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					ANNUAL REPORT 2008
        RENAULT s.a.s.
100 %

        RCI Banque S.A.                                                                O R G A N I Z AT I O N
                                                                                                    CHART
  Algeria      100 %
                         RCI Services Algérie S.A.R.L.
                         (not consolidated)                                                          2008
  Argentina              RCI Banque Sucursal Argentina                Rombo Compania Financiera S.A.    Courtage S.A.

                                                                              60 %                              95 %


  Austria      100 %     RCI Bank A.G.




                         Renault AutoFin S.A.                         Renault Crédit Car
               100 %                                        50,10 %
                                                                      (partnership)
  Belgium
                                                                      RCI Financial Services
               100 %     RCI Financial Services S.A.        100 %     Luxembourg

                                                                                                                                           99 %

                                                                      Companhia de Credito
                         Administradora de Consorcio                                                    Companhia de Arrendamento     Corretora de Seguros
  Brazil       99,92%
                         Renault do Brasil S/C Ltda
                                                                      Financiamento e Investimento
                                                                                                        Mercantil Renault do Brasil   Renault do Brasil S.A.
                                                                      Renault do Brasil

                                                                             60,07 %                           60,12 %                      1%

                         RCI Servicios Colombia S.A.
  Colombia     94,99 %
                         (not consolidated)



                         RCI USLUGE d.o.o
  Croatia      100 %
                         (not consolidated)




                50 %     Renault Leasing C.Z. S.r.o.
  Czech
  Republic
               100 %     RCI Finance C.Z. S.r.o.




               100 %     Diac S.A.                                    Diac Location S.A.                Cogera S.A.                   Sogesma S.A.R.L

  France                           100 %                                      100 %                            94,81 %                     100 %

                         Sigma Services S.A.




                         RCI Banque S.A.
                                                                      RCI Leasing GmbH
                         Niederlassung Deutschland

  Germany                                                                     100 %

               100 %     RCI Versicherungs
                         Service GmbH




  Hungary      100 %     RCI Zrt




  Italy                  RCI Banque Succursale Italiana               Overlease S.r.l.

                                                                              49 %

                         RCI Services Ltd                             RCI Life Ltd                      RCI Insurance Services Ltd
  Malta        100 %
                         (not consolidated)
                                                            100 %
                                                                      (not consolidated)                (not consolidated)

                                                                                                               100 %

                         NR Finance Mexico S.A. de C.V.
  Mexico        15 %
                         Sofom, E.N.R. (equity accounted)




  Morocco      100 %     RCI Finance Maroc S.A.              100 %    RDFM S.A.R.L (not consolidated)
Netherlands       100 %   RCI Financial Services B.V.




Poland            100 %   Renault Credit Polska Sp. z o.o            RCI Bank Polska S.A.

                                                                            100 %


                          RCI Banque Sucursal Portugal

Portugal
                          RCI Gest Instituiçao                       RCI Gest Seguros-Corretores
                  100 %                                      100 %
                          Financeira de crédito S.A.                 L.D.A.




                  100 %   RCI Finantare Romania S.R.L.       100 %   RCI Broker de asigurare S.r.l.

Romania
                  100 %   RCI Leasing Romania IFN S.A.




                          RN Finance RUS s.a.r.l.
Russia            100 %
                          (not consolidated)



                          RCI Services doo u osnivanju
Serbia            100 %
                          (not consolidated)




Slovakia          100 %   RCI Finance SK S.r.o.




                          RCI Banque S.A.
Slovenia                  Bančna podružnica Ljubljana



                          RCI Financial Services
South Korea       100 %
                          Korea Co. Ltd



                          RCI Banque S.A.
Spain                     Sucursal en España
                                                                     Overlease S.A.

                                                                            100 %

                          Renault Finance Nordic
Sweden                    Bankfilial till RCI Banque S.A.,
                          Frankrike

                                                                                      2008 HIGHLIGHTS:
Switzerland       100 %   RCI Finance S.A.                                            BELGIUM:
                                                                                      Renault Services S.A. was wound up on 20 May 2008.
                          RCI Financial Services Ukraine,                             FRANCE:
Ukraine           100 %
                          Ltd (not consolidated)                                      Sygma S.N.C. was wound up on 30 September 2008.
                                                                                      GERMANY:
                                                                                      RCI Banque took over and merged with Finanzholding
                  100 %   RCI Financial Services Ltd
                                                                                      GmbH on 23 May 2008.
United Kingdom
                  100 %   Renault Acceptance Ltd                                      MALTA:
                                                                                      A holding company controlling two insurance companies
                                                                                      was formed in December 2008.
                                                                                      MOROCCO:
                                                                                      RCI Banque sold shares in RDFM S.A.R.L. to RCI Finance
                                                                                      Morocco S.A. on 1 July 2008.
                                                                                      PORTUGAL:
                                                                                      RCI Gest Instituiçao took over and merged with RCI Gest
   FINANCE AFFILIATE                                                                  Leasing in December 2007, taking effect on 1 January 2008.
                                                                                      SERBIA:
   BRANCH                                                                             A commercial subsidiary was formed in December 2008.
   REFINANCING SUBSIDIARY                                                             SPAIN:
                                                                                      RCI Banque took over and merged with Artida SA
   SERVICE AFFILIATE                                                                  on 23 May 2008.
RCI Banque provides sales
financing for Renault Group
brands (Renault, Renault
Samsung Motors and Dacia)
worldwide and for Nissan,
mainly in Europe.

The RCI Banque has operations in:
• France;
• twenty-four other countries in Europe:
  Austria, Belgium/Luxembourg,
  Bosnia Herzegovina, Croatia,
  Czech Republic, Denmark, Estonia,
  Finland, Germany, Hungary, Italy,
  Latvia, Lithuania, Norway,
  Netherlands, Poland, Portugal,
  Serbia, Slovakia, Slovenia, Spain,
  Sweden, Switzerland and
  United Kingdom;
• the “Euromed” region:
  Algeria, Morocco, Romania,
  Russia and Ukraine;
• the Americas:
  Argentina, Brazil, Colombia
  and Mexico;
• and in Asia:
  South Korea.

As a captive finance company,
the RCI Banque group offers
a comprehensive range of
financing and related services to
three target customer segments:
• the Retail and Corporate markets,
  to which the RCI Banque group
  offers new and used car loans,
  rentals with options to buy, leases
  and long-term rentals. It also
  provides related services such
  as maintenance and extended
  warranties, insurance and roadside
  assistance and fleet management;
• Renault and Nissan dealers.
  The RCI Banque group finances
  inventories of new cars, used
  cars and spare parts as well as
  short-term cash requirements.
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                 CONTENTS
                                                                                                                 ANNUAL REPORT
                                                                                                                 Letter from the Chairman                     2-3

                                                                                                                 Key figures                                      4

                                                                                                                 Significant events                               5

                                                                                                                 Results 2007                                     6

                                                                                                                 Outlook                                          7

                                                                                                                 A customer-oriented
                                                                                                                 organization                                 8-9

                                                                                                                 Customer financing                        10-13

                                                                                                                 Dealer financing                          14-15

                                                                                                                 RCI Banque group
                                                                                                                 operations                                16-17

                                                                                                                 Financial policy                          18-21

EXECUTIVE COMMITTEE                             BOARD OF                                                         Human Resources policy                    22-23

Seated, from left to right,                     DIRECTORS                                                        Value Up                                  24-25
front row
                                                Philippe Gamba
Éric Spielrein                                  Chairman of the Board
Senior V.P., Corporate Secretary
Françoise Le Goff
                                                Patrick Blain
                                                                                                                 BUSINESS REPORT
Senior V.P., Communication                      Patrice Cabrier
Executive Assistant                             Alain Dassas                                                     RCI Banque group operations
Philippe Gamba                                                                                                        • Europe                             28-42
                                                Jean-Baptiste Duzan
Chairman & Chief Excutive
Officer                                         Jean-Pierre Framezelle                                                • Euromed                            43-44

                                                Thierry Moulonguet                                                    • Americas                           45-46
Seated, from left to right,
                                                Gilbert Guez                                                          • Asia                                    47
Jean-Pierre Framezelle
Senior V.P., Sales Operations, Diac             Honorary Chairman
                                                                                                                 Auditor’s report                               48
Antoine Rousselin
Chief Financial Officer                                                                                          Internal control & financial
                                                AUDITORS                                                         security                                  49-58
Patrice Cabrier
Senior V.P., Europe                             Deloitte & Associés                                              Risks                                     59-73
                                                Ernst & Young Audit
Geoffroy Lopin
Senior V.P., Enterprise Division
/ Americas
Alain Drault                                                                                                     MANAGEMENT REPORT
Senior V.P., Information Systems
Frédéric Renaud                                                                                                  Auditor’s report                               77
Senior V.P., Credit Risk
                                                                                                                 Consolidated financial
Antoine Lepinteur                                                                                                statements RCI Banque group 78-81
Senior V.P., Human Resources
Michel Lucas                                                                                                     Notes to the consolidated
Senior V.P., Euromed region                                                                                      financial statements                    82-122
/ Asia-Africa
                                                                                                                 General information                   123-131
Daniel Rebbi                                                                                                     about RCI Banque
Senior V.P., Marketing




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 01 -
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




- 02 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LETTER FROM THE CHAIRMAN




                                                        Against the backdrop of a declining                      In 2008, we were also able to put
                                                        automobile market, new financings                        in place new medium-term bank
                                                        fell by 4.7% in 2008.                                    loans and access State-guaranteed
                                                        The cost of risk, which only                             loans via the Société de financement
                                                        went up because of the deterioration                     de l’économie française (SFEF).
                                                        in the Spanish market, was kept                          By diversifying its sources of funds,
                                                        under control and held at 0.87%                          and given its structuring expertise,
                                                        of our outstandings.                                     RCI Banque has the leverage it needs
                                                        The group’s independent underwriting                     to address its requirements in 2009.
                                                        policy was made more selective,
                                                        helped by the flexibility and                            In 2008, RCI Banque, with the help
Like other economic players,                            adaptability of our internal systems.                    and commitment of every single one
in 2008 RCI Banque was affected                                                                                  of its employees, counterbalanced
by the problems in the banking                          ROA (return on assets) remained                          the negative effects of the crisis by
system and the volatility in the                        above 2% of the outstandings carried                     responding proactively and adapting
financial markets, but also by the                      by the group, giving a net income                        quickly to changing circumstances.
crisis in the automobile industry.                      of €314 million, in line with the
Nevertheless, the year 2008 proved                      operating margin to which we had                         Our productivity increased and our
the robustness of the RCI Banque                                                                                 margins on services improved.
                                                        committed.
group’s business model and enjoyed                                                                               Our internal systems demonstrated
the benefit of the prudent policies                                                                              their soundness, and our processes,
                                                        In a profoundly changing environment,
put into practice in recent years.                                                                               in particular our crisis management
                                                        RCI Banque adapted its operating
                                                                                                                 process, proved their effectiveness.
                                                        methods to the current financial
In line with its role of supporting                                                                              Our financial balance sheet is
                                                        context.
carmakers’ sales, RCI Banque held                                                                                healthy, and a number of defining
                                                        The financial policy put in practice
firm to its policy of integration with                                                                           projects for the company, and for
                                                        by the group in recent years,
manufacturers as well as to its                                                                                  the management of Customer and
financial strategy, and as a result,                    consisting in financing assets
                                                                                                                 Dealer financing, were rolled out.
maintained its business activity                        by means of longer-term liabilities
with a penetration rate of 32.2%                        and thus maintaining a positive gap
                                                                                                                 Our fundamentals are as sound
in Western Europe (33% in 2007).                        liquidity position, was sustained                        as they always have been and
The contribution made by its                            throughout the year.                                     as a result, we can look forward to
international business also showed                      The group also increased its liquidity                   2009 with confidence.
strong growth.                                          reserve (expressed as being
                                                        the difference between available
Working in conjunction with                             liquidities on the one hand, and
manufacturers and their networks,                       certificate of deposit outstandings                                                       Philippe Gamba
RCI Banque implemented a policy                         on the other) to €4 billion.
aimed at decreasing inventories,                        The €911 million increase compared
which helped dealers to recover                         with 2007 was mainly due to
their margins by limiting the weight                    the securitization of the leasing
of inventories on their cash flows,                     portfolio in Germany and to improved
and helped RCI Banque to free up                        utilization of our European Central
additional sources of funds for                         Bank (ECB) eligible collateral
Customer financing.                                     potential.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 03 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


                                                                                                                                                                                                                                                                                                                                            KEY FIGURES
                                                                                                                                                                                                                                                                                                                                            Total number of vehicle contracts
                                                                                                                                                                                                                                                                                                                                            (excluding cards and personal loans)
                                                                                                                                                                                                                                                                                                                                            in thousands

                                                                                                                                                                                                                                                                                                                                             1,058
                                                                                                                                                                                                                                                                                                                                                        1,037

                                                                                                                                                                                                                                                                                                                                                                      946


                                                                                                                                                                                                                                                                                                                                                                               898
                                                                                                                                                                                                                                                                                                                                                                                             858
                                                                                                                                                                                                                                                                                                                                                                     06
                                                                                                                                                                                                                                                                                                                                              04


                                                                                                                                                                                                                                                                                                                                                        05




                                                                                                                                                                                                                                                                                                                                                                               07


                                                                                                                                                                                                                                                                                                                                                                                          08
                                                                                                                                                                                                                                                                                                                                                                   20
                                                                                                                                                                                                                                                                                                                                            20


                                                                                                                                                                                                                                                                                                                                                      20




                                                                                                                                                                                                                                                                                                                                                                             20


                                                                                                                                                                                                                                                                                                                                                                                        20




                                                                                                                                                                                                                                                                                                                                         .................................

                                                                                                                                                                                                                                                                                                                                            New lending
                                                                                                                                                                                                                                                                                                                                            (excluding cards and personal loans)
                                                                                                                                                                                                                                                                                                                                            in millions of euros




                                                                                                                                                                                                                                                                                                                                                        10,357
                                                                                                                                                                                                                                                                                                                                            10,553
                                                                                                                                                                                                                                                                                                                                                                               9,438
                                                                                                                                                                                                                                                                                                                                                                   9,737

                                                                                                                                                                                                                                                                                                                                                                                             8,896
                                                                                                                                                                                                                                                                                                                                              04


                                                                                                                                                                                                                                                                                                                                                        05


                                                                                                                                                                                                                                                                                                                                                                     06


                                                                                                                                                                                                                                                                                                                                                                               07


                                                                                                                                                                                                                                                                                                                                                                                          08
                                                                                                                                                                                                                                                                                                                                            20


                                                                                                                                                                                                                                                                                                                                                      20


                                                                                                                                                                                                                                                                                                                                                                   20


                                                                                                                                                                                                                                                                                                                                                                             20


                                                                                                                                                                                                                                                                                                                                                                                        20




                                                                                                                                                                                                                                                                                                                                         .................................


                                                                                                                                                                                                                                                                                                                                            Net loan outstandings at year-end
                                                                                                                                                                                                                                                                                                                                            in millions of euros


                                                                                                                                                                                                                                                                                                                                                                                    23,243
                                                                                                                                                                                                                                                                                                                                                         23,411
                                                                                                                                                                                                                                                                                                                                                                    22,983
                                                                                                                                                                                                                                                                                                                                            22,142                                             20,663
                                                                                                                                                                                                                                                                                                                                              04


                                                                                                                                                                                                                                                                                                                                                        05


                                                                                                                                                                                                                                                                                                                                                                     06


                                                                                                                                                                                                                                                                                                                                                                               07


                                                                                                                                                                                                                                                                                                                                                                                          08
                                                                                                                                                                                                                                                                                                                                            20


                                                                                                                                                                                                                                                                                                                                                      20


                                                                                                                                                                                                                                                                                                                                                                   20


                                                                                                                                                                                                                                                                                                                                                                             20


                                                                                                                                                                                                                                                                                                                                                                                        20




                                                                                                                                                                                                                                                                                                                                            Note: Accounts prepared under IFRS since 2004.




                                                                                                                                                                                                                                                                                                                                          - 04 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SIGNIFICANT EVENTS
In a profoundly changing                                RCI Banque maintained its business                       Following the retained securitization
                                                        activity with a penetration rate of 32.2%                of the German subsidiary’s leasing
economic environment,                                   in Western Europe (33% in 2007).                         portfolio, the RCI Banque group
RCI Banque has adapted                                                                                           has increased its ECB eligible
                                                        In 2008, the RCI Banque group                            collateral by €675 million until
its operating methods                                   continued its international expansion,                   the securitization market re-opens.
to the current financial                                with:
                                                        • The operational start-up of business                   The reactivation of the registration
context in order to fulfill                               in Scandinavia (wholly owned Dealer                    mechanism for credit claims on French
its role of providing                                     loan business and commercial                           borrowers eligible as Banque de
                                                          agreements on Customer loans                           France collateral also increased
financing to support                                      in Denmark, Sweden, Finland and                        potential access to Central Bank
sales, while at the same                                  Norway) and in Ukraine (commercial                     liquidity by €220 million. Refinancing
                                                          agreement on Customer loans).
time upholding a prudent                                                                                         from the Central bank, which is
                                                        • The signature of a commercial                          far more competitive than other
financial policy.                                         agreement and creation of                              short-term funding sources,
                                                          a commercial structure in Serbia.                      thus increased to €1.2 billion
                                                        • The reinforcement of RCI Banque                        (+€750 million), offsetting the fall
                                                          operations in the Baltic countries,                    in Certificate of Deposit and ECP
                                                          with the start-up of the Dealer                        outstandings.
                                                          financing business in April 2008.
                                                        • The creation of two RCI Insurance                      Like all French banks, the RCI Banque
                                                          Companies (life insurance and                          group is entitled to raise funds
                                                          non-life insurance) based in Malta,                    granted by the Société de
                                                          intended to market RCI Banque                          financement de l’économie française
                                                          Borrower Insurance programs                            (SFEF). RCI Banque was the first
                                                          from 1 January 2009 onwards, with                      establishment without any shares
                                                          the requirements of RCI Germany                        in this structure to benefit from
                                                          being the priority focus.                              funding, and in addition to its normal
                                                        • The signature of a commercial                          share of SFEF support, was granted
                                                          agreement in Hungary, with                             the right to benefit from a €500 million
                                                          operational start-up scheduled for                     “reserve” drawdown facility.
                                                          early 2009.                                            The part of this allocated amount still
                                                                                                                 unutilized, equivalent to €250 million,
                                                        Working in conjunction with                              will be mobilized early in 2009 once
                                                        manufacturers and their networks,                        a mechanism has been put in place
                                                        RCI Banque implemented a policy                          whereby leasing with buy-back
                                                        aimed at decreasing inventories,                         agreements can be used as collateral
                                                        which helped dealers to recover                          via a Securitization Fund.
                                                        their margins by limiting the weight
                                                        of inventories on their cash-flows                       RCI Banque was granted authorization
                                                        and helped RCI Banque to free up                         by the Commission bancaire (French
                                                        additional sources of funds for                          Banking Commission) to use the
                                                        Customer financing.                                      advanced internal rating approach
                                                                                                                 to assess its credit risks as from
                                                        In a volatile and uncertain financial                    1 January 2008, under the so-called
                                                        context, the group’s conservative
                                                                                                                 “Basel II” capital requirements
                                                        financial policy in recent years has
                                                                                                                 regulations. The scope of this
                                                        proved especially justified.
                                                                                                                 authorization covers all of the
                                                        This policy protects the gross margin
                                                                                                                 RCI Banque group’s operations
                                                        of each entity while at the same time
                                                        securing the refinancing for its                         (Retail, Corporate and Dealer networks)
                                                        business activities.                                     in four countries (France, Germany,
                                                        With €3.6 billion in resources with                      Italy and Spain), encompassing just
                                                        a term of one year or more borrowed                      over 70% of the group’s credit risk.
                                                        in 2008, RCI Banque maintained                           In 2009, it will be extended to include
                                                        a positive static liquidity position and                 the United Kingdom.
                                                        covered the financing requirements
                                                        resulting from its business activity.
                                                        The liquidity reserve grew to €4 billion
                                                        (€3.1 billion at 31 December 2007).




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 05 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


                                                                                                                                                                                                                                                                                                                                           R E S U LT S 2 0 0 8
                                                                                                                                                                                                                                                                                                                                           In a shifting environment                               Despite the rise in pre-tax income,                      Results
                                                                                                                                                                                                                                                                                                                                                                                                   consolidated net income (group                           in millions of euros
                                                                                                                                                                                                                                                                                                                                           in 2008, RCI Banque                                     share) fell slightly to €314 million
                                                                                                                                                                                                                                                                                                                                           confirmed the soundness                                 in 2008 compared with €316 million                         17.50%
                                                                                                                                                                                                                                                                                                                                                                                                   in 2007, due to the effective tax rate                                      15.50%       15.10%         15.07%       14.53%
                                                                                                                                                                                                                                                                                                                                           of its business model                                   returning to its normal level. As a
                                                                                                                                                                                                                                                                                                                                           and continued its role of                               reminder, the year 2007 benefited




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           491




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       482
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           460
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              457
                                                                                                                                                                                                                                                                                                                                                                                                   from exceptional Italian tax credits.




                                                                                                                                                                                                                                                                                                                                                                                                                                                             442
                                                                                                                                                                                                                                                                                                                                           supporting manufacturers’
                                                                                                                                                                                                                                                                                                                                           sales and the Dealer




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 316


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               314
                                                                                                                                                                                                                                                                                                                                                                                                   At the end of December 2008,




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     311


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     305
                                                                                                                                                                                                                                                                                                                                           network.                                                RCI Banque group net sale financing




                                                                                                                                                                                                                                                                                                                                                                                                                                                                       266
                                                                                                                                                                                                                                                                                                                                                                                                   outstandings stood at €20.7 billion,
                                                                                                                                                                                                                                                                                                                                           It maintained its income                                compared with €23.2 billion at the
                                                                                                                                                                                                                                                                                                                                           at a level in line with                                 end of December 2007 (-10.8%).
                                                                                                                                                                                                                                                                                                                                                                                                   The fall in loan outstandings was




                                                                                                                                                                                                                                                                                                                                                                                                                                                              04


                                                                                                                                                                                                                                                                                                                                                                                                                                                                               05


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             06


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             07


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         08
                                                                                                                                                                                                                                                                                                                                           previous years, kept




                                                                                                                                                                                                                                                                                                                                                                                                                                                            20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                             20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       20
                                                                                                                                                                                                                                                                                                                                                                                                   mainly due to a decrease in new
                                                                                                                                                                                                                                                                                                                                           its level of ROE and                                    vehicle inventories held by dealerships,                        Pre-tax income
                                                                                                                                                                                                                                                                                                                                                                                                   and for retail customers, to an                                 After-tax income
                                                                                                                                                                                                                                                                                                                                           consolidated its liquidity                              unfavorable exchange rate impact                                ROE (excluding non-recurring items)
                                                                                                                                                                                                                                                                                                                                           reserve.                                                of -€718 million (Great Britain and
                                                                                                                                                                                                                                                                                                                                                                                                   South Korea).                                            ............................

                                                                                                                                                                                                                                                                                                                                           The RCI Banque group’s consolidated                     The RCI Banque group’s shareholder                       Average performing loans
                                                                                                                                                                                                                                                                                                                                           pre-tax income for 2008 came                            equity came to €2,188 million                            outstandings & overhead cost ratio
                                                                                                                                                                                                                                                                                                                                           to €482 million, up 4.8% compared                       compared with €2,430 million at                          in millions of euros
                                                                                                                                                                                                                                                                                                                                           with 2007.                                              31 December 2007. This change is
                                                                                                                                                                                                                                                                                                                                                                                                                                                              1.76%                         1.68%          1.78%
                                                                                                                                                                                                                                                                                                                                           • The 1% increase in net banking                        mainly due to:                                                              1.63%                                    1.57%
                                                                                                                                                                                                                                                                                                                                             income in 2008 was due to                             • positive net income of €325 million,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            23,136
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                22,887




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             22,865


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         22,701
                                                                                                                                                                                                                                                                                                                                             near-stability in average performing
                                                                                                                                                                                                                                                                                                                                                                                                                                                               21,710




                                                                                                                                                                                                                                                                                                                                             loan outstandings, the financial                      • payment of the dividend for the
                                                                                                                                                                                                                                                                                                                                             margin and distribution costs,                          2007 financial year (-€302 million),
                                                                                                                                                                                                                                                                                                                                             combined with an improvement                          • the negative impact (-€126 million)
                                                                                                                                                                                                                                                                                                                                             in the margin on services (0.91%                        of the revaluation of hedging
                                                                                                                                                                                                                                                                                                                                             of average performing loan                              interest-rate swaps in a context
                                                                                                                                                                                                                                                                                                                                             outstandings at year-end 2008                           of sharply falling interest rates
                                                                                                                                                                                                                                                                                                                                                                                                                                                              04


                                                                                                                                                                                                                                                                                                                                                                                                                                                                               05


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             06


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             07


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         08
                                                                                                                                                                                                                                                                                                                                             compared to 0.81% at year-end                           and changes in exchange rates
                                                                                                                                                                                                                                                                                                                                                                                                                                                            20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                             20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       20

                                                                                                                                                                                                                                                                                                                                             2007).                                                  (-€148 million) impacting on
                                                                                                                                                                                                                                                                                                                                                                                                     shareholder interests in subsidiaries                         Average performing loans outstanding
                                                                                                                                                                                                                                                                                                                                           • The total cost of risk (including                                                                                     Overhead cost ratio
                                                                                                                                                                                                                                                                                                                                             country risk) rose from 0.68% of                        based outside the euro zone.
                                                                                                                                                                                                                                                                                                                                             average performing loan                                                                                        ............................
                                                                                                                                                                                                                                                                                                                                             outstandings in 2007 to 0.87%
                                                                                                                                                                                                                                                                                                                                             (0.91% excluding country risk)
                                                                                                                                                                                                                                                                                                                                             in 2008, due to the negative impact
                                                                                                                                                                                                                                                                                                                                                                                                   Profitability                                            Prudential capital
                                                                                                                                                                                                                                                                                                                                                                                                                                                            in millions of euros
                                                                                                                                                                                                                                                                                                                                             of Spain. The cost of risk in other                   As at 31 December 2008, the                                                                                          10.81%
                                                                                                                                                                                                                                                                                                                                             countries remained stable overall.                    RCI Banque group’s solvency ratio                          9.53%            9.21%        9.50%          9.16%
                                                                                                                                                                                                                                                                                                                                                                                                   stood at 10.8% (of which Core Tier 1                                                                                 9.48%
                                                                                                                                                                                                                                                                                                                                           • The 13% improvement in general                                                                                                    8.12%        8.39%          8.06%
                                                                                                                                                                                                                                                                                                                                                                                                   at 9.5%)* compared to 9.2 %                                7.99%
                                                                                                                                                                                                                                                                                                                                             operating costs compared with
                                                                                                                                                                                                                                                                                                                                             2007, was due to ongoing efforts                      (of which Core Tier 1 at 8.1%) at
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             2,305
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                2,250




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             2,240
                                                                                                                                                                                                                                                                                                                                                                                                                                                               2,222




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             2,148




                                                                                                                                                                                                                                                                                                                                             to optimize the group’s structures.                   the end of December 2007, this latter
                                                                                                                                                                                                                                                                                                                                             Excluding non-recurring costs,                        having been calculated under Basel I.
                                                                                                                                                                                                                                                                                                                                             general operating costs fell by                       Excluding non-recurring items,
                                                                                                                                                                                                                                                                                                                                             €10 million to 1.66% of average                       ROE was 14.5% in 2008, slightly down
                                                                                                                                                                                                                                                                                                                                             performing loan outstandings                          from 2007 (15.1%).
                                                                                                                                                                                                                                                                                                                                             (1.63% in 2007).
                                                                                                                                                                                                                                                                                                                                                                                                                                                              04


                                                                                                                                                                                                                                                                                                                                                                                                                                                                               05


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             06


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             07


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         08




                                                                                                                                                                                                                                                                                                                                                                                                   * As from 01/01/2008, Basel II methodology
                                                                                                                                                                                                                                                                                                                                                                                                                                                            20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                             20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           20


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       20




                                                                                                                                                                                                                                                                                                                                                                                                   has been used to calculate the solvency ratio.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Equity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Solvency ratio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Core Tier 1




                                                                                                                                                                                                                                                                                                                                         - 06 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                 OUTLOOK
                                                                                                                 In line with its role of
                                                                                                                 supporting Renault Group
                                                                                                                 and Nissan sales in
                                                                                                                 Europe, and by holding
                                                                                                                 firm to its policy of
                                                                                                                 integration with car
                                                                                                                 manufacturers as well
                                                                                                                 as to its financial
                                                                                                                 strategy, it is expected
                                                                                                                 that RCI Banque will
                                                                                                                 maintain its business
                                                                                                                 activity in Western
                                                                                                                 Europe and continue its
                                                                                                                 international expansion.

                                                                                                                 Working in conjunction with
                                                                                                                 manufacturers and their networks,
                                                                                                                 RCI Banque has implemented a policy
                                                                                                                 aimed at decreasing inventories,
                                                                                                                 which has helped dealers to recover
                                                                                                                 their margins by limiting the weight
                                                                                                                 of inventories on their cash-flows
                                                                                                                 and helped RCI Banque to free up
                                                                                                                 additional sources of funds for
                                                                                                                 Customer financing.

                                                                                                                 It is expected that the contribution
                                                                                                                 made by RCI Banque subsidiaries
                                                                                                                 outside G10 Europe will account for
                                                                                                                 a growing proportion of the group’s
                                                                                                                 business.
                                                                                                                 The operational launch of operations
                                                                                                                 in Turkey completes the group’s
                                                                                                                 international base.

                                                                                                                 Continuing steps to improve the
                                                                                                                 group’s competitive advantage will
                                                                                                                 include optimizing operating
                                                                                                                 expenses and maintaining control
                                                                                                                 over the cost of risk, the level of
                                                                                                                 which is expected to remain stable
                                                                                                                 in relation to the second half-year
                                                                                                                 2008. The group’s stringent and
                                                                                                                 proactive underwriting policy will
                                                                                                                 be maintained and tweaked, while
                                                                                                                 supervision procedures have been
                                                                                                                 reinforced. Action to continuously
                                                                                                                 optimize collection is being taken,
                                                                                                                 against the backdrop of worsening
                                                                                                                 macroeconomic conditions.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 07 -
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




- 08 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A CUSTOMER-ORIENTED
O R G A N I Z AT I O N
                                                        In 2008, RCI Banque continued
                                                        to offer products for customers
                                                        in the Retail segment based
                                                        on the “One Stop Shopping” strategy,
                                                        by which customers make the whole
                                                        of their purchase (car plus financing
                                                        plus services) in one go.

                                                        2008 also saw the reinforcement
                                                        of package offers and the launch
                                                        of innovative products such as
                                                        the payment card.

                                                        With respect to customers in the
                                                        Corporate segment, RCI Banque works
                                                        with the Alliance’s brands, offering
                                                        loans, leasing and long-term rentals,
                                                        backed up by numerous related
                                                        services such as maintenance
                                                        and courtesy vehicles, etc.

                                                        The long-term rental business, which
                                                        in some countries is the leading
                                                        method of Corporate financing, is
                                                        handled by joint Renault-RCI Banque
As the captive finance subsidiary for                   teams, enabling RCI Banque to assert
the Alliance’s brands (Renault, Renault                 its support for the network in its
Samsung Motors, Dacia, Nissan and                       responses to customers’ needs.
Infiniti), RCI Banque is tasked with
supporting growth in their sales by                     With a 32.3% penetration rate on
offering a comprehensive range of                       sales of new Renault, Dacia and
financing products and services to                      Nissan vehicles in Europe, RCI Banque
its three customer segments: Retail                     provides the Alliance’s brands with
customers, Corporate customers                          vital leverage when it comes to
and Dealers. Customer expectations,                     penetrating markets and developing
needs and demands differ from                           customer loyalty.
one segment to another, and each
requires specific marketing, sales
and management approaches.
                                                                                                        SERVICES
To address this complexity more
                                                           CORPORATE DIVISIONS




effectively, RCI Banque’s teams                                                      MARKETING               SALES                    CUSTOMER SEGMENT
work closely together with the car
manufacturers on projects aimed
at improving the Alliance’s business
performance.                                                                      Retail offerings        France Sales                         Retail
                                                                                                            Division
                                                                                                            Europe
                                                                                                            Division
                                                                                 Corporate offerings                                         Corporate
                                                                                                       Euromed-Asia-Africa
                                                                                                            Division
                                                                                                            Americas
                                                                                  Dealer offerings          Division                          Dealers




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 09 -
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                               -67                                                                                                                 20
                                                                                                                                                                                                                                                                                                                                                                                     04
                                                                                                                                                                                                                                                                                     20                                                                                                           4,241
                                                                                                                                                                                                                                                                                                                                                                                                                     12,239




                                                                                                                                                                                                                                                                           -28         04




                                                                                                                                                                                                                               Retail
                                                                                                                                                                                                                                                                                                                                                                       Retail
                                                                                                                                                                                                                                                  -110                                                                                                                             20
                                                                                                                                                                                                                                                                                                                                                                                     05




                                                                                                                                                                                                                                                                                                                       Cost of risk
                                                                                                                                                                                                                                                                                     20
                                                                                                                                                                                                                                                                                                                                                                                          5,004
                                                                                                                                                                                                                                                                                                                                                                                                                      12,573




                                                                                                                                                                                                                                                                      -42              05
                                                                                                                                                                                                                                                                                                                                                                                                                                                      outstanding
                                                                                                                                                                                                                                                                                                                                                                                                                               in millions of euros




                                                                                                                                                                                                                                                                                                in millions of euros
                                                                                                                                                                                                                                                         -83                                                                                                                       20




                                                                                                                                                                                                                               Corporate
                                                                                                                                                                                                                                                                                     20                                                                                              06
                                                                                                                                                                                                                                                                                                                                                                                          5,158
                                                                                                                                                                                                                                                                                                                                                                                                                      12,566




                                                                                                                                                                                                                                                                         -35           06
                                                                                                                                                                                                                                                                                                                                                                       Corporate
                                                                                                                                                                                                                                                     -94                                                                                                                           20
                                                                                                                                                                                                                                                                                                                                                                                     07
                                                                                                                                                                                                                                                                                     20
                                                                                                                                                                                                                                                                                                                                                                                          5,063
                                                                                                                                                                                                                                                                                                                                                                                                                     12,326
                                                                                                                                                                                                                                                                                                                                                                                                                                                      Average performing loans




                                                                                                                                                                                                                                                                          -31          07

                                                                                                                                                                                                                                           -134                                                                                                                                    20
                                                                                                                                                                                                                                                                                                                                                                                     08
                                                                                                                                                                                                                                                                                     20




- 10 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                                                                                                    4,935




                                                                                                                                                                                                                                                                        -39
                                                                                                                                                                                                                                                                                                                                                                                                            11,820




                                                                                                                                                                                                                                                                                       08
                                                                                                                                                                                                                                                                                                                                      ..............................
                                                                                                                                                                           RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CUSTOMER FINANCING
The Customer financing                                            Private individuals                               Breakdown of RCI Banque’s
business accounted for                                                                                                 Retail product range
                                                                  In 2008, lending to private                               worldwide
74% of average performing                                         individuals accounted for 52% of                         RCI Banque product mix
loan outstandings,                                                RCI Banque’s average performing loan                         at 31/12/2008
                                                                  outstandings, or €11.82 billion.
or €16.55 billion.
                                                                  Over the year, RCI Banque wrote                                                         29.7%
                                                                  318,509 loans to finance Retail
                                                                  consumer purchases of new Alliance
                                                                  (Renault, Renault Samsung Motors,
                                                                  Dacia and Nissan) vehicles.
                                                                  Financing for used vehicles generated            70.2%
                                                                  157,092 new finance contracts.
Net banking income - Retail sector
                                                                  RCI Banque contributes
Results and operating costs
                                                                  comprehensively to the Alliance’s                              Conventional products
in millions of euros
                                                                  marketing strategy. Its differentiated                           Loyalty-building
                                                                  financing offering provides leverage
 1.87%                      1.79%       1.84%             1.78%
               1.66%                                              that helps the Alliance to penetrate
                                                                  new markets and develop customer
                                                                  loyalty.
                           606
               599




                                        579
 569




                                                      545




                                                                  Product offerings are tailored to
                                                                  local conditions in each country
                                  301
                     269
       268




                                              255




                                                                  and encompass:
                                                            198




                                                                  • conventional financing products,
  04


                05


                             06


                                          07


                                                       08




                                                                  • “loyalty-building” financing
20


              20


                           20


                                        20


                                                     20




                                                                     products that meet the needs of
       Net banking income                                            customers interested in budgeting
       Pre-tax income                                                for all-inclusive costs while
       Overhead cost ratio                                           retaining freedom of choice at
                                                                     the end of their contract.


