Advisory Valuations Disposals

JAJ Consultants LLC

A ValuStrat Group Company Advisory • Valuations • Disposals Dubai Head Office

Dear Readers,

We are pleased to present to you our first Heavy Equipment Price Index Report, which we hope will be a source of benefit to your company. Given the increasing importance of heavy equipment in the booming construction and real estate industry in many parts of the Middle East, we believe that this report will be very useful to many of our clients, especially those involved in financing this equipment.

JAJ’s Industrial Consulting Division specializes in a variety of consulting services for the industrial sector including

valuation, technical due diligence, asset divestments, market research and feasibility studies – all of which relates to production facilities, heavy equipment and machinery of virtually all types and scale. These services provide very valuable insight to a wide cross-section of industry players and a part of this insight is what we would like to present to you through this brief but hopefully useful report.

Accurate valuations of heavy equipment and regular

monitoring of their pricing trends is critical in the business of heavy equipment finance. With our extensive experience spanning over 35 years in this business, we hope to present to you credible and timely information and analysis about this sector.

As always, we are eager to hear our clients’ valuable feedback on all our work. Please do let us know if you have any suggestions for further improvement of this report and we would be happy to discuss your feedback and make all efforts to enhance its contents.

Thank you for your continued support.

Sincerely,

Shahid Kazi

Chief Executive Officer ValuStrat Group

Thus the indices presented are just indicative of the

value trends of the automobiles in coming years

and should be treated as such. JAJ takes no

responsibility of any deviations from these

expectations for any automobile, as valuations will

differ significantly on a case to case basis.

Price Index Methodology

A price index is a measure of the proportionate, or

percentage, changes in a set of prices over time. A

price index measures changes in the prices of goods

and services. As the prices of different goods and

services do not all change at the same rate, a price

index can only reflect their average movement. A

price index is typically assigned a value of unity, or

100, in some reference period and the values of the

index for other periods of time are intended to

indicate the average proportionate, or percentage,

change in prices from this price reference period.

The starting date of the indices vary from

equipment to equipment depending on the earliest

availability of data, thus the indices should be used

to evaluate price trends across time rather than

across equipment types.

The analysis in this report has been derived from

839 data points collected by JAJ Consultants. These

point were selected from actual valuations

conducted by our team between April 2012 to April

2013. These valuations were conducted for secured

lending or financial reporting purposes.

JAJ’s team of experts analyzed the values of 40

different types of heavy equipment products

including Piling Rigs, Tower Cranes, Mobile Cranes,

Wheel Loaders, Tractor Heads, Bulldozers,

Excavators, Motor Graders, Generators air

compressors etc. spanning over 28 brands. The

years of manufacture of these equipment's ranged

from 1989 to 2013. Our team selected types of

equipment that were most popular amongst our

clients and the year of manufacture in which we

had the highest data points (in this case 2007,

2008, 2009).

It must be pointed out that valuation is also

dependent upon several other factors, including but

not limited to the condition of the equipment and

usage.

6

Our research shows that the

prices of truck heads have

increased from fourth quarter

of 2012 due to the demand

and the lack of availability of

used 6x4 truck heads in the

market. We anticipate that

the prices will most likely

remain stable in the 2013,

because of the availability of

new stock.

27-Nov-12 17-Dec-12 6-Jan-13 26-Jan-13 15-Feb-13 7-Mar-13 27-Mar-13 16-Apr-13

Truck Head 6x4 (Year of Manufacture 2008)

There has been an

improvement in the prices of

wheel loaders and excavators

from 2012 onwards. The

prices of this asset class

(used) will continue to

increase due to the

improvement in the

construction industry of UAE

especially Abu Dhabi.

80 90 100 110 120 130

28-Oct-12 17-Nov-12 7-Dec-12 27-Dec-12 16-Jan-13 5-Feb-13 25-Feb-13 17-Mar-13 6-Apr-13 26-Apr-13

Excavator (Year of Manufacture 2007)

8

There is an increase in

demand of used 3 Axle

Trailers in the UAE leading to

an increase in price of this

asset class. We anticipate that

the prices of used 3 axle

trailers will continue to

increase due to the high

differential in the pricing of

new and used trailers.

