FLASH A3 couv ang. 3/05/02 14:59 Page 3

2001 ANNUAL REPORT SUMMARY SYNTHESE .angl. 3/05/02 12:39 Page 1 SYNTHESE Renault.angl. 3/05/02 12:39 Page 2

KEY FIGURES 2001

As a volume manufacturer, Renault has REVENUES defined a strategy €36,351 MILLION of profitable growth built on three pillars: OPERATING MARGIN • competitiveness — we aim €473 MILLION to lead the field in terms of product and service quality, keeping production NET INCOME costs, and development €1,051 MILLION and delivery times well under control • brand image hinged on innovation • international development

Renault has teamed up N0. 1 BRAND with to build IN WESTERN EUROPE WITH AN 11.1% MARKET SHARE ( AND LCVs COMBINED) a bi-national group that ranks fifth worldwide with 5 million vehicles sold 2,409,226 in 2001. Renault is also VEHICLES SOLD WORLDWIDE the principal shareholder of AB Volvo, the world’s second largest truck 140,500 manufacturer. EMPLOYEES

1 SYNTHESE Renault.angl. 3/05/02 12:39 Page 3

THE RENAULT GROUP

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 12:40 Page 4

CONTENTS

4-5 From the Chairman

6-9 The Board of Directors and management team

10-17 Business and finance: Profitable growth 12-13 Highlights and key figures 14-15 Financial results 16-17 The Renault share

18-27 Strategy: Renault's global reach 20-23 Renault-Nissan: The Alliance on the move 24-25 Global markets: Renault's performance 26-27 Two new brands: Dacia and Samsung

28-33 Products: Ongoing innovation 30-31 Top of the range: Daring and expertise 32-33 Product line-up: Safety, performance and comfort

34-39 Customers: Commitment to quality and service 36-37 Quality products for safety and reliability 38-39 Renault and customers

40-43 Expert teams: Building for the future 42-43 Human resources: Careers in motion

44-45 Looking ahead

3 SYNTHESE Renault.angl. 3/05/02 12:40 Page 5

FROM THE CHAIRMAN

In 2001, Renault We consolidated Renault’s We also reaped the first benefits We completed our strategic strengthened positions in ranking as the number-one of our investment in Nissan, tie-up with AB Volvo, becoming key markets and achieved brand in Western Europe and which made a major positive the largest shareholder of higher sales worldwide. bolstered market share in contribution to our consolidated the world’s number-two At the same time, Central and Eastern Europe, earnings. In the course of the truck manufacturer. profitability in our while further inroads were made year, cooperation between Automobile Division was in and export sales outside our two groups gave rise to We continued our drive to cut hit by heightened Europe grew significantly. a number of new achievements, costs and significantly reduced competition in Europe, In Korea, Renault Samsung demonstrating the vitality of debt — despite still high some of our products Motors made promising progress our Alliance. These included investments as we finalized nearing the end of their and restructuring of Dacia in a second common platform, development of the range of life cycle, and severe Romania began to yield its first the launch of a joint purchasing new products that we will start economic downturns rewards. All told, volumes were company, convergence of our bringing to market in 2002. in and . up for the fifth year in a row, sales subsidiaries and networks Yet steady net income with the Renault group winning in Europe, and the startup of Looking to the year ahead, confirms the soundness 4.4% of the global automobile a new factory producing light 2002 will see a series of major of our strategy. market in 2001. commercial vehicles for both launches. After Laguna II brands in Brazil. — now the benchmark for its

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 12:41 Page 6

Louis Schweitzer Chairman and Chief Executive Officer*

segment — we will be renewing Renault team will be seeing shared commitment of all our offering at the top end of the its first year in Formula 1 racing. Renault staff members and their range with Vel Satis and the new confidence in our future. Espace, to be followed at the Finally, in 2001 the second stage A sentiment they demonstrated end of the year by the first steps of our Alliance with Nissan will by participating in the capital towards renewal of the Mégane involve consolidation of our increase reserved to employees line-up. These moves will community of interests through in 2001. continue in 2003 and beyond, cross-shareholdings, as well as making for a full update of our the establishment of a joint product range. In 2004, we will management company to steer have 25 models available with both companies' strategy, an average age of around three Renault-Nissan bv. This will play years compared with four and a crucial role in building a half today. the Renault-Nissan group.

Our brand's driving force will also In 2002, we will continue to be visible in our commitment to deploy our strategy. In so doing, motor sport, since the new we will be counting on the

* Process manager Paul Carvalho and line supervisors Pascal Deroo and Guillaume Le Bail in discussion with Louis Schweitzer at the Cléon plant.

5 SYNTHESE Renault.angl. 3/05/02 12:42 Page 7

THE BOARD OF DIRECTORS ON DECEMBER 31, 2001

Louis Schweitzer Pierre Alanche Jean-Marie Bousset Jean-Pierre Camescasse Chairman Engineer in charge of overseeing Renault after-sales technician Engineer in charge of quality development of Renault’s of Renault’s technical production information systems documentation

François de Combret Yoshikazu Hanawa Nicolas Jachiet Jean-Luc Lagardère Associate Director, Lazard Frères Chairman, Nissan Motor Co. Ltd. Head of Shareholding Board member, Lagardère SCA Department, Treasury Division Ministry of the Economy, Finance and Industry

Bernard Larrouturou Henri Martre Jean-Claude Paye Michel Pébereau Chairman and CEO, INRIA Honorary Chairman, Attorney Chairman and CEO, BNP Paribas Aérospatiale Representative of BNP Paribas

Danièle Potvin Franck Riboud Jeanne Seyvet Robert Studer Director, Renault Executive Chairman and CEO, Danone Director General, Industry, Former Chairman, Internships Information Technologies and Union de Banques Suisses Post,Ministry of the Economy, Finance and Industry

Raymond H. Lévy Honorary President

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 12:42 Page 8 SYNTHESE Renault.angl. 3/05/02 12:43 Page 9

THE MANAGEMENT TEAM GROUP EXECUTIVE COMMITTEE ON DECEMBER 31, 2001

Louis Schweitzer Pierre-Alain De Smedt Georges Douin Patrick Faure Chairman and Chief Executive Executive Vice President Executive Vice President Executive Vice President Officer 57 years old 56 years old Chairman and CEO 59 years old of Renault F1 Team 55 years old

Ecole Nationale A graduate in engineering and Ecole Polytechnique. Ecole Nationale d’Administration. business administration from Joined Renault in 1967 d’Administration. Inspector of Finance. the University of Brussels. as a quality engineer in the R&D Joined Renault in 1979, Head Joined Renault in 1986. Became After three years as Chairman Department. Became Head of Sales and Marketing from Chief Financial Officer and Head of SEAT, he joined Renault in 1999 of Engineering in 1988, then 1991 to 1998, then appointed of Strategic Planning in 1988, as Executive Vice President. Vice President, Technology Chairman and CEO of Renault then Executive Vice President Reporting to him are Research, in 1989, before being appointed V.I./Mack until 2000 when in 1989. Appointed President Vehicle Engineering, Passenger Senior Vice President, Product he was named Executive Vice and Chief Operating Officer Car Projects, Powertrain, & Strategic Planning and President of the Renault group. in December 1990. Purchasing, Manufacturing, Projects in 1992. Senior Vice Chairman of Chairman and CEO of the and the Mercosur Division. President, Product & Strategic from 1986, he became Renault group since May 1992. Planning and International Chairman and CEO of Renault Operations since 1997. F1 Team in 2002. Appointed Executive Vice President in 1998.

Renault Management Committee and Group Executive Committee on December 31, 2001

*Louis Schweitzer *Pierre-Alain De Smedt Alain Dubois-Dumée *Patrick Faure Chairman and Executive Vice President, Senior Vice President, Executive Vice President - Chairman Chief Executive Officer Industry and Technology Corporate Communications and CEO of Renault F1 Team

Patrick Blain Rémi Deconinck Jean-Baptiste Duzan Philippe Gamba Senior Vice President, Senior Vice President, Senior Vice President, Supplier Chairman and CEO of RCI Banque Market Area Europe Product Planning Relations – Chairman and CEO of Renault Nissan Purchasing Marie-Christine Caubet Organization (RNPO) Manuel Gomez Senior Vice President, *Georges Douin Senior Vice President, Market Area France Executive Vice President, International Operations Product & Strategic Planning Michel Faivre Duboz and International Operations Senior Vice President, Vehicle Jean-Pierre Corniou Engineering Development Michel Gornet Senior Vice President, Chief Senior Vice President, Manufacturing Information Officer and Powertrain

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 12:43 Page 10

François Hinfray Shemaya Lévy Michel de Virville Executive Vice President Executive Vice President Corporate Secretary General 47 years old 54 years old Executive Vice President, Group Human Resources 56 years old

Ecole Nationale Ecole Nationale de la Statistique PhD in mathematics. Research d’Administration. et de l’Administration engineer at the CNRS (National Joined Renault in 1989 Economique. Center for Scientific Research). as Director in charge Joined Renault in 1972. Ministry of Labor (1986). Adviser of European Affairs. He was After holding various positions at the Auditor-General’s appointed Director of the Rouen at Renault V.I., he was Department. Joined Renault Branch Office in 1991, appointed Vice President, Sales in 1993. Became Head of the then Managing Director and Marketing in 1987 and Human Resources Department of Deutsche Renault in 1993. Chairman and CEO of Renault in 1996, and was appointed In 1997 he became Senior Vice V.I. in 1994. Became Executive Corporate Secretary General President, Market Area France, Vice President in 1998, reported in 1998, with responsibility for before becoming Executive to by Finance, Audit, Financial the group’s Human Resources. Vice President, Sales and Control and Information Marketing in 1998. He is Technologies & Systems. also responsible for the Light Commercial Vehicles Division.

