Isuzu KSA Info

1. 11st April 2009
Renault Feasibility Study
Summary

2. 2
Agenda
• Aim & Purpose
• Success Factors
• KSA Passenger car market
• Renault past performance.
• Alissa Marketing Strategy
• Organization chart
• Challenges and solutions
• Financials
• Why Renault for Alissa?

3. 3
Aim
• Acquire Renault franchise as an exclusive dealership in
the kingdom.
Purpose
• Maximize shareholder business profitability.
• Optimize the utilization of the group infrastructure
(economies of scale)
• Business Diversification.
– Capture the available opportunity “Renault exclusive
dealership”.
– Balance and mitigate current franchise uncertainty.

4. 4
Success Factors
Renault
• Offering wide range of reliable products that are adapted to KSA environment
– Product test has been conducted in the region for the last 2 years for Passenger cars and Light
Commercial Vehicles
• Professional and quality standard after sales service to meet the need of the target
consumer
– Technical team reside in the region (in Dubai) to assist and serve the local dealers.
– High ratio of spare parts availability.
• Marketing Support “Renault market strategy)
– Detailed re-launching marketing strategy in the region “include re-building image, Brand positioning
and brand awareness)
– Competitive price that are capable to acquire reasonable market share.
– Financial support from Manufacturer for Trade-in programs to acquire maximum re-sale value.
– Focused and innovative marketing programs “Customer First Program”
– Utilizing Alissa expertise in the market place.

5. 5
Success Factors Cont…
Alissa
Alissa Heritage as a pioneer in Saudi Auto market backed by experienced executive board
• Sales “strong network with complete infrastructure”
• Distribution “ attractive customer base through out the kingdom”
• Dedicated experienced management and staff.
• Reliable fleet and retail customer data base.
• Professional outdoor sales resources.
• State - of – the - art IT and management system.
• After sales service “Facilities, technical skills, and point of sales”
• Strong foundation of Customer Relationship Management.
• Customer financial offering (Leasing, Installment,...etc) for retail and fleet
customers, through Al-Yusr and other financial institutions
• Operational leasing, Daily rental through BTC and other Rent-A-Car companies.
• Retail distribution channels through Autostar and other sub-dealers.

6. 6
KSA Passenger car market
• Low penetration of vehicles / person, favorable demographics and
macro economic factors are contributing to continued growth in the
automotive sector.
• Introducing attractive new models will impact significantly sales and
market share.
• Subcompact and compact cars are growing in the last 2 years by
16% .
• The market leader in Passenger car sector is 2.4 – 3.5 cc engine cars
“Camry alone sold 47,108 units in 2008.”
• It is expected that female will be allowed to drive then Subcompact
and Compact cars will be the first choice for this segment.

7. 7
Passenger car Market share/brand 2008
0
50000
100000
150000
200000
250000
2008
44.4%
3.9%
2.7% 2.3%1.9%
7.73%
1.28%0.13%
17%
0.3%
10%
4.3%
• Renault Market share in 2008 0.3%
• Hyundai is ranked number 3 in 2008

8. 8
Passenger car growth analysis / brand 2008 VS 2007
0
20000
40000
60000
80000
100000
120000
2007
2008
13%
21%
15% 16%-45%
-25%
92% -6%
2%
43%
4%
• Renault growth was 43% in 2008
• Daihatsu growth was 92% last year since the franchise transferred to A.J

9. 9
Subcompact cars growth analysis 2007 vs 2008
0
5000
10000
15000
20000
25000
Yaris Sunny Lancer Civic Swift Sirion Aveo Accent
2007
2008
24%
10%-1%
91%
59%
23%
4%
7%
• Subcompact cars sales are growing in all brands.
• Yaris is growing 24% in 2008

10. 10
2.4 cc cars growth analysis 2007 vs 2008
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Camry Accord Altima Epica Mazda 6 Sonata Elantra
2007
2008
10%
20%
19%
-23% -63%
-4%
16%

