Objective

Obtain an operating profit margin of 6% in 2009.

Opportunities

• Anambitious cost reduction program (purchasing, manufacturing, logistics, general and administrative costs, distribution)
• Optimized investments: more efficient spending through the application of best practices based on permanent benchmarking with Nissan and the rest of the industry
• The implementation of cross-functional management, to ensure customer needs are met as closely as possible, around the world.

2007 results in line with objectives

Operating margin:

The Group achieved an operating margin of 3.3% at end-2007 against 2.6% in 2006 thanks to:

• cost-reduction efforts:
  - 9.1% reduction in procurement costs,
  - 7.3% reduction in logistics costs,
  - 5.4% reduction in production costs,
  - 35% optimization of investment costs for new projects.

• optimization programs (which generated 200 million euros of additional operating margin):
  - development of local integration (for purchasing, production and distribution),
  - optimization of logistics,
  - simplification of the product line (40% reduction in the number of models sold in Europe),
  - better reuse of existing parts (carryover).

2008 outlook

The Group will pursue its policy of new international product launches and will continue its expansion into the most dynamic and growing markets for auto sales. Renault confirms its operating margin target of 4.5% for 2008.