*François Hinfray Benoît Marzloff Alain-Pierre Raynaud Executive Vice President, Senior Vice President, Senior Vice President, Sales and Marketing Strategy and Marketing Corporate Controller

Jacques Lacambre Luc-Alexandre Ménard Tsutomu Sawada Senior Vice President, Advanced Senior Vice President, Mercosur Senior Vice President, Vehicle Engineering and Research Adviser to the Chairman Patrick le Quément Bruno Morange Senior Vice President, Senior Vice President, *Michel de Virville Corporate Design Light Commercial Vehicles Corporate Secretary General, Executive Vice President, *Shemaya Lévy Pierre Poupel Group Human Resources Executive Vice President, Senior Vice President, Quality Chief Financial Officer

* Members of the Group Executive Committee chaired by Louis Schweitzer 9 SYNTHESE Renault.angl. 3/05/02 12:44 Page 11 SYNTHESE Renault.angl. 3/05/02 12:45 Page 12

Our choice of strategic priorities helped hold net income steady at €1,051 million in 2001. Renault is now the leading automobile brand in Western Europe, expanding its reach despite tough international conditions: during the year, unit sales rose 2.3% worldwide while revenues increased 5.6%. In 2001 we also worked hard to strengthen ties with shareholders, addressing RCI-Banque trading room at company headquarters in Marne-la-Vallée, east of . their concerns through a series In 2001, financial services contributed €1.8 billion to consolidated revenues. of meetings in France and the rest of the world, print documents and a special section of our internet site at www.renault.com.

BUSINESS & FINANCE PROFITABLE GROWTH

Telheiras, Portugal: A financial adviser at Renault Gest, Renault shareholders tour the assembly the Portuguese subsidiary of RCI-Banque, helps a customer plant in Flins, France. choose the best financing option.

11 SYNTHESE Renault.angl. 3/05/02 13:54 Page 13

HIGHLIGHTS AND KEY FIGURES

Discrete elegance is the watchword for Vel Satis, Renault’s new top-of-the-line .

In a contrasting As a result of the agreement between Renault and AB Volvo, signed on January 2, 2001, economic climate the Renault V.I./Mack group was deconsolidated. Certain figures from the 2000 financial year, including — the car market in revenues, operating margin and capital expenditure in property, plant and equipment, have been Western Europe was adjusted for comparison purposes. stable, while both Turkey and Argentina were hit by Global and European automobile markets (in millions of units) recession — the Renault Passenger cars and light commercial vehicles group posted a 2.3% rise in unit sales worldwide 1997 1998 1999 2000 2001 to 2.4 million vehicles Western Europe 14.9 16.0 16.9 16.7 16.7 and scored global Global market 52.5 52.5 53.4 55.9 55.1 market share of 4.4%. The global automobile market was down slightly on 2000, but remained buoyant in 2001 with over 55 million units. Despite a significant The market in Western Europe in 2001 stood at 16.7 million units. Passenger-car registrations rose 0.7% to 14.8 million and light commercial vehicles leveled off to 1.9 million units, down 2.8%. decline in operating margin to €473 million — equivalent to 1.3% Renault group market share in Europe and worldwide (as a %) of revenues, compared with 5.4% in 2000 — 1997 1998 1999 2000 2001 Renault held net Europe

income on track Passengers cars 9.9 10.7 11.0 10.6 10.6 at €1,051 million in 2001. Light commercial vehicles 11.5 13.0 13.9 14.1 15.3 Passenger cars and light commercial vehicles 10.1 11.0 11.3 11.0 11.1

Worldwide Passenger cars and light commercial vehicles 3.5 4.1 4.2 4.2 4.4

In Western Europe, Renault retained its position as leading brand in the passenger car and market for the fourth year running, with market share of 11.1%, compared with 11% in 2000. The Renault group — under its three nameplates Renault, Dacia and Samsung — had a global market share of 4.4% in 2001, up from 4.2% in 2000. The Renault-Nissan Alliance ranked among the top six global carmakers with a 9.2% market share.

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 13:54 Page 14

Renault's sales rose 1.6% in Western Group sales worldwide (in units) Europe, Samsung made a breakthrough in Korea and sales 1997 1998 1999 2000 (1) 2001(1) climbed in Brazil. These factors helped offset the severe market Light commercial vehicles 209,846 263,970 301,203 334,564 335,030 slumps in Turkey and Argentina. Passengers cars 1,628,236 1,866,035 1,987,455 2,021,644 2,074,196 All told, the group's unit sales TOTAL 1,838,082 2,130,005 2,288,658 2,356,208 2,409,226 increased by 2.3% worldwide to 2.4 million. (1) Including sales under the Dacia and Samsung brands (52,000 and 70,000 units, respectively, in 2001).

Revenues (€ million) Operating margin (3) Foreign revenues and domestic revenues (as a %) € million

37,592 2,205 37,187 34,268 36,351 Foreign 1,920 31,696 revenues 1,843

60.6 61.4 63.5 62.0 60.8 Domestic 563 revenues 473

39.4 38.6 36.5 38.0 39.2 (4) (2) 97 98 99 00 01 97 98 99 00 01

(2) Revenues adjusted on a consistent basis with 2001, principally taking into account the (3) Operating margin has been adopted by Renault as a performance indicator. deconsolidation of the Renault V.I./Mack group. It measures income generated directly by operations, before exceptional and extraordinary items. The group generated over 60% of total revenues in foreign markets in 2001, (4) Pro forma figures. up 6.1% to €36.4 billion. In 2001, Renault's operating margin came to €473 million, equivalent to 1.3% of revenues, compared with 5.4% in 2000. This decline was entirely due to the Automobile Division. The contribution from international operations fell on account of the crises in Turkey and Argentina. Furthermore, R&D expenditure increased and European operations Net income were down after prices were cut in the and the product € million cycle proved less buoyant ahead of the renewal of the Mégane range. 1,349

1,080 1,051 Payout rate (as a %) 827 34.2 534

20.2 21.0 15.3 97 98 99 00 01 13.5

Renault held net income on track in 2001 in spite of the decline in operating margin. This was due to capital gains from the sale of equity investments and the impact of Nissan Motor's recovery on Renault's 97 98 99 00 01 financial statements. Net income totaled €1,051 million, or €4.38 per share in 2001, compared with €4.50 in 2000. At the Annual General Meeting of Shareholders on April 26, 2002, shareholders will be asked to vote on a dividend payment totaling €0.92 per share, equivalent to a payout rate of 21% of net income. Dividends will be paid on May 15, 2002.

Capital expenditure in property, plant Workforce and equipment and intangible assets number of employees € million 166,114 3,205 159,608 2,639 2,437 2,359 2,205 141,315 138,321 140,417

(5) 97 98 99 00 01 97 98 99 00 01

(5) Pro forma figures. Renault continued to grow capital expenditure in 2001, primarily in a bid Renault's workforce totaled 140,417 employees worldwide. The decline to renew product and component ranges and upgrade facilities. 2001 saw in staff numbers in 2001 was mainly due to the sale of the Renault V.I./Mack a high rate of capital expenditure due to Renault's range renewal plan group (22,068 employees) and CAT (2,518 employees). The group's active and the international expansion of the group. recruitment policy was ongoing in 2001 with 6,000 new hires worldwide.

13 SYNTHESE Renault.angl. 3/05/02 13:56 Page 15

FINANCIAL RESULTS

Revenue growth continues Renault revenues were up Renault revenues for 2001 came to €36.4 billion, up from €34.3 billion in 2000 (restated). 6.1% in 2001, • The Automobile Division contributed €33.8 billion or 93.1% of the total, with revenues up 5.8% at €36.4 billion. The year on a consistent basis. This increase reflected gains in Europe and an improved sales mix, in turn largely also saw increased efforts attributable to the success of New Clio and Laguna II, as well as continued rises in sales of diesel models. to cut costs and debt, Outside Western Europe, the sharp increase in the revenues of combined with as well as significant moves into a number of markets in Central Europe, Brazil and elsewhere, limited the impact of declines capital gains on sales in Turkey and Argentina. of equity investments. • The Finance Division contributed €1.8 billion to revenues, showing a rise essentially due to income from The first benefits of sales financing, with the average outstanding amount of interest-bearing credit up 5.6%. the investment in Nissan appeared, opening Revenues by Division (€ million) the way for a second stage in our Alliance, 37,592 34,268 36,351 + 6.1 reinforcing strategic links. Other 6,474 682 + 9.6 All told, Renault 622 1,828 (1) Revenues restated 1,661 + 10.1 generated earnings per 1,380 Commercial € on a consistent basis Vehicles share of 4.38, a figure with 2001, principally close to the €4.50 taking into account Finance recorded in 2000. the deconsolidation of the Renault V.I./Mack 29,738 31,985 33,841 + 5.8 Automobile group.

