“EVERYTHING ON WHEELS” GB Auto The Ghabbour Group of Companies “Everything on Wheels” GB Auto, S.A.E I nitial Public Offering Investor Presentation I nvestor Presentation | February 2008 GB Auto 1
I. Executive Summary GB Auto
GB Auto… … is the leading player in the automotive market. … is a commercial operation, focused on the distribution and servicing of automotive vehicles and related products, providing transportation solutions to its clientele. … has a dominant market share in the domestic passenger car market, the largest player in the three- wheeler market, and has a rapidly growing presence in the commercial vehicle market. … operates activities throughout the value chain: Assembly Sales and Distribution After-Sales Service … engages in four primary lines of business: 1. Passenger Cars 12% 2. Commercial Vehicles 12% 71% 3. 3-wheelers & Motorcycles 5% Revenue Breakdown 4. Other: Tires Construction Equipment 9M2007 Transportation Services … has built a strong reputation in the local market as “standing behind its customers” and is renowned for providing an unmatched after-sales service network. GB Auto = Dominant Market Position + Diverse Product Base GB Auto 3
On July 9, 2007 GB Auto shares began trading on the CASE, after successfully raising EGP 1.2 billion worth of new shares in an IPO… Offering Structure Primary Offering Private Placement : 25,663,000 shares (Capital I ncrease) Public Offering : 7,500,000 shares Total Capital I ncrease 33,163,000 shares Secondary Offering Private Placement : 1,676,100 shares 34,839,100 shares TOTAL OFFERI NG SI ZE Price Range | EGP Offering Price 33 34 35 36 37 38 39 Foreign I nstitutions Subscription Highlights Local I nstitutions 23% Local Retail � Private Placement 7x oversubscribed � Public Offering 4x oversubscribed 7% 70% Geographical � Approximately 12,000 participants in Public Offering Distribution Subscriber Base I PO Proceeds � Expansion of distribution and after-sales network nation-wide � I nvestment in new “jigs” and fixtures to support CKD model expansion � Capitalization of leasing and finance “NewCos” � Financing inventory build-up � Other general corporate purposes GB Auto 4
…since then, GB Auto has been consistently outperforming the CASE 9 July 2007 9 August 2007 15 November 2007 13 December 2007 GB Auto announces the GB Auto begins End of Blackout 9M2007 Earnings signing consumer finance trading on the CASE Period Release agreement with Citibank 21 August 2007 GB Auto 65 1H2007 Earnings Release CASE 60 50% 55 50 24% 45 40 35 GB Auto Stock Performance 30 09Jul07 to 27Jan08 9-Jul-07 9-Aug-07 9-Sep-07 9-Oct-07 9-Nov-07 9-Dec-07 9-Jan-08 GB Auto 5
II. GB Auto Overview and Historical Performance GB Auto
GB Auto dominates the passenger vehicle market in Egypt… PASSENGER CARS � Exclusive agent and sole distributor for Hyundai 25% 40,000 34,450 � Imports and distributes Completely Built Up (CBU) 27,649 19,129 30,000 units and assembles Completely Knocked Down 11,699 CKD CBU (CKD) units 20,000 15,950 15,321 10,000 Sales � Widest product range in the market positioned as - “best value for money” Vehicle Units 9M2006 9M2007 � Has the largest distribution and after-sales GB Auto 27% network of four 3S facilities (sales, service and spare parts) Other 51% Toyota Market Share 12% � Recent launch of new products to further Daewoo (in units) 10% penetrate larger engine segment (> 1.6L) 9M2007 Getz Verna Matrix Santa Fe 1.0 L SUV > 2.0 L GB Auto 7
LoB Historical Performance: Passenger Cars CAGR: 125% 40,000 36,266 3,000 CAGR: 97% 2,230 30,000 25,375 2,000 1,603 20,000 1,000 7,163 578 10,000 Sales Revenues Volume - - EGP million Vehicle Units 2004 2005 2006 2004 2005 2006 290 15% 300 13.0% 13.0% 11.6% 12% 208 200 9% 6% 100 Operating 67 Operating Profit 3% Profit Margin - 0% EGP million % 2004 2005 2006 2004 2005 2006 GB Auto 8
Robust product offering in buses… COMMERCI AL VEHI CLES: BUSES 27% 1,200 1,033 � Exclusive agent for Mitsubishi, Volvo and Hyundai 811 800 buses 400 � Assembles and distributes buses targeting the public, Sales commercial and tourism sectors - Vehicle Units 9M2006 9M2007 � Ghabbour is the largest player in the mid- to large- bus market GB Auto 39% Other Market Share 61% (in units) 9M2007, exc. microbus Mitsubishi Canter Mitsubishi Rosa Hyundai Aero Volvo Splendido mini-buses large coach GB Auto 9
