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Abdullatif Alissa Group 1 Alissa Group Profile Mar. 12, 2009

Alissa group profile

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Page 1: Alissa group profile

Abdullatif Alissa Group 1

Alissa Group Profile

Mar. 12, 2009

Page 2: Alissa group profile

Abdullatif Alissa Group 2

Table of Contents

1. The Group 1. History 2. Business Segments 3. Organization Structure & Approach

2. The Saudi Market

3. Operating Companies1. Abdullatif Alissa Automotive Co. (AACO)2. General Automotive Co. (AUTOSTAR)3. Al-Yusr Installment Co. (AL-YUSR)4. Best Rent-a-car (BTC)

4. Investment Activities

Page 3: Alissa group profile

Abdullatif Alissa Group 3

Abdullatif Alissa Group

Page 4: Alissa group profile

Abdullatif Alissa Group 4

History – Group Automotive Business

1940 : Started commercial business in Eastern province of Saudi Arabia

1950 : Started selling vehicles from the Eastern province

1960 : Expanded Car business in Riyadh

1960 : Launched ‘Al-Yusr’ in financing business

1968 : Awarded the sole agency of LUCAS/DELPHI group of companies

1974 : Awarded dealership for vehicles and parts. 1985 : Awarded motors franchise1990: Awarded the dealership of 1990: Launched ‘Best’ rent a car business1994-97: Won the prestigious Cadillac Master Dealer Contest four years in a row1998: Launched General Automotive Company (AUTOSTAR) as a multi-brand car retailer2006: Acquired Japanese accessories franchise Yellow Hat. 2007: Achieved GM “Chairman’s Challenge” award for the fifth time 2008: Acquired distribution rights for East European HD Truck Franchise (AVTOKRAZ)2008: Signed an alliance with Group 1 Automotive, Inc. a Fortune 500 automotive retailer

Proven record of successful partnering and pioneering

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Abdullatif Alissa Group 5

Business Segments

Total workforce of 2400, assets under management of $1 Billion with 70% invested in Core Automotive Sector

Abdullatif Alissa Holding Co.

Private Equity

Public Listed

Investment

Best Rent-a-car Al-Yusr

ISUZUAlissa Auto General Auto

(Autostar)

Real Estate and Construction

GM

Automotive (Franchised)

Automotive (Non Franchised)

Retail Finance

SPCAlissa Auto

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Abdullatif Alissa Group 6

Our Strengths

Respected ALISSA name Over 50 years of experience partnering with international

brand names Strong track record of pioneering new businesses Strong business planning and management disciplines Empowered corporate structure Investment in Human Resource development and training State-of-art MIS systems

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Our Guiding Principles

We are committed to team work, learning and service excellence

We will continue to enhance stake holder's value by meticulously managing our businesses.

We will grow by creatively diversifying into new products and services.

We will forge long term alliances with partners, mutually adding value to our respective businesses.

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Abdullatif Alissa Group 8

Our Management Structure

Board of Directors

Board Audit Committee

Group Internal Audit & Risk Mgmt. Manager

Chairman & Managing Director

Sh. Abdulmohsen Alissa

GM, Legal

Chief Financial Officer

GM, Investment & Business

Development

Group Advisor, Planning &

Performance Mgmt. *

GM, Al-Yusr Installment Co.

CEO, Abdullatif Alissa Automotive Co.

GM, Specialized Projects Company

CEO, Automotive Division *

GM, General Auto. Co.

GM, Best Trading Co.

GM, Group HR

GM, Group IT

Manager, Facilities

GM & ISUZU

GM, Best Rent-a-car

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Abdullatif Alissa Group 9

Our Planning & Review process

Bi-WeeklyBusiness Reviews

3 – yearBusiness

Plan

BU/Op. Co.

