Alissa group profile

Abdullatif Alissa Group 1
Alissa Group Profile
Mar. 12, 2009

Table of Contents
1. The Group
1. History
2. Business Segments
3. Organization Structure & Approach
2. The Saudi Market
3. Operating Companies
1. Abdullatif Alissa Automotive Co. (AACO)
2. General Automotive Co. (AUTOSTAR)
3. Al-Yusr Installment Co. (AL-YUSR)
4. Best Rent-a-car (BTC)
4. Investment Activities

Abdullatif Alissa Group

History – Group Automotive Business
1940 : Started commercial business in Eastern province of Saudi Arabia
1950 : Started selling vehicles from the Eastern province
1960 : Expanded Car business in Riyadh
1960 : Launched ‘Al-Yusr’ in financing business
1968 : Awarded the sole agency of LUCAS/DELPHI group of companies
1974 : Awarded dealership for vehicles and parts.
1985 : Awarded motors franchise
1990: Awarded the dealership of
1990: Launched ‘Best’ rent a car business
1994-97: Won the prestigious Cadillac Master Dealer Contest four years in a row
1998: Launched General Automotive Company (AUTOSTAR) as a multi-brand car retailer
2006: Acquired Japanese accessories franchise Yellow Hat.
2007: Achieved GM “Chairman’s Challenge” award for the fifth time
2008: Acquired distribution rights for East European HD Truck Franchise (AVTOKRAZ)
2008: Signed an alliance with Group 1 Automotive, Inc. a Fortune 500 automotive retailer
Proven record of successful partnering and pioneering

Business Segments
Total workforce of 2400, assets under management of $1 Billion
with 70% invested in Core Automotive Sector
Abdullatif Alissa Holding Co.
Private Equity
Public Listed
Investment
Best Rent-a-car Al-Yusr
ISUZU
Alissa Auto General Auto
(Autostar)
Real Estate and
Construction
GM
Automotive
(Franchised)
Automotive
(Non Franchised)
Retail Finance
SPC
Alissa Auto

Our Strengths
 Respected ALISSA name
 Over 50 years of experience partnering with international
brand names
 Strong track record of pioneering new businesses
 Strong business planning and management disciplines
 Empowered corporate structure
 Investment in Human Resource development and training
 State-of-art MIS systems

Our Guiding Principles
 We are committed to team work, learning and service
excellence
 We will continue to enhance stake holder's value by
meticulously managing our businesses.
 We will grow by creatively diversifying into new products
and services.
 We will forge long term alliances with partners, mutually
adding value to our respective businesses.

Our Management Structure
Board of Directors Board Audit
Committee
Group Internal Audit &
Risk Mgmt. Manager
Chairman & Managing
Director
Sh. Abdulmohsen Alissa
GM, LegalChief Financial
Officer
GM, Investment &
Business
Development
Group Advisor,
Planning &
Performance Mgmt. *
GM, Al-Yusr Installment
Co.
CEO, Abdullatif Alissa
Automotive Co.
GM, Specialized Projects
Company
CEO, Automotive
Division *
GM, General Auto. Co.
GM, Best Trading Co.
GM, Group HR
GM, Group IT
Manager, Facilities
GM & ISUZU
GM, Best Rent-a-car

Our Planning & Review process
Bi-Weekly
Business Reviews
3 – year
Business
Plan
BU/Op. Co.
Monthly
Business Reviews
Op. Co. BU &
Group
Quarterly
Business Reviews
Op. Co. Mgnt. &
Board
Extensive Training & Incentivised Performance Management

Our Corporate Governance
 Separation of Ownership and Management roles
 Active Board and Board Committees with independent NED
 Three (3) Special Focus Committees of Finance, HR and Audit
 Adopted corporate governance guidelines
 Empowered Management with defined review cycle
 Implemented Balanced Scorecard Methodology with defined
objectives, targets and measurements
 Established in-house training department with extensive annual
technical/soft skills training programs, mentoring and fast tracker
schemes
 Revised and upgraded HR Management guide with special focus on
performance management
 Aligned Organization structure, Job description, Job grading, career
path and compensation structure to market and best practices