(1) 99 00 01 % change published restated 2001/2000 restated

Operating margin narrows Operating margin for 2001 came to €473 million, representing 1.3% of revenues compared with 5.4% pro forma for 2000. This was due to a decline in the operating margin of the Automobile Division, which contributed €216 million, down from €1,574 million pro forma in 2000. There were three main reasons for this:

•a marked fall in contributions from business outside Europe, in turn mainly due to downturns in Turkish markets and deteriorating conditions in Mercosur countries. •a cyclical rise in research and development outlays, relating to the renewal of the product range. • a lower contribution from business in Europe due to falling prices in the UK and a less favorable product cycle with the upcoming renewal of Mégane.

The Finance Division’s contribution to operating margin was little changed at €252 million compared with €263 million pro forma in 2000.

Operating margin by Division (€ million)

Total 2,205 1,843 473 % of 5.9% 5.4% 1.3% Other revenues 220 6 Commercial 222 263 Vehicles (1) Pro forma data reflecting the Finance 5 deconsolidation 1,763 1,574 252 of the Renault 216 Automobile V.I./Mack group 99 pro forma (1) 01

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 13:57 Page 16

Nissan’s Aguascalientes plant in Mexico Ver ve and class — a winning combination Renault dealership in Brazil — a steadily Scénic brings a new concept turns out the and sedan for with the 172-hp 2.0 expanding network gives the brand to the Mexican car market. versions of New Clio, sold under the 16V . worldwide reach. and Nissan Platina names.

Net income held on track A stronger balance sheet Despite the decline in operating margin, Renault was able to hold net •In 2001, cash flows from operating activities came to €1,688 million income close to the level of the previous year, reporting €1,051 million compared with €3,137 million pro forma in 2000, a decline mainly after €1,080 million for 2000. Main contributing factors were: reflecting that in group operating margin.

• significant capital gains on the sale of securities relating to • During the year, Renault took a more selective approach the contribution of Renault V.I./Mack shares to Volvo (€335 million) to investment, focusing resources on renewal of ranges and the sale of CAT shares to Global Automotive (€318 million). and international business. After deduction of the proceeds of divestments, capital expenditure in property, plant and • Renault’s interest in the net income of Nissan Motor, representing equipment and intangible assets totaled €2,641 million in 2001 a positive contribution of €497 million, with Renault thus benefiting compared with €2,208 million pro forma in 2000, and represented from the group's recovery as expected. 7.3% of revenues compared with 6.4% pro forma in 2000.

• Despite the scale of investments, net financial debt of the industrial and commercial activities declined by €866 million. This reflected Summary income statement (€ million) the €653 million generated by the sale of equity interests and a fall 1999 2000(1) 2001 of €1,751 million in the working capital requirements of industrial and commercial activities, a favorable trend partly due Revenues 37,592 40,175 36,351 to improved management of all the items making up working Operating margin 2,205 2,022 473 capital requirements.

Other operating income and expense (721) (319) 231 •At December 31, 2001, net financial debt of industrial and commercial activities was equal to 39.1% of shareholders' equity, Operating income 1,484 1,703 704 compared with 49.7% a year earlier. Net financial income (expense) 32 (69) (64)

Share in the net income of Nissan Motor (330) 56 497 Statement of cash flows and financial structure (€ million)

Pre-tax income 1,160 1,723 1,020 1999 2000 2001

Tax(620) (649) (67) Cash flows from operating activities 3,314 3,137(1) 1,688

Renault net income 534 1,080 1,051 Capital expenditure in property, plant and 2,033 2,208(1) 2,641 equipment and intangible assets (net of disposals) (1) Published data. Acquisition of securities (2) 5,063 811 109

Net financial debt 2,700 4,793 3,927 (of industrial and commercial activities)

Shareholders’ equity 8,185 9,652 10,051

(1) Pro forma data. (2) In 1999, acquisition of Nissan shares for €4,917 million.

15 SYNTHESE Renault.angl. 3/05/02 13:57 Page 17

THE RENAULT SHARE

Share ownership Share performance With stockmarkets On December 31, 2001, Renault's share price varied with a 22% drop in the CAC 40 in turmoil, Renault shares ownership of Renault equity was widely in 2001. Upbeat 2000 index and falls of 6.5% and 0.7%, were on a rollercoaster as follows: results and renewed interest in respectively, for auto-sector in 2001. They closed old economy stocks combined indexes in France (SBF Auto) € the year at 39.61, down Renault shareholders to boost it to a 2001 peak and Europe (DJ Euro Stoxx 28.6% on December 31, of €64 on March 8, but it then Auto). on December 31, 2001 2000, after three slid, hit by investor concern consecutive years over company performance of rises. Initiatives in Western Europe Key dates in 2002 to forge closer ties with and developments in Turkey. Tuesday, February 12: shareholders continued In August, half-year results Announcement of 2002 full-year results throughout the year. disappointed some investors Thursday, March 28: Extraordinary and the share lost fresh ground, General Meeting of Shareholders following Nissan downward. Wednesday, April 24: Announcement 46.4% Institutional investors and of first-quarter 2002 revenues individual shareholders September 11 and its aftermath Friday, April 26: Annual General 43.8% French state sent the share price to an Meeting of Shareholders annual low of €26.01 on 3.2% Associated Wednesday, May 15: Payment of shareholders’ group September 21. It subsequently dividend of €0.92 per share(*)

3.1% Employees picked up but lagged other Thursday, July 25: Announcement automotive shares as Renault of first-half 2002 results 3.5% Treasury stock revised its second-half operating Thursday, October 24: Announcement of third-quarter 2002 margin targets downward. revenues The share closed the year (*) As proposed by the Board of • In December 2001, Renault at €39.61, down 28.6% on Directors and decided on by the Annual General Meeting of made a share issue equivalent December 31, 2000, compared Shareholders on April 26, 2002. to 1% of its capital reserved to employees. At its conclusion, capital stock totaled Renault share performance €922,768,855.50 represented from December 31, 1996 to February 28, 2002 by 242,196,550 shares with CAC 40 indexed on Renault share price at December 31, 1996: €17 a nominal value of €3.81 each. € • A Euroclear study found that 70 some 280,000 individual Renault share price

shareholders held 7.3% of 60

Renault equity on December 28, 50

2001. This figure does not include employees and former 40

employees whose shares are 30

administered through a fund 20 CAC 40 index or are registered directly with

Renault. Institutional investors 10 held 39%, with French residents 0 and non-residents accounting 1997 1998 1999 2000 2001 for roughly equal proportions.

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 13:59 Page 18

“Interaction with individual shareholders, including special Renault Shareholders’ Advisory Committee meets as key 2001 indicators are released. events, is an increasingly important part of our financial communications strategy. One example is our Shareholders’ Keeping shareholders in the picture Club, which gives members an opportunity to deepen their First listed in November 1994, four shareholder meetings were year results, communication understanding of Renault’s Renault has consistently sought organized in conjunction with vectors/events and messages strategy and daily operations. to regularly provide the same Euronext in Mulhouse, Paris, sent to individual shareholders, The demand is there clear, transparent information to Brussels and Nantes. preparation of the abridged — no doubt about that — all shareholders, both individual In November 2001, Renault took annual report for 2001, and and we have taken a number of initiatives in response. Today and institutional. part in the Actionaria trade a presentation of the plans guided tours of production show in Paris, developing direct to reinforce the Alliance. plants give shareholders Since May 1995, the company contacts with shareholders. a more concrete idea of what has had its own Shareholders' Over the past four years Renault we do. They can also subscribe Club, now some 33,000 strong. The Shareholders' Advisory has pursued an active to Renault magazines, and receive invitations to auto Members are kept up to date Committee was set up in 1996 campaign targeting the advisers shows and other events. by a quarterly newsletter, to give individual shareholders and opinion-makers who have Through our internet site, special reports on strategic clearly presented information a significant influence on stock- individual shareholders have developments in the Renault- to underpin their investment market investments — and who access to the same information Nissan Alliance, and an decisions. It has 12 members. are thus important relays for that analysts receive; they can track our share price online abridged version of the annual The Committee met four times information to shareholders. and ask questions. A survey report. They receive documents in 2001, twice in plenary sessions In 2001, the company organized of shareholders using the for the AGM and are regularly attended by Renault Chairman ten meetings in cities and towns internet in France, Belgium invited to tour production Louis Schweitzer. Subjects around France for this public, and Switzerland ranked facilities and attend shareholder included financial information as well as two tours of our site as one of the most interactive meetings in their region. In 2001, displayed on the company production plants (in Batilly in 2001.” groups thus visited plants in Flins, website, drafting of and Maubeuge). Sandouville and Douai, while announcements of 2001 half- Olivier Bourges Vice President, Investor Relations Key figures for 2001 (€ (1)) Shareholder information 1999 2000 2001 • Renault • Financial information Number of shares at December 31 239,798,567 239,798,567 242,196,550 Investor Relations Financial data Dept. 0760 Net earnings per share 2.23 4.50 4.38 27-33 Quai Le Gallo 92512 Boulogne-Billancourt Net assets per share 34.13 40.25 41.88 Cedex - France Net dividend per share 0.76 0.91 0.92 (2) Tel.: + 33 (0)1 41 04 59 99 Stockmarket data Fax: + 33 (0)1 41 04 51 49 Toll-free number: 0 800 650 650 Closing price at December 31 47.86 55.50 39.61 www.renault.com Market capitalization at December 31 (€ billion) 11.5 13.3 9.6 • Renault • Employee shareholders High for the year 55.00 61.00 64.00 6 Place Bir-Hakeim - 92109 Low for the year 30.53 37.53 26.01 Boulogne-Billancourt Cedex France - Tel.: +33 (0)1 41 04 33 46 (1) Excepting market capitalization, in € billion. Fax: + 33 (0)1 41 04 33 52 (2) As proposed by the Board of Directors and decided on by the Annual General Meeting of Shareholders on April 26, 2002.

