The Leading Automotive Assembler and Distributor in the MENA Region - PowerPoint PPT Presentation

“The Leading Automotive Assembler and Distributor in the MENA Region” Investor Presentation | Third Quarter 2009 GB Auto 1

Agenda for Today Company & Company & Dr. Raouf Ghabbour Business Chief Executive Overview Colin Sykes Financial Overview Chief Financial Officer Bassem El-Shawy Investor Director of Investor Relations and Relations Corporate Secretary Corporate Secretary GB Auto 2

GB Auto I. Company Overview

Corporate Overview 73% of 3Q09 Group Sales 6% of 3Q09 Group Sales 13% of 3Q09 Group Sales 8% of 3Q09 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 � Imports and distributes CBU motorcycles and light truck tires under units and assembles CKD units � Assembles and distributes license from Lassa; seeking � SKD assembly and buses for public, commercial � We have begun work on our new representations for bus, distribution of Bajaj three- and tourism sectors largest passenger car after- truck and off-road tires wheelers sales center to date on the � JV with Marcopolo for bus- � Distribution via three retail body assembly facility in Suez Cairo-Ismaliyya Highway; Construction Equipment Description showrooms as well as expected to be recording � 23.5% market share in 3Q09 � GB A t � GB Auto distributes Volvo di t ib t V l network of local dealers t k f l l d l revenues in early 2011 i l 2011 (excl. microbuses) brand construction equipment � Large distribution and after- Trucks � Three after-sales service and serving public and private sales network with four 3S spare parts centers � Exclusive agent for Mitsubishi, clients facilities (sales, service and Volvo and Hyundai trucks � 10 sales centers for spare parts) and 373 service � Includes heavy, medium and motorcycles and 40 for bays (expected to increase by light weight trucks Transportation Services p three-wheelers three-wheelers 164% to 983) 164% t 983) � Market share down in 3Q09 on � Cargo services (90-truck fleet) � New micropayments joint � Market share of 29.6% in supply constraints from model on fixed-price contracts as well Egypt in 3Q09 venture expected to provide change of Canter TD and as passenger transport lower market demand. substantial sales momentum � 1,475 units sold in 3Q09 under the taxi-replacement program, for this LOB in 2010 and Trailers Financing representing a 25% market beyond � GB Allab-Remorque now q share of sales through the � Financing for corporate fleet awaiting second shipment � GB Auto is the market for program; a figure expected to sales; now launching a three-wheelers in Egypt stand going forward micropayments operation. Brands GB Auto 4

GB Auto is the Leading Player in the Egyptian Automotive Market Key Financial Data (LE million) FY2006 FY2007 FY2008 3Q2008 3Q2009 9M2008 9M2009 Sales Sales 3,103.3 , 4,630.1 4,630.1 5,192.4 , 1,677.2 1,677.2 1,225.6 1,225.6 4,300.9 4,300.9 2,939.9 2,939.9 % growth 50.1 49.2 12.1 27.8 -26.9 30.9 -31.6 EBITDA 417.4 500.7 678.5 274.6 108.0 571.4 231.8 % margin 13.5 10.8 13.1 16.4 8.8 13.3 7.9 EBIT 503.6 582.1 646.5 243.1 108.0 571.5 231.7 % margin 16.2 12.6 12.5 14.5 8.8 13.3 7.9 Net Income 281.5 433.5 415.9 175.7 63.9 403.7 111.4 % margin g 9.1 9.4 8.0 10.5 5.2 9.4 3.8 Key Products Sales Breakdown (9M2009) 10% 1. Passenger Cars 13% 2. Commercial Vehicles 3. 3-Wheelers & Motorcycles 11% 66% 4. Other: Tires Construction Equipment Transportation Services Transportation Services GB Auto 5

Unique, Diversified Position Covering the Automotive Value Chain S l Sales & & Distribution Financing After-Sales Transportation Assembly + Businesses Service Services E Exports t � 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) � Sales and distribution: Distribution and retail sales of CKD and CBU (imported) passenger cars, commercial vehicles, � Sales and distribution: Distribution and retail sales of CKD and CBU (imported) passenger cars, commercial vehicles, motorcycles and three-wheelers, and construction equipment � Financing businesses: In this relatively young line of business, GB Lease finances commercial vehicle sales and corporate clients purchasing passenger cars for fleets, while the newly established (and majority owned) micropayments joint venture should begin delivering transactions in the first quarter of 2010. � 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 international partnerships including buses with Marcopolo (GB Polo) and trailers in Algeria with � Growing network of international partnerships, including buses with Marcopolo (GB Polo) and trailers in Algeria with Sentrax (GB Allab-Remorque) 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 180,000 16,000 40,000 160,000 160,000 14,000 14 000 35,000 35 000 140,000 12,000 30,000 120,000 10,000 25,000 100,000 2,552 8,000 530 20,000 015 80,000 80,000 0 112,560 162 34,0 13,5 6,000 15,000 24,099 Recent Market Size 9,969 60,000 and Change, 9M08 4,000 10,000 40,000 vs. 9M09 20,000 2,000 5,000 0 0 0 0 0 0 Vehicle Units 9M08 9M09 9M08 9M09 9M08 9M09 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 Consumer Consumer to continue decreasing as per the EU-Egypt Association Agreement. i d i h EU E A i i A Cars confidence is again rising, spurring � Consumer spending on everything from mobile phones to vehicles Reduction of 2 has boomed since the halving in 2006 of income taxes and is expectations of p I Income Taxes T showing resilience despite a slowdown in growth. h i ili d it l d i th stronger 2H09 growth throughout the � Legislation supports demand over the coming two years by capping economy 3 the age limit for passenger cars used as taxis, outlawing draw-bar Legislative Changes g g t trailers and allowing the licensing of three-wheelers (tuk-tuks). il d ll i th li i f th h l (t k t k ) Microbus replacement program now in the pipeline. � GDP per capita is approaching the USD 5,400 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 Demand in purchasing power parity now exceeds that of India and China. Egypt’s automotive � Auto loans have only recently been introduced to the Egyptian Availability of 5 market should 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 recover international brands in the wake of the global economic crisis. noticeably by 4Q09 � New demand is being created by the rapid formation of a middle Lingering Pent-Up 6 class. Slowdown in sales from late 3Q08 onward translated not into Demand Demand lost sales but into new pent up demand that may begin converting lost sales, but into new pent-up demand that may begin converting into sales beginning in 4Q09. GB Auto 8

GB Auto is the Undisputed Leader of the Egyptian Passenger Car Market Market Segmentation | in 9M09 26.1% 40,000 30.0% 19.4% 30 000 30,000 20.0% 20 0% Th The nation’s top selling PC brand, i ’ lli PC b d 20,000 Hyundai has a market share of 7.4% 7.1% 5.5% 10.0% 26.1% (29.5% in 3Q09), reflecting 10,000 GB Auto’s superior value proposition 0 0.0% for consumers. T Top 5 Brands 5 B d Hyundai Hyundai Chevrolet Chevrolet Kia Kia Speranza Speranza Nissan Nissan Vehicle units 9M08 9M09 2.7% 11% 12% <1.3L 19% 1.3-1.5L 1.5-1.6L Up to 1.6 L engine capacity bracket 16% 19% >1.6L enjoys preferential tariff on imports of CBU vehicles. 62.3% 58% Engine Capacity Vehicle units CBU CKD 38% 40% Before 1H08, market was almost 62% 60% equally split between CBU and CKD. CBU vs. CKD CBU vs. CKD Vehicle units GB Auto 9