Business Support Infrastructure
 Established CCC and Call Center with in & Outbound capabilities
 Commissioned independent customer satisfaction and mystery
shopping program with AC Nielsen
 Implementing IBM COGNOS performance management software for
planning, KPI’s, score carding, reporting etc.
 Continuous investment in upgrading Computer hardware, networks,
communications and security
 Strong In-house Group IT Department of 30 staffs capable of In-house
system development, training and process re-engineering
 Upgraded to Kerridge latest Version 8.35 with strong graphic
capabilities.
 Installed high speed networks, latest servers and security system (ISS-
IBM)
 Developing automated workflows using Adobe

Geographic Coverage

Consolidated Group Revenue
1,643
2,226
2,681
3,141 3,400
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
04 05 06 07 08
(SR Millions / $ Millions)
($ 430)
($ 594)
($ 715)
($ 838)
Consistent Growth out performing the market
($ 907)

Growth Trends(SRMillions)
(SRMillions)
% Growth 10% 20% 0% 29%
Alissa Auto (AACO) General Auto (Autostar)
Al-Yusr Best Rent-a-car (BTC)
% Growth 27.3 19.4 -11.0 25.5 % Growth 6.2 25.5 16.7 8.2
(SRMillions)
No.ofVehicles
811
1196
1582
1774
1924
0
500
1000
1500
2000
2500
2004 2005 2006 2007 2008
% Growth 47.5% 32.3% 12.1% 8.5%
444
488
594
587
761
0
100
200
300
400
500
600
700
800
2004 2005 2006 2007 2008
113
120
145
182
197
0
50
100
150
200
250
2004 2005 2006 2007 2008
8,535
11,687
14,500
12,900
16,200
0
5,000
10,000
15,000
20,000
04 05 06 07 08

Consolidated Balance Sheet
In US$ Millions
2004 2005 2006 2007 2008
Total Assets 473 709 743 965 1,000
Shareholder's Equity 223 289 284 370 320
% Asset Growth (2004 as base) 49.9 57.1 104.0 111.4
% Equity Growth (2004 as base) 29.6 27.4 65.9 43.4

The Saudi Market
Automotive Sector

Persons Per Vehicle
Market growth will accelerate in view of low
penetration and demographics

Saudi Auto Market
'04 '05 '06 '07 '08 '09 '10
New Car Sales 318 387 435 490 530 575 605
318
387
435
490
530
575
605
0
100
200
300
400
500
600
700
Units(1000s)
New Car Sales
Growth Rate % 9.7% 21.7% 12.4% 12.6% 8.2% 7.5% 7.0%

Saudi Market Potential
 Low penetration of vehicles / person, favorable
demographics and macro economic factors are
contributing factors to continued growth in the
automotive sector
 Manufacturers with good product line, sound
distribution network and quality after sales services will
benefit from the boom

Operating Companies

Abdullatif Alissa Automotive Co. Ltd.
(AACO)

Background
 Established in 1950
 Franchisee for GM since 1974 & Isuzu since 1985
 3rd largest franchisee for GM in the Middle East
 3rd largest franchisee for Isuzu in the Middle East
 2nd largest automotive distributor in the Central region
after Toyota
 No. of branches increasing from 6 in 2006 to 15 by 2010
with 3S & 2S facilities
 Service bays increasing from 103 in 2004 to 204 in 2010
Additional bays in progress for recently approved sites
 Total staff as of Dec 2008 - 624

Total Vehicle Sales (GM & Isuzu)
Alissa % Growth 44% 37% 8% (-4%)
Market Growth 21% 12% 12% na
Alissa outpaced the market

South Ring Road Facility

General Automotive Co.

