A U T O Investor Presentation | Second Quarter 2010 1 GB Auto GB Auto I. Company Overview Unique, Diversified Position Covering the Automotive Value Chain Regional Sales Financing After-Sales Transportation Assembly & Businesses Service Services Distribution GB Auto’s Value chain allows customers to enjoy a full unique service experience; which creates brand equity and strengthen the “GB Auto” name 4 GB Auto Corporate Overview Commercial vehicles and Passenger cars Motorcycles & 3 wheelers Others 74% 2Q10 sales Construction Equipment 8% 2Q10 sales 7% 2Q10 sales 11% 2Q10 sales Import, retail distribution, Distribution of locally-assembled Distribution and local assembly Sale of tires, transportation fleet sales and assembly of trucks, buses and trailers; and of imported Semi Knocked services and financing services cars imported construction equipment Down (SKD) units Tires: Exclusive agent for Lassa, as Exclusive agent and sole Buses Exclusive agent for Bajaj three- well as Yokohama tires distributor for Hyundai and Exclusive agent for Mitsubishi and wheelers and motorcycles Transportation services: Cargo Mazda in Egypt Volvo buses Distribution via retail showrooms services on fixed-price contracts as GB Auto remains Hyundai Motor JV with Marcopolo for bus-body and network of local dealers well as passenger transport Corporation‘s best distributor in manufacturing facility in Suez After-sale service and spare parts Financing: Financing for CV sales Africa and top-5 worldwide 42.5% market share in 2Q10 (excl. Joint venture (GK Auto) to microbuses) centers and corporate fleet sales; micro- financing for three-wheelers distribute Hyundai in Iraq Trucks Assembles CKD units (Hyundai) Exclusive agent for Mitsubishi and Large distribution and after-sales Volvo trucks network Trailers Market share of 26.8% in Egypt Manufactured in Egypt; distributed in in 2Q10 Egypt and Algeria Construction Equipment Distributes Volvo construction equipment 5 GB Auto GB Auto is the Leading Player in the Egyptian Automotive Market Key Financial Data (EGPmillion) FY2007 FY2008 FY 2009 2Q 2009 2Q 2010 1H2009 1H2010 Sales 4,630.1 5,192.3 4,258.4 1072.4 1,739.7 1,714.4 3,066.3 % growth 49.2 12.1 -18.0 -29.4 62.2 -34.6 78.9 EBITDA 500.7 678.5 451.7 85.7 166.8 145.3 310.5 % margin 10.8 13.1 10.6 8.0 9.6 8.5 10.1 EBIT 582.1 633.1 396.7 71.3 145.3 123.7 274.0 % margin 12.6 12.2 9.3 6.6 8.4 7.2 8.9 Net Income 433.5 415.7 201.4 40.4 77.7 47.5 146.4 % margin 9.4 8.0 4.7 3.8 4.5 2.8 4.8 EGP million 3,500 3,066.3 3,000 2,500 2Q09 1,739.7 2,000 1,714.4 2Q10 1,500 1,072.4 1,000 1H09 500 310.5 274 1H10 85.7166.8 145.3 71.3 145.3 123.7 77.7 47.5 146.4 40.4 0 Sales EBITDA EBIT Net Income 6 GB Auto We said we would…and we did 9 Currently implementing new business processes resulting from institutionalization plan Deepen Management Team and 9 Created an organization structure that will support the business for years to come Institutionalization 9 Restructured senior management to include C-Suite and Business Directors 9 Recruitment efforts include an Excellence Program to attract high caliber graduates Pursue New Representations 9 Resumed exclusive representation of Mazda 9 Obtained rights to import and distribute Yokohama-brand tires Harness Consumer Credit Growth 9 Formed Mashro’ey, a microfinance venture extending credit to purchasers of 3-wheelers 9 Reduced costs by 25% from Q408 through 1H09, saving in excess of EGP 50 million Manage Costs and Working Capital 9 Reduced inventories were reduced by nearly EGP 200 million 9 Eliminate under recovery of manufacturing overheads by the end of the year Explore New Sources of Financing 9In 2009, GB Auto refined its financing mix by working with international institutions 9In March 2010, issued EGP 1 billion public bond Target 25% of the National Taxi 9Recorded 37.6% market share in the first phase of the taxi replacement program Replacement Program 9Targeting 30.0%+ market share in the second phase of the taxi replacement program Penetrate New Markets 9Formed of GK-Auto, a JV with exclusive distributorship rights for Hyundai products in Iraq 7 GB Auto Most Recent Developments GK Auto: New Mashro’ey: Local Mazda: Expand Yokohama: Expand market entry expansion product offering product offering • Imports and distributes • Acquires Bajaj-branded • Exclusive agreement to • Distributes Yokohama a wide range of motorcycles and three- import and distribute passenger car, semi- Hyundai vehicles and wheelers that have Mazda-branded CBU truck, truck, bus and spare parts across Iraq been imported and vehicles in Egypt construction and will build Iraq’s