This document provides a feasibility study for acquiring a Renault franchise dealership in Saudi Arabia. It outlines the aims to maximize profitability and business diversification. Key success factors include Renault's product range and marketing support, as well as Alissa's sales network and experience. Financial forecasts project increasing net profits and returns. Challenges around brand image, service quality, parts availability and resale values could be addressed through marketing and partnership with Renault. The proposal is to obtain approval and finalize an exclusive dealer agreement with Renault.

1. 11st April 2009
Renault Feasibility Study
Summary

2. 2
Agenda
• Aim & Purpose
• Success Factors
• Sales Forecast overview
• Financial Summary
• Challenges and solutions
• Why Renault for Alissa?
• What is next?

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. 61st April 2009
Sales Forecast & Market Share
Overview

7. 7
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%

8. 81st 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)

9. 91st 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)

10. 101st April 2009
Financial Summary

11. 11
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

12. 12
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

13. 13
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.

14. 14
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…

15. 15
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…

16. 16
Challenge
• Low re-sale value.
Solution
• Launch Trade In campaign with special
financial support by manufacturer.
• Extended warranty for used car.
Challenges & Solutions Cont…

17. 17
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

18. 18
What is Next?
• Obtain the Executive Board Committee
approval.
• Proceed with Renault to finalize the dealer
agreement.

19. 19
Thank you