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CENTROAVTO PROJECT
Copyright CENTROAVTO 2010
INVESTOR PRESENTATION
FALL 2010
INDUSTRIES AUTOMOTIVE AFTERMARKETCOMMERCIAL REAL ESTATERETAIL CHAINS
INVESTMENT $3-45M
THE PITCH
Copyright CENTROAVTO 2010
A Car owners 1) grow in number and less DIY 2) Are not satisfied by quality-cost of service and queues
B Independent service shops 1) lack sufficient stock 2) Do not use modern business technologies 3) Do not provide full warranty
C Dealer service shops loose clients in 2-3 years of car life
D Partrsquos stores 1) Have ineffective inventory 2) Low customer demand satisfaction 3) No warranty
MARKET SHOWS THE EVIDENT GAP BETWEEN DEMAND AND OFFER
Solution is in a chain of Automotive Retail Trade-Service Centers that allows 1) Synergy of partrsquos trade and car service 2) Logistic synergy 3) Full customersatisfaction 4) Chain value amp synergy
WHO PITCHES
Joint Stock Company ldquoCENTROAVTOrdquo
Afanasyev AlexanderThis is a start-up project in RussianCIS Automotive
Aftermarket Industry a $50-$70B segment
Tel +7(495)7247158
centroavtogmailcom
wwwcentroavtoruCopyright CENTROAVTO 2010
Photo Name Responsibility ExperienceEducation
AKIMOV ALEXEYCAOAccounting
1 Totalgt10 years in parts store accounting2 Total gt15 years in accounting3 Moscow Physics Engineering Institute 1989 MS4 Ministry of Finance certificate 098795 CPA
AFANASIEV BORIS CMOMarketing mix ROS Revenue PampL
1 Total gt10 years experience in VP sales 2 gt$200 M revenue responsibility3 Moscow Electro Technical Institute 1995 MT4 The Academy of National Economy 2002 MBA
AFANASYEV ALEXANDERCEO PampL Assets ROC ROI Legal RampD
1 Total gt15 years of PampL experience (Retail AA etc)2 Totalgt20 years in Projects up to $200M (start ups)3 Moscow Physics Engineering Institute 1988 MS4 Academy of Foreign Trade 1995 MBA5 World Bank Institute 2008
BUROV NIKOLAY CBDOStrategy Development Revenue Technology PampL
1 Total gt10 years of VP in Business Development2 Total gt 15 years in projects up to $500M3 Tashkent Institute of communication 1992 MSIS4 The Academy of National Economy 2011 EMBA
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in specific areas of project tasks
Photo Name Responsibility ExperienceEducation
DADONOV DMITRYCFOFinancial structures Budgets Treasury PampL
1 Totalgt15 years of Financials 2 Up to $1 B in turnover3 Moscow Physics Engineering Institute 1988 MS4 Academy of Foreign Trade 1994 MBA
IVANOV ILYAСТОProcesses Quality Service RampD PampL
1 Total gt 5 years of GM experience in automotive2 Total gt 15 years of Automotive Projects up to $100M3 Moscow State Technical University 1994 MEng4 National State Levy Academy 2004 MST
SMYSLOV MAXIMCLOLand Legal Docflow Standards
1 Total gt 10 years in Trade Centers Development 2 Total gt 15 years of Corporate Law3 MGIMO 1988 ML MIA
SHEHOVTSEV GERMANCOOOrganization Workflow HR Standards Quality PampL
1 Total gt 15 years GM experience (incl Start ups)2 Total gt 10 years of PampL responsibility up to $400M3 Kemerovo State University 1994 MBA
VERSHININA IRINACorp Sec Corporate Governance Procedures
1 Total gt 20 years in PR gt 10 years in GR2 Total gt 5 years in Corporate Governance3 Moscow State Linguistic Institute 1979 MA4 World Bank Institute 2008
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in specific areas of project tasks
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in Total Years of Field Experience
MARKET GENERAL
Market Size - $50-70B (Autostat GiPA) in 2010
Market Position ndash Market Challenger ndash Seeks to adopt technology to challenge market in the new way
Market Objectives ndash National (Russia CIS) Growth Market Share (10) Shareholder value
Market Segments ndash Multi Segment ndash appealing in region and by income level lifestyle social class
Market Structure ndash Monopolistic Competition ndash Pricing Product mix Branding and Penetration strategies
Why this project
Copyright CENTROAVTO 2010
MARKET GAP Why this project
CUSTOMER DISSATISFIED ndash Main reasons that made customers to change the service shop in the past two years
Copyright CENTROAVTO Field study 2010
Project targets are circled in red
MARKET GROWTH
THE TRENDndash as the wave of cars sold 2007-2008 quits official dealer service shops they become clients of the Aftermarket service
