2007 Interactive Registration Document - Renault

G – Hedging of the investment in Nissan
The investment in Nissan is hedged by operations with a total value at
December 31, 2007 of 824 billion yen (€4,996 million), comprising 150 billion
yen (€909 million) of private placements on the EMTN market and bonds issued
directly in yen, and 674 billion yen (€4,087 million) of currency swaps. During
2007, these operations generated foreign exchange differences totalling
€153 million net of tax, which were included in the Group’s consolidated
reserves (note 19-E).
Hedging transactions were increased by 44 billion yen (€273 million) in
2007.
H – Valuation of Renault’s investment in Nissan at stock
market prices
Based on the quoted price at December 31, 2007 of 1,230 yen per share,
Renault’s investment in Nissan is valued at €14,945 million (€18,299 million at
December 31, 2006 based on the price of 1,433 yen per share, €17,241 million
at December 31, 2005 based on the price of 1 195 yen per share).
I – Renault - Nissan cooperation
Renault and Nissan follow joint strategies for vehicle and part development,
purchasing, and production and distribution resources.
The cooperation between the two groups in 2007 mainly takes the following
forms:
Joint investments
Renault and Nissan share development costs and investments for gearbox and
engine production for medium range vehicles. The two groups have been working
together since March 2006 on development of a new V6 diesel engine.
In parallel to these projects, joint development and investment operations
continued in 2007 for the production of a future cross-over-type vehicle, and
developments and investments are also being shared for production of Logan
vehicles in Brazil.
Vehicle manufacturing
In Mexico, Nissan supplies Renault with assembly services for the Clio, and
also assembles the Platina model (Nissan-badged Clio sedans). Production
totalled 21,000 units in 2007.
In Brazil, Renault launched production of Nissan-badged Logans at the Curitibia
plant in 2007, for sale on the Mexican market. The total output for the year
was 19,000 units. Renault also supplies Nissan with assembly services for its
Frontier pick-up and X-Terra models (9,000 vehicles in 2007).
Renault Samsung Motors produced 52,000 Nissan-badged SM3 vehicles in
2007, purchased by Nissan for sale through its own network (mainly in Russia
and the Middle East).
Concerning light commercial vehicles, Nissan produced 86,000 Trafi c vans at its
Barcelona plant over the year. One quarter of these are sold through the Nissan
network. Renault, meanwhile, produced 11,000 Nissan-badged Masters and
Kangoos, purchased by Nissan for sale through its own network.
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FINANCIAL STATEMENTS 07
CONSOLIDATED FINANCIAL STATEMENTS
Part sales
In Europe, 2007 saw the Renault Group begin production of engines common
to the Alliance at its Cléon plant, for use by Nissan’s Japanese and UK plants
in the Nissan Qashqai and X-Trail vehicles. Meanwhile, Renault continues to
supply Nissan’s Sunderland plant in the UK and Barcelona plant in Spain with
gearboxes and engines produced at the plants in Cacia in Portugal, Valladolid
in Spain and Cléon in France. These parts are used in Nissan’s Micra, N ote and
Qashqai . Renault also supplies gearboxes to Nissan for use in production at its
plants in Japan, China, South Africa, Indonesia and Thailand.
In Mexico, Renault supplies engines and gearboxes to Nissan for the Clio,
Platina, Tiida and Versa.
In total, Renault supplied 540,000 gearboxes and 160,000 engines during
2007.
In South Korea, Nissan supplies Renault Samsung Motors with parts and engines
used in the SM3, SM5, SM7 and the new QM5.
Renault uses Nissan’s V6 3.5 litre petrol engine for the Vel Satis and the Espace
and Nissan pinions for the Mégane. Renault also uses a 2.0 litre engine, jointly
develo ped with Nissan, for the new Laguna and Clio.
Sales
Group Offi ces, run by Renault, have been set up at European level to facilitate
exchanges of best practices for after-sales documentation and marketing
studies.
At local level, local joint Group Offi ces, held and run by Renault, have been
set up in four European countries: France, the UK, Spain and Italy. Front-offi ce
operations remain separate for the two groups.
Similarly, Nissan markets Renault vehicles in Australia and the Gulf countries.
Finance
From trading rooms in Lausanne and Singapore, Renault Finance acts as the
Nissan group’s counterparty in fi nancial instruments trading to hedge foreign
exchange, interest rate and commodity risks, in addition to its business for
Renault. On the foreign exchange markets in 2007, Renault Finance undertook
foreign exchange transactions totalling approximately €16.5 billion on behalf of
Nissan. Foreign exchange, interest rate and commodity derivative transactions
undertaken for Nissan are recorded at market price and included in the positions
managed by Renault Finance. These positions are invested on the market with
a banking counterparty. Renault Finance also participates in Nissan’s cash
management. Nissan’s deposits with Renault Finance are always invested on
the market, and cannot be used to fi nance the Renault group.
Total figures for 2007
Total sales by Renault to Nissan and purchases by Renault from Nissan
during 2007 amounted to an estimated €1,500 million and €1,400 million
respectively.
The joint policies for purchasing and other administrative functions such as
information systems departments are refl ected directly in the Renault and Nissan
fi nancial statements, and therefore generate no fi nancial exchanges between
the two Groups.
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Registration Document Renault 2007 209