                                                                  New tools such as the payment card
             Breakdown of Customer                                are also being introduced to boost
                 financing 2008                                   the “customer relationship” approach.
                                                                  Payment cards are a means of
                                                                  conveying the car manufacturer’s
                                                    29%           image, maintaining a constant link
                                                                  with the customer and developing
                                                                  his loyalty to the manufacturer’s
                                                                  networks for his after-sales
                                                                  operations.
   71%
                                                                  Currently distributed in three countries
                                                                  (France, Italy and Romania),
                                                                  the payment card is an extension of
                  Loans to companies                              RCI Banque’s product and services
               Loans to private individuals                       strategy.




 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 11 -
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




- 12 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Companies                                              With respect to international
                                                       development, early in 2008,
                                                       RCI Banque launched the Renault
With €4.9 billion, the Corporate
                                                       Finance Nordics subsidiary, which
segment accounts for 21.7% of
                                                       covers Sweden, Denmark, Norway
average performing loans
                                                       and Finland. Nissan products also
outstanding.
                                                       became available in Belgium from
                                                       spring 2008 onwards, and three
At year-end 2008, there were
                                                       countries (Switzerland, Spain and
391,679 vehicles on rental contracts
                                                       Italy) saw the arrival of special
and 64,711 vehicles under fleet
                                                       financing products for the Infiniti
management contracts. 200,970
                                                       brand dedicated to the Retail sector.
new contracts were signed during
the year.

From one country to another, small                      Net banking income - Corporate sector
and medium-sized companies, which                       Results and operating costs
drive growth in both volume and                         in millions of euros
profitability terms, use the different
financing packages - credit, leasing,                    2.27%        1.98%                   2.22%
                                                                                  1.95%
long-term rental and fleet                                                                                   1.52%
management packages - offered to

                                                                                                           263
                                                                                             270
Corporate customers by RCI Banque.
                                                                                 246
                                                                      228
                                                         223




Large companies mainly focus on
                                                                                                                 148
                                                                                                   124



long-term rentals, in which they find
                                                                                       110
                                                               83


                                                                            82




the extra services and tools they
need to optimize the management
                                                          04


                                                                       05


                                                                                   06


                                                                                               07


                                                                                                           08




of their vehicle fleets.
                                                        20


                                                                     20


                                                                                 20


                                                                                             20


                                                                                                         20




RCI Banque also gives assistance to                            Net banking income
car manufacturer networks, providing                           Pre-tax income
them with training, point of sale                              Overhead cost ratio
pricing tools and web-based
simulation tools that make it easier
to renew contact with customers.
                                                                                 Breakdown of RCI Banque’s Corporate
                                                                                       product range worldwide
                                                                    Local fleet product mix                            Corporate Account product mix
                                                                        at 31/12/2008                                         at 31/12/2008
                                                                                                                                                    23.5%
                                                                                                   19.6%
                                                                                                                                                          0.1%




                                                        45.3%
                                                                                                         35.1%
                                                                                                                        76.3%

                                                                            Credit     Leasing                                    Credit     Leasing
                                                                             Long-term rentals                                     Long-term rentals




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 13 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


                                                                                                                                                                                                                                                                                                                                           DEALER FINANCING
                                                                                                                                                                                                                                                                                                                                           New international                                                 Growth in average performing loans outstandings by country
                                                                                                                                                                                                                                                                                                                                           operations                                                                                               in 2007
                                                                                                                                                                                                                                                                                                                                                                                                                                        Others 2%* Poland 2%
                                                                                                                                                                                                                                                                                                                                           • Launch of the Dealer financing                                              United Kingdom 8%                   Germany 17%
                                                                                                                                                                                                                                                                                                                                             business in Denmark, Finland,                                                  Portugal 2%                                                            (*) Others:
                                                                                                                                                                                                                                                                                                                                             Norway and Sweden from January                                                                    Switzerland       Austria 2%                        Argentina,
                                                                                                                                                                                                                                                                                                                                                                                                                       Netherlands 5%                              Belgium 2%
                                                                                                                                                                                                                                                                                                                                             2008, operated out of a single                                                                        1%                                              Hungary,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Brazil 2%                       Czech Republic,
                                                                                                                                                                                                                                                                                                                                             platform at our Stockholm-based                                                Italy 7%                                                               Romania,
                                                                                                                                                                                                                                                                                                                                             branch.                                                                                                                          Spain 13%            Slovakia,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Slovenia.
                                                                                                                                                                                                                                                                                                                                           • Launch of Dealer financing in
                                                                                                                                                                                                                                                                                                                                             the three Baltic countries, Estonia,
                                                                                                                                                                                                                                                                                                                                                                                                                               France 37%
                                                                                                                                                                                                                                                                                                                                             Latvia and Lithuania, in February
                                                                                                                                                                                                                                                                                                                                             2008, operated out of our Polish
                                                                                                                                                                                                                                                                                                                                             subsidiary.                                                                                            in 2008
                                                                                                                                                                                                                                                                                                                                           • As a result of ongoing studies,                                                           Others 3%* Poland 3%
                                                                                                                                                                                                                                                                                                                                             in 2009, we will be able to launch                                         United Kingdom 7%                   Germany 16%                            (*) Others:
                                                                                                                                                                                                                                                                                                                                             Dealer financing operations                                                    Portugal 2%                                                            Argentina,
                                                                                                                                                                                                                                                                                                                                             in south Korea, initially for                                                                     Switzerland      Austria 2%
                                                                                                                                                                                                                                                                                                                                                                                                                       Netherlands 5%                            Belgium 2%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Hungary,
                                                                                                                                                                                                                                                                                                                                             the Nissan and Infiniti brands.                                                                       1%                                              Czech Republic,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Brazil 3%                        Romania,
                                                                                                                                                                                                                                                                                                                                                                                                                            Italy 7%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Slovakia,
                                                                                                                                                                                                                                                                                                                                           2009 will mark a pause in our                                                                                                                           Slovenia,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Spain 12%
                                                                                                                                                                                                                                                                                                                                           investments and the redeployment                                                                                                                        Nordic countries,
                                                                                                                                                                                                                                                                                                                                           of our projects over time, given                                                                                                                        Morocco.

                                                                                                                                                                                                                                                                                                                                           the lack of clear insight into                                                      France 37%
                                                                                                                                                                                                                                                                                                                                           the prospects of certain countries
                                                                                                                                                                                                                                                                                                                                           following the impact of the financial
                                                                                                                                                                                                                                                                                                                                           crisis.
                                                                                                                                                                                                                                                                                                                                                                                                    Strengthening of business support and risk
                                                                                                                                                                                                                                                                                                                                                                                                    monitoring systems:
                                                                                                                                                                                                                                                                                                                                                                                                    • The financial crisis and dwindling                     • The decision to adopt a single
                                                                                                                                                                                                                                                                                                                                                                                                      car markets reinforced RCI Banque’s                      IT solution across all subsidiaries
                                                                                                                                                                                                                                                                                                                                                                                                      policy of supporting the Alliance’s                      is enabling the increasingly
                                                                                                                                                                                                                                                                                                                                                                                                      brands through a process of                              end-to-end standardization
                                                                                                                                                                                                                                                                                                                                                                                                      financial consolidation of their                         of processes and the rapid setup
                                                                                                                                                                                                                                                                                                                                                                                                      Dealer networks.                                         of warning tools and tools for
                                                                                                                                                                                                                                                                                                                                                                                                                                                               controlling outstandings and risks.
                                                                                                                                                                                                                                                                                                                                                                                                    • RCI Banque confirmed its policy of
                                                                                                                                                                                                                                                                                                                                                                                                      supporting car manufacturers and
                                                                                                                                                                                                                                                                                                                                                                                                                                                             • The risk monitoring and
                                                                                                                                                                                                                                                                                                                                                                                                      their Dealer networks by providing
                                                                                                                                                                                                                                                                                                                                                                                                                                                               management processes have been
                                                                                                                                                                                                                                                                                                                                                                                                      appropriate financing solutions
                                                                                                                                                                                                                                                                                                                                                                                                                                                               reinforced both centrally and in
                                                                                                                                                                                                                                                                                                                                                                                                      in keeping with their needs:
                                                                                                                                                                                                                                                                                                                                                                                                                                                               each of our subsidiaries.
                                                                                                                                                                                                                                                                                                                                                                                                      • Average performing loan                                The mechanisms in place allow
                                                                                                                                                                                                                                                                                                                                                                                                        outstandings increased by 9%,                          greater reactivity, helping us
                                                                                                                                                                                                                                                                                                                                                                                                        to €5,946 thousand, although                           to anticipate and prevent risks
                                                                                                                                                                                                                                                                                                                                                                                                        the last quarter was marked by                         across the Dealer networks.
                                                                                                                                                                                                                                                                                                                                           A new brand is added                                         a sharp decline in our outstandings,                   The cost of risk on the Dealer
                                                                                                                                                                                                                                                                                                                                           to the RCI Banque range                                    • Outstandings at end December 2008                      business fell in 2008 (to 0.45%
                                                                                                                                                                                                                                                                                                                                                                                                        stood at €4,749 thousand, the result                   of outstandings), even though
                                                                                                                                                                                                                                                                                                                                           Financing for Infiniti networks is                           of a deliberate strategy shared                        we have adjusted upwards our
                                                                                                                                                                                                                                                                                                                                           launched, and the brand is rolled out                        with car manufacturers to reduce                       provisions for countries the most
                                                                                                                                                                                                                                                                                                                                           across Europe:                                               Dealer network inventories.                            hard hit by the market downturn.
                                                                                                                                                                                                                                                                                                                                                                                                        Managing inventories and ensuring
                                                                                                                                                                                                                                                                                                                                           • in 2008: France, Spain, Italy,
                                                                                                                                                                                                                                                                                                                                                                                                        they are appropriate to market
                                                                                                                                                                                                                                                                                                                                             Poland, Netherlands, Switzerland,
                                                                                                                                                                                                                                                                                                                                                                                                        conditions will remain one of
                                                                                                                                                                                                                                                                                                                                           • and in 2009: Germany and                                   RCI Banque’s priorities in 2009.
                                                                                                                                                                                                                                                                                                                                             the United Kingdom.




                                                                                                                                                                                                                                                                                                                                         - 14 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average performing loans
outstanding
in millions of euros




                                 5,476       5,946
 5,230     5,310        5,412
  04


           05


                         06


                                  07


                                              08
20


         20


                       20


                                20


                                            20




.............................

Net banking income
Result and overhead cost ratio
in millions of euros

 0.57%      0.58%       0.64%    0.59%       0.65%
                                            165
                                134
            129
   127




                         125




                                                   99
           90




                                       69
                       68
 71
  04


           05


                      06


                                  07


                                              08
20


         20


                    20


                                20


                                            20




    Net banking income
    Pre-tax income
    Overhead cost ratio

.............................

Cost of risk
in millions of euros
                                    07
    05


              05




                                                08
                          06

                                  20
  20


            20




                                              20
                        20
            -9


                         -23
  -24




                                                  -27
                                      -30




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 15 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


                                                                                                                                                                                                                                                                                                                                                                                                    RCI BANQUE GROUP OPERATIONS
                                                                                                                                                                                                                                                                                                                                                                                                    In line with its role                                    In Western Europe, in an automobile
                                                                                                                                                                                                                                                                                                                                                                                                                                                             market in crisis and down by 8.1%,
                                                                                                                                                                                                                                                                                                                                                                                                    of supporting sales by                                   Renault Group sales fell by 7.2%.
                                                                                                                                                                                                                                                                                                                                                                                                    carmakers, RCI Banque                                    The Group posted a 0.2 point
                                                                                                                                                                                                                                                                                                                                                                                                                                                             increase in its market share,
                                                                                                                                                                                                                                                                                                                                                                                                    maintained its business                                  while at the same time pursuing its
                                                                                                                                                                                                                                                                                                                                                                                                    activity with a                                          strategy to reduce volumes in the
                                                                                                                                                                                                                                                                                                                                                                                                                                                             “short-term rental company” sector.
                                                                                                                                                                                                                                                                                                                                                                                                    penetration rate of                                      In France, where the market fell
                                                                                                                                                                                                                                                                                                                                                                                                    32.1% in Western Europe                                  by 0.6%, the Renault Group posted
                                                                                                                                                                                                                                                                                                                                                                                                    (33% in 2007).                                           a 3.5% rise in its sales of passenger
                                                                                                                                                                                                                                                                                                                                                                                                                                                             cars, thereby increasing its share
                                                                                                                                                                                                                                                                                                                                                                                                                                                             of the market from 23% to 24%.
                                                                                                                                                                                                                                                                                                                                                                                                    On a global market down by 4.8%,                         Renault consolidated its position
                                                                                                                                                                                                                                                                                                                                                                                                    the Renault Group posted a 4.2%                          as the top brand with a market share
                                                                                                                                                                                                                                                                                                                                                                                                    drop in its sales and increased its                      of 23.7% (a 0.1 point increase).
                                                                                                                                                                                                                                                                                                                                                                                                    share of the market to 3.6%.                             The Dacia brand increased its sales
                                                                                                                                                                                                                                                                                                                                                                                                    Its international business continued                     by 33.5% and took a 1.7% share of
                                                                                                                                                                                                                                                                                                                                                                                                    to grow, with a 1.5% rise in its sales                   the market.
                                                                                                                                                                                                                                                                                                                                                                                                    outside Europe to 873,798 vehicles
                                                                                                                                                                                                                                                                                                                                                                                                    sold, almost 37% of its total sales.



                                                                                                                                                                                                                                                                                                                                                                                                                                                                         MARKET               MARKET                RCI BANQUE
                                                                                                                                                                                                                                                                                                                                                                                                       PC + LUV* MARKET                                                  SHARE                SHARE            PENETRATION
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       RENAULT GROUP           NISSAN             RATE
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          BRANDS

                                                                                                                                                                                                                                                                                                                                                                                                       Western Europe                        2008****                       9.3%                2.1%                  32.1%
                                                                                                                                                                                                                                                                                                                                                                                                                                             2007***                        9.5%                  2%                   33%
                                                                                                                                                                                                                                                                                                                                                                                                       of which Germany                      2008                             5%                1.5%                  37.2%
                                                                                                                                                                                                                                                                                                                                                                                                                                             2007                           4.7%                1.4%                  38.6%
                                                                                                                                                                                                                                                                                                                                                                                                       of which Spain                        2008                         10.2%                 3.4%                  39.8%
                                                                                                                                                                                                                                                                                                                                                                                                                                             2007                         10.5%                 2.9%                  46.2%
                                                                                                                                                                                                                                                                                                                                                                                                       of which France                       2008                         25.4%                 1.9%                  32.5%
                                                                                                                                                                                                                                                                                                                                                                                                                                             2007                         24.8%                 1.7%                   32%
                                                                                                                                                                                                                                                                                                                                                                                                       of which United Kingdom               2008                           4.4%                3.1%                  27.2%
                                                                                                                                                                                                                                                                                                                                                                                                                                             2007                           5.4%                  3%                  22.7%
                                                                                                                                                                                                                                                                                                                                                                                                       of which Italy                        2008                           4.9%                2.4%                  31.3%
                                                                                                                                                                                                                                                                                                                                                                                                                                             2007                           5.3%                1.8%                  35.3%
                                                                                                                                                                                                                                                                                                                                                                                                       Brazil                                2008                           4.3%                0.7%                  22.4%
                                                                                                                                                                                                                                                                                                                                                                                                                                             2007                           3.1%                0.5%                  29.4%
                                                                                                                                                                                                                                                                                                                                                                                                       South Korea                           2008                           8.5%                0.3%                  36.8%
                                                                                                                                                                                                                                                                                                                                                                                                                                             2007                           9.3%                0.2%                  26.6%
                                                                                                                                                                                                                                                                                                                                                                                                       Rest of world**                       2008                         14.8%                 1.2%                   28%
                                                                                                                                                                                                                                                                                                                                                                                                                                             2007                         15.3%                 1.1%                  29.4%

                                                                                                                                                                                                                                                                                                                                                                                                       TOTAL GROUPE                          2008                           9.1%                1.7%                  31.2%
                                                                                                                                                                                                                                                                                                                                                                                                       RCI BANQUE                            2007                           9.2%                1.6%                  32.1%

                                                                                                                                                                                                                                                                                                                                                                                                    * Data are for passenger cars (PC) and light utility vehicles (LUV).
                                                                                                                                                                                                                                                                                                                                                                                                    ** Rest of the world: Poland, Czech Republic, Slovakia, Slovenia, Hungary, Romania, Argentina and Morocco.
                                                                                                                                                                                                                                                                                                                                                                                                    *** 2007: Consolidation of Slovenia.
                                                                                                                                                                                                                                                                                                                                                                                                    **** 2008: Consolidation of Nordic countries (Western Europe) and of Morocco (rest of the world).




                                                                                                                                                                                                                                                                                                                                         - 16 -ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                     RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
       At year-end 2008, the RCI Banque                           Dealer outstandings were down
       group had written 858,024 new vehicle                      by €1 billion for the same period,
       contracts, 19% of which outside                            indicating the stringent stock
       Western Europe, and generated                              management policy implemented
       €8.9 billion in new financings (down                       by carmakers and dealers during
       by 4.7% compared with year-end                             this crisis period.
       2007). RCI Banque’s penetration rate
       on new Renault Group and Nissan                            The fall in total outstandings
       vehicle registrations held steady at                       recorded over Western Europe was
       32.1% in Western Europe (compared                          partially offset by growth in the
       with 33% for the same period                               business of subsidiaries outside
       the previous year).                                        Europe.

       The downturn in the automobile
       market had an impact on the level
       of new financings, the consequence
       of which was a €1.5 billion fall in
       outstandings on customer financings
       at end December 2008 compared
       with 31 December 2007.




NUMBER OF             NEW              NET LOAN            OF WHICH NET LOAN               AVERAGE                   NET              PRE-TAX
   NEW             FINANCINGS        OUTSTANDINGS             OUTSTANDINGS             PERFORMING LOAN            BANKING             INCOME
 VEHICLE          Excluding cards     AT YEAR END               DEALERS                 OUTSTANDINGS              INCOME                (€M)
CONTRACTS          and PLs (€M)          (€M)               AT YEAR END (€M)                 (€M)                   (€M)

 693,703               7,728              18,854                     4,088                   20,857                  825                 344
 747,115               8,418              21,623                     5,127                   21,505                  878                 400
 122,515               1,409                4,024                      866                     4,299                 170                   99
 125,583               1,455                4,442                      869                     4,576                 170                   89
  82,823               1,012                2,848                      499                     3,421                 117                 -16
 132,169               1,657                3,738                      690                     3,694                 134                  62
 283,315               3,384                7,597                    1,602                     7,949                 344                 190
 279,438               3,283                8,009                    2,135                     7,701                 341                 164
  67,649                 730                1,314                      172                     1,810                  63                   16
  74,120                 734                2,062                      418                     1,988                  87                   25
  56,702                 599                1,508                      361                     1,688                  69                   34
  71,338                 735                1,757                      365                     1,876                  77                   32
  31,216                 282                  483                      161                       543                  49                   32
  28,081                 278                  533                      176                       448                  34                   15
  39,567                 463                  457                         0                      401                  20                   10
  31,916                 387                  334                         0                      247                  15                    5
  93,538                 423                  869                      231                       901                  71                   39
  91,222                 355                  753                      241                       665                  54                   28

 858,024               8,896              20,663                     4,480                   22,701               1,040                  482
 898,334               9,438              23,243                     5,544                   22,865               1,030                  460




           . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 17 -
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




- 18 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FINANCIAL POLICY
In a volatile and uncertain                            In addition to its positive static                        Temporary excess of cash is invested
                                                       liquidity reserve, at the end of 2008                     in very short-term bank deposits
environment, the group’s                               the group also had €6.5 billion                           with banks having a high credit
conservative financial                                 in available liquidity consisting of                      rating, identified and approved
                                                       unutilized confirmed lines of credit                      beforehand by a specific committee.
policy carried out for                                 not under covenants (€4,492 million,
several years has been                                 down by €869 million compared with
                                                       31 December 2007 due to €753 million
especially justified.                                  in partial utilization), €1,514 million
This policy protects                                   (discounted) in ECB eligible collateral
the gross margin of each                               and a cash surplus of €485 million.

entity while at the same
time securing the                                       RCI Banque group liquidity position
                                                        in millions of euros
refinancing for its
business activities, is                                 25,000
defined and implemented
at a consolidated level                                 20,000

by RCI Banque and applies
                                                        15,000
to all sales financing
subsidiaries in the group.                              10,000


Resources with a term                                    5,000
of one year and above
                                                                       08

                                                                                      09

                                                                            m 09

                                                                             ap 9

                                                                              m 9

                                                                              ju 9
                                                                                      09

                                                                             au 9

                                                                             se 9

                                                                                        9
                                                                                      09

                                                                              de 9
                                                                                      09
                                                                                      0

                                                                                      0

                                                                                      0



                                                                                      0

                                                                                      0
                                                                                    .0



                                                                                      0
                                                                    c.

                                                                           n.

                                                                                  b.

                                                                                 ch

                                                                                 ril

                                                                                 ay

                                                                                ne

                                                                                  ly

                                                                                  g.



                                                                                   t.

                                                                                  v.

                                                                                  c.
                                                                                pt
                                                                               oc
                                                                  de




                                                                              no
                                                                               ju
                                                                               fe
                                                                         ja




borrowed by RCI Banque
                                                                              ar




in 2008 cover the                                                        Balance sheet & off-balance sheet sources of funds
                                                                         Balance sheet sources of funds
financing requirements                                                   Commercial assets
resulting from its
                                                        .............................................................
business activity.
                                                        Static gap(1) at end 2007 & 2008
The prudent financial policy                            in millions of euros
implemented by the RCI Banque
                                                        6,000
group in recent years, consisting
in financing assets by longer dated
                                                        5,000
liabilities and thus maintaining a
positive liquidity gap, was sustained
                                                        4,000
throughout the year. Borrowed
resources with a term of one year
                                                        3,000
and above amounted to €3.6 billion,
covering the year’s maturing debt                       2,000
(€4.7 billion) adjusted by the
reduction in Customer outstandings                      1,000
(€1.5 billion).
The positive static liquidity profile,                        0                                                                                       month
                                                                   1                 10                   20                     30              37
defined for each future monthly
period by the surplus of liabilities in                    at 31/12/2007            at 31/12/2008
relation to assets with the same term,                  (1) Surplus of sources of funds in relation to the applications of funds over a given term.
remained at a similar level to that
recorded in previous years. This means
that new loans are still backed
by funds borrowed several months
previously.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 19 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                                                                           The liquidity reserve was reinforced by an increase in ECB eligible collateral

                                                                                                                                                                                                                                                                                                                                           RCI Banque group liquidity reserve
                                                                                                                                                                                                                                                                                                                                           in millions of euros

                                                                                                                                                                                                                                                                                                                                                    5,352             6,019                6,880              7,205             7,778            6,491          The liquidity reserve, expressed as
                                                                                                                                                                                                                                                                                                                                                                                                                                 592                            being the difference between
                                                                                                                                                                                                                                                                                                                                                                                                               440
                                                                                                                                                                                                                                                                                                                                                                                            715                                                                 available liquidity on the one hand,
                                                                                                                                                                                                                                                                                                                                                                                                              1,387             1,825             485
                                                                                                                                                                                                                                                                                                                                                                        381                 855                                                                 and certificates of deposit and
                                                                                                                                                                                                                                                                                                                                                    350                 670                                                                      1,514          commercial paper outstandings
                                                                                                                                                                                                                                                                                                                                                    344                                                                                                         on the other, thus rose to €4 billion,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                an increase of €911 million compared
                                                                                                                                                                                                                                                                                                                                                                       2,983                                                                     3,988
                                                                                                                                                                                                                                                                                                                                                                                                              3,429                                             with year-end 2007. This increase
                                                                                                                                                                                                                                                                                                                                                                                           3,177                                 3,077                          was primarily due to the securitization
                                                                                                                                                                                                                                                                                                                                                    1,602
                                                                                                                                                                                                                                                                                                                                                                                                                                                                of the leasing portfolio in Germany:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                retained by RCI Banque as ECB eligible
                                                                                                                                                                                                                                                                                                                                                    4,658             4,968                5,310              5,378             5,361            4,492*         collateral for around €600 million,
                                                                                                                                                                                                                                                                                                                                          0                                                                                                                     and to the setting up of a bi-weekly
                                                                                                                                                                                                                                                                                                                                                                                                                                                                registration mechanism for credit
                                                                                                                                                                                                                                                                                                                                                                                                                                                                claims accepted by the Banque de
                                                                                                                                                                                                                                                                                                                                                                                                                                                                France as collateral for monetary policy
                                                                                                                                                                                                                                                                                                                                                                     -3,036
                                                                                                                                                                                                                                                                                                                                                                                                                                                 -2,503
                                                                                                                                                                                                                                                                                                                                                                                                                                                                operations, totaling about €200 million.
                                                                                                                                                                                                                                                                                                                                                -3,750                                    -3,703             -3,776
                                                                                                                                                                                                                                                                                                                                                                                                                                -4,701                          During the year 2008, the group
                                                                                                                                                                                                                                                                                                                                                                                                                                                                launched a three-year, €700 million
                                                                                                                                                                                                                                                                                                                                                                                                                                                                public bond issue and several private
                                                                                                                                                                                                                                                                                                                                                 03




                                                                                                                                                                                                                                                                                                                                                                      04




                                                                                                                                                                                                                                                                                                                                                                                             05




                                                                                                                                                                                                                                                                                                                                                                                                              06




                                                                                                                                                                                                                                                                                                                                                                                                                                                08
                                                                                                                                                                                                                                                                                                                                                                                                                                   07
                                                                                                                                                                                                                                                                                                                                               20




                                                                                                                                                                                                                                                                                                                                                                    20




                                                                                                                                                                                                                                                                                                                                                                                          20




                                                                                                                                                                                                                                                                                                                                                                                                            20




                                                                                                                                                                                                                                                                                                                                                                                                                                             20
                                                                                                                                                                                                                                                                                                                                                                                                                                20




                                                                                                                                                                                                                                                                                                                                                                                                                                                                placements in EMTN and BMTN form,
                                                                                                                                                                                                                                                                                                                                           *Committed credit lines: €5,245m - Drawings: €753m                                                                   for a total of €1,242 million.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                At the same time, new bank borrowings
                                                                                                                                                                                                                                                                                                                                           AVAILABLE LIQUIDITY                                                                                                  with one year and above maturity
                                                                                                                                                                                                                                                                                                                                               Cash and minimum reserves                           Liquidity reserve                                            amounted to €1,364 million.
                                                                                                                                                                                                                                                                                                                                               ECB eligible securities                             CD/CP
                                                                                                                                                                                                                                                                                                                                               Committed credit lines                                                                                           Like all French banks, RCI Banque
                                                                                                                                                                                                                                                                                                                                                                                                                                                                has access to funds allocated
                                                                                                                                                                                                                                                                                                                                                                                                                                                                by the SFEF. In addition to the regular
                                                                                                                                                                                                                                                                                                                                                                                                                                                                proportional allocations made at each
                                                                                                                                                                                                                                                                                                                                                                                                                                                                SFEF issue, RCI Banque has also
                                                                                                                                                                                                                                                                                                                                                                                                                                                                been granted additional allowances
                                                                                                                                                                                                                                                                                                                                                                                                                                                                for a total of €1 billion, of which
                                                                                                                                                                                                                                                                                                                                                                                                                                                                €500 million were allocated in 2008
                                                                                                                                                                                                                                                                                                                                                                                                                                                                (of this sum, €240 million remain, to
                                                                                                                                                                                                                                                                                                                                                                  RCI Banque - Breakdown of liabilities and equity                                              be mobilized in 2009) and €500 million
                                                                                                                                                                                                                                                                                                                                                                                                                                                                were granted in February 2009.
                                                                                                                                                                                                                                                                                                                                                                                                                        503
                                                                                                                                                                                                                                                                                                                                              26%


                                                                                                                                                                                                                                                                                                                                                            30%


                                                                                                                                                                                                                                                                                                                                                                       30%


                                                                                                                                                                                                                                                                                                                                                                                    34%


                                                                                                                                                                                                                                                                                                                                                                                                  31%




                                                                                                                                                                                                                                                                                                                                                                                                             21                            752
                                                                                                                                                                                                                                                                                                                                                                                                                        3,291     511
                                                                                                                                                                                                                                                                                                                                                                                                            2,989                                        678
                                                                                                                                                                                                                                                                                                                                                                                                                                          2,999
                                                                                                                                                                                                                                                                                                                                                                                                                        3,705     2,983
                                                                                                                                                                                                                                                                                                                                                                                                                                                        3,427
                                                                                                                                                                                                                                                                                                                                              74%




                                                                                                                                                                                                                                                                                                                                                                                                            3,046
                                                                                                                                                                                                                                                                                                                                                            70%


                                                                                                                                                                                                                                                                                                                                                                       70%




                                                                                                                                                                                                                                                                                                                                                                                                  69%




                                                                                                                                                                                                                                                                                                                                                                                                                                          4,701
                                                                                                                                                                                                                                                                                                                                                                                    66%




                                                                                                                                                                                                                                                                                                                                                                                                                        2,839     3,776
                                                                                                                                                                                                                                                                                                                                                                                                            2,512                                       2,671
                                                                                                                                                                                                                                                                                                                                                                                                                                  3,307   3,533         3,493


                                                                                                                                                                                                                                                                                                                                                                                                           12,293      12,423
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Long term (bonds, MTN, Banks, Schuldscheine)
                                                                                                                                                                                                                                                                                                                                                                                                                                 10,587   9,814         9,052     ABS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Commercial paper
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Money market & Partners
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Renault Group
                                                                                                                                                                                                                                                                                                                                                                                                             04


                                                                                                                                                                                                                                                                                                                                                                                                                         05


                                                                                                                                                                                                                                                                                                                                                                                                                                   06


                                                                                                                                                                                                                                                                                                                                                                                                                                            07


                                                                                                                                                                                                                                                                                                                                                                                                                                                      08
                                                                                                                                                                                                                                                                                                                                            04


                                                                                                                                                                                                                                                                                                                                                          05


                                                                                                                                                                                                                                                                                                                                                                     06


                                                                                                                                                                                                                                                                                                                                                                                  07


                                                                                                                                                                                                                                                                                                                                                                                              08


                                                                                                                                                                                                                                                                                                                                                                                                           20


                                                                                                                                                                                                                                                                                                                                                                                                                       20


                                                                                                                                                                                                                                                                                                                                                                                                                                 20


                                                                                                                                                                                                                                                                                                                                                                                                                                          20


                                                                                                                                                                                                                                                                                                                                                                                                                                                    20
                                                                                                                                                                                                                                                                                                                                          20


                                                                                                                                                                                                                                                                                                                                                        20


                                                                                                                                                                                                                                                                                                                                                                   20


                                                                                                                                                                                                                                                                                                                                                                                20


                                                                                                                                                                                                                                                                                                                                                                                            20




                                                                                                                                                                                                                                                                                                                                               Long term           Short term



                                                                                                                                                                                                                                                                                                                                         - 20 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                              RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
   • As a matter of group policy,                          • The credit margins observed on                            • In addition to maintaining its
     assets outside Western Europe held                      the markets fluctuated significantly                        central role in refinancing for
     in countries rated less than single-A                   in 2008. In this volatile context,                          subsidiaries in Western Europe,
     (non-transfer risk) are financed                        RCI Banque responded rapidly                                RCI Banque also developed the
     by sources of funds borrowed                            and proactively and on several                              cash management services it offers
     locally in the same currency.                           occasions, revised the costs of                             the group’s companies.
     Part of the Romanian subsidiary’s                       internal liquidity used to price                            Through this strategy, it is able
     financing requirements in euros                         customer operations, thus enabling                          to ensure the availability of
     is provided by the group, which                         it to maintain a margin on new                              the funds each entity needs
     has a Coface insurance against                          lending in line with budgetary                              and to optimize the cost of funds
     currency transfer and convertibility                    targets. Similarly, the pricing of                          in such areas as the back office,
     risk.                                                   loans granted to dealers was                                cash management and accounting
                                                             revised to maintain the profitability                       of transactions, as well as financial
                                                             of the Dealer business.                                     risk management.




                                                                                          Geographical breakdown of the RCI Banque group’s
                           Structure of total debt                                           medium-term borrowing as at 31/12/2008
                             as at 31/12/2008

                                                                                                                              Nordic countries 1%
              Commercial paper             BMTN €635m 3%                                                          Japan 3%        United Kingdom 1%
                 €2,671m 14%                                                                               Italy 8%
                                                           ABS €3,493m 18%
      Renault €678m 4%                                                                                                                          Germany
                                                                                                                                                 & Austria 23%
Schuldschein €720m 4%
         Central Bank
          €1,155m 6%                                                                                                                                Benelux 7%
                                                                                                                                                  Other country 1%
                                                              Bondholders & EMTN
                                                              €5,783m 29%                                                                       Spain 6%
              Money market
              €4,186m 22%                                                                              France 50%




   The RCI Banque group’s programs
   are mainly concentrated on three issuers (RCI, DIAC and Rombo Compania) and represent a total of more than 23,5 billion euros.


     ISSUER                              PROGRAM                MARKET               AMOUNT                    S&P                 MOODY’S               R&I

     RCI Banque                           Euro CP                 euro              €2,000m                    A2**                  P2                   a1
     RCI Banque                          Euro MTN                 euro              €12,000m                BBB (O-)**             A3 (NW)              A (O-)

     RCI Banque                              CD                  French              €4,000m                   A2**                  P2
     RCI Banque                             BMTN                 French              €2,000m                BBB (O-)**             A3 (NW)
     Diac                                    CD                  French              €1,500m                   A2**                  P2
     Diac                                   BMTN                 French              €1,500m                BBB (O-)**             A3 (NW)


     RCI Banque                              CP                 Belgian               €500m                    A2**                   P2
     + Overlease + Renault
     AutoFin (RCI guarantee)

     Rombo Compañia                        Bonds               Argentine             ARS400m                   raA-*
     Financiera S.A.