11. 11
2,300 4,925 6,600 7,129 7,700
491,573
506,320
521,509
537,155
553,269
-
100,000
200,000
300,000
400,000
500,000
600,000
2009 2010 2011 2012 2013
Renault
Total
0.47%
1.33%
1.27%
1.39%
0.97%
Renault Market share forecast (assuming market growth at 3%)

12. 12
Koleos Market Share Forecast
250
640 819 885 956
14,988
15,437
15,900
16,377
16,869
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2009 2010 2011 2012 2013
Rav4
Santafi
Koleos
Total segment
1.67%
4.15%
5.15%
5.4%
5.67%

13. 13
Safrane Market Share forecast
48,521 49,977 51,476 53,020 54,611
600 1,450 1,700 1,836 1,983
100,927
103,954
107,073
110,285
113,594
-
20,000
40,000
60,000
80,000
100,000
120,000
2009 2010 2011 2012 2013
Camry
Sonata
safrane
Total segment
0.59%
1.39%
1.59%
1.66%
1.75%

14. 14
Logan Market Share Forecast
20,908 21,535 22,181 22,847 23,532
700 1,700 2,176 2,394 2,538
57,463
59,187
60,962
62,791
64,675
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2009 2010 2011 2012 2013
Yaris
Accent
Logan
Total segment
1.22%
2.87%
3.57% 3.81%
3.92%

15. 15
Megane Market Share forecast
33,653 34,663 35,703 36,774 37,877
150 350 447 484 522
62,498
64,373
66,304
68,294
70,342
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2009 2010 2011 2012 2013
Corolla
Civic
Megane
Total segment
0.24%
0.54%
0.67%
0.71% 0.74%

16. 161st April 2009
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2009 2010 2011 2012 2013
Koleos
safrane
Logan
Megane
Renault
0.97%
1.27%
1.33%
1.39%
1.22%
3.92%
3.81%
3.57%
2.87%
0.47%
0.59%
1.39%
1.59%
1.66%
1.75%
1.67%
0.24%
0.71% 0.74%
0.54%
0.67%
4.15%
5.15% 5.4%
5.67%
Renault products Market share (assuming 3% growth in Auto market)

17. 171st April 2009
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2009 2010 2011 2012 2013
Koleos
safrane
Logan
Megane
Renault
1.03%
1.38%
1.49%
1.61%
1.25%
4.55%
4.29%
3.90%
3.05%
0.48%
0.61%
1.48%
1.73%
1.87%
2.02%
1.72%
0.25%
0.8%
0.86%
0.58% 0.74%
4.4%
5.63%
6.08% 6.57%
Renault Market share (assuming no growth in Auto market)

18. 18
Sales Growth Forecast summary / units
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2007 2008 2009 2010 2011 2012 2013
sales
43%
90%
80%
34%
8%
8%

19. 19
Price Comparison
30 35 40 45 50 55 60 70 80 90
1.3 – 1.6cc
Toyota
Nissan
Honda
Renault
Hyundai
Mazda
Chevrolet
Mitsubishi
Citroën
Peugeot
Daihatsu
Yaris Corolla
Camry
Getz
Logan PE Megane 1.6
Mazda 3
Aveo
Sirion
Retail price
(kSR)
civic
Tiida
1.3 – 1.6 cc 1.6 – 2.0 cc 2.0 – 2.4 cc
Logan Se
2.0– 2.7 cc1.6 -2.0 cc
2.5 4x4
Rav4
Santa fi
Koleos
Koleos 4x2
Accord
Mazda 6
Sonata
Safrane Safrane
Safrane
Epica
Lancer
Megane 2.0
LCV
LCV
LCV
LCV

20. 20
Renault Current Performance overview in KSA
• Low sales volume and very small market
share.
• Resale values is lower than competitors’.
• Perception of low quality after sales service.
• Perception of expensive spare parts and non-
availability.
• Weak brand image.

