Roland Berger

Strategy Consultants

Roland Berger Strategy Consultants GmbH

Postfact 22 11 63, 80501 München, Germany

Mr. Tariq Bakhsh

Amsterdam
NICDP Ministry of Commerce &
-
Bakok
Industry Beijing
Beirut
P 0 Box 65295 Berlin
Riyadh 11556 Boston
Brussels
Kingdom of Saudi Arabia
Casablanca
Chicago
Detroit
Doha
Dubai
May28 2015 Dusseldorf
Frankfurt
Gothenburg
Guangzhou
Hamburg
Hong Kong
Aluminum Powertrain Study — Commercial offer
Kuala Lurnpur
Kyiv
Lagos
Lisbon
London
Dear Tariq Madrid
Manama
Thank you very much for your trust and the invitation to offer you our suppor
t in con
ducting the above study.
Moscow
Mumbai
As requested I have send our technical offer in PowerPoint in a separate envelo Munich
pe, but New Delhi
would like to briefly describe to you our understanding of the project’s backgr
ound and ue
objectives, outline the contents of our proposal and the approach we’d want
to take in Rune
executing this project. First, however, I would like to tell you why I believe OUIO
Roland Berger
Strategy Consultants will be right partner for you on this project, as we have
been in the aai
past.
Stockholm
Stuttgart
Taipei
Tokyo
A. Why Roland Berger? Vienna
Warsaw
I believe Roland Berger is uniquely positioned to support you on this important arb
undertaking in view of our intimate familiarity with NICDP’s strategic objectives und our
deep, holistic understanding of both the automotive supplier industry in genera and
l
aluminum smelting and casting in particular. Having advised most leading players in
aluminum component production we have direct, board-level access to potential investo
rs,
and with BarTecC, we have a partner onboard that will add shop-floor level operations
expertise to our team.
Most significantly perhaps though, we have once already supported you on a highly
similar exercise with JLR and are able to draw on critical lessons learned from it that will
help us avoid similar pitfalls as those we in the end confronted on FERN.

Roland Berger Tel. +49899230-0 Geschdftsflhrer:

Strategy Consultants GmbH Fax +49 89 9230-8202 Charles-Edouard Bouée
Postfach 22 11 63 www.roIandberger.com Dr. Sascha Haghani
80501 Munchen
Sitz der Gesellschaft: MInchen Joe Lichtenberger
Sederanger 1 AG Munches, HRB 64318 Stefan Schaible
80538 MQnchen USt-ldNr. DE 811295331
Germany Steuer-Nr. 143/176/40219
 Roland Berger
Strategy Consultants

B. Project Background
With the Alcoa joint venture in Ras Al-Khair now being fully operational,
Saudi Arabia has
taken a decisive step toward building a world-leading, highly cost-competit
ive aluminum
production and processing hub. With this is place, Saudi Arabia is now looking
to attract
downstream industries, especially in high value-add segments such as autom
otive.
Against this backdrop NICDP is looking for an external partner to analyz
e current market
trends and assess the size and share of the global automotive aluminum
component
market that could potentially be addressed from the KSA as well as help identify
and
attract potential investors.

C. Our approach
We propose to execute this project over 14 weeks between the end of June
and the end
of September 2015, as per the timeline outlined in the RFQ. Based on our vast
automotive
experience, we are confident that we can conclude our assessment of the
global market in
three weeks. This will give us a full five weeks to dedicate to the joint assessm
ent of Saudi
Arabia’s competitive position in the global market and the sizing of the KSA’s
addressable
market therein. I believe the time is needed to avoid the pitfalls of FERN, and
I would like
to use the time for extensive workshops with our team to fine-tune the busine
ss case.
Since we would again be able to rely on existing resources (namely our proprie
tary global
supplier database) to quickly identify and approach potential investors, the third
and the
forth module (investor search and target approach) will again be relatively short
at three
weeks each.

0. Project Team
We plan to deploy a highly experience Roland Berger team with profound experti
se along
the entire aluminum value chain. Overall responsibility for the project will rest with myself,
Wolfgang Bernhart, Senior Partner in the Automotive Competence Center. Operat
ional
management of the project will be assumed by Jens Garrelts, an experienced Roland
Berger Project Manager from my team. He will be working in a full-time capaci
ty, leading a
team of two to three consultants and senior consultants (we propose to vary the team
size
in line with the specific requirements of each module). We have further added Dr. Rainer
Bartl, General Manager of BarTecC Techno-Consulting, as a senior expert, who will bring
invaluable, hands-on casting and smelting expertise to the team.

E. Project timing and cost

Based on the suggested project deliverables, timeline and team allocation our consulting
fee amounts to USD 931,500 for deliverable-based professional fees, this includes all
expenses for research, graphics, travel and other project-related expenses but excludes
applicable taxes.

2
 Roland Berger
Strategy Consultants

As a token of our commitment to this project and NICDP, we will

offer a one-off discount
of 3.4%. The total project budget therefore amounts to USD 900,00
0 plus applicable
taxes. The invoicing scheme will be as follow:

- Project start USD 300,000

- Project start + 7 weeks USD 300,000
- Delivery of final report USD 300,000

Unless otherwise stated, the General Terms and Conditions of Roland

Berger Strategy
Consultants will apply. This proposal is valid until July 15, 2015.

Dear Tariq, I would like to emphasize our full commitment to suppor

t NICDP on this topic
and in so doing continue our successful past collaboration on FERN
. I can assure you that
you have the full competence and personal commitment to succes
sfully support you.
I trust that this proposal meets with your requirements, and look forwar
d to hearing from
you.

Yours

//

r. Wolfgang ernhart