AVTOVAZ Overview 05.07.2017 AVTOVAZ 50-years History 1966/1970 VAZ 2101 2016 LADA XRAY AVTOVAZ Overview 05.07.2017 2 AVTOVAZ Group: Key information 408 467 Cars & KDs produced 20.1% MOSCOW AVTOVAZ 331 Representative office sales points 30 IZHEVSK countries LADA-Izhevsk TOGLIATTI plant AVTOVAZ Head-office & 184.9 B-Rub (2.5 B-Euro) Togliatti plants 51 527 p. AVTOVAZ Overview 05.07.2017 3 AVTOVAZ footprint Local Producer of Renault / Nissan / Component Supply Develop / Build / Sell / Service LADA cars globally Datsun cars & Components on Russian market Design Engineering Purchasing (ARNPO) Production incl. components Sales Service + Finance Spare parts AVTOVAZ Overview 05.07.2017 4 LADA product portfolio LADA Granta LADA Kalina LADA Priora LADA Vesta LADA XRAY LADA Largus LADA 4x4 Granta Sedan Kalina Hatchback Priora Sedan Vesta Sedan XRAY Largus 5- or 7-seats 4x4 3-doors Launched Launched Nov, 2015 Feb, 2016 Granta Liftback Kalina Wagon Largus Cross 4x4 Urban 3-doors 5- or 7-seats Vesta SW Granta Pick Up Kalina Cross Largus Fourgon 4x4 5-doors LADA Sport Launch H2 2017 Granta Sport Kalina Sport 4x4 Urban 5-doors Kalina NFR 4x4 Pick Up AVTOVAZ Overview Confidential 05.07.2017 5 Russian TIV Achievements 5m’2017 – LADA Market Share Top-10 brands, К units / MS % Top-10 PC models, К units MS 2017 vs. 2016, % LADA 19.5% 112.8 Kia Rio Kia Rio 38.1 Kia LADA +1,0% Kia 11.9% 68.4 LADA Granta LADA Granta 33.4 Renault VW Hyundai 9.7% 56.0 LADA Vesta LADA Vesta 28.0 Datsun Mazda Renault 8.4% 48.6 Hyundai SolarisHyundai Solaris 25.3 Hyundai GAZ LCV Toyota 6.0% 34.8 Hyundai CretaHyundai Creta 20.1 Chevrolet Skoda Ford VW 6.0% 34.8 VW Polo VW Polo 18.1 BMW Mitsubishi Nissan 4.9% 28.3 Renault DusterRenault Duster 15.9 Lifan Lexus Skoda 4.0% 23.0 LADA XRAY LADA XRAY 12.7 UAZ Mercedes-Benz GAZ LCV 3.4% 19.9 Toyota RAV4Toyota RAV 4 12.4 Audi Ford Nissan 3.0% 17.4 Chevrolet NivaChevrolet Niva 11.9 Toyota AVTOVAZ Overview 05.07.2017 6 AVTOVAZ: Togliatti and Izhevsk plants overview Togliatti Izhevsk Capacity* 650 K vehicles per year Capacity* 113 K vehicles per year 3 Vehicle Lines** + 1 Vehicle Line + Powertrain & Components Lines Components Lines 312 K cars*** in 2016 96 K cars*** in 2016 377 K cars*** in 2017 118 K cars*** in 2017 * Harbour standard (3 760 h per annum) ** From 1/2017 *** Including KDs and painted X52 bodies for Oran AVTOVAZ Overview Confidential 05.07.2017 7 Components production overview (1/2) Autocomponents production of 6 component plants and tooling production Engine Gear box Chassis Foundry Plastic parts Stamping Tooling 16-valve Main processes Main product 16-valve 8-valve engine engine engine K4M490 – . Machining . Engine 21179 – 11183 – 1.6l 1.8l 1.6l Engine . Assembly . Gearbox (Jxx) . Try-outs 16-valve plant engine 8-valve 21127 – engine 1.6l 21214/ 2123 – 1.6l 16-valve JH/JR gear engine box H4M – 1.6l Main processes Main product 5MT Gearbox 5MT Gearbox 5AMT Gearbox Model 2180 Model 2181 Model 2182 Gear box . Machining . Gearbox plant . Thermo treatment . Transfer case . Assembly Transfer case 5MT Gearbox . Trial Model 21214/2123 Model 21074/2123 Main processes Main product Rear suspension and Front brake . Machining . Chassis kits : Renault, Nissan Chassis Lada FF, Lada Vesta, Front-wheel drive for . Body shop Renault, Nissan