Egged’s activity in PolandEgged’s activity in Poland The Israel Business conferenceThe Israel Business conference1111thth December 2010 December 2010

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Content

Egged Israel Investment policy in Europe Characteristics of the Polish market Egged’s activity in Poland

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Egged Israel

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The largest operator of public transportation in Israel

Established in 1933

Reputation for reliable and safe service spanning 70 years

Excellent, reliable and long-term relationships with major suppliers (Mercedes, Volvo, MAN, Solaris)

Environmental friendly company

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Egged Israel - ID

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~ 500 million EUR annual revenue

~ 3,500 buses

Carries 1 million passengers per day

Runs ~ 45,000 trips per day

Operates nearly 1,400 lines

Employs 6,200 people

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Egged Israel - Branches

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Egged Israel

Investment policy in Europe Characteristics of the Polish market Egged’s activity in Poland

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Egged operates in Europe via Egged Europe Ltd. (100%), according to the policies specified below:

StrategyMeans

Investment policy in Europe

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Mergers and Acquisitions (M&A) – acquisition of local companies to form a strong basis in new markets and the merger of companies with similar features, in order to realize advantages of magnitude.

Expansion of activities by winning tenders (exclusiveness). Activity focused mainly in the field of public transportation and

complementary services, reflecting the continued growth in Egged's core fields of activity, while benefiting from the Group's knowledge, experience and reputation.

Strategy

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Realization of relative advantages and operational synergy with the Egged Group – knowledge, reputation, experience and operational aspects, including: centralized purchasing, planning of transportation, maintenance, information systems, etc.

Distribution of funding resources for achievement of financial strength.

Examination of target markets while identifying criteria – size of state, international presence and levels of competitiveness, level of transparency and openness (belonging to the European Union), operational level of public transport, existence and use of technology, privatization policies, financial and political strength and stability, distance from Israel and cultural differences

Means

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Egged Israel Investment policy in Europe

Characteristics of the Polish market Egged’s activity in Poland

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Large market (approximately 40 million residents) Financial stability Political stability Advanced financial systems High-quality personnel, with superior work ethics Transparency (rated 49 out of 178 in the world index for

corrupted countries in 2010) Developed and friendly privatization policies

Characteristics of the Polish market

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Egged Israel Investment policy in Europe Characteristics of the Polish market

Egged’s activity in Poland

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Egged operates in Poland via Mobilis: Mobilis is currently active in Warsaw, Bidgosh and Krakow,

mainly by operating municipal lines (based on winning tenders).

The company's headquarters are based in Warsaw and include a plot owned by the company, with facilities and a garage.

Tenders are based on fixed payments to the municipality per kilometer traveled.

The buses use advanced technological systems.

Egged’s activity in Poland

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Mobilis's mechanism of growth is as follows: Participation in tenders – formulating business proposals and

pricing tenders according to Egged policies, fundraising and financing through Mobilis.

Merging with and acquiring companies (M&A).

Egged’s activity in Poland

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Holding structure

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Egged Europe /

holdings

MobilisPoland

(100%)

Egged Bulgaria/

BG*(100%)

PKS MragowoPoland

)51%(

PKS Ciechanow

Poland)85%(

PKS MinskPoland

)85%(

PKS MlawaPoland

)85%(

PKS Ostroleka

Poland)85%(

PKS Plock

Poland)85%(

PKS Pszasnysz

Poland)85%(

Egged RousseBulgaria

)65%(

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Development

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No. of buses

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Thank you for listening

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