2006 Registration Document INCLUDING THE MANAGEMENT REPORT Approved by the Board of Directors on February 28, 2007 This document is available on the Renault website www.renault.com and the French version on the AMF website www.amf-france.org. Contents Contents ................................................................................................................2 Person responsible for the Registration Document.........................................7 1 Renault and the Group......................................................................................8 1.1 Presentation of Renault and the Group ............................................................................8 1.1.1 Key figures........................................................................................................................8 1.1.2 Background and highlights................................................................................................9 1.1.3 Main activities .................................................................................................................11 1.1.4 Main subsidiaries and organization chart..............................................................................25 1.2 Risk factors .......................................................................................................................31 1.3 The Renault-Nissan Alliance............................................................................................32 1.3.1 Objectives of the Alliance................................................................................................32 1.3.2 Operational structure of the Alliance ...............................................................................36 1.3.3 The status of Alliance projects ........................................................................................40 1.3.4 Nissan’s strategy and results in 2006..............................................................................48 1.3.5 Combined Alliance sales performance and financial indicators.......................................53 2 Management report .........................................................................................58 2.1 Earnings report .................................................................................................................58 2.1.1 Sales performance..........................................................................................................58 2.1.2 Comments on the financial results ..................................................................................74 2.1.3. Financial Information on the Alliance .............................................................................79 2.1.4 Outlook ...........................................................................................................................82 2.2 Research and development .............................................................................................83 2.2.1 Introduction.....................................................................................................................83 2.2.2 R&D and Renault Commitment 2009..............................................................................83 2.2.3 2006 R&D highlights .......................................................................................................85 2.2.4 R&D for more competitive engineering ...........................................................................86 2.3 Risk management .............................................................................................................87 2.3.1 Operational risk...............................................................................................................87 2.3.2 Financial risk...................................................................................................................95 2.3.3 RCI Banque customer and network risk........................................................................102 2.3.4 Legal risks.....................................................................................................................102 2.3.5 Other risks ....................................................................................................................103 2.3.6 Disputes........................................................................................................................104 3 Sustainable development .............................................................................105 3.1 Employee-relations performance ..................................................................................105 Contents 3.1.1. Motivating the men and women who work for the Group .............................................105 3.1.2. Contributing to Group performance..............................................................................109 3.1.3 Sharing Group values ...................................................................................................119 3.2 Environmental performance ..........................................................................................125 3.2.1 Environmental challenges.............................................................................................125 3.2.2 Environmental indicators...............................................................................................127 3.2.3 Cross-functional management of environmental issues................................................138 3.3 Social performance .......................................................................................................146 3.3.1 Ethics and compliance ..................................................................................................147 3.3.2 Renault and its stakeholders.........................................................................................148 3.3.3 Renault, architect of sustainable mobility ......................................................................150 3.3.4 Renault and road safety................................................................................................153 3.3.5 Contribution to civil society............................................................................................158 3.4 Table of objectives (employee relations, environmental and social)..........................161 3.4.1 Table of employee relations objectives .........................................................................161 3.4.2 Environmental objectives ..............................................................................................163 3.4.3 Social objectives ...........................................................................................................165 3.4.4 Renault, a responsible company...................................................................................168 4 Corporate governance ..................................................................................172 4.1 Board of Directors ..........................................................................................................172 4.1.1 Composition and operating procedures of the Board of Directors.................................172 4.1.2 Audit of the Board of Directors ......................................................................................180 4.1.3 Assessment of director independence ..........................................................................181 4.1.4. Compliance Officer ......................................................................................................181 4.1.5 Specialized committees of the Board of Directors.........................................................182 4.1.6 Directors’ fees...............................................................................................................183 4.2 Management bodies at January 1, 2007........................................................................184 4.2.1 Group Executive Committee .........................................................................................185 4.2.2 Renault Management Committee .................................................................................185 4.2.3 Group Executive Committee and Management Committee at January 1, 2007 ............186 4.3 Audits ..............................................................................................................................188 4.3.1 Auditors’ Charter...........................................................................................................188 4.3.2 Auditors ........................................................................................................................188 4.3.3 Fees paid to statutory auditors and their network..........................................................189 4.4 Interest of senior executives..........................................................................................190 4.4.1 Remuneration of senior executives and corporate officers............................................190 4.4.2 Stock options granted to senior executives and corporate officers................................192 Renault 2006 Registration Document – 3 Contents 4.5 Report of the Chairman of the Board pursuant to Article L.225-37 of the Commercial Code ........................................................................................................................................196 4.5.1 Report of the Chairman on the preparation and organization of the work of the Board of Directors