17 SYNTHESE Renault.angl. 3/05/02 13:59 Page 19

Renault rounded out the huge São José dos Pinhais plant in Brazil — the Alliance’s first shared facility — with a new LCV production unit. SYNTHESE Renault.angl. 3/05/02 14:00 Page 20

Scénic is the Alliance’s first industrial project. Made at Nissan’s Cuernavaca plant in Mexico, it gave Renault a foothold in a market the company had left 15 years earlier.

Laguna II unveiled at the Moscow Motor Show STRATEGY in August 2001. RENAULT’S GLOBAL REACH

The Renault-Nissan Alliance, international deployment of the Renault brand, acquisition and development of Samsung and Dacia. In the space of a few years, Renault has grown in stature, moving from a regional carmaker in Europe to a world-class contender.

Twingo — at home in Tokyo.

19 SYNTHESE Renault.angl. 3/05/02 14:00 Page 21

RENAULT-NISSAN THE ALLIANCE ON T

Two vehicles — the and the Nissan Frontier — roll off two separate production lines under a single roof. Built in just 18 months, Renault’s LCV unit at the Ayrton Senna plant in São José dos Pinhais in Brazil represents an outlay of $236 million. With initial output running at 40,000 vehicles a year, it expands Renault’s offering of light commercial vehicles and gives Nissan a springboard for development in Brazil.

Vigorous rise in Nissan earnings The Alliance signed Nissan’s performance for 2001 by stages and results have by Renault and Nissan reflects the rapid effectiveness benefited significantly from in 1999 opened exciting of the Nissan Revival Plan or NRP, the reorganization of production new prospects. And it has launched in the autumn of 1999 facilities in Japan — where three been a success, with the backing of the financial assembly plants were closed in with a speedy recovery and managerial resources March 2000 — and restructuring at Nissan making committed by Renault on the of its sales network. a positive contribution conclusion of the Alliance. Nissan can now build on a firmer to group results. Tokyo: Fruitful exchanges between While revenues were steady base as it moves ahead with French and Japanese participants Teams at Renault at the Alliance’s second convention, amid toughening economic a worldwide program for the held in October 2001. and Nissan have and competitive conditions, complete renewal of its product demonstrated a capacity Nissan made a positive range in just three years. to work together contribution of nearly €500 This calls for the roll-out of eight effectively to build million to Renault’s consolidated or nine new models each year. a balanced and earnings for the 2001 fiscal year. successful bi-national group. Development A complete overhaul of of the Alliance will now purchasing for both industrial enter a second stage supplies and services enabled involving closer equity Nissan to more than achieve its ties and stronger 20% cost-reduction target earlier strategic management. than originally planned. Financial debt is being cut back

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:00 Page 22

HE MOVE

“As soon as the Alliance was agreed on, Nissan restructured its Purchasing Division. It drew on the example of Renault — an approach which also made for more fruitful dialogue. In addition to a model focused primarily on quality and delivery times, Renault contributed its recognized expertise in cost control, applying methods that involve setting annual targets for price reductions in vehicle components and worldwide, performance indicators, centralization of important decisions, cost targets by project and strict management of the supplier base. Action taken in these areas has paid off. The targets of the Nissan Revival Plan were achieved ahead of schedule and the Purchasing Division now plays a central role in all key business decisions.”

Bernard Rey Senior Vice President, Nissan Purchasing Strategy

Curitiba, Brazil: A Renault operator handles either of the two vehicles in production — Nissan’s Frontier pickup and the Renault Master.

21 SYNTHESE Renault.angl. 3/05/02 14:01 Page 23

RENAULT-NISSAN THE ALLIANCE

Brazilian line operators in the first Renault- Yoshikazu Hanawa, Louis Schweitzer and Operators fine-tune a Clio engine at Trail-blazer: The X-Trail leads Nissan’s 4WD Nissan shared plant in Curitiba. in Tokyo at the second Nissan’s Aguascalientes plant in Mexico. line-up. Alliance Convention.

The Alliance — a growing presence “A change of culture is always In 2001, major achievements shared platforms, including three a competitive edge in the face a challenge, but we have and projects illustrated the rich for light commercial vehicles. of toughening competition begun to apply some of Nissan’s methods with a view potential of our cooperation in At the same time, plans to and economic conditions. In this to enhancing quality, cutting both manufacturing and sales, develop eight shared engine area, each partner is able to costs and shortening lead opening access to new markets lines and seven shared offer the other support in setting times. The new system of quality and extending the scope of the lines took a fresh up its organization on some milestones means that we now Alliance while at the same time step forward as work began markets, while increasing have sufficient time to detect and correct any problems. consolidating competitive on medium-size engines. the number of joint structures By planning for an optimum strengths. to generate savings. Following In manufacturing, cooperation number of projects, we can Mexico, Brazil and Japan Purchasing is the biggest single led to three major events in also offer higher quality in 2000, cooperation products at lower development item in the cost of a vehicle, 2001, with the launch of the was extended to Australia, cost. At the same time, and the pooling of orders for very first cross-manufacturing Indonesia, and Taiwan in 2001. new working methods large volumes of common operations providing concrete and management better components can generate opportunities to share best In Europe, the Alliance will need representing the required mix of skills and know-how will significant economies of scale. practice in terms of quality, to muster all its forces to meet further enhance efficiency. With this in mind, in May 2001 costs and delivery times. the challenges ahead, with new By making a success of our Renault and Nissan set up a joint These concerned, firstly, contenders set to enter the common powertrains project subsidiary under the name the assembly of Scénic and Clio distribution sector from 2002 on. in terms of quality, cost and Renault Nissan Purchasing at Nissan’s two plants in Mexico. Reflecting our strategy of dealer delivery times — and assuming Nissan does the same — we will Organization or RNPO to December saw the opening concentration which be making a significant achieve maximum efficiency of the Alliance’s first joint factory, nonetheless respects — as in contribution to the success in this key area (see box the Renault light commercial other parts of the world — of the Alliance as a whole.” opposite page). vehicle plant at Curitiba in Brazil. the distinct identities of our two Initially — starting in 2001 — this is brands and associated services, Kazumasa Katoh For common platforms and Vice President, assembling the Renault Master; Renault is backing up Nissan’s powertrains, introduction of the Renault Powertrain Engineering Nissan’s pickup, the Frontier, sales drive with formerly General Manager B and C platforms will enable us of Nissan’s Powertrain will be added on in May 2002. the development of a shared to put on the market, as of 2002, Operations Finally, plans were announced organization. New subsidiaries Division replacements for the small cars to begin assembly of the Renault or single legal entities will also be and lower mid-range models Trafic, developed in conjunction set up, as in Switzerland and the of both our product ranges. with GM Europe, at Nissan’s Netherlands — countries where By 2005, these two platforms will Spanish plant in Barcelona. Renault has taken over the sales be used for 3.7 million vehicles operations of Nissan. a year or half the total future Cooperation in sales aims volume for the Alliance, and by to strengthen the Alliance’s 2010 the Alliance will have ten positions and give it

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:01 Page 24

Renault«Le processus Nissan d’intégration Purchasing des Organizationan, sans ambiguïté — the Alliance’sd’un côté firstvrais joint professionnels company qui naturellement, notamment Trfilialesimming financières a combined de purchasing Nissan en components.ni de l’autre. This Nous was avons achieved été entity.parlaient RNPO le deals même with langage around 30% dans les pays où Nissan billEurope previously s’est faitclose rapidement to €45 billion throughaidés par the le launch, fait que in Maynous 2001, ofet commonont compris purchasing les enjeux. needs, et Renault mènent des actions waet efficacements the challenge. en And moins the logical d’un ofavons Renault trouvé Nissan chez Purchasing Nissan de aCette proportion intégration expected se fait to rise communes». response was to pool bargaining Organization or RNPO, an equally- to 70% in the future. Both Renault clout and win attractive terms for owned company based in France and Nissan stand to benefit Alain BREUILSDirecteur large orders of common which is the Alliance’s first joint in terms of cost and quality. International de RCI

CCT Purchasing members at work. Twelve Cross-Company Teams have been driving Alliance development since 1999.

