customer repayments 12,485 10,824
Net change in renewable dealer financing (304) (35)
Decrease (increase) in Sales Financing receivables (817) (1,128)
Bond issuance by the Sales Financing Division - 1,100
Bond redemption by the Sales Financing Division (1,045) (1,050)
Net change in other Sales Financing debts 3,119 667
Net change in other securities and loans of the Sales Financing Division (39) 227
Net change in Sales Financing financial assets and debts 2,035 944
Decrease (increase) in working capital (603) 427
Total 5,085 5,275
Cash flows from investing activities

Capital expenditure (4,018) (3,923)
Acquisitions of investments, net of cash acquired (59) (127)
Disposals of property, plant and equipment and intangibles 1,073 607
Disposals of investments, net of cash acquired, and other 100 34
Total (2,904) (3,409)
Cash flows from financing activities

Contributions from minority shareholders(2) (2) 18
Dividends paid to parent company shareholders (494) (383)
Dividends paid to minority shareholders (60) (35)
Purchases / sales of treasury shares 56 -
Cash flows with shareholders (500) (400)
Bond issuance by the Automobile Division 245 407
Bond redemption by the Automobile Division (388) (290)
Net increase (decrease) in other financial liabilities of the Automobile Division(3) (867) (998)
Net decrease (increase) in other securities and loans of the Automobile Division (149) 404
Net change in financial assets and liabilities of the Automobile Division (1,159) (477)
Total (1,659) (877)
Increase in cash and cash equivalents 522 989
Cash and cash equivalents: opening balance 5,521 4,276

Increase 522 989
Effect of changes in exchange rates and other changes 108 256
Cash and cash equivalents: closing balance 6,151 5,521
(1) 2004 figures for compliance with IFRS.
(2) Via capital increases or capital reductions.
(3) Renault repurchased part of its redeemable shares in 2004.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 88
Segment information - Consolidated income statements by Division
Sales Interdivision Consolidated

2005 - 7 million Automobile Financing transactions(2) total
Sales of goods 38,602 - - 38,602

Sales of services 856 520 - 1,376
Sales Financing revenues - 1,360 - 1,360
External sales 39,458 1,880 - 41,338
Interdivision sales(2) 147 268 (415) -
Revenues 39,605 2,148 (415) 41,338
Operating margin 858 465 - 1,323
Operating income 1,058 456 - 1,514
Financial expense (327)
Share in net income (loss) of associates 2,595 2 - 2,597
Pre-tax income 3,784
Current and deferred taxes (331)
Net income 3,453
2004(1) - 7 million
Sales of goods 37,459 - - 37,459
Sales of services 967 497 - 1,464
Sales Financing revenues - 1,369 - 1,369
External sales 38,426 1,866 - 40,292
Interdivision sales(2) 302 234 (536) -
Revenues 38,728 2,100 (536) 40,292
Operating margin 1,640 461 14 2,115
Operating income 1,412 446 14 1,872
Financial expense (331)
Share in net income (loss) of associates 1,923 - - 1,923
Pre-tax income 3,464
Current and deferred taxes (561)
Net income 2,903
(2) Interdivision transactions are carried out under near-market conditions.

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 89
Consolidated balance sheets by Division - December 31, 2005

financial results

ASSETS - 7 million Automobile Financing transactions(1) total
NON-CURRENT ASSETS
Property, plant and equipment intangible assets 15,215 540 (92) 15,663
Investments in associates 12,439 13 - 12,452
Non-current financial assets –
investments in non-controlled entities 2,107 17 (2,024) 100
Non-current financial assets – other securities,
loans and derivatives on financing operations
of the Automobile Division 477 - - 477
Deferred tax assets and other non-current assets 547 90 30 667
Total non-current assets 30,785 660 (2,086) 29,359
CURRENT ASSETS
Inventories 5,851 11 - 5,862
Customer receivables 2,164 21,219 (628) 22,755
Current financial assets 1,917 590 (636) 1,871
Other current assets 1,858 1,977 (1,422) 2,413
Cash and cash equivalents 4,277 1,909 (35) 6,151
Total current assets 16,067 25,706 (2,721) 39,052
Total assets 46,852 26,366 (4,807) 68,411
Shareholders’ equity 19,628 2,015 (1,982) 19,661
Deferred tax liabilities
and long-term provisions 1,724 217 44 1,985
Non-current financial liabilities 5,634 267 - 5,901
Other non-current liabilities 466 50 - 516
Total non-current liabilities 7,824 534 44 8,402
CURRENT LIABILITIES
Short-term provisions 1,191 73 - 1,264
Current financial liabilities 3,289 - (742) 2,547
Sales Financing debts - 23,003 (576) 22,427
Trade payables 7,853 19 (84) 7,788
Other current liabilities and current tax liability 7,067 722 (1,467) 6,322
Total current liabilities 19,400 23,817 (2,869) 40,348
Total shareholders’ equity and liabilities 46,852 26,366 (4,807) 68,411

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 90
Consolidated balance sheets by Division - December 31, 2004(1)

