Last updated on April 16, 2014 at 17:34 EDT

Renault-Nissan and Russian Technologies Create Joint Venture to Finalize Strategic Partnership with AVTOVAZ

December 12, 2012

MOSCOW, December 12, 2012 /PRNewswire/ –

        - Renault-Nissan and Russian Technologies create joint venture to accelerate
          product launches and technology transfer to AVTOVAZ, Russia's largest carmaker.
        - Renault-Nissan will get a majority stake in the joint venture, called Alliance
          Rostec Auto BV, which will control AVTOVAZ, leader of the Russian auto market.
        - This deal promotes Renault, Nissan and LADA's improved synergy and product
          development in the fast-growing Russian market.

The Renault-Nissan Alliance and Russian Technologies State Corporation have created a
joint venture which will hold their entire equity interests in AVTOVAZ and serve as a
stable, long-term controlling shareholder for Russia’s largest car company and the owner
of the LADA brand.

Renault-Nissan Chairman and CEO Carlos Ghosn announced the creation of Alliance Rostec
Auto BV today at a ceremony in Moscow with Sergey Chemezov, General Director of Russian
Technologies and Chairman of the Board of AVTOVAZ, and Igor Komarov, President of AVTOVAZ.

“Today’s historic agreement is a win-win-win for all companies: Renault, Nissan and
AVTOVAZ. It is a significant new chapter in an already solid partnership,” Ghosn said.
“The joint venture will help accelerate our Russian market offensive. It will support the
competitiveness of AVTOVAZ, Russia’s auto industry leader.”

According to the terms of the deal, Renault-Nissan will invest RUB23 billion (US$ 742
million). The investment will give Renault-Nissan 67.13% of the joint venture by mid-2014.
The joint venture will then hold 74.5% of AVTOVAZ.

Renault, which purchased 25% of AVTOVAZ in 2008 and then helped AVTOVAZ in its
successful turnaround, will invest about RUB11.3 billion (US$366 million) in the joint
venture and plans to own 50.1% in the joint venture by June 2014. Nissan which did not
previously own a stake in AVTOVAZ, will invest RUB11.7 billion (US$376 million) and plans
to own 17.03% in the joint venture by the same period.

Over the same period, Russian Technologies will hold 32.87% of the joint venture.

As part of the deal, Russian Technologies is restructuring its outstanding loans with
AVTOVAZ with RUB8 billion (US$258 million) proceeds from the anticipated sale of AVTOVAZ’s
non-core assets being used to repay part of Russian Technologies loans.

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Video news release and b-roll also available on the site.

SOURCE Renault-Nissan Alliance

Source: PR Newswire