“Nissan contributed nearly half Stage two of the Alliance gets under way a billion euros to Renault’s 2001 consolidated earnings, A turnaround at Nissan was • strengthening strategic Organization (RNPO) and will demonstrating its capacity essential before the launch management of the Renault- supervise the Cross-Company to stage a stronger and quicker recovery than anticipated. of stage two of the Alliance Nissan group through the Teams that have driven the And with Renault’s equity interest as agreed in 1999. In the event, creation of an equally-owned Alliance’s progress since 1999. in Nissan rising to 44.4%, we will recovery came very quickly, company incorporated in the be getting more out of this leading us to speed up the Netherlands, Renault-Nissan bv. • preserving the distinct identity recovery as of 2002. Since this process: on October 30, Taking over from the Global and independence of the two rise is associated with a capital increase reserved to Nissan, 2001 we announced a plan Alliance Committee or GAC, groups which are to continue it will not cause any significant to consolidate the balance which was responsible for running their own operations. change in our level of debt. and performance of the launching and steering the The French government has lent The second stage in the Alliance, while at the same Alliance from 1999 on, this new its support to these measures, Alliance, set for implementation time preserving the operating entity will be the Alliance's designed to consolidate the beginning in 2002 and involving both the strengthening of equity autonomy of each of our strategic command center, Renault-Nissan group, and has ties between the two groups two groups. Scheduled for ensuring overall coordination announced its intention to cut and the creation of Renault- implementation from the first of its operation. Led by Renault’s its equity interest in Renault Nissan bv, will favor good half of 2002, this plan is built Chairman & CEO Louis at a later date to 25%. performance from both Renault around three priorities: Schweitzer and Nissan’s and Nissan, while at the same time preserving the distinct President & CEO Carlos Ghosn, identity of each company • reinforcing mutual interest Renault-Nissan bv’s eight- and thus the personal through stronger equity ties. member Management Board commitment of all Renault will raise its stake in alone has the power to take employees.” Nissan from 36.8% to 44.4%, while strategic decisions for the Shemaya Lévy Nissan will acquire up to a 15% medium to long term. It will also Executive Vice non-voting interest in Renault. have sole responsibility for newly President, Each thus stands to benefit from created companies such as the Chief Financial Officer, the other's performance. Renault Nissan Purchasing Renault

23 SYNTHESE Renault.angl. 3/05/02 14:12 Page 25

GLOBAL MARKETS RENAULT’S PERFOR

Produced in Turkey, the Clio Symbol — the sedan version of Clio — was the driving force behind sales in Central and Eastern Europe in 2001, where it is marketed under the name Thalia.

Winning ways in Central Europe Continuing its strategic Quickest gains were recorded over 30 dealerships in 18 cities, enhancing potential for gains drive for international in Central Europe, where our has enabled us to multiply sales in Brazil and other Mercosur expansion, Renault market share was up from 7% by a factor of five in just two countries. consolidated to 9.9% in just a year, lifting years. The central pillar of our manufacturing and Renault from number five to presence in the region is the commercial bases in 2001. number three in the region. Brazil — growth built Ayrton Senna facility at São José Sales rose 4.4% outside Despite a drop in the Polish on a full operational base dos Pinhais in the Brazilian state Western Europe despite market, sales rose nearly 24% Renault now has a 5.2% share of Paraná. This now has two market slumps in Turkey overall, reflecting in particular of the automobile market in assembly plants with a total and Argentina, the success of Thalia Brazil — Latin America’s largest capacity of 240,000 vehicles and performances — the sedan version of Clio — — putting us in fifth place a year, including 40,000 for were particularly strong and Laguna. among local manufacturers. the more recent, as well as a in Central Europe Looking further east, sales were In December, we opened powertrain plant with an annual and Brazil. also up, exceeding our targets a new factory for Renault and capacity of 400,000 engines. It is in Russia, the Ukraine, Belarus Nissan light commercial served by an adjacent industrial and Georgia. Once again, vehicles, strengthening our supplier park. these gains rewarded position in this segment. the success of the Clio sedan Master vans from the site will be Broadening horizons and Mégane. The continuing a useful addition to our offering Sales in new markets outside expansion of our sales network of Kangoo and Trafic vans Western Europe also rose in Russia, where we now have assembled in Argentina, sharply.

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:12 Page 26

MANCE

Line workers assemble a powertrain at the Ayrton Senna plant in Curitiba, Brazil.

In South Africa, sales jumped during the year. At the same Argentina for the past six years, to over 13,000 vehicles. Growth time, export business suffered taking 18.4% of the market. was also healthy in Algeria, from the Brazilian real’s fall Tunisia and Egypt, offsetting against the dollar and peso. …and Turkey a downturn in Morocco. In the SA was thus The Turkish market also suffered Asia-Pacific region, we reaped forced to cut production and a deep slump, with sales falling the first rewards of close in the autumn adopted drastic nearly 70% in 2001. More cooperation with Nissan, selling measures to deal with the encouragingly, Renault’s share 14,200 vehicles in 2001*. And we severe crisis sweeping the was up 4.2 percentage points expect more to come, since country. In addition to job cuts to 23.6%, consolidating our our target for the region is now affecting 330 administrative staff number-one position. A main to boost sales to 22,000 vehicles at headquarters and contributing factor was local car in 2002. subsidiaries, the company buyers’ enthusiastic response * Excluding Korea. introduced a program to the Clio sedan, echoed in to encourage voluntary neighboring markets of Central Countering difficulties departures from its factory and Eastern Europe. Operations in Argentina… at Santa Isabel de Cordoba at the Bursa plant were Argentina’s economic slump and align capacity maintained in large part thanks dealt a heavy blow to the with expected sales. to this surge in exports, automobile market, which Renault nonetheless kept which accounted for nearly contracted by nearly 42% the top ranking it has held in 90% of its output.

25 SYNTHESE Renault.angl. 3/05/02 14:13 Page 27

TWO NEW BRANDS DACIA AND SAMSU

Dacia continues progress towards €5,000 car A successful beginning When we took over Dacia, sales benefited from the launch emerging markets, initially for Renault Samsung Motors our goal was to make Romania of the SupeRNova on a in Romania and Central Europe, in Korea and continuing an automobile manufacturing Romanian market that firmed then on developing markets upgrading of Dacia platform for Central and Eastern slightly. in other parts of the world. in Romania are adding Europe — still very much on The product, which will play The SupeRNova, launched new impetus to Renault's the agenda — and launch a central role in Dacia’s in 2000, is equipped with international expansion. an affordable car designed contribution to our growth a Renault engine and Progress to date confirms especially for emerging markets. strategy, will initially be available transmission unit, making it the our target: generating half In 2000, we undertook in a four-door sedan version. first product to bear the mark of group sales outside a complete overhaul of It illustrates the effectiveness of our involvement with Dacia. Western Europe by 2010. the company. This involved of the turnaround at Dacia, progressive upgrades of the All told, sales were up 3.8% and will open a new era in Pitesti plant, new training to over 52,000 vehicles, setting the company’s development programs and restructuring of its Dacia’s market share close through expansion onto export sales network. Two other priorities to 60%. markets. in repositioning Dacia are renewal of its product line-up The €5,000 car under and plans to launch an development at Renault’s entry-level car priced at €5,000 Technocentre in Guyancourt, for emerging markets. outside Paris, will provide our In 2001 modernization continued group with an original and highly at a brisk pace, while Dacia competitive offering for

Stripped down, built back up: Dacia’s Pitesti unit in Romania gears up for growth ahead.

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:13 Page 28

NG

In 2001, its first full year in operation, Renault Samsung Motors sold over 70,000 SM5s. Developed under license from Nissan, the SM5 is the third largest selling car in Korea.

