Construction

2009 Preliminary Business Outlook: Automotive Industry

Prepared by: CMT Research & Consultancy

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Presentation Overview

(1) Overview of Business Environment (2) Notes on Automotive Industry (3) Market Observations

• Insights for Relevant Segments • Generic Psycho-Anthropological Observations

(4) Review of Past Marketing Efforts (KIA) (5) OT/SW

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Business Environment

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Macro Environment

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2007 GDP Growth: 7.3 % 2008 GDP Growth: 4.6 %

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2008 GDP Q3: 4.5 % 2008 GDP Q4: 4.6 %

If the GDP is some indicator of how “friendly” the business environment will be, then 2009 is expected to be a difficult year.

2009 Projected GDP Growth: 2.34 %

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10.0 7.5 5.0

GDP Growth Rate (%)

2.5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

• The Philippine economy has significantly slowed to 4.6% in 2008 from a robust growth of 7.2% in 2007. • Economic growth is likely to slow further to less than 3.0% in 2009.

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Institution Philippines government Asian Development Bank World Bank International Monetary Fund Moody’s Fitch Standard & Poor’s Economist Intelligence Unit UBS AG Standard Chartered Bank Consensus

Growth Rate (%) 3.7-4.7 3.5 3.0 2.25 3.3 2.5 2.2 1.8 1.8 0.7 2.34

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