   *Local ratings
   **Updated on 6 march 2009




    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 21 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


                                                                                                                                                                                                                                                                                                                                                                                                   THE RCI BANQUE GROUP’S HUMAN
                                                                                                                                                                                                                                                                                                                                                                                                   RCI Banque’s strategy is                                 An asset: the group’s
                                                                                                                                                                                                                                                                                                                                                                                                   grounded in the belief                                   appeal
                                                                                                                                                                                                                                                                                                                                                                                                   that the people who make
                                                                                                                                                                                                                                                                                                                                                                                                                                                            The labor market is highly competitive
                                                                                                                                                                                                                                                                                                                                                                                                   up its teams give it                                     and RCI Banque makes every
                                                                                                                                                                                                                                                                                                                                                                                                   a key competitive edge                                   endeavor to enhance its “Employer”
                                                                                                                                                                                                                                                                                                                                                                                                                                                            brand identity in order to attract
                                                                                                                                                                                                                                                                                                                                                                                                   at the global scale,                                     talent and build employee loyalty.
                                                                                                                                                                                                                                                                                                                                                                                                   and are a prime factor
                                                                                                                                                                                                                                                                                                                                                                                                                                                            The main way in which it conveys
                                                                                                                                                                                                                                                                                                                                                                                                   in its performance and                                   its difference is through its HR policy.
                                                                                                                                                                                                                                                                                                                                                                                                   sustainable development.                                 More specifically, RCI Banque makes
                                                                                                                                                                                                                                                                                                                                                                                                                                                            the most of its size, international
                                                                                                                                                                                                                                                                                                                                                                                                   The course that has been                                 development and membership of
                                                                                                                                                                                                                                                                                                                                                                                                   set for the group’s Human                                the Renault Group to offer motivating
                                                                                                                                                                                                                                                                                                                                                                                                                                                            careers and a stimulating work
                                                                                                                                                                                                                                                                                                                                                                                                   Resources policy is divided                              environment.
                                                                                                                                                                                                                                                                                                                                                                                                   into four focal areas:
                                                                                                                                                                                                                                                                                                                                                                                                                                                            Through its wage policy, which
                                                                                                                                                                                                                                                                                                                                                                                                                                                            rewards both individual and collective
                                                                                                                                                                                                                                                                                                                                                                                                   • consolidate the group’s                                performance, RCI Banque is determined
                                                                                                                                                                                                                                                                                                                                                                                                     appeal;                                                to recognize the commitment and
                                                                                                                                                                                                                                                                                                                                                                                                                                                            enthusiasm of every employee.
                                                                                                                                                                                                                                                                                                                                                                                                   • promote quality                                        On a daily basis, the Human
                                                                                                                                                                                                                                                                                                                                                                                                     management;                                            Resources function uses its expertise
                                                                                                                                                                                                                                                                                                                                                                                                                                                            and locally based organization to
                                                                                                                                                                                                                                                                                                                                                                                                   • improve the management                                 provide managers and employees
                                                                                                                                                                                                                                                                                                                                                                                                     of key skills;                                         with the support they need in terms
                                                                                                                                                                                                                                                                                                                                                                                                                                                            of guidance, tools and processes.
                                                                                                                                                                                                                                                                                                                                                                                                   • give careers an                                        Aware of the importance of collective
                                                                                                                                                                                                                                                                                                                                                                                                                                                            negotiations, RCI Banque works
                                                                                                                                                                                                                                                                                                                                                                                                     international dimension.                               closely with trade unions and other
                                                                                                                                                                                                                                                                                                                                                                                                                                                            representative bodies to build
                                                                                                                                                                                                                                                                                                                                                                                                                                                            positive employment relations.



                                                                                                                                                                                                                                                                                                                                                                                                                                                            A mindset: quality
                                                                                                                                                                                                                                                                                                                                                                                                                                                            management
                                                                                                                                                                                                                                                                                                                                                                                                                                                            RCI Banque has decided to promote
                                                                                                                                                                                                                                                                                                                                                                                                                                                            quality management as a means of
                                                                                                                                                                                                                                                                                                                                                                                                                                                            both fostering unity within the
                                                                                                                                                                                                                                                                                                                                                                                                                                                            company and improving its
                                                                                                                                                                                                                                                                                                                                                                                                                                                            performance.

                                                                                                                                                                                                                                                                                                                                                                                                                                                            Every year, quality management
                                                                                                                                                                                                                                                                                                                                                                                                                                                            is given new momentum thanks to
                                                                                                                                                                                                                                                                                                                                                                                                                                                            an international survey that allows
                                                                                                                                                                                                                                                                                                                                                                                                                                                            every employee in the group to
                                                                                                                                                                                                                                                                                                                                                                                                                                                            express their opinions not only about
                                                                                                                                                                                                                                                                                                                                                                                                                                                            their own personal commitment,
                                                                                                                                                                                                                                                                                                                                                                                                                                                            but also about management.
                                                                                                                                                                                                                                                                                                                                                                                                                                                            By embracing the results of
                                                                                                                                                                                                                                                                                                                                                                                                                                                            this survey, each business division
                                                                                                                                                                                                                                                                                                                                                                                                                                                            in each country is then able to set
                                                                                                                                                                                                                                                                                                                                                                                                                                                            out a cross-disciplinary improvement
                                                                                                                                                                                                                                                                                                                                                                                                                                                            plan to be implemented by its
                                                                                                                                                                                                                                                                                                                                                                                                                                                            managers.




                                                                                                                                                                                                                                                                                                                                         - 22 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                              RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RESOURCES POLICY
    The effectiveness and relevance of                      • at the individual level, to enable
    the action plans brought in are                           everyone to take stock of their
    measured in terms of the                                  skills objectively, and, with the help
    improvements achieved, as revealed                        of their supervisors, to work on
    by the following survey.                                  their training needs so that they
    In 2008, the action plans mainly                          can do well in their jobs and take
    covered:                                                  practical steps towards furthering
                                                              their careers.
    • managerial communication;
    • cross-disciplinarity;                                 In 2008, RCI Banque spent 4.6% of its
    • customer focus.                                       payroll on training for its employees.

    Developing, assessing and recognizing
    the contribution made by each                           An ambition:
    individual is one of the key challenges
    facing management staff. Within the                     an international
    group, the annual review held with                      dimension to careers
    each individual is a crucial part of
    manager-employee relations. To this
                                                            One of RCI Banque’s clearly stated
    end, each manager has received
                                                            ambitions is to add an international
    specific training in how to conduct
                                                            dimension to its employees’ careers
    his/her team’s individual reviews.
                                                            as it works alongside the expansion
                                                            of Renault-Nissan Alliance brands
                                                            worldwide.
    A guideline:                                            In this context, RCI Banque:
    the management of                                       • has made the international
                                                              dimension an additional skill
    key skills                                                required to work in the group’s
                                                              businesses;
    Since 2001, RCI Banque has been
    proactively implementing a Skills                       • puts the wealth of cultural diversity
    Forecasting Management policy.                            and competencies to good use
    The rapid pace of technological,                          by offering the group’s employees
    economic and demographic change                           the chance to work for certain
    poses a real challenge, notably from                      periods of their careers outside
    the human point of view, and skills                       their home countries, in foreign
    forecasting is one of the key tools                       subsidiaries or at head office, so
    that can be used to manage it.                            that they can contribute fully to the
    The group has followed business                           group’s international development;
    guidelines and methodological                           • uses the practice of cross-
    standards to help it successfully                         disciplinary and international
    organize this forward planning                            responsibilities within Corporate
    approach.
                                                              structures to develop potential to
    The ultimate aim is for Skills
                                                              the fullest.
    Forecasting Management to become
    a matter for everyone, whether
                                                            For a number of years, this ambition
    managers, employees, trade unions
                                                            has been realized through:
    or the Human Resources function.
    This field of work is a tremendous                      • the introduction in all subsidiaries
    opportunity for all players to come                       of standard HR processes designed
    together and plan for the future.                         to identify, select and manage the
    The goals are twofold:                                    careers of employees with an
                                                              international profile;
    • at the collective level, to make sure
      that RCI Banque will have the key                     • the rollout of a dynamic Volontaire
      skills it needs to achieve its strategic                international entreprise (Corporate
      ambitions, by implementing the                          International Volunteers) policy
      requisite human resources                               designed to encourage young
      management action plans                                 international managers to join the
      (recruitment, careers, training);                       RCI Banque group.




    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 23 -
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




- 24 - ANNUAL REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
VA L U E U P 2 0 0 8
Value Up is the name
given to the RCI Banque
program aimed at
improving the group’s
operational performance
through process
management.

It was launched at the end of 2001
and currently covers RCI Banque’s
activities in France, Germany,
Spain and Italy. It will be extended to
the United Kingdom and South Korea
in 2009, and will then cover about
80% of the business.

The program is based on Six Sigma
and Lean techniques. As a result
of its deployment, a process map
providing a structured description of
every activity carried out in the
group’s entities has been finalized.
Each process has been appointed
a process owner, who has received
specific training. Indicators have
been established for the most
important processes, enabling them
to be managed and improved in terms
of customer satisfaction, performance
and risk.

To date, more than 300 employees
have been given intensive training,
600 people have become involved
in the program, and 360 projects
have been carried out.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNUAL REPORT 2008 - 25 -
BUSINESS REPORT 2008
                                                                                                                                                                                                                                                                                                                                                        EUROPE
                                                                                                                                                                                                                                                                                                                                                        RCI BANK AG
                                                                                                                                                                                                                                                                                                                                                        Laaer Berg-Strasse 64 - Postfach 196
                                                                                                                                                                                                                                                                                                                                                        A-1101 WIEN - AUSTRIA
                                                                                                                                                                                                                                                                                                                                                        Management: Manfred HEINDL
                                                                                                                                                                                                                                                                                                                                                        Tel: +43 1 680 30-130
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                             AUSTRIA
                                                                                                                                                                                                                                                                                             Against the backdrop of a 0.6% fall in sales on Austria’s car
                                                                                                                                                                                                                                                                                             market, new registrations of Alliance brand vehicles rose by
                                                                                                                                                                                                                                                                                                                                                                                         in thousands of euros (excluding rate and unit)              2008              2007
                                                                                                                                                                                                                                                                                             12.2% compared with 2007.                                                                   Number of new contracts processed                           12,591            12,183
                                                                                                                                                                                                                                                                                                                                                                                         New Customer financings, net                                90,597            79,598
                                                                                                                                                                                                                                                                                             All three brands increased their shares of the market. Renault
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET
                                                                                                                                                                                                                                                                                             increased its market share to 5.8% from 5.5% in 2007; sharp
                                                                                                                                                                                                                                                                                             growth in sales of the Dacia brand (up 136% compared with                                   Gross outstandings                                         280,009          284,222
                                                                                                                                                                                                                                                                                             2007) helped it increase its share from 0.4% in 2007 to 1%,                                 Allowance for impairment                                    (7,398)          (7,526)
                                                                                                                                                                                                                                                                                             while Nissan’s market share grew to 2% (1.9% in 2007).                                      Net outstandings                                           272,611          276,696
                                                                                                                                                                                                                                                                                                                                                                                         of which receivable from Dealers                             96,653           99,622
                                                                                                                                                                                                                                                                                             The number of new finance contracts increased by 3.3%.
                                                                                                                                                                                                                                                                                                                                                                                         Available-for-sale securities                                 4,758            3,871
                                                                                                                                                                                                                                                                                             The number of insurance contracts (financial loss insurance                                 Other assets                                                  1,118             3,356
                                                                                                                                                                                                                                                                                             and car insurance) increased sharply.
                                                                                                                                                                                                                                                                                                                                                                                         Debt                                                       238,710           240,387
                                                                                                                                                                                                                                                                                             Average performing loan outstandings amounted to €177m in                                   Other liabilities                                            6,188             4,679
                                                                                                                                                                                                                                                                                             the Retail Customer segment, remaining stable in comparison                                 Provisions                                                     490               461
                                                                                                                                                                                                                                                                                             with 2007 and increased by 7.5% to €110m on the Dealer                                      Equity                                                      33,099            38,396
                                                                                                                                                                                                                                                                                             business.
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET TOTAL                                        278,487          283,923
                                                                                                                                                                                                                                                                                             Pre-tax income was down to €3.5m from €4.1m in 2007, due
                                                                                                                                                                                                                                                                                             to a rise in distribution costs (up €1.5m).                                                 INCOME STATEMENT
                                                                                                                                                                                                                                                                                                                                                                                         Net banking income                                            9,163           10,865
                                                                                                                                                                                                                                                                                                                                                                                         (excluding non-banking income)
                                                                                                                                                                                                                                                                                                                                                                                         Pre-tax income                                                3,478             4,124
                                                                                                                                                                                                                                                                                                                                                                                         Net income                                                    2,614             5,612




                                                                                                                                                                                                                                                                                           - 28 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                       EUROPE
                                                                   RCI Financial Services S.A.
                                                                          W.A. Mozartlaan, 20
                                                                  1620 DROGENBOS - BELGIUM
                                                                 Management: Thierry HEBERT
                                                                       Tel: +32 2 730 65 77




                                                                                                                                                                                          RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BELGIUM
Conditions in the automobile market improved slightly in
2008, with 660,682 new vehicle registrations (up 1.9%).
                                                                                           in thousands of euros (excluding rate and unit)              2008              2007
Renault’s market share remained stable at 9.7% and Nissan’s                                Number of new contracts processed                            18,729            14,115
came in at 1.22%.                                                                          New Customer financings, net                                 92,304            79,867
                                                                                           BALANCE SHEET
RCI Banque Belgium/Luxembourg’s penetration rate on
Renault sales increased by 2.7 points to 23%, boosted by                                   Gross outstandings                                         233,483           216,078
very attractive special offers to Retails Customers.                                       Allowance for impairment                                    (5,290)           (4,479)
                                                                                           Net outstandings                                           228,193           211,599
In the second quarter, the subsidiary began its Retail
                                                                                           of which receivable from Dealers                             89,001            92,853
Customer financing activities on Nissan sales and achieved
a 6.7% penetration rate, with a €4.5m impact on total new                                  Available-for-sale securities                                   328             8,866
financings.                                                                                Other assets                                                 20,565            21,503
                                                                                           Debt                                                       233,330           228,757
Pre-tax income came to €3.8m.
                                                                                           Other liabilities                                            8,277             5,576
                                                                                           Provisions                                                   1,999             4,245
                                                                                           Equity                                                        5,480             3,390
                                                                                           BALANCE SHEET TOTAL                                        249,086           241,968

                                                                                           INCOME STATEMENT
                                                                                           Net banking income                                            7,541             7,670
                                                                                           (excluding non-banking income)
                                                                                           Pre-tax income                                                3,787               752
                                                                                           Net income                                                    2,097           (5,296)




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 29 -
                                                                                                                                                                                                                                                                                                                                                        EUROPE
                                                                                                                                                                                                                                                                                                                                                        RENAULT LEASING CZ s.r.o.
                                                                                                                                                                                                                                                                                                                                                        RCI Finance CZ s.r.o. - RCI Finance SK s.r.o.
                                                                                                                                                                                                                                                                                                                                                        IBC Pobrezni 3 - 186 00 PRAHA 8
                                                                                                                                                                                                                                                                                                                                                        CZECH REPUBLIC
                                                                                                                                                                                                                                                                                                                                                        Management: Jean-Jacques THIBERT
                                                                                                                                                                                                                                                                                                                                                        Tel: +420 222 339 717
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                             CZECH REPUBLIC
                                                                                                                                                                                                                                                                                             Annual GDP in the Czech Republic continued to grow at a                                  Consolidated financial statements (Czech Republic and Slovakia)
                                                                                                                                                                                                                                                                                             sustained rate of 4.2%.
                                                                                                                                                                                                                                                                                                                                                                                         in thousands of euros (excluding rate and unit)              2008              2007
                                                                                                                                                                                                                                                                                             The automobile market grew by 9.5%, with 203,647 new                                        Exchange rate (year end)                                   26.8750           26.6280
                                                                                                                                                                                                                                                                                             vehicle registrations. The Group’s brands increased
                                                                                                                                                                                                                                                                                                                                                                                         Exchange rate (average)                                    24.9590           27.7570
                                                                                                                                                                                                                                                                                             their shares of the market; Renault took a 6.9% share (up
                                                                                                                                                                                                                                                                                             0.6 points on 2007) and Dacia increased its share to 1.4% (up                               Number of new contracts processed                           13,620             9,540
                                                                                                                                                                                                                                                                                             0.4 points on 2007).                                                                        New Customer financings, net                                39,165            26,263
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET
                                                                                                                                                                                                                                                                                             The penetration rate reached record levels of 54.9% on sales
                                                                                                                                                                                                                                                                                             of Renault vehicles (49.3% in 2007) and 55% on sales of                                     Gross outstandings                                           98,335            83,463
                                                                                                                                                                                                                                                                                             Dacia vehicles (32% in 2007).                                                               Allowance for impairment                                    (1,610)           (1,081)
                                                                                                                                                                                                                                                                                             Shored up by these outstanding business performances,                                       Net outstandings                                            96,725            82,382
                                                                                                                                                                                                                                                                                             average performing Customer loan outstandings rose by                                       of which receivable from Dealers                             34,976            32,139
                                                                                                                                                                                                                                                                                             33.2% compared with 2007, to reach €60.4m, and average
                                                                                                                                                                                                                                                                                                                                                                                         Available-for-sale securities                                 3,498             1,921
                                                                                                                                                                                                                                                                                             performing Dealer loan outstandings increased by 55.4% to
                                                                                                                                                                                                                                                                                             €34.5m.                                                                                     Other assets                                                  1,287               733
                                                                                                                                                                                                                                                                                                                                                                                         Debt                                                         67,023            70,563
                                                                                                                                                                                                                                                                                             Pre-tax income came to €3m compared with €2.1m in 2007.
                                                                                                                                                                                                                                                                                                                                                                                         Other liabilities                                             5,226           (1,030)
                                                                                                                                                                                                                                                                                             This increase was due in particular to the non-stop increase
                                                                                                                                                                                                                                                                                             in new financings and the development of the Insurance                                      Provisions                                                        -                 -
                                                                                                                                                                                                                                                                                             business.                                                                                   Equity                                                       29,261            15,503
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET TOTAL                                        101,510            85,036

                                                                                                                                                                                                                                                                                                                                                                                         INCOME STATEMENT
                                                                                                                                                                                                                                                                                                                                                                                         Net banking income                                            6,419             4,498
                                                                                                                                                                                                                                                                                             S L O VA K I A                                                                              (excluding non-banking income)
                                                                                                                                                                                                                                                                                                                                                                                         Pre-tax income                                                3,652             2,408
                                                                                                                                                                                                                                                                                                                                                                                         Net income                                                    2,784             1,852
                                                                                                                                                                                                                                                                                             Economic growth in Slovakia continued to be one of the
                                                                                                                                                                                                                                                                                             highest in Europe at 7.1%.

                                                                                                                                                                                                                                                                                             In 2008, preparations were being made in Slovakia for the
                                                                                                                                                                                                                                                                                             country to join the Euro zone on 1 January 2009.

                                                                                                                                                                                                                                                                                             The automobile market grew by 17.1% in comparison with
                                                                                                                                                                                                                                                                                             2007, to 96,897 vehicles sold. With a combined total of
                                                                                                                                                                                                                                                                                             7,709 new registrations for the Renault and Dacia brands, the
                                                                                                                                                                                                                                                                                             Renault Group’s share of the market rose by 1.6 points in
                                                                                                                                                                                                                                                                                             comparison with 2007 (Renault 6.1% compared with 5.5% in
                                                                                                                                                                                                                                                                                             2007 and Dacia 1.9% compared with 0.8%).

                                                                                                                                                                                                                                                                                             In 2008, the penetration rate remained stable at 45.5% on
                                                                                                                                                                                                                                                                                             Renault sales (45.7% in 2007) and 44.3% on Dacia sales
                                                                                                                                                                                                                                                                                             (42.6% in 2007), with a total of 3,546 finance contracts
                                                                                                                                                                                                                                                                                             written (up 46.9% in comparison with 2007).

                                                                                                                                                                                                                                                                                             Pre-tax income came to €0.7m, compared with €0.3m in 2007.




                                                                                                                                                                                                                                                                                           - 30 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                              EUROPE
                                                                                     GROUPE DIAC
                                                                         14, avenue du Pavé Neuf
                                                                     93168 NOISY-LE-GRAND CEDEX
                                                                                         FRANCE
                                                      Management: Jean-Pierre FRAMEZELLE
                                                                   Tel: +33 1 49 32 80 00




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     FRANCE
     France’s automobile market (all brands combined) remained
     stable in 2008 compared to 2007, with 2.5 million vehicles
                                                                                                  in thousands of euros (excluding rate and unit)               2008              2007
     sold.                                                                                        Number of new contracts processed                           283,315           279,438
                                                                                                  New Customer financings, net                              3,384,479         3,283,119
     Renault achieved a volume of 594,084 new registrations,
                                                                                                  BALANCE SHEET
     giving it a 23.7% share of the passenger and utility vehicle
     market (23.5% in 2007). Updates to the range, which began                                    Gross outstandings                                       7,881,447         8,236,896
     in 2007, continued in 2008 with, for example, the launch of                                  Allowance for impairment                                 (284,938)         (227,927)
     the Clio Estate and the New Kangoo. Renault thus has one of                                  Net outstandings                                         7,596,509         8,008,969
     the youngest ranges on the market, and one that is also very
                                                                                                  of which receivable from Dealers                         1,601,952         2,135,349
     well placed in terms of CO2 emissions.
     Dacia’s success continued with a 33% increase to 43,567 new                                  Available-for-sale securities                              484,779           332,539
     registrations. The brand’s offering expanded in 2008 with the                                Other assets                                                343,360           331,607
     launch of the Sandero.
                                                                                                  Debt                                                      7,126,825         7,529,192
     New Nissan registrations increased by 10% compared with
     2007 to 46,603 vehicles, driven by the success of the                                        Other liabilities                                           597,233           499,936
     Qashqai.                                                                                     Provisions                                                   53,970            65,153
                                                                                                  Equity                                                      646,620           578,835
     Financing volume for the Diac group came to 283,315
     contracts, an increase of 3,900 contracts compared with                                      BALANCE SHEET TOTAL                                      8,424,648         8,673,116
     2007. Despite the financial crisis, business performance grew
     by about 0.5 points, with a penetration rate of 32.5% (32.03%                                INCOME STATEMENT
     in 2007).                                                                                    Net banking income                                          343,522           341,073
                                                                                                  (excluding non-banking income)
     New financings came to €3.38bn, increasing by 3.1% in
     relation to 2007 (up by €100m).                                                              Pre-tax income                                              190,274           164,321
                                                                                                  Net income                                                  123,428           106,411
     Average performing Customer loan outstandings increased to
     €5.73bn (up 1.4%/€79m from 2007), mainly due to growth in
     the long-term rental business (up 5%/€82m). Average Dealer
     outstandings came to €2.22bn (up 8.5% from 2007).

     Pre-tax income rose considerably from €164.3m in 2007 to
     €190.3m in 2008. Excluding non-recurring items, operating
     expenses amounted to 1.60% of outstandings, showing a
     positive difference in value terms compared with 2007.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 31 -
                                                                                                                                                                                                                                                                                                                                                        EUROPE
                                                                                                                                                                                                                                                                                                                                                        RCI BANQUE S.A.
                                                                                                                                                                                                                                                                                                                                                        Niederlassung Deutschland - Jagenbergstrasse 1
                                                                                                                                                                                                                                                                                                                                                        D-41468 NEUSS - GERMANY
                                                                                                                                                                                                                                                                                                                                                        Management: Alain GUIDOU
                                                                                                                                                                                                                                                                                                                                                        Tel: +49 2131 401 010
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                             GERMANY
                                                                                                                                                                                                                                                                                             With an annual growth rate nearing 1.3% (2.5% in 2007),
                                                                                                                                                                                                                                                                                             the economic situation in 2008 remained positive despite
                                                                                                                                                                                                                                                                                                                                                                                         in thousands of euros (excluding rate and unit)              2008              2007
                                                                                                                                                                                                                                                                                             a slowdown marked by the crisis in the second half year.                                    Number of new contracts processed                          122,515           125,583
                                                                                                                                                                                                                                                                                                                                                                                         New Customer financings, net                             1,409,140         1,454,815
                                                                                                                                                                                                                                                                                             Against this backdrop, the car market was strongly affected,
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET
                                                                                                                                                                                                                                                                                             with sales down to 3.3 million vehicles (a fall of 1.7%
                                                                                                                                                                                                                                                                                             compared with 2007), the country’s lowest level for fifteen                                 Gross outstandings                                      4,123,652         4,552,666
                                                                                                                                                                                                                                                                                             years.                                                                                      Allowance for impairment                                  (99,252)        (110,358)
                                                                                                                                                                                                                                                                                             Renault confirmed its position as the leading importer with a                               Net outstandings                                        4,024,400         4,442,308
                                                                                                                                                                                                                                                                                             settled 4.2% share of the market. Nissan and Dacia both
                                                                                                                                                                                                                                                                                                                                                                                         of which receivable from Dealers                           865,732          868,687
                                                                                                                                                                                                                                                                                             increased their market shares to 1.5% (a 0.1 points increase)
                                                                                                                                                                                                                                                                                             and 0.8% (a 0.3 points increase) respectively.                                              Available-for-sale securities                           2,378,903         1,670,350
                                                                                                                                                                                                                                                                                                                                                                                         Other assets                                                 58,171            47,742
                                                                                                                                                                                                                                                                                             RCI Banque Germany’s penetration rate fell from 38.6% to
                                                                                                                                                                                                                                                                                                                                                                                         Debt                                                     6,080,927         5,773,003
                                                                                                                                                                                                                                                                                             37.2%. Its penetration rate on Renault sales fell by 1.2 points
                                                                                                                                                                                                                                                                                             to 41.2%, particularly as a result of a fall in passenger vehicle                           Other liabilities                                          267,021            63,026
                                                                                                                                                                                                                                                                                             registrations, RCI Banque’s core target. Likewise, the                                      Provisions                                                   8,260             5,112
                                                                                                                                                                                                                                                                                             penetration rate on Nissan sales fell to 27.2% (down                                        Equity                                                     105,266           319,259
                                                                                                                                                                                                                                                                                             3.9 points) following the cutback in advertising campaigns.
                                                                                                                                                                                                                                                                                             The penetration rate on Dacia sales rose sharply to 34.4%                                   BALANCE SHEET TOTAL                                     6,461,474         6,160,400
                                                                                                                                                                                                                                                                                             (up 6 points) thanks to the success of a number of
                                                                                                                                                                                                                                                                                             promotional campaigns (Highlight), which were extended to                                   INCOME STATEMENT
                                                                                                                                                                                                                                                                                             the whole of the range.                                                                     Net banking income                                         169,682           170,490
                                                                                                                                                                                                                                                                                             Consequently, the number of new “vehicle” contracts                                         (excluding non-banking income)
                                                                                                                                                                                                                                                                                             processed fell slightly by 2.4% to 122,515 units.
                                                                                                                                                                                                                                                                                                                                                                                         Pre-tax income                                               98,975            89,117
                                                                                                                                                                                                                                                                                             Average performing loan outstandings recorded a 6% fall                                     Net income                                                   68,428            54,992
                                                                                                                                                                                                                                                                                             to €4.3bn:
                                                                                                                                                                                                                                                                                             • down 9.5% on Retail Customer outstandings,
                                                                                                                                                                                                                                                                                             • up 8% on Dealer outstandings.

                                                                                                                                                                                                                                                                                             Net banking income remained stable at €170m compared with
                                                                                                                                                                                                                                                                                             the previous year.

                                                                                                                                                                                                                                                                                             Pre-tax income came to €99m in 2008 compared with €89.1m
                                                                                                                                                                                                                                                                                             in 2007. This increase is attributable to:
                                                                                                                                                                                                                                                                                             • the savings made on operating costs, as a result of which
                                                                                                                                                                                                                                                                                               net operating expenses fell to €50m in 2008, €3.2m less
                                                                                                                                                                                                                                                                                               than in 2007,
                                                                                                                                                                                                                                                                                             • the continuation of a selective underwriting policy and
                                                                                                                                                                                                                                                                                               optimization of recovery, which led to a decrease in the
                                                                                                                                                                                                                                                                                               overall cost of risk to €20.6m in 2008 (down €6.8m),
                                                                                                                                                                                                                                                                                             • a €1.1bn securitization issue backed by the Leasing
                                                                                                                                                                                                                                                                                               portfolio, which helped to diversify the RCI Banque group’s
                                                                                                                                                                                                                                                                                               sources of funding.




                                                                                                                                                                                                                                                                                           - 32 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                              EUROPE
                                                                                          RCI Zrt.
                                                                                   Vaci ut 81-85
                                                                      H-1139 BUDAPEST - HUNGARY
                                                          Management: Christophe DUROSELLE
                                                                       Tel: +36 1 298 82 65




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      HUNGARY
      The Hungarian automobile market declined for the fourth year
      running (down 9.5% in 2008 from 2007). This fall, which was
                                                                                                  in thousands of euros (excluding rate and unit)               2008              2007
      more substantial over the second half year (down 17%                                        Exchange rate (year end)                                  266.7000          253.7300
      compared with the second half year 2007), was among other                                   Exchange rate (average)                                   251.7377          251.3166
      things a consequence of deteriorating economic conditions in                                Number of new contracts processed                            1,377             2,273
      the country, made worse by the global economic and financial
                                                                                                  New Customer financings, net                                10,618            19,549
      crisis.
                                                                                                  BALANCE SHEET
      With 9,468 new vehicles registered, sales by the Renault                                    Gross outstandings                                            72,441            95,814
      Group recorded the same fall as the market, with its
                                                                                                  Allowance for impairment                                     (1,759)           (2,077)
      penetration rate settling at 5.43% (up 7 points for Renault
      and down 6 points for Dacia).                                                               Net outstandings                                             70,682            93,737
      Renault Credit Hungary’s penetration rate fell sharply in 2008,                             of which receivable from Dealers                              14,034            23,147
      due to shrinking sales of passenger cars, RCI Banque’s core                                 Available-for-sale securities                                  2,160               268
      target. It dropped to 12.40% from 20.40% in 2007.                                           Other assets                                                   2,385             8,450
      However, a business action plan implemented jointly with the                                Debt                                                          63,840            83,884
      car manufacturer has begun to reverse the trend.                                            Other liabilities                                              1,646             3,228
                                                                                                  Provisions                                                       232               169
      In 2008, RCI Hungary signed a business agreement with
                                                                                                  Equity                                                         9,509            15,174
      Unicrédit Leasing Hungary on the Retail Customer business in
      order to optimize its structure, and also terminated its “back-                             BALANCE SHEET TOTAL                                          75,227           102,455
      office” services provision agreement with Raiffeisen Lizing.
      This new organization will be up and running as from the                                    INCOME STATEMENT
      second quarter of 2009.
                                                                                                  Net banking income                                                171            6,394
      Total average performing loan outstandings amounted to                                      (excluding non-banking income)
      €80.4m, of which €61.2m represented Customer loans.                                         Pre-tax income                                               (3,094)             2,344
                                                                                                  Net income                                                   (3,094)             1,842
      The pre-tax result was a loss of €3.1m, as a result of
      provisioning for goodwill further to the persistent deterioration
      in the subsidiary’s business and financial performance.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 33 -
                                                                                                                                                                                                                                                                                                                                                        EUROPE
                                                                                                                                                                                                                                                                                                                                                        RCI BANQUE
                                                                                                                                                                                                                                                                                                                                                        Succursale Italiana - Via Tiburtina, 1159
                                                                                                                                                                                                                                                                                                                                                        I-00156 ROMA - ITALY
                                                                                                                                                                                                                                                                                                                                                        Management: Bruno KINTZINGER
                                                                                                                                                                                                                                                                                                                                                        Tel: +39 06 41 773 478
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                                I TA LY
                                                                                                                                                                                                                                                                                             The Italian economy recorded an annual decrease in GDP of
                                                                                                                                                                                                                                                                                             0.6% in 2008. In a context of financial crisis, inflation rose to
                                                                                                                                                                                                                                                                                                                                                                                         in thousands of euros (excluding rate and unit)              2008              2007
                                                                                                                                                                                                                                                                                             3.3% (up 1.3% on 2007), there was a sharp slowdown in                                       Number of new contracts processed                           56,702            71,338
                                                                                                                                                                                                                                                                                             household consumption and industrial output fell to its lowest                              New Customer financings, net                               598,559           735,496
                                                                                                                                                                                                                                                                                             level for ten years.
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET
                                                                                                                                                                                                                                                                                             Despite the continuation of government incentives for people                                Gross outstandings                                      1,587,956         1,828,045
                                                                                                                                                                                                                                                                                             to scrap old cars, the automobile market fell by 12.5% year                                 Allowance for impairment                                  (80,445)          (71,025)
                                                                                                                                                                                                                                                                                             on year to 2.4 million vehicles. Renault recorded a 4.6% share                              Net outstandings                                        1,507,511         1,757,020
                                                                                                                                                                                                                                                                                             of the market (down from 5.1% in 2007), Dacia increased its
                                                                                                                                                                                                                                                                                                                                                                                         of which receivable from Dealers                           361,108           365,419
                                                                                                                                                                                                                                                                                             share to 0.4% (up 0.2 points from 2007) and Nissan
                                                                                                                                                                                                                                                                                             increased its share from 1.8% in 2007 to 2.4% in 2008, mainly                               Available-for-sale securities                              159,918           204,125
                                                                                                                                                                                                                                                                                             due to the success of the Qashqai crossover.                                                Other assets                                               958,251         1,021,387
                                                                                                                                                                                                                                                                                                                                                                                         Debt                                                     2,504,492         2,852,666
                                                                                                                                                                                                                                                                                             The overall penetration rate stood at 31.3%, down from 35.3%
                                                                                                                                                                                                                                                                                             in 2007. This decrease affected both the Retail and Corporate                               Other liabilities                                           74,653            93,036
                                                                                                                                                                                                                                                                                             markets.                                                                                    Provisions                                                  14,170             4,721
                                                                                                                                                                                                                                                                                             The long-term rental business, managed by Overlease (in                                     Equity                                                       32,365            32,109
                                                                                                                                                                                                                                                                                             a joint venture with LeasePlan), decreased slightly to
                                                                                                                                                                                                                                                                                             12,309 fleet vehicles compared with 13,837 in 2007.                                         BALANCE SHEET TOTAL                                     2,625,680         2,982,532
                                                                                                                                                                                                                                                                                             New financings fell by 18.6%.
                                                                                                                                                                                                                                                                                                                                                                                         INCOME STATEMENT
                                                                                                                                                                                                                                                                                             Average performing loan outstandings were €1.7bn, down from                                 Net banking income                                           69,208            77,034
                                                                                                                                                                                                                                                                                             €1.9bn in 2007, reflecting the slowdown in the Retail                                       (excluding non-banking income)
                                                                                                                                                                                                                                                                                             business.
                                                                                                                                                                                                                                                                                                                                                                                         Pre-tax income                                               33,781            32,489
                                                                                                                                                                                                                                                                                             Net banking income came to €69m, or 4.1% as a percentage                                    Net income                                                   18,770            27,524
                                                                                                                                                                                                                                                                                             of average outstandings, stable in comparison with 2007.
                                                                                                                                                                                                                                                                                             This includes the positive impact of income from services and
                                                                                                                                                                                                                                                                                             insurance, which totaled €23.4m in 2008 (up by €5.2m in
                                                                                                                                                                                                                                                                                             relation to 2007).

                                                                                                                                                                                                                                                                                             Pre-tax income for 2008 came to €33.8m, a rise of 3.98%
                                                                                                                                                                                                                                                                                             mainly attributable to control over the cost of Customer risk
                                                                                                                                                                                                                                                                                             (0.49% of average performing loan outstandings in 2008,
                                                                                                                                                                                                                                                                                             compared with 0.73% in 2007).