21. 21
Alissa Renault Marketing Strategy in KSA
• Re-launch Renault brand.
• Positioning Renault brand.
• Leverage Renault image.
• Gain sizable market share.
• Promote Renault brand as “modern French design
backed by Japanese technology”.
• Restore the customer confidence in Renault after sales
service.

22. 22
Market Segmentation
• Retail
– Youth:
• Includes males aged from 20 to 34 years which represent 29.3% of the population.
• This segment is price oriented due to low purchase power (limited income).
• Students, employees, expatriates and nationals who prefers economic cars, modern designs.
• Sport cars and coupe for niche segment.
– Family:
• Small and mid size families.
• Focus on safe, reliable vehicles that matches the Saudi environment.
• Fleet
– Rent-A-car companies: Operational leasing, and daily rental.
– Firms: Which purchase cost-effective cars, at low service cost and low price.
– Government: ministries, police, civil defense and healthcare sector.....etc.
– Sub-dealers

23. 23
Promotion strategy
• Tactical campaigns to create demand and expand sales.
– Above the line activities.
• Newspaper advertisement, prints , banners, brochures.
• E-marketing activities.
• Radio spots
• Outdoor marketing activities.
– Below the line activities.
• Direct mail for fleet customers
• Personal promotion.
• Sales promotion. “seasonal offers”
• Public relation activities:
– A press release kit will be sent to all major media outlets in Saudi
Arabia, highlighting:
• What is Renault?
• New Renault products.
• After sales service facilities in Saudi Arabia.
– Events: launching, fleet events….etc.

24. 24
Distribution Strategy
Start up:
• 4 dedicated showrooms for Renault
– 2 In Riyadh "Khorais Road (main Auto Market) and Al Shifa area”
• Shifa Showroom will be opened in 2010
– 1 In Dammam "Auto mall”
– 1 in Jeddah "Madina Road"
• 12 Autostar showrooms kingdom wide
– Dedicated branded area for Renault vehicles in Hubtowns.
• 8 Autostar workshops kingdom wide with dedicated
reception area for Renault.
• More than 35 parts outlets kingdom wide.

25. 251st April 2009
Geographic Coverage
Renault presentation
Renault existence

26. 26
• Used car sales
– 12 Autostar used car centers kingdom wide.
• Financing
– Retail and fleet financing facilities through our
sister Company Al Yusr.
– Operational leasing and daily rental through our
sister company BTC.
Distribution Strategy Cont…

27. 27
Distribution Strategy Cont…
Future expansion:
• When sales volume exceeds 10,000 units per annum
– 3S facilities dedicated for Renault in the 3 main cities
– Opening new showrooms dedicated for Renault according
to new opportunities in the market.
– Renault will be part of all Autostar showrooms, service
workshops and parts outlets kingdom wide.

28. 28
Sales strategy
• Dedicated fleet and retail team for Renault Kingdom
wide in the three main cities.
• Focus on LCV range and Logan for fleet segment.
• Focus on Safrane and Koleos for retail segment.
• Re-launch of “customer first” program.
• Trade-in program.

29. 29
Organization Chart

30. 30
Challenges & Solutions
Challenge
• The Bad brand image in the market
Solution
• Re-launch Renault brand in KSA by Marketing activities.
• Financial budget allocated by manufacturer for re-launch events.
• Leverage Renault brand image by introducing new models to the
market adapted to the Saudi environment.
• Communicate “What is Renault?” In our re-launch activities:
– Over 110 years in Automotive market
– Owns 44% of NISSAN worldwide.
– French design, Japanese technology
– New Era for Renault products to cope with GCC requirements.

