Copyright 2005 Frost & Sullivan1 A Strategic Appraisal of the Opportunities in Eastern European automotive finance market B420 Report Hand Over Presentation 5th January 2005

Copyright 2005 Frost & Sullivan2 Agenda The Industry Structure Markets Products & Forecast dimensions Sample Forecasts & Analysis Profiles & Market Share Snapshots Strategic Recommendations Report USPs User Profile and Needs Hot Prospects Report Pricing

Copyright 2005 Frost & Sullivan3 Industry Structure Vehicle Manufacturer Customers Banks and Direct Lenders Point of Sale Captive Finance Companies Independent Finance Companies Dealers

Copyright 2005 Frost & Sullivan4 EU Accession Countries

Copyright 2005 Frost & Sullivan5 Why Eastern Europe? Lower Income levels Changes in Tax legislations Car price increases Changes in Borrowing trends Changes in Banking landscape Increasing Used car imports New age Marketing Joint Ventures and Mergers “Recent Accession brings new Opportunities and Challenges”

Copyright 2005 Frost & Sullivan6 Products Hire purchase Car Finance Products Leasing Operational Leasing Finance Leasing Balloon Purchase Value Added Products: Gap Insurance Extended warranties Maintenance Repairs Credit cards

Copyright 2005 Frost & Sullivan7 Dimensions for Analysis POS Finance Industry (Passenger cars-Retail) Finance Penetration Finance Cases Average Loan Average Deposit Total Advance NEW CARSUSED CARS

Copyright 2005 Frost & Sullivan8 Eastern European Autofinance market (TOTAL)

Copyright 2005 Frost & Sullivan Customer Priorities Customer Priorities Customer Priorities 1. Value added products 2. Brand conscious 3. Ownership 1. Flexible financing 2. Value Added Products 3. Ownership 1. Low cost 2. Value Added Products 3. Usage Customer Priorities Trajectory

Copyright 2005 Frost & Sullivan10 Eastern European Autofinance market (TOTAL)

Copyright 2005 Frost & Sullivan11 Forecasts – POS finance dimensions

Copyright 2005 Frost & Sullivan12 Sample Data Sheets

Copyright 2005 Frost & Sullivan13 Captive finance company Profiles Profiles for – SkoFIN (VWFS) RCI Banque- Renault & Nissan PSA Banque General Motors Acceptance Corporation Independent finance company profiles Profiles for – GE Capital CSOB Leasing CAC Leasing CIB Leasing Market Share samples

Copyright 2005 Frost & Sullivan14 Strategic Recommendations

Copyright 2005 Frost & Sullivan15 Strategic Recommendations

Copyright 2005 Frost & Sullivan16 Awards Market Leadership Award CSOB Leasing (Czech & Slovak Republic) Market Penetration Leadership Award GE Capital Business Development Strategy leadership RCI Banque Competitive Strategy Leadership PSA FINANCE FOCUS MARKETING STRATEGY: Products, Price and Promotions ENTRY STRATEGY: Choice of Partners DEALER STRATEGY: Building Relationships Define objectives. Carefully Recruit Dealers and participate in dealer staffing and role planning F&I managers Support dealer staff to evaluate customer needs and perceptions. Standardize credit scoring methods Allocate F&I managers to manage dealerships Evaluate dealer performance monthly and monitor individual target results Motivate and recognize star performers, repeat business, increased loyalty/retention Provide Stock financing and infrastructure support GE CAPITAL Dealer management Process F&I managers provide training for dealers regarding Products, services and environment factors Provide dealer commissions and incentives to increase loyalty to GE brands products

Copyright 2005 Frost & Sullivan17 Research Service USPs Research Service structure - Total Eastern European Chapter- trends, market engineering measurements, distribution, profiles and Strategic Recommendations Country Chapters including new and used car market analysis, product breakdown and forecasts until 2011, preferred vehicle purchasing methods, market share analysis and data sheets. Identifies Market- Technology, Social and Legislative Trends affecting the POS Finance market Significant value added content in each chapter - Qualitative and Quantitative analysis - Key Market trends for every New EU market Trends and Forecasts of Penetration, cases, loan, deposit, advance. Finance product trends, Trends in Vehicle purchasing methods Future Strategies for Captives and Independents No single research service analysing the above quantitative trends in POS finance market

Copyright 2005 Frost & Sullivan18 User Profiles and Needs

Copyright 2005 Frost & Sullivan19 Hot Prospects Captives Banque PSA Finance SA Daimler Chrysler Services Bank Polska SA Ford Credit Fiat Bank Polska S.A. GMAC Bank Polska SA Renault Credit Polska Toyota Bank Polska SA Volkswagen Bank Polska S.A Daimler Chrysler Services Bohemia s.r.o. GMAC Czech Republic Renault Leasing CZ,s.r.o. ŠkoFIN s. r. o. Toyota Financial Services Czech, s.r.o. GMAC-Slovak Volkswagen Finance Sluzby Slovensko s.r.o Independent finance companies Bank Pekao GE Capital Bank S.A. Raiffeisen Bank Polska S.A. ul. Piękna 20 PTF Bank CAC LEASING, a.s. CCB Finance, a.s. CSOB Leasing GE Capital CZ OB Leasing-Czech VB Leasing CAC LEASING Slovakia, a.s. CSOB Leasing-Slovakia GE Capital Leasing a.s OB Leasing-Slovak Tatra Leasing s.r.o VB Leasing SK. S.r.o AFIN Hungary Captives continued… GMAC Hungary Renault Credit Lizing PSA Finance Hungary RCI Leasing Romania Porsche Leasing Romania SRL

Copyright 2005 Frost & Sullivan20 Hot Prospects (continued…) Independent finance companies Continued… CIB Group Erste bank (Posta bank) GE Capital (-Budapest Bank) KDB Bank HVB Bank Hungary Rt. K&H Bank (ABN Amro Bank) MAGYAR KÜLKERESKEDELMI BANK Rt. (MKB) Merkantil Bank Ltd. Hypo Alpe-Adria-Bank International AG Raiffeisen Leasing (Slovenia) d.o.o LB Leasing -Slovenia AFIN Romania SA BCR Leasing SA Euro leasing Romania SA Independent finance companies Continued… Finans Leasing S.A. HVB Leasing Romania SA Raiffeisen Leasing SRL Volksbank Leasing Romania SRL AFIN Leasing-Slovakia Hansa Leasing Lithuania Nord LB Leasing Nordea Finance Lithuania SAMPO Leasing Lithuania UAB AFIN Lithuania VB Leasing-Lithuania Nordea Finance AS AFIN Estonia Nordea Estonia

Copyright 2005 Frost & Sullivan21 Report Pricing Report Price- € 7500 ($ ) Bottom Line: “Our product is not just a research service,We sell solutions, We sell Opportunities!”

Copyright 2003 Frost & Sullivan Confidential22 Questions?