Rába Automotive Group

Continued Transition

2002 © Rába Rt.2

Sales revenue HUF 57.3 Md

US$ 200 m

Export sales ratio 61.0%

After tax profit HUF 1,802 m

US$ 6.3 m

EPS (HUF/share) 141

ROA (%) 2.6

ROE (%) 4.6

Number of employees

(31Dec 2002) 5,310

Market capitalization HUF 22.8 bn

(31 Dec 2002 ) US$ 85 m

Key Statistics - 2001 *

*Consolidated and audited figures

Rába benefits from:• Over 100 years of engineering expertise • Cost effective manufacturing• Excellent geographical position

Rába offers:• Leading edge technology• Competitive cost structure• Short time-to-market combined with

strong customer focus

Rába is one of Hungary’s largest automotive manufacturers.

Committed to meet the increasingly high standards of the modern automotive industry.

Rába at a Glance

2002 © Rába Rt.3

Rába HoldingRába Holding

Axle Engine

Shareholder level

Real Estate

Business level

Automotive Components

Specialty

Vehicles

Business Strategy

Becoming a world class

supplier on the world market

Under the process of selling off

Selling or utilizing all

of the excess real

estate

Exploiting regional growth

Participation in both domestic and

foreign military tenders

Strategic

co-operation with DaimlerChrysler

Forging a closer

relationship with

European OEMs

Technical center

2002 © Rába Rt.4

Markets and Customers (2001)

Axle Business

Product Range & Market Segments

EU: Doppstadt GmbH., Daimler Chrysler, MANCEE: Russian, Ukrain, Czech customers

USA: Dana, ArvinMeritor, Deere Co., Caterpillar

Asia: Vamco (Iran), Daewoo, Isuzu

Domestic: Ikarusbus, BPW-RÁBA

S.-America: Meritor Brasil, HVR

Product and market strategy

• Strengthening participation in product development and outsourcing projects

• Reinforcing US position through customer specific competence centers

• Europe-focused geographical diversification through captive R&D and co-operation

• Enhancement of efficiency by reduction in the product range and aggressive cost-cutting

Trucks Category 7-8Trucks Category 7-8 BusesBuses Specialty VehiclesSpecialty Vehicles

0

20

40

60

80

100

120

2001

M USD

Rolling chassisRolling chassis

2002 © Rába Rt.5

Components Business

EU: ISE Gmbh., Sears Ltd., Breda S.p.a.,Benteler A.G., NAF, Lear, Opel PolskaDenso, Deutz, Visteon

PartsParts SeatsSeats Cutting, MachinedCutting, Machined

Product Range & Market Segments

Markets and Customers (2001)

Seat Systems Metal parts

0

10

20

30

40

50

60

2001

M USD

Domestic: Magyar Suzuki Rt, Ikarusbus Kft.,NABI Rt, Bombardier Transportation

Product and market strategy

• Pressed and cut vehicle components with a substantial life-span for global TIER1s

• Participation in forward-sourcing projects of the regional OEMs.

• Seats for commercial and rail-guided vehicles

• Seat components for European OEMs and Tier 1 suppliers

Pressing, Assembling Pressing, Assembling

2002 © Rába Rt.6

Joint development, manufacture and distribution of a world class, competitively priced, state-of-the-art vehicle family.

Development: DC-RABA Joint VentureProduction: Final assembly exclusively at RábaMarket: Military Tenders worldwide (Hungary, UK, etc.)

Specialty VehiclesStrategic Co-operation with DaimlerChrysler

The Hungarian Military TenderA promising opportunity still awaiting

governmental decision

• Military vehicle manufacture is one of Rába’s traditional activities and strengths

• Significant engineering and manufacturing expertise

• Existing capacities for technical development• Over a successful pre-qualification process• A major growth opportunity for Rába’s

domestic suppliers as well

2002 © Rába Rt.7

Rába in Transition

• Joining the global automotive industry through strategic co-operations

• Focusing on the core businesses (axles, components, specialty vehicles) with continuous improvement of productivity and services

• Substantial growth over a five-year period of time through organic growth, major projects and acquisitions

• Disposal of non-core activities

• Selling or utilizing the excess real estate