ASSETS - 7 million Automobile Financing transactions(2) total
NON-CURRENT ASSETS
Property, plant and equipment intangible assets 13,814 528 (88) 14,254
Investments in associates 9,713 - - 9,713
Non-current financial assets –
investments in non-controlled entities 2,446 12 (2,224) 234
Non-current financial assets – other securities,
loans and derivatives on financing operations
of the Automobile Division 462 - - 462
Deferred tax assets and other non-current assets 799 140 29 968
Total non-current assets 27,234 680 (2,283) 25,631
CURRENT ASSETS
Inventories 5,130 12 - 5,142
Customer receivables 1,988 20,146 (449) 21,685
Current financial assets 1,498 526 (626) 1,398
Other current assets 1,750 1,964 (1,316) 2,398
Cash and cash equivalents 4,451 1,074 (4) 5,521
Total current assets 14,817 23,722 (2,395) 36,144
Total assets 42,051 24,402 (4,678) 61,775
Shareholders’ equity 15,833 1,814 (1,783) 15,864
Deferred tax liabilities
and long-term provisions 2,339 236 45 2,620
Non-current financial liabilities 5,389 407 (392) 5,404
Other non-current liabilities 375 51 - 426
Total non-current liabilities 8,103 694 (347) 8,450
CURRENT LIABILITIES
Short-term provisions 846 64 - 910
Current financial liabilities 2,981 - (534) 2,447
Sales Financing liabilities - 21,226 (597) 20,629
Trade payables 7,307 - (73) 7,234
Other current liabilities and current tax liability 6,981 604 (1,344) 6,241
Total current liabilities 18,115 21,894 (2,548) 37,461
Total shareholders’ equity and liabilities 42,051 24,402 (4,678) 61,775

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 91
Consolidated cash flow statements by Division

financial results

2005 - 7 million Automobile Financing transactions(2) total
Net income 3,320 313 (180) 3,453
Depreciation and amortization 2,658 103 (56) 2,705
Share in net income (loss) of associates (2,595) (2) - (2,597)
Dividends received from associates 516 - - 516
Other unrealized income and expenses 206 186 1 393
Cash flow 4,105 600 (235) 4,470
Decrease (increase) in Sales Financing receivables - (1,009) 192 (817)
Net change in Sales Financing financial assets
and debts - 1,587 448 2,035
Decrease (increase) in working capital (533) (40) (30) (603)
Cash flows from operating activities 3,572 1,138 375 5,085
Purchases of intangible assets (876) (4) - (880)
Purchases of property, plant and equipment (2,903) (288) 53 (3,138)
Disposals of property, plant
and equipment and intangibles 900 173 - 1,073
Acquisition of investments, net of disposals and other 77 (36) - 41
Cash flows from investing activities (2,802) (155) 53 (2,904)
Cash flows with shareholders (500) (180) 180 (500)
Net change in financial assets and liabilities
of the Automobile Division (545) - (614) (1,159)
Cash flows from financing activities (1,045) (180) (434) (1,659)
INCREASE (DECREASE) IN CASH

AND CASH EQUIVALENTS (275) 803 (6) 522
2004(1) - 7 million
Net income 2,725 271 (93) 2,903
Depreciation and amortization 2,662 104 (14) 2,752
Share in net income (loss) of associates (1,923) - - (1,923)
Dividends received from associates 552 - - 552
Other unrealized income and expenses 580 162 6 748
Cash flow 4,596 537 (101) 5,032
Decrease (increase) in Sales Financing receivables - (1,132) 4 (1,128)
Net change in Sales Financing financial assets
and debts - 892 52 944
Decrease (increase) in working capital 532 (74) (31) 427
Cash flows from operating activities 5,128 223 (76) 5,275
Purchases of intangible assets (788) (3) - (791)
Purchases of property, plant and equipment (2,901) (305) 74 (3,132)
Disposals of property, plant
and equipment and intangibles 490 160 (43) 607
Acquisition of investments, net of disposals and other (85) (8) - (93)
Cash flows from investing activities (3,284) (156) 31 (3,409)
Cash flows with shareholders (400) (100) 100 (400)
Net change in financial assets and liabilities
of the Automobile Division (464) - (13) (477)
Cash flows from financing activities (864) (100) 87 (877)
INCREASE (DECREASE) IN CASH