Why this project
Copyright CENTROAVTO Autostat amp AEB GiPA 2010
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
THE PITCH
Copyright CENTROAVTO 2010
A Car owners 1) grow in number and less DIY 2) Are not satisfied by quality-cost of service and queues
B Independent service shops 1) lack sufficient stock 2) Do not use modern business technologies 3) Do not provide full warranty
C Dealer service shops loose clients in 2-3 years of car life
D Partrsquos stores 1) Have ineffective inventory 2) Low customer demand satisfaction 3) No warranty
MARKET SHOWS THE EVIDENT GAP BETWEEN DEMAND AND OFFER
Solution is in a chain of Automotive Retail Trade-Service Centers that allows 1) Synergy of partrsquos trade and car service 2) Logistic synergy 3) Full customersatisfaction 4) Chain value amp synergy
WHO PITCHES
Joint Stock Company ldquoCENTROAVTOrdquo
Afanasyev AlexanderThis is a start-up project in RussianCIS Automotive
Aftermarket Industry a $50-$70B segment
Tel +7(495)7247158
centroavtogmailcom
wwwcentroavtoruCopyright CENTROAVTO 2010
Photo Name Responsibility ExperienceEducation
AKIMOV ALEXEYCAOAccounting
1 Totalgt10 years in parts store accounting2 Total gt15 years in accounting3 Moscow Physics Engineering Institute 1989 MS4 Ministry of Finance certificate 098795 CPA
AFANASIEV BORIS CMOMarketing mix ROS Revenue PampL
1 Total gt10 years experience in VP sales 2 gt$200 M revenue responsibility3 Moscow Electro Technical Institute 1995 MT4 The Academy of National Economy 2002 MBA
AFANASYEV ALEXANDERCEO PampL Assets ROC ROI Legal RampD
1 Total gt15 years of PampL experience (Retail AA etc)2 Totalgt20 years in Projects up to $200M (start ups)3 Moscow Physics Engineering Institute 1988 MS4 Academy of Foreign Trade 1995 MBA5 World Bank Institute 2008
BUROV NIKOLAY CBDOStrategy Development Revenue Technology PampL
1 Total gt10 years of VP in Business Development2 Total gt 15 years in projects up to $500M3 Tashkent Institute of communication 1992 MSIS4 The Academy of National Economy 2011 EMBA
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in specific areas of project tasks
Photo Name Responsibility ExperienceEducation
DADONOV DMITRYCFOFinancial structures Budgets Treasury PampL
1 Totalgt15 years of Financials 2 Up to $1 B in turnover3 Moscow Physics Engineering Institute 1988 MS4 Academy of Foreign Trade 1994 MBA
IVANOV ILYAСТОProcesses Quality Service RampD PampL
1 Total gt 5 years of GM experience in automotive2 Total gt 15 years of Automotive Projects up to $100M3 Moscow State Technical University 1994 MEng4 National State Levy Academy 2004 MST
SMYSLOV MAXIMCLOLand Legal Docflow Standards
1 Total gt 10 years in Trade Centers Development 2 Total gt 15 years of Corporate Law3 MGIMO 1988 ML MIA
SHEHOVTSEV GERMANCOOOrganization Workflow HR Standards Quality PampL
1 Total gt 15 years GM experience (incl Start ups)2 Total gt 10 years of PampL responsibility up to $400M3 Kemerovo State University 1994 MBA
VERSHININA IRINACorp Sec Corporate Governance Procedures
1 Total gt 20 years in PR gt 10 years in GR2 Total gt 5 years in Corporate Governance3 Moscow State Linguistic Institute 1979 MA4 World Bank Institute 2008
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in specific areas of project tasks
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in Total Years of Field Experience
MARKET GENERAL
Market Size - $50-70B (Autostat GiPA) in 2010
Market Position ndash Market Challenger ndash Seeks to adopt technology to challenge market in the new way
Market Objectives ndash National (Russia CIS) Growth Market Share (10) Shareholder value
Market Segments ndash Multi Segment ndash appealing in region and by income level lifestyle social class
Market Structure ndash Monopolistic Competition ndash Pricing Product mix Branding and Penetration strategies
Why this project
Copyright CENTROAVTO 2010
MARKET GAP Why this project
CUSTOMER DISSATISFIED ndash Main reasons that made customers to change the service shop in the past two years
Copyright CENTROAVTO Field study 2010
Project targets are circled in red
MARKET GROWTH
THE TRENDndash as the wave of cars sold 2007-2008 quits official dealer service shops they become clients of the Aftermarket service
