Manganese Bronze Holdings PLC

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Manganese Bronze Holdings PLC

• Interim Results
• for the six months ended 31 January 2004

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Management Team from January 2003
Tim Melville-Ross Chairman
Ian Pickering Chief Executive
Mark Fryer Finance Director
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Achievements Jan July 2003

• Sale of loss making Components Division
• Sale and leaseback of Coventry site
• Initial successful outcome of Conditions of
  Fitness Review
• Surrender of lease for 1m
• Settlement with Brilliance
• Launch of Zingo
• Defended takeover attempt at 80p a share
• Repayment of medium term loan
• Declared dividends of 27p per share

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Achievements Aug 2003 to date

• Mexico / Latin America License and Distribution
  agreements signed
• USA drives sales higher by 20
• China LOI signed
• London office closed
• Sale of site of MO London generating c5m profit
• Purchase of Brewery Road site
• Transfer of SERPS related pension liability back
  to government with 1.5m reduction in pension
  deficit
• Share placing _at_ 1.475p raising 1.3m

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Why We Need to Change
Product
Market
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What is Our Strategy ?

• Exploit taxi icon globally through local
  manufacturing operations (JV or license)
• Grow Zingo to profit in London and
  license/franchise in other major cities
• Develop new products / services in niches low/
  zero emission inner-city utility vehicle
• Sell surplus property

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UK Issues

• Conditions of Fitness 2nd limited review
• Euro IV emission limits
• Product improvements
• Competitors (Metrocab / Converters)
• Lower cost vehicles

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Product Development
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Taxi- Exploit the Icon

• 1,000 vehicles in 100 cities with population of gt
  3 million
• Overseas manufacturing plants and/or CKD
  operations in low cost developing economies
• Significantly reduce the cost of the vehicle
• Maintain margins increase ROS
• Income from royalties and share of JV profits
• Product improvements
• keep design and development
• control the brand
• Alternative powertrain strategies hybrid/ low
  emission

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LTNA
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LTNA Usage
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LTNA Challenges

• Engine strategy
• /
• Follow on sales
• Lower cost vehicle

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Mexico
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A VW Beetle taxi rushes by at the Avenida
Francisco Madero. Though the taxis look funny and
cuddly, we strongly recommend to refrain from
using them. If you want to avoid bad surprises,
go for the official tourist taxis instead!
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Mexico

• Population 100m 20m in Mexico City 14m in
  Monterey and Guadalajara
• 600,000 taxis - 50,000 replaced every year
• Currently main old VW Beetle production ceases
  this year and security issue
• Available manufacturing facilities established
  automotive industry
• Experienced inexpensive labour force

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Mexico Licence Assembly Agreement

• Exclusivity to Mexico and Latin America if key
  thresholds met (start from year 1)
• Royalty per vehicle
• Term in perpetuity provided thresholds met and no
  breach
• Parts supplied back to UK at cost plus handling
  margin

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Mexico - TransPacific

• An investment banking and capital advisory
  company engaged in various ventures.
• In-depth knowledge of Mexico and the Mexican taxi
  market.
• Well connected politically
• Recruiting a strong and experienced automotive
  management team
• Looking to start production in early 2005

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China
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China
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China Next Steps

• Joint feasibility study
• Apply for license from Chinese government
• JV negotiations
• Establish production facility
• Establish sales network

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Zingo
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Zingo

• Reduce overhead base of 250k by half
• Integrate with LTIF
• Co-operate with other London taxi fleets
• Saloon car development
• Pre booking and land line capability
• Roll out in other UK cities
• Franchise/licence overseas cities

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(No Transcript)
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Inner-City Utility Vehicle

• Prototypes July 2004
• Pre- sell vehicles
• Second development phase through to start of
  production in early 2006
• Seek maximum grant funding
• Seek equity investment
• Minimal MBH investment

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The Vehicle of Choice

• Twice the speed and twice the distance of other
  inner-city electric vehicles
• 2,000 per annum saving compared with diesel
• Zero emissions
• 24/7 capability
• Choice of
• 6 different vehicles types
• Battery types
• Electric or hybrid
• Left or Right Hand Drive

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Surplus Property

• Ipswich - 2.8m look to at least double value
  over 3 year window with residential development
  with housebuilder notice served on tenant
• Birmingham - 1.0m currently yields 12 -
  tenant repairing 1 mile from City Centre -keep
  for long term developmental opportunity

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Share Price
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Share Price
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Taxi Sales
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Results - Loss before Tax
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Results - Cashflow
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Results - Gearing
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Dividends
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Prospects for Full Year

• Improvement in taxi sales started need
  realignment of and stability in London
• Zingo losses to be reduced
• Head Office cost reduction

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Achievements to Come in 2nd half

• Zingo cost reduction
• Roll out Zingo to other UK cities
• Zingo overseas franchise agreement
• Saloon car Zingo
• Inner-city utility vehicle prototypes complete
• Another CKD/distribution agreement
• Chinese feasibility study submitted
• Agreement for sale of Ipswich

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Manganese Bronze Holdings PLC

• Interim Results
• for the six months ended 31 January 2004