CEVA Logistics

An Introduction
March 2008

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CEVA Worlds 4th largest integrated logistics firm

COMPANY OVERVIEW GLOBAL FOOTPRINT

CEVA Logistics, the worlds 4th largest global logistics & supply chain
management company operates in the areas of freight forwarding & contract logistics with pro forma revenues of 6.3 billion in 2007 It combines the heritage of two great companies, TNT Logistics and EGL Eagle Global Logistics, which merged in August 2007 to form CEVA

Europe, Middle East, Africa

2007 Revenue: 2,914 mm Revenue Contribution: 46% Employees: 21,600+ # Locations: 500+

Logistics; it is a non-listed company owned by affiliates of Apollo

Management, L.P., one of the leading private equity investors in the world CEVA provides end-to-end design, implementation and operation of logistics solutions in contract logistics, freight forwarding, distribution management and transportation management for large and mediumsized national and multinational companies Its offerings are focused on a diverse range of market sectors including automotive & tires, hi-tech / electronics, industrial, retail & consumer goods, healthcare, oil & gas, publishing etc. CEVA employs more than 54,000 people and their extensive global network comprises of more than 1,000 locations, with 8.6 million square meters of multi-user and dedicated warehousing space in over 100 countries.

The Americas
2007 Revenue: 1,950 mm Revenue Contribution: 31% Employees: 19,300 + # Locations: 350+

Asia Pacific
2007 Revenue: 1,430 mm Revenue Contribution: 23% Employees: 13,100 + # Locations: 150+

COMBINED UNAUDITED PROFORMA RESULTS, 2007 The combined revenue of CEVA Logistics grew at 4.5% in 2007; EBITDA grew at 17% in the same period resulting in a EBITDA margin expansion of 60 bps millions Revenue EBITDA 1 EBITDA %
1

2007 6,295 378 6.0%

2006 6,026 324 5.4%

CEVA is the fourth largest integrated supply chain management company in the world

EBITDA before specific items

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CEVA Global Supply Chain Management Capabilities

CEVA INTEGRATED SERVICE OFFERING

Globalization and increased world trade have lengthened supply chains and made them more complex. CEVA is one of only a few global logistics providers that can manage and control an entire supply chain from materials acquisition to finished goods delivery on a global basis in multiple industry sectors. This service is illustrated in the diagram below.
International Source

CEVAs freight forwarding and contract logistics businesses are

Freight Forwarding

Contract Logistics

complementary to each other helping them offer global supply chain management solutions to

Freight Forwarder

Warehouse

Distribution

their world wide base of over 15,000 customers Further their asset light

Transportation Management
Manufacturing Facility

model makes the business highly scalable, providing greater flexibility to quickly address changes

Local Source

JIT/Staging

Distribution Services
End User

in customer needs

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CEVA Logistics Product & Services Overview

SERVICES OFFERED CEVA: SECTOR EXPERTISE

Services offered by the logistics division across the entire supply chain
Service Representative Activities Material management, Transportation & Warehousing, Vendor Inventory Management Kitting, QC, Milk runs, Sequencing Warehousing (multi-user, dedicated etc), linehauls, home delivery, installation of equipment

CEVA is a market leader in various regions and industry sectors. It is The global market leader in the automotive inbound logistics, and the market leader in auto spare parts in Europe, China and Australia; One of the leading contract logistics providers of FMCG & hi-tech /

Inbound Logistics

electronics in Europe; a significant player in North America & Asia Pacific; It continues to win new contracts in these sectors. Some recent wins include Michelin (Asia), Volkswagen (UK), Ericsson, T-Mobile, Telstra, Xerox

Honeywell, Carlsberg, Danone, LOreal, and shoemaker Crocs

The company has also been winning contracts in its other focus sectors such as Aerospace (Boeing & Rolls Royce), Oil & Gas (Transocean) and Publishing (Italian based Mondadori Group).