Why this project
Copyright CENTROAVTO Autostat amp AEB GiPA 2010
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
WHO PITCHES
Joint Stock Company ldquoCENTROAVTOrdquo
Afanasyev AlexanderThis is a start-up project in RussianCIS Automotive
Aftermarket Industry a $50-$70B segment
Tel +7(495)7247158
centroavtogmailcom
wwwcentroavtoruCopyright CENTROAVTO 2010
Photo Name Responsibility ExperienceEducation
AKIMOV ALEXEYCAOAccounting
1 Totalgt10 years in parts store accounting2 Total gt15 years in accounting3 Moscow Physics Engineering Institute 1989 MS4 Ministry of Finance certificate 098795 CPA
AFANASIEV BORIS CMOMarketing mix ROS Revenue PampL
1 Total gt10 years experience in VP sales 2 gt$200 M revenue responsibility3 Moscow Electro Technical Institute 1995 MT4 The Academy of National Economy 2002 MBA
AFANASYEV ALEXANDERCEO PampL Assets ROC ROI Legal RampD
1 Total gt15 years of PampL experience (Retail AA etc)2 Totalgt20 years in Projects up to $200M (start ups)3 Moscow Physics Engineering Institute 1988 MS4 Academy of Foreign Trade 1995 MBA5 World Bank Institute 2008
BUROV NIKOLAY CBDOStrategy Development Revenue Technology PampL
1 Total gt10 years of VP in Business Development2 Total gt 15 years in projects up to $500M3 Tashkent Institute of communication 1992 MSIS4 The Academy of National Economy 2011 EMBA
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in specific areas of project tasks
Photo Name Responsibility ExperienceEducation
DADONOV DMITRYCFOFinancial structures Budgets Treasury PampL
1 Totalgt15 years of Financials 2 Up to $1 B in turnover3 Moscow Physics Engineering Institute 1988 MS4 Academy of Foreign Trade 1994 MBA
IVANOV ILYAСТОProcesses Quality Service RampD PampL
1 Total gt 5 years of GM experience in automotive2 Total gt 15 years of Automotive Projects up to $100M3 Moscow State Technical University 1994 MEng4 National State Levy Academy 2004 MST
SMYSLOV MAXIMCLOLand Legal Docflow Standards
1 Total gt 10 years in Trade Centers Development 2 Total gt 15 years of Corporate Law3 MGIMO 1988 ML MIA
SHEHOVTSEV GERMANCOOOrganization Workflow HR Standards Quality PampL
1 Total gt 15 years GM experience (incl Start ups)2 Total gt 10 years of PampL responsibility up to $400M3 Kemerovo State University 1994 MBA
VERSHININA IRINACorp Sec Corporate Governance Procedures
1 Total gt 20 years in PR gt 10 years in GR2 Total gt 5 years in Corporate Governance3 Moscow State Linguistic Institute 1979 MA4 World Bank Institute 2008
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in specific areas of project tasks
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in Total Years of Field Experience
MARKET GENERAL
Market Size - $50-70B (Autostat GiPA) in 2010
Market Position ndash Market Challenger ndash Seeks to adopt technology to challenge market in the new way
Market Objectives ndash National (Russia CIS) Growth Market Share (10) Shareholder value
Market Segments ndash Multi Segment ndash appealing in region and by income level lifestyle social class
Market Structure ndash Monopolistic Competition ndash Pricing Product mix Branding and Penetration strategies
Why this project
Copyright CENTROAVTO 2010
MARKET GAP Why this project
CUSTOMER DISSATISFIED ndash Main reasons that made customers to change the service shop in the past two years
Copyright CENTROAVTO Field study 2010
Project targets are circled in red
MARKET GROWTH
THE TRENDndash as the wave of cars sold 2007-2008 quits official dealer service shops they become clients of the Aftermarket service
Why this project
Copyright CENTROAVTO Autostat amp AEB GiPA 2010
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Photo Name Responsibility ExperienceEducation
AKIMOV ALEXEYCAOAccounting
1 Totalgt10 years in parts store accounting2 Total gt15 years in accounting3 Moscow Physics Engineering Institute 1989 MS4 Ministry of Finance certificate 098795 CPA
AFANASIEV BORIS CMOMarketing mix ROS Revenue PampL
1 Total gt10 years experience in VP sales 2 gt$200 M revenue responsibility3 Moscow Electro Technical Institute 1995 MT4 The Academy of National Economy 2002 MBA
AFANASYEV ALEXANDERCEO PampL Assets ROC ROI Legal RampD
