2007 Interactive Registration Document - Renault

In April 2007, in addition to an ordinary dividend of SEK 25 per share, a superdividend
was paid out. Volvo made a six-for-one stock split with one share
being automatically redeemed at SEK 25. Renault thus received €477 million
in dividends in 2007.
RENAULT AND THE GROUP 01
PRESENTATION OF RENAULT AND THE GROUP
A dividend of SEK 5.5 per share for 2007 will be submitted for the approval of
the next General Meeting.
In 2007, Volvo’s contribution to Renault’s net income was €352 million,
compared with €384 million in 2006 (see c hapter 7, note 14 in the notes to
the Consolidated Financial Statements).
2007 2006
(million) SEK EUR* % CHANGE SEK EUR*
Net revenues 285,405 30,848 10.00% 258,835 (1) 26,832
Operating income 22,231 2,403 9% 20,399 2,205
Net income 15,029 1,624 -8% 16,318 1,765
Dividend per share in SEK
Super dividend in SEK
25
25
for fiscal year 2006
198.50%
16,75 for fiscal year 2005
Closing at Dec. 31 in SEK Volvo A share 108 15.50% 93.52
Volvo B share 108.5 19.70% 90.67
* 1 EUR = 9.25 SEK.
(1) R estated.
At December 31, 2007, based on a share price of SEK 108 for Volvo A
shares and SEK 108.50 for Volvo B shares, Renault’s holding in AB Volvo was
valued at €5,067 million (€4,650 million at December 31, 2006). The market
capitalization of Volvo at this date was €24,452 million.
NISSAN
Renault’s shareholding in Nissan is described in detail in sub-c hapter 1.3.4
on the Alliance.
The market capitalization of Nissan at December 31, 2007 was €34.2 billion,
based on a closing price of ¥1,230 per share.
Renault holds 44.3% of the capital of Nissan. At December 31, 2007 the market
value of the shares held by Renault totaled €14.9 billion.
Renault accounts for its shareholding in Nissan by the equity method, as
described in c hapter 7 note 13 of the notes to the consolidated fi nancial
statements.
PARTNERSHIPS AND COLLABORATIVE PROJECTS
To maintain and enhance its competitive edge in the automotive industry,
Renault is continuing its policy aimed at optimizing purchases. As part of Renault
Commitment 2009, it has stepped up efforts in terms of profi tability and quality,
in close relation with suppliers.
Renault has outlined relations with suppliers in a common charter with Nissan
called the Renault-Nissan Purchasing Way. The charter is based on two key
principles:
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achieve a high level of performance in quality, costs and delivery times,
respecting clear processes that are deployed globally;
share Alliance values such as trust, respect and transparency.
Renault views supplier relations over the long term, and is conducting a policy
of active support in the following areas:
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product development: Renault works in close cooperation with its suppliers
at the very start of projects, with a view to meeting price and quality targets
and cutting development times;
quality: Renault has seconded 120 quality experts, of whom half are outside
France, to work with its suppliers. These experts aim to boost quality by
implementing strict tools and processes from the very start of the project,
during service life, and for after-sales parts;
competitiveness: Renault has seconded 40 experts to supplier development,
to improve their competitiveness and that of their own supply chain;
logistics: Renault is implementing EVALOG – a tool designed to improve
logistics performance – with suppliers;
innovation: Renault is implementing co-innovation contracts with its most
innovative suppliers. These contracts clearly set out the objectives pursued,
the breakdown of costs, ownership rights, exclusivity periods, etc.
In return for the resources supplied by Renault and the prospects of increased
volumes linked to a broader range, suppliers agree to improve their performance
and contribute to Renault’s international development.
✦ Global Reporting Initiative (GRI) Directives Registration Document Renault 2007 17
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