                                                                                                                                                                                                                                                                                           - 34 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                              EUROPE
                                                                             RCI Financial Services B.V.
                                                                                     Boeingavenue 275
                                                                                1119 PD SCHIPHOL-RIJK
                                                                                          NETHERLANDS
                                                                        Management: Thierry HEBERT
                                                                             Tel: +31 20 354 96 66




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     NETHERLANDS
     In the context of the financial crisis in 2008, there was a
     slowdown in growth in the Netherlands in comparison with
                                                                                                  in thousands of euros (excluding rate and unit)               2008              2007
     2007. Inflation increased from 1.5% to 2.3%.                                                 Number of new contracts processed                            18,914             15,705
                                                                                                  New Customer financings, net                                124,341             90,829
     Against the backdrop of a stable automobile market, Renault
                                                                                                  BALANCE SHEET
     increased its market share by 0.9 points to 8.1%. Nissan’s
     remained unchanged at 2.05%.                                                                 Gross outstandings                                          426,873           472,159
                                                                                                  Allowance for impairment                                   (28,773)          (24,513)
     The overall penetration rate grew by 2.6 points to 24.8%.                                    Net outstandings                                           398,100           447,646
     Promotional operations focusing on the Retail sector helped
                                                                                                  of which receivable from Dealers                            218,429           292,335
     the penetration rate on Renault sales to increase by 5 points,
     to 27%. The penetration rate on Nissan sales dropped by                                      Available-for-sale securities                                 6,291             1,569
     2.4 points to 21.5%.                                                                         Other assets                                                   5,239           (3,207)
                                                                                                  Debt                                                        393,785           421,895
     Pre-tax income came to €6.9m.
                                                                                                  Other liabilities                                             4,448             5,495
                                                                                                  Provisions                                                    4,542             9,863
                                                                                                  Equity                                                         6,855             8,755
                                                                                                  BALANCE SHEET TOTAL                                         409,630           446,008

                                                                                                  INCOME STATEMENT
                                                                                                  Net banking income                                            14,985            19,990
                                                                                                  (excluding non-banking income)
                                                                                                  Pre-tax income                                                 6,864             9,840
                                                                                                  Net income                                                     5,279             7,331




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 35 -
                                                                                                                                                                                                                                                                                                                                                        EUROPE
                                                                                                                                                                                                                                                                                                                                                        Renault Finance Nordic
                                                                                                                                                                                                                                                                                                                                                        Esbogatan 12 - Box 1028
                                                                                                                                                                                                                                                                                                                                                        164 21 KISTA - SWEDEN
                                                                                                                                                                                                                                                                                                                                                        Management: Stéphane LOTTIN
                                                                                                                                                                                                                                                                                                                                                        Tel: +33 1 76 88 03 72
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                             NORDIC COUNTRIES
                                                                                                                                                                                                                                                                                             Since early 2008, Renault Finance Nordic has been                                           in thousands of euros (excluding rate and unit)              2008              2007
                                                                                                                                                                                                                                                                                             responsible for the management and financing of Renault
                                                                                                                                                                                                                                                                                             dealer inventories in all Nordic countries. It operates from                                Exchange rate (year end)                                   10.8700                   -
                                                                                                                                                                                                                                                                                             a platform based in Sweden.                                                                 Exchange rate (average)                                     9.6169                   -
                                                                                                                                                                                                                                                                                                                                                                                         Number of new contracts processed                            8,594                   -
                                                                                                                                                                                                                                                                                             Business agreements covering leasing and loan financing                                     New Customer financings, net                                     -                   -
                                                                                                                                                                                                                                                                                             and insurance have been signed with partners to cover
                                                                                                                                                                                                                                                                                             Sweden, Finland, Denmark and Norway.                                                        BALANCE SHEET
                                                                                                                                                                                                                                                                                                                                                                                         Gross outstandings                                          40,567                   -
                                                                                                                                                                                                                                                                                             Against the backdrop of a 12.4% fall in sales in the Nordic                                 Allowance for impairment                                     (554)                   -
                                                                                                                                                                                                                                                                                             countries automobile market (combining Sweden, Finland,
                                                                                                                                                                                                                                                                                                                                                                                         Net outstandings                                            40,013                   -
                                                                                                                                                                                                                                                                                             Denmark and Norway), Renault’s share of the market slipped
                                                                                                                                                                                                                                                                                             to 2.5% (compared with 2.9% in 2007).                                                       of which receivable from Dealers                            40,013                   -
                                                                                                                                                                                                                                                                                                                                                                                         Available-for-sale securities                                7,616                   -
                                                                                                                                                                                                                                                                                             For its first year in business, Renault Finance Nordic posted                               Other assets                                                    639                  -
                                                                                                                                                                                                                                                                                             a penetration rate on Renault sales of 23% (Sweden: 38%,
                                                                                                                                                                                                                                                                                             Finland: 10%, Denmark: 1% and Norway: 2%).                                                  Debt                                                        48,324                   -
                                                                                                                                                                                                                                                                                                                                                                                         Other liabilities                                              935                   -
                                                                                                                                                                                                                                                                                             Average performing loan outstandings amounted to €44.3m.                                    Provisions                                                       -                   -
                                                                                                                                                                                                                                                                                             Pre-tax income was €1.4m.                                                                   Equity                                                        (991)                  -
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET TOTAL                                         48,268                   -

                                                                                                                                                                                                                                                                                                                                                                                         INCOME STATEMENT
                                                                                                                                                                                                                                                                                                                                                                                         Net banking income                                            3,300                  -
                                                                                                                                                                                                                                                                                                                                                                                         (excluding non-banking income)
                                                                                                                                                                                                                                                                                                                                                                                         Pre-tax income                                                1,401                  -
                                                                                                                                                                                                                                                                                                                                                                                         Net income                                                    2,045                  -




                                                                                                                                                                                                                                                                                           - 36 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                              EUROPE
                                                                                   RENAULT CREDIT POLSKA
                                                                                      ulica Marynarska 13
                                                                                    PL-02-674 WARSZAWA
                                                                                                  POLAND
                                                                     Management: Philippe METRAS
                                                                           Tel: +48 22 541 13 00




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     POLAND
     In a favorable economic environment, the automobile market
     (all brands combined) continued to grow in 2008, with an 8%
                                                                                                  in thousands of euros (excluding rate and unit)               2008              2007
     increase compared with 2007 with some 377,000 units sold.                                    Exchange rate (year end)                                     4.1535            3.5935
                                                                                                  Exchange rate (average)                                      3.5151            3.7830
     Renault and Dacia sales grew by 11% compared with 2007,                                      Number of new contracts processed                            11,709             9,463
     mainly due to the increase in sales of passenger vehicles
                                                                                                  New Customer financings, net                                105,962            83,697
     and the small car segment (Clio, Twingo).
                                                                                                  BALANCE SHEET
     Renault and Nissan renewed their support and as a result,                                    Gross outstandings                                          218,673           239,728
     new financings grew by 27% to €106m.
                                                                                                  Allowance for impairment                                     (6,965)           (7,119)
     RCI Banque’s penetration rate on Renault/Dacia sales                                         Net outstandings                                            211,708           232,609
     increased by 2.3 points over the year to reach 35.7%.                                        of which receivable from Dealers                              94,042          127,526
     The penetration rate on sales of Nissan vehicles in this                                     Available-for-sale securities                                 15,257             3,653
     second year of business rose to 8.1% (2.6% in 2007), due to                                  Other assets                                                 11,248            10,209
     the rollout of promotional operations.
                                                                                                  Debt                                                        170,068           191,242
     Average performing loan outstandings rose to €274m                                           Other liabilities                                             2,000             2,536
     (from €192m in 2007), owing to the increase in Customer and                                  Provisions                                                      685               546
     Dealer loan outstandings.
                                                                                                  Equity                                                       65,460            52,147
     In 2008, RCI Bank Polska launched the Dealer credit business                                 BALANCE SHEET TOTAL                                         238,213           246,471
     under the Infiniti brand name in Poland.
     It also began financing Renault dealer vehicle inventories in                                INCOME STATEMENT
     the Baltic countries.
                                                                                                  Net banking income                                           16,477            11,206
     Pre-tax income came to €8.8m, up from €3.2m in 2007.                                         (excluding non-banking income)
     This increase is attributable to the rise in Renault and Nissan                              Pre-tax income                                                 8,781             3,215
     Customer and Dealer loan outstandings and to the fact that                                   Net income                                                     6,406             2,045
     margins, operating expenses and the cost of risk held up
     well.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 37 -
                                                                                                                                                                                                                                                                                                                                                        EUROPE
                                                                                                                                                                                                                                                                                                                                                        RCI BANQUE PORTUGAL
                                                                                                                                                                                                                                                                                                                                                        Lagoas Park, Edificio 4
                                                                                                                                                                                                                                                                                                                                                        2740-267 PORTO SALVO
                                                                                                                                                                                                                                                                                                                                                        PORTUGAL
                                                                                                                                                                                                                                                                                                                                                        Management: Patrick POULAIN
                                                                                                                                                                                                                                                                                                                                                        Tel: +351 21 850 2000
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                             PORTUGAL
                                                                                                                                                                                                                                                                                             In an automobile market that grew by 0.5% in 2008 to
                                                                                                                                                                                                                                                                                             268,967 new registrations, Renault’s share of the market fell
                                                                                                                                                                                                                                                                                                                                                                                         in thousands of euros (excluding rate and unit)              2008              2007
                                                                                                                                                                                                                                                                                             from 13.1% in 2007 to 12.3% in 2008 but it held its top spot                                Number of new contracts processed                           12,330            13,537
                                                                                                                                                                                                                                                                                             on the market as the leading passenger and utility vehicle                                  New Customer financings, net                               160,800           188,490
                                                                                                                                                                                                                                                                                             brand. Nissan’s market share increased from 1.7% to 2.5%.
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET
                                                                                                                                                                                                                                                                                             In this unfavorable environment, RCI Banque Portugal’s                                      Gross outstandings                                         384,625           444,452
                                                                                                                                                                                                                                                                                             penetration rate slid by 1.4%, from 26.5% in 2007 to 25.1%                                  Allowance for impairment                                  (41,611)          (45,943)
                                                                                                                                                                                                                                                                                             in 2008. New financings fell by 14.7% to €161m, especially                                  Net outstandings                                          343,014           398,509
                                                                                                                                                                                                                                                                                             because of the decrease in financing on the Short-Term
                                                                                                                                                                                                                                                                                                                                                                                         of which receivable from Dealers                            81,235           103,989
                                                                                                                                                                                                                                                                                             Rental Company segment.
                                                                                                                                                                                                                                                                                                                                                                                         Available-for-sale securities                                5,730             4,497
                                                                                                                                                                                                                                                                                             In total, average performing loan outstandings fell by 14.8%                                Other assets                                                 40,007            49,719
                                                                                                                                                                                                                                                                                             compared with 2007, to €362m.
                                                                                                                                                                                                                                                                                                                                                                                         Debt                                                       336,918           387,711
                                                                                                                                                                                                                                                                                             On the Dealer segment, lending increased, with average                                      Other liabilities                                           17,103            22,434
                                                                                                                                                                                                                                                                                             performing loan outstandings up by 5.5% (€115m in 2008                                      Provisions                                                   4,198             7,749
                                                                                                                                                                                                                                                                                             compared with €109m in 2007).                                                               Equity                                                       30,532            34,831

                                                                                                                                                                                                                                                                                             Pre-tax income came to €4.1m, compared with €5.5m in 2007.                                  BALANCE SHEET TOTAL                                        388,751           452,725

                                                                                                                                                                                                                                                                                                                                                                                         INCOME STATEMENT
                                                                                                                                                                                                                                                                                                                                                                                         Net banking income                                           15,733            16,403
                                                                                                                                                                                                                                                                                                                                                                                         (excluding non-banking income)
                                                                                                                                                                                                                                                                                                                                                                                         Pre-tax income                                                4,056             5,482
                                                                                                                                                                                                                                                                                                                                                                                         Net income                                                    5,232             4,100




                                                                                                                                                                                                                                                                                           - 38 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                              EUROPE
                                                                               Renault Slovenija d.o.o
                                                                                         Dunajska 22
                                                                           1511 LJUBLJANA - SLOVENIA
                                                                Management: Marc de BUFFEVENT
                                                                        Tel: +386 1 472 32 00




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      SLOVENIA
      Economic fundamentals in Slovenia remained very good in
      2008, with growth at 4.1%, inflation under control at 1.8% and
                                                                                                  in thousands of euros (excluding rate and unit)               2008              2007
      an unemployment rate of 4.8%.                                                               Number of new contracts processed                              9,715             8,193
                                                                                                  New Customer financings, net                                       -                 -
      Against this backdrop, the automobile market (all brands
                                                                                                  BALANCE SHEET
      combined) posted sales of more than 77,000 units, a 4% rise
      in relation to the previous year. The Renault, Dacia and                                    Gross outstandings                                           23,847            20,742
      Nissan brands totaled a 19.3% combined share of the market,                                 Allowance for impairment                                      (432)             (231)
      slightly down by 2.3 points on the previous year.                                           Net outstandings                                             23,415            20,511
                                                                                                  of which receivable from Dealers                             23,415            20,511
      The penetration rate on new vehicle sales stood at 54% for
      Renault, 47% for Dacia and 33% for Nissan.                                                  Available-for-sale securities                                     -             1,900
                                                                                                  Other assets                                                      382               495
      Average Dealer outstandings for the second year of business
                                                                                                  Debt                                                          22,753            22,110
      came to €25m.
                                                                                                  Other liabilities                                                494               593
      Pre-tax income came to €1.2m.                                                               Provisions                                                         -                 -
                                                                                                  Equity                                                            550               203
                                                                                                  BALANCE SHEET TOTAL                                          23,797            22,906

                                                                                                  INCOME STATEMENT
                                                                                                  Net banking income                                             2,335             1,793
                                                                                                  (excluding non-banking income)
                                                                                                  Pre-tax income                                                 1,237                658
                                                                                                  Net income                                                       877                403




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 39 -
                                                                                                                                                                                                                                                                                                                                                        EUROPE
                                                                                                                                                                                                                                                                                                                                                        GRUPO RCI ESPAÑA
                                                                                                                                                                                                                                                                                                                                                        Avenida de Burgos 89-A
                                                                                                                                                                                                                                                                                                                                                        28050 MADRID - SPAIN
                                                                                                                                                                                                                                                                                                                                                        Management: Gabriel GIL
                                                                                                                                                                                                                                                                                                                                                        Tel: +34 91 379 41 04
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                             S PA I N
                                                                                                                                                                                                                                                                                             Against a backdrop of economic and financial crisis, the
                                                                                                                                                                                                                                                                                             automobile market in Spain declined sharply, with 1.33 million
                                                                                                                                                                                                                                                                                                                                                                                         in thousands of euros (excluding rate and unit)              2008              2007
                                                                                                                                                                                                                                                                                             vehicles sold (30% down on 2007). Renault posted a market                                   Number of new contracts processed                           82,823           132,169
                                                                                                                                                                                                                                                                                             share of 9.7%, a fall of 0.4 points compared with 2007, while                               New Customer financings, net                             1,012,039         1,656,903
                                                                                                                                                                                                                                                                                             Nissan stood at 3.4% (a 0.5 points increase) and Dacia at
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET
                                                                                                                                                                                                                                                                                             0.5%.
                                                                                                                                                                                                                                                                                                                                                                                         Gross outstandings                                      3,042,893         3,858,092
                                                                                                                                                                                                                                                                                             RCI Banque Spain posted penetration rates of 46% on Renault                                 Allowance for impairment                                (194,768)         (119,594)
                                                                                                                                                                                                                                                                                             sales (down 5 points on 2007), 30% on Dacia sales (down                                     Net outstandings                                        2,848,125         3,738,498
                                                                                                                                                                                                                                                                                             6 points on 2007) and 25% on Nissan sales (down 6 points
                                                                                                                                                                                                                                                                                                                                                                                         of which receivable from Dealers                          498,701           690,393
                                                                                                                                                                                                                                                                                             on 2007).
                                                                                                                                                                                                                                                                                                                                                                                         Available-for-sale securities                              60,330             1,761
                                                                                                                                                                                                                                                                                             New financings fell from €1.66bn in 2007 to €1bn in 2008 and                                Other assets                                               120,078           133,929
                                                                                                                                                                                                                                                                                             average performing loan outstandings fell by 7% to €3.42bn.
                                                                                                                                                                                                                                                                                                                                                                                         Debt                                                     2,889,502         3,653,489
                                                                                                                                                                                                                                                                                             Net banking income fell by €17m compared with 2007.                                         Other liabilities                                           47,984            78,508
                                                                                                                                                                                                                                                                                                                                                                                         Provisions                                                   5,286             5,461
                                                                                                                                                                                                                                                                                             In this crisis environment, the cost of risk rose abruptly to                               Equity                                                       85,761          136,730
                                                                                                                                                                                                                                                                                             €85.6m in 2008 from €29.3m in 2007. To put a halt to this
                                                                                                                                                                                                                                                                                             trend, the underwriting policy has been heavily adjusted and                                BALANCE SHEET TOTAL                                     3,028,533         3,874,188
                                                                                                                                                                                                                                                                                             a “debt recovery” action plan implemented.
                                                                                                                                                                                                                                                                                                                                                                                         INCOME STATEMENT
                                                                                                                                                                                                                                                                                             The merger of the Retail Customer insurance operations within                               Net banking income                                         117,416           134,287
                                                                                                                                                                                                                                                                                             the branch marks the first stage of a policy to simplify and                                (excluding non-banking income)
                                                                                                                                                                                                                                                                                             streamline structures, which is expected to drive the
                                                                                                                                                                                                                                                                                             optimization of operating costs.                                                            Pre-tax income                                             (15,823)            62,393
                                                                                                                                                                                                                                                                                                                                                                                         Net income                                                  (9,371)            41,379
                                                                                                                                                                                                                                                                                             The pre-tax result was a loss of €15.8m.




                                                                                                                                                                                                                                                                                           - 40 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                              EUROPE
                                                                               RCI FINANCE S.A.
                                                                          Bergermoosstrasse 4
                                                                CH-8902 URDORF - SWITZERLAND
                                                                       Management: Manfred HEINDL
                                                                             Tel: +41 44 871 24 00




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     SWITZERLAND
     In an automobile market up by 1.5% with 311,830 new vehicle
     registrations, Renault saw a 2.7% increase in its registrations,
                                                                                                  in thousands of euros (excluding rate and unit)               2008              2007
     giving it a 5.8% share of the market (an increase of 0.1 points                              Exchange rate (year end)                                     1.4850            1.6547
     in comparison with 2007). Nissan’s market share held steady                                  Exchange rate (average)                                      1.5881            1.6402
     at 2.5%. Sales of Dacia vehicles increased by 70%, giving it a                               Number of new contracts processed                             9,541             8,927
     0.5% share of the market (0.3% in 2007).
                                                                                                  New Customer financings, net                                125,639           114,777
     In an intensely competitive environment, RCI Finance’s                                       BALANCE SHEET
     penetration rate came in at 27.1% on Renault sales and at                                    Gross outstandings                                          289,805           286,668
     18.5% on Nissan sales (28.8% and 16.2% respectively in
                                                                                                  Allowance for impairment                                     (8,727)           (7,239)
     2007).
     The penetration rate on Dacia sales increased sharply to                                     Net outstandings                                            281,078           279,429
     29.5% (21% in 2007). In all, RCI Finance booked 9,541 new                                    of which receivable from Dealers                              63,400            60,650
     vehicle finance contracts in 2008, a 6.9% increase compared                                  Available-for-sale securities                                 15,350            17,647
     with 2007.                                                                                   Other assets                                                   8,140             4,953
     Average performing Customer loan outstandings totaled                                        Debt                                                        248,880           240,775
     €206m, down by 3.1% on 2007. Average performing Dealer loan                                  Other liabilities                                            11,813            14,462
     outstandings increased by 24.3% to €82.5m.                                                   Provisions                                                      948             2,196
                                                                                                  Equity                                                        42,927            44,596
     Provisions for exceptional expenses had a substantial impact
     of -€5.3m on pre-tax income, which came to €0.4m.                                            BALANCE SHEET TOTAL                                         304,568           302,029

                                                                                                  INCOME STATEMENT
                                                                                                  Net banking income                                            10,847            11,706
                                                                                                  (excluding non-banking income)
                                                                                                  Pre-tax income                                                    406            4,867
                                                                                                  Net income                                                        791            3,650




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 41 -
                                                                                                                                                                                                                                                                                                                                                        EUROPE
                                                                                                                                                                                                                                                                                                                                                        RCI FS Ltd
                                                                                                                                                                                                                                                                                                                                                        Egale House
                                                                                                                                                                                                                                                                                                                                                        78 St Albans Road, Watford - WD17 1AF
                                                                                                                                                                                                                                                                                                                                                        UNITED KINGDOM
                                                                                                                                                                                                                                                                                                                                                        Management: Steve GOWLER
                                                                                                                                                                                                                                                                                                                                                        Tel: +44 1923 231 468
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                             UNITED KINGDOM
                                                                                                                                                                                                                                                                                             The year 2008 was marked by a strong slowdown in growth,
                                                                                                                                                                                                                                                                                             especially in the second half of the year. The unemployment
                                                                                                                                                                                                                                                                                                                                                                                        in thousands of euros (excluding rate and unit)               2008              2007
                                                                                                                                                                                                                                                                                             rate went up in comparison with 2007, and there was a                                      Exchange rate (year end)                                     0.9525            0.7334
                                                                                                                                                                                                                                                                                             dramatic fall in the value of sterling against the euro from                               Exchange rate (average)                                      0.7933            0.6831
                                                                                                                                                                                                                                                                                             1.36 at the end of 2007 to 1.05 at the end of 2008.                                        Number of new contracts processed                            67,649            74,120
                                                                                                                                                                                                                                                                                                                                                                                        New Customer financings, net                                730,041           733,741
                                                                                                                                                                                                                                                                                             Against this backdrop, the automobile market fell by 11.7%
                                                                                                                                                                                                                                                                                             (2.4 million vehicles) in comparison with 2007. Despite the                                BALANCE SHEET
                                                                                                                                                                                                                                                                                             fall in sales, Nissan’s share of the market increased (3.14%                               Gross outstandings                                       1,394,544         2,126,703
                                                                                                                                                                                                                                                                                             compared to 3% in 2007), mainly due to the successful
                                                                                                                                                                                                                                                                                                                                                                                        Allowance for impairment                                   (80,286)          (64,550)
                                                                                                                                                                                                                                                                                             Qashqai. Renault’s market share dropped to 4.43% from
                                                                                                                                                                                                                                                                                             5.41% in 2007.                                                                             Net outstandings                                         1,314,258         2,062,153
                                                                                                                                                                                                                                                                                                                                                                                        of which receivable from Dealers                            172,260           417,506
                                                                                                                                                                                                                                                                                             RCI Financial Services (RCI FS) wrote 67,649 new contracts in                              Available-for-sale securities                                30,193           552,598
                                                                                                                                                                                                                                                                                             2008, an 8.7% decrease compared with 2007. The penetration                                 Other assets                                                  56,689          144,509
                                                                                                                                                                                                                                                                                             rate, boosted by the success of the promotional campaign
                                                                                                                                                                                                                                                                                             run in the first quarter, increased for both Renault sales (up                             Debt                                                      1,209,440         2,448,397
                                                                                                                                                                                                                                                                                             by 5.3 points) and Nissan sales (up 3.1 points) to an overall                              Other liabilities                                            31,114            79,719
                                                                                                                                                                                                                                                                                             27.2%. The focus of the financing offer was on loyalty-                                    Provisions                                                      464             4,133
                                                                                                                                                                                                                                                                                             building products, which increased to more than 46% of the
                                                                                                                                                                                                                                                                                                                                                                                        Equity                                                      160,122           227,011
                                                                                                                                                                                                                                                                                             product mix.
                                                                                                                                                                                                                                                                                                                                                                                        BALANCE SHEET TOTAL                                      1,401,140         2,759,260
                                                                                                                                                                                                                                                                                             Average Customer loan outstandings fell by €121m compared
                                                                                                                                                                                                                                                                                             with 2007. The decrease in volumes recorded over 2008 and                                  INCOME STATEMENT
                                                                                                                                                                                                                                                                                             the fall in the value of sterling were not offset by the
                                                                                                                                                                                                                                                                                             consolidation of the Renault financing business from 1 July                                Net banking income                                            62,622            86,548
                                                                                                                                                                                                                                                                                             2007.                                                                                      (excluding non-banking income)
                                                                                                                                                                                                                                                                                             Average Dealer outstandings also fell in comparison with 2007                              Pre-tax income                                                15,710            25,342
                                                                                                                                                                                                                                                                                             (down by €57m) to €390m. This drop is directly linked to the                               Net income                                                     9,339            15,177
                                                                                                                                                                                                                                                                                             decrease in new vehicle registrations posted by both
                                                                                                                                                                                                                                                                                             manufacturers.

                                                                                                                                                                                                                                                                                             Net banking income slipped from 4.35% to 3.46% of average
                                                                                                                                                                                                                                                                                             outstandings, mainly because of the provision for residual
                                                                                                                                                                                                                                                                                             value due to the worsening situation on the used car market.

                                                                                                                                                                                                                                                                                             Pre-tax income came to €15.7m compared to €25.3m in 2007.
                                                                                                                                                                                                                                                                                             Part of this decrease (€2.5m) was due to the exchange rate
                                                                                                                                                                                                                                                                                             effect.




                                                                                                                                                                                                                                                                                           - 42 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                           EUROMED
                                                       RCI BANQUE - RCI FM
                       44 avenue khalid bnou el oualid, site VITA, Ain Sebaa
                                                     BP 13700 CASABLANCA
                                                                    MOROCCO
                                                                    Management: Laurent LAFFOND
                                                                          Tel: +212 22 34 97 82




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     MOROCCO
     In 2008, the economic situation in Morocco was marked by
     strong growth in gross domestic product (GDP), which
                                                                                                  in thousands of euros (excluding rate and unit)               2008              2007
     increased from 2.7% in 2007 to 6.8%. The inflation rate went                                 Exchange rate (year end)                                    11.2428                    -
     down from 3.8% to 3.1%.                                                                      Exchange rate (average)                                     11.3101                    -
                                                                                                  Number of new contracts processed                             6,786                    -
     The automobile market (all brands combined) increased by
                                                                                                  New Customer financings, net                                 47,845                    -
     17% in 2008 to 121,360 units sold, compared with 103,597
     in 2007. Imported vehicles accounted for 72% of all new                                      BALANCE SHEET
     vehicle registrations in 2008 compared with 70% in 2007,                                     Gross outstandings                                           73,541                    -
     while sales of locally assembled vehicles decreased to 28%
                                                                                                  Allowance for impairment                                      (694)                    -
     from 30% in 2007.
     The Renault and Dacia brands maintained their shares of the                                  Net outstandings                                             72,847                    -
     market at 16% and 12% respectively, while Nissan’s share                                     of which receivable from Dealers                             24,151                    -
     increased to 1.4%.                                                                           Available-for-sale securities                                 3,459                    -
                                                                                                  Other assets                                                   2,790                   -
     The country’s 2008 Budget put an end to the tax advantage
     concerning VAT on leases with a purchase option. The                                         Debt                                                          64,513                   -
     increase in the rate from 10% to 20% had a strong impact on                                  Other liabilities                                              3,721                   -
     the proportion of payments made in cash, to the detriment of                                 Provisions                                                         -                   -
     loan contracts.
                                                                                                  Equity                                                        10,862                   -
     Loan contracts account for 40% of Renault and Dacia sales.
     64% of those contracts are financed by RCI FM.                                               BALANCE SHEET TOTAL                                          79,096                    -

     In an environment marked by strong competition on customer                                   INCOME STATEMENT
     rates, RCI FM achieved an overall penetration rate of 19%
     (18% on Renault sales, 21% on Dacia sales and 13% on                                         Net banking income                                             3,599                   -
     Nissan sales). 6,786 new finance contracts were written and                                  (excluding non-banking income)
     new financing amounted to €47.8m.                                                            Pre-tax income                                                    908                  -
                                                                                                  Net income                                                        741                  -
     Loans to Dealers have grown considerably since the
     beginning of operations in December 2007, covering 60% of
     Renault and Dacia vehicle inventories and €10.6m worth of
     spare parts. End of month outstandings reached two peaks in
     July and December, at €19.7m and €24.2m respectively.

     Average performing loan outstandings (all businesses
     combined) stood at €33.7m.

     RCI FM posted pre-tax income of €0.9m.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 43 -
                                                                                                                                                                                                                                                                                                                                                        EUROMED
                                                                                                                                                                                                                                                                                                                                                        RCI Leasing Romania IFN S.A.
                                                                                                                                                                                                                                                                                                                                                        Bd. Aviatorilor, n° 41, etaj 3,
                                                                                                                                                                                                                                                                                                                                                        sector 1
                                                                                                                                                                                                                                                                                                                                                        BUCAREST - ROMANIA
                                                                                                                                                                                                                                                                                                                                                        Management: Philippe BUROS
                                                                                                                                                                                                                                                                                                                                                        Tel: +40 21 201 25 64
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                             ROMANIA
                                                                                                                                                                                                                                                                                             In difficult economic conditions, the automobile market
                                                                                                                                                                                                                                                                                             posted a drop of almost 12%, with 310,244 new vehicle
                                                                                                                                                                                                                                                                                                                                                                                         in thousands of euros (excluding rate and unit)              2008              2007
                                                                                                                                                                                                                                                                                             registrations.                                                                              Exchange rate (year end)                                    4.0225            3.6077
                                                                                                                                                                                                                                                                                                                                                                                         Exchange rate (average)                                     3.6840            3.3379
                                                                                                                                                                                                                                                                                             In a highly competitive environment, the combined market                                    Number of new contracts processed                           34,535            43,438
                                                                                                                                                                                                                                                                                             share of Renault, Dacia and Nissan fell to 35.6% from 39.2%
                                                                                                                                                                                                                                                                                                                                                                                         New Customer financings, net                               140,358           138,497
                                                                                                                                                                                                                                                                                             in 2007.
                                                                                                                                                                                                                                                                                                                                                                                         BALANCE SHEET
                                                                                                                                                                                                                                                                                             The penetration rate remained stable (31% compared to 31.4%                                 Gross outstandings                                         260,321           218,935
                                                                                                                                                                                                                                                                                             in 2007), representing 32.7% of Dacia sales, 27.9% of Renault
                                                                                                                                                                                                                                                                                                                                                                                         Allowance for impairment                                    (4,643)           (3,248)
                                                                                                                                                                                                                                                                                             sales and 10.2% of Nissan sales.
                                                                                                                                                                                                                                                                                                                                                                                         Net outstandings                                           255,678           215,687
                                                                                                                                                                                                                                                                                             The total number of finance contracts fell to 34,535 units                                  of which receivable from Dealers                              3,596               826
                                                                                                                                                                                                                                                                                             from 43,438 in 2007.                                                                        Available-for-sale securities                                24,477             9,300
                                                                                                                                                                                                                                                                                             This fall was mainly focused on loan contracts                                              Other assets                                                  4,215             1,153
                                                                                                                                                                                                                                                                                             (14,700 applications in 2008 compared to 24,158 in 2007).
                                                                                                                                                                                                                                                                                             On the other hand, the leasing business grew by 4%                                          Debt                                                       251,131           199,416
                                                                                                                                                                                                                                                                                             (19,722 units in 2008 compared with 19,098 in 2007)                                         Other liabilities                                            7,490             2,800
                                                                                                                                                                                                                                                                                             following a number of promotional campaigns.                                                Provisions                                                       -                 -
                                                                                                                                                                                                                                                                                                                                                                                         Equity                                                       25,749            23,924
                                                                                                                                                                                                                                                                                             Average performing loan outstandings amounted to €232.7m
                                                                                                                                                                                                                                                                                             in 2008, up 39% from the previous year. This increase is                                    BALANCE SHEET TOTAL                                        284,370           226,140
                                                                                                                                                                                                                                                                                             attributable to the increase in the contribution made by
                                                                                                                                                                                                                                                                                             leasing and the lengthening of the average contract term.                                   INCOME STATEMENT

                                                                                                                                                                                                                                                                                             Pre-tax income came to €16.6m.                                                              Net banking income                                           25,175            22,214
                                                                                                                                                                                                                                                                                                                                                                                         (excluding non-banking income)
                                                                                                                                                                                                                                                                                                                                                                                         Pre-tax income                                               16,640            15,305
                                                                                                                                                                                                                                                                                                                                                                                         Net income                                                   13,952            13,063




                                                                                                                                                                                                                                                                                           - 44 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                            AMERICA
                                                               RCI BANQUE - Sucursal Argentina
                                                               Fray Justo Sta Maria de Oro 1744
                                                                      (C1414DBB) BUENOS AIRES
                                                                                      ARGENTINA
                                                             Management: Stéphane STOUFFLET
                                                                      Tel: +54 11 4778 2134




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     ARGENTINA
     In 2008, economic activity in Argentina was affected by
     various crises. The dispute with the agricultural sector in the
                                                                                                  in thousands of euros (excluding rate and unit)               2008              2007
     first half-year and the general liquidity crisis from the second                             Exchange rate (year end)                                      4.7777            4.6062
     half of the year onwards, made worse in October by the                                       Exchange rate (average)                                       4.6208            4.2436
     nationalization of private pension funds, generated a crisis of                              Number of new contracts processed                             15,796            18,315
     confidence, devaluation, a sharp increase in interest rates
                                                                                                  New Customer financings, net                                  79,104            87,132
     and shorter loan terms.
                                                                                                  BALANCE SHEET
     Despite this context, the automobile market grew by 8% to                                    Gross outstandings                                          158,097           137,369
     575,000 vehicles sold. Renault’s share of the market slipped
                                                                                                  Allowance for impairment                                     (3,887)           (3,029)
     by 0.5 points to 12%, while Nissan’s grew to over 1%, thanks
     to the launch of two new vehicles.                                                           Net outstandings                                            154,210           134,340
                                                                                                  of which receivable from Dealers                              41,026            36,850
     The overall penetration rate fell by 5 points (17.2% in 2008                                 Available-for-sale securities                                 17,198            15,491
     compared to 22.3% in 2007), reflecting the tougher business                                  Other assets                                                  12,644             3,361
     policy stance adopted in reaction to increasingly scarce
     liquidity.                                                                                   Debt                                                        128,403           115,562
                                                                                                  Other liabilities                                            16,923            12,683
     New financing amounted to €79.1m, down by 9% (1% in                                          Provisions                                                       61                 -
     foreign currency) compared with the year 2007.
                                                                                                  Equity                                                        38,665            24,947
     For all segments combined, average performing loan                                           BALANCE SHEET TOTAL                                         184,052           153,192
     outstandings increased from €116m in 2007 to €146.7m
     in 2008.                                                                                     INCOME STATEMENT
     Customer loan outstandings increased by 34% (from €82.8m
     in 2007 to €110.6m).                                                                         Net banking income                                            16,574             8,042
     Average performing Dealer loan outstandings increased by                                     (excluding non-banking income)
     9% to €36.1m from €33.2m in 2007.                                                            Pre-tax income                                                11,242             4,163
                                                                                                  Net income                                                     5,535             2,030
     In 2008, loan underwriting conditions were strengthened and
     the recovery process optimized, bringing the cost of customer
     risk to a controlled level (0.59% of average performing loan
     outstandings).

     A new issue of notes was launched in 2008 (series 5). The
     program has a ceiling of €88m (ARS400m) and amounted to
     €32m at year-end 2008.
     It has received an raAA- rating from FitchRatings and an raA-
     rating from Standard & Poor’s.

     Pre-tax income came to €11.2m, compared with €4.2m in
     2007. This increase was due in part to the consolidation of
     the Courtage SA insurance company at the start of 2008
     (+€1.6m).




