Commercial Engineers and Body Builders Co Ltd. (CEBBCO) Investor Presentation November 2011

Important Notice

Forward Looking Statements

This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to CEBBCO’s future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. CEBBCO undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances

2

Agenda

3

1. Investment Highlights 4

2. Business Overview 5

3. Strategy 11

4. Management and Board of Directors 12

5. Financial Overview 14

6. Industry Overview 18

7. Corporate Social Responsibility 20

Investment Highlights

4

Str

on

g M

ark

et

Po

siti

on

One of the leading producers of tippers and load bodies for defence and domestic market

Comprehensive product portfolio in commercial vehicles for application across industries

Presence across 3 segments of railways rolling stock – locomotives, coaches and wagons

Att

ract

ive

Gro

wth

O

pp

ort

un

ity

Expansion in the high growth power fabrication segment with strong customer recognition

State of the art railway wagon plant with latest machinery and equipment

Exposure to the high growth infrastructure sectors in India – Road transport and railways

Op

era

tio

nal

Ex

cell

en

ce

Blue chip customer base with focus on diversification

Strategically placed manufacturing facilities with proximity to customers and vendors

Design and engineering capabilities provide high quality and industry leading standards

Diverse Product Portfolio

5

Commercial Vehicles

Mining & Road Construction

Goods Transportation

Miscellaneous Applications

Solid Waste Management

Municipal Applications

Defense

Application Products

• Tipper bodies • Tanker bodies

• Refrigerator-fitted vehicle bodies /containers • Load cargo bodies • Trailer bodies

• Skip loaders • Garbage bin collectors

• Water tanker bodies • Light recovery vehicle bodies • Garbage tippers

• Troop carrier vehicle bodies • Prison van bodies • Water bowser bodies

• Vehicle bodies for transportation of animals • Fire engine bodies • Ambulance bodies

Diverse Product Portfolio

6

Railways

Railways Components

Application Products

• Upgradation and refurbishment of BOXN wagons • Components for locomotives • Components for BOXNR wagons • Components for coaches

Power

Boilers and ESP

Application Products

• Structurals for boilers and electrostatic precipitators (ESPs)

0

20

40

60

80

100

2008 2011

(%)

Top Client Other Clients

Blue Chip Customer Base

7

Top Customer Accounted for 63% of Total Sales in FY2011 Compared 74% in FY2008

Commercial Vehicles

Railways Power

2008-11 Revenue CAGR (%)

36%

15%

Revenue Contribution

by Client

Above clients are arranged alphabetically

Strategically Placed Manufacturing Locations

8

Proximity to Customers

Jabalpur serves as a central location to major OEM hub across India

Near key customer in Indore and Jamshedpur

Proximity to Suppliers

Strategically located closer to the suppliers of steel in Orissa and Jharkhand

Manufacturing facilities (6)

Major OEM hubs in India

Suppliers of Raw Material

Other Locational Advantages

Lower labour, land and overhead costs provides advantage over other locations

Benefits under the Madhya Pradesh Industrial Investment Promotion Assistance Scheme, 2004

Jabalpur (4)

Jamshedpur (1)

Indore (1)

Location in Central India Provides Competitive Advantage

State of the Art Manufacturing Facilities

9

Richhai I, Jabalpur

Factory Locations

Mandla, Jabalpur

Richhai II, Jabalpur

Indore

Jamshedpur

Focus on Technology and Quality

Research & Development Quality Certifications

Weld Testing and Training Facility

ISO 9001:2008 Certificate for Quality

Management System

for Automobile Bodies and

Components for

Commercial Vehicles

ISO 9001:2008 Certificate for Quality

Management System

for Railways Products

20 engineers to develop new designs for a range of products

First Indian company to manufacture a complete stainless steel tipper; under evaluation by customers

Manufactured a unique bulker that carries fly ash on one side and clinkers on the other side for the most optimum utilization

State of the art reefer plant to manufacture refrigerated vans as per European ATP (food grade) standards

