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									Manganese Bronze Holdings PLC
                    Interim Results
      for the six months ended 31 January 2004
Management Team from January 2003


          Tim Melville-Ross Chairman




                       Ian Pickering Chief Executive




                              Mark Fryer Finance Director
 Achievements Jan – July 2003
• Sale of loss making Components Division
• Sale and leaseback of Coventry site
• Initial successful outcome of Conditions of
  Fitness Review
• Surrender of lease for £1m
• Settlement with Brilliance
• Launch of Zingo
• Defended takeover attempt at 80p a share
• Repayment of medium term loan
• Declared dividends of 27p per share
Achievements Aug 2003 to date
• Mexico / Latin America License and Distribution
  agreements signed
• USA drives sales higher by 20%
• China LOI signed
• London office closed
• Sale of site of M&O London generating c£5m profit
• Purchase of Brewery Road site
• Transfer of SERPS related pension liability back to
  government with £1.5m reduction in pension deficit
• Share placing @ £1.475p raising £1.3m
Why We Need to Change
  Product    Market
       What is Our Strategy ?
• Exploit taxi icon globally through local
  manufacturing operations (JV or license)

• Grow Zingo to profit in London and
  license/franchise in other major cities

• Develop new products / services in niches – low/
  zero emission inner-city utility vehicle

• Sell surplus property
                 UK Issues
•   Conditions of Fitness 2nd limited review
•   Euro IV emission limits
•   Product improvements
•   Competitors (Metrocab / Converters)
•   Lower cost vehicles
Product Development
         Taxi- Exploit the Icon
• 1,000 vehicles in 100 cities with population of > 3
  million
• Overseas manufacturing plants and/or CKD
  operations in low cost developing economies
• Significantly reduce the cost of the vehicle
• Maintain margins – increase ROS%
• Income from royalties and share of JV profits
• Product improvements
   – keep design and development
   – control the brand
• Alternative powertrain strategies – hybrid/ low
  emission
                           LTNA
Chicago Area               39
San Francisco              18
Ottawa, Canada             12
Los Angeles, Area          11
Boston Area                10
New York City, Area        10
North and South Carolina    9
Washington DC Area          6
Detroit Area                5
Dallas/Houston              4
Phil/Pittsburgh, PA         4
Florida                     3
Arizona                     2
Canada Misc                 2
Las Vegas                   2
                     LTNA Usage


Use                       Count
Taxi                         75
Livery                       19
Personal                     35
Promotional/Hospitality      14
Total                       143
            LTNA Challenges
•   Engine strategy
•   £/$
•   Follow on sales
•   Lower cost vehicle
Mexico
A VW Beetle taxi rushes by at the Avenida
Francisco Madero. Though the taxis look funny
and cuddly, we strongly recommend to refrain
from using them. If you want to avoid bad
surprises, go for the official tourist taxis
instead!
                 Mexico
• Population 100m – 20m in Mexico City
  14m in Monterey and Guadalajara
• 600,000 taxis - 50,000 replaced every year
• Currently main old VW Beetle – production
  ceases this year and security issue
• Available manufacturing facilities –
  established automotive industry
• Experienced inexpensive labour force
Mexico Licence & Assembly Agreement

• Exclusivity to Mexico and Latin America if
  key thresholds met (start from year 1)
• Royalty per vehicle
• Term in perpetuity provided thresholds
  met and no breach
• Parts supplied back to UK at cost plus
  handling margin
       Mexico - TransPacific
• An investment banking and capital
  advisory company engaged in various
  ventures.
• In-depth knowledge of Mexico and the
  Mexican taxi market.
• Well connected politically
• Recruiting a strong and experienced
  automotive management team
• Looking to start production in early 2005
China
China
          China Next Steps
• Joint feasibility study
• Apply for license from Chinese
  government
• JV negotiations
• Establish production facility
• Establish sales network
Zingo
                    Zingo
•   Reduce overhead base of £250k by half
•   Integrate with LTIF
•   Co-operate with other London taxi fleets
•   Saloon car development
•   Pre booking and land line capability
•   Roll out in other UK cities
•   Franchise/licence overseas cities
     Inner-City Utility Vehicle
• Prototypes July 2004
• Pre- sell vehicles
• Second development phase through to
  start of production in early 2006
• Seek maximum grant funding
• Seek equity investment
• Minimal MBH investment
        The Vehicle of Choice
• “Twice the speed and twice the distance” of other
  inner-city electric vehicles
• £2,000 per annum saving compared with diesel
• Zero emissions
• 24/7 capability
• Choice of
   – 6 different vehicles types
   – Battery types
   – Electric or hybrid
   – Left or Right Hand Drive
          Surplus Property
• Ipswich - £2.8m – look to at least double
  value over 3 year window with residential
  development with housebuilder – notice
  served on tenant
• Birmingham - £1.0m – currently yields
  12% - tenant repairing – 1 mile from City
  Centre -keep for long term developmental
  opportunity
Share Price
Share Price
                Taxi Sales


4,000

3,000

2,000                                      2nd half
                                           Ist half
1,000

   0
        2000   2001   2002   2003   2004
   Results - Loss before Tax
                     1st Half   1st Half   Full Year
                        2004      2003         2003
                        £000      £000         £000
Vehicles              1,962      1,022       4,454
Zingo                (2,516)    (1,170)     (3,345)
Head Office            (492)    (1,098)     (2,659)
Pension Cost           (725)      (625)     (2,375)
Exceptional Income                 961         956
                     (1,771)      (910)     (2,969)
Components                        (331)     (1,005)
                     (1,771)    (1,241)     (3,974)
Exceptional Costs       (33)                (5,667)
Interest               (160)      (335)       (516)
                     (1,964)    (1,576)    (10,157)
       Results - Cashflow

              1st Half   1st Half   Full Year
                2004       2003        2003
                £000       £000        £000
Operations    (1,313) (2,592)          350
Capex - net   (1,190) (1,286)       (3,407)
Interest        (160)   (335)         (516)
Taxation           0     (40)          (40)
Disposal          75       0        15,068
Dividends     (4,837)   (206)         (231)
              (7,425) (4,459)       11,224
          Results - Gearing

                       31 Jan     31 Jan     31 Jul
                         2004      2003       2003
                         £000      £000       £000
Net Bank               2,000     (4,283)    8,726
Leasing                 (705)      (588)     (361)
Stocking Loan         (6,364)    (8,836)   (6,671)
Total Borrowings      (5,069)   (13,707)    1,694
Shareholders' Funds   22,205    34,689     22,773
Gearing                22.8%     39.5%
               Dividends
     Pence
30
25
20
                                         Special
15
                                         Final
                                         Interim
10
5
0
     2000    2001   2002   2003   2004
     Prospects for Full Year

• Improvement in taxi sales started – need
 realignment of £:$ and stability in London

• Zingo losses to be reduced

• Head Office cost reduction
    Achievements to Come in 2nd half
•   Zingo cost reduction
•   Roll out Zingo to other UK cities
•   Zingo overseas franchise agreement
•   Saloon car Zingo
•   Inner-city utility vehicle prototypes complete
•   Another CKD/distribution agreement
•   Chinese feasibility study submitted
•   Agreement for sale of Ipswich
Manganese Bronze Holdings PLC
                    Interim Results
      for the six months ended 31 January 2004

								
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