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INVESTMENTS

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BOOMING INDUSTRIES LTD | INVESTMENT SHEET 18.10.2013 | DUCATI ROTTERDAM – THE HAGUE

ABOUT DUCATI STORE ROTTERDAM – THE HAGUE

DUCATI STORE ROTTERDAM – THE HAGUE will be the new exclusive official Ducati dealership for two major cities in the Netherlands, Rotterdam and The Hague, also serving the greater area around these cities in the province South-‐Holland including Dordrecht, Zoetermeer and Delft. Ducati, Audi and Lamborghini The acquisition of Ducati Motor Holding by Audi AG has been fully completed in July 2012 through its controlled company, Automobili Lamborghini S.p.A. President of the Board is the CEO of Audi AG, Rupert Stadler with Gabriele Del Torchio and Claudio Domenicali from Ducati as Members of the Board alongside Horst Glaser and Axel Strotbek of Audi AG. The acquisition by Audi AG will develop Ducati into a brand that is a combination of Italian passion based on the rich racing history of the Ducati and the extremely high quality standards of Audi.

AND BY

Rationale These developments within Ducati alongside the anticipated recovery of the motor industry as a whole are the main drivers behind this investment. After a careful start-‐up period where cost will be kept at a minimum level, the new Ducati Store dealership will be ready to gear up to flagship status when market recovery materializes and sales accelerate.

INVESTMENTS


THE MARKET

Until 2008 the annual number of new motorcycles sold in the Netherlands was around 16.500. During the recession this number has gradually declined to 10.827 in 2011.

The number of second hand motorcycle sales varies around 100.000 – 120.000 per annum.

The fastest growing segments are the “larger engine segment” (> 950 cc) and the so-‐called “Street” and “All-‐road” segments. Ducati is well represented in these segments as all models are available with 1.000+ cc engines and Ducati is present in the heart of the Street segment with Streetfighter, Monster and Diavel models. The All road segment is served with the Multistrada model.

(data source: Rai Vereniging, 19th November 2012)

2013 Streetfighter 2013 Multistrada 2013 Monster

Japanese products were leading the market up to 2010, the year that BMW took over market leadership. Strong brands with an emotional and historical background, as BMW, Ducati, and Harley-‐Davidson are believed to be best positioned as the leading brands of the future.

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Ducati’s market share in the Netherlands is around 7% and growing. An annual sales total of 1.000 new Ducati motorcycles is expected to be achieved within 3 years.

The total population of the South-‐Holland province is with 3.500.000 equal to 20% of the total Netherlands population.

The ambition of Ducati Store Rotterdam – The Hague is to serve a broad regional