AnnuAl Report RENAULT LEASING CZ, S.r.o.

Report on the Company’s Activitiestory prices and by a supply-sideshock, the recent price hikeshave added to the central bank’sconcerns about their impact onthe expected rate of inflation.These concerns led the ČNB toa decision to raise interest ratesby a further 25 bps in early February 2008. The overall globalgrowth and development andthe ČNB’s moderate statementsmay lead us to a conclusion thatit is not necessary to count onany significant policy tighteningfor the rest of the year. Nevertheless, another slight increasein rates should be expected during 2009.In the last months of 2007and early in 2008 the Czech currency continued to strengthen,setting new highs against boththe euro and the dollar. Thespeed of the currency’s appreciation was unusual: the crowngained almost 10% against theeuro and 17.5% against thedollar between mid-2007 andthe end of January 2008. Theappreciation was influenced bygrowing trade volumes and bythe fact that in the last monthsof the year a number of globalinvestors built new crown positions as a safety precautionagainst higher risk aversion onfinancial markets. Outlook indicates that the continuing uncertainty on international financialmarkets may keep the volatilityof the EUR/CZK exchange rateat a high level for a major partof this year. Moreover, it is expected that once investors’ trustin more risky assets is restored,the overvalued Czech currencymay depreciate. Despite the expected slight depreciation of theCzech currency against the euroat the end of the year, it can beassumed that the average exchange rate in 2008 will reachthe 26.40 mark, down by almost5% from the 2007 average.The impact of fiscal reformbringing higher indirect taxesand reducing social expenses,combined with a sharp increasein inflation will further cut thegrowth of private expenditurein 2008. Consequently, thisgross capital formation willalso decline, influenced onlyby lower inventory formation.Finally, the deceleration of external demand, combined withthe impact of real appreciationof the Czech crown, will reducethe pace of growth of exports.Nevertheless, we may expectthat the rate of growth of imports will decelerate even more,because of weaker domesticdemand, which will result in anoverall positive contribution ofmay be expected to result ina significantly lower pace ofgrowth in the real income ofhouseholds and reduce thehousehold consumption growthto 3.5% year-on-year in 2008compared to the 5.6% yearon-year forecast for 2007. Thenet exports to economic growthin 2008. We predict the yearon-year GDP growth to reachthe 4.0% mark, with the lowest growth rate expected in Q1.The overall impact of the crisison international markets on theCzech economy will be verymoderate.In terms of segments, theCzech leasing market still registers a visible decline in the shareof car leases in the overall leasevalue of movable assets, whichhas been below 50% long term.A downward trend was registered in passenger cars (theshare of 24.5%), while growthrates were recorded for lightindustrial vehicles (19.9%) andtrucks (23.3%). The car leasing results were influenced bythe growth in the total numberof newly registered vehicles,which was up 16.4% (14.2%and 18.8% for new and usedcars, respectively). Growth wasalso registered in the segmentof buses, trolleybuses and otherheavy-weight road vehicles(3.8%). The share of the segment of machinery and equipment expanded to 24%.In terms of transaction value,the market is still dominated byThe Czech leasing market in 2007In 2007, the Czech leasing market recorded very highgrowth in the volume of transactions and the number of newcontracts, reaching the highestlevels since 2000. According tothe data from the Czech Leasingand Financial Association, thevalue of new leases of movableassets reached CZK 122.75bn,which is a year-on-year increase of 15.4%, or 14.9% forthe 15 largest companies. Newleases of real estate propertyattained CZK 11.9bn, up 6.4%from the same period of theprevious year. The adoptedtax reform, which extendedminimum depreciation periodsfrom 3 to 5 years for cars andfrom 8 to 30 years, had themost visible impact at the endof the year, when a number ofcorporate customers decided tofinance their needs under theold terms.11