Korea — now Renault’s eighth largest market Asia-Pacific region In September 2000, we took A new version of the SM5 was Based at Nissan headquarters in over the operating assets of put on the market this January Tokyo, this division includes the “Our strategy for Korea is to capitalize on the popularity Samsung Motors Inc. to found and will be followed in the entire Asia-Pacific region with of the Samsung brand name Renault Samsung Motors (RSM). autumn by a second model, the exception of Korea. Renault while preserving its identity as Over the ensuing 15 months, the SM3. These will contribute sales in Japan are still limited, a Korean manufacturer. production at our Busan site to the company's target reflecting changes in the We have nonetheless made steadily gathered pace and of boosting sales to around distribution network and line-up, some changes to the logo and our vehicles now carry our sales network grew with the 100,000 vehicles in 2002. but demand has quickened in the Renault Samsung brand. addition of some 60 new outlets, Australia, Indonesia and Taiwan. We do not currently import any raising the total to nearly Renault Samsung Motors Altogether over 85,000 vehicles , since our prime a hundred. As a result, sales facilities include a factory were sold in the region in 2001. mission is to contribute to headed up to 7,000 vehicles a at Busan with a capacity the group’s expansion with the success of Renault Samsung month and the total for 2001 of 240,000 vehicles a year, Motors. This is entirely consistent reached just over 70,000. a modern, fully-equipped with Renault’s multi-brand technical center in Giehung, strategy.” A single model, the SM5 the outstanding skills built up Jérôme Stoll — developed under license by Samsung, and an up-to-date Chief Executive Officer, from Nissan — accounted for sales organization. Deployment Renault Samsung Motors, Seoul all sales. The SM5 now has of this quality organization offers a market share of over 25% Renault truly significant potential in its segment and comes for expansion on Asia’s second in third overall on the Korean largest automobile market. automobile market.

27 SYNTHESE Renault.angl. 3/05/02 14:13 Page 29

The Laguna II Sport Tourer targets discerning car buyers with a taste for technology. SYNTHESE Renault.angl. 3/05/02 14:14 Page 30

The New Clio 2.0 RS out in front on the car rally circuit in Mexico, Avantime, a coupé version of the concept. where fans applaud its flair and handling.

The new Trafic, voted Van of the Year 2002 in Europe.

PRODUCTS ONGOING INNOVATION

Demanding standards of quality combined with creative flair set the pace for the overhaul of the Renault line-up, beginning with Laguna II and Vel Satis at the top of the range. Innovation goes hand in hand with an unswerving commitment to fundamental principles — quality, reliability and safety — that are the natural heritage of each and every Renault vehicle. Vel Satis: Smooth sleek power in a class of its own.

29 SYNTHESE Renault.angl. 3/05/02 14:14 Page 31

TOP OF THE RANGE DARING AND EXPER

A well-appointed yet discrete interior and cutting-edge technology make Vel Satis a timeless luxury car that combines elegance with comfort, reliability, superb handling and safety.

Vel Satis, a luxury sedan Vel Satis — tackling with detail and daring a changing market In a class of its own Excellence with a design Reentering a market segment Top-of-the-range cars account The strategically important all of its own. The full force — and staking out positions for for 12.5% of the European development of Vel Satis of Renault’s know-how the long term — implies market as a whole, was backed up by a special was behind this project, commitment and planning. with demand mainly from organization led by the Top-of- with crucial implications Renault rose to the challenge, Germany, the UK and France. the-Range Committee bringing for the future — mustering the expertise and Together these three countries together staff members from all developing resources needed to create represent 70% of sales, major departments. Completed a top-of-the-range car, Vel Satis. with Germany alone in just 42 months, naturally offering accounting for nearly 40%. all development was carried A car at the top of the range the highest standards out at the Renault Technocentre must combine reliability, While sedans still top the of reliability and durability, flawless mechanics, segment, they are losing on the outskirts of Paris. impeccable quality, high-quality materials, ground to , station Vel Satis is manufactured but also embodying impeccable finish and safety. wagons and cabriolets. at our Sandouville plant near the daring and innovative Vel Satis meets these We are convinced that our new Le Havre, where significant spirit that are requirements and more, setting sedan concept will be a winner investments were made the hallmarks of new standards in several areas. in Europe, where there is a long to handle production its manufacturer. And our expertise in these tradition of automotive culture. at the upper and top end Meet Vel Satis, the first fundamentals allowed us scope Vel Satis will benefit from its of the range. model in Renault's to add a special touch, setting appeal for the growing Vel Satis, Laguna II and upcoming range renewal. it apart from rivals with daring numbers of non-conformist the replacement for the Espace features that embody Renault’s customers on the lookout use the same platform. culture of innovation. for fresh values. Shared processes and common A standard bearer for Renault’s components enabled us to cut image in Europe, Vel Satis is the cost of the Vel Satis rollout expected to take 3% of the top to €550 million. And since end of the market in 2003, with Vel Satis targets a carefully sales totaling approximately defined customer profile, 300,000 units in the period from showroom staff received 2002 to 2008. special training.

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:14 Page 32

TISE

In December 2001 Vel Satis took first prize in a competition organized by the French Noise Abatement Council. Vel Satis and Laguna II are the only European cars certified 71dBA, below the 74dBA required under official standards for external noise produced by vehicles. Three major innovations built into Vel Satis include a patented trigonal multi-link rear suspension, an automatic parking brake replacing the traditional handbrake, and dual-hinged seat backs.

“The top end of the range is market in terms of elegance renewed to strengthen Benoît a big plus for brand image, and and fundamentals, but with a its leading position. Marzloff a very profitable segment, too. special touch of daring, setting it Like Formula 1 racing, Senior Vice President, Renault has moved to win full apart from traditional models in our top-of-the-range vehicles Strategy and recognition in this segment, this segment. You find the same will definitely boost Renault’s Marketing, building on our culture of approach in Avantime, a new international standing.” Renault innovation. Vel Satis is a sedan concept in the coupé segment, positioned at the top of the and the Espace, soon to be

31 SYNTHESE Renault.angl. 3/05/02 14:15 Page 33

PRODUCT LINE-UP SAFETY,PERFORMAN

New Trafic Voted Van of the Year 2002 in Europe, New Trafic combines innovative design and individual personality with superior road handling underpinned by fuel-efficient common-rail turbodiesel engines. For professionals, user-friendly features — extended maintenance-free driving, durability and ergonomics — make this van a winner, especially when teamed up with premium safety equipment that includes a best-in-class braking system. Developed jointly with General Motors Europe, New Trafic makes Renault’s line-up of light commercial vehicles the youngest and most innovative on the market.

Compact, fuel-efficient and silent The 80-hp 1.5 dCi engine ushered in by Clio – and soon to be fitted on Kangoo — builds on the winning features of the 65-hp version of the all-new K9K common-rail turbodiesel engine family. The 80-hp 1.5 dCi engine is a flexible unit in which the new generation spherical common-rail injection system affords plenty of from low engine speeds. It offers greater driving pleasure, exceptionally low fuel consumption

and CO2 emissions and a very high level of acoustic comfort. The 1.5 dCi is made at the Valladolid Motores plant in Spain, which has sole responsibility for output under the K9K program. Plans call for it to be fitted on the Nissan Almera as well. 80-hp 1.5 dCi engine on Clio.

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:15 Page 34

CE AND COMFORT

Kangoo 4x4 New Clio 2 Kangoo 4x4, with an off-road capability which is exceptional in its In 2001, Clio emerged from a major restyling with a host of new safety segment, takes Renault’s SUV range into new territory. It features and comfort features. Current equipment such as ABS an adaptive hydraulic coupling from Nissan allowing it to switch and Emergency Brake Assist is enhanced with ESP, while a reinforced automatically to four-wheel-drive mode, along with traction control, body structure and four airbags provide even greater occupant ABS and Emergency Brake Assist. In its 4x4 version, Kangoo can safely protection. For the Initiale version, a new 80-hp 1.5 dCi turbodiesel negotiate any terrain, with premium driving comfort through a 1.6-liter engine has been introduced which cuts both fuel consumption

16V gasoline engine and a 1.9 dCi common-rail turbodiesel unit. and CO2 emissions. Clio 2 also offers new automatic transmissions for its 1.2-liter 16V and 1.6-liter 16V engines. Two sporting versions from Renault Sport — the 172-hp 2-liter 16V and the 230-hp V6 24V — round out the line.

Third-generation SRP Renault’s unique SRP (System for Restraint and Protection) includes adaptive frontal airbags that inflate to two different sizes, depending on force of impact, as well as a fitted adaptive seatbelt. Together these afford greater protection in violent crashes — without secondary effects in the event of minor accidents. Other improvements include enhanced safety for backseat passengers Laguna II through a selection Laguna II — in both hatchback and sport tourer format — marks the first stage in a top-to-bottom revamp of special restraint devices that include of the Renault range. Outstanding equipment levels enhance driver and passenger comfort in one of the pretensioners, load safest vehicles on the road. Laguna II features two major technological innovations: Renault’s keyless car limiters and a range system, which uses an electronic card, and a tire pressure monitoring system. of infant seats made Laguna II is the first and only vehicle to have been awarded five stars by the independent safety-rating to Isofix standards. agency Euro NCAP — testifying to its success in encapsulating Renault’s expertise and longstanding commitment to active and passive safety.

33 SYNTHESE Renault.angl. 3/05/02 14:16 Page 35

Renault dealership in Noisy-le-Grand outside Paris. Expert, personalized customer care in a comfortable setting. SYNTHESE Renault.angl. 3/05/02 14:16 Page 36

Customer satisfaction is a key measure of performance at Renault. Our commitment to continuous progress focuses on vehicles as well as manufacturing operations: we strive to produce ever safer and more reliable vehicles, and to offer regularly updated services, while strengthening our corporate image. Renault Mais dealership in Istanbul: A pleasant atmosphere encourages relaxed exchanges with potential buyers.