Outbound Logistics

and special picking & packing

Spare parts warehousing & distribution, returns Aftermarket Logistics logistics, repairs, reverse logistics and call centers (on a selective basis) Sub-assembly, inventory planning using the latest & most innovative WMS, production line

REVENUE BREAKUP BY CUSTOMER SEGMENT (%), 2006

Manufacturing Logistics

3% 3% 2% 2% 11%

Automotive High Tech 28%

replenishment and packing / repackaging

Total management of customer supply chain by

Consumer & Retail

Media & Telecom

6 billion
14%

Govt. Tires Industrial 23%

Lead Logistics Provider

providing logistics services to the entire supply

chain and acting as the single point of contact for the customer for all supply chain activities
14%

Oil & Gas Pharma

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CEVA Logistics World leader in the automotive sector

CEVA AUTOMOTIVE SOLUTIONS

CEVA is the recognized world leader in servicing the logistics needs of all major automotive original equipment manufacturers and suppliers. It derives 30% of its revenue from the automotive sector and offers a 6 fold suite of products and solutions to its customers

Material Planning & LLP Solutions

Disruption Management Inventory Planning &

Inbound Transportation Solutions

Cross dock Solutions Customs Clearance &

Manufacturing Support Solutions

Container Control & Distribution Management

Finished Vehicles Solutions

Distribution to dealer network

Aftermarket Warehousing Solutions

Inventory Management Material Inspection &

Aftermarket Transportation Solutions

Container Management Customer Helpdesk &

Management
Network Planning & Optimization Supplier Management Supply Chain Event Management Transportation Planning & Management

Brokerage
Dedicated Transport Solutions Intercontinental Transport Solutions Milk Run Transportation Local parts collection Shared Distribution Networks Trailer & Container Yard Management

Kitting & Sub-Assembly

Large Lot Warehousing Production Line Feeding Sequencing Shuttles Small Lot Warehousing

Fully enclosed
transporters EXIM customs brokerage & export compliance Special vehicle transportation Storage Centre Operations Transport from port to Storage Centres Value Added Services

Quality Control
Picking & Packing Re-Packing & Packaging Reverse Logistics Supplier Management Warranty Parts Screening

Call Centres
Customized Deliveries: Dedicated-user distribution Full supply chain visibility via tracking & tracing Reverse Logistics Shared-user distribution

CEVAs comprehensive suite of services across the entire auto value chain makes it the recognized global leader in the automotive 3PL space

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CEVA Automotive Customer Base

CEVAs automotive customer list includes the whos who of the global auto original equipment manufacturers and auto component suppliers

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CEVA Automotive Case Studies 1/2

AUTO ALLIANCE THAILAND (AAT)
Operations Joint operating partnership with Mitsui OSK Lines operating on a 4500 m 2 facility Option fitting, pre delivery installation, customization of selected models , wheel & tire mounting operations Customization is taken as an offline process located within the AAT Plant CEVAs production processes include the fitting of AC, headrest, side steps, alloys, stereo systems etc. CEVAs dedicated mgmt team ensures that production quality matches the requirements stipulated by AAT Quality control to QS 9000 standards Benefits 15% reduction operating costs, Reduction in vehicle turnaround time from a planned 48 hours to less than 24 hours Integration of multi-tasking between yard operators and production staff to optimize the flexibility in operations Utilization of the Vehicle Management System that is integrated with AAT system to provide parts visibility and ordering

AAT HINO (SEQUENCING) & HINO (INBOUND MILK RUN)

AAT Hino Sequencing CEVA worked with AAT Hino Thailand on a sequencing operation of parts sourced from Hino to be used in the AAT Production Line It helped AAT reduce handling &preparation time, space requirement and inventory requirement at the AAT Plant Hino Milk Run CEVA worked with Hino Thailand on a dedicated inbound milk-run operation, collecting from 5 Hino suppliers to Hino Plant The operation decreased logistics costs for Hino, increased delivery visibility and reduced space required for storage in the plant
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CEVA Automotive Case Studies 2/2