New Railway Plant,

Jabalpur

Receipt of Order

Advance Product Quality Planning Product Part Approval Process

Failure Mode and Effect Analysis

Tooling

Raw material procurement

Machine shop operation

Sub-assembly

Cleaning and rust proofing

Final fitment / cubbing assembly

Final painting

Fitting of accessories

Inspection as per check list

Final finishing

Document check

Dispatch

Order receipt and procurement

Manufacturing process

Quality check and dispatch

Integrated Manufacturing Process

10

Manufacturing Process Supported by World Class Infrastructure

Robotic fabrication

system

Computerized numerical

control press

Numerical control

shearing machine

Centralized gas bank for

welding

Shot blasting booth

Five-ton electric

operated trolley

Paint booth

200 and 300 cubic feet per

minute compressors

Power

World Class Manufacturing

Facilities

State of the Art Technology

Experienced Management

Team

Growth Strategy

11

Leverage Existing Capabilities to Expand Product Offering and Mitigate Risk

Commercial Vehicles

• Expand presence in emerging sub segments

• Consolidate market position and win new clients

• Focus on business from private fleet owners

• Strengthen relations with existing customers

• Leverage partnership in the refrigerated segment

Railways

• Strong expected demand from Indian Railways

• Setting up a wagon and EMU coach manufacturing plant in Jabalpur

• Aggressively bid for new railway tenders

Power

• Capitalize on strong demand

• Continued focus on power structurals, i.e. ESPs and boilers

• Brownfield expansion ongoing

Management & Board of Directors

12

Experienced Management Team

Key Executives Background

Dr. Kailash Gupta

Chairman and Managing Director

• Over 30 years of industry experience

• Former President of the Federation of Automobile Dealers Associations (FADA)

• Currently an active member of FADA Governing Council

• He holds a post graduate degree in Physics from DAV College, Meerut University. He was awarded a Doctorate degree by the Jabalpur University

Ajay Gupta

Executive Director

• Instrumental in conceiving and extending business in the railways industry

• A Commerce graduate from University of Mumbai and has completed a one- year Business Leaders Programme from IIM, Kolkata

Amit Kumar Jain

Chief Financial Officer

• Over 15 years of experience in finance, taxation and accounts

• A Chartered Accountant from the Institute of Chartered Accountants of India

Abhishek Jaiswal

Executive Vice President

• Over 18 years of experience in sheet metal fabrication and 3 years in the automobile industry

• Currently responsible for production and operations

• Holds a graduate degree in Production Engineering from GSI, Indore

Pradeep Gupta

Executive Vice President, Railways

• Over 30 years of experience in project management, manufacturing, marketing, product engineering, vendor development and export execution in the railway industry

• Holds a graduate degree in Mechanical Engineering from Punjab Engineering College, Chandigarh

Management & Board of Directors

13

Board of Directors

Shyam Mani

Managing Director, Tata Motors Finance (a 100%

subsidiary of Tata Motors)

Dr. Kailash Gupta

Chairman and Managing Director

Ajay Gupta

Whole-time Executive Director Akhil Shriprakash

Awasthi

Managing Partner, Tata Capital Private Equity

Sevantilal Popatlal Shah

Retired General Sales Manager, Tata Motors

Arun Kumar Rao

Retired Director General, RDSO, Lucknow

Sudhir K Vadehra

Managing Director, Kewaunee Labway

(Singapore)

Ravi Gupta

Industrialist

Experienced and Independent Board

Members

Independent Directors Non-Executive Directors

Key Board Member Background

Shyam Mani Additional Director

• Currently Managing Director of Tata Motors Finance, a 100% subsidiary of Tata Motors • Previously Mr. Shyam Mani was VP, Sales and Marketing at Tata Motors Commercial Vehicles

Business Unit

Arun Kumar Rao Independent Director

• Served Indian railways for 38 years and retired as Director General, RDSO, Lucknow • Graduate from BITS, Pilani and the Institution of Mechanical Engineers, London

Sevantilal Popatlal Shah Independent Director

• Retired General Sales Manager, Tata Motors and is currently the Director General of Federation of Automobile Dealers Associations

• He is a qualified Mechanical Engineer

Promoters54.96%

Foreign Institutional

Investors

7.34%

Venture Capital

Funds

10.93%

Foreign Venture

Capital

Investors11.94%

Retail14.83%

Ownership Structure

14

Backed by Blue Chip Global Investors

Shareholding as of Sep 30, 2011 Other Corporate Information

Outstanding Shares (Sep 30, 2011): 54,942,964

52 Week High /Low (`): 144.80 / 27.50

Bloomberg: CEBB:IN

Reuters Ticker: CEBB.BO

BSE / NSE Ticker: 533272 / CEBBCO

* As of November 8, 2011

1,842 1,930

4,286

6,184

7,544

2008 2009 2010 2011 H1 FY2012

Order Book (` million)

65

14

203

57

1645.5%

1.3%

11.1%

2.7%

8.3%

2008 2009 2010 2011 H1 FY2012

Net Income (` million) Margin (%)

1,1921,120

1,829

2,1221,973

2008 2009 2010 2011 H1 FY2012

Net Sales (` million)

16098

413

204

302

13.5%

8.7%

22.6%

9.6%

15.3%

2008 2009 2010 2011 H1 FY2012

EBITDA incl Other Income (` million) Margin (%)

