PROJECT SHANAVAZ

PRELIMINARY VALUATION DISCUSSIONS

MARCH 2019
 MBM
INTERNATIONAL
Transaction Snapshot WORLDWIDE INVESTMENTS

Prospective acquisition worth circa AED 90 mn of a prominent bus service provider in UAE with a fleet of 300+ buses

About the Seller Financial Highlights

(all figures in AED mn) 2018 2017 2016 2015
▪ Shanavaz Bus Rental LLC “Seller” is a full service transportation Company
Revenue 50.1 49.3 56.9 55.1
serving all the seven emirates of UAE
Direct expenses (27) (30) (30) (31)
▪ The company owns more than 340 buses under various licenses
Staff salaries (2.3) (2.2) (2.2) (2)
▪ The company provides following types of services across many industries:
Utilities (0.4) (0.4)
✓ School bus services, School Excursion Trips
✓ Corporate Staff, Hotel Staff, Airport Group Transfer for tour operators Admin expenses (2.2) (2.1) (2.5) (2.2)
✓ On-site Laborers/Worker Transfer Operating profit 17.8 14.8 22 19.5
✓ Bus Rentals for Short Trips
✓ Bus Rental for Long terms Preliminary Valuation
(all figures in AED mn) 2019 2020 2021 2022
Revenue Breakup Fleet of buses Acquisition price 90
342 Projected Operating profit 15 16 17 18
Schools 280
29%
Expected Annual yield 17% 18% 19% 20%
Private Hire Tourism 62 Tentative Exit price 126
52% Capital appreciation 40%
19% PrivateHire Contracts
Owned Outsourced Total
▪ Acquisition price of AED 90 mn, assuming 6x operating cashflow of AED
15 mn in FY19 (Subject to further due diligence & negotiation)
Consistent revenue base of AED 50 mn in last 4 years ▪ Exit price of AED 126 mn, assuming 7x operating cashflow of AED 18 mn
in FY22
1
Strictly Private & Confidential
 MBM
INTERNATIONAL
Next Steps WORLDWIDE INVESTMENTS

Option 1 ▪ Conduct a detailed due diligence and submit a non binding offer in the range of AED 70 – 90 mn
Acquisition of 100% stake ▪ Appoint a bus operator for operations management of the business post acquisition

▪ Identify key players in the bus transport business within UAE and approach for a prospective partnership deal
▪ Acquisition stake target of 30% - 50% resulting in a transaction range of AED 25-45 mn

Key strategic alliances identified

Option 2
Established in 2008, STS is one among the largest school bus providers in
JV/Minority stake UAE that transports 70,000 students to and from school each day
acquisition

KBBO Group is a diversified investment company operating in MENA region

that owns a portfolio of schools in UAE and operates “Velocity School Buses
Transportation”

Strictly Private & Confidential