AND CASH EQUIVALENTS 980 (33) 42 989

EXE R.A. 2005 (1-92) GB.qxd 21/03/2006 14:52 Page 92
Photo credits:
B. Asset: p. 37,
J. Bailey: p. 31,
O. Banet: cover, pp. 32, 33,
B. Barbey (Magnum): cover, pp. 34-35, 44, 45, 49, 54-55, 72,
A. Bernier: pp. 3, 9, 22, 23, 66-67,
C. Cabrol: pp. 5, 7, 16,
P.D. Casteran: pp. 8, 20-21, 24,
S. Charonat: p. 37,
A. Chatelain: p. 31,
F. Christophoridès: p. 37,
C. Cugny: pp. 33, 46, 47,
P. Curtet: flap, pp. 22, 33, 52,
Dingo: pp. 26, 27, 76-77,
DPPI: pp. 50, 51, 52,
D. Dumas: pp. 32, 33,
G. Esmieu: p. 32,
S. Foulon: pp. 9, 27,
S. Franklin (Magnum): pp. 2, 17, 59,
E. Gijon-Garcia: p. 27,
H. Gruyaert: cover,
R. Kalvar: p. 16,
K Incentive: p. 41,
A. Kouzmine: p. 2,
J.F. Lange: p. 69,
LAT Photographie: pp. 3, 50,
A. Larocca: p. 40,
T. Le Cam: p. 68,
B. Levy: p. 40,
B. Martinez: p. 31,
S. Millier: p. 11,
PhotoDisc: p. 71,
Photothèque Dacia: p. 33,
Photothèque Nissan: pp. 56, 57, 62, 63,
Photothèque Renault: pp. 30, 31, 32, 33, 39, 43, 45, 47, 49, 75,
Photothèque Renault Samsung Motors: pp. 25, 28, 33,
Photothèque Renault Trucks: p. 53,
F. Pitchal: p. 2,
Publicis Consultants RH: p. 73,
Rens Van Mierlo: pp. 12-13,
C. Sasso-Toma: p. 15,
P. Sautelet: cover, pp. 27, 28, 30,
Spingler: p. 42,
Studio Pons: pp. 3, 18, 27, 29, 36, 39, 40, 70, 74,
Wake Upp: p. 24,
P. Zachmann (Magnum): cover, pp. 38, 46, 48, 58.
Conception et réalisation : alliance design

Key fig
Worldwide
Revenues: S
Operating m
Net income
Dividend pe
Workforce:
RENAULT
2005 RENAULT ANNUAL REPORT
13-15 Quai Le Gallo

92513 BOULOGNE-BILLANCOURT Cedex
FRANCE
Tel.: +33 (0)1 76 84 04 04
www.renault.com
INVESTOR RELATIONS DEPARTMENT

CORPORATE COMMUNICATIONS DEPARTMENT
AR 2005 EN
2005 ANNUAL REPORT

Renault - Fiscal Year 2005

Uploaded by

Copyright:

Available Formats

Renault - Fiscal Year 2005

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Renault - Fiscal Year 2005

Uploaded by

Copyright:

Available Formats

DOC COUV R.A. 2005 GB.

qxd 21/03/2006 17:52 Page 1

Key figures 2005

(1) Subject to decision of Annual General Meeting on May 4, 2006.

2005 ANNUAL REPORT

Key figures 2005

(1) Subject to decision of Annual General Meeting on May 4, 2006.

Egeus – a concept car showcasing Renault's creative flair.

Key figures 2005

2001 2002 2003 2004 2005 15%

Europe (*) 11.1 11.3 11.1 10.8 10.4 99.4%

Group sales worldwide (units)

Annual change Renault share + 13.1% + 22.2% + 12.5% + 11.9%

Simplified structure of the Renault group at December 31, 2005

Annual change Renault share + 13.1% + 22.2% + 12.5% + 11.9%

Dividend per share Workforce(1)

150,000 137,108 127,864

(1) Excluding employees under early retirement plan

A competitive international group 34

The Renault-Nissan Alliance 54

Sales performance and financial results 76

2005 Renault Annual Report 1

Renault's new standard-bearer in the sub-compact

Just four years after its return to Formula 1, Renault

2005 Renault Annual Report 3

2005 was an historic year

Logan made its debut on

On March 21, 2005 representatives of Renault

2 2005 Renault Annual Report

From the President and CEO

4 2005 Renault Annual Report

From the President

2005 Renault Annual Report 5

Renault Commitment 2009

Renault Commitment 2009:

6 2005 Renault Annual Report

Target dividend growth

2005 Renault Annual Report 7

Renault Commitment 2009

Renault's new Clio III was voted

8 2005 Renault Annual Report

Product plan 2006-2009: 26 new models

The Altica concept car

Renault will continue to optimize traditional powertrains.

2005 Renault Annual Report 9

Renault Commitment 2009

Resources to achieve Renault Commitment 2009

10 2005 Renault Annual Report

Cross-functional management focused on customer satisfaction and driven by profit

2005 Renault Annual Report 11

Louis Schweitzer Carlos Ghosn Yves Audvard

Number of shares: 87,845 Number of shares: 1,700 Number of shares: 6

Michel Barbier Alain Champigneux François de Combret

Charles de Croisset Jean-Louis Girodolle Itaru Koeda

Number of shares: 1,000 Number of shares: none(1) Number of shares: 500

12 2005 Renault Annual Report

Marc Ladreit de Lacharrière Dominique de La Garanderie Bernard Larrouturou

Number of shares: 1,020 Number of shares: 150 Number of shares: 1(1)

Henri Martre Jean-Claude Paye Franck Riboud

Number of shares: 328 Number of shares: 20 Number of shares: 331