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 45 -
                                                                                                                                                                                                                                                                                                                                                        AMERICA
                                                                                                                                                                                                                                                                                                                                                        Financeira RENAULT BRASIL
                                                                                                                                                                                                                                                                                                                                                        c/o RENAULT DO BRASIL S.A.
                                                                                                                                                                                                                                                                                                                                                        Rua Pasteur, 463, - Conjunto 203/204 Batel
                                                                                                                                                                                                                                                                                                                                                        80 250 080 CURITIBA - BRAZIL
                                                                                                                                                                                                                                                                                                                                                        Management: Alain BALLU
                                                                                                                                                                                                                                                                                                                                                        Tel: +55 41 3025 1505
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                             BRAZIL
                                                                                                                                                                                                                                                                                             Brazil’s GDP grew from 4.8% in 2007 to 5.6% in 2008,
                                                                                                                                                                                                                                                                                             underpinned by the country’s trade surplus, although
                                                                                                                                                                                                                                                                                                                                                                                        in thousands of euros (excluding rate and unit)               2008              2007
                                                                                                                                                                                                                                                                                             inflation rose to 5.9% (4.4% in 2007). The impact of the                                   Exchange rate (year end)                                     3.2436            2.6140
                                                                                                                                                                                                                                                                                             international financial crisis drove the government and the                                Exchange rate (average)                                      2.6783            2.6628
                                                                                                                                                                                                                                                                                             Central Bank to take steps to control liquidity problems. In                               Number of new contracts processed                            31,216            28,081
                                                                                                                                                                                                                                                                                             this context, the country risk deteriorated.
                                                                                                                                                                                                                                                                                                                                                                                        New Customer financings, net                                281,865           278,256
                                                                                                                                                                                                                                                                                             With more than 2.6 million new vehicle registrations, the                                  BALANCE SHEET
                                                                                                                                                                                                                                                                                             automobile market posted strong growth in 2008, up 13.7%.                                  Gross outstandings                                           515,868          566,752
                                                                                                                                                                                                                                                                                             The launch of new and appropriate models for the market
                                                                                                                                                                                                                                                                                                                                                                                        Allowance for impairment                                    (32,375)         (33,607)
                                                                                                                                                                                                                                                                                             (Sandero, Stepway) helped Renault become the sixth biggest
                                                                                                                                                                                                                                                                                             car manufacturer in the country, with a market share of 4.3%                               Net outstandings                                            483,493          533,145
                                                                                                                                                                                                                                                                                             (3.1% in 2007). Nissan’s market share increased from 0.5%                                  of which receivable from Dealers                             160,862          175,959
                                                                                                                                                                                                                                                                                             to 0.7%.                                                                                   Available-for-sale securities                                 47,579            5,796
                                                                                                                                                                                                                                                                                                                                                                                        Other assets                                                  18,685            18,059
                                                                                                                                                                                                                                                                                             The automobile finance market also posted strong growth
                                                                                                                                                                                                                                                                                             (up 27%), with competitive pressure stimulated by the                                      Debt                                                        324,007           462,980
                                                                                                                                                                                                                                                                                             consolidation of the banking sector. Leasing, which grew by                                Other liabilities                                           106,188            52,091
                                                                                                                                                                                                                                                                                             more than 50%, was the preferred method of financing                                       Provisions                                                    1,427             1,219
                                                                                                                                                                                                                                                                                             because of the related tax advantages.
                                                                                                                                                                                                                                                                                                                                                                                        Equity                                                      118,135             40,710
                                                                                                                                                                                                                                                                                             RCI Banque’s penetration rate was 22.6% on Renault sales                                   BALANCE SHEET TOTAL                                         549,757           557,000
                                                                                                                                                                                                                                                                                             and 20.9% on Nissan sales. 31,216 new contracts were
                                                                                                                                                                                                                                                                                             financed over the year, for a total of €282m in new financing.                             INCOME STATEMENT

                                                                                                                                                                                                                                                                                             Average Customer loan outstandings increased by 9%                                         Net banking income                                            49,463            34,062
                                                                                                                                                                                                                                                                                             (excluding the exchange rate effect), because of an increase                               (excluding non-banking income)
                                                                                                                                                                                                                                                                                             in the average amount financed and the lengthening of loan                                 Pre-tax income                                                31,879            15,067
                                                                                                                                                                                                                                                                                             terms. The increase in sales by car makers drove a 50%                                     Net income                                                    13,332             6,919
                                                                                                                                                                                                                                                                                             increase in average Dealer loan outstandings.

                                                                                                                                                                                                                                                                                             RCI Brazil’s pre-tax income rose to €31.9m (up €16.8m
                                                                                                                                                                                                                                                                                             compared with 2007), due to the growth in outstandings,
                                                                                                                                                                                                                                                                                             optimization of refinancing costs and improved control over
                                                                                                                                                                                                                                                                                             risk.




                                                                                                                                                                                                                                                                                           - 46 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                       ASIA
                                                                RCI FINANCIAL SERVICES - KOREA
                                                                       15th Floor, Woori Building,
                                                               10, 1ga Bongrae-Dong – Jung-gu
                                                                SÉOUL 100-161 - SOUTH KOREA
                                                               Management: Dominique SIGNORA
                                                                       Tel: +82 2 20 21 55 01




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     SOUTH KOREA
     In South Korea, the 3.7% growth in GDP reflects a year of
     contrast. The economy posted sustained growth during the
                                                                                                  in thousands of euros (excluding rate and unit)               2008              2007
     first half-year, but was then hit particularly hard by the global                            Exchange rate (year end)                                1,839.1300        1,377.9600
     financial crisis because of its strong dependence on exports                                 Exchange rate (average)                                 1,605.8989        1,273.3588
     and foreign sources of funds; the value of the Won fell by                                   Number of new contracts processed                           39,567            31,916
     33% against the Euro.
                                                                                                  New Customer financings, net                               462,785           386,952
     In 2008, the automobile market posted a drop of 4% relative                                  BALANCE SHEET
     to 2007, with 1.2 million units sold. Against this backdrop,                                 Gross outstandings                                          462,506           336,489
     Renault Samsung Motors recorded a market share of 8.5%,
                                                                                                  Allowance for impairment                                     (5,516)           (2,573)
     a 0.8 points decrease in comparison with 2007.
     To boost its offering, in November the Nissan Group launched                                 Net outstandings                                            456,990           333,916
     the Nissan brand, adding to the Infiniti brand already present                               of which receivable from Dealers                                   -                 -
     in the country. New Nissan Group vehicle registrations rose by                               Available-for-sale securities                                 31,788            21,334
     14% in 2008 to 3,426 units.                                                                  Other assets                                                  81,919            39,003
     In 2008, RCI Financial Services Korea recorded substantial                                   Debt                                                        436,266           299,933
     growth in its penetration rate, achieving 36.8% on new                                       Other liabilities                                            12,962            29,701
     registrations overall, of which 36.5% were on Renault                                        Provisions                                                      494               403
     Samsung Motors sales and 45.3% on sales of the Infiniti and
                                                                                                  Equity                                                      120,975             64,217
     Nissan brands.
     With 39,567 vehicle finance contracts written during its third                               BALANCE SHEET TOTAL                                         570,697           394,254
     year in business (up 24% compared with 2007), in 2008
     RCI Financial Services Korea pressed ahead with its strategy                                 INCOME STATEMENT
     to gradually conquer the market, underpinned by an
     ambitious “product” policy and stronger cooperation with car                                 Net banking income                                            20,147            14,587
     makers.                                                                                      (excluding non-banking income)
                                                                                                  Pre-tax income                                                10,088             4,774
     Average performing loan outstandings increased by €153m                                      Net income                                                     7,314             3,461
     compared with 2007, amounting to €401m.

     Pre-tax income came to €10.1m (€4.8m in 2007), driven by
     the fact that margins held up well and the cost of risk and
     operating expenses were kept under control.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 47 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             AUDITOR’S REPORT


                                                                                                                                                                                                                                                                                                                                         DELOITTE & ASSOCIÉS                                                                     ERNST & YOUNG AUDIT
                                                                                                                                                                                                                                                                                                                                       185, avenue Charles-de-Gaulle - BP 136                                                   Faubourg de l’Arche - 11, allée de l’Arche
                                                                                                                                                                                                                                                                                                                                            92524 Neuilly-sur-Seine Cedex                                                            92037 Paris-La Défense Cedex
                                                                                                                                                                                                                                                                                                                                          S.A. with share capital €1,723,040                                                           S.A.S. with variable capital
                                                                                                                                                                                                                                                                                                                                          Statutory Auditor                                                                        Statutory Auditor
                                                                                                                                                                                                                                                                                                                               Member, Compagnie Régionale de Versailles                                                Member, Compagnie Régionale de Versailles


                                                                                                                                                                                                                                                                                                                             RCI Banque                                                                               INFORMATION CONCERNING THE INTERNAL
                                                                                                                                                                                                                                                                                                                             Year ended 31 December 2008                                                              CONTROL PROCEDURES RELATING TO
                                                                                                                                                                                                                                                                                                                                                                                                                      THE PREPARATION AND PROCESSING OF
                                                                                                                                                                                                                                                                                                                             Statutory Auditors’ report, prepared in                                                  FINANCIAL AND ACCOUNTING INFORMATION
                                                                                                                                                                                                                                                                                                                             accordance with Article L. 225-235 of the
                                                                                                                                                                                                                                                                                                                             Code de Commerce (French Commercial Code),                                               Professional guidelines and standards require us to perform
                                                                                                                                                                                                                                                                                                                                                                                                                      certain audit procedures to assess the fairness of the
                                                                                                                                                                                                                                                                                                                             on the report prepared by the Chairman of
                                                                                                                                                                                                                                                                                                                                                                                                                      information set out in the Chairman’s report on this subject.
                                                                                                                                                                                                                                                                                                                             the Board of RCI Banque                                                                  These procedures consist, inter alia, in:
                                                                                                                                                                                                                                                                                                                                                                                                                      • Obtaining an understanding of the internal control
                                                                                                                                                                                                                                                                                                                                                                                                                        procedures relating to the preparation and processing of
                                                                                                                                                                                                                                                                                                                             To the Shareholders,                                                                       the financial and accounting information underlying the
                                                                                                                                                                                                                                                                                                                                                                                                                        Chairman’s report as well as existing documents;
                                                                                                                                                                                                                                                                                                                             In our capacity as statutory auditors of RCI Banque and in
                                                                                                                                                                                                                                                                                                                             accordance with Article L. 225‑235 of the Commercial Code,                               • Obtaining an understanding of the work leading to the
                                                                                                                                                                                                                                                                                                                             we present herewith our report on the report prepared by the                               preparation of this information and existing documents;
                                                                                                                                                                                                                                                                                                                             Chairman of your company in accordance with Article
                                                                                                                                                                                                                                                                                                                                                                                                                      • Determining whether any major internal control
                                                                                                                                                                                                                                                                                                                             L. 225‑37 of that Code for the year ended 31 December 2008.                                weaknesses relevant to the preparation and processing of
                                                                                                                                                                                                                                                                                                                                                                                                                        the financial and accounting information that we might
                                                                                                                                                                                                                                                                                                                             It is for the Chairman to prepare and submit for the approval
                                                                                                                                                                                                                                                                                                                                                                                                                        have recorded during our audit are covered by appropriate
                                                                                                                                                                                                                                                                                                                             of the Board of Directors a report on the internal control and
                                                                                                                                                                                                                                                                                                                                                                                                                        information in the Chairman’s report.
                                                                                                                                                                                                                                                                                                                             risk management procedures put in place within the
                                                                                                                                                                                                                                                                                                                             company and providing the other information required
                                                                                                                                                                                                                                                                                                                                                                                                                      On the basis of these procedures, we have no observations
                                                                                                                                                                                                                                                                                                                             by Article L. 225-37 of the Code de Commerce (French
                                                                                                                                                                                                                                                                                                                                                                                                                      to make in connection with the information given on the
                                                                                                                                                                                                                                                                                                                             Commercial Code), especially concerning the corporate
                                                                                                                                                                                                                                                                                                                                                                                                                      Company’s internal control procedures relating to the
                                                                                                                                                                                                                                                                                                                             governance system.
                                                                                                                                                                                                                                                                                                                                                                                                                      preparation and processing of financial and accounting
                                                                                                                                                                                                                                                                                                                                                                                                                      information in the report of the Chairman of the Board,
                                                                                                                                                                                                                                                                                                                             IT IS OUR RESPONSIBILITY                                                                 prepared in accordance with Article L. 225-37 of the French
                                                                                                                                                                                                                                                                                                                             • To report to you any observations called for on our part                               Commercial Code.
                                                                                                                                                                                                                                                                                                                               regarding the information contained in the Chairman’s
                                                                                                                                                                                                                                                                                                                               report on the internal control procedures relating to the                              OTHER INFORMATION
                                                                                                                                                                                                                                                                                                                               preparation and processing of financial and accounting
                                                                                                                                                                                                                                                                                                                               information, and                                                                       We certify that the Chairman of the Board of Directors’ report
                                                                                                                                                                                                                                                                                                                                                                                                                      contains the other information required by Article L. 225‑37
                                                                                                                                                                                                                                                                                                                             • To certify that the said report includes                            the other          of the French Commercial Code.
                                                                                                                                                                                                                                                                                                                               information required by Article L. 225‑37 of                      the French
                                                                                                                                                                                                                                                                                                                               Commercial Code, it being specified that it                        is not our
                                                                                                                                                                                                                                                                                                                               responsibility to verify the sincerity of                         that other           Neuilly-sur-Seine & Paris-La Défense, 17 February 2009
                                                                                                                                                                                                                                                                                                                               information.
                                                                                                                                                                                                                                                                                                                                                                                                                      The Statutory Auditors
                                                                                                                                                                                                                                                                                                                             We have performed our review in accordance with the                                      DELOITTE & ASSOCIÉS                                 ERNST & YOUNG AUDIT
                                                                                                                                                                                                                                                                                                                             professional guidelines applicable in France.                                            Damien Leurent                                          Micha Missakian




                                                                                                                                                                                                                                                                                                                           - 48 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              FINANCIAL SECURITY ACT




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              REPORT OF THE CHAIRMAN OF THE BOARD
              Since 2007, the recommendation issued by the Autorité des                                 I. THE GENERAL CONTROL AND
              Marchés Financiers (AMF, French Financial Markets Authority)
              has been applicable to Chairmen’s Reports on internal                                     OVERSIGHT ENVIRONMENT AT
              control procedures, for all companies making public issues                                THE RCI BANQUE GROUP
              of securities.
                                                                                                        This Report describes the following, in the order given:
              The general principles of this recommendation consist in the                              • the components of the Renault group’s internal control
              implementation of the AMF reference framework, completed                                    system,
              by the application guidelines on the internal control of                                  • monitoring of the main risks,
              accounting and financial information.                                                     • information systems appropriate to the challenges posed
                                                                                                          by oversight and control,
              This recommendation has not been applied for this report.
                                                                                                        • the players and operations involved in control.
              The RCI Banque group’s internal control system is organized
              in accordance with French regulations on banking and
              finance, in particular CRBF Regulation 97-02. The system is                               I.1 THE COMPONENTS OF THE INTERNAL
              an ongoing process implemented by the Board of Directors,                                 CONTROL SYSTEM
              management and staff of RCI Banque.
                                                                                                        I.1.1 An appropriate organization
              The purposes of the internal control system are to:
              • Preserve the capital and asset value of the Company.                                    The RCI Banque group is organized into divisions that bring
                                                                                                        together entities in similar lines of business, geographic
              • Limit the effects of uncontrollable variations in business                              sectors or both. Overall consistency and coordination are
                activity and anticipate their impact.                                                   provided by a system of oversight based on two structural
              • Ensure compliance with applicable laws and regulations.                                 principles, hierarchical and functional:

              • Keep the governing bodies and the Board informed of risks,                              A hierarchical organization
                and the level at which they are mastered.
                                                                                                        • the Executive Committee, as the body in charge of
              • Generate fair and reliable accounting and financial                                       managing the RCI Banque group, directs the group’s policy
                information.                                                                              and strategy,
                                                                                                        • the Management Committees implement the actions
              As with any control system, however, it cannot provide an
                                                                                                          needed to meet the objectives set by the Executive
              absolute guarantee that risk is completely eliminated. The
                                                                                                          Committee.
              system in place is aimed at reducing the probability of risk
              occurrence through the implementation of appropriate action
                                                                                                        A functional organization
              and prevention plans.
                                                                                                        The functional departments play the role of “technical
              This report provides an overview of the internal control                                  parent” for the following purposes:
              procedures by describing, in the following order:                                         • establishing specific policies and rules of operation for IT
              • the general control and oversight environment at the                                      systems, human resources, financial policy, credit risk
                RCI Banque group,                                                                         management, etc.
              • the special-purpose organization that oversees the                                      • providing the operational departments with support and
                preparation of accounting and financial information.                                      ensuring that established policies are implemented as they
                                                                                                          should be by those departments.
              This report was examined and approved by the Board of                                     The group instituted standardized process mapping in 2004,
              Directors during its meeting of 4 February 2009.                                          which is updated every year.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 49 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             FINANCIAL SECURITY ACT




                                                                                                                                                                                                                                                                                                                             I.1.2 Clearly defined responsibilities and                                               I.1.3 Procedures or operating processes
                                                                                                                                                                                                                                                                                                                             delegation of power
                                                                                                                                                                                                                                                                                                                                                                                                                      In accordance with CRBF Regulation 97-02, the RCI Banque
                                                                                                                                                                                                                                                                                                                             These operating principles are supplemented by a system of                               group has developed a general system of procedures. The
                                                                                                                                                                                                                                                                                                                                                                                                                      procedures applicable within the RCI Banque group are
                                                                                                                                                                                                                                                                                                                             delegation that controls deployment of group policies at the
                                                                                                                                                                                                                                                                                                                                                                                                                      based on a reference document (Procedure for procedures)
                                                                                                                                                                                                                                                                                                                             basic operational level. Areas of responsibility and delegated
                                                                                                                                                                                                                                                                                                                                                                                                                      and are available on the RCI Banque Intranet and other
                                                                                                                                                                                                                                                                                                                             authority are determined as follows:                                                     centralized media accessible to all users within the group.

                                                                                                                                                                                                                                                                                                                             Definition of functions                                                                  A new software tool for managing and updating the
                                                                                                                                                                                                                                                                                                                                                                                                                      procedures has been up and running for all users in France
                                                                                                                                                                                                                                                                                                                             The organization of the group is set out in an official
                                                                                                                                                                                                                                                                                                                                                                                                                      and the centralized support functions since 1 December
                                                                                                                                                                                                                                                                                                                             organization chart. Responsibilities are defined at each level
                                                                                                                                                                                                                                                                                                                                                                                                                      2007. In the long run, this tool, which is used to centralize
                                                                                                                                                                                                                                                                                                                             of the organization, with the scope and limits of each                                   the procedures and check their completeness, will be made
                                                                                                                                                                                                                                                                                                                             individual’s responsibilities defined in a job description.                              available to all staff concerned in all subsidiaries; they will
                                                                                                                                                                                                                                                                                                                                                                                                                      thus have access to their subsidiary’s procedures and those
                                                                                                                                                                                                                                                                                                                             Delegation of power                                                                      of the group via a single tool.
                                                                                                                                                                                                                                                                                                                             The decision-making process within the RCI Banque group                                  The main business processes within RCI Banque –
                                                                                                                                                                                                                                                                                                                             is based on a system for delegating powers from the                                      acceptance, collections and delinquencies, refinancing,
                                                                                                                                                                                                                                                                                                                             Chairman on down, to meet two objectives:                                                system security, physical asset security, risk monitoring,
                                                                                                                                                                                                                                                                                                                                                                                                                      accounting, etc. – are covered by procedures based on the
                                                                                                                                                                                                                                                                                                                             • facilitate empowerment and accountability of line
                                                                                                                                                                                                                                                                                                                                                                                                                      principle of separation of powers. They establish channels
                                                                                                                                                                                                                                                                                                                               personnel,
                                                                                                                                                                                                                                                                                                                                                                                                                      for recommendations and approvals and ensure that
                                                                                                                                                                                                                                                                                                                             • ensure that commitments are made at the appropriate                                    decisions are made at the appropriate level with
                                                                                                                                                                                                                                                                                                                               level.                                                                                 appropriately implemented controls.
                                                                                                                                                                                                                                                                                                                                                                                                                      This applies to the Internal Procedure Memoranda process
                                                                                                                                                                                                                                                                                                                             The system sets precise boundaries by level on the scope                                 and to the Investment Project Contract process for financial
                                                                                                                                                                                                                                                                                                                             of decisions that line personnel are authorized to make. It                              commitments and investments.
                                                                                                                                                                                                                                                                                                                             serves as a benchmark by which those conducting the
                                                                                                                                                                                                                                                                                                                             second-level and third-level internal controls can                                       In accordance with CRBF Regulation 97-02, the RCI Banque
                                                                                                                                                                                                                                                                                                                             subsequently verify proper application.                                                  group has two systems that were remodeled in 2008:

                                                                                                                                                                                                                                                                                                                             The system includes a set of limits for financial and credit                             • a compliance control system integrated into the
                                                                                                                                                                                                                                                                                                                                                                                                                        operational risk management system, and a mechanism
                                                                                                                                                                                                                                                                                                                             risks established with the approval of the Renault Group.
                                                                                                                                                                                                                                                                                                                                                                                                                        for monitoring the effective implementation of action plans,
                                                                                                                                                                                                                                                                                                                             These limits are set out in periodically updated Internal
                                                                                                                                                                                                                                                                                                                                                                                                                        overseen by:
                                                                                                                                                                                                                                                                                                                             Procedure Memoranda. For financial risks, foreign exchange
                                                                                                                                                                                                                                                                                                                             instruments, interest rate instruments and currencies                                       - a framework procedure for compliance control, adopted
                                                                                                                                                                                                                                                                                                                             approved for use in managing market risks are specified on                                    as a local procedure by each affiliate during the second
                                                                                                                                                                                                                                                                                                                                                                                                                           half of 2008. This includes a definition of the approval
                                                                                                                                                                                                                                                                                                                             a list approved by RCI Banque’s Finance Committee.
                                                                                                                                                                                                                                                                                                                                                                                                                           procedures for new products, the channels used to
                                                                                                                                                                                                                                                                                                                             Likewise, for credit risks, the Credit Risk Committee reviews
                                                                                                                                                                                                                                                                                                                                                                                                                           monitor regulatory developments, and the persons
                                                                                                                                                                                                                                                                                                                             and validates the ways in which these powers have been                                        responsible for that monitoring. It has also integrated
                                                                                                                                                                                                                                                                                                                             delegated within the group and its affiliates. The RCI Banque                                 the risk of non-compliance into the operational risk
                                                                                                                                                                                                                                                                                                                             group’s bond issuance and securitization transactions are                                     management system, introduced six-monthly reporting
                                                                                                                                                                                                                                                                                                                             subject to explicit Board of Director delegations of power.                                   on the compliance of new products for the attention of




                                                                                                                                                                                                                                                                                                                           - 50 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                    the group compliance control officer and introduced a                               I.2 MONITORING OF THE MAIN RISKS
                    whistleblowing system,
                 - a compliance committee: each quarter, in line with the                               RCI Banque has developed an internal control mechanism
                   internal control committees and operational risk                                     aimed firstly at listing and analyzing the main identifiable
                   committees, the internal controller presents forthcoming                             risks with respect to the company’s objectives, and
                   regulatory changes, actions to be implemented and                                    secondly, at ensuring the existence of procedures for
                   those that are in progress; he gives the management                                  managing such risks and monitoring corrective and
                   committee an overview of the company’s level of                                      preventives measures, so as to reduce the probability of risk
                   compliance, and ensures the traceability of decisions                                occurrence.
                   taken ;
                                                                                                        I.2.1 Internal control system assessment
              • a control system for outsourced activities. This system
                entails identifying essential or major outsourced services,                             The RCI Banque group currently uses the following tools to
                inserting model clauses into service agreements,                                        evaluate its internal control system:
                monitoring business indicators, holding steering committee                              • operational risk mapping, which reveals how efficiently
                meetings, auditing outsourced services and gradually                                      risk is being managed. This tool is part of the operational
                including providers of essential services within the scope                                risk management system,
                of the second-level ongoing control system.                                             • oversight and assessment of the internal control
                                                                                                          system in the affiliates. Each internal controller is
              I.1.4 Three-year plan and                                                                   responsible for detailed objectives, which are monitored at
              the Budgeting/Forecasting/Reporting process                                                 least every quarter by Group Internal Control. Specific
                                                                                                          reporting is used to ensure that each system is properly
              Based on the objectives and directives set by senior                                        implemented in the affiliate, and that available resources
              management and on economic forecasts (macroeconomic                                         are used in accordance with the group’s expectations.
              indicators, exchange rates, pricing, markets), each group                                   Affiliate and Group Internal Control Committees are given
              entity prepares a plan for the next three years that includes:                              qualitative and quantitative feedback on achievements and
                                                                                                          performance levels.
              • an action plan describing how it will fulfill its contribution
                to meeting objectives,                                                                  I.2.2 Risk management
              • a quantitative projection of its real economic and financial
                                                                                                        Financial and credit risks, and the methods used to manage
                indicators.
                                                                                                        and control them, which follow the same organizational
                                                                                                        principles outlined above, are described in detail in
              This procedure is repeated annually as part of a rolling
                                                                                                        Appendices 1, 2 and 4 hereto, which feature extracts from
              three-year plan. The group consolidates the input from the
                                                                                                        the sections of the group’s annual report dealing with
              different entities, which enables it to check the financial                               “Financial Risks”, “Basel II” and “Adapting to the financial
              results stemming from the plan for consistency with the                                   crisis”.
              profitability and balance sheet targets set by senior
              management, and to take corrective steps if needed.                                       The operational risk management system implemented by
                                                                                                        the RCI Banque group consists of the following three
              Budget development and organization of the forecast                                       components:
              updating and reporting processes are based on rules and
              tools to ensure that management receives reliable, usable                                 • Operational risk mapping
              information broken down by business segment (Retail,                                      Identifies major operational risks for assessment and
              Corporate, and Dealer).                                                                   management purposes.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 51 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             FINANCIAL SECURITY ACT




                                                                                                                                                                                                                                                                                                                             Operational risk mapping is used in all consolidated affiliates                          This procedure, which establishes the model system
                                                                                                                                                                                                                                                                                                                             of the RCI Banque group. It is updated annually.                                         that applies throughout the group, mainly covers:
                                                                                                                                                                                                                                                                                                                                                                                                                      • the general internal control oversight system,
                                                                                                                                                                                                                                                                                                                             • The incident database
                                                                                                                                                                                                                                                                                                                             Establishes databases to gather data on operational risk                                 • the systems used locally by subsidiaries and affiliates,
                                                                                                                                                                                                                                                                                                                             incidents, introduce the requisite corrective and preventive                               branches and joint ventures,
                                                                                                                                                                                                                                                                                                                             action, and produce oversight and management reports.                                    • the specific systems used in different functional areas.

                                                                                                                                                                                                                                                                                                                             Collection of incident data began in 2006 for a first group of                           The overall internal control system of the RCI Banque
                                                                                                                                                                                                                                                                                                                                                                                                                      group therefore comprises two types of control and
                                                                                                                                                                                                                                                                                                                             affiliates and was then extended in 2007 to all affiliates.
                                                                                                                                                                                                                                                                                                                                                                                                                      three levels at which controls are applied:
                                                                                                                                                                                                                                                                                                                             The standard of collection made considerable progress in
                                                                                                                                                                                                                                                                                                                             2008, but is still a key area of work for the years to come.                             • Permanent control:
                                                                                                                                                                                                                                                                                                                                                                                                                         T First-level control:
                                                                                                                                                                                                                                                                                                                             • Key risk indicators                                                                       First-level controls consist of the self-monitoring
                                                                                                                                                                                                                                                                                                                             Establishes leading indicators of operational risk, gathers                                 procedures followed by each department and each
                                                                                                                                                                                                                                                                                                                                                                                                                         geographical unit. These entities are responsible for
                                                                                                                                                                                                                                                                                                                             data for these indicators and produces oversight and
                                                                                                                                                                                                                                                                                                                                                                                                                         applying existing procedures in their respective field of
                                                                                                                                                                                                                                                                                                                             management reports.
                                                                                                                                                                                                                                                                                                                                                                                                                         operations, and for performing all controls specified by
                                                                                                                                                                                                                                                                                                                                                                                                                         those procedures. First-level control is primarily
                                                                                                                                                                                                                                                                                                                             Key risk indicators exist for the “Dealer credit”,                                          operational control performed by process owners. Training
                                                                                                                                                                                                                                                                                                                             “Refinancing”, “Logistics”, “Accounting” and “Corporate and                                 for all process owners in 2008, within each affiliate, is
                                                                                                                                                                                                                                                                                                                             Retail Customer” processes.                                                                 expected to substantially improve the effectiveness of the
                                                                                                                                                                                                                                                                                                                                                                                                                         controls and the level of coverage of the main risks.

                                                                                                                                                                                                                                                                                                                                                                                                                         T Second-level control:
                                                                                                                                                                                                                                                                                                                             I.2.3 Action plan monitoring tool
                                                                                                                                                                                                                                                                                                                                                                                                                         The Permanent Control and Financial Risk Monitoring
                                                                                                                                                                                                                                                                                                                             A database centralizes all action plans adopted by the                                      Department is responsible for oversight of second-level
                                                                                                                                                                                                                                                                                                                             affiliates in response to the assessment of mapping,                                        control, and the local internal controllers and oversight
                                                                                                                                                                                                                                                                                                                             incident collection and the findings of second-or third-level                               officers are responsible for implementation. Second-level
                                                                                                                                                                                                                                                                                                                             controls. The software can link each control to                                             control has specific systems overseen by a team
                                                                                                                                                                                                                                                                                                                                                                                                                         independent of the operational units, which conducts
                                                                                                                                                                                                                                                                                                                             macroprocesses and risk events in the operational risk map.
                                                                                                                                                                                                                                                                                                                                                                                                                         ongoing controls to ensure that all transactions are proper
                                                                                                                                                                                                                                                                                                                             Progress reports and indicators for audits and action plans                                 and comply with the recommendations in Article 6.a of
                                                                                                                                                                                                                                                                                                                             are made available to line personnel and oversight                                          CRBF Regulation 97-02.
                                                                                                                                                                                                                                                                                                                             functions, ensuring oversight and follow-through. Quarterly
                                                                                                                                                                                                                                                                                                                             progress reports are sent to the Group Internal Control
                                                                                                                                                                                                                                                                                                                                                                                                                      • Third-level (periodic) control:
                                                                                                                                                                                                                                                                                                                             Committee.                                                                               Third-level control is performed by independent oversight
                                                                                                                                                                                                                                                                                                                                                                                                                      bodies (supervisory authorities, independent auditors, etc.).
                                                                                                                                                                                                                                                                                                                                                                                                                      It entails periodic verification of compliance as defined by
                                                                                                                                                                                                                                                                                                                             1.2.4 Risk management procedure                                                          Article 6.b of CRBF Regulation 97-02.
                                                                                                                                                                                                                                                                                                                                                                                                                      Renault’s Internal Audit Department acts as an “external
                                                                                                                                                                                                                                                                                                                             The Group Internal Control Committee has approved the                                    service provider” for RCI Banque, performing RCI Banque’s
                                                                                                                                                                                                                                                                                                                             general framework of the RCI Banque internal control system,                             third-level audits upon request by the RCI Banque Periodic
                                                                                                                                                                                                                                                                                                                             as set down in a general internal control procedure.                                     Control and Internal Audit Officer.




                                                                                                                                                                                                                                                                                                                           - 52 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              I.3 APPROPRIATE INFORMATION SYSTEMS                                                       Portugal, South Korea, Argentina, Brazil and Morocco.
                                                                                                        A relevance study is in progress for the others.
              IN LINE WITH THE GROUP’S OBJECTIVES
              In accordance with Renault’s group-wide information system                                1.4 INTERNAL CONTROL BODIES
              security policy, RCI Banque is strengthening its IS security                              AND CONTROL OPERATIONS
              by implementing action plans in areas such as the
              administration of system access authorizations and                                        1.4.1 Board of Directors
              business continuity. This policy is couched in terms of Cobit
              processes and is consistent with international IS security                                The Board of Directors, a deliberative body, monitors and
              standards.                                                                                guides the Executive Committee to ensure that the internal
                                                                                                        control system is implemented.
              The RCI Banque group has also adopted the Renault Code of                                 In order to present and describe the working methods and
              Conduct and disseminated it in all of its affiliates. The                                 decision-making processes of the governing bodies and the
              purpose of this code is to enable all staff members to                                    distribution of powers among them, information is presented
              determine what behavior is appropriate in concrete and                                    on the following:
              sometimes complex situations.
                                                                                                        • Composition of the Board of Directors, management
                                                                                                          procedures and scope of senior management powers;
              A Service Agreement between Renault and the RCI Banque’s
              Information System department has been signed so that the                                 • Manner of preparation for Board meetings;
              controls to be introduced in the IT service and production                                • The Board’s activities during 2008.
              department (focus on means and results) are fully
              integrated. This agreement includes clauses covering                                      1.4.1.1 Composition of the Board of
              essential services that are outsourced.
                                                                                                        Directors, Authority and Powers of General
              RCI Banque has had a business continuity plan since 2003.                                 management
              The objective of the plan is to ensure that RCI Banque is
              able to continue providing essential products and services                                1.4.1.1.1 Composition of the Board of Directors
              in the event of a severe shock resulting from IT or
              telecommunication system outages, circumstances that                                      At 31 December 2008, the Board of Directors was composed
              render business premises unavailable, or events that                                      of seven directors elected for terms of six years.
              deprive the group of a critical supplier’s services.
                                                                                                        The directors have been elected to the Board of Directors by
              The back-up plan for the most vital functions, namely                                     virtue of their knowledge of the Company’s activity and lines
              refinancing and other cash flows, has been in place since                                 of business, their technical and general expertise and, in
              2003 and is tested twice a year. Continuity of critical                                   some cases, the experience acquired in performing their
              functions is assured for the most significant geographical                                duties at the parent company and shareholder.
              areas (France, Germany, United Kingdom, Spain and Italy).                                 Each director owns at least one share, in accordance with
              Technical and user tests, carried out twice a year, have                                  the provisions of the by-laws.
              demonstrated that business continuity plans are
              operational. An emergency plan was successfully activated                                 Any remunerations and perquisites granted to officers and
              at the end of 2008 following flooding at RCI Banque’s offices                             directors are determined at the Renault Group level and are
              in Rome, Italy.                                                                           not subject to any internal control procedures at RCI Banque.
                                                                                                        The rules and principles applied to such remuneration at the
              Extension of the geographic scope of the back-up plan for                                 group level are detailed in Renault’s consolidated annual
              critical functions is currently in progress for five affiliates:                          report.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 53 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             FINANCIAL SECURITY ACT




                                                                                                                                                                                                                                                                                                                                                                                 POSITION                                 DATE                CURRENT              LIST OF DIRECTOR’S
                                                                                                                                                                                                                                                                                                                                FIRST NAME / LAST NAME                       IN THE COMPANY                             ELECTED                TERM          POSITIONS IN OTHER COMPANIES
                                                                                                                                                                                                                                                                                                                                                                                                                                              EXPIRES            AND ON OTHER BOARDS

                                                                                                                                                                                                                                                                                                                               Patrice CABRIER                     Executive Vice President, Europe                   22/07/2004             May 2012            See the Management Report
                                                                                                                                                                                                                                                                                                                               Alain DASSAS                                                                           18/07/2003             May 2012            See the Management Report
                                                                                                                                                                                                                                                                                                                               Jean-Baptiste DUZAN                                                                    18/07/2003             May 2012            See the Management Report
                                                                                                                                                                                                                                                                                                                               Jean-Pierre FRAMEZELLE            Senior V.P., Sales Operations France                 28/05/2003             May 2009            See the Management Report
                                                                                                                                                                                                                                                                                                                               Philippe GAMBA                    Chairman and Chief Executive Officer                 30/05/2006             May 2012            See the Management Report
                                                                                                                                                                                                                                                                                                                               Patrick BLAIN                                                                          30/05/2006             May 2012            See the Management Report
                                                                                                                                                                                                                                                                                                                               Thierry MOULONGUET                                                                     30/05/2006             May 2012            See the Management Report



                                                                                                                                                                                                                                                                                                                             Directors receive no compensation for serving on the Board.                              specified that the Board has applied a limitation to the
                                                                                                                                                                                                                                                                                                                                                                                                                      authority of the Chief Executive Officer, who must secure the
                                                                                                                                                                                                                                                                                                                             Mr. Antoine ROUSSELIN, Chief Financial Officer, takes part in                            approval of the Board to purchase, sell or mortgage
                                                                                                                                                                                                                                                                                                                             meetings of the Board of Directors in his capacity as a                                  buildings. The Board has reserved these powers for itself.
                                                                                                                                                                                                                                                                                                                             responsible officer within the meaning of Article L. 511-13
                                                                                                                                                                                                                                                                                                                             of the Code monétaire et financier (France’s Monetary and                                1.4.1.2 Preparation of Board of Directors
                                                                                                                                                                                                                                                                                                                             Financial Code). Mr. Philippe GAMBA is likewise a responsible                            Meetings
                                                                                                                                                                                                                                                                                                                             officer for this purpose.
                                                                                                                                                                                                                                                                                                                                                                                                                      The Board meets as often as the interest of the Company
                                                                                                                                                                                                                                                                                                                             On 28 November 2006, the Comité des établissements de                                    Requires, upon notice, duly served adequately in advance
                                                                                                                                                                                                                                                                                                                             crédit et des entreprises d'investissement, the French                                   and sent by ordinary letter in accordance with the
                                                                                                                                                                                                                                                                                                                             regulatory body for credit institutions and investment firms,                            provisions of the by-laws by the secretary of the Board, who
                                                                                                                                                                                                                                                                                                                             approved the designation by the Board at its meeting on                                  is appointed by the Chairman and Chief Executive Officer.
                                                                                                                                                                                                                                                                                                                             21 July 2006 of Mr. Éric SPIELREIN, Corporate Secretary, as a
                                                                                                                                                                                                                                                                                                                             third responsible officer.                                                               In accordance with Article L. 225-238 of the Code de
                                                                                                                                                                                                                                                                                                                                                                                                                      Commerce (French Commercial Code), the Company’s
                                                                                                                                                                                                                                                                                                                             1.4.1.1.2 Authority and powers of general                                                external auditors are summoned by registered letter to
                                                                                                                                                                                                                                                                                                                             management                                                                               attend the Board meetings held to review and approve the
                                                                                                                                                                                                                                                                                                                                                                                                                      year-end financial statements (in February) and to review
                                                                                                                                                                                                                                                                                                                             In accordance with Article L. 225-551-1 of the Code de                                   the financial statements for the first half year (in July).
                                                                                                                                                                                                                                                                                                                             Commerce (French Commercial Code), the Board of Directors,
                                                                                                                                                                                                                                                                                                                             at its meeting on 24 July 2002, decided to concentrate the                               All technical documents and information required for the
                                                                                                                                                                                                                                                                                                                             powers of the Chairman of the Board and the Chief Executive                              directors to fulfill their responsibilities are sent to them in
                                                                                                                                                                                                                                                                                                                             Officer. Mr. Philippe GAMBA thus occupies both positions.                                compliance with the applicable provisions of the law and
                                                                                                                                                                                                                                                                                                                                                                                                                      the Company’s by-laws.
                                                                                                                                                                                                                                                                                                                             It is noted that there are no limitations on the powers of the
                                                                                                                                                                                                                                                                                                                             Chairman and Chief Executive Officer other than those                                    In accordance with those provisions, directors have the right
                                                                                                                                                                                                                                                                                                                             dictated by law and the Company’s interest. However, it is                               to request and receive information on an ongoing basis.




