Chennai and Doha Summary

Strategic Partner / PE investor India & Middle East

Corporate Development May 2015

The One Asia Group

The One Asia Group passionately believes that the world has changed and that the real opportuni9es are going to be generated from and in Asia Pacic for the next decade. Those opportuni9es centre around educa9ng the populous, establishing beAer technology and assis9ng companies improve their opera9onal processes to bring ecient and sustainable results.

How we do this is to act as business accelerators, working with the best specialists in each sector to assist clients in managing their opportuni9es and to build and deliver long term sustainable solu9ons.

What we do is provide strategic advisory services across business sectors but with geographic focus, we add value to transac9ons and businesses within the Asia region and beyond.

The One Asia Group was established in 2011 to provide advisory services to businesses wishing to enter the Asia Pcic region and to those already in the region wishing to improve their interna9onal business channels and opera9ons.

The group believes it is important to have in---country exper9se and therefore feet on the ground in order to provide consistent and value added advise for client deliverables.

The group operates across business sectors via enhancing the core teams competencies with sector specic specialists in this way the group acts as business excellence partners to its clients.

The group has also forged strong business rela9onships with governmental and private en99es to work in concert to deliver client requirements.

The One Asia Group is incorporated in Hong Kong (One Asia Group Limited), Singapore (One Asia Group Pte Limited), Indonesia (PT Insan Persada Nusantara) and the United Kingdom (One Asia Group Limited), with further representa9on in Australia and Vietnam.

www.one-asia.biz Business Excellence Partner

Business Excellence Partner

Professional Services

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Compe9tor Analysis Corporate Goals Financial & Business analysis

Deployment Planning Management

Feasibility Reports Corporate Allignment Financial Modeling Project Management Marke9ng

Due Diligence Regulatory Requirements Prepara9on of

Corporate Collateral Procurement Establishment

Partner Iden9ca9on Sales Strategy Transac9onal Proposal CRM Mandate closure

SWOT Analysis Market Partnerships & CRM Structuring Project Management Representa9on


Partners

Jeremy is the Founding Partner of the One Asia Group focused on opera9onal management, business turnaround and business accelera9on solu9ons. Jeremy moved to Indonesia in 1994 and in 1995 became an equity partner in Pacic Financial Services (PFS), an independent nancial advisory rm providing advice to clients in South East Asia. In 2002 he managed the merger of PFS with six other advisory rms to form Financial Partners Interna9onal (FPI) where he took up the posi9on of Chief Opera9ons Ocer for the group. He played a key role in crea9ng and leading the opera9onal aspects of FPI as the group expanded, and at its sale to Financial Partners Bank in September 2007 the group operated in eight countries throughout Asia and the Middle East and had assets under advice in excess of US$1billion. Jeremy is a current board member of the Bri9sh Chamber of Commerce in Indonesia and a member of the Ins9tute of Directors (IoD) London. He is also an Associate Fellow of the Australian Ins9tute of Management and a member of the Australian Ins9tute of Company Directors.

Jeremy Kemp Founding Partner

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Dean holds extensive organisa9on, structuring and managerial experience and is a Permanent Resident of Hong Kong and Singapore and has served as a Consultant and Non Execu9ve Director for several companies at various stages of growth, opera9onally focused on; Analy9cal review of projects and investments, strategy formula9on, maintaining and developing the business porgolio and opera9onal and nancial management. Dean manages the groups business aspects in regards to Strategic Development, M&A, Trade and PE nancing, including structuring, for our global clients.

Dean Roberts Director / Head of Strategic Development

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Client Proposi9on

Our client is a family run business with 45 years combined experience within logis9cs and EPC contract business lines.

Key managerial sta hold in excess of 100 years professional experience between them and hold cross func9onal responsibili9es.

The Group have been in business within both Chennai and in the Gulf region for 18 years with the taxi & transporta9on sector becoming their core opera9ng development.

Business rela9onships are strong with Government bodies and are extensive within the Banking community ( in all opera9ng centres ).

The Groups key banking rela9onship is with; State Bank of india in Chennai and Qatar Interna9onal Islamic Bank (QIIB) Doha who have just provided a new QR 10million facility for acquiring 150 new vehicles.

Proposi9on - Op9ons exist for:

A strategic Opera9ng partner Sale of an equity stake in the overall business, OR an equity stake is available for the group or specic countries within

the groups opera9ons.