Lada XRay, Datsun Lada, Datsun Steering for plant . Paint shop LADA FF, 4x4, Datsun, Lada, Datsun . Assembly Chevrolet Niva Front suspension Rear axle Renault, Nissan for Lada 4x4, Lada XRray, Vesta Chevrolet Niva AVTOVAZ Overview 05.07.2017 8 Components production overview (2/2) Engine Gear box Chassis Foundry Plastic parts Stamping Tooling Forging blank parts Main processes Main product Aluminum blank parts . Aluminum casting . Engine blank parts Metal-ceramic products Foundry . Iron casting . Gearbox blank parts . Forging . Chassis blank parts . Heat treatment Iron casting blank H4 powertrain parts aluminum blank parts Main processes Main product Bumpers FR/RR, including painted Instrument panel and its components Plastic . Molding . Bumpers, instrument panels, . Blowing . Tanks, air ducts parts FR/RR door lining and its components . Thermoforming . Door trims plant . Welding, assembly . Body side trims . Painting Main processes Main product Roof panel . Stamping . Large body parts (panels of Front Stamping fender bodysides, roofs, doors, plant hoods, etc.) Door panel . Body frame parts (reinforcements, arches) Main processes Main product . Designing . Stamping dies Tooling . Manufacturing . Molding dies . Control . Foundry tooling . Mounting . Welding equipment Stamping tooling Foundry Welding tooling equipment AVTOVAZ Overview 05.07.2017 9 Key levers & targets for 2017 Revenue growth Efficiency improvement • Promotion of LADA Brand • Optimization of purchases Image • Deep localization • Monozukuri in partnership with suppliers • LADA Product events • Launch of VESTA SW/SW Cross • Manufacturing efficiency • “Exclusive” versions for Vesta and • Alliance Production Way (APW) XRAY • Industrial Park in Togliatti • Limited Editions (4x4 “40th Anniversary”, …) • Efficient processes/Digital • LADA Connect transformation • Export push • Leverage of Synergies with • Growth of Aftersales, Renault - Nissan Alliance Services and Components sales Optimization of financial • Preparation of future LADA results line-up AVTOVAZ Overview Confidential 05.07.2017 10 AVTOVAZ & LADA development & investments priorities New models New models New models 2 5 5 Line-up renewal 4 Facelifts 2 Facelifts 5 Facelifts 2017 - 2019 2020 - 2022 2023 - 2026 Vehicle content enhancement Facilities Togliatti Izhevsk efficiency & modernization AVTOVAZ Overview Confidential 05.07.2017 11 LADA global competitiveness conditions CIS Other countries Right export countries export countries in 2017 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Germany Right product Lebanon Lebanon Hungary Hungary Right partners Decree №905 Right support AVTOVAZ Overview Confidential 05.07.2017 12 Mid-term vision of AVTOVAZ Group 3 000 RF PC Market (k-units) 0,9 0,8 2 500 • Full leverage of Russian market recovery with 0,7 2 000 0,6 0,5 1 500 minimum 20% passenger cars market share 0,4 1 000 0,3 0,2 500 0,1 • Export push in CIS and other selected regions of 0 0 the World • Strong cost optimization including deep localization • Full utilization of Togliatti and Izhevsk plants’ capacities for LADA, Renault and Nissan/Datsun vehicles • Integration of Alliance standards and systems • Strong support from Renault-Nissan Alliance and Rostec AVTOVAZ Overview Confidential 05.07.2017 13 .