                                                                                                                                                                                                                                                                                                                           - 54 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              1.4.1.3 Activity of the Board of Directors                                                Meetings of the Board of Directors are held at 13-15, quai
              during 2008                                                                               Le Gallo, 92512 Boulogne-Billancourt, the head office of the
                                                                                                        parent company (Renault s.a.s.).
              The Board of Directors met four times in 2008.
              At each of these meetings, except the meetings on 8 April                                 Minutes of Board of Directors meetings are drawn up by the
              and 26 November 2008, sales and operating results for                                     secretary of the Board for approval at the following meeting.
              each of the group’s business segments were presented in                                   They are then filed as corporate records and may be
              detail. This information was part of the meeting package                                  inspected by any director at the Company’s head office.
              provided to all Board members.

              On 5 February 2008, the Board met to review and approve                                   1.4.2 The RCI Banque group’s Audit Committee
              the annual financial statements for 2007 to be submitted
              to the Annual General meeting and to hear reports on                                      The RCI Banque group’s Audit Committee assists the Board
              financial transactions.                                                                   of Directors in its oversight mission by monitoring the
                                                                                                        quality and general orientations of the group’s internal
              On 8 April 2008, the Board met to approve the merger plans                                control system. In particular, the Audit Committee validates
              involving the takeover of RCI Finanzholding (Germany) and                                 the annual audit plan and the annual internal control report
              Artida S.A (Spain). It met on 22 July 2008 to approve the                                 required by Article 38 of CRBF Regulation 97-02.
              interim financial statements for the six months ended
              30 June, to update financial reporting for year-end bond
                                                                                                        1.4.3 The RCI Banque group’s Internal Control
              issues, and to examine the report on internal control.
                                                                                                        Committee
              Finally, the Board met on 26 November 2008 to review
              financial transactions in 2008 and the steps taken to                                     The RCI Banque group’s Internal Control Committee, an
              address the financial crisis at the end of the year, in                                   executive body composed of all Executive Committee
              particular steps taken to optimize the benefit of government                              members, spearheads the internal control process. It reports
              measures aimed at helping financial institutions.                                         periodically on the internal control situation to the Board of
              As provided for by law, the Board of Directors has a                                      Directors, to the Audit Committee and, via the annual report
              responsibility at each meeting to exercise ongoing control of                             prepared for the Board of Directors pursuant to CRBF
              the management of the Company. The Company’s by-laws                                      Regulation 97-02, to the supervisory authority. Each
              (Articles of Association) give the Board the power to                                     subsidiary has its own Internal Control Committee.
              authorize capital transactions, bond issues, signatures or                                The RCI Banque group’s Corporate Secretary, as a
              termination of agreements with other undertakings that                                    responsible officer, coordinates the permanent and periodic
              entail commitments affecting the Company’s future, and                                    control systems.
              major transactions likely to significantly alter the scope of
              operations or capital structure of the Company and the
              group it controls. The Board ensures that the strategy                                    1.4.3.1 Permanent control
              implemented by the group is consistent with its long-term
              strategic aims.                                                                           The Head of the Permanent Control and Financial Risk
                                                                                                        Monitoring Department, who reports to the Corporate
              The Board of Directors also decides on changes of members                                 Secretary, is responsible for ongoing control within the
              of the Board, calls General Meetings of Shareholders                                      meaning of Article 6.a of CRBF Regulation 97-02, as well as
              including the Annual General Meeting that approves the                                    for compliance control within the meaning of Article 11 of
              financial statements, and delegates powers.                                               the Decree of 31 March 2005 amending the CRBF Regulation.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 55 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             FINANCIAL SECURITY ACT




                                                                                                                                                                                                                                                                                                                             The Permanent Control and Financial Risk Monitoring                                      • compliance with regulatory requirements relating to data
                                                                                                                                                                                                                                                                                                                             Department, attached to the office of the Corporate                                        used by the applications (personal and tax information),
                                                                                                                                                                                                                                                                                                                             Secretary, oversees the RCI Banque group’s internal control                              • classification of applications, so as to determine
                                                                                                                                                                                                                                                                                                                             system. This department is in charge of organizing and                                     requirements in terms of confidentiality, availability.
                                                                                                                                                                                                                                                                                                                             leading the internal control system for the group as a whole.

                                                                                                                                                                                                                                                                                                                             For internal control oversight within RCI Banque group
                                                                                                                                                                                                                                                                                                                                                                                                                      1.4.3.2 Periodic control
                                                                                                                                                                                                                                                                                                                             subsidiaries, the Permanent Control and Financial Risk
                                                                                                                                                                                                                                                                                                                                                                                                                      The person responsible for the Periodic Control and Audit
                                                                                                                                                                                                                                                                                                                             Monitoring Department relies on local internal controllers
                                                                                                                                                                                                                                                                                                                                                                                                                      Department, within the meaning of Article 6.b of CRBF
                                                                                                                                                                                                                                                                                                                             who report to it functionally or, in the case of the French
                                                                                                                                                                                                                                                                                                                             subsidiary, directly. The internal controllers at other                                  Regulation 97-02, reports to the Corporate Secretary of the
                                                                                                                                                                                                                                                                                                                             subsidiaries report directly to the subsidiary’s general                                 RCI Banque group and is independent of the Permanent
                                                                                                                                                                                                                                                                                                                             manager. In all cases, the internal controllers’ primary                                 Control function.
                                                                                                                                                                                                                                                                                                                             responsibilities within the subsidiary are to:                                           The Renault Group’s Internal Audit Department has been
                                                                                                                                                                                                                                                                                                                                                                                                                      mandated by RCI Banque to perform the periodic compliance
                                                                                                                                                                                                                                                                                                                             • lead and oversee deployment of the internal control                                    audits called for in Article 6.b of CRBF Regulation 97-02. It
                                                                                                                                                                                                                                                                                                                               system (chair of the subsidiary’s internal control                                     conducts these audits within the different subsidiaries
                                                                                                                                                                                                                                                                                                                               committee, procedure management, action plan follow-up),                               according to an annual audit plan validated by the Audit
                                                                                                                                                                                                                                                                                                                             • carry out the second-level controls,                                                   Committee, as part of general auditing or specific audit
                                                                                                                                                                                                                                                                                                                             • monitor and measure operational risks,                                                 assignments focusing on a given area such as acceptance
                                                                                                                                                                                                                                                                                                                             • detect and prevent internal fraud and money laundering,                                of Dealer risk. Audit findings are documented in reports and
                                                                                                                                                                                                                                                                                                                                                                                                                      recommendations sent to the Internal Control Committee.
                                                                                                                                                                                                                                                                                                                             • manage the local code of conduct system,
                                                                                                                                                                                                                                                                                                                             • ensure efficiency of the business continuity plan,
                                                                                                                                                                                                                                                                                                                             • manage the local compliance control system.
                                                                                                                                                                                                                                                                                                                                                                                                                      II. ORGANIZATION AND PREPARATION
                                                                                                                                                                                                                                                                                                                                                                                                                      OF FINANCIAL AND ACCOUNTING
                                                                                                                                                                                                                                                                                                                             Similarly, the Permanent Control and Financial Risk                                      INFORMATION
                                                                                                                                                                                                                                                                                                                             Monitoring Department relies on designated oversight
                                                                                                                                                                                                                                                                                                                             officers by function to watch over the internal control                                  The RCI Banque group prepares consolidated financial
                                                                                                                                                                                                                                                                                                                             system within RCI Banque group divisions.                                                statements using a single consolidation tool and a set of
                                                                                                                                                                                                                                                                                                                                                                                                                      consolidation entries common to all entities. The
                                                                                                                                                                                                                                                                                                                             Lastly, process owners have been designated and made                                     consolidation tool generates accounting and management
                                                                                                                                                                                                                                                                                                                             accountable for the accomplishment and updating of                                       reports from a single stream reporting system, thereby
                                                                                                                                                                                                                                                                                                                             procedures and first-level controls.                                                     ensuring data consistency between the financial statements
                                                                                                                                                                                                                                                                                                                                                                                                                      and the various in-house performance indicators.
                                                                                                                                                                                                                                                                                                                             Regulatory monitoring officers have been appointed.
                                                                                                                                                                                                                                                                                                                             Their role is to monitor, analyze and report on any changes                              II.1 PREPARATION OF FINANCIAL STATEMENTS
                                                                                                                                                                                                                                                                                                                             in regulatory requirements affecting RCI Banque, as part of
                                                                                                                                                                                                                                                                                                                             the compliance control system implemented to ensure the                                  The consolidating entity, RCI Banque, defines, manages and
                                                                                                                                                                                                                                                                                                                             company is properly managed.                                                             supervises the preparation of accounting and financial
                                                                                                                                                                                                                                                                                                                                                                                                                      information. Responsibility for preparing single-entity
                                                                                                                                                                                                                                                                                                                             Information system security correspondents have also been
                                                                                                                                                                                                                                                                                                                                                                                                                      financial statements and accounts restated for consolidation
                                                                                                                                                                                                                                                                                                                             named for each application area. They oversee:
                                                                                                                                                                                                                                                                                                                                                                                                                      purposes lies with each subsidiary’s administrative and
                                                                                                                                                                                                                                                                                                                             • administration of system access authorizations                                         financial directors, acting under the authority of the
                                                                                                                                                                                                                                                                                                                               (procedures, user profiles and associated privileges),                                 subsidiary’s chairman and chief executive officer.




                                                                                                                                                                                                                                                                                                                           - 56 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              The following general policies govern financial statement                                 it gradually throughout the consolidated entities. This highly
              preparation at all levels within the group:                                               structured, integrated application enables the group to
                                                                                                        implement its own internal control policies and ensure data
              • All transactions must be accounted for and reconciled.
                                                                                                        consistency and reliability. In particular, the ability to define
              • Transactions must conform to the accounting policies                                    and monitor user profiles helps in complying with rules
                that govern the entire group. A set of reference documents
                                                                                                        governing separation of responsibilities.
                disseminated to all group entities establishes
                measurement and presentation standards as well as charts
                                                                                                        This software package, combined with a group-wide
                of account. These standards help to ensure consistency in
                                                                                                        accounting interpretation tool, has been designed to
                the financial information that management receives.
                                                                                                        incorporate the specific features of the group’s various
              • Assets, liabilities and off-balance sheet items                                         activities through the use of different modules.
                (receivables, borrowings, derivatives, cash and
                equivalents, etc.) are periodically reviewed to reconcile the                           Reliability of financial and accounting information is ensured
                accounts with the group’s operational, account validation
                                                                                                        mainly by controlling and standardizing the basic
                and inventory systems.
                                                                                                        transactions processed by the operational systems,
                                                                                                        following group guidelines. These basic transactions feed
              In addition, the group’s internal control and operational risk
                                                                                                        data through interfaces, to the group-wide accounting
              management system, described above (see. § I.2.1 and
                                                                                                        interpretation tool, which in turn sends the accounting
              § I.2.2) applies to the process of preparing accounting and
              financial information.                                                                    translation of management events or inventory data to the
                                                                                                        ERP system.
              Furthermore, a group procedure sets out the principles for
              account validation throughout the RCI Banque group. This                                  The ongoing deployment of the ERP financial and accounting
              procedure applies to the single-entity statements and group                               modules across group entities has been carefully planned.
              statements of RCI Banque group entities and thus helps to                                 For entities in which deployment is effective, control over
              control the risks related to the organization of accounting                               accounting output is reinforced by the centralized
              and the processing of information.                                                        maintenance of the accounting system (accounting
                                                                                                        interpretation tool and ERP) by a team of functional and
              Effective linking of financial reporting to the group’s                                   technical experts.
              operational systems is the keystone of the organizational
              scheme for preparing accounting and financial information.                                II.2.2 Operational systems and control
              The group must rely on powerful, controlled information
              systems that can cope with the large volume of data to be                                 Initial controls are performed via the major operational
              processed, process that data to the requisite quality                                     systems used for financing, service and refinancing
              standard, and meet ever-shorter deadlines for financial                                   transactions under the responsibility of the main lines of
              reporting to group management.                                                            business (approval, collections/delinquencies, services,
                                                                                                        refinancing). Each of the tools used for approval, finance
              II.2 INFORMATION SYSTEMS                                                                  and service contract management, customer and supplier
              AND ORGANIZATION                                                                          relationship management, administration of refinancing,
                                                                                                        purchase order follow-up, and human resources
              II.2.1 Use of an integrated software package                                              management entails its own specific control approach.
                                                                                                        These form part of the operational procedures used to
              For accounting, the RCI Banque group has chosen to                                        manage physical and financial transactions, in compliance
              implement a widely recognized software application                                        with group procedures for authorization and delegation of
              (Enterprise Resource Planning, or E.R.P.), and is deploying                               powers.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 57 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             FINANCIAL SECURITY ACT




                                                                                                                                                                                                                                                                                                                             The financial and accounting teams play close attention to                               active involvement of line personnel and the Finance
                                                                                                                                                                                                                                                                                                                             transfers of transaction data between the accounting                                     function to eliminate the root causes of the anomalies.
                                                                                                                                                                                                                                                                                                                             systems and non-integrated operational systems.
                                                                                                                                                                                                                                                                                                                                                                                                                      II.2.4 Role of the group accounting control unit
                                                                                                                                                                                                                                                                                                                             For example, at the group level:
                                                                                                                                                                                                                                                                                                                             • account balances and movements are cross-checked                                       To complement this existing process (internal control,
                                                                                                                                                                                                                                                                                                                               against stock and flow data to ensure that data in the                                 RCI Banque Audit, Statutory Auditors, etc.) with a view to
                                                                                                                                                                                                                                                                                                                               financing, services, receivables and payables management                               enhancing the ongoing reliability of financial information,
                                                                                                                                                                                                                                                                                                                               systems are consistent, and any discrepancies are                                      the accounting control unit conducts annual accounting
                                                                                                                                                                                                                                                                                                                               monitored,                                                                             assessment audits, offers advice and provides training.
                                                                                                                                                                                                                                                                                                                             • similar cross-checks against the refinancing management
                                                                                                                                                                                                                                                                                                                                                                                                                      The objective is for the unit to control almost all consolidated
                                                                                                                                                                                                                                                                                                                               systems are made for financial transactions, and the
                                                                                                                                                                                                                                                                                                                                                                                                                      affiliates annually. This system helps to promote knowledge
                                                                                                                                                                                                                                                                                                                               findings of these checks are analyzed,
                                                                                                                                                                                                                                                                                                                                                                                                                      of the group’s accounting principles and improve
                                                                                                                                                                                                                                                                                                                             • invoices are checked against purchase orders and                                       implementation thereof.
                                                                                                                                                                                                                                                                                                                               investments recognized on the books to ensure
                                                                                                                                                                                                                                                                                                                               consistency with the purchasing and capital expenditure                                The accounting control unit also verifies the conditions
                                                                                                                                                                                                                                                                                                                               tracking systems.                                                                      under which the accounts are prepared and supported,
                                                                                                                                                                                                                                                                                                                                                                                                                      through information provided by indicators included in the
                                                                                                                                                                                                                                                                                                                             Accounts are kept in accordance with group-wide standards,                               group account validation procedure. These indicators are
                                                                                                                                                                                                                                                                                                                             with a single operational accounting plan (group-wide                                    filled in by each affiliate’s financial officer at least three
                                                                                                                                                                                                                                                                                                                             accounting plan enhanced to meet country-specific                                        times a year.
                                                                                                                                                                                                                                                                                                                             requirements). However, accounting operations in keeping
                                                                                                                                                                                                                                                                                                                             with local standards are possible, allowing financial                                    Each year, the Finance Departments of the different entities
                                                                                                                                                                                                                                                                                                                             statements to be prepared in accordance with both group                                  assess their accounting and financial risk control
                                                                                                                                                                                                                                                                                                                             standards and local standards.                                                           mechanisms in relation to the group’s management policy.
                                                                                                                                                                                                                                                                                                                                                                                                                      This assessment is part of the RCI Banque group’s overall
                                                                                                                                                                                                                                                                                                                             All financial information data is collected and managed by a                             risk assessment process (see I.2.1).
                                                                                                                                                                                                                                                                                                                             single tool, BO Finances. The control process constructed
                                                                                                                                                                                                                                                                                                                             within this tool and likewise its maintenance, which is
                                                                                                                                                                                                                                                                                                                                                                                                                      II.2.5 Publication of financial statements
                                                                                                                                                                                                                                                                                                                             performed by a dedicated unit, ensure that affiliate data is
                                                                                                                                                                                                                                                                                                                             accurate and consistent.                                                                 The group publishes financial information for the six months
                                                                                                                                                                                                                                                                                                                                                                                                                      ended 30 June and for the full year ended 31 December.
                                                                                                                                                                                                                                                                                                                             II.2.3 Role of accounting and management                                                 In anticipation of these statements, pre-closings are
                                                                                                                                                                                                                                                                                                                             staff                                                                                    performed twice a year, at 31 May for the June statement
                                                                                                                                                                                                                                                                                                                                                                                                                      and at 31 October for the December statement. Management
                                                                                                                                                                                                                                                                                                                             The accounting units of the affiliates and centralized                                   then holds wrap-up meetings with the external auditors.
                                                                                                                                                                                                                                                                                                                             support functions analyze the accounts and explain
                                                                                                                                                                                                                                                                                                                             changes in financial data from one accounting period to the                              The RCI Banque group prepares its consolidated financial
                                                                                                                                                                                                                                                                                                                             next, working in conjunction with the local and central                                  statements in accordance with the International Financial
                                                                                                                                                                                                                                                                                                                             management controllers, who analyze performance in                                       Reporting Standards (IFRS) published by the International
                                                                                                                                                                                                                                                                                                                             comparison with budget and revised forecast data. If the                                 Accounting Standards Board (IASB) for which a rule requiring
                                                                                                                                                                                                                                                                                                                             analysis of budget or forecast variances or any other                                    adoption has appeared in the Official Journal of the European
                                                                                                                                                                                                                                                                                                                             verification procedure reveals shortcomings in the quality                               Union by the statement closing date.
                                                                                                                                                                                                                                                                                                                             of data emanating from the associated accounting or
                                                                                                                                                                                                                                                                                                                             operational system, action plans are implemented with the




                                                                                                                                                                                                                                                                                                                           - 58 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              RISKS




                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              BASEL II
              1. THE RCI BANQUE GROUP’S INTERNAL                                                        weighted risks of exposures assessed by the “internal rating
                                                                                                        based” method.
              CAPITAL MANAGEMENT POLICY
                                                                                                        Own funds (90-02)
              The internal capital requirement is the assessment of the
              own funds required to address all of RCI Banque’s risks                                                                                         31/12/2007      31/12/2008
                                                                                                          in millions of euros                                       CAD             CRD
              (Pillar 1 + Pillar 2 risks). It is equivalent to the lowest value
              in terms of capital that the group’s management considers                                   Core capital
              is needed to cover its risk profile and strategy.                                           (Core Tier 1) (C)                                        2,001           1,883

                                                                                                          Equity under IFRS                                        2,430            2,188
              In addition, simulations of forecast activities, acquisitions
                                                                                                          Planned dividend distribution                              302              301
              and disposals are produced so as to determine any
              additional own funds requirements, thus ensuring that                                       Restated unrealized
                                                                                                          or deferred gains or losses                                  56              69
              future prudential ratios are complied with.
                                                                                                          Intangible non-current assets                                71              64
                                                                                                          and goodwillLAN
              The objective of the RCI Banque group’s capital management
              policy is to optimize the use of own funds in order to                                      Other prudential deductions*                                   -             10
              maximize the short and long-term return for the shareholder,                                Tier 2 (supplementary) capital                             239              265
              while maintaining a capital adequacy ratio (Core Tier 1 ratio)
              in keeping with the target rating required for market                                       Subordinated liabilities                                    268             258
              activities.                                                                                 Other prudential deductions*                                 29              10
                                                                                                          Positive difference between valuation
                                                                                                          adjustments and expected losses up
              2. OWN FUNDS AND CAPITAL                                                                    to 0.6% of assets risk-weighted under                          -              17
                                                                                                          the IRB method
              REQUIREMENTS
                                                                                                          Tier 3 capital                                                 -               -
              Prudential capital is determined in accordance with CRBF
              Regulation 90-02.                                                                           TOTAL PRUDENTIAL CAPITAL (B)                             2,240           2,148
                                                                                                          *Details of other prudential deductions
              Tier 1 capital (core) is calculated on the basis of the group’s                             (CRD: 50% Tier 1, 50% Tier 2 -                               29              20
                                                                                                          CAD: 100% Tier 2)
              consolidated equity under IFRS, from which are deducted
              unrealized or deferred gains or losses, planned dividend                                    Equity interests in credit institutions                      29              10
              distribution, and intangible non-current assets and goodwill.
                                                                                                          Equity interests in insurance                                  -             10
                                                                                                          companies
              Tier 2 (supplementary) capital includes subordinated
              liabilities and equity interests. As the latter all have a
              maturity of more than five years, no discount is applied.                                 Further to the proposed transposition of the European CRD
                                                                                                        system (Capital Requirements Directive 2006-48-CE and
              Constituent components of equity in non-consolidated                                      2006-49-CE) into French law, the Order dated 20 February
              holdings of more than 10% in credit institutions and                                      2007, amended on 11 September 2008 set out the “capital
              insurance companies, and the values of equity-accounted                                   requirements for credit institutions and investment firms”.
              companies are deducted from the capital on the basis of                                   In accordance with these provisions, in 2008 the RCI Banque
              50% for the Tier 1 capital and 50% for the Tier 2 capital.                                group incorporated the impacts of the switch to the new
                                                                                                        European CRD directive into its management of capital and
              Likewise, under the advanced approach to credit risk, any                                 risks. This Directive sets out procedures for calculating the
              negative difference between total provisions and total                                    solvency ratio as from 1 January 2008.
              expected losses is deducted from the capital. If the sum of
              the expected losses is less than the valuation adjustments                                As from 1 January 2008, the CRD ratio takes legal effect.
              and collective impairment allowances, the balance is added                                However, banks will continue to calculate the CAD ratio
              to the Tier 2 capital, up to a maximum of 0.6% of the                                     during a parallel phase, as the Regulatory Authority has




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 59 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             RISKS



                                                                                                                                                                                                                                                                                                                             defined the following capital requirement floors until the end                           insurance activity”, eliminating contributions from the
                                                                                                                                                                                                                                                                                                                             of 2009:                                                                                 group’s insurance companies from both the denominator of
                                                                                                                                                                                                                                                                                                                             • 90% of capital requirements as they would have been                                    the capital ratio and its numerator.
                                                                                                                                                                                                                                                                                                                               calculated under the CAD until 31 December 2008,
                                                                                                                                                                                                                                                                                                                                                                                                                      In September 2007, RCI Banque was granted a waiver by
                                                                                                                                                                                                                                                                                                                             • 80% of these requirements until 31 December 2009.                                      the Commission bancaire (French Banking Commission)
                                                                                                                                                                                                                                                                                                                                                                                                                      exempting the French credit institutions Diac SA and
                                                                                                                                                                                                                                                                                                                             Capital requirements (CAD – CRD)                                                         Cogera SA from solo supervision, as the group satisfies the
                                                                                                                                                                                                                                                                                                                                                                                                                      conditions for exemption stipulated by Article 4-1 of CRBF
                                                                                                                                                                                                                                                                                                                               in millions of euros                               31/12/2007      31/12/2008          Regulation 2000-03.
                                                                                                                                                                                                                                                                                                                                                                                         CAD             CRD

                                                                                                                                                                                                                                                                                                                               Credit risk                                             1,957           1,077          RCI Banque also remains within the regulatory framework
                                                                                                                                                                                                                                                                                                                               1) Internal rating based (IRB)                                                         set out in Article 4-2 of CRBF Regulation 2000-03:
                                                                                                                                                                                                                                                                                                                                                                                             -            527
                                                                                                                                                                                                                                                                                                                               method                                                                                 • There is no obstacle to the transfer of capital between
                                                                                                                                                                                                                                                                                                                               Corporates                                                    -            193           subsidiaries,
                                                                                                                                                                                                                                                                                                                               Retail                                                        -            334         • The risk measurement and control procedures within the
                                                                                                                                                                                                                                                                                                                               2) Standard methodBILAN                                 1,957              550           meaning of Regulation 97-02 relating to internal control
                                                                                                                                                                                                                                                                                                                               Central governments and central banks                        1               3           are implemented on a consolidated basis, including
                                                                                                                                                                                                                                                                                                                                                                                                                        subsidiaries.
                                                                                                                                                                                                                                                                                                                               Institutions                                                 8              38
                                                                                                                                                                                                                                                                                                                               Corporates                                                 616             243
                                                                                                                                                                                                                                                                                                                                                                                                                      Consequently, the RCI Banque group is exempt from
                                                                                                                                                                                                                                                                                                                               Retail                                                   1,284             258         respecting prudential ratios on an individual basis for each
                                                                                                                                                                                                                                                                                                                               Other non-credit obligation assets                          48               7         of its subsidiaries. RCI monitors changes in the group’s
                                                                                                                                                                                                                                                                                                                               Market risk                                                 24              34         consolidated solvency ratio monthly and spreads own funds
                                                                                                                                                                                                                                                                                                                               Operational risk                                              -            139         evenly between its entities.

                                                                                                                                                                                                                                                                                                                               Transitional requirements under
                                                                                                                                                                                                                                                                                                                               the floor levels (90% of Basel I                              -            339         4. MARKET RISK
                                                                                                                                                                                                                                                                                                                               requirement in 2008)
                                                                                                                                                                                                                                                                                                                                                                                                                      In the absence of a trading book, the whole of the
                                                                                                                                                                                                                                                                                                                               TOTAL PRUDENTIAL CAPITAL                                1,981            1,589
                                                                                                                                                                                                                                                                                                                               REQUIREMENTS (A)                                                                       RCI Banque group’s market risk comes from its foreign
                                                                                                                                                                                                                                                                                                                                                                                                                      exchange exposure. The latter is mainly linked to structural
                                                                                                                                                                                                                                                                                                                               TOTAL PRUDENTIAL CAPITAL (B)                            2,240           2,148          foreign exchange exposure on equity securities of affiliates
                                                                                                                                                                                                                                                                                                                               Overall solvency ratio
                                                                                                                                                                                                                                                                                                                                                                                                                      outside the Euro zone.
                                                                                                                                                                                                                                                                                                                                                                                       9.16%          10.81%
                                                                                                                                                                                                                                                                                                                               (B-CRD /A)* 8%
                                                                                                                                                                                                                                                                                                                                                                                                                      The capital requirement for market risk used when calculating
                                                                                                                                                                                                                                                                                                                               Core Tier 1 solvency ratio                                                             the CRD solvency ratio is determined using the standard
                                                                                                                                                                                                                                                                                                                               (C-CRD /A)* 8%                                          8.06%           9.48%
                                                                                                                                                                                                                                                                                                                                                                                                                      method. There are no additional capital requirements linked
                                                                                                                                                                                                                                                                                                                                                                                                                      to any overrun of the limits on major risks.

                                                                                                                                                                                                                                                                                                                                                                                                                      RCI Banque’s objectives and strategies with respect to the
                                                                                                                                                                                                                                                                                                                             Not including transitional requirements under the floor level                            foreign exchange risk are described in the “Financial Risks”
                                                                                                                                                                                                                                                                                                                             provisions, the overall “Pillar 1” solvency ratio would be                               section of the annual report.
                                                                                                                                                                                                                                                                                                                             13.75% at 31 December 2008 (including Core Tier 1 12.05%).
                                                                                                                                                                                                                                                                                                                                                                                                                      5. OPERATIONAL RISK
                                                                                                                                                                                                                                                                                                                             3. PRUDENTIAL SCOPE
                                                                                                                                                                                                                                                                                                                                                                                                                      Operational risk is assessed using the standard method.
                                                                                                                                                                                                                                                                                                                             The prudential scope used when calculating the solvency                                  The own funds requirement is worked out using the mean
                                                                                                                                                                                                                                                                                                                             ratio is identical to the scope of consolidation described in                            Net Banking Income observed over the last three years,
                                                                                                                                                                                                                                                                                                                             the Notes to the IFRS financial statements. RCI Banque has                               broken down into two business lines (Retail Bank and
                                                                                                                                                                                                                                                                                                                             not opted for the so-called “conglomerates” option;                                      Commercial Bank), the regulatory coefficients for which are
                                                                                                                                                                                                                                                                                                                             consequently the solvency ratio is calculated “without                                   12% and 15% respectively.




                                                                                                                                                                                                                                                                                                                           - 60 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              The operational risk management system is described in the                                optimize the supervision of credit risks, are the
              “Financial Security Act” chapter.                                                         responsibility of the “Reporting and Basel II Expertise Unit”,
                                                                                                        part of the Credit Risk Division.
              6. CREDIT RISK
                                                                                                        The Financial Management Division is responsible for
              In its letter dated 28 January 2008, the Commission bancaire                              consolidating the solvency ratio, producing regulatory
                                                                                                        reports and internal capital assessment.
              (French Banking Commission) granted RCI Banque
              authorization to use its advanced internal rating based
              system (AIRB) to assess its credit risks from 1 January 2008
                                                                                                        6.4 Information system
              onwards.                                                                                  The Common Database for Risk compiles credit risk-related
                                                                                                        data sourced from underwriting, management and accounting
              6.1 Information about credit risk                                                         software applications, on the three markets and for the four
              assessment using the AIRB approach1                                                       most significant countries.

              RCI Banque has opted for the most advanced methods
                                                                                                        The Common Database for Risk provides input for a decision-
              proposed by the Basel II reform for measuring and
                                                                                                        support environment through which risk analyses can be
              monitoring its credit risks; all parameters are thus estimated                            performed and the Fermat software package calculates the
              internally. Valuations are applied to the calculation of Retail,                          solvency ratio. Fermat also receives data from the KTP
              Corporate and Dealer customer risk exposures. The four                                    refinancing operations management system and the
              largest countries (Germany, Spain, France and Italy) are                                  Magnitude consolidation tool.
              treated using the advanced internal rating based approach,
                                                                                                        Fermat provides the information required by Evolan, the
              which will gradually be phased in for other affiliates; it has
                                                                                                        software used to publish regulatory reports.
              already been initiated in United Kingdom.

              6.2 Main steps in the work carried out                                                    The data collected and computed in these information
                                                                                                        systems are controlled, technically and functionally,
              in 2008                                                                                   throughout the production process, from the collection of
                                                                                                        information from upstream systems through to the end
              In 2008, work was done in two main areas:
                                                                                                        results. These quality controls are monitored monthly and
              • an in-depth study of the methodologies derived from the                                 action plans may be introduced to improve them.
                continuous monitoring of models enabled the rating models
                to be adapted to the volatile environment of 2008, and the
                forecasts for 2009 to be tweaked;                                                       The information system in place provides the elements
                                                                                                        needed to analyze the ratio. For example, monthly reports
              • ongoing work to secure the treatment of data and optimize                               display the components of the risk-weighted assets
                the information system architecture helped to minimize the                              calculated under the AIRB method (Probability of Default, Loss
                risks linked to producing the ratio and increase process                                Given Default, Exposure, Expected losses, etc.) according to
                productivity.                                                                           a number of criteria:
                                                                                                        • breakdown of performing loans and non-performing loans,
              The ratio is produced monthly within a very tight deadline,
                                                                                                          by types of financing,
              and high quality standards of data and calculations have
              been achieved.                                                                            • separation between balance sheet exposures and off-
                                                                                                          balance sheet exposures,
              The annual audit demonstrated the robustness of the models,                               • breakdown by country,
              processes and information system involved in calculating the
                                                                                                        • breakdown by customer category: private individuals,
              ratio.
                                                                                                          business individuals, small, medium and large-sized
                                                                                                          companies (based on turnover), very large-sized entities
              6.3 Organization                                                                            and the dealer network,
              The tools and processes used to calculate credit                                          • the development of other elements is in progress (loan term,
              risk-weighted assets, and the publication of reports used to                                type of pricing, business sector, etc.).