60 70 80 90 100 110

11-Feb-12 1-Apr-12 21-May-12 10-Jul-12 29-Aug-12 18-Oct-12 7-Dec-12 26-Jan-13 17-Mar-13 6-May-13

3 Axle Trailer (Year of Manufacture 2008)

80 100 120 140

18-Oct-12 7-Nov-12 27-Nov-12 17-Dec-12 6-Jan-13 26-Jan-13 15-Feb-13 7-Mar-13 27-Mar-13 16-Apr-13

3 Axle Trailer (Year of Manufacture 2007)

80 100 120 140

18-Oct-12 7-Nov-12 27-Nov-12 17-Dec-12 6-Jan-13 26-Jan-13 15-Feb-13 7-Mar-13 27-Mar-13 16-Apr-13

3 Axle Trailer (Year of Manufacture 2009)

To provide our clients with the highest quality of

report we have designed each input field to be

unique. All our valuation forms have smart learning

to ease the input of information for our surveyors

and at the same time produce faster results. We

have also set restrictions on each field to avoid

typing mistakes and ensure the completeness of

the data, our forms do not accept chassis number

above or below 17 characters or valuations without

a picture.

About ValuStrat / JAJ

JAJ Consultants is part of ValuStrat - the Middle

East’s premier consulting group involved in

Advisory, Valuations and Asset Divestments. JAJ

Consultants is the group’s asset valuation arm for

UAE. We have been active in the Middle East since

1977 and have maintained an exceptional track

record. The firm’s expertise lies in Strategic

Advisory and Valuations across various industry

sectors. We provide advisory services to some of

the largest developers, manufacturers, accounting

firms and family offices in the region.

Our iPad based heavy equipment valuation system

is built for the highest levels of performance. It is

incredibly powerful and yet, remarkably simple.

With JAJ’s valuations system we provide valuations

within 1 hour from the time of survey, which is 23

hours less than our previous time. Our team

specializes in the advisory of all types of heavy

equipment which includes:

o

Piling Rigs

o

Tower Cranes

o

Mobile Cranes

o

Wheel Loaders

o

Tractor Heads

o

Bulldozers

o

Excavators

o

Motor Graders

o

Generators air compressors

Our experienced heavy equipment team provides

instant valuations to cater to our clients’ needs;

within 15 minutes of the survey a draft report is

sent directly to your inbox. Our innovative reports

include a timestamp to insure timeliness and high

resolution pictures for verification that the vehicle

has been physically inspected.

Our iPad based valuations

systems enable us to provide

clients with a draft report 15

minutes from the time of

survey and final reports 1

hour from the time of

survey.

10 About Hilco-ValuStrat (Joint Venture)

Hilco provides industrial asset disposition services, specializing in machinery, equipment and inventory auctions and negotiated sales. It sells the broad range of industrial assets found in manufacturing, wholesale and distribution companies. Hilco Industrial performs dispositions through on-site, online and combination “webcast” auction sale events as well as negotiated (private treaty) sales. Hilco Industrial has capital to put at risk and often acquires assets or provides guarantees. It also provides asset disposition services on a fee or commission basis. Hilco Industrial began operations in its current form in 2000.

Hilco Industrial conducts more than 75 machinery and equipment auctions and orderly liquidations per year covering the broadest spectrum of industries, company types and levels of technology. Hilco’s corporate lineage spans more than 50 years, and in that time and have repositioned assets valued at more than $3 billion. ValuStrat is involved in Advisory, Valuations and Asset

Divestments. We have been active in the Middle East since 1977 and have maintained an exceptional track record. JAJ Consultants is ValuStrat’s asset valuation arm in UAE.

The group’s expertise lies in strategic advisory and asset valuations across various industry sectors, and industrial asset divestment services through the Hilco-ValuStrat joint venture. ValuStrat’s Advisory Division provides consulting and advisory services to some of the largest developers, manufacturers, accounting firms and family offices in the region and focuses mainly on strategic advisory, market research, feasibility studies, highest and best use analysis, market research, industry research, sector analysis, financial modeling and business valuations.

ValuStrat has been responsible for working on some of the most iconic projects in the Middle East for the last three and a half decades. Keeping the traditional values, we continue to innovate and provide our clients with unique products in this extremely competitive market place.

ValuStrat’s growth is intrinsically linked to the Middle East. Although the group has seen much growth in the last decade, our purpose has never wavered: to provide top quality services and products that challenge the status quo, through a large and experienced team which is a vital part of the group’s ethos.

ValuStrat is involved in

Advisory, Valuations and

Asset Divestments. We have

been active in the Middle

East since 1977 and have

maintained an exceptional

track record.