GB Auto EVERYTHING ON WHEELS The Ghabbour Group of Companies The - PowerPoint PPT Presentation

GB Auto “EVERYTHING ON WHEELS” The Ghabbour Group of Companies “The Leading Automotive Assembler GB Auto, S.A.E and Distributor in the MENA Region” Initial Public Offering Investor Presentation Investor Presentation Investor Presentation | Beltone Financial MENA Day, New York City – May 2009 I t P t ti | B lt Fi i l MENA D N Y k Cit M 2009 GB Auto 1

Agenda for Today Company & Company & Dr. Raouf Ghabbour Business Chief Executive Overview Colin Sykes Financial Overview Chief Financial Officer GB Auto 2

GB Auto I. Company Overview

Corporate Overview 72% of FY08 Group Sales 14% of FY08 Group Sales 11% of FY08 Group Sales 3% of FY08 Group Sales Passenger Cars Commercial Vehicles Motorcycles & 3-Wheelers Others � Import, retail distribution, � Distribution of locally � Local assembly of imported � Includes tires, construction Overview fleet sales and assembly of fleet sales and assembly of assembled trucks and buses assembled trucks and buses Semi Knocked Down (SKD) Semi Knocked Down (SKD) equipment, transportation equipment transportation cars units and distribution services and export activities � Exclusive agent and sole Buses � Exclusive agent for Bajaj Tires distributor for Hyundai three-wheelers and � Exclusive agent for Mitsubishi, � GB Auto distributes passenger Volvo and Hyundai buses motorcycles � Imports and distributes CBU and light tires under a license � Assembles and distributes units and assembles CKD with Lassa; seeking new � SKD assembly and buses for public, commercial units representations for bus, truck distribution of Bajaj three- and tourism sectors and off-road tires � We have begun work on our wheelers � JV with Marcopolo for 8,000 largest passenger car after- � Distribution via three retail capacity bus-body assembly Construction equipment sales center to date on the Description showrooms as well as facility in Suez targeting local Cairo Ismaliyya Highway; Cairo-Ismaliyya Highway; and export markets and export markets � Includes construction and � I l d t ti d network of local dealers t k f l l d l expected to be online by material handling (forklifts) � 30.3% market share in 2008 � Three after-sale services and mid-2010 (excl. microbuses) equipment supplied under spare parts centers � Large distribution and after- licenses from Volvo and Linde Trucks � 10 sales centers for sales network with four 3S � Exclusive agent for Mitsubishi, motorcycles and 40 for facilities (sales, service and Transportation Services Volvo and Hyundai trucks three wheelers three-wheelers spare parts) and 373 service spare parts) and 373 service � Includes heavy, medium and � Haram Transport Company is bays (expected to increase � GB Auto is the market for light weight trucks a fully owned subsidiary that by 164% to 983) three-wheelers in Egypt � 16.0% market share in 2008 operates over 200 buses in 5 � Market share of 25.9% in (excluding pickups) governorates and provides Egypt in 2008 Trailers cargo services with a fleet of � >30,000-unit sales opp. in , pp � 23,000-unit opportunity in , pp y 90 trucks 90 trucks 2009 alone, to replace taxis Egypt as draw-bar trailers are banned and distribution JV in more than 20 years old Algeria Brands GB Auto 4

GB Auto is the Leading Player in the Egyptian Automotive Market Key Financial Data (LE million) FY2006 FY2007 FY2008 1Q2008 1Q2009 Sales Sales 3,103.3 3,103.3 4,630.1 4,630.1 5,192.4 5,192.4 1,103.8 1,103.8 642.0 642.0 % growth 50.1 49.2 12.1 30.3 -41.8 EBITDA 417.4 500.7 678.5 142.0 59.5 % margin 13.5 10.8 13.1 12.9 9.3 EBIT 503.6 582.1 646.5 128.1 52.4 % margin 16.2 12.6 12.5 11.6 8.2 Net Income 281.5 433.5 415.9 84.6 7.2 % margin % margin 9.1 9.1 9.4 9.4 8.0 8.0 7.7 7.7 1.1 1.1 Key Products Sales Breakdown (FY2008) 3% 3% 1. Passenger Cars 11% 2. Commercial Vehicles 14% 3. 3-wheelers & Motorcycles 4. Other: Tires 72% Construction Equipment Transportation Services Transportation Services GB Auto 5