finance leases with a share of87.5%. The share of operatingleases dropped slightly from14% to 12.5%, but in absoluteterms it expanded by 3.8%,which corresponds to thetrends in highly developed EUcountries.In terms of customer structure in 2007, most leases wereprovided again to the privateservices sector, which accountsfor nearly one half of the totalvalue of transactions (48.3%),and industry (32%). Private individuals made up 8.5% of thetotal lease value.In recent years, the totallease value has been more orless stable. However, growthhas been registered in the services for suppliers (pre-financingand financing of warehouses)and for clients, especially in thefield of insurance.For several years, the marketof non-leasing financial products has been characterizedby strong growth. In 2007, thevalue of consumer loans (theso-called “initial debt”) surgedby 30.3%. The funding throughbusiness loans and hire-purchase schemes for businessmen rose sharply by 56.8%.The 2007 statistics againconfirmed a high degree ofconcentration in the Czechleasing market, with the top 5companies holding nearly onehalf of the market (47.9%). Thecombined market share of thetop 15 companies is 80%.The Czech leasing marketranks among the fastest growing markets in Central andEastern Europe and it is alsovery important in terms of thefunding of movable property(almost one third). In the fol-lowing periods, we may expectcontinued growth of the market, especially in the segmentof machinery and equipment.An important factor for futuregrowth will be the ability ofleasing companies to cope withthe new conditions introducedby the tax reform and to comeup with product offerings attractive to businessmen (e.g.shorter payback periods underfinance leases). The marketwill also see the continuedgrowth of non-leasing forms offinancing. This growth will beconnected with the increasingcompetition from banks’ creditproducts, which already allowfor easy funding of a car, machine or real estate, but alsowith new low capitalizationrules, which might be restrictive for a number of corporateclients.Other leasing trends arevisible in full-service operatingleases. The trend of outsourcing of services related to theuse of property (vehicle fleet,equipment, real estate) hasalready arrived from highlydeveloped European countriesinto the Czech Republic and itis highly likely that its futuremarket share will reach severaldozens of percent. Businessmen and companies will alsopay more and more attention toeconomic advantages (out-ofbalance).As regards general trends inthe leasing business, we mayexpect more tailor-made andend-to-end solutions for businesses and the growing use ofalternative sales channels (retention, the Internet, etc.).DEVELOPMENT TRENDS 1999 – 2007Year20002001Number of new contracts (NVs UVs)4 809 4 8192002200320042005200620075 749 4 9813 8506 4246 8306 760(in millions of CZK)New trades expressed at their acquisition price 1 9001 8982 1221 8501 4182 0732 1632 347New trades expressed at their financed value1 0621 0361 2401 0668791 3241 3611 522Overall output7931 4242 1042 1782 0711 8871 9131 951Profit/loss-47-29 7,863,067,952,328.559,2Balance sum2 3773 0663 2923 2542 8593 1753 4653 855Rest capital1 2791 6481 8871 9271 7952 0702 3612 68812

Report on the Company’s ActivitiesThe company’s business resultsIn 2007, official manufacturers and importers of roadmotor vehicles sold 132,542new passenger cars and62,038 light industrial vehicles in total on the Czech market. Overall, passenger carsales were up 6.9% year onyear. The sales of light industrial vehicles recorded an evenmore significant year-on-yeargrowth of 25.4%. The reasonbehind several years of stronggrowth in the sales of lightindustrial vehicles is the possibility of rebuilding passengercars into vehicles of the N1category with deductible VAT.Renault ČR reached thethird position in the rankingof top importers on the Czechcar market, failing to defendits second position from theprevious year. In 2007, thecompany sold 7,477 passenger cars and 4,242 lightindustrial vehicles of the Renault brand, which is a yearon-year decrease of 8.3% forpassenger cars and a yearon-year increase of 15.5% forlight industrial vehicles. Thus,11,719 vehicles of the Renaultbrand were sold in total, whichis a decline of 1% comparedto 2006. The brand’s marketshare is 6%.At the same time, RenaultČR sold 1,912 passenger andlight industrial vehicles of theDacia brand, which is a yearon-year increase of 23.3%.The strong growth in Daciasales was driven by the introduction of the new DaciaLogan MCV. Combined, Renault ČR sold 13,631 Renaultand Dacia cars on the Czechmarket, recording a year-onyear sales increase of 1.9%and reaching a market shareof 7%.A very significant contribution to these sales resultswas made by Renault LeasingCZ, which provided customers throughout the year withquality branded financial serv-ices and, in association withRenault ČR, launched newattractive funding solutionswhich made Renault and Dacia cars affordable to numerous customers. An exampleof these successful fundingcontracts were signed, whichis a decline of 1.8% comparedto 2006 and share (penetration) of the sold Dacia cars of31% (40% in 2006). The yearon-year decline of the share(penetration) of the sold Daciasolutions was the introductionof a lease with zero down payment or insurance packageKasko Max (a combinationof collision and GAP coverage) with motor third party liability coverage free of chargethroughout the entire term ofthe financing contract.In 2007, Renault LeasingCZ almost matched its all-timebest sales results achievedin the previous year. 5,424lease and credit contractswere signed for new Renaultcars, which is a year-on-yearincrease of 1% and a share(penetration) of the sold Renault cars of 46% (the sameresult as in 2006).As for the Dacia brand,a total of 602 lease and creditcars was caused by the arrivalof the new Dacia Logan MCV,which was sold in the firstmonths after its launch mainlyfor cash and thus contributednegatively to the financial performance of Renault LeasingCZ with regard to new Daciacars. 735 contracts for usedcars were signed in 2007,which is a year-on-year decrease of 20%. Overall, Renault Leasing CZ signed a total of 6,761 contracts in 2007,which is a decrease of 2.3%compared to 2006.These good business results were achieved in spiteof unexpected staff changesat some branch offices of thecompany during the year. Atthe same time, Renault Leas-Share of private, commercial and used vehiclesin the Renault Leasing portfolio during 20072007share 2007New vehicles - private3,251 48,1%New vehicles - commercial2,775 41,0%Used vehicles 73510,9%6,761100,0%13