…and rapidly growing presence in the Truck market COMMERCI AL VEHI CLES: TRUCKS & TRAI LERS � Exclusive agent for Mitsubishi and Volvo trucks 1,000 43% 824 � Target clients include fleet operators, contractors, and 750 578 large industrial corporates 500 � Massive growth potential in the Egyptian market 250 Sales especially in heavy-truck segment (2,000 heavy-trucks - sold in 1998, while only 650 sold in 2006) Vehicle Units 9M2006 9M2007 Commercial Vehicle Exports: GB Auto 16% � Currently limited export activity to neighboring markets Market Share � Focus going forward on upgrading product depth and (in units) Other quality to further penetrate export markets 84% 9M2007, exc. Pick ups Volvo FH (heavy-duty) Mitsubishi Canter Mitsubishi Fuso light-truck medium-truck heavy-truck GB Auto 10
LoB Historical Performance: Commercial Vehicles 500 1,200 1,109 408 CAGR: 77% 400 900 805 Buses 300 Trucks 600 491 185 200 407 130 298 286 300 100 Sales Revenues Volume - - EGP million Vehicle Units 2004 2005 2006 2004 2005 2006 100 86 23.7% 24% 21.0% 75 18.6% 18% 44 50 12% 24 Operating 25 Operating 6% Profit Profit Margin - 0% EGP million % 2004 2005 2006 2004 2005 2006 GB Auto 11
GB Auto is creating the 2- and 3-Wheeler Market… THREE-WHEELERS AND MOTORCYCLES � Exclusive agent for Bajaj three-wheelers (auto- 30,000 2,327 20% rickshaws or “tuk-tuks”) and motorcycles 25,000 2-wheeler 3-wheeler 20,000 28,031 1,942 � Bajaj is the largest global manufacturer of three- 15,000 57% wheelers 17,826 10,000 Sales 5,000 � Used for personal and commercial purposes in rural Vehicle units 9M2006 9M2007 and low-income areas as an alternative to urban and peri-urban transport Other � Potential for growth on the back of government plans 1% to grant license for “tuk-tuks” to operate in the major Market Share cities (in units) GB Auto 99% 9M2007 motorcycles tuk-tuks GB Auto 12
LoB Historical Performance: 2- and 3-wheelers 30,000 26,798 400 366 CAGR: 124% CAGR: 95% 300 20,000 13,170 188 200 10,000 96 5,357 100 Sales Revenues Volume - - EGP million Vehicle Units 2004 2005 2006 2004 2005 2006 60 16% 15.0% 50 13.6% 12.6% 45 12% 30 24 8% 14 Operating 15 4% Operating Profit Profit Margin - 0% EGP million 2004 2005 2006 % 2004 2005 2006 GB Auto 13
…while, other currently “small” businesses poised for impressive growth OTHER � Tires: • Ghabbour is the distributor of Lassa (Turkey) passenger car tires and Double Coin (China) truck and bus tires � Construction Equipment: CV tires Car tires • Ghabbour supplies Volvo construction equipment and Linde material handling equipment � Transportation Services ( New Business ): • Public passenger transportation services by participating in inter- and intra-city privatization of bus transport • Private cargo freight transportation for heavy industries (professional logistics services) material handling earth-moving GB Auto 14
LoB Historical Performance: Tires and Construction Equipment TI RES 25% 60,000 22.7% 20.0% 45,940 20% 45,000 15.6% 36,258 36,281 15% 30,000 10% Gross Profit 15,000 5% Margin Revenues - 0% EGP thousand % 2004 2005 2006 2004 2005 2006 CONSTRUCTI ON EQUI PMENT 25% 22.7% 12,000 10,803 20.0% 20% 9,000 15.6% 6,660 15% 6,000 10% 3,188 Gross Profit 3,000 5% Margin Revenues 0% - % EGP thousand 2004 2005 2006 2004 2005 2006 GB Auto 15
GB Auto’s strategy is built upon 3 core axes Further entrench � I ncrease market share throughout all lines of 1 GB Auto’s business by: dominant market position across the • Invest in an unmatched nation-wide distribution and widest range of after-sales network infrastructure; products • Position products as having lowest ‘ownership cost’; • Create a ‘one-stop-shop’ for the clientele by vertically Make GB Auto integrating sales, consumer financing and after-sales ‘indispensable’ to support functions; and any OEM who • Leverage GB Auto’s value-adding image from one wants to successfully business unit to the other. operate in Egypt’s automotive sector � Capture export opportunities in commercial 2 vehicle manufacturing (mainly buses and trailers) by leveraging Egypt’s low cost availability of labor Profitably capture domestic growth � Strengthen business relations with current 3 prospects and be partners while searching for the right partners for positioned to successfully new businesses penetrate regional export markets GB Auto 16
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