Financial Overview

15

Order Book Net Sales

EBITDA and Margin Net Income and Margin

Financial Overview

16

(` million) Q2 FY2012

Net Revenue 1,161

EBITDA (incl. Other Income) 157

EBITDA Margin (%) 13.5%

Cash Profit 118

Cash Profit Margin (%) 10.1%

Net Profit 95

Net Profit Margin (%) 8.2%

Basic EPS (`) 1.73

Q2 FY2012 Financial Highlights

Operational Efficiency

17

Ensure Better Productivity and Healthier Balance Sheet

Lean Manufacturing

Six Sigma Activities Improved Margins and Cash Flows

Competitive Cost Advantage

• Lower land, labor and overhead costs due to location in smaller cities

• Economies of scale

• Ability to re-negotiate prices with vendors

Steel Price Fluctuation

• Ability to pass on price hikes to customers

• Focus on working capital management

• Long standing relationship with key suppliers

83%

6%

1%4%

1% 5%

Raw Materials Consumed Stores and Spares Consumed Power and Fuel

Labour Charges Repairs and Maintenance Personnel Expenses

FY 2011 COGS

9.3%8.9%

8.3%7.8%

8.4% 8.5%

6.0%

8.0%

10.0%

12.0%

Q1 Q2 Q3 Q4 FY2012E FY2013E

150

160

170

180

190

200

210

Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

Manufacturing General

Macroeconomic Overview

18

Real GDP Growth Rate Index of Industrial Production

Per Capita Income and Growth Per Capita Consumption

FY2011

Source: Ministry of Statistics and Programme Implementation, World Bank Source: Ministry of Statistics and Programme Implementation

Source: indiabudget.nic.in

32,01234,533

37,328 38,69540,745

7.6% 7.9% 8.1%

3.7%5.3%

3.0%

5.0%

7.0%

9.0%

0

9,000

18,000

27,000

36,000

45,000

FY2006 FY2007 FY2008 FY2009 FY2010

Per Capita Income (Rs.) Growth (%)

18,90920,168

21,841 23,012 23,626

59.1%

58.4% 58.5%

59.5%

58.0%

57.0%

57.5%

58.0%

58.5%

59.0%

59.5%

60.0%

0

9,000

18,000

27,000

FY2006 FY2007 FY2008 FY2009 FY2010

Per Capita Consumption (Rs.) as % of Income

Source: indiabudget.nic.in

567

1,420

2,230

2010 2015E 2020E

~ $540 mn • Setting up a factory to manufacture LCVs

$62 mn • New engine plant in Madhya Pradesh

~$44 mn • Product development

~$32 mn • Investment plans in Madhya Pradesh with capacity of 12,000 units

n/a • Investments to achieve annual sales of approximately 2,000 trucks, 1,000

buses and 1,500 engines in next 5 years

Economic growth

Availability of financing

Government support and initiatives

Scheme for promotion of cold chain infrastructure

Restriction on overloading

Increasing CV ownership by fleet operators

Industry Overview

19

Commercial Vehicles

Commercial Vehicle Production ('000 units) Industry Growth Drivers

Continued Investments by Global OEMs

Source: ACMA and IBEF

16

8 26

6

44

7 55

9 62

1

83

0

15

7 24

5

39

6 51

7

55

9

74

7

1121

5142

62

84

VI Plan VII Plan VIII Plan IX Plan X Plan XI Plan

(bil

lio

n

un

its)

Demand Supply Deficit

33,9096,912

690 555

255,227

43,968

4,644 3,726

Wagons Passenger Coaches

Diesel Locomotives

Electric Locomotives

Short Term (FY2011 - FY2012)

Long Term (FY2013 - FY2020)

Industry Overview

20

Indian Railways Power

Source: Indian Railways Vision 2020

Aggressive plans for expansion, modernisation and replacement of old coaches and wagons

2011-12 Budget allocated the highest ever annual outlay of ` 57,630 Crore

Estimated procurement of 18,000 wagons in FY2012

The gap between in-house production capacity and future demand is to be filled through Public Private Partnerships (PPP)

The Government of India has set capacity addition targets of 62 GW for the ongoing Eleventh Five Year Plan Period

The majority of capacity additions will be for thermal power generation, which is expected to account for 81.4% of the total capacity additions by 2012

Source: IBEF

Corporate Social Responsibility

21

Committed Towards Welfare of the Society

Health Check up for Employees

Community Drinking Water

Health Check up for People in the Locality

Active Participation in Local School Events

Distribution of Toys to Kids

Distribution of Prizes on Independence Day

22

Contact:

Commercial Engineers & Body Builders Co Ltd (CEBBCO)

124, Napier Town

Jabalpur 482 001, India

+91 761 245 1941 - 43

Divitya Bansal, CEBBCO divit@cebbco.com

Saket Somani, Churchgate Partners saket@churchgatepartnersindia.com