“EVERYTHING ON WHEELS” GB Auto The Ghabbour Group of Companies “Everything on Wheels” GB Auto, S.A.E Initial Public Offering Investor Presentation Investor Presentation | March 2008 GB Auto 1
GB Auto I. Executive Summary
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 2. Commercial Vehicles 3. 3-wheelers & Motorcycles Revenue Breakdown 4. Other: Tires Construction Equipment 12M2007 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 Increase) Public Offering : 7,500,000 shares Total Capital Increase 33,163,000 shares Secondary Offering Private Placement : 1,676,100 shares 34,839,100 shares TOTAL OFFERING SIZE Price Range | EGP Offering Price 33 34 35 36 37 38 39 Foreign Institutions Subscription Highlights Local Institutions 23% Local Retail Private Placement 7x oversubscribed Public Offering 4x oversubscribed 7% 70% Geographical Approximately 12,000 participants in Public Offering Distribution Subscriber Base IPO Proceeds Expansion of distribution and after-sales network nation-wide Investment 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 outperforming the CASE 9 July 2007 13 December 2007 15 November 2007 9 August 2007 GB Auto announces the GB Auto begins signing consumer finance 9M2007 Earnings trading on the CASE End of Blackout agreement with Citibank Release Period 21 August 2007 1H2007 Earnings Release 78% 70 GB Auto 65 Case Rebased 60 55 38% 50 45 40 GB Auto Stock 35 Performance 30 09 Jul07 to 6 Mar08 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 GB Auto 5
GB Auto II. GB Auto Overview and Historical Performance
GB Auto dominates the passenger vehicle market in Egypt… PASSENGER CARS Exclusive agent and sole distributor for Hyundai 34% 48,623 Imports and distributes Completely Built Up (CBU) 36,266 units and assembles Completely Knocked Down (CKD) units Sales Widest product range in the market positioned as “best value for money” Vehicle Units Has the largest distribution and after-sales network of four 3S facilities (sales, service and spare parts) Market Share Recent launch of new products to further (in units) penetrate larger engine segment (>1.6L) 12M2007 Getz Verna Matrix Santa Fe 1.0 L SUV > 2.0 L GB Auto 7
LoB Historical Performance: Passenger Cars CAGR: 89 % CAGR: 78.5 % 3,750 48,623 50,000 3,292 36,266 3,000 40,000 2,211 2,250 30,000 25,375 1,603 1,500 20,000 Sales 7,163 578 750 10,000 Revenues Volume 0 0 EGP million Vehicle Units 2004 2005 2006 2007 2004 2005 2006 2007 15% 13% 13% 400 372 11.6% 11% 12% 290 300 9% 208 200 6% Operating 100 3% 67 Operating Profit Profit Margin 0% 0 2004 2005 2006 2007 EGP million % 2004 2005 2006 2007 GB Auto 8
Robust product offering in buses… COMMERCIAL VEHICLES: BUSES 31% Exclusive agent for Mitsubishi, Volvo and Hyundai buses Assembles and distributes buses targeting the public, Sales commercial and tourism sectors Vehicle Units Ghabbour is the largest player in the mid- to large- bus market Market Share (in units) 12 M2007, 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 COMMERCIAL VEHICLES: TRUCKS & TRAILERS Exclusive agent for Mitsubishi and Volvo trucks 86 % Target clients include fleet operators, contractors, and large industrial corporate Sales Massive growth potential in the Egyptian market especially in heavy-truck segment (2,000 heavy-trucks Vehicle Units sold in 1998, while only 650 sold in 2006) Commercial Vehicle Exports: Currently limited export activity to neighboring markets Market Share Focus going forward on upgrading product depth and (in units) quality to further penetrate export markets 12M 2007, 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 CAGR: 65.5 % 700 590 600 1,451 1,500 Buses 500 417 1,109 Trucks 1,200 966 400 900 694 300 491 185 600 407 200 Sales 130 286 298 300 Revenues 100 Volume 0 0 EGP million Vehicle Units 2004 2005 2006 2007 2004 2005 2006 2007 30% 125 110 23.7% 24% 21% 100 19% 18.6% 86 18% 75 12% 44 50 Operating 6% 24 Operating 25 Profit Profit Margin 0% 0 EGP million % 2004 2005 2006 2007 2004 2005 2006 2007 GB Auto 11
GB Auto is creating the 2- and 3- Wheeler Market… THREE-WHEELERS AND MOTORCYCLES Exclusive agent for Bajaj three-wheelers (auto- rickshaws or “tuk - tuks”) and motorcycles 25% Bajaj is the largest global manufacturer of three- 40% wheelers Sales Used for personal and commercial purposes in rural Vehicle units 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% 12M 2007 motorcycles tuk-tuks GB Auto 12
LoB Historical Performance: 2- and 3-wheelers 600 528 CAGR: 76 % 50,000 CAGR: 97 % 40,830 500 40,000 366 400 29,401 30,000 300 188 20,000 13,170 200 96 Sales 5,357 10,000 100 Revenues Volume 0 0 EGP million Vehicle Units 2004 2005 2006 2007 2004 2005 2006 2007 100 18% 15% 15% 79 13.6% 75 12.6% 12% 50 50 Operating 6% 24 25 Operating Profit 14 Profit Margin 0 0% EGP million % 2004 2005 2006 2007 2004 2005 2006 2007 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 TIRES 120,000 112,000 22.7% 25.0% 100,000 20.0% 15.6% 80,000 13.5% 15.0% 12.4% 60,000 47,500 45,940 10.0% 36,258 40,000 Gross Profit 5.0% Margin 20,000 Revenues 0.0% 0 EGP thousand % 2004 2005 2006 2007 2004 2005 2006 2007 CONSTRUCTION EQUIPMENT 20,000 18,800 15,000 28.7% 30% 22.7% 10,803 10,000 20% 15.6% 6,660 11.1% 5,000 4,200 10% Gross Profit Margin Revenues 0% 0 % EGP thousand 2004 2005 2006 2007 2004 2005 2006 2007 GB Auto 15
GB Auto‟s strategy is built upon 3 core axes Further entrench Increase 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 new businesses successfully penetrate regional export markets GB Auto 16
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