Strategic partner to provide: plagorm access to maximise vehicle usage, supply contract drivers to Doha and Dubai, opera9onal exper9se and or nego9ate to purchase second hand vehicles for the home market ( lel / right hand drive )

Equity Stake Is tabled as an outright 100% sale of the Chennai based business OR an equity stake of the combined business within both Chennai and Doha


The proposi9on seeks to either jointly collaborate and increase penetra9ng and developing fast growing transporta9on sectors within the Gulf region and into the Cehnnai based business OR nego9ate an outright sale of Chennai opera9ons.

Specic benets include :

Economies of scale through joint new vehicle orders from a single manufacturer The client currently replaces their Chennai and Doha vehicles from the 3rd year, this could provide a natural way to

further reduce the opera9ng age of exis9ng eets for the new venture

Management skills would be exchanged and jointly developed IT applica9ons can be rolled out to be a uniform product throughout the strategically developed Group The biggest single barrier to growth for the client is the number of drivers, collabora9on could involve ac9ve assignments

of drivers to Qatar or Dubai. Where they would be housed and oered 3 meals per day with prot par9cipa9on on their vehicles

Outright sale of Chennai opera9ons would take out a market compe9tor, allow accelerated growth and reduce the compe99ve landscape


Strategic Benets

Taxi Group Financials Revenues


Actual (650 Taxis Doha and 200 Chennai)

2012 2013

2014 (10 Months to October)

Net Revenues US$ 4.5Million 14.1Million 16.1Million

Projected (Based on Fleet of 800 Taxis in Doha and 200 in Chennai)

2015 2016 2017 2018

Net Revenues US$ 23.8Million 25.3 Million 29 Million 29.3 Million

Sales of older taxis 3.4 Million 1.0 Million

Adver9sing Revnues 0.5 Million 0.5 Million 0.5 Million 0.5 Million

Garage Rental 0.4 Million 0.5 Million 0.5 Million 0.5 Million

Total Revenue 24.7 Million 26.3 Million 33.4Million 31.3 Million

Taxi Group Financials Revenues


USD4,500,000

USD14,000,000

USD16,100,000

USD24,700,000 USD26,300,000

USD33,400,000

USD31,300,000

2012 2013 2014 (10 Months) 2015 2016 2017 2018

Focus on the Chennai Taxi Industry

Interes9ngly Chennai has been a real pioneer within public transport and is at the front of technology roll outs to transform call taxi sector in.

The demand for personal transporta9on was not tapped 9ll technology was used to bring order to the sector and convenience to the commuter. It is es9mated that only 5% of the taxi industry is organized in Chennai, the con9nuing development poten9al is quite clear.

Cab operators have developed apps that make geung a cab far easier than hailing an auto, customers using the app can not only book a cab but also track it to the loca9on.

The cab industry has realised that technology can enhance their own business and at the same 9me pass on growth to the drivers as well. Drivers also use smartphone-based apps that work as in-car naviga9on and communica9on devices as well as fare meters.

The compe99ve landscape has drama9cally changed in a very short period of 9me and is set to only enhance rider experience as more apps are developed to maximise the smart phone


Focus on the Qatar Taxi Industry

Mowasalat ( the Qatar licensing board ) has publicly stated its inten9on to more than double the current eet of taxis by the 9me the 2022 World Cup comes around from 3,000 to 7,000 taxis.

The current total eet in Qatar comprises of about 3,500 cars, with 1,200 of those Mowasalat directly run taxis, and the rest operated by three franchisees :

1,000 blue-roofed cars, 800 from maroon-roofed, and 150 from yellow-roofed Cars.


Eec9ve October 1st 2014, the Ministry of Transport announced a reduc9on in franchise fees payable to Mowasalat by 33%. By 2017 it is the Governments publicly stated inten9on to en9rely priva9se its taxis and for Mowasalat to operate solely as a regulator.

Both Uber and a local technology driven taxi service Careem began opera9ng in Qatar this year but neither see themselves as compe99on to the licensed taxi companies as they serve a dierent priced market segment i.e. higher minimum fare and also are opera9ng within uncharted waters with regards to not holding transporta9on licenses


The Wealthiest country on Earth is Qatar, according to Bloomberg. It is a small country with a popula9on of 278,000 Qatar ci9zens and almost 2,000,000 people temporarily living in the country for various reasons. Qatar is located in the Qatar Peninsula on the northeast side of Saudi Arabia.