Unique, Diversified Position Covering the Automotive Value Chain Sales & Sales & Distribution After-sales Transportation Assembly + Service Services Exports � Assembly of passenger cars and commercial vehicles (CKD) at 2 plants in Cairo, 1 plant in Sadat City + JV bus-body assembly in Suez (GB Polo) assembly in Suez (GB Polo) � Sales and distribution: Distribution and retail sales of CKD and CBU (imported) passenger cars, commercial vehicles, motorcycles and three-wheelers, and construction equipment � Growing national after-sales service network with 6 passenger car and 6 commercial vehicle outlets (planned expansion to � Growing national after sales service network with 6 passenger car and 6 commercial vehicle outlets (planned expansion to 25 PC and 10 CV) � Partnerships with 41 independent passenger car retailers � Growing network of partnerships including buses with Marcopolo (GB Polo) and trailers in Algeria with Sentrax (GB-Allab � Growing network of partnerships, including buses with Marcopolo (GB Polo) and trailers in Algeria with Sentrax (GB Allab Remourque) GB Auto 6

Remarkable Growth Through 2008, Recent Industry Challenges Commercial Vehicles Passenger Cars 80,000 250,000 CAGR: 62,312 198,800 CAGR: 29.1% 200 000 200,000 179,178 179 178 60 000 60,000 29 7% 29.7% 48,310 133,591 150,000 38,191 40,000 94,322 26,848 100,000 Historical Market 55 471 55,471 16 946 16,946 Size and Growth, 20,000 50,000 2004 to 2008 0 0 Vehicle Units 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 Passenger Cars Buses Trucks 60,000 4,774 5,000 15,000 48,441 48 441 12,259 12 259 50,000 4,000 12,000 3,319 40,000 3,000 9,000 7,887 28,083 30,000 2,000 6,000 Recent Market Size 20,000 and Change, 1Q08 1,000 3,000 10,000 vs. 1Q09 0 0 0 0 0 0 Vehicle Units 1Q08 1Q09 1Q08 1Q09 1Q08 1Q09 GB Auto 7

…With Long-term Durability on the Back of Numerous Macro Drivers Key Growth Drivers Comments Reduction of � Import duties on passenger vehicles with engine capacity < 1.6 liters came down in 2004 from 105% to 40%. Duties are expected 1 1 Import Duties on Import Duties on Consumption Consumption to continue decreasing as per the EU-Egypt Association Agreement. i d i h EU E A i i A Cars growth may continue to slow in 2009, but is � Consumer spending on everything from mobile phones to vehicles Reduction of 2 has boomed since the halving in 2006 of income taxes and is expected to p I Income Taxes T showing resilience despite a slowdown in growth. h i ili d it l d i th resume as the GDP growth accelerates � Legislation passed in summer 2008 will support demand over the 3 coming two years by capping the age limit for passenger cars used Legislative Changes g g as taxis, outlawing draw-bar trailers and allowing the licensing of t i tl i d b t il d ll i th li i f three-wheelers (tuk-tuks) as motorcycles. � GDP per capita is approaching the USD 2,000 range, accelerating Increase in 4 demand for cars, with multipliers of up to 2.5x the rate of GDP GDP/Capita Levels GDP/Capita Levels growth being sustained for several years. Income per capita at th b i t i d f l I it t Driving strong purchasing power parity now exceeds that of India and China. demand in Egypt’s � Auto loans have only recently been introduced to the Egyptian Availability of 5 automotive market. Evidence now suggests national banks are expanding their Consumer Finance Consumer Finance consumer credit activities filling a vacuum left by the retreat of consumer credit activities, filling a vacuum left by the retreat of market k international brands in wake of global economic crisis. � Demand repressed during the downturn of 2001-04 lingers, and Lingering Pent-Up 6 new demand is being created by the rapid formation of a middle Demand Demand class Current slowdown in sales is as a result of consumers’ class. Current slowdown in sales is as a result of consumers expectations of price cuts, not evaporation of demand. GB Auto 8

GB Auto is the Undisputed Leader of the Egyptian Passenger Car Market Market Segmentation | as of end FY2008 60,000 26% 30% 40,000 20% 13% Th The nation’s top selling PC brand, i ’ lli PC b d 8% 6% 6% 20,000 6% 10% Hyundai has a market share of 26%, reflecting GB Auto’s superior 0 0% value proposition for consumers. Hyundai Chevrolet Toyota Speranza Nissan Daewoo T Top 6 Brands 6 B d Vehicle units 2007 2008 3.1% 2.7% <1.3L 16.3% 19% 1.3-1.5L 1.5-1.6L Up to 1.6 L engine capacity bracket 16% >1.6L 22.2% enjoys preferential tariff on imports of CBU vehicles. 58.4% 62.3% Engine Capacity Vehicle units CBU CKD 45% 46% 55% Car market almost equally split 54% between CKD and CBU vehicles. CBU vs. CKD CBU vs. CKD Vehicle units GB Auto 9