MonthlyBusiness Reviews

Op. Co. BU & Group

QuarterlyBusiness Reviews

Op. Co. Mgnt. & Board

Extensive Training & Incentivised Performance Management

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Abdullatif Alissa Group 10

Our Corporate Governance

Separation of Ownership and Management roles Active Board and Board Committees with independent NED Three (3) Special Focus Committees of Finance, HR and Audit Adopted corporate governance guidelines Empowered Management with defined review cycle Implemented Balanced Scorecard Methodology with defined

objectives, targets and measurements Established in-house training department with extensive annual

technical/soft skills training programs, mentoring and fast tracker schemes

Revised and upgraded HR Management guide with special focus on performance management

Aligned Organization structure, Job description, Job grading, career path and compensation structure to market and best practices

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Business Support Infrastructure

Established CCC and Call Center with in & Outbound capabilities Commissioned independent customer satisfaction and mystery

shopping program with AC Nielsen Implementing IBM COGNOS performance management software for

planning, KPI’s, score carding, reporting etc. Continuous investment in upgrading Computer hardware, networks,

communications and security Strong In-house Group IT Department of 30 staffs capable of In-house

system development, training and process re-engineering Upgraded to Kerridge latest Version 8.35 with strong graphic

capabilities. Installed high speed networks, latest servers and security system (ISS-

IBM) Developing automated workflows using Adobe

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Geographic Coverage

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Consolidated Group Revenue

1,643

2,226

2,681

3,141 3,400

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

04 05 06 07 08

(SR Millions / $ Millions)

($ 430)

($ 594)

($ 715)

($ 838)

Consistent Growth out performing the market

($ 907)

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Abdullatif Alissa Group 14

Growth Trends (S

R M

illio

ns)

(SR

Mill

ions

)

% Growth 10% 20% 0% 29%

Alissa Auto (AACO) General Auto (Autostar)

Al-Yusr Best Rent-a-car (BTC)

% Growth 27.3 19.4 -11.0 25.5 % Growth 6.2 25.5 16.7 8.2

(SR

Mill

ions

)

No.

of V

ehic

les

2004 2005 2006 2007 20080

500

1000

1500

2000

2500

811

1196

15821774

1924

% Growth   47.5% 32.3% 12.1% 8.5%2004 2005 2006 2007 2008

0100200300400500600700800

444488

594 587

761

2004 2005 2006 2007 20080

50

100

150

200

250

113120

145182

197

04 05 06 07 080

2,0004,0006,0008,000

10,00012,00014,00016,00018,000

8,535

11,68714,500

12,900

16,200

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Abdullatif Alissa Group 15

Consolidated Balance Sheet

In US$ Millions

2004 2005 2006 2007 2008

Total Assets 473 709 743 965 1,000

Shareholder's Equity 223 289 284 370 320

% Asset Growth (2004 as base)   49.9 57.1 104.0 111.4

% Equity Growth (2004 as base)   29.6 27.4 65.9 43.4

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The Saudi MarketAutomotive Sector

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Persons Per Vehicle

Market growth will accelerate in view of low penetration and demographics

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Abdullatif Alissa Group 18

Saudi Auto Market

'04 '05 '06 '07 '08 '09 '10New Car Sales 318 387 435 490 530 575 605

318387

435490

530575

605

0

100

200

300

400

500

600

700

Uni

ts (1

000s

)

New Car Sales

Growth Rate % 9.7% 21.7% 12.4% 12.6% 8.2% 7.5% 7.0%

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Abdullatif Alissa Group 19

Saudi Market Potential

Low penetration of vehicles / person, favorable demographics and macro economic factors are contributing factors to continued growth in the automotive sector

Manufacturers with good product line, sound distribution network and quality after sales services will benefit from the boom

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Operating Companies

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Abdullatif Alissa Automotive Co. Ltd.(AACO)

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Background

Established in 1950 Franchisee for GM since 1974 & Isuzu since 1985 3rd largest franchisee for GM in the Middle East 3rd largest franchisee for Isuzu in the Middle East 2nd largest automotive distributor in the Central region

after Toyota No. of branches increasing from 6 in 2006 to 15 by 2010

with 3S & 2S facilities Service bays increasing from 103 in 2004 to 204 in 2010

Additional bays in progress for recently approved sites Total staff as of Dec 2008 - 624

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Total Vehicle Sales (GM & Isuzu)

Alissa % Growth 44% 37% 8% (-4%)Market Growth 21% 12% 12% na

Alissa outpaced the market

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South Ring Road Facility

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General Automotive Co.

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Established in 1998

Engaged in Sale of multi-brand new and used vehicles Provider of After-sale services Wholesale of spare parts (OEM & Non-OEM) Auto accessory H/D Truck distribution

The only “Non-Franchised” company in KSA providing multi-brand 3S facilities Kingdom-wide.

