Isuzu KSA Info

1. 11st April 2009
Renault Feasibility Study
Summary

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

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

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

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

6. 61st April 2009
Sales Forecast & Market Share
Overview

7. 7
Sales Growth Forecast summary / units
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2007 2008 2009 2010 2011 2012 2013
sales
43%
90%
80%
34%
8%
8%

8. 81st April 2009
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2009 2010 2011 2012 2013
Koleos
safrane
Logan
Megane
Renault
0.97%
1.27%
1.33%
1.39%
1.22%
3.92%
3.81%
3.57%
2.87%
0.47%
0.59%
1.39%
1.59%
1.66%
1.75%
1.67%
0.24%
0.71% 0.74%
0.54%
0.67%
4.15%
5.15% 5.4%
5.67%
Renault products Market share (assuming 3% growth in Auto market)

9. 91st April 2009
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2009 2010 2011 2012 2013
Koleos
safrane
Logan
Megane
Renault
1.03%
1.38%
1.49%
1.61%
1.25%
4.55%
4.29%
3.90%
3.05%
0.48%
0.61%
1.48%
1.73%
1.87%
2.02%
1.72%
0.25%
0.8%
0.86%
0.58% 0.74%
4.4%
5.63%
6.08% 6.57%
Renault Market share (assuming no growth in Auto market)

10. 101st April 2009
Financial Summary

11. 11
Net profit Forecast
1,793
5,702
12,041
14,379
16,564
374
1,535
6,234
7,768
8,839
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2009 2010 2011 2012 2013
Net Profit 8.7% GP Net Profit 7% GP
SR/M

12. 12
ROCE Forecast
5.9%
8.3%
17.5%
19.1%
20.1%
1.3%
2.3%
9.3%
10.7% 11.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2009 2010 2011 2012 2013
ROCE 8.7% GP ROCE 7% GP
SR/M

13. 13
Challenges & Solutions
Challenge
• The Bad brand image in the market
Solution
• Re-launch Renault brand in KSA by Marketing activities.
• Financial budget allocated by manufacturer for re-launch events.
• Leverage Renault brand image by introducing new models to the
market adapted to the Saudi environment.
• Communicate “What is Renault?” In our re-launch activities:
– Over 110 years in Automotive market
– Owns 44% of NISSAN worldwide.
– French design, Japanese technology
– New Era for Renault products to cope with GCC requirements.

14. 14
Challenge
• Perception of low service quality
Solution
• Re-launch “Customer First” program for service.
• Communicate the new wide network of service
workshops kingdom wide:
– Now…you can serve your Renault in 8 workshops kingdom
wide and more…
• CRM to ensure high customer service for Renault users.
Challenges & solutions Cont…

15. 15
Challenge
• Perception of expensive and non-availability of parts
Solution
• Communicate our over 35 parts outlets kingdom wide.
• Restructuring price list of parts with the manufacturer.
• Communicate price comparison of parts and service
between Renault and other brands.
Challenges & solutions Cont…

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

17. 17
Why Renault Franchise for Alissa
• Renault will enter the Saudi Automotive
market, planning to capture sizable market
share, equipped with new strategy, initiatives,
products and dedicated expertise.
• Alissa is capable to accommodate and deliver
Renault objectives and goals to sustain and
grow shareholders’ profitable base.
Confidential

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

19. 19
Thank you