Manganese Bronze Holdings PLC

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Manganese Bronze Holdings PLC

• Results for the year ending 31 July 2003

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2003 Highlights

• Sale of Components Division
• Sale and leaseback of Coventry site
• Conditions of fitness decision
• Zingo launched
• China settlement
• First 26 TXIIs shipped to USA
• Surrender of lease in London
• Special dividend of 25p - final dividend 2p

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2003 Financial Overview

• Total loss before interest and tax 9.6m
• 16m cash from disposals
• Loss on the sale of the Components 7.5m
• Gain on sale of site 1.9m
• Zingo development expense 3.3m
• 2.4m pension contributions to closed scheme
• China settlement 1.1m profit
• 1.0m from surrender of lease

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Results - Profit
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Results - Gearing
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Vehicles Division

• UK taxi sales down by 12
• London market affected by review of Conditions of
  Fitness, SARS, 2nd Gulf War
• Production reduced to 55 per week but we remained
  profitable
• First sales of TXII to US, Spain and Thailand

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Taxi Sales
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Sale of Components Division

• Losses exceeded 5m over last 4 years
• Proceeds from sale 8.0m
• Loss on sale 7.5m
• Book value of Birmingham Ipswich properties
  retained 3.8m
• Cap on warranties of 0.5m
• Run-off insurance purchased

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Sale of Coventry Property

• Proceeds 8.0m
• Profit on sale 1.9m
• 20 year lease terminable only by LTI with 18
  months notice after 18 months
• Rent 70 of market rent

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Zingo

• Launched in April
• 9.7m invested to date
• Over 700 drivers recruited
• 3 networks operational now testing with 4th
• Steady growth in journeys
• Corporate account card launched

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Zingo - Sources of Income

• 1.60 telephone booking fee
• Rental of Zingo equipment from driver
• Credit card commissions
• Account service fee
• Mobile phone call

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Zingo - Maximum London Market

• c20,000 London Taxis
• c18 trips per day
• c250 working days
• less c10 on radio circuits
• Maximum potential market of 80m trips p.a.

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China

• Settlement of 1.25m from Brilliance
• Profit 1.0m
• Discussions continue with potential new partners
• Significant potential in local market
• Low cost sourcing of components

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Pensions

• Defined benefit scheme closed in 1995
• MFR annual contributions of 1.5m starting 9/02
• 1.0m additional contribution July 2003
• FRS 17 deficit 10.0m at July 2003

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Strategy

• Develop overseas taxi markets
• 1,000 taxis in 100 cities
• Reduce taxi material cost through offshore
  sourcing, manufacturing or assembly
• Increase taxi related service profits
• balance manufacturing and service profits
• Sell surplus properties with book value of 3.8m

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Manganese Bronze Holdings PLC

• Results for the year ending 31 July 2003