 Engaged in
 Sale of multi-brand new and used vehicles
 Provider of After-sale services
 Wholesale of spare parts (OEM & Non-OEM)
 Auto accessory
 H/D Truck distribution
 The only “Non-Franchised” company in KSA providing multi-brand 3S
facilities Kingdom-wide.
 Number of vehicle showrooms increasing from 9 in 2007 to 16 by 2009
 Number of Parts outlets (Wholesale & Retail) increasing from 34 in
2007 to 37 in 2009
 Total Staff as of May 2008 – 572 employees
Background

Revenue
(SR Millions)
% Growth 10% 20% 0% 30% 16% 20%

Autostar Outlets
Showrooms Service No. of Bays Parts
Jeddah 1 Jeddah 2 Jeddah 52 Central 10
Makkah 1 Makkah 1 Makkah 3 Eastern 13
Riyadh 4 Riyadh 2 Riyadh 125 Western 11
Buraidah 1 Buraidah 1 Buraidah 26
Dammam 2 Dammam 1 Dammam 50
Al-Hasa 1 Al-Hasa 1 Al-Hasa 3
Al Khobar 1
Abha 1
Total 12 Total 8 Total 259 Total 34
Dedicated stockyards and warehousing available in each region

1) Auto Accessories (Yellow Hat)
2) H/D Truck (AvtoKraz, Ukraine)
3) Used Car Supply Chain (Group 1 - USA)
4) State-of-Art Body & Paint Shop
New Business Initiatives

Al-Yusr Installment Co.

 Established in 1960 as one of the pioneers in the auto
financing business
 Engaged in financing of New and Used Vehicles, expanding
into real estate mortgaging.
 Portfolio under management exceeding $800mm.
 Signed $260mm loan facility with Riyadh Bank to promote Al-
Yusr Auto financing
 Structured and reorganized to service non-Group automotive
business as well
 Sophisticated and automated credit and risk management
systems, first non-bank organization to have direct link up
with SIMAH (Saudi Credit Bureau)
 Branch network (9) increasing to 18 by 2009 covering all
major town centers in the kingdom
Background

No. of Vehicles Financed
Average Annual Growth of 29% (‘04-’10)

Best Trading Company
(BTC)

 Rental and leasing of vehicles to retail and corporate
clients. Over 70% of the fleet in corporate sector
 Fleet of over 8,800 vehicles increasing to 15,000 by 2012
positioning BTC as a second largest operator.
 Replacing annually over 4,800 vehicles in 2008 increasing
to 9,600 by year 2012 mostly from within/through the
group companies
 16 outlets and 3 regional offices in 2008 increasing to 35
outlets by 2012.
 Total Staff as of May 2008 – 510 employees increasing to
over a 1,000 by 2012
Background

Very successful turnaround since 2004
Revenue
(SR Millions)

BTC is a very large purchaser for Group companies
Fleet Size / Purchases

Investment Activities

Investment Portfolio
Finance
 Rasameel Structured Finance Co. (Securitization, debt & asset re-
structuring)
 Gulf Capital (Private equity, Investment banking, Real estate & asset
management)
Industrial
 Saudi Industrial Investment Group (Petrochemicals)
 Basic Chemical Industries Co. (Chemicals Manufacturing)
 Saudi Vitrified Clay Pipe Co. Ltd. (Pipe Manufacturing)
 Advanced Construction Holding Co. (Construction Material)
 Gulf Ferro Alloys Co. (Metal alloys manufacturing)
 Middle East Battery Co. (Automotive Batteries)
 Arab Paper Manufacturing Co. Ltd. (Paper mill – recycled paper)
 Gulf Salt Co. Ltd. (Salt production)
 Bahrain Aluminum Extrusion Co. (Aluminum products)
 Light Building Material Co. (Siporex)

Investment Portfolio
Insurance
 Royal & Sun Alliance Insurance Ltd. (Insurance products & services)
Service
 Saudi Development & Re-Export Services Co. (All port-related
services)
 Chemicals Marketing & Distribution Co. (10%) (Marketing &
Distribution)
Real Estate
 Inmaia Real Estate & Tourism Investment Co. (Ownership,
development and management of commercial real estate and tourism
related projects)
 Gulf Real Estate Co. (Real estate investment and development)
 Makkah Hotel Co. (Hotel ownership, investment & operation)

In Brief
 Alissa core business is Automotive and shareholders
are committed to expanding in this sector
 Alissa has an impressive record of growth outpacing the
market
 Alissa has developed strong Corporate Governance,
management systems & empowered management
 Alissa has an investment–oriented business approach
 Automotive market in Saudi Arabia is poised for strong
growth and Alissa Group believes that its strategic
alliance with industry leaders would deliver above
market growth for mutual benefits

Thank You

Alissa group profile

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