31. 31
Challenge
• Perception of low service quality
Solution
• Re-launch “Customer First” program for service.
• Communicate the new wide network of service
workshops kingdom wide:
– Now…you can serve your Renault in 8 workshops kingdom
wide and more…
• CRM to ensure high customer service for Renault users.
Challenges & solutions Cont…

32. 32
Challenge
• Perception of expensive and non-availability of parts
Solution
• Communicate our over 35 parts outlets kingdom wide.
• Restructuring price list of parts with the manufacturer.
• Communicate price comparison of parts and service
between Renault and other brands.
Challenges & solutions Cont…

33. 33
Challenge
• Low re-sale value.
Solution
• Launch Trade In campaign with special
financial support by manufacturer.
• Extended warranty for used car.
Challenges & Solutions Cont…

34. 34
P&L statement “With average GP% (8.7%)”
Total Sales 2009 2010 2011 2012 2013
Units Sold 1901 4925 6599 7129 7708
Net Sales 100,737,757 260,331,104 352,856,101 381,456,104 412,291,411
Net COS (COS less Incentive) 91,913,655 237,630,110 322,099,643 347,944,347 376,174,022
Gross Profit 8,824,102 22,700,994 30,756,458 33,511,757 36,117,389
GP % 8.76% 8.72% 8.72% 8.79% 8.76%
GP Per Vehicle 4,642 4,609 4,661 4,701 4,686
Operating Expenses 5,069,677 12,187,423 13,879,942 14,315,427 15,184,626
Finance 589,023 1,351,455 245,393 (280,697) (912,393)
Operating Profit 3,165,402 9,162,116 16,631,123 19,477,026 21,845,156
Net Profit 1,793,503 5,701,681 12,041,040 14,379,853 16,564,179
Break Even (Value Sales) 194,945,206.73 214,714,241.11 217,773,764.61 223,206,070.40
Break Even ( Qty ) 3,688 4,016 4,070 4,173

35. 35
Balance Sheet “With average GP% (8.7%)”
2009 2010 2011 2012 2013
ASSETS
Current Assets
Total Current Assets 98,218,269 109,058,680 114,489,148 127,345,061 148,124,382
Non-Current Assets
Total Non-Current Assets 2,770,000 1,910,000 1,050,000 440,000 130,000
Total Assets 100,988,269 110,968,680 115,539,148 127,785,061 148,254,382
LIABILITIES & EQUITY
Current Liabilities
Total Current Liabilities 78,666,527 81,667,161 73,933,032 71,970,713 76,235,294
Non-Current Liabilities
Total Non-Current Liabilities 525,120 1,144,640 1,299,520 2,042,944 2,860,710
Total Liabilities 79,191,647 82,811,801 75,232,552 74,013,657 79,096,004
Equity
Total Equity 21,793,503 28,065,353 40,170,160 53,579,790 68,924,417
Total Liabilities and Equity 100,985,150 110,877,153 115,402,712 127,593,447 148,020,421

36. 36
Ratios “With average GP% (8.7%)”
2009 2010 2011 2012 2013
Efficiency
Gross Margin % 8.76% 8.72% 8.72% 8.79% 8.76%
Inventory Turnover - Months 2.59 2.71 2.16 2.16 2.40
Collection Ratio - Months 4.6 3.0 2.2 2.0 1.9
Operating Cycle Period - Months 6.15 4.69 3.36 3.20 3.28
Debt Management
Bank Debt to Equity 1.7 1.4 0.7 0.4 0.2
Total Debt to Equity 3.63 2.95 1.87 1.38 1.15
Total Debt to Assets 0.78 0.75 0.65 0.58 0.53
Liquidity Management
Current Ratio 1.25 1.34 1.55 1.77 1.94
Quick Ratio 0.75 0.68 0.76 0.90 0.96
Total Debt to Current Assets 0.81 0.76 0.66 0.58 0.53
Return
Return on Equity (ROE) 16.5% 20.3% 30.0% 26.8% 24.0%
Return on Capital Employed (ROCE) 5.9% 8.3% 17.5% 19.1% 20.1%
Return on Assets (ROA) 0.59% 5.14% 10.42% 11.25% 11.17%