Large oil and gas produc9on have made Qatar the worlds highest per-capita income country according to the CIA World Factbook. Per capita GDP is an astonishing $102,100. EconomyWatch.com states that 85% of Qatars exports revenues comes from oil and gas and the U.S. Energy Informa9on Administra9on report shows daily oil produc9on at 1.579 million barrels per day.

Qatar is the host of the 2022 World Cup (soccer), Bloomberg reports the na9on plans to spend more than $200 billion on infrastructure including 8 stadiums and hundreds of miles on light rail and transport.

Qatar Popula9on Growth

This will have a large posi9ve impact on non-oil growth, a moderate impact on ina9on and produce signicantly higher road conges9on in the next few years as new expatriates drive up demand for goods and services in the economy.


According to the Qatar Sta9s9cal Authority (QSA), popula9on growth began picking up in mid-2012 and rose to double-digits in June 2013 (11.3%). Qatar once again is at the top of the rankings for the worlds highest popula9on growth. Qatars popula9on is expected to reach 2.2m by end 2014, i.e. about now. This implies an average 10.5% annual growth rate over the next two years

Chennai with current popula9on of 4,828,853 (4.8 million) is one of the largest ci9es of South India. The Popula9on density of Chennai is 26903, which is currently largest in the state of Tamil Nadu.

Chennai has witnessed a tremendous growth in its manufacturing, retail, health care and IT sector in the last 10 years. It is regarded as India's fourth largest city aler Delhi, Mumbai and Kolkata.

Being a major business hub of the state, the popula9on of Chennai has witnessed a rapid growth in its Popula9on. Chennai has become an important des9na9on for trade and tourism in recent years. It has evoked as a city with tremendous poten9al for industrial growth because of its economic viability and available infrastructure. The state government departments are geared towards increasing trade and commerce links with other countries and developing greater industrial growth. This boom in the trade and business of Chennai city accounts largely for its rapidly growing popula9on. Popula9on growth chart :

Chennai Popula9on Growth


4,600,000

4,650,000

4,700,000

4,750,000

4,800,000

4,850,000

2011 2012 2013 2014 2015

Series1Series2

Chennai Demographics

Chennai Metropolitan Area contributes to a GDP of $219 billion. Chennai's economy has a broad industrial base in the automobile, computer, technology, hardware manufacturing and healthcare sectors.

As of 2012, the city is India's second largest exporter of informa9on technology (IT) and business process outsourcing (BPO) services. A major part of India's automobile industry is based in and around the city thus earning it the nickname "Detroit of India.

It is known as the Cultural Capital of South India and is the most visited city in India by interna9onal tourists according to Euromonitor. The city also serves as the loca9on of the Madras Stock Exchange and the secondary nancial hub in India following Mumbai.

Prominent nancial ins9tu9ons, including the World Bank, Standard Chartered Bank, ABN AMRO, Bank of America, The Royal Bank of Scotland, Goldman Sachs, Barclays, HSBC, ING Group, Allianz, Sumitomo Mitsui Banking Corpora9on, The Bank of Tokyo-Mitsubishi UFJ, Abu Dhabi Commercial Bank, Asian Development Bank, Credit Suisse, BNP Paribas For9s, Irevna, Deutsche Bank and Ci9bank have back oce and development center opera9ons in the city. Telecom and Electronics manufacturers based in and around Chennai include Nokia, Nokia Siemens, Motorola, Dell, Force10, Wipro, Zebronics, Foxconn and Siemens among others.

Chennai is currently the largest electronics hardware exporter in India, accoun9ng for 45% of total electronic exports


Qatar Developing as a Sports Hub

Ahead of the world cup, Qatar is already developing its interna9onal reputa9on as a spor9ng venue through hos9ng several interna9onal sports events, that include:

These events bring par9cipants, spectators and further tourist arrivals, all further fuelling transporta9on demand.


World Handball championships World Athle9cs Championships (2019)

Tennis - Qatar ExxonMobil & Qatar Total Open Qatar Masters Golf ( European tour )

Street Drag Racing Qatar racing club Qatar Interna9onal Triathlon

2022 World Cup Factor

The ethics commiAee of FIFA`s world governing body have conrmed the event will be taking place in Qatar in 2022 despite inves9ga9ons surrounding the original Qatari bid process.

Over USD 100billion in new infrastructure projects are underway including major upgrades to roads rail, airport, port, hotels, entertainment and of course sports facili9es.