ing CZ and its dominant position as a branded companyproviding funding for Renaultand Dacia cars, faced toughcompetition from its rivals,who have strong expertise inthe funding of used cars andproviding consumer loansand who use very aggressivepricing and contract approvalstrategies.As a result of Renault ČR’sshifting its focus onto thehigh-end segment (RenaultMégane, Scénic and indus-trial vehicles) the average acquisition price excluding VATrose in 2007 to CZK 347,166(compared to CZK 329,280 in2006) on the average contractterm of 45 months. The average extraordinary lease payment slightly decreased from37.2% to 35.2%. The rise inacquisition prices and the decrease in extraordinary leasepayments resulted to a yearon-year increase in the valuefinanced.Segment shares in the portfolio of new contracts7 0006 0005 0005 2985 4232 0006136021 0009197354 0003 0000Used vehicles20062007Renault new vehiclesDacia new vehiclesServices providedThe services provided byRenault Leasing CZ are aimedat all types of customers suchas private individuals, businessentities and companies, whohave a wide choice of fundingoptions for new cars of the Renault and Dacia brands, as wellas used cars of any brand atauthorized dealerships of Renault and Dacia. According totheir individual needs, clientsmay choose funding througha finance lease, special-purpose consumer loan RenCREDIT or operating lease, includingthe full service option.Current customers can makeuse of the Loyalty Program ofRenault Leasing CZ which allows them to sign further contracts with a free-of-chargeextended warranty for the newcar being financed. A matterof course is free consulting onfunding a car purchase, whichis provided to both current andnew clients.Through the services ofits broker, sister companyUniCredit pojišťovací makléřskáspol. s r.o., Renault Leasing CZcollaborates with a number ofrenowned insurers and offershigh-quality and cost-effectivecollision, statutory and supple-mentary car insurance according to the client’s choice andpreference.All the products and servicesof Renault Leasing CZ are currently provided through its network of 10 regional branchesand all dealerships of the Renault and Dacia brands acrossthe Czech Republic.Business results for Renault Leasing70006913645760005749Total number of financing49815000contracts new used vehicles (pcs)40003881New trades expressed at 02 2003 2004 2005 2006 2007acquisition price without VAT(in millions of CZK)

Report on the Company’s ActivitiesThe company’s operating activityRenault Leasing CZ is oneof the most important parts ofFinancial Group UniCredit Leasing CZ, a.s. (a member of theUniCredit Group) and most ofits commercial and administrative activities are carried outin association with its parentcompany. Renault Leasing CZmakes full use of the branchnetwork and administrative facilities of UniCredit Leasing CZ,a.s., which ensures that all thenecessary tasks are completedeffectively.area that will be one of the toppriorities of Renault ČR in 2008,we will continue to provide ourclients, in association with Renault ČR, with successful promotional offers of finance leasing and credit (loan) packageswith the participation of RenaultČR (Business Leasing a Business Credit), we will continue toparticipate in the implementation of Renault Fleet Academy,a training project for fleet sellers, and last, but not least, wewill develop our product RenaultFull Service Leasing under ourbrand Renault Business Finance,which is targeted at customersinterested in operating leases.As for our relations with theRenault and Dacia dealer network, we will continue to do ourbest to improve the quality ofour cooperation with individualdealers. As part of these efforts,we will continue to developour central contract approvalsystem which, thanks to online connection of dealers andintegration into the new offersoftware of Renault ČR, will addsignificantly to the speed andcomfort of the contract approval process for individual dealersas well as customers.We also plan to extend ourportfolio of supplementary insurance products with GAPinsurance and, at the same time,we would like to maintain thegood results of our insuranceproduct Payment Protection Insurance, which we successfullylaunched in early 2007.Strategic goals and outlook for 2008The goal of Renault Leasing CZ for 2008 is to retain itsstable position as a reputablebranded leasing company thatprovides quality and reliable financing to support sales of Renault and Dacia vehicles in theCzech Republic. We will have tocope effectively with legislativechanges that have an impact onthe tax deductibility of financelease contracts and to provideour customers with suitable financial products that will comply with these new tax deductibility regulations.Taking into considerationthat Renault ČR will launcha number of new models on theCzech market during 2008, itwill be a big challenge for Renault Leasing CZ to provide theimporter with maximum support to ensure the successfulintroduction of these modelsand to defend its position asthe dominant branded financialcompany.To achieve our demandinggoals, it will be again necessaryto work very closely with Renault ČR, especially in the preparation of attractive financialproducts for end customers andtheir communication, as well asin the implementation of important projects for the Renault andDacia dealer networks. One ofour top challenges and priorities is the funding of used cars,a segment where we want toexpand our business activities.As regards sales to businessmen and companies, anResearch and developmentEnvironmental protectionThe company is not involved in these activities.15