1 Total gt15 years of PampL experience (Retail AA etc)2 Totalgt20 years in Projects up to $200M (start ups)3 Moscow Physics Engineering Institute 1988 MS4 Academy of Foreign Trade 1995 MBA5 World Bank Institute 2008
BUROV NIKOLAY CBDOStrategy Development Revenue Technology PampL
1 Total gt10 years of VP in Business Development2 Total gt 15 years in projects up to $500M3 Tashkent Institute of communication 1992 MSIS4 The Academy of National Economy 2011 EMBA
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in specific areas of project tasks
Photo Name Responsibility ExperienceEducation
DADONOV DMITRYCFOFinancial structures Budgets Treasury PampL
1 Totalgt15 years of Financials 2 Up to $1 B in turnover3 Moscow Physics Engineering Institute 1988 MS4 Academy of Foreign Trade 1994 MBA
IVANOV ILYAСТОProcesses Quality Service RampD PampL
1 Total gt 5 years of GM experience in automotive2 Total gt 15 years of Automotive Projects up to $100M3 Moscow State Technical University 1994 MEng4 National State Levy Academy 2004 MST
SMYSLOV MAXIMCLOLand Legal Docflow Standards
1 Total gt 10 years in Trade Centers Development 2 Total gt 15 years of Corporate Law3 MGIMO 1988 ML MIA
SHEHOVTSEV GERMANCOOOrganization Workflow HR Standards Quality PampL
1 Total gt 15 years GM experience (incl Start ups)2 Total gt 10 years of PampL responsibility up to $400M3 Kemerovo State University 1994 MBA
VERSHININA IRINACorp Sec Corporate Governance Procedures
1 Total gt 20 years in PR gt 10 years in GR2 Total gt 5 years in Corporate Governance3 Moscow State Linguistic Institute 1979 MA4 World Bank Institute 2008
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in specific areas of project tasks
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in Total Years of Field Experience
MARKET GENERAL
Market Size - $50-70B (Autostat GiPA) in 2010
Market Position ndash Market Challenger ndash Seeks to adopt technology to challenge market in the new way
Market Objectives ndash National (Russia CIS) Growth Market Share (10) Shareholder value
Market Segments ndash Multi Segment ndash appealing in region and by income level lifestyle social class
Market Structure ndash Monopolistic Competition ndash Pricing Product mix Branding and Penetration strategies
Why this project
Copyright CENTROAVTO 2010
MARKET GAP Why this project
CUSTOMER DISSATISFIED ndash Main reasons that made customers to change the service shop in the past two years
Copyright CENTROAVTO Field study 2010
Project targets are circled in red
MARKET GROWTH
THE TRENDndash as the wave of cars sold 2007-2008 quits official dealer service shops they become clients of the Aftermarket service
Why this project
Copyright CENTROAVTO Autostat amp AEB GiPA 2010
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Photo Name Responsibility ExperienceEducation
DADONOV DMITRYCFOFinancial structures Budgets Treasury PampL
1 Totalgt15 years of Financials 2 Up to $1 B in turnover3 Moscow Physics Engineering Institute 1988 MS4 Academy of Foreign Trade 1994 MBA
IVANOV ILYAСТОProcesses Quality Service RampD PampL
1 Total gt 5 years of GM experience in automotive2 Total gt 15 years of Automotive Projects up to $100M3 Moscow State Technical University 1994 MEng4 National State Levy Academy 2004 MST
SMYSLOV MAXIMCLOLand Legal Docflow Standards
1 Total gt 10 years in Trade Centers Development 2 Total gt 15 years of Corporate Law3 MGIMO 1988 ML MIA
SHEHOVTSEV GERMANCOOOrganization Workflow HR Standards Quality PampL
1 Total gt 15 years GM experience (incl Start ups)2 Total gt 10 years of PampL responsibility up to $400M3 Kemerovo State University 1994 MBA
VERSHININA IRINACorp Sec Corporate Governance Procedures
1 Total gt 20 years in PR gt 10 years in GR2 Total gt 5 years in Corporate Governance3 Moscow State Linguistic Institute 1979 MA4 World Bank Institute 2008
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in specific areas of project tasks
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in Total Years of Field Experience
MARKET GENERAL
Market Size - $50-70B (Autostat GiPA) in 2010
Market Position ndash Market Challenger ndash Seeks to adopt technology to challenge market in the new way
Market Objectives ndash National (Russia CIS) Growth Market Share (10) Shareholder value
Market Segments ndash Multi Segment ndash appealing in region and by income level lifestyle social class