Tourist arrivals are expected to rise at CAGR of 1.9% between now and 2022 culmina9ng in an expected 1 million visitors during the actual event.

It is the greatest opportunity Qatar has ever had to showcase its public transport system. The underlying popula9on growth together with increased visitor numbers ahead of 2022 comfortably supports the demand for new taxis, and the revenue projec9ons as per previous slide are conserva9ve.


Risks

Could the Group lose its license in Doha or Chennai ?

The Group was the very rst franchisee of the Royal Family owned Mowalasat, and has been supported by their various ini9a9ves since launch in 2012.

Chennai are an established business and most unlikely to suer from any nega9ve interven9on

Can business growth slow ?

Indian growth is set to outpace China and with it only fuel further demand for transporta9on solu9ons

Doha is developing rapidly and has a number of signicant world events to host

Interven9on is unlikely as it will hurt Global status and further development

Can tourist arrivals slow down ?

Qatar is driving expansion of tourist arrivals and hos9ng of interna9onal events, is highly liberal and encourages investment ows with no capital gains issues on foreign investment.

With all of the current and planned events it is highly unlikely signicant slow downs will be seen prior to the World Cup. India has taken big steps to reduce the visa issues for tourists and is already seeing arrivals outpace 2014 arrival gures


Summary

The taxi industry is rapidly developing throughout the Gulf and India, the project owners are well posi9oned and hold exis9ng licenses, drivers and a eet of taxis and buses, the business is cash ow posi9ve and is achieving opera9ng margins of approximately 55x, IRR levels in excess of 21% with strong rela9onships with licensing boards and Government bodies.

The Group are seeking either a strategic partner OR sale of an equity stake within the business.

We believe a strategic partner who could provide skilled management exper9se, systems and poten9ally tap into the pool of experienced drivers within the Group and deliver to the Client OR

An outright investment into the Clients business for which we will be glad to support nancial modeling data and process The scene is set for posi9ve growth which needs be fueled by acquisi9on or partnership

Upon conrma9on of interest and non disclosure agreements a data room is available with full due diligence materials, a nancial model and 3 years of audited nancials. We look forward to mee9ng you and introducing the principals.


Disclaimer

This Conden9al Presenta9on (the Presenta9on) is furnished on a conden9al basis to a selected number of sophis9cated investors for the purpose of providing certain informa9on about an investment in the Middle East Group, its assets, loans or securi9es (the Company). This Presenta9on is intended for the use of the persons to whom it is given and is not to be redistributed, reproduced or used, in whole or in part, for any other purpose. Neither this Presenta9on nor any informa9on contained herein (i) is intended to provide the basis of any investment or other evalua9on or (ii) should be considered as a recommenda9on by the Company that any recipient of this Presenta9on should make an investment in the Company. Each investor contempla9ng making an investment in the Company should make its own independent inves9ga9on of the nancial condi9on and aairs of the Company. No representa9ons or warran9es of any kind are intended or should be inferred with respect to the economic return or the legal and/or tax consequences from an investment in the Company. In making an investment decision, investors must rely on their own examina9on of the Company and the terms of any investment, including merits and risks involved. Prospec9ve investors should not treat the contents of this Presenta9on as advice rela9ng to legal, taxa9on or investment maAers and are advised to consult their own professional advisors concerning the acquisi9on, holding or disposal of securi9es or loans. Prospec9ve investors should inform themselves as to the legal requirements and tax consequences within the countries of their ci9zenship, residence, domicile and place of business with respect to the acquisi9on, holding or disposal of debt, and any foreign exchange restric9ons that may be relevant thereto.


The Group operates across the heart of South East Asia, we are ideally placed to help you grow your Asian business. With local talent, local knowledge and feet on the street we oer highly personalised solu9ons.

Contact Us

Contact Details

Hong Kong

6th Floor Wyndham Place40 44 Wyndham StreetCentralHong Kong

Indonesia

18th Floor, World Trade Centre IIJl Jend Sudirman Kav. 29-31Jakarta 12920Indonesia

Singapore 47 Hill Street#06-06 SCCI BUILDINGSingapore 179365

United Kingdom

36, PanTles CloseSt Johns, Woking Surrey GU21 7PTUnited Kingdom

Telephone : +62 21 2939 2006 Facsimile : +62 21 2939 2001 Website : www.one-asia.biz Email : [email protected]

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Chennai and Doha Summary

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