GM HOLDEN, AUSTRALIA
CEVA has been working with GM Holden for over a decade and offering a host of supply chain solutions Some of them are inbound transport, outbound transport, warehousing, reverse logistics, packaging, material handling units etc CEVA has assisted Holden in improving its operations in each of the identified areas Warehousing Improved order response time to dealers for panels, fascias and hard components of assembled vehicle from 6 days to 3 days Material Handling Units Helped Holden improve transport utilization of vehicles by 13% and reduce panel damage by 7% Packaging Assisted Holden to achieve cost savings in packaging (50% savings) as well as reduction in product damage (~ USD 200,000) Outbound Transport Achieved & delivered a consistent high level of service for deliveries out of the largest auto W/H in the Southern Hemisphere An elaborate illustration of CEVAs value add is as below

ILLUSTRATION: INBOUND TRANSPORT

Challenge All suppliers provided their goods on a Free Into Store (FIS) arrangement, there was no visibility of goods until they arrived at the warehouse for receiving. This resulted in late and unscheduled deliveries. Solution Through the utilisation of the return legs of the outbound delivery service CEVA Logistics created a series of milk runs to conduct pick ups from suppliers and delivered either direct to the central Holden warehouse or via the CEVA consolidation centre for overnight delivery. Results A dramatic reduction in supplier lead time that resulted in better visibility of inbound deliveries (15 minute timeslots) & an improvement in order availability with clear knowledge of stock availability & lead time extensions

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CEVA in China & India

EXISTING PRESENCE IN CHINA INDIA ENTRY STRATEGY

In 2002, CEVA entered into a JV contract with Shanghai Automotive Industry Corporation Group (SAIC) for automotive logistics in China Anji-TNT Automotive Logistics Co., Ltd. is the first automotive logistics joint venture established in China with a total registered capital of USD30 million. CEVA and SAIC own an equal 50% in the joint venture The joint venture, one of the largest foreign investments to date in China's logistics service, is expected to produce an annual turnover of 100 million with over 600 employees Shanghai Automotive Industry Sales Company Ltd (SAISC) is a leading automotive service enterprise in China with its business scope covering car rental and leasing, automotive trade, car club etc. The Anji Automotive Logistics Co., Ltd., wholly held by SAISC, is the nationwide market leader in the logistics field, and owns 6 dedicated transportation companies and 25 distribution centers with storage space of 800,000 and transportation capacity of over 500,000 cars per year The clientele of the JV includes: FIAT, GM, SVW, Toyota, Ford, WABCO, Daimler Chrysler, Chevrolet, Renault, and Subaru amongst others

CEVA currently has a small presence in India; however, recognizing the

opportunity for logistics in the country, CEVA is keen on establishing its Indian contract logistics operations in a substantive manner Organized logistics, and 3PL in particular, is still at a nascent stage in India, making it the right time for CEVA to establish its contract logistics

operations here.
A senior delegation of CEVA is visiting India to evaluate various strategic options and formalize its entry strategy; key visiting team members are Howard Critchley: Managing Director, CEVA Logistics (Asia) Menno Groeneweg: Commercial Director, CEVA Logistics (HO)

Kevin Burrell: BD Director, CEVA Logistics (South & SE Asia)

Soman Nambiar: Regional MD, CEVA Logistics (South Asia) Vikash Agarwal: Business Controller, CEVA Logistics (Asia Pacific) Jag Rai: Operations Director, CEVA Contract Logistics (China) Mintoo Bhandari: Partner, Apollo Management International LLP All the CEVA team members have worked with the company across regions and roles over many years and have rich experience in various areas of contract logistics

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Contact Details

Gaurav Deepak Managing Director Email: gaurav.deepak@avendus.com Mobile: +91 98210 47459

Aashish Bhinde Executive Director Email: aashish.bhinde@avendus.com Mobile: +91 98200 45814

Subhashree Vijayaraghavan Associate Vice President Email: subhashree.vijayaraghavan@avendus.com Mobile: +91 98675 77834

Priyam Bansal Analyst Email: priyam.bansal@avendus.com Mobile: +91 98670 30992

Avendus Capital Pvt. Ltd. IL& FS Financial Centre, B Quadrant, 5th Floor Bandra Kurla Complex, Bandra (E), Mumbai, India 400051 Phone: +91-22-6648 0050, Fax: +91-22-6648 0040

Website: www.avendus.com

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