Market Structure ndash Monopolistic Competition ndash Pricing Product mix Branding and Penetration strategies
Why this project
Copyright CENTROAVTO 2010
MARKET GAP Why this project
CUSTOMER DISSATISFIED ndash Main reasons that made customers to change the service shop in the past two years
Copyright CENTROAVTO Field study 2010
Project targets are circled in red
MARKET GROWTH
THE TRENDndash as the wave of cars sold 2007-2008 quits official dealer service shops they become clients of the Aftermarket service
Why this project
Copyright CENTROAVTO Autostat amp AEB GiPA 2010
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Why us
Copyright CENTROAVTO 2010
THE TEAMTEAM Competence in Total Years of Field Experience
MARKET GENERAL
Market Size - $50-70B (Autostat GiPA) in 2010
Market Position ndash Market Challenger ndash Seeks to adopt technology to challenge market in the new way
Market Objectives ndash National (Russia CIS) Growth Market Share (10) Shareholder value
Market Segments ndash Multi Segment ndash appealing in region and by income level lifestyle social class
Market Structure ndash Monopolistic Competition ndash Pricing Product mix Branding and Penetration strategies
Why this project
Copyright CENTROAVTO 2010
MARKET GAP Why this project
CUSTOMER DISSATISFIED ndash Main reasons that made customers to change the service shop in the past two years
Copyright CENTROAVTO Field study 2010
Project targets are circled in red
MARKET GROWTH
THE TRENDndash as the wave of cars sold 2007-2008 quits official dealer service shops they become clients of the Aftermarket service
Why this project
Copyright CENTROAVTO Autostat amp AEB GiPA 2010
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
MARKET GENERAL
Market Size - $50-70B (Autostat GiPA) in 2010
Market Position ndash Market Challenger ndash Seeks to adopt technology to challenge market in the new way
Market Objectives ndash National (Russia CIS) Growth Market Share (10) Shareholder value
Market Segments ndash Multi Segment ndash appealing in region and by income level lifestyle social class
Market Structure ndash Monopolistic Competition ndash Pricing Product mix Branding and Penetration strategies
Why this project
Copyright CENTROAVTO 2010
MARKET GAP Why this project
CUSTOMER DISSATISFIED ndash Main reasons that made customers to change the service shop in the past two years
Copyright CENTROAVTO Field study 2010
Project targets are circled in red
MARKET GROWTH
THE TRENDndash as the wave of cars sold 2007-2008 quits official dealer service shops they become clients of the Aftermarket service
Why this project
Copyright CENTROAVTO Autostat amp AEB GiPA 2010
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
MARKET GAP Why this project
CUSTOMER DISSATISFIED ndash Main reasons that made customers to change the service shop in the past two years
Copyright CENTROAVTO Field study 2010
Project targets are circled in red
MARKET GROWTH
THE TRENDndash as the wave of cars sold 2007-2008 quits official dealer service shops they become clients of the Aftermarket service
Why this project
Copyright CENTROAVTO Autostat amp AEB GiPA 2010
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
MARKET GROWTH
THE TRENDndash as the wave of cars sold 2007-2008 quits official dealer service shops they become clients of the Aftermarket service
Why this project
Copyright CENTROAVTO Autostat amp AEB GiPA 2010
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
MARKET SOLUTION Why this project
CUSTOMER DEMAND ndash Why customer picks the service shop
Copyright CENTROAVTO GiPA 2009 2010
Project addresses all demand factors with two corrections 1) Near Home is covered by Retail Outlet Positioning (crossroads first line) 2) Low Cost transfers to Quality-Cost best ratio (parts consumables and work)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Why this project
Copyright CENTROAVTO Field Study 2010
CUSTOMER DEMAND 1 ndash major customer needs in service shops
MARKET SOLUTION
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Why this projectCUSTOMER DEMAND 3 ndash Auto owners voting 0 to 5 to pick what they expect to get in Moscow Area automotive repair shops
