Andy Rácz Chief Executive Officer BSE Roadshow - London June 17, 2002 New Solutions in the Bus Industry

A Genuine Enterprenurial Story  First year in business: 1994  Annual growth rate over 9 years of operations: 40%  Number of buses sold since 1994: 3,900 pieces

Promises fulfilled  Market share (2002P): 20%1. Increase US market share Actual fact IPO promise  Optare acquisition (UK)2. Enter European market  14 new models in 9 years3. One new product each year  3000 buses worth $1 billion4. Healthy order backlog  1600 buses planned for ‘025. Increase capacity  Aftermarket revenue: 11% (of total) 6. Develop aftermarket service

Ingredients of Success  Competitive markets, demanding customersBusiness model:  Highly skilled shopfloor staffThe Team:  Deliver exactly what the customer needs  React quickly and flexibly  Master new technologies, create new solutions  Talented engineers  Professional management  Specialize in building (transit) buses

SWOT analysis Strengths Successsful business model Fresh, advanced product range Capable team Weaknesses Overweight in US market Opportunities Test the business model in other (demanding) markets Commercialize CompoBus™ technology Threats Unforeseeable macroeconomic deterioration

Medium-term Strategy  15% y-o-y sales growth over (reaching US$ 500 million in total revenues) Organic growth:  Hungarian / CEE marketNew markets:  30% y-o-y net income growth  Continue new product development  Continental EU  East Asia

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