Number of vehicle showrooms increasing from 9 in 2007 to 16 by 2009 Number of Parts outlets (Wholesale & Retail) increasing from 34 in

2007 to 37 in 2009

Total Staff as of May 2008 – 572 employees

Background

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Revenue

(SR Millions)

% Growth 10% 20% 0% 30% 16% 20%

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Autostar Outlets

Showrooms   Service   No. of Bays   Parts

Jeddah  1   Jeddah 2   Jeddah 52   Central 10

Makkah 1   Makkah 1   Makkah 3   Eastern 13

Riyadh 4    Riyadh 2    Riyadh 125   Western 11

Buraidah 1   Buraidah 1    Buraidah 26      

Dammam 2    Dammam 1    Dammam 50      

Al-Hasa 1    Al-Hasa 1    Al-Hasa 3      

Al Khobar 1                  

Abha 1                   

Total 12   Total 8   Total 259   Total 34

Dedicated stockyards and warehousing available in each region

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1) Auto Accessories (Yellow Hat)

2) H/D Truck (AvtoKraz, Ukraine)

3) Used Car Supply Chain (Group 1 - USA)

4) State-of-Art Body & Paint Shop

New Business Initiatives

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Al-Yusr Installment Co.

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Established in 1960 as one of the pioneers in the auto financing business

Engaged in financing of New and Used Vehicles, expanding into real estate mortgaging.

Portfolio under management exceeding $800mm. Signed $260mm loan facility with Riyadh Bank to promote Al-

Yusr Auto financing Structured and reorganized to service non-Group automotive

business as well Sophisticated and automated credit and risk management

systems, first non-bank organization to have direct link up with SIMAH (Saudi Credit Bureau)

Branch network (9) increasing to 18 by 2009 covering all major town centers in the kingdom

Background

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No. of Vehicles Financed

Average Annual Growth of 29% (‘04-’10)

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Best Trading Company(BTC)

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Established in 1990 Rental and leasing of vehicles to retail and corporate

clients. Over 70% of the fleet in corporate sector Fleet of over 8,800 vehicles increasing to 15,000 by

2012 positioning BTC as a second largest operator. Replacing annually over 4,800 vehicles in 2008 increasing

to 9,600 by year 2012 mostly from within/through the group companies

16 outlets and 3 regional offices in 2008 increasing to 35 outlets by 2012.

Total Staff as of May 2008 – 510 employees increasing to over a 1,000 by 2012

Background

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Very successful turnaround since 2004

Revenue

(SR Millions)

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BTC is a very large purchaser for Group companies

Fleet Size / Purchases

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Investment Activities

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Investment Portfolio

Finance Rasameel Structured Finance Co. (Securitization, debt & asset re-

structuring) Gulf Capital (Private equity, Investment banking, Real estate & asset

management)

Industrial Saudi Industrial Investment Group (Petrochemicals) Basic Chemical Industries Co. (Chemicals Manufacturing) Saudi Vitrified Clay Pipe Co. Ltd. (Pipe Manufacturing) Advanced Construction Holding Co. (Construction Material) Gulf Ferro Alloys Co. (Metal alloys manufacturing) Middle East Battery Co. (Automotive Batteries) Arab Paper Manufacturing Co. Ltd. (Paper mill – recycled paper) Gulf Salt Co. Ltd. (Salt production) Bahrain Aluminum Extrusion Co. (Aluminum products) Light Building Material Co. (Siporex)

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Investment Portfolio

Insurance Royal & Sun Alliance Insurance Ltd. (Insurance products & services)

Service Saudi Development & Re-Export Services Co. (All port-related

services) Chemicals Marketing & Distribution Co. (10%) (Marketing &

Distribution)

Real Estate Inmaia Real Estate & Tourism Investment Co. (Ownership,

development and management of commercial real estate and tourism related projects)

Gulf Real Estate Co. (Real estate investment and development) Makkah Hotel Co. (Hotel ownership, investment & operation)

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In Brief

Alissa core business is Automotive and shareholders are committed to expanding in this sector

Alissa has an impressive record of growth outpacing the market

Alissa has developed strong Corporate Governance, management systems & empowered management

Alissa has an investment–oriented business approach Automotive market in Saudi Arabia is poised for strong

growth and Alissa Group believes that its strategic alliance with industry leaders would deliver above market growth for mutual benefits

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Abdullatif Alissa Group 41

Thank You