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 61 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             RISKS



                                                                                                                                                                                                                                                                                                                             6.5 Segmentation of exposures treated                                                    550 million euros. These guarantees protect RCI Banque
                                                                                                                                                                                                                                                                                                                                                                                                                      against the risk of default by the Renault Retail Group:
                                                                                                                                                                                                                                                                                                                             under the AIRB method
                                                                                                                                                                                                                                                                                                                                                                                                                      • A 100 million euro pledge agreement (cash),

                                                                                                                                                                                                                                                                                                                               in millions of euros                                    CREDIT EXPOSURES               • A 450 million euro non-recourse loan.
                                                                                                                                                                                                                                                                                                                                                                                   UNDER THE AIRB METHOD

                                                                                                                                                                                                                                                                                                                               Corporates                                                              5,107          The only netting on exposures concerns the credit and debt
                                                                                                                                                                                                                                                                                                                                                                                                                      positions (given in detail where applicable) for a given
                                                                                                                                                                                                                                                                                                                               * of which Dealers                                                       3,783
                                                                                                                                                                                                                                                                                                                                                                                                                      customer, of a given RCI Banque group company.
                                                                                                                                                                                                                                                                                                                               Retail                                                                 11,127
                                                                                                                                                                                                                                                                                                                               * of which small or medium sized entities                                2,042
                                                                                                                                                                                                                                                                                                                                                                                                                      Average conversion factors for converting off-balance sheet
                                                                                                                                                                                                                                                                                                                               TOTAL EXPOSURES                                                                        risk items into credit risk equivalents are 100% for the
                                                                                                                                                                                                                                                                                                                                                                                                      16,234
                                                                                                                                                                                                                                                                                                                               UNDER THE AIRB METHOD                                                                  Customer segment (representing 419 million euros), and
                                                                                                                                                                                                                                                                                                                                                                                                                      44 % for commitments with respect to Dealers (representing
                                                                                                                                                                                                                                                                                                                             Scope: Balance sheet and off-balance sheet, performing and                               1.1 billion euros), depending on their nature.
                                                                                                                                                                                                                                                                                                                             non-performing exposures under the AIRB method, for Germany,
                                                                                                                                                                                                                                                                                                                             Spain, France and Italy.
                                                                                                                                                                                                                                                                                                                                                                                                                      6.6 Borrower - PD (Probability of Default)
                                                                                                                                                                                                                                                                                                                             The average rates of Basel II weighting (weighted                                        parameter
                                                                                                                                                                                                                                                                                                                             risks/exposures) come to 37% for the Customer portfolio and
                                                                                                                                                                                                                                                                                                                             47% for the overall Corporate portfolio (the latter breaks                               The internal rating methodology developed from 2004 for
                                                                                                                                                                                                                                                                                                                             down into 69% for non-dealer Corporates and 40% for                                      the purposes of reassessing customer risk on a monthly
                                                                                                                                                                                                                                                                                                                             Dealers).                                                                                basis uses:
                                                                                                                                                                                                                                                                                                                             The own funds requirement for credit risk takes into                                     • a model for ranking the risk of default,
                                                                                                                                                                                                                                                                                                                             account two guarantees granted by Renault, totaling                                      • a method for quantifying the associated PD.


                                                                                                                                                                                                                                                                                                                             The following table shows how the models developed are mapped.

                                                                                                                                                                                                                                                                                                                                       EXPOSURE                           IRBA                     POPULATION GROUP                         MODEL TYPE                          KIND OF MODEL
                                                                                                                                                                                                                                                                                                                                       CATEGORY                         COUNTRY                        COVERED                         (STATISTICAL/EXPERT/                  (INTERNAL/EXTERNAL)
                                                                                                                                                                                                                                                                                                                                                                                                     BY THE MODEL                        COMBINED/OTHER)

                                                                                                                                                                                                                                                                                                                                                                       Germany
                                                                                                                                                                                                                                                                                                                                                                         Spain
                                                                                                                                                                                                                                                                                                                                                                                                           Retail
                                                                                                                                                                                                                                                                                                                               RETAIL                                                                                                        Statistical                             Internal
                                                                                                                                                                                                                                                                                                                                                                         Italy

                                                                                                                                                                                                                                                                                                                                                                        France
                                                                                                                                                                                                                                                                                                                                                                                                         Corporate
                                                                                                                                                                                                                                                                                                                                                                       Germany
                                                                                                                                                                                                                                                                                                                               SME                                       Spain                           Corporate                           Statistical                             Internal
                                                                                                                                                                                                                                                                                                                                                                         Italy
                                                                                                                                                                                                                                                                                                                                                                                                     Very large-sized                                                               Internal
                                                                                                                                                                                                                                                                                                                                                                        France                          corporate                             Combined                         + External rating
                                                                                                                                                                                                                                                                                                                               CORPORATE
                                                                                                                                                                                                                                                                                                                                                                   All subsidiaries                        Dealer                             Combined                               Internal




                                                                                                                                                                                                                                                                                                                           - 62 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                            RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              Risk ranking model                                                                              portfolio, and one non-performing (default) class; the
                                                                                                              Corporate portfolio is broken down into seven performing
              Counterparty risk is ranked using a score that incorporates                                     (non-default) classes and one non-performing (default)
              both the customer’s characteristics and his payment                                             class.
              behavior. The methodology is adjusted to each customer                                          The requirement for reliable internal rating has, however,
              typology to take into account the kind of information                                           led to a specific breakdown for each “country/customer
              available and normally used by business experts to assess                                       segment” portfolio. Thus, for any given segment, the risk
              risk.                                                                                           for any given class in France, measured by its representative
                                                                                                              PD is not the same as the risk for that same class in Spain.
              With regard to the Dealer sector, the statistical approach has
              proved harder to develop, given this portfolio’s very different                                 The calculation of the PD associated with each class takes
              granularity (several hundred Renault and Nissan dealers per                                     into account historically observed default rates. During
              country). A combined model has been developed as a result                                       the course of 2008, work was done to improve the
              of joint work carried out by the Credit Risk Division teams                                     techniques used to forecast PDs by incorporating external
              and the affiliates, which uses risk configurations defined by                                   macro-economic variables wherever and whenever
              business experts and prioritized using statistical methods.                                     significant.

              Allocation to a risk class and quantification                                                   Testing of PD models
              of the PD associated with each class
                                                                                                              The effectiveness of the models (continuing appropriateness
              The rating scales include a number of classes adjusted to                                       of risk class prioritization over time) and the quality of the
              the granularity of each portfolio. The Retail portfolio uses                                    forecasts of the PD level per class are subject to detailed
              scales with ten classes for the performing (non-default)                                        quarterly backtesting, as illustrated by the graphs hereafter.


               History of default rate by class (1 to 5)                                                       History of default rate by class (6 to 10)

                                                July 06   Dec. 08 Nov. 08                                                                      July 06   Dec. 08 Nov. 08
                                    August 06        1.6%                   Oct. 08                                                August 06
                                                                                                                                                     60%
                                                                                                                                                                           Oct. 08
                                                     1.4%                         Sept. 08                                   Sept. 06                                            Sept. 08
                              Sept. 06
                                                     1.2%                                                                                            50%                             August 08
                          Oct. 06                                                       August 08                        Oct. 06
                                                       1%                                                                                            40%
                   Nov. 06                                                                   July 08              Nov. 06                                                                   July 08
                                                     0.8%                                                                                            30%
                                                     0.6%                                                      Dec. 06                               20%                                        June 08
                Dec. 06                                                                           June 08
                                                     0.4%
                                                     0.2%                                                      Jan. 07
                                                                                                                                                     10%                                         May 08
               Jan. 07                                                                             May 08
                                                       0%                                                                                             0%
               Feb. 07                                                                             April 08   Feb. 07                                                                            April 08


               March 07                                                                           March 08    March 07                                                                          March 08


                   April 07                                                                  Feb. 08              April 07                                                                  Feb. 08

                          May 07                                                        Jan. 08                          May 07                                                       Jan. 08

                              June 07                                             Dec. 07                                    June 07                                             Dec. 07
                                      July 07                               Nov. 07                                                July 07                                 Nov. 07
                                            August 07 Sept. 07    Oct. 07                                                                August 07 Sept. 07      Oct. 07




                                       1           2        3         4             5                                              6            7        8         9            10




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 63 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             RISKS



                                                                                                                                                                                                                                                                                                                             The year 2008 was marked by an especially severe                                         receivables. On top of this, the credit crisis also had an
                                                                                                                                                                                                                                                                                                                             deterioration in the solvency of Spanish customers. In a                                 impact on the used car-market, on which repossessed cars
                                                                                                                                                                                                                                                                                                                             country whose growth had been driven by the building and                                 are sold.
                                                                                                                                                                                                                                                                                                                             public works sector, the financial crisis was immediately                                The Probability of Default and Loss Given Default models
                                                                                                                                                                                                                                                                                                                             reflected in the economy by a rise in mortgage costs, a halt
                                                                                                                                                                                                                                                                                                                                                                                                                      provided accurate or prudent forecasts for Germany, France
                                                                                                                                                                                                                                                                                                                             to new construction projects, a dramatic increase in
                                                                                                                                                                                                                                                                                                                                                                                                                      and Italy, but it emerged that the parameters applied to Spain
                                                                                                                                                                                                                                                                                                                             unemployment and a sharp increase in the number of
                                                                                                                                                                                                                                                                                                                             companies going bankrupt.                                                                were underestimated. The methodology used to estimate
                                                                                                                                                                                                                                                                                                                             This situation generated a huge increase in the number of                                Probability of Default and Loss Given Default was therefore
                                                                                                                                                                                                                                                                                                                             Retail and Corporate loans switched to “default” status and                              revised in 2008 to ensure that cyclical effects are factored in
                                                                                                                                                                                                                                                                                                                             rapidly deteriorating prospects of ever recovering defaulted                             more effectively.

                                                                                                                                                                                                                                                                                                                             Class 1 to 5 - Retail Spain
                                                                                                                                                                                                                                                                                                                              5%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Actual default rate - 09/07

                                                                                                                                                                                                                                                                                                                                                                                                                                                                      PD end 2007 (standardized method)
                                                                                                                                                                                                                                                                                                                              4%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Actual default rate - 09/08
                                                                                                                                                                                                                                                                                                                              3%                                                                                                                          ▲           PD end 2008 (revised method)

                                                                                                                                                                                                                                                                                                                              2%

                                                                                                                                                                                                                                                                                                                                                                                                                              ▲
                                                                                                                                                                                                                                                                                                                              1%
                                                                                                                                                                                                                                                                                                                                                                                               ▲

                                                                                                                                                                                                                                                                                                                                                               ▲
                                                                                                                                                                                                                                                                                                                              0% ▲
                                                                                                                                                                                                                                                                                                                                   1                           2                               3                               4                          5


                                                                                                                                                                                                                                                                                                                             Classes 6 to 10 - Retail Spain
                                                                                                                                                                                                                                                                                                                             80%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Actual default rate - 09/07
                                                                                                                                                                                                                                                                                                                             70%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      PD end 2007 (standardized method)
                                                                                                                                                                                                                                                                                                                             60%                                                                                                                           ▲
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Actual default rate - 09/08
                                                                                                                                                                                                                                                                                                                             50%
                                                                                                                                                                                                                                                                                                                                                                                                                               ▲
                                                                                                                                                                                                                                                                                                                             40%                                                                                                                                      PD end 2008 (revised method)

                                                                                                                                                                                                                                                                                                                             30%                                                               ▲

                                                                                                                                                                                                                                                                                                                             20%
                                                                                                                                                                                                                                                                                                                                                               ▲
                                                                                                                                                                                                                                                                                                                             10%
                                                                                                                                                                                                                                                                                                                                   ▲
                                                                                                                                                                                                                                                                                                                              0%
                                                                                                                                                                                                                                                                                                                                   6                            7                               8                               9                        10



                                                                                                                                                                                                                                                                                                                             6.7 Transaction – LGD (Loss Given Default)
                                                                                                                                                                                                                                                                                                                             parameters
                                                                                                                                                                                                                                                                                                                             Economic losses are estimated from discounted recovery cash                              attributable to debt collection are taken into account
                                                                                                                                                                                                                                                                                                                             flows for the Retail and Corporate sectors, and from loan                                according to the stages of management gone through.
                                                                                                                                                                                                                                                                                                                             charge-offs for the Dealer network, on the basis of                                      Analysis has been conducted to group the transactions into
                                                                                                                                                                                                                                                                                                                             data generally going back more than ten years. Charges                                   segments representative of uniform levels of loss.




                                                                                                                                                                                                                                                                                                                           - 64 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                     EXPOSURE       IRBA         POPULATION       POPULATION       TYPE OF MODEL      KIND OF MODEL              AVAILABLE               CALCULATED
                                     CATEGORY     COUNTRY           GROUP           GROUP              MODÈLE           (INTERNAL/              HISTORICAL               PARAMETERS
                                                                  COVERED        SEGMENTATION       (STATISTICAL/       EXTERNAL)                 DEPTH
                                                                BY THE MODEL                           EXPERT/
                                                                                                     COMBINED/
                                                                                                       OTHER)

                                                                                    Credit
                                                  France                                             Statistical          Internal           since 01/1997
                                                                                   Leasing
                                                                                  Credit VN
                                                                                                                                                                          LGD on
                                                 Germany                          Credit VO          Statistical          Internal           since 04/1999              non-default
                                                                   Retail          Leasing                                                                              LGD default
                       RETAIL                                                                                                                                           BEEL default
                                                                     +            Credit VN                                                  since 11/1994
                                                  Spain          Corporate        Credit VO          Statistical          Internal           since 05/1998
                                                                                   Leasing                                                   since 01/1996

                                                   Italy                            Single
                                                                                   segment           Statistical          Internal           since 04/1998

                                                                                   Stock VN
                                                     All                                                                                                                     LGD
                       CORPORATE                                                     Other         Case by case           Internal              since 1988                   BEEL
                                                 affiliates        Dealer
                                                                                   products



              The quantification of these losses by segment is the                                      taken into account, and to enable more frequent updating
              outcome of a statistical model whose main vectors are the                                 on volatile markets. The following graph confirms the very
              generational analysis of recoveries, speed of collection and                              clear influence of economic conditions on the level of LGD
              consideration of trends, using the “best estimation of                                    (monthly series over three years, from 2006 to 2008).
              expected loss” (BEEL) by monthly generation.

              As indicated previously, in 2008 more work was done on the
              quantification of LGDs, to improve the integration of cyclical
              effects whenever and wherever they had been inadequately


              Correlation between LGD and the unemployment rate
                                                                                                                     (R2 = 0.8183)
               4-month rolling LGD




                                      60%

                                      40%

                                      20%

                                       0%
                                            4%             6%               8%               10%              12%                    14%

                                                                         Unemployment rate

              Average LGD on the performing (non-default) portfolio is 35%
              for Retail and 17% for Corporates (the latter breaks down
              into 31% for non-dealer Corporate and 12% for Dealers).




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 65 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             RISKS



                                                                                                                                                                                                                                                                                                                             6.8 Internal rating monitoring procedures                                                Dealers

                                                                                                                                                                                                                                                                                                                             The results and the main data used in the internal rating                                In the Dealer segment, all counterparties are systematically
                                                                                                                                                                                                                                                                                                                             system are monitored on a monthly basis.                                                 rated. This rating system and all of its component sections
                                                                                                                                                                                                                                                                                                                             On a quarterly basis, the changes observed are analyzed,                                 are integrated into the key operational processes of
                                                                                                                                                                                                                                                                                                                             following a standard protocol. These analyses ensure that                                underwriting, management and risk monitoring.
                                                                                                                                                                                                                                                                                                                             the models are in keeping with the operational processes                                 In addition, the Basel II rating system for the Dealer segment
                                                                                                                                                                                                                                                                                                                             (underwriting and collection) and provide regular input used                             provides the teams who monitor business and risk across
                                                                                                                                                                                                                                                                                                                             to enhance rating models.                                                                the Dealer segment with all relevant data on a monthly
                                                                                                                                                                                                                                                                                                                             The differences between forecast and actual are set out in                               basis. This allows two separate types of analysis within
                                                                                                                                                                                                                                                                                                                             a report that also includes the quantified impact thereof on                             RCI Banque:
                                                                                                                                                                                                                                                                                                                             own funds requirements.
                                                                                                                                                                                                                                                                                                                                                                                                                      • Overall analysis of the Dealer network based on a number
                                                                                                                                                                                                                                                                                                                                                                                                                        of monthly reports, which provide a dynamic presentation
                                                                                                                                                                                                                                                                                                                             6.9 Operational use of internal rating                                                     of all data over the existing history;
                                                                                                                                                                                                                                                                                                                             systems
                                                                                                                                                                                                                                                                                                                                                                                                                      • Individual analysis of each counterparty, which, via
                                                                                                                                                                                                                                                                                                                             Customers                                                                                  analysis of the components of the rating system, enables
                                                                                                                                                                                                                                                                                                                                                                                                                        the quality of the counterparty to be assessed and reveals
                                                                                                                                                                                                                                                                                                                             Loan approval policy                                                                       any management incidents for the logged data.
                                                                                                                                                                                                                                                                                                                             In the Customer segment, customers applying for financing
                                                                                                                                                                                                                                                                                                                             are systematically rated. This situation pre-existed on                                  6.10 Information relating to credit risk
                                                                                                                                                                                                                                                                                                                             certain market segments, especially for private individuals,                             treated under the standard method
                                                                                                                                                                                                                                                                                                                             before Basel rating systems came in, but was implemented
                                                                                                                                                                                                                                                                                                                             across the board with the introduction of Basel II. Rating                               Credit risk exposures treated under the standard method
                                                                                                                                                                                                                                                                                                                             provides initial guidance in the decision-making process,                                consist primarily of the sales financing outstandings of
                                                                                                                                                                                                                                                                                                                             with the examination process then concentrating on                                       affiliates not treated under the AIRB method, debts towards
                                                                                                                                                                                                                                                                                                                             “intermediate” risks. Beyond the operational process, the                                credit institutions and central banks, and all other
                                                                                                                                                                                                                                                                                                                             underwriting policy is regularly adjusted in line with default                           consolidated assets that are not credit obligation assets.
                                                                                                                                                                                                                                                                                                                             rates and the analysis of the profit rates per PD and LGD
                                                                                                                                                                                                                                                                                                                             level.                                                                                   When calculating the own funds requirement for credit risk
                                                                                                                                                                                                                                                                                                                             Since the end of 2008, default rate forecasts have been                                  under the standard method, RCI Banque uses the external
                                                                                                                                                                                                                                                                                                                             stress tested to improve the assessment and anticipation of                              rating agency Moody’s to assess its sovereign and bank
                                                                                                                                                                                                                                                                                                                             the effects on risk of economic downturn, and to integrate                               exposures and complies with the mapping between Moody’s
                                                                                                                                                                                                                                                                                                                             this into each market as accurately as possible.                                         external credit assessments and those published by the
                                                                                                                                                                                                                                                                                                                                                                                                                      Banque de France.
                                                                                                                                                                                                                                                                                                                             Debt collection
                                                                                                                                                                                                                                                                                                                             The statistical models used in calculating weighted risks                                As far as the Corporate portfolio is concerned, the
                                                                                                                                                                                                                                                                                                                             and expected loss enable monthly updating of the                                         RCI Banque applies the regulatory weightings to unrated
                                                                                                                                                                                                                                                                                                                             Probability of Default used at loan approval via incorporation                           exposures. This treatment is justified by the generally
                                                                                                                                                                                                                                                                                                                             of the customer’s payment behavior. This updating, which                                 modest size of the group’s corporate customers, who do not
                                                                                                                                                                                                                                                                                                                             provides a clear overview of the expected loss on the                                    have an external assessment awarded by an accredited
                                                                                                                                                                                                                                                                                                                             portfolio as part of the “Budget process” is also increasingly                           rating agency.
                                                                                                                                                                                                                                                                                                                             used as a tool for forecasting the activity of the debt
                                                                                                                                                                                                                                                                                                                             collection platforms. “Recovery scoring” based on the same
                                                                                                                                                                                                                                                                                                                             customer information is currently being rolled out as well.




                                                                                                                                                                                                                                                                                                                           - 66 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              Segmentation of credit exposures treated under the standard method

                                                                                                                                                           CREDIT EXPOSURES TREATED
                                                                                              BANQUE DE FRANCE
                 MOODY'S RATING                                                                                                                          UNDER THE STANDARD METHOD
                                                                                                        RATING
                                                                                                                                                                IN MILLIONS OF EUROS

                 Aaa                                                                                              1                                                                 2,880
                 Less than Aaa                                                                              2 to 6                                                                    250
                 Unrated exposure                                                                                 7                                                                 7,545
                 TOTAL CREDIT EXPOSURES TREATED                                                                                                                                   10,675
                 UNDER THE STANDARD METHOD

                 * of which Corporates                                                                                                                                              3,086
                 * of which Retail                                                                                                                                                  4,462
                 * of which other exposure categories                                                                                                                               3,127




              7. MAIN BASEL II INDICATORS
              7.1 Breakdown of overall exposures (standard and advanced method)

                 in millions of euro                                                                                                          OTHER EXPOSURE
                                                                                                  CORPORATES                     RETAIL                                             TOTAL
                                                                                                                                                  CATEGORIES

                 Average credit exposures in 2008                                                      10,471                   15,952                    2,335                   28,757
                 France                                                                                  3,536                    5,075                    2,289                  10,900
                 Germany                                                                                   997                    3,243                      240                    4,480
                 Spain                                                                                     867                    2,322                       52                    3,241
                 Italy                                                                                     691                    1,181                      189                    2,061
                 United Kingdom                                                                            620                    1,257                       54                    1,931
                 Other countries                                                                         1,481                    2,512                      303                    4,296
                 CREDIT EXPOSURE BALANCE AT 31 DECEMBER 2008                                             8,192                  15,590                    3,127                   26,909
                 Residual maturity less than 3 months                                                    2,847                    1,935                    1,143                    5,925
                 from 3 months to 1 year                                                                 2,622                    2,698                      500                    5,820
                 from 1 to 5 years                                                                       2,040                  10,303                       713                  13,056
                 more than 5 years                                                                         683                      654                      771                    2,108




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 67 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             RISKS



                                                                                                                                                                                                                                                                                                                             7.2 Overall exposure to loans in default and valuation adjustments

                                                                                                                                                                                                                                                                                                                               in millions of euros                                                                                           CORPORATES                   RETAIL                TOTAL

                                                                                                                                                                                                                                                                                                                               France                                                                                                                   128                  293                   421
                                                                                                                                                                                                                                                                                                                               Germany                                                                                                                  121                    65                  186
                                                                                                                                                                                                                                                                                                                               Spain                                                                                                                     50                  162                   212
                                                                                                                                                                                                                                                                                                                               Italy                                                                                                                     50                    47                   97
                                                                                                                                                                                                                                                                                                                               United Kingdom                                                                                                            11                    73                   84
                                                                                                                                                                                                                                                                                                                               Other countries                                                                                                          109                    79                  188
                                                                                                                                                                                                                                                                                                                               Total exposures to payments in arrears or in default                                                                     469                  718                1,188
                                                                                                                                                                                                                                                                                                                                                                       31 December 2007
                                                                                                                                                                                                                                                                                                                               Balance of valuation adjustments on the balance sheet                                                                    188                  489                   677
                                                                                                                                                                                                                                                                                                                               Balance of collective provisions on the balance sheet                                                                     43                    45                   88
                                                                                                                                                                                                                                                                                                                               Total balance of collective provisions and valuation adjustments                                                         231                  534                   765
                                                                                                                                                                                                                                                                                                                                                                       31 December 2008
                                                                                                                                                                                                                                                                                                                               Balance of valuation adjustments on the balance sheet                                                                    187                  634                   821
                                                                                                                                                                                                                                                                                                                               Balance of collective provisions on the balance sheet                                                                     54                    33                   87
                                                                                                                                                                                                                                                                                                                               Total balance of collective provisions and valuation adjustments                                                         241                  667                   908

                                                                                                                                                                                                                                                                                                                               EFFECTIVE VALUATION ADJUSTMENTS FOR THE PERIOD                                                                            10                  133                   143


                                                                                                                                                                                                                                                                                                                             Exposures in default and valuation adjustments for the “other exposure categories” are negligible.


                                                                                                                                                                                                                                                                                                                             7.3 Segmentation of credit exposures treated under the AIRB method

                                                                                                                                                                                                                                                                                                                               in millions of euros                                                                                                                    RETAIL
                                                                                                                                                                                                                                                                                                                                                                                                                                            CORPORATE                                            TOTAL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                   CUSTOMERS
                                                                                                                                                                                                                                                                                                                               PD < 1%                                                                                                             583                   5,997                   6,580
                                                                                                                                                                                                                                                                                                                               1% < = PD < 5%                                                                                                    1,143                   2,956                   4,099
                                                                                                                                                                                                                                                                                                                               5% < = PD < 10%                                                                                                   1,184                     833                   2,017
                                                                                                                                                                                                                                                                                                                               10% < = PD < 20%                                                                                                    720                     308                   1,028
                                                                                                                                                                                                                                                                                                                               20% < = PD < 100%                                                                                                 1,131                     510                   1,641
                                                                                                                                                                                                                                                                                                                               PD = 100%                                                                                                           346                     523                     869
                                                                                                                                                                                                                                                                                                                               CREDIT EXPOSURES TREATED UNDER THE AIRB METHOD (A)                                                                5,107                 11,127                  16,234

                                                                                                                                                                                                                                                                                                                               LGD rate                                                                                                            17%                     37%                    31%
                                                                                                                                                                                                                                                                                                                               Weighted exposures (B)                                                                                            2,417                   4,172                  6,589
                                                                                                                                                                                                                                                                                                                               Average weighting rate (B) / (A)                                                                                    47%                     37%                    41%




                                                                                                                                                                                                                                                                                                                           - 68 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              CREDIT RISK
              1. ORGANIZATION OF
              THE CREDIT RISK DIVISION


                                                                                           Credit Risk
                                                                                            Division




                        Methodology                                                    Customer Risk                                                          Dealer
                         and Rating                                                      Oversight                                                          Financings


                                                 Reporting & Basel II                                                      Corporate
                                                   Expertise Unit                                                        Commitments




              The Reporting and Basel II Expertise Unit brings together                                 introduction of comprehensive financing offerings for
              IT and credit risk skills under the same functional                                       distribution networks, and the dissemination of risk
              responsibility, to ensure the production of the European                                  management and monitoring tools and methods to affiliates.
              solvency ratio, to handle regulatory projects and to manage
              credit risk reporting.                                                                    The role of the Corporate Commitments department is to
                                                                                                        rule on Dealer and Corporate financing applications that go
              The Customer Risk Oversight (Retail and Corporate)                                        beyond the delegation limits set per country and to make
              department defines Customer risk management standards                                     sure that approval rules are implemented accordingly. It
              and methods and makes sure that they are implemented in                                   trains and advises head office and affiliate teams with
              the group’s subsidiaries. Its remit also includes monitoring
                                                                                                        respect to the analysis of Corporate and Dealer risk, and
              subsidiaries’ cost of risk and proposing or validating action
                                                                                                        monitors major risks.
              plans aimed at achieving the targets set.
                                                                                                        The Credit Risk Committees in the countries monitor risk
              The Methodology and Rating department develops and
              monitors the performance of the PD and LGD statistical                                    indicators to provide guidance for local approval and
              models used from loan approval onwards and for the                                        recovery policies.
              purposes of credit risk oversight. It is also in charge of the
              operational management of approval systems in certain                                     The Corporate Credit Risk Committee defines management
              countries.                                                                                standards and processes and validates the action plans
                                                                                                        submitted by the countries.
              The Dealer Financings department is in charge of running                                  The remit of the Corporate Commitments Committee is to
              and overseeing the said activity, through the provision of                                accept loan applications that do not fall within the Credit
              support for the international development of brands, the                                  Risk Division’s delegation limits.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 69 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             RISKS



                                                                                                                                                                                                                                                                                                                             2. CREDIT RISK MANAGEMENT POLICY                                                         The year 2008 was marked by the arrival of a financial and
                                                                                                                                                                                                                                                                                                                                                                                                                      economic crisis that very quickly spread to the car markets.
                                                                                                                                                                                                                                                                                                                             2.1 Customer risk management                                                             Over the first four months of the year, the global market saw
                                                                                                                                                                                                                                                                                                                                                                                                                      growth, with stability on the European market and strong
                                                                                                                                                                                                                                                                                                                             The customer credit risk prevention policy is aimed at                                   growth on the main emerging markets. The Spanish and
                                                                                                                                                                                                                                                                                                                             ensuring that the cost-of-risk objectives set as part of the                             Italian markets showed the first signs of stalling.
                                                                                                                                                                                                                                                                                                                             budget process for each country and each of its main                                     From May to September, market decline spread in Europe,
                                                                                                                                                                                                                                                                                                                             markets (new passenger vehicles and used passenger                                       especially in the United Kingdom and from October onwards,
                                                                                                                                                                                                                                                                                                                             vehicles segment, and the corporate segment) are achieved.                               the fall was widespread.
                                                                                                                                                                                                                                                                                                                             To this end, the underwriting policy is adjusted and the tools                           RCI Banque’s dealer financing policy was greatly affected by
                                                                                                                                                                                                                                                                                                                                                                                                                      the breakdown of the markets and by the necessary action
                                                                                                                                                                                                                                                                                                                             (scores and other rules) regularly optimized.
                                                                                                                                                                                                                                                                                                                                                                                                                      taken on car manufacturer invoicing to limit dealership
                                                                                                                                                                                                                                                                                                                             The resources and strategy implemented for the collection of
                                                                                                                                                                                                                                                                                                                                                                                                                      inventory levels.
                                                                                                                                                                                                                                                                                                                             delinquent receivables or receivables in default are also
                                                                                                                                                                                                                                                                                                                                                                                                                      Dealer outstandings were thus reduced by 20% over the last
                                                                                                                                                                                                                                                                                                                             adjusted in line with the type of customer segment and the
                                                                                                                                                                                                                                                                                                                                                                                                                      three months of the year.
                                                                                                                                                                                                                                                                                                                             difficulties encountered. The process of contract termination
                                                                                                                                                                                                                                                                                                                                                                                                                      RCI Banque is maintaining its policy of supporting car
                                                                                                                                                                                                                                                                                                                             may also be speeded up if in the very short term there is a
                                                                                                                                                                                                                                                                                                                                                                                                                      makers and their distribution networks by providing
                                                                                                                                                                                                                                                                                                                             risk that the receivable might become impossible to recover.
                                                                                                                                                                                                                                                                                                                                                                                                                      appropriate financing solutions. As such, managing
                                                                                                                                                                                                                                                                                                                                                                                                                      inventories and ensuring they are at appropriate levels for
                                                                                                                                                                                                                                                                                                                             2.2 Dealer risk management                                                               current market conditions will remain one of the priorities for
                                                                                                                                                                                                                                                                                                                                                                                                                      RCI Banque in 2009.
                                                                                                                                                                                                                                                                                                                             The dealer credit risk prevention policy is aimed at ensuring
                                                                                                                                                                                                                                                                                                                             that the cost-of-risk objectives set as part of the budget
                                                                                                                                                                                                                                                                                                                                                                                                                      In the Customer financing sector, the liquidity crisis also
                                                                                                                                                                                                                                                                                                                             process for each country are achieved.
                                                                                                                                                                                                                                                                                                                                                                                                                      impacted on the credit risk policy, which was tightened up
                                                                                                                                                                                                                                                                                                                                                                                                                      to varying degrees, depending on each business’s
                                                                                                                                                                                                                                                                                                                             At the level of each individual subsidiary, the Dealer sector                            refinancing conditions and on the credit risk forecast in each
                                                                                                                                                                                                                                                                                                                             is monitored continuously and daily by means of short and                                country. Risk management was also marked by the active
                                                                                                                                                                                                                                                                                                                             long-term indicators, which identify very early on any                                   management of customer risk in Spain.
                                                                                                                                                                                                                                                                                                                             business presenting a risk of partial or full non-recovery.
                                                                                                                                                                                                                                                                                                                             Customers identified as risky are classified and given                                   For the RCI Banque group as a whole, the aggregate cost of
                                                                                                                                                                                                                                                                                                                             delinquent, pre-alert or alert status and are then reviewed                              risk in 2008 amounted to 0.86% of average performing loans
                                                                                                                                                                                                                                                                                                                             at risk committee meetings within the subsidiaries, which                                outstanding, compared with 0.78% in 2007.
                                                                                                                                                                                                                                                                                                                             bring together local car maker and RCI Banque managements
                                                                                                                                                                                                                                                                                                                             connected with the network, to decide on action plans and
                                                                                                                                                                                                                                                                                                                             precautionary measures to control risks.                                                 4. CUSTOMER RISK
                                                                                                                                                                                                                                                                                                                                                                                                                      In 2008, the cost of risk on customer financing stood at 1%
                                                                                                                                                                                                                                                                                                                             3. 2008 OVERVIEW                                                                         of average performing loans, up considerably on the cost
                                                                                                                                                                                                                                                                                                                                                                                                                      recorded in 2007 (0.7%). Results were marked by a striking
                                                                                                                                                                                                                                                                                                                             In 2008, further to Renault’s takeover of distribution in                                contrast between Spain, which was hit head-on by the
                                                                                                                                                                                                                                                                                                                             Denmark, Finland, Norway and Sweden, dealer-financing                                    property and financial crisis and whose cost of risk
                                                                                                                                                                                                                                                                                                                                                                                                                      amounted to 3.1% of outstandings, and the rest of the
                                                                                                                                                                                                                                                                                                                             solutions were introduced in these countries from a
                                                                                                                                                                                                                                                                                                                                                                                                                      subsidiaries, who posted a cost of risk at 0.6%.
                                                                                                                                                                                                                                                                                                                             subsidiary based in Stockholm.
                                                                                                                                                                                                                                                                                                                             Similarly, the Polish subsidiary extended its financing                                  In Spain, the impact of the economic crisis was even more
                                                                                                                                                                                                                                                                                                                             offering to the distribution networks in the three Baltic                                hard-hitting in that sales in the automobile sector had been
                                                                                                                                                                                                                                                                                                                             countries.                                                                               driven by the property boom. The explosion of
                                                                                                                                                                                                                                                                                                                             A new brand, Infiniti, was added to RCI Banque’s offering.                               unemployment, which year-on-year went up from 8% to 12%
                                                                                                                                                                                                                                                                                                                             In accordance with its policy, RCI Banque is gradually                                   of the working population, led not only to a strong increase
                                                                                                                                                                                                                                                                                                                             assuming the risk on distribution networks so as to ensure                               in doubtful loans, but also to a strong deterioration in the
                                                                                                                                                                                                                                                                                                                             control over its risk.                                                                   prospects of ever recovering those receivables. Despite a




                                                                                                                                                                                                                                                                                                                           - 70 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              very much tighter underwriting policy for both private
              individuals and business customers, and the considerable
              reinforcement of tools and human resources in the debt
              collection chain, the outlook for 2009 is still negative.

              In most countries, risk remained moderate and in line with
              expectations. A number of provision adjustments were again
              made for RCI Banque UK further to the takeover of RFS
              outstandings in the middle of 2007. The current economic
              downturn, which was not visible in the advanced indicators
              at year-end 2008, is the subject of preventive measures
              adjusted on a market-by-market basis.
              On markets outside Europe, the year 2008 was marked by
              a sharp improvement in risk in Brazil, with all underwriting
              and recovery quality indicators at an excellent level by the
              end of 2008. In South Korea, the country’s high exposure to
              the international economic downturn led to adjustments in
              the underwriting policy throughout the year, and to stronger
              preventive measures along the recovery chain.

              Doubtful loan amounts increased year-on-year from 3.4% to
              4.4% of total receivables, as a result of the impact of Spain.
              The provisioning rate for these outstandings stood at 73%
              at year-end 2008 (compared with 69% at year-end 2007),
              with doubtful loan provisioning for Spain standing at the
              relatively high level of 78%, in view of the recovery
              difficulties observed.


              5. DEALER RISK
              In 2008, the cost of risk on Dealer financing stood at 0.45%
              of average performing outstandings, a considerably lower
              level than in 2007 (0.55%).

