Capital Market Day 16 September, 2004
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1 Capital Market Day Capital Market Day 16 September, 2004 Stefano Chmielewski President Renault Trucks
2 2 Capital Market Day 2004 Renault Trucks : A multispecialist with a wide offer, always customer-focused 2 General haulage Express parcels Controlled temperature Bulk liquids Bulk powders Construction Local authorities All others : Defense Timber Special applications Heavy haulage
3 Capital Market Day Breakdown of sales per range YTD July % Premium 13% Magnum Kerax 10% Midlum 21% Mascott 17% Master 15%
4 Capital Market Day Achievements
5 Capital Market Day SALES DEVELOPMENT YTD July 2004 / YTD July New trucks : + 14% Spare Parts : + 5% Used Trucks : + 24 %
6 6 Capital Market Day 2004 New truck sales per destination (units) YTD July 2004 / YTD July 2003 All ranges 6 TOTAL : 39,730 = + 14% +5% +6% +19% +21% +66%
7 7 Capital Market Day 2004 New truck sales (units) : Focus on Eastern Europe YTD July 2004 / YTD July 2003 All ranges TOTAL : 2,977 = + 21% 7 76% +9% +33% +5%
8 Capital Market Day New trucks sales (units): Overseas evolution 8
9 Capital Market Day Productivity improvements continue Man Hours per Vehicles and Cabs 9 CAPACITY UTILIZATION capital intensive 3 shifts/day + we (ie stamping) capital & labour intensive 3 shifts/day ( ie welding, painting) labour intensive 2 shifts/day (ie assembly)
10 Capital Market Day Preparing the future
11 11 Capital Market Day 2004 Manufacturing activities : concentrating on core business Renault Trucks assembly plants Renault Trucks components plants 11 Blainville Manufacturing of all Renault Trucks cabs, DAF LF Midlum assembly Bourg-en-Bresse Magnum and Premium assembly (Kerax in 2006) Saint-Priest CKD activities all ranges Limoges Military vehicles Blainville Components (cabs & chassis) Electrical harnesses Vénissieux Stamping (cabs & chassis) Limoges Manufacturing of small series components (incl. axles) Remanufacturing center for engines and transmissions Villaverde Kerax assembly (until 2006) 7 CKD assembly operations: Morocco, Tunisia, Egypt, Iran, Sudan, Uruguay, Malaysia. Villaverde Machining of engines crankshafts Policies : All factories ISO Suppliers Park Concept
12 Capital Market Day Renault Trucks Launches Renault Master (Oct. 03) Renault Premium Lander (Oct. 03) Renault Mascott (May 04) % compared with 2003 the advantages of a road vehicle the mobility of a construction vehicle Sherpa range (June 04) + 8 % compared with 2003 Renault Puncher (July 04) A new range for special purposes 6x6 or 8x8, from 5 to 12 tons A new range for refuse collector applications, answering Low Entry Cab Market demand
13 13 Capital Market Day 2004 Renault Trucks Retail Strategy Basics 13 Renault Trucks objectives : 1. Consolidate a wide distribution network 2. Limit the costs and tied-up capital 3. Ensure "Proximity" with our customers Renault Trucks is a multispecialist with a range from 3,5 t to 44 t need for "Proximity" to the different specialist transport businesses Our Strategy is therefore to : 1.Choose private entrepreneurship wherever possible. 2.Build a good franchise value and a complete competitive business offer to attract strong, independent, financially viable, "local" dealers
14 14 Capital Market Day 2004 Renault Trucks Retail Strategy Implementation : Three layers model 14 GLOBAL Network development Focus on network strategy Define Strategy NATIONAL Market Company Add value to dealers and customers Implement LOCAL DEALERS Focus on customer value and profitability (Your success is our commitment) Act PRIVATE DEALERS RTCE
15 15 Capital Market Day 2004 Renault Trucks Retail Strategy RTCE: Renault Trucks Commercial Europe 15 We own strategic dealers in sensitive areas in Europe France Spain UK Germany Belgium Netherlands 21 Branches 5 Branches 7 Branches 4 Branches 1 Branch 5 Branches Example for private dealers Expansion tool Maintenance hours sold in France 2004 (estimate) :
16 16 Capital Market Day 2004 Expansion on Emerging Markets : A pragmatic approach based upon profitable business case with a quick pay-back 16
17 17 Capital Market Day 2004 Priorities Deliver the Product & Service Plan Profitable growth Margin improvement Network quality Reduce break-even point
18 Capital Market Day
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