CUSTOMERS COMMITMENT TO QUALITY AND SERVICE

A Twingo Quickshift and owner relaxing on the French Riviera.

35 SYNTHESE Renault.angl. 3/05/02 14:36 Page 37

QUALITY PRODUCTS FOR SAFETY AND RE

Paint inspection in Douai. The Georges Besse plant in Douai, northern France, was the first Renault plant in Europe to install a water-based paint shop, thus reducing emissions of volatile organic compounds. Specializing in Scénic, the facility has served as a pilot site for many innovations.

A corporate mission At Renault, we are Making a quality car is construction of common quality management part and constantly improving our a question of pace. By applying platforms and powertrains. parcel of everyday operations products and processes, the Renault Production Way The Renault Production Way is on the ground. Following initial seeking the best quality, across the board in all our based on a strict methodology testing in 2000, full deployment reliability and safety industrial operations, we intend to ensure consistent quality of the new system got under performance. We make to achieve the highest as well as regular productivity way in 2001. The first vehicles no secret of our efforts to standards anywhere in the gains through enhanced to be rolled out under meet the very highest world. workplace efficiency. the Renault Production Way international standards — Launched in 1998, this program In concrete terms, this means will be the new Mégane line-up. a priority set out in our has gained from insider access standardization of procedures Assembled in five countries, Alliance Quality Charter. to the Nissan Production Way, plus ongoing analysis and it will make its market debut recognized worldwide as one of knowledge sharing. All those at the end of 2002. the best in the industry. In time, involved in the manufacture these two systems will merge, of vehicles and parts — from thus easing the deployment suppliers to operators — of a joint policy for the participate actively, making

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:36 Page 38

LIABILITY

Le 6 janvier 2001, l’entrée en production à l’usine Nissan de Cuernavaca

Vel Satis brakes are put through their Acoustic testing for Vel Satis. Euro NCAP crash test, 2001: Laguna II paces at the Aubevoye proving ground came through with flying colors and in Normandy, France. was awarded the first ever five-star rating.

The Alliance Safety — Promoting prevention Quality Charter no compromise and awareness “The role of a quality assurance Renault and Nissan have drawn Renault is proud to make cars At Renault, steady engineer is to make an overall up a Quality Charter covering offering exceptional safety, both improvements in vehicle assessment of the project, nine key issues for the Alliance. active (accident avoidance) comfort, safety and design after permanently interacting Aimed at improving and and passive (protection for are just part of the story. with the other functions involved harmonizing quality at both driver and passengers). We are also committed and drawing on the support of the Quality Department as companies, this is part of the to accident prevention, In active safety, we constantly a whole. This teamwork must ongoing process of debate and more specifically developing strive to upgrade handling, begin well upstream in any new convergence between Renault public awareness of road safety project to effectively identify braking and steering precision, and Nissan that is leading to the through a comprehensive risk, integrating feedback and at the same time introducing emergence of a new culture. teaching program targeting making detailed plans to deal new driving aids. After with them. It is important to The Charter details quality children. extending ABS to all our range, analyze all the causes in-depth, methods and procedures Launched in 2000, our we are now phasing in while at the same time common to our two groups. Its “Safety for All” program is aimed balancing cost and time Emergency Brake Assist and scope extends from quality at 2 million elementary and considerations — non quality Electronic Stability Program. management in production, middle-school pupils and failure to meet deadlines both add to costs. new product development and As regards passive safety, (ages 7 to 11) throughout In the final analysis, the real procurement to customer we place special emphasis Europe. measure of our success is surveys on products and on structural strength to resist the satisfaction of customers services, procedures for dealing impacts, particularly from the with our products and services. with customer complaints and side, as well as restraint systems Which means that we have to keep our eye on changing better control of warranties. The fitted on front and back seats. expectations at all times. market trend to increasingly The third generation of the We learned a lot from long warranties on vehicles Renault System for Restraint and preparations for the assembly makes this drive for total Protection first fitted on Laguna II of the Clio sedan in Mexico reliability essential. in January 2001 is now being and, in a general way, work with Nissan on problem solving. extended to other new models Implementation of the Charter There are big differences by stages. has already taken concrete in organizational structure, the way quality is understood shape in two areas — the and in corporate culture adoption of common quality in general.” procedures in procurement, Euro NCAP Marylène and common quality Year after year, we outperform other contenders in the crash Poisse-Desbois measurement criteria. During tests carried out by Euro NCAP,an independent car assessment Quality Assurance 2001, the latter were introduced organization. Testifying to our commitment, as reflected in the Engineer, scale of our R&D outlays in this area, results confirm the quality Clio program in Mexico, at our Douai factory of the materials and equipment in our cars. After awarding four in northern France and at the stars to Mégane, Espace and Clio, in 2001 Euro NCAP hailed newly opened factory for light Laguna II with its first five-star rating ever. commercial vehicles on the Ayrton Senna site in Brazil.

37 SYNTHESE Renault.angl. 3/05/02 14:37 Page 39

RENAULT AND CUSTOMERS

Renault customers buy more than a car — they buy peace of mind.

Commitment to the highest standards Promoting sales Renault was Europe’s Focused distribution of service on the internet number-one brand for cars Distribution is currently being We naturally make a constant We are continuing to build our and light commercial reorganized into hubs that bring effort to win customer loyalty web presence in stages, with vehicles for the fourth year together different dealerships in with personal attention and our first e-commerce sites running in 2001. a given territory under a single quality service in key areas such in France, the UK and Germany To forge ever closer links management structure, sharing as repairs, backing this up with to be joined in 2002 by others with our customers support operations. This means new innovative additions to our serving Spanish, Dutch and and offer innovative significant savings for the dealer service offering. Recent Brazilian markets. Existing sites services, we are reshaping network without any reduction examples are new financing have proved a big success, our sales network, in the number of sales outlets. packages such as the New Deal attracting over 25,000 visits a setting up new joint sales in France, as well as fast-fit repair day. More and more, these lead subsidiaries in association Synergies with Nissan chains Renault Minute Service up to sales at dealerships, and with Nissan, developing Renault and Nissan sales and Renault Minute Bodyshops, in 2002 we are aiming to be new services including subsidiaries in Switzerland and available throughout Europe. the number-one automobile e-commerce websites, the Netherlands were merged We have also launched a car manufacturer on the internet. upgrading distribution, in 2001 into single legal entities rental service, Renault Rent. This year will also see the launch and more. (SLE), and German subsidiaries of the Renaultp@rts site to help are to follow suit in 2002. Dual New Distribution dealers expand their wholesale legal entities (DLE) are also Renault now makes half of all parts business with secondary being set up in other countries vehicles to order under its New networks and independent to provide joint backup for both Distribution project, the only repairers. groups' sales entities which will system of its kind applied on nevertheless continue to such a scale by any operate independently. By manufacturer. This frees pooling expertise and resources distributors from inventory in this way, we are able to cut concerns, enabling them to distribution costs and strengthen meet customer requirements the competitive positions of more easily and by the same both our groups. token increase sales.

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:37 Page 40

Restructuring of the Renault-Nissan European network with common support functions, as pictured here in Ulm, Germany. Sharing resources has made for lower costs and greater efficiency in an extremely competitive market.

39 SYNTHESE Renault.angl. 3/05/02 14:38 Page 41

Quality in practice at Douai, France, the first Renault plant to adopt AVES – the new Renault-Nissan system for evaluating vehicle quality. SYNTHESE Renault.angl. 3/05/02 14:40 Page 42

To sustain momentum and back Renault’s growth strategy, we attract key skills and invest heavily in training.

EXPERT TEAMS BUILDING FOR THE FUTURE

Renault operates over 350 sites in 36 countries. The men and the women making up our workforce must take a united approach to achieve our goals and build for the future — day by day. Discharged substances are monitored at the water treatment plant operated by the Oyak Renault plant in Bursa, Turkey.

41 SYNTHESE Renault.angl. 3/05/02 14:40 Page 43

HUMAN RESOURCES CAREERS IN MOTION

A French and Japanese team at the Technocentre in France.