              As a result of its high quality risk monitoring and knowledge
              of its networks, RCI Banque was able to control the cost of
              risk despite a particularly difficult market environment for
              distribution networks.
              Despite the drastic fall of the Spanish and Italian markets,
              RCI Banque made no losses on the Renault and Nissan
              networks in these two countries in 2008.
              On the other hand, there were a number of dealership
              collapses in the United Kingdom and Netherlands, including
              a number of major multi-brand groups.
              Over the whole of its scope, RCI Banque has made a number
              of adjustments to its provisions to make allowances
              for the fragility of businesses that have been identified
              as particularly sensitive, given the declining market
              environment. Controls, preventive measures and/or
              guarantees have been reinforced.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 71 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             RISKS


                                                                                                                                                                                                                                                                                                                             FINANCIAL RISKS
                                                                                                                                                                                                                                                                                                                             Essentially all of the transactions in financial instruments                             Details of financial risks and their specific control system
                                                                                                                                                                                                                                                                                                                             carried out by the RCI Banque holding company are related                                are described in the management report notes (see p. 120
                                                                                                                                                                                                                                                                                                                             to its function as centralized refinancing office for the                                Management Report, apendic 2 Notes to the consolidated
                                                                                                                                                                                                                                                                                                                             RCI Banque group.                                                                        financial statements).

                                                                                                                                                                                                                                                                                                                             The soundness of RCI Banque’s balance sheet is especially
                                                                                                                                                                                                                                                                                                                             underpinned by the control and management of market risks.
                                                                                                                                                                                                                                                                                                                             Aggregate liquidity, interest-rate, currency and counterpart
                                                                                                                                                                                                                                                                                                                             risk is managed daily on a consolidated basis.




                                                                                                                                                                                                                                                                                                                             R I S K S O N R E S I D U A L VA L U E S
                                                                                                                                                                                                                                                                                                                             Breakdown of risk related to residual values

                                                                                                                                                                                                                                                                                                                                                                                                        RESIDUAL VALUES                                   PROVISION FOR RESIDUAL VALUES
                                                                                                                                                                                                                                                                                                                                in thousands of euros
                                                                                                                                                                                                                                                                                                                                                                                           2008          2007           2006           2005          2008           2007           2006          2005

                                                                                                                                                                                                                                                                                                                                Corporate segment:                                     133,066        160,932        222,038       333,119          19,560        15,681         21,882         26,390
                                                                                                                                                                                                                                                                                                                                France                                                        70           158            883         3,086              70           158            476           530
                                                                                                                                                                                                                                                                                                                                European Union (excluding France)                      132,996        160,774        221,155       330,033          19,490        15,523         21,406         25,860
                                                                                                                                                                                                                                                                                                                                Europe (excluding European Union)                               0             0              0              0             0              0              0             0

                                                                                                                                                                                                                                                                                                                                Retail segment:                                        189,225        279,993        201,813       301,395           1,468          1,917         1,460          2,250
                                                                                                                                                                                                                                                                                                                                European Union (excluding France)                      189,225        279,993        201,813       301,395           1,468          1,917         1,460          2,250
                                                                                                                                                                                                                                                                                                                                TOTAL RISK RELATED TO RESIDUAL VALUES                  322,291        440,925       423,851        634,514         21,028         17,598         23,342        28,640




                                                                                                                                                                                                                                                                                                                             Risk related to residual values not carried by the RCI Banque group

                                                                                                                                                                                                                                                                                                                                                                                                        RESIDUAL VALUES
                                                                                                                                                                                                                                                                                                                                in millions of euros
                                                                                                                                                                                                                                                                                                                                                                                          2008           2007           2006          2005

                                                                                                                                                                                                                                                                                                                                Corporate and Retail segments:
                                                                                                                                                                                                                                                                                                                                Commitments received from
                                                                                                                                                                                                                                                                                                                                                                                             959           915          1,011            636
                                                                                                                                                                                                                                                                                                                                the Renault Group
                                                                                                                                                                                                                                                                                                                                Commitments received from others
                                                                                                                                                                                                                                                                                                                                                                                          2,025          1,574          1,649         1,706
                                                                                                                                                                                                                                                                                                                                (Dealer and Customer)
                                                                                                                                                                                                                                                                                                                                TOTAL RISK RELATED TO RESIDUAL VALUES                     2,984          2,489         2,660          2,342




                                                                                                                                                                                                                                                                                                                           - 72 - BUSINESS REPORT 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                  RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
              INSURANCE
              PROPERTY & CASUALTY, BUSINESS INTERRUPTION AND CIVIL LIABILITY
              Property & casualty, business                                                             Civil liability
              interruption
                                                                                                        Civil operating liability (company officer’s liability) of the
              RCI Banque’s French companies are affiliated with the                                     French affiliates is covered under a policy taken out by the
              Renault Group’s worldwide program of insurance against                                    RCI Banque group, with a rider extending professional
              property damage and business interruptions. Self-insurance                                liability to those business activities in which such coverage
              is a significant component of this program because                                        is necessary (long-term rentals and vehicle fleet
              deductibles are high for each type of coverage (€20,000 for                               management services).
              property damage and three days of production for business
              interruptions). The self-insurance component entails a risk                               Changes in the regulations have led to compliance with new
              prevention policy:                                                                        insurance intermediation requirements, in particular the
                                                                                                        need to extend the scope of mandatory coverage (Civil
              • implementation of effective safety and security systems;                                Liability and Financial Guarantee) at the national and
              • staff training to heighten employees’ awareness of their                                international levels for insurance products attached to
                role in preventing damage to property;                                                  financing and rental products.

              • installation of back-up facilities to keep operations going,
                inasmuch as production by the group depends heavily on
                properly functioning IT systems.

              The RCI Banque group’s foreign affiliates negotiate
              insurance policies with local insurance companies, which
              are subject to monitoring by centralized functions to ensure
              that they are appropriate and adequately capture the risks
              to be covered.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS REPORT 2008 - 73 -
MANAGEMENT REPORT 2008
STATUTORY AUDITORS’ REPORT
ON THE CONSOLIDATED FINANCIAL STATEMENTS




                                                                                                                                                                             RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
           DELOITTE & ASSOCIÉS                                                                   ERNST & YOUNG AUDIT
         185, avenue Charles-de-Gaulle - BP 136                                                Faubourg de l’Arche - 11, allée de l’Arche
              92524 Neuilly-sur-Seine Cedex                                                         92037 Paris-La Défense Cedex
            S.A. with share capital €1,723,040                                                        S.A.S. with variable capital
            Statutory Auditor                                                                      Statutory Auditor
 Member, Compagnie Régionale de Versailles                                              Member, Compagnie Régionale de Versailles


RCI Banque                                                                            II. JUSTIFICATION OF ASSESSMENTS
Year ended December 31, 2008                                                          The accounting estimates used to prepare the consolidated
                                                                                      financial statements for year ended December 31, 2008 have
Statutory Auditors’ report on                                                         been made taking into account the current environment of
the Consolidated Financial Statements                                                 future economic uncertainty. The circumstances are duly
                                                                                      disclosed in note 4. In this connection and in accordance with
                                                                                      the requirements of article L. 823-9 of the French commercial
To the shareholders,
                                                                                      code (Code de Commerce) relating to the justification of our
In compliance with the assignment entrusted to us by your                             assessments, we bring to your attention the following matters :
shareholders' meetings, we hereby report to you for the year                          Accounting estimates
ended December 31, 2008, on:
                                                                                      As disclosed in paragraph 2-D of the notes to the
• the audit of the accompanying consolidated financial                                consolidated financial statements, your company sets aside
  statements of RCI Banque;                                                           allowances to cover the credit risks inherent to its business
                                                                                      operations.
• the justification of our assessments;
• the specific verification required by French law.                                   As part of our assessment of the significant estimates used
                                                                                      to prepare the consolidated financial statements, we have
These consolidated financial statements have been                                     reviewed the processes implemented by management and, in
approved by the Board of Directors. Our role is to express an                         view of the financial crisis, the adjustments thus made in
opinion on these financial statements based on our audit.                             order to identify and assess these risks and to determine the
                                                                                      extent to which provisions are recognized on the asset or
                                                                                      liability side of the balance sheet.
I. OPINION ON THE FINANCIAL STATEMENTS                                                We assessed the analysis of risks incurred based on a
                                                                                      sample of individual borrowers and, for a sample of portfolios
We conducted our audit in accordance with the professional                            evaluated collectively, the data and variables used by the
standards applicable in France, those standards require that                          company in documenting its estimates.
we plan and perform the audit to obtain reasonable                                    These assessments were made as part of our audit of the
assurance about whether the consolidated financial                                    consolidated financial statements taken as a whole and,
statements are free of material misstatement. An audit                                therefore, served in forming our audit opinion expressed in
includes verifying, by audit sampling and other selective                             the first part of this report.
testing procedures, evidence supporting the amounts and
disclosures in the consolidated financial statements. An                              III. SPECIFIC VERIFICATION
audit also includes assessing the accounting principles                               We have also verified the information given in the group
used, the significant estimates made by the management,                               management report as required by French law.
and the overall financial statements presentation. We
                                                                                      We have no matters to report regarding its fair presentation
believe that the evidence we have gathered in order to form
                                                                                      and conformity with the consolidated financial statements.
our opinion is adequate and relevant.

In our opinion, the financial statements give a true and fair                         Neuilly-sur-Seine & Paris-La Défense, 17 February 2009
view of the assets, liabilities, financial position and results
of the consolidated group in accordance with the accounting                           The Statutory Auditors
rules and principles applicable under IFRS, as adopted by                             DELOITTE & ASSOCIÉS                                 ERNST & YOUNG AUDIT
the European Union.                                                                   Damien Leurent                                          Micha Missakian




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MANAGEMENT REPORT 2008 - 77 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             CONSOLIDATED FINANCIAL STATEMENTS
                                                                                                                                                                                                                                                                                                                             C O N S O L I D AT E D B A L A N C E S H E E T


                                                                                                                                                                                                                                                                                                                               ASSETS - in millions of euros                                                                                              NOTES          12/2008          12/2007

                                                                                                                                                                                                                                                                                                                               Cash and balances at central banks and PCAs                                                                                                   356              592
                                                                                                                                                                                                                                                                                                                               Derivatives                                                                                                                  2                498              176
                                                                                                                                                                                                                                                                                                                               Financial assets available for sale and other financial assets                                                               3                 18               40
                                                                                                                                                                                                                                                                                                                               Amounts receivable from credit institutions                                                                                  4                691              629
                                                                                                                                                                                                                                                                                                                               Loans and advances to customers                                                                                            5&6             20,713           23,295
                                                                                                                                                                                                                                                                                                                               Operating lease transactions                                                                                               5&6                204              254
                                                                                                                                                                                                                                                                                                                               Adjustment accounts - Assets                                                                                                 7                469              625
                                                                                                                                                                                                                                                                                                                               Interests in associates                                                                                                      8                 23               21
                                                                                                                                                                                                                                                                                                                               Tangible and intangible non-current assets                                                                                   9                 33               38
                                                                                                                                                                                                                                                                                                                               Goodwill                                                                                                                    10                 62               68
                                                                                                                                                                                                                                                                                                                               TOTAL ASSETS                                                                                                                              23,067            25,738



                                                                                                                                                                                                                                                                                                                               LIABILITIES AND EQUITY - in millions of euros                                                                              NOTES          12/2008           12/2007

                                                                                                                                                                                                                                                                                                                               Derivatives                                                                                                                    2              278              156
                                                                                                                                                                                                                                                                                                                               Amounts payable to credit institutions                                                                                      11.2            5,754            4,258
                                                                                                                                                                                                                                                                                                                               Amounts payable to customers                                                                                                11.3              660              534
                                                                                                                                                                                                                                                                                                                               Debt evidenced by certificates                                                                                              11.4           12,896           17,005
                                                                                                                                                                                                                                                                                                                               Adjustment accounts - Liabilities                                                                                            13               931              963
                                                                                                                                                                                                                                                                                                                               Provisions                                                                                                                   14                98              120
                                                                                                                                                                                                                                                                                                                               Subordinated debt - Liabilities                                                                                              16               262              272
                                                                                                                                                                                                                                                                                                                               Equity                                                                                                                                      2,188            2,430
                                                                                                                                                                                                                                                                                                                               • Equity - group shareholders                                                                                                               2,184             2,426
                                                                                                                                                                                                                                                                                                                                 Share capital and attributable reserves                                                                                                     814               814
                                                                                                                                                                                                                                                                                                                                 Consolidated reserves and other                                                                                                           1,271             1,256
                                                                                                                                                                                                                                                                                                                                 Unrealized or deferred gains and losses                                                                                                   (215)                40
                                                                                                                                                                                                                                                                                                                                 Net income for the year                                                                                                                     314               316
                                                                                                                                                                                                                                                                                                                               • Equity - minority interests                                                                                                                   4                 4
                                                                                                                                                                                                                                                                                                                               TOTAL LIABILITIES & EQUITY                                                                                                                23,067            25,738




                                                                                                                                                                                                                                                                                                                           - 78 - MANAGEMENT REPORT 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                             RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OFF-BALANCE-SHEET ITEMS


 in millions of euros                                                                                                       NOTES          12/2008           12/2007

 Commitments given                                                                                                              20           3,215             2,682
 Financing commitments given                                                                                                                 3,080             2,586
 Guarantee commitments                                                                                                                                             1
 Commitments on securities                                                                                                                      134               94
 Other commitments given                                                                                                                          1                1
 Commitments received                                                                                                           21          10,109           10,342
 Financing commitments received                                                                                                              4,878             5,600
 Guarantee commitments                                                                                                                       5,231             4,722
 Other commitments received                                                                                                                                       20




C O N S O L I D AT E D I N C O M E S TAT E M E N T

 in millions of euros                                                                                                       NOTES          12/2008           12/2007

 Interest and similar income                                                                                                    23           2,101             1,992
 Interest expenses and similar charges                                                                                          24         (1,242)           (1,112)
 Fees and commission income                                                                                                                      31                26
 Fees and commission expenses                                                                                                                   (6)               (5)
 Net gains (losses) on financial instruments at fair value through profit or loss                                               25                6                 1
 Net gains (losses) on AFS securities and other financial assets                                                                26              (2)               (1)
 Net income (expense) of other activities                                                                                       27             152               129
 NET BANKING INCOME                                                                                                                          1,040             1,030
 General operating expenses                                                                                                     28           (356)             (412)
 Depreciation and impairment losses on tangible and intangible assets                                                                         (10)              (11)
 GROSS OPERATING INCOME                                                                                                                        674               607
 Cost of risk                                                                                                                   29           (197)             (155)
 OPERATING INCOME                                                                                                                              477               452
 Share of net income of equity method companies                                                                                  8                6                 7
 Gains less losses on non-current assets                                                                                                        (1)                 1
 PRE-TAX INCOME                                                                                                                                482               460
 Income tax                                                                                                                     30           (157)             (138)
 NET INCOME                                                                                                                                    325               322
 Of which net income attributable to minority interests                                                                                         11                6
          net income attributable to group shareholders                                                                                       314              316
 Earnings per share, RCI group share in euros                                                                                               314.22           315.71




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MANAGEMENT REPORT 2008 - 79 -
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                                                                                                                                                                             CONSOLIDATED FINANCIAL STATEMENTS
                                                                                                                                                                                                                                                                                                                             C O N S O L I D AT E D S TAT E M E N T O F C H A N G E S
                                                                                                                                                                                                                                                                                                                             IN EQUITY

                                                                                                                                                                                                                                                                                                                                                                                 Share        Attribut.      Consolid.    Translation     unrealized            Net       Equity –       Equity –            Total
                                                                                                                                                                                                                                                                                                                                                                                capital       reserves        reserves        adjust.     or defered        income          group        minority    Consolidated
                                                                                                                                                                                                                                                                                                                               in millions of euros                                                 (2)                            (3)           P&L          group         share       interests          equity
                                                                                                                                                                                                                                                                                                                                                                                     (1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                  (4)         share                            (5)


                                                                                                                                                                                                                                                                                                                               Equity at 31 December 2006                         100            714           1,201              15             74           305          2,409                5          2,414
                                                                                                                                                                                                                                                                                                                               Appropriation of net income
                                                                                                                                                                                                                                                                                                                                                                                                                  305                                       (305)
                                                                                                                                                                                                                                                                                                                               of prior year

                                                                                                                                                                                                                                                                                                                               Equity at 1 January 2007                           100            714           1,506              15             74                        2,409                5          2,414
                                                                                                                                                                                                                                                                                                                               Change in value of financial
                                                                                                                                                                                                                                                                                                                               instruments and non-current assets                                                                              (19)                          (19)                            (19)
                                                                                                                                                                                                                                                                                                                               recognized in equity
                                                                                                                                                                                                                                                                                                                               Actuarial differences on
                                                                                                                                                                                                                                                                                                                                                                                                                                                (1)                           (1)                              (1)
                                                                                                                                                                                                                                                                                                                               defined-benefit pension plans
                                                                                                                                                                                                                                                                                                                               Translation differences                                                                          (29)                                         (29)                            (29)
                                                                                                                                                                                                                                                                                                                               Net income for the year
                                                                                                                                                                                                                                                                                                                                                                                                                                                              316            316                6             322
                                                                                                                                                                                                                                                                                                                               (before appropriation)
                                                                                                                                                                                                                                                                                                                               Total income and expense
                                                                                                                                                                                                                                                                                                                                                                                                                                (29)           (20)           316            267                6            273
                                                                                                                                                                                                                                                                                                                               accounted for in the period
                                                                                                                                                                                                                                                                                                                               Effect of acquisitions, disposals
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                5                5
                                                                                                                                                                                                                                                                                                                               and change in share capital
                                                                                                                                                                                                                                                                                                                               Dividend for the year                                                           (250)                                                       (250)             (3)           (253)
                                                                                                                                                                                                                                                                                                                               Commitment to buy out
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (9)               (9)
                                                                                                                                                                                                                                                                                                                               minority interests

                                                                                                                                                                                                                                                                                                                               Equity at 31 December 2007                         100            714           1,256            (14)             54           316          2,426                4          2,430
                                                                                                                                                                                                                                                                                                                               Appropriation of net income
                                                                                                                                                                                                                                                                                                                                                                                                                  316                                       (316)
                                                                                                                                                                                                                                                                                                                               of previous year

                                                                                                                                                                                                                                                                                                                               Equity at 1 January 2008                           100            714           1,572            (14)             54                        2,426                4          2,430
                                                                                                                                                                                                                                                                                                                               Change in value of financial
                                                                                                                                                                                                                                                                                                                               instruments and non-current assets                                                  (1)                       (125)                         (126)                           (126)
                                                                                                                                                                                                                                                                                                                               recognized in equity
                                                                                                                                                                                                                                                                                                                               Translation differences                                                                        (130)                                        (130)            (18)           (148)
                                                                                                                                                                                                                                                                                                                               Net income for the year
                                                                                                                                                                                                                                                                                                                                                                                                                                                              314            314              11              325
                                                                                                                                                                                                                                                                                                                               (before appropriation)
                                                                                                                                                                                                                                                                                                                               Total income and expense
                                                                                                                                                                                                                                                                                                                                                                                                                   (1)        (130)          (125)            314              58            (7)               51
                                                                                                                                                                                                                                                                                                                               accounted for in the period
                                                                                                                                                                                                                                                                                                                               Effect of acquisitions, disposals
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              66               66
                                                                                                                                                                                                                                                                                                                               and change in share capital
                                                                                                                                                                                                                                                                                                                               Dividend for the year                                                           (300)                                                       (300)             (2)           (302)
                                                                                                                                                                                                                                                                                                                               Commitment to buy out
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (57)             (57)
                                                                                                                                                                                                                                                                                                                               minority interests

                                                                                                                                                                                                                                                                                                                               Equity at 31 December 2008                         100            714           1,271          (144)            (71)           314          2,184                4          2,188


                                                                                                                                                                                                                                                                                                                             (1) The share capital of RCI Banque S.A. (€100m) consists of 1,000,000 fully paid shares with par value of €100 each, of which 999,993 shares are owned by Renault s.a.s.
                                                                                                                                                                                                                                                                                                                             (2) Attributable reserves include the share premium account of the parent company.
                                                                                                                                                                                                                                                                                                                             (3) The change in translation adjustments at 31 December 2008 relates primarily to the United Kingdom and to South Korea. At 31 December 2007, the change mainly related to the United
                                                                                                                                                                                                                                                                                                                                 Kingdom.
                                                                                                                                                                                                                                                                                                                             (4) Includes changes in the fair value of derivatives used as cash flow hedges. Since 1 January 2008, the IAS 39 actuarial gains and losses and IFRS 3 revaluations are now listed under
                                                                                                                                                                                                                                                                                                                                 “unrealized or deferred gains/losses” rather than under “consolidated reserves”. This reclassification has had no significant impact on the accounts at 31 December 2007 and
                                                                                                                                                                                                                                                                                                                                 31 December 2008.
                                                                                                                                                                                                                                                                                                                             (5) Minority interests at 31 December 2008 consisted essentially of the stake held in Cogera held by Renault s.a.s.




                                                                                                                                                                                                                                                                                                                           - 80 - MANAGEMENT REPORT 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                             RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C O N S O L I D AT E D C A S H F L O W S TAT E M E N T


  in millions of euros                                                                                                                     12/2008           12/2007

  Net income attributable to group shareholders                                                                                                314               316
  Depreciation and amortization of tangible and intangible non-current assets                                                                     8                10
  Net allowance for impairment and provisions                                                                                                  148                 59
  Share of net income of associates                                                                                                             (6)               (7)
  Deferred tax income (expense)                                                                                                                  13             (17)
  Net loss (gain) from investing activities                                                                                                       1
  Income attributable to minority interests                                                                                                      11                 6
  Other gains (losses) on derivatives at fair value through profit and loss)                                                                    (6)
  Cash flow                                                                                                                                     483              367
  Other movements (accrued receivables and payables)                                                                                           (92)               32
  Total non-monetary items included in net income and other adjustments                                                                         77                83
  Cash flows on transactions with credit institutions                                                                                        1,502             (441)
     - Increases (decreases) in Amounts receivable from credit institutions                                                                   (73)              (14)
     - Increases (decreases) in Amounts payable to credit institutions                                                                       1,575             (427)
  Cash flows on transactions with customers                                                                                                  1,939               423
     - Increases (decreases) in amounts receivable from customers                                                                            1,813               510
     - Increases (decreases) in Amounts payable to customers                                                                                   126              (87)
  Cash flows on other transactions affecting financial assets and liabilities                                                              (4,157)              (95)
     - Inflows (outflows) related to AFS securities and similar                                                                                 15              (11)
     - Inflows (outflows) related to debts evidenced by certificates                                                                       (4,161)               180
     - Inflows (outflows) related to collections                                                                                              (11)             (264)
  Cash flows on other transactions affecting non-financial assets and liabilities                                                              437               195
  Net decrease (increase) in assets and liabilities resulting from operating activities                                                      (279)                82
  Net cash generated by operating activities (A)                                                                                               112               481
  Flows related to financial assets and investments                                                                                             (6)             (53)
  Flows related to tangible and intangible non-current assets                                                                                   (6)              (8)
  Net cash from / (used by) investing activities (B)                                                                                           (12)             (61)
  Net cash from/(to) shareholders                                                                                                            (236)             (248)
      - Dividends paid                                                                                                                       (302)             (253)
      - Inflows (outflows) related to minority shareholders                                                                                     66                 5
   Other net cash flows related to financing activities                                                                                        (5)
  Net cash from / (used by) financing activities (C)                                                                                         (241)             (248)
  Effect of changes in exchange rates and scope of consolidation on cash and cash equivalents (D)                                              (14)               (4)
  Net increase (decrease) in cash and cash equivalents (A+B+C+D)                                                                             (155)               168
  Cash and cash equivalents at beginning of year                                                                                               991               823
      - Cash and balances at central banks and PCAs                                                                                             592              448
      - Balances in sight accounts at credit institutions                                                                                       399              375
  Cash and cash equivalents at end of year                                                                                                     836               991
      - Cash and balances at central banks and PCAs                                                                                            356               592
      - Credit balances in sight accounts with credit institutions                                                                             600               605
      - Debit balances in sight accounts with credit institutions                                                                            (120)             (206)
  Change in net cash                                                                                                                         (155)               168

The lines “cash and cash equivalent” consist of sight deposits and overnight funds.
The items included in this line item are presented in notes 4 and 11.2.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MANAGEMENT REPORT 2008 - 81 -
                                                                                                                                                                                                                                                                                                                             N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L
                                                                                                                                                                                                                                                                                                                             S TAT E M E N T S
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                                                             1. APPROVAL OF FINANCIAL                                                              • IAS 1 “Presentation of Financial Statements” revised
                                                                                                                                                                                                                                                                                                                                                                                                                     in 2007, applicable to current financial years as from
                                                                                                                                                                                                                                                                                                                             STATEMENTS - DISTRIBUTIONS                                                              1 January 2009;
                                                                                                                                                                                                                                                                                                                                                                                                                   • Interpretation IFRIC 11 “Group and Treasury Share
                                                                                                                                                                                                                                                                                                                             The RCI Banque group’s consolidated financial statements for                            Transactions”, applicable to current financial years as from
                                                                                                                                                                                                                                                                                                                             the year 2008 were established by the Board of Directors on                             1 January 2009;
                                                                                                                                                                                                                                                                                                                             4 February 2009 and will be presented for shareholder                                 • Interpretation IFRIC 13 “Customer Loyalty Programmes”,
                                                                                                                                                                                                                                                                                                                             approval to the Annual General Meeting on 22 May 2009.                                  applicable to current financial years as from 1 January
                                                                                                                                                                                                                                                                                                                             An annual dividend of €300 per share, for a total distribution                          2009;
                                                                                                                                                                                                                                                                                                                             of €300m, will also be proposed at that meeting.                                      • Interpretation IFRIC 14 IAS 19 “The Limit on a Defined
                                                                                                                                                                                                                                                                                                                             For comparison, the General Meeting of 23 May 2008 set the                              Benefit Asset, Minimum Funding Requirements and their
                                                                                                                                                                                                                                                                                                                             dividend for 2007 at 300 euros per share, for a total                                   Interaction”, applicable to current financial years as from
                                                                                                                                                                                                                                                                                                                             distribution of €300m.                                                                  1 January 2009;
                                                                                                                                                                                                                                                                                                                             The consolidated financial statements are expressed in                                • IAS 23 “Borrowing Costs” revised in 2007, applicable to
                                                                                                                                                                                                                                                                                                                             millions of euros unless otherwise indicated.                                           current financial years as from 1 January 2009.

                                                                                                                                                                                                                                                                                                                                                                                                                   The group does not expect there to be any significant impact
                                                                                                                                                                                                                                                                                                                             2. ACCOUNTING METHODS                                                                 on its consolidated financial statements when these new
                                                                                                                                                                                                                                                                                                                                                                                                                   standards and interpretations or amendments are adopted.
                                                                                                                                                                                                                                                                                                                             In application of Regulation 1606/2002 adopted on 19 July                             Application of these standards in 2009 will have a negligible
                                                                                                                                                                                                                                                                                                                             2002 by the European Parliament and European Council, the                             impact on the group’s net income and equity.
                                                                                                                                                                                                                                                                                                                                                                                                                   The RCI Banque’s consolidated financial statements are fully
                                                                                                                                                                                                                                                                                                                             RCI Banque group has prepared its consolidated financial
                                                                                                                                                                                                                                                                                                                                                                                                                   consolidated in those of the Renault Group.
                                                                                                                                                                                                                                                                                                                             statements for 2008 in accordance with the IFRS
                                                                                                                                                                                                                                                                                                                             (International Financial Reporting Standards) guidelines
                                                                                                                                                                                                                                                                                                                             published by the IASB (International Accounting Standards                             A) Consolidation
                                                                                                                                                                                                                                                                                                                             Board) to 31 December 2008 and as adopted in the European
                                                                                                                                                                                                                                                                                                                             Union by the statement closing date.                                                  Scope and methods of consolidation

                                                                                                                                                                                                                                                                                                                             The following amendments, as published in the Official Journal                        In addition to RCI Banque S.A. and its foreign branches, the
                                                                                                                                                                                                                                                                                                                             of the European Union at the time of the annual closing, have                         scope of consolidation includes subsidiaries over which
                                                                                                                                                                                                                                                                                                                             been applied for the first time in accounting year 2008:                              RCI Banque exercises exclusive control, entities over which
                                                                                                                                                                                                                                                                                                                                                                                                                   it exercises joint control (joint ventures) and companies
                                                                                                                                                                                                                                                                                                                             • amendments to IAS 39 “Financial instruments: recognition                            over which it exercises significant influence (associated
                                                                                                                                                                                                                                                                                                                               and measurement” and IFRS 7 “Financial instruments:                                 companies). Companies over which RCI Banque exercises
                                                                                                                                                                                                                                                                                                                               disclosures required” on the reclassification of financial                          exclusive control are fully consolidated.
                                                                                                                                                                                                                                                                                                                               assets, which are mandatory as of 1 July 2008.
                                                                                                                                                                                                                                                                                                                                                                                                                   The securitized assets of Diac, Cogera and the Italian and
                                                                                                                                                                                                                                                                                                                             Application of these amendments has had no significant                                German branches, and the loans made to Renault Retail Group
                                                                                                                                                                                                                                                                                                                             impact on the financial statements established on                                     and refinanced by limited-recourse borrowing are fully
                                                                                                                                                                                                                                                                                                                             31 December 2008.                                                                     consolidated inasmuch as a majority of the risks and benefits
                                                                                                                                                                                                                                                                                                                                                                                                                   thereof are retained by the RCI Banque group.
                                                                                                                                                                                                                                                                                                                             The group has not applied any standard or interpretation
                                                                                                                                                                                                                                                                                                                                                                                                                   Entities over which the RCI Banque group exercises joint
                                                                                                                                                                                                                                                                                                                             prematurely and in particular none of the following standards,
                                                                                                                                                                                                                                                                                                                                                                                                                   control are proportionately consolidated.
                                                                                                                                                                                                                                                                                                                             interpretations or amendments as published in the Official
                                                                                                                                                                                                                                                                                                                             Journal of the European Union at 31 December 2008:                                    Companies over which the RCI Banque group exercises
                                                                                                                                                                                                                                                                                                                             • the amendment to IFRS 2 “Share-based payment” on                                    significant influence are accounted for under the equity method.
                                                                                                                                                                                                                                                                                                                               vesting conditions and cancellations, applicable to current                         Significant transactions between consolidated companies are
                                                                                                                                                                                                                                                                                                                               financial years as from 1 January 2009;                                             eliminated, as are unrealized intercompany profits.
                                                                                                                                                                                                                                                                                                                                                                                                                   For the most part, the companies included in RCI Banque’s
                                                                                                                                                                                                                                                                                                                             • IFRS 8 “Operating Segments”, which replaces IAS 14                                  scope of consolidation are the Renault, Nissan and Dacia
                                                                                                                                                                                                                                                                                                                               “Segment Reporting”, applicable to current financial years                          sales finance companies and the associated service
                                                                                                                                                                                                                                                                                                                               as from 1 January 2009;                                                             companies.




                                                                                                                                                                                                                                                                                                                           - 82 - MANAGEMENT REPORT 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                                                                             RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition cost of shares and goodwill                                               €46.2m at 31 December 2007. This liability is measured
                                                                                      initially at the present value of the estimated exercise price
The acquisition cost of shares is the amount paid by the                              of the put options.
acquirer to the seller plus incidental expenses costs directly
attributable to the acquisition.                                                      The counterpart entries for this liability are booked as
                                                                                      decreases in the minority interests underlying the options
Goodwill is the difference between the cost of acquisition                            and, for the balance, a decrease in equity attributable to
adjusted for directly attributable expenses and the fair value                        group shareholders. The obligation to recognize a liability
of the assets and liabilities acquired. If the difference is                          even though the put options have not been exercised means
negative, the amount of that difference is recognized                                 that, in order to be consistent, the group has applied the
immediately in the income statement.                                                  same accounting treatment initially as that applied to
                                                                                      increases in the group’s proportionate interests in controlled
Goodwill relating to fully or proportionately consolidated                            entities.
companies on the RCI Banque group’s balance sheet is not
amortized.                                                                            If the options have not been exercised when this commitment
                                                                                      expires, the previous entries are reversed. If the options are
An impairment test is conducted at least once a year and                              exercised and the buy-out is made, the amount recognized
whenever there is a noticeable decline in value, by comparing
                                                                                      as a liability is extinguished by the cash outlay associated
the book value of the assets with their recoverable amount,
                                                                                      with the buy-out of the minority interest.
the latter being the highest value between the fair market
value (after deducting the cost of disposal) and the going
concern value. The going concern value is determined by
                                                                                      B) Presentation of the financial
discounting future cash flows as stated in the latest three-                          statements
year forecasts for each group of cash-generating units, which
comprise legal entities or groups thereof in the same country.                        The presentation of the primary financial statements complies
A single discounting value is used for all cash-generating                            with the format proposed by the Conseil National de la
units thus tested, which is the risk-free 10-year forward rate                        Comptabilité (the national accounting council) in its
augmented by the average risk premium for the sector in                               recommendation 2004-R-03 on the “format of the primary
which they operate.                                                                   financial statements of companies accountable to the Comité
                                                                                      de la Réglementation Bancaire et Financière (banking and
Goodwill is therefore measured at its cost less any accrued                           financial regulatory committee), according to international
impairment losses. If impairment is found, the impairment                             accounting pronouncements”, with the exception of the three-
loss is recognized in the income statement.                                           year presentation.
Goodwill recognized upon buy-out of minority interests in
companies that were previously fully consolidated is                                  Operating income includes all income and expense directly
accounted for as a decrease in consolidated reserves.                                 associated with the group’s operations, whether these items
                                                                                      are recurring or result from one-off decisions or transactions,
Minority interests                                                                    such as restructuring costs.
The group has awarded minority shareholders in some fully
consolidated subsidiaries commitments to buy out their
                                                                                      C) Estimates and judgments
holdings. For the group, these buy-out commitments
represent contractual obligations arising from the sales of                           In preparing its financial statements, RCI Banque has to make
put options. The exercise price for these options is                                  estimates and assumptions that affect the book value of
determined by estimating the price the RCI Banque group will                          certain assets and liabilities, income and expense items, and
have to pay out to the minority holders if the options are                            the information disclosed in certain Notes. RCI Banque
exercised, taking into account future returns on the financing                        regularly reviews its estimates and assessments to take
portfolio as it existed at the closing date and the provisions                        account of past experience and other factors deemed relevant
set out in the cooperation agreements concerning the                                  in view of economic circumstances. If changes in these
subsidiaries.                                                                         assumptions or circumstances are not as anticipated, the
                                                                                      figures reported in RCI Banque’s future financial statements
In accordance with the provisions set out in IAS 32, the group                        could differ from current estimates. The main items in the
has recognized a liability arising from put options sold to                           financial statements that depend on estimates and
minority shareholders of exclusively controlled entities for a                        assumptions are the recoverable value of loans and advances
total amount of €103m at 31 December 2008, compared to                                to customers and allowances for impairment and provisions.




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MANAGEMENT REPORT 2008 - 83 -
                                                                                                                                                                                                                                                                                                                             N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L
                                                                                                                                                                                                                                                                                                                             S TAT E M E N T S
RCI BANQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




                                                                                                                                                                                                                                                                                                                             D) Loans and advances to customers                                                       with the borrower (initial approval, risk monitoring,
                                                                                                                                                                                                                                                                                                                                                                                                                      provisioning).
                                                                                                                                                                                                                                                                                                                             and finance lease contracts
                                                                                                                                                                                                                                                                                                                                                                                                                   • A group-wide rating for bank counterparties, which is
                                                                                                                                                                                                                                                                                                                             Measurement (excluding impairment)                                                      established on the basis of external ratings and each
                                                                                                                                                                                                                                                                                                                             and presentation                                                                        counterparty’s level of capital.
                                                                                                                                                                                                                                                                                                                                                                                                                   • For “Corporate” borrowers, each subsidiary uses its own risk