2007Audit report RENAULT LEASING CZ, S.R.O.

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Audit report19

NÍČÁSTFinancialpart RENAULT20

Balance sheetin CZK OTAL ASSETS6 725 7772 870 5393 855 2383 465 121B.Fixed assets6 198 2572 851 4883 346 7693 161 875B.II.Tangible fixed assets6 198 2572 851 4883 346 7693 161 875B.II.2.Structures92955874910B.II.3.Individual movable assets and sets of movable assets6 196 5612 851 4333 345 1283 160 432B.II.8. Prepayments for tangible fixed assets 767 767533C.Current assetsC.I.InventoriesC.I.5. GoodsC.II.Long-term receivables525 99619 051506 945558558558558302 306242 1472 307239 840203 087C.II.7. Other receivables242 1472 307239 840203 087C.III.271 24216 744254 49897 289C.III.1. Trade receivables 42 5968 57834 01818 80513 73213 7323 4568181374360360381Short-term receivablesC.III.6. State - tax receivablesC.III.7. Short-term prepayments madeC.III.8. Estimated receivablesC.III.9. Other receivablesC.IV.Current financial assetsC.IV.1.214 4738 166206 307 74 27312 04912 0491 930Cash on hand9039031 808C.IV.2.Cash at bank11 14611 146122D. I.Other assets1 5241 524940D.I.1.Deferred expenses 43 4386D.I.3.Accrued income221 4811 481854Jean-Jacques ThibertIng. Bohumil BucekExecutive OfficerExecutive Officer

Financial partin CZK thousand31.12.200731.12.2006TOTAL LIABILITIES & EQUITY3 855 2383 465 121A.Equity283 154224 115A.I.Share capital70 00070 000A.I.1.Share capital 70 000 70 000A.II.Capital funds36 00036 000A.II.2. Other capital funds36 00036 000Statutory funds8 4258 392A.III.1. Statutory reserve fund / Indivisible fund8 1648 164A.III.2. Statutory and other funds261228A.III.A.IV.Retained earnings109 57081 196A.IV.1.Accumulated profits brought forward109 57081 196A.V.Profit or loss for the current period ( -)59 15928 527B.Liabilities2 459 4402 178 723B.II.Long-term liabilities69 29980 597B.II.5. Long-term prepayments received10 088 41 482B.II.10. Deferred tax liability59 21139 115Short-term liabilities206 542187 616B.III.1. Trade payables91 82268 136B.III.5. Payables to employees320328B.III.6. Social security and health insurance payables228234B.III.7. State - tax payables and subsidies94103B.III.8. Short-term prepayments received98 520108 984B.III.10. Estimated payables15 5589 831Bank loans and borrowings2 183 5991 910 510B.IV.1. Long-term bank loans905 000840 000B.III.B.IV.B.IV.2.Short-term bank loans1 278 5991 070 510C. I.Other liabilities1 112 6441 062 283C.I.1.Accrued expenses 72C.I.2.Deferred income1 112 6441 062 211Jean-Jacques ThibertIng. Bohumil BucekExecutive OfficerExecutive Officer23

Profit and loss accountin CZK thousandYear endedYear ended31.12.200731.12.2006I.Sales of goods 796190A.Costs of goods sold 712190 Gross margin84II. Production1 950 2311 913 354I

OwNERShIp STRUCTURE OF ThE COmpANy: UniCredit Leasing CZ, a.s.Bank: 50% share RCI Banque, S.A., groupe Renault, S.A.Account No.: 50% share BASIC INFORmATION ABOUT ThE COmpANy Tile: renault leasing CZ, s .r .o . Main Office: radlická 1 /3201, 150 00 prague 5 Legal status: limited liability company Date of origin: 1 January 1999 the company is part of the uniCredit leasing CZ, a .s .