37. 37
P&L statement “With average GP% (7%)”
Total Sales 2009 2010 2011 2012 2013
Units Sold 1901 4925 6599 7129 7708
Net Sales 99,072,828 255,767,679 346,727,687 374,784,697 405,096,950
Net COS (COS less Incentive) 91,913,655 237,630,110 322,099,643 347,944,347 376,174,022
Gross Profit 7,159,173 18,137,569 24,628,044 26,840,350 28,922,928
GP % 7.23% 7.09% 7.10% 7.16% 7.14%
GP Per Vehicle 3,766 3,683 3,732 3,765 3,752
Operating Expenses 4,808,212 11,497,533 12,954,865 13,313,513 14,391,403
Finance 604,603 1,644,622 849,074 661,320 411,719
Operating Profit 1,746,359 4,995,413 10,824,104 12,865,517 14,119,806
Net Profit 374,460 1,534,978 6,234,021 7,768,344 8,838,829
Net Profit Percentage 0.38% 0.60% 1.80% 2.07% 2.18%
Break Even (Value Sales) 234,122,121.05 258,961,578.76 266,311,577.22 281,299,569.34
Break Even ( Qty ) 4,508 4,929 5,066 5,352

38. 38
Balance Sheet “With average GP% (7%)”
2009 2010 2011 2012 2013
ASSETS
Current Assets
Total Current Assets 97,575,237 107,549,782 112,449,634 124,741,906 144,636,763
Non-Current Assets
Total Non-Current Assets 2,770,000 1,910,000 1,050,000 440,000 130,000
Total Assets 100,345,237 109,459,782 113,499,634 125,181,906 144,766,763
LIABILITIES & EQUITY
Current Liabilities
Total Current Liabilities 79,445,657 86,252,206 83,586,751 87,227,224 97,825,272
Non-Current Liabilities
Total Non-Current Liabilities 525,120 1,144,640 1,299,520 2,042,944 2,860,710
Total Liabilities 79,970,777 87,396,846 84,886,271 89,270,168 100,685,983
Equity
Total Equity 20,374,460 22,062,936 28,613,363 35,911,738 44,080,781
Total Liabilities and Equity 100,345,237 109,459,782 113,499,634 125,181,906 144,766,763

39. 39
Ratios “With average GP% (7%)”
2009 2010 2011 2012 2013
Efficiency
Gross Margin % 7.23% 7.09% 7.10% 7.16% 7.14%
Inventory Turnover - Months 2.59 2.71 2.16 2.16 2.40
Collection Ratio - Months 4.6 3.0 2.2 2.0 1.9
Operating Cycle Period - Months 6.15 4.69 3.36 3.20 3.28
Debt Management
Bank Debt to Equity 1.9 2.0 1.3 1.0 0.8
Total Debt to Equity 3.93 3.96 2.97 2.49 2.28
Total Debt to Assets 0.80 0.80 0.75 0.71 0.70
Liquidity Management
Current Ratio 1.23 1.25 1.35 1.43 1.48
Quick Ratio 0.73 0.62 0.65 0.71 0.71
Total Debt to Current Assets 0.82 0.81 0.75 0.72 0.70
Return
Return on Equity (ROE) 3.7% 7.0% 21.8% 21.6% 20.1%
Return on Capital Employed (ROCE) 1.3% 2.3% 9.3% 10.7% 11.2%
Return on Assets (ROA) 0.12% 1.40% 5.49% 6.21% 6.11%

40. 40
Net profit Forecast
1,793
5,702
12,041
14,379
16,564
374
1,535
6,234
7,768
8,839
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2009 2010 2011 2012 2013
Net Profit 8.7% GP Net Profit 7% GP
SR/M

41. 41
ROCE Forecast
5.9%
8.3%
17.5%
19.1%
20.1%
1.3%
2.3%
9.3%
10.7% 11.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2009 2010 2011 2012 2013
ROCE 8.7% GP ROCE 7% GP
SR/M

42. 42
Why Renault Franchise for Alissa
• Renault will enter the Saudi Automotive
market, planning to capture sizable market
share, equipped with new strategy, initiatives,
products and dedicated expertise.
• Alissa is capable to accommodate and deliver
Renault objectives and goals to sustain and
grow shareholders’ profitable base.
Confidential

43. 43
Thank you