assembled by GB Auto • GB Auto will support equipment tires leading after-sales and sells the products the Mazda franchise through its own outlets service franchise to consumers with new dealer and as well as a dealership • Joint venture with the • Mashro’ey plans to after-sales networks network Al-Kasid Group of have 15 branches • Mazda sales will • Complements GB Companies, which nationwide by year end directly target the Auto’s exclusive holds exclusive rights and slightly more than acquisition of market representation of to distribute Hyundai 40 by the end of 2011. share currently held by Turkish-made Lassa Motor Company • Since March 2010, Japanese and tires in Egypt products in Iraq Mashro‘ey has financed European brands, • Fully operational since purchases of 760 tuk- making it a very 1Q10, selling a total of tuks and 21 complementary 7,123 units since motorcycles, with just product to GB Auto’s March. under 10% of total existing range of monthly three-wheeler Hyundai passenger sales financed through cars the program. 8 GB Auto GB Auto II. Business Overview …With Long-term Durability on the Back of Numerous Macro Drivers Key Growth Drivers Comments Consumer Experts predict that GDP will grow 5.5% in FY 2010/11, and return confidence is Significant GDP to the 7% range the following year. rising, spurring Growth expectations of strong growth Egypt’s strategic location, one or two-days’ travel to major Egypt is a Natural European, Middle Eastern and African hubs, makes the country a throughout the Export Hub natural export hub. Low costs of raw materials, labor and utilities economy in provide Egypt’s exporters with a natural price advantage. the coming years Large, Fast- Egypt has the largest population in the Middle East, and one of the youngest, as well, with nearly half of all Egyptians being under the Growing Consumer age of 25. Base The latest statistics show that GDP per capita is approaching the Rapidly Forming USD 6,000 range, accelerating demand for cars, with multipliers of Middle Class up to 2.5x the rate of GDP growth being sustained for several years. Egypt’s automotive Recent statistics show that the average global motorization index is market appears Low Motorization 100 cars per 1,000 persons, while Egypt boasts a mere 30 cars per Index capita. GB Auto’s management foresees the local index tripling in to have fully the coming years, given population and economic growth trends. recovered from the recent crisis, Auto loans, and microfinance are becoming more prevalent in the with demand Availability of Egyptian market, with both lenders and borrowers in this projected to Consumer Finance traditionally cash-based culture, growing more comfortable with the practice. return to 2008 levels this year 10 GB Auto After a Difficult 2009, Egypt’s Automotive Market is Growing Again Historical Market Passenger Cars Commercial Vehicles 250,000 80,000 Size and Growth, 5-yr CAGR: 23.4% 5-yr CAGR: 22.4% 198,800 62,312 2004 to 2009 200,000 179,178 158,926 60,000 48,310 46,595 Vehicle Units 133,591 150,000 38,191 94,322 40,000 100,000 26,848 55,471 16,946 20,000 50,000 0 0 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Recent Market Passenger Cars Buses Trucks Size and Change, 100,000 1H09 vs. 1H10 10,000 25,000 80,000 8,000 20,000 Vehicle Units 60,000 6,000 15,000 40,000 93,052 4,000 10,000 9,106 19,436 67,129 6,848 20,000 2,000 5,000 16,380 0 0 0 1H 09 1H 10 1H 09 1H 10 1H 09 1H 10 * Buses data excludes microbuses; Trucks data excludes pickup trucks. 11 GB Auto GB Auto is the Undisputed Leader of the Egyptian Passenger Car Market Market Segmentation | in 1H10 30,000 28.0% 30% 25,000 19.8% 25% 20,000 20% The nation’s top selling PC brand, 15,000 11.3% 15% 7.1% 10,000 5.7% 10% Hyundai has a market share of 5,000 5% 28.0%, reflecting GB Auto’s superior 0 0% value proposition for consumers. Hyundai Chevrolet Kia Speranza Nissan Top 5 Brands Vehicle units 1H 09 1H 10 11.4% 10.6% 7.6% 12.0% <1.3L 1.3-1.5L 16.6% 19.8% Up to 1.6 L engine capacity bracket 1.5-1.6L enjoys preferential tariff on imports Vehicle units >1.6L of CBU vehicles. 56.8% Engine Capacity 65.2% 37% 38% The nearly precise 60/40 split has CBU been typical of the market for the 62% CKD 63% past year. Vehicle units CBU vs. CKD 12 GB Auto GB Auto: Passenger Car Line of Business Overview Key Financial Data Overview Passenger Cars In Egypt, GB Auto defended its (LE million) FY2007 FY2008 FY2009 2Q09 2Q10 1H09 1H10 market share, closing 2Q10 at 26.8%, more than 7 percentage points ahead Revenue* 3,314.4 3,675.4 2,893.1 714.5 1,303.2 1,042.5 2,256.0 of its nearest competitor.