Brisk recruitment Our global presence and Our group’s international This concerned all categories presence. In this way, we are new developments expansion and the growing of employees. steadily building up a network of in technology call for momentum of the Alliance with For management, the relationships and contacts, hiring as well as ongoing Nissan have far-reaching proportion of new recruits with helping us to find the new training to ensure that effects. Added to the pace of an international career profile talents we need. all staff are equipped technological development, showed a further rise, reaching The recruitment section of to cope with change. these make for deep and rapid 27% of overall recruitment after our www.renault.com website Today Renault is engaged change in patterns of behavior 25% in 2000 and 9% in 1999. is another vector which attracts in an active recruitment and organization. This form of recruitment more and more users. policy, with a particular In 2001, the recruitment of over is backed by active promotion focus on candidates 6,000 people in different parts of of Renault’s corporate image Training — a key priority offering international the world made a major outside France through Training is essential to our profiles. At the same time, contribution to revitalizing the channels that include major capacity to anticipate change wide-reaching training company, rounding out existing European press titles, career fairs and meet new challenges for programs help employees skills in core functions as well at universities and engineering our business. In France alone, hone existing skills and as new technologies. schools, and a growing internet staff received 1.4 million hours develop new ones. The aim is to rally all teams to our group’s strategy of profitable growth. “After finishing business school unit. Believe me, lifting a 13-kilo Petra Kaittola in Helsinki, I moved to France tailgate over 400 times a day Media Coordinator, and in December 2000 is very hard work. But it was Media and Advertising Strategy Advertising Department answered an online job offer definitely rewarding. I then went Finnish from Renault. The position fit to Tours in the Loire Valley to get in well with what I had been some first-hand experience doing at an advertising agency in sales. It's a different business in Paris, handling international altogether. coordination for an automobile I am now with a young and manufacturer and then media enthusiastic team of people strategy. I started my new job keen to succeed, and we work in January 2001, and did hard to do just that. my factory work experience After advertising, I would really at Douai in northern France. like to get nearer to the actual I was assigned to the painting product.”

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:40 Page 44

Renault Corporate Design: Superb facilities stimulate creative flair, drawing talented designers from around the world.

“I joined Renault in July 2001 after responding to a job offer from the Parts and Accessories of training in 2001 for an adapting some corporate “I studied information Division on the internet. It was investment equal to 6.4% programs to regional technology in Bogota and for their e-business department. spent a year as an exchange I have a degree in international of payroll. requirements. student at the Ecole des Mines commerce and I worked Our operations are increasingly Altogether 4,000 managers, in Nantes, in western France. in marketing as an intern at international and the trend has from new recruits to Next came an internship with a major French group gained added momentum as a experienced executives, took a major French vehicle operating in Poland. Later, result of our Alliance with Nissan. part in training programs in 2001 manufacturer. But instead I set up a website for the Polish of going back to Colombia Chamber of Commerce This, in turn, has made — twice the number in the I accepted a job as a software in Paris. Now I am developing languages, especially English, previous year. Special coaching storage specialist with Renault. marketing tools for ever more important. To help for senior executives provided I went through the new recruit Renaultp@rts, Renault’s first site meet this need, an e-learning additional support. program immediately after for the sale of parts and facility was set up in 2000, initially Other significant initiatives I signed up in January 2001. accessories to maintenance It began at the Sandouville and repair specialists. This is in the Paris area, with 50 on-line included joint reviews by human plant, where I was assigned part of a broader program training terminals averaging resource teams from Renault to a unit stamping body panels to make the most of new IT 500 connections a week and Nissan to find appropriate for Laguna II. I then moved on within the division, which is in the first stage. ways to develop common to a dealership, where I learned piloting the development of management practices within what it means to keep business-to-employee sites customers happy. I love for the Renault group. Management the framework of the Alliance. development everything to do with cars, I haven’t completed the new so I found this fascinating. recruit program yet, but I’ve To help managers deal I am now working on software already made several working effectively with increasingly for the storage of data on visits to France and the UK. complex situations, we have corporate management Other trips to Italy and servers. When I arrived, I had to Germany are planned to help updated and expanded our start out by myself. But without me gain a fuller understanding offerings, while at the same time expert support from the team of customer needs, completing I would never have been able my integration in the company to ensure the necessary and making me really familiar continuity.” with its culture.”

Edvar Castañeda Gabriella Grajewska Marketing Project Manager, Support Engineer Improving working conditions Renaultp@rts Information Technologies and Systems Parts and Accessories Colombian Improved safety and working conditions remain key Division objectives, as reflected in a group-wide charter adopted Polish in 2000 and implemented in the course of 2001. This has two prime aims — to preserve the health and well-being of employees, and to create working conditions that are a source of motivation. Major developments in 2001 included full audits of conditions at a number of sites, improvements in ergonomic analysis to factor in muscular and skeletal disorders, and moves to take working conditions into account in all new development projects.

43 SYNTHESE Renault.angl. 3/05/02 14:41 Page 45

LOOKING AHEAD

With an all-new minivan architecture, Espace Concept remains true to its Espace heritage while embracing the visual identity of Avantime and Vel Satis. A concept car at the top end of the range, the Espace Concept combines driving pleasure with safety, reliability and quality.

Financial outlook Product outlook 100% Renault (approved by the Board The sweeping drive to renew dCi with a four-speed 2002 marks Renault’s of Directors meeting our product range that began transmission and the 2.2-liter dCi return to Formula 1 of February 12, 2002) in 2001 with Laguna II and New with the same five-speed under its own colors, 2002 will be a year of product Clio will continue in 2002. transmission equipping with Renault engines launches for Renault, with the Vel Satis, our new flagship in the Vel Satis. and chassis. introduction of new top-of-the- luxury segment, will be launched Kangoo will offer the 80-hp 1.5- Set up in 2001, the Renault F1 Team range models and the start in early March, while the first liter dCi model currently fitted is powered by engines of the Mégane renewal, which new versions of the Mégane to New Clio, while Trafic will gain designed and produced will begin to bear fruits replacement will be rolled out added power with the 2.5-liter at the Viry-Châtillon at the end of the year. in autumn, along with the dCi now on the Master. plant on the outskirts successor of Espace, entirely The results of this revamp of Paris. The chassis Against this backdrop and is made at Enstone designed and built by Renault. of Renault’s line-up will be in a similar market context as in the UK, which also All three confirm the Renault on display at the Paris Motor in 2001 both inside and outside runs wind-tunnel tests. tradition of innovative styling, Show in autumn. The Formula 1 circuit Europe, the aim in 2002 design and technology. is an unparalleled testing is to consolidate the group's unit ground for those with sales and maintain positive We have made performance a passion to win and a commitment to operating margin, on gains from new advances in SUSTAINABLE DEVELOPMENT a consistent accounting basis. powertrain technology, with the excellence. At Renault, Renault prides itself on being we are going all out three major new engines — the a good corporate citizen, and 2002 will also mark the to compete directly 2.0-liter 16V turbo, the 3.5-liter V6 in 2002 we will publish our first beginning of a second phase with the teams that 24V gasoline and the 3.0-liter V6 social responsibility report. currently dominate in the Alliance with Nissan, This describes in detail our 24V diesel — introduced on Vel this exciting sport. putting Renault in a position achievements in terms of Satis and set to power other to bolster performance in the economic efficiency, social models in the range. Automatic equity and environmental coming years. transmissions are making protection — three significant headway. By summer fundamental aspects of sustainable development. this year, Laguna II will offer The report will be available a choice of two diesel engines both in print and on our teamed up with automatic corporate website at transmissions, the 110-hp 1.9-liter www.renault.com.

SUMMARY 2001 Renault Annual Report SYNTHESE Renault.angl. 3/05/02 14:41 Page 46

The cabin stands out for its clean lines, muted grey and light beige tones, soft leather finish, comfortable seats and floor mats. This luminous interior evokes the very best in contemporary design, with a focus on comfort and well-being. An exceptionally large glazed area rounds out the picture, and a sliding roof opens a record 2.16 square meters.

45 FLASH A3 couv ang. 3/05/02 14:59 Page 2 Imprimerie Decoster / alliance design

RENAULT 13-15, quai Le Gallo 92513 BOULOGNE-BILLANCOURT Cedex FRANCE Tel.: + 33 (0)1 41 04 50 50 www.renault.com

INVESTOR RELATIONS DEPARTMENT CORPORATE COMMUNICATIONS DEPARTMENT / SUPP’Com

Photo credits:

Marc Barthélémy: inside cover Anthony Bernier: pp. 12, 30 Olivier Blaise (Europe Média Service): pp. 11, 15, 19, 21, 22, 29, 41 Hervé Desdemaines (Studio Pons): pp. 1, 34, 37, 38-39, front cover Dingo: pp. 29, 32-33, front cover Dominique Dumas: p. 30 Georges Fessy: p. 7 Laurent Lacoste: p. 37 Jean-François Lange: p. 5 Bernard Martinez: pp. 15, 18, 20-21, 22 Stéphane Muratet: p. 9 Chris Overton: pp. 44-45 Didier Pazery: pp. 15, 33, 35, 41 Luc Perénom: pp. 6, 8-9, 10-11, 17, 21, 22-23, 27, 31, 37, 42-43 Photothèque Dacia, DR: p. 26 Photothèque Euro NCAP, DR: p. 37 Photothèque Renault, DR: pp. 25, 32 Photothèque Renault Russie, DR: p. 19 Photothèque RSM, DR: p. 27 Philippe Pons (Studio Pons): pp. 23, 36, 40 Patrick Sautelet: pp. 2-3, 15, 19, 20, 22, 24, 28, 30, 33, 35, 43 Philippe Stroppa (Studio Pons): pp. 41, inside cover Peter Vann: p. 29 Michel de Vries: front and inside cover, p. 31 4939 213 421GB