Professionalism of service personnel 48Spare parts and service in one place 47Work warranty 47Large parts shop + service with many lotshoistsbays 45Price and cost estimate 44Service and sales consultations 44Tidy premise 41Cafeacute and waiting place with Internet access 41
Copyright CENTROAVTO Field study 2010
MARKET SOLUTION
Project targets at all of those factors by a set of various means
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
PARTS SERVICEAutomotive Goods ModifiedCertified Car Warranty
Tires amp wheels Inspections and oil service Lubricants amp oils Maintenance and installation general
Batteries amp chargers 12V goods Wheels amp tires worksSuspension parts Mechanics and suspension worksElectrical goods Break system maintenance
Autotainment goods Electrical systems checks amp installationElectronic goods and parts Electronic systems checks and maintenance
Air Intake fuel amp exhaust systemrsquos parts Exhaust System worksExterior amp Interior Accessories and tuning goods Seasonal checks and maintenance
Car top and under car goods Passenger Safety amp Comfort maintenanceBody and windshield parts Car multimedia installation and maintenance
Car accessories and car care goods Exterior and Interior TuningTools and materials for car repair and maintenance Bodywindshield work (limited)
Books magazines journals manuals Tire hotelAny cycle parts accessories and related goods Partner programs for specific works
Camping fishing hunting and travel goods Auxiliary assortment
Supporting businesses and productsDriver Courses Educational services Talldelivery services Vehicle expertise
PRODUCT Why this project
Copyright CENTROAVTO 2010
PRODUCT MIX ndash A business technology was created to make the most of synergy from sales and service combination in a mix consisting of
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
PRODUCT Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash Based on local regulations and merging business technologies a draft was created for Auto Retail Trade-Service Center
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
PRODUCT The difference
Copyright CENTROAVTO 2010
Compare byPoint of view
Other service and parts shops CENTROAVTO ARTSCVISION
OwnershipMostly rented occasionally owned some franchise Self controlled and self owned (franchise possible latter)
PlaceOff road existing service shop refurbishment (mostly) Outlets do not have territory planning (parking lots etc)
First line crossroad location and new construction (rare refurbishment of old) of premises
Product mix
Service shops All works differentiate by makes and models parts on stock ndash consumables only Parts stores no service works parts mostly for local makes No convergence Existence of service shopparts store next door is considered a plus Exclusion ndash tire chains (not many)
Full Convergence of all works and products to complete minor repairs maintenance and installation (market driven) makemodel dependence only on trade zone statistics Some DIY bay area (limited to 2-3 outdoor bays) No limits in accessories and car care parts limited to service works list (ROI promoted)
Law Evasion of taxes and violation of regulations Strong perception of state regulations and transparent
Owner goalsSelf sustaining no clear set of strategic goals (mostly) Capitalization and sustainable developmentINTERNAL FACTORS
PersonnelVery little effort use of personnel that is available Sufficient training and experience exchange from business technology to in depth technical skills Keep the skills in
EquipmentNo policy ndash the cheaper the better mostly used and expensive to own
Promoted by ROI an cost of ownership
Price policyIndividual to every service shop no price-quality perception Middle and up prices
Uniform across the region Federal promo programs Strong quality incentive Lower middle and down prices
WarrantyLimited works 3-6 months parts ndash no warranty Warranty programs (supported across the country)EXTERNAL FACTORS
VolatilityUncertain (due to uncertain options of the shop owner) Absent (due to capital structure and vertical integrity)Market No perception due to low market offer Strong CRM oriented as dealer storesDesignMostly none mostly gloomy and hostile appearance Psychologically approved coloring light and tidy
Local supportBound to owner GR contacts and PR visionsStrong implicit GR and PR supported trough all levels of authority and stakeholders
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
PRODUCT SWOT Why this project
Copyright CENTROAVTO 2010
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
PROJECTIONS Why this project
StageTerm in
yearsWhere and what Amount(euro)
Capitalized (euro)
1 2
First Cluster south Moscow Area 4 TSC + 1 DH
23 000 000 80 580 000
Land in regions with GRP gt 150 B rubbles for 6 years of development
11 540 000 18 600 000
2 6
All Moscow Area 13 TSC + 2 DH 69 240 000 255 300 000
S Petersburg and Area 10 TSC +2 DH
50 000 000 190 300 000
3 10All regions with GRP from 150 B to2000 B rubbles ~107 TSC
454 650 000 1 700 250 000
4 12All regions with GRP lt 150 B rubbles ~ 94 АРТСК
340 000 000 1 460 400 000
Total euro095B (reinvestment due)Copyright CENTROAVTO 2010
VISION ndash We propose to develop in a cluster way pilot + 3 ARTSC + Hub starting in the south Moscow Area then All-Russia Investment Plan
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
PROJECTIONS Why this project
Parameter PILOT FIRST CLUSTERAmount of Investment $2 850 000 $17 200 000
ROI 50 44IRR 34 25NPV $2 770 038 $10 211 559
Discounted Payback Period
425 525Year stock turnover 33 Более 13
DOL 148 168Copyright CENTROAVTO 2010
FINACIALS - Main investment parameters for pilot and cluster assumed for the current car market development perspectives
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Why this project
Copyright CENTROAVTO 2010
OFFERWhat Total
1 year 2 year 3 yearI q II q III q IV q I q II q III q IV q I q II q III q IV q
Tangible and Intangible Assets without Goodwill Land 19 1 1 1 1 2 1 1 3 2 1 2
ARTSC S 7 1 1 ARTSC SR 1 1
ARTSC M 9 1 1 1 1 1Total ARTSC 17 1 1 1 1 2 1 1DH 3 1 Speed of cash burning (million $)
Land ARTSC S 24 05 15 1 05 15 1 05 15 1 05 2 3ARTSC M 72 1 5 3 5 3 6 8 8 8 7
DH 24 1 2 5 1 2 5Total Volume 120 05 15 2 55 45 7 55 125 9 95 12 15
EBIT 484 007 009 015 019 026 02 031 02 031 885 015 019 03 038 062 041 062 407 007 009 015 019 02 031 748 015 019 03 028 038
DH238025 064 115 106 167
490425 332 Stage I 007 009 013Speed of cash return 007 009 03 045 08 156 279 258 406
Up to date 171 327 127Balance 95 407 972
Assets 65 145Unditributed
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
OFFER The difference
Copyright CENTROAVTO 2010
We seek investment intocommercial real estate (land and pre-engineered metal building) and in
operating capital of retail chain of Automotive Aftermarket trade and service centers
We expect investor to plan for exit no earlier then 1st Trade and Service Center will be refunded (2 years least)
We also expect investor to bring in whatsoever he sees feasible from owned resources
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
SUMMARYHINTS
RUSSIAN AUTOMOTIVE AFTERMARKET CONSTITUTES MANY DISPERSED PLAYERS EACH CONCENTRATING ON AND WILLING TO SEPARATE FROM THE OTHERMARKET SIZE IS $50-70B WITH GROWTH OF 30-50 BEFORE CRISIS AND WILL PERCEIVE THESE FIGURES SHORTLY AFTER THE REDEMPTION (2010-11)CUSTOMER DEMAND IS NOT MET BY THE MOST OF MARKET PLAYERSMARKET PLAYERS DO NOT PRACTICE CORE COMPETENCE DEVELOPMENTBUSINESSES ARE FREQUENTLY OUT OF LEGAL FIELD
RESULTSCONTEMPORARY BUSINESS TECHNOLOGIES ARE NOT USEDCUSTOMER DEMAND GROWS AND IS NOT ACCOUNTED FOREFFECTIVENESS OF AUTOMOTIVE SERVICE ON THE AFTERMARKET IS VERY LOWLEGAL AUTHORITIES ARE NOT SATISFIED WITH AUTOMOTIVE BUSINESS
ACTIONSTAKE PROVEN AUTOMOTIVE AFTERMARKET BUSINESS TECHNOLOGIES LOCALIZE THEM AND IMPLEMENT IN A NEW FERTILIZED ENVIRONMENTTAKE ADVANTAGE OF TEAM COMPETENCE GOVERNMENTrsquoS SUPPORT AND TECHNOLOGYSTRUCTURE SYNERGY TO GAIN THE MARKET GAP AND CAPITALIZE ON THAT
Copyright CENTROCAPITAL 2010
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Copyright CENTROAVTO 2010
THANK YOU
THANK YOU
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Copyright CENTROAVTO 2010
ANNEXES
(not presented)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
SUCCESS FACTORS
GOVERNMENTrsquoS SUPPORT ndash Simplified way into Russia amp Russian Regions
Why this project
Copyright CENTROAVTO 2010
bull Project mock-up was shown at the
X St Petersburg
International Economic Forum
bull Project took III place in all-Russia competition
Best investment project held by the
Section for International Collaboration of Regions
of Senatorial Club
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
HISTORYPREDECESSORS ndash Proven Technologies to merge and succeed
bull
bull
bull
bull
bull
bull
Why this project
Copyright CENTROAVTO 2010
AUTOBACS
Norauto
MIDAS AUTO
Vergoumllst ЦЕНТ РОАВТ О
BOSCH
Feu Vert
CENROAVTO
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
PROJECT DATA ndash First cluster planning schedule Pilot plan enlarged
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION - Building draft of the second floor
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash EXTERIOR
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
LOCALIZATION Why this project
Copyright CENTROAVTO 2010
CONSTRUCTION ndash INTERIOR
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
EXTERNAL
Fluent and timely investmentIndustry growth at 13-15 rateGovernment supportLaw prevailing over cynicism
MARKET
Growing faster then competitors5 burden overloadFluent and timely supplyAcquiring land at low (state) price
FINANCIALDiscount rate 12Market value in 3 years$1= 13euro = 30 Rubbles
Why this project
Copyright CENTROAVTO 2010
ASSUMPTIONS
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Why this project
Copyright CENTROAVTO 2010
LOCALIZATIONFINACIALS 2 ndash break-even for a single ARTSC
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Hard-cored Growth rate 13Gross Profit
38Capital
cost12
Cash reserve
100 PE 1117
What Total1 year 2 year 3 year 4 year 5 year
I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV qRevenue from Asset
ARTSC SRquarterly 379 487 758 974 1137 1461 1137 1461 1284 1651 1284 1651 1451 1866 1451 1866 1640 2109 1640 2109 $ 36 271 2598 5196 5872 6635 7498
Gross Profit for Asset
ARTSC SRquarterly 144 185 288 370 432 555 432 555 488 628 488 628 552 709 552 709 623 801 623 801 $ 13 783 987 1975 2231 2521 2849
EBIT
ARTSC SRquarterly 79 120 158 241 238 361 238 361 268 408 268 408 303 461 303 461 343 521 343 521 $ 8 356 599 1197 1353 1529 1727
EBIAT for Asset
ARTSC SRquarterly 28 54 55 108 83 162 83 162 94 184 94 184 106 207 106 207 120 234 120 234 $ 3 429 246 491 555 627 709
Discounting Periods yearly 1 2 3 4 5
Non-Operating Assets (Cash reserve amp Land) accrued
ARTSC SRLand Grth 528 54 55 108 879 162 83 162 1431 184 94 184 2048 207 106 207 2739 234 120 234
10 746 1287 1892 2569 3328MV from EBIT
ARTSC SRPV accrued
77 191 336 551 757 1062 1257 1544 1752 2060 2256 2547 2756 3066 3265 3558 3769 4082 4282 4578
asset PVY 7249 14056 18229 23006 27901MV from EBIAT
ARTSC SRPV accrued
27 78 129 226 298 435 503 633 705 844 912 1043 1117 1256 1326 1457 1531 1672 1742 1875
asset PVY 3414 6512 8568 10924 13377
Why this project
Copyright CENTROAVTO 2010
FINANCIALS 1
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Why this project
RAIDERSFederation Council of RussiaDelovaya Rossia3 Level Method
Market Response
Speed (Cluster Development)Organizational StructureTechnology ndash Patents Copyrights
Human Resources
Training amp EducationTeam competitionsPositive Motivation (KPI)
Copyright CENTROAVTO 2010
RISKS
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Copyright CENTROAVTO 2010
Why this projectOFFEREquity shares offer
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Why this project
Copyright CENTROAVTO 2010
OFFER Exit Strategies
IPO
Management LBO
MampA
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Why this project
Copyright CENTROAVTO 2010
OFFER Share Allocation
Entity
Shares
CENTROAVTOProject Team
Federal Council Fund
Investor
Possible options (conditions vary)
OE Team OE Investor
CENTROAVTO 0No less 25+1s
5Up to
70-1s0
Up to 25+1s
Operating Entity (OE)
No less 65 Up to 35 0 0 Up to 15 Up to 35
Project consists of CENTROAVTO Joint Stock Corporation that is a governing company for Operating Entities (OE) named CENTRO-AVTO XXXXXX Limited Liability Companies Any Other Entity in a CENTRO Holding say CENTROINFORM CENTROSTROY or the like are considered as OE in terms of share allocation
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
Why this project
Copyright CENTROAVTO 2010
OFFER Collaterals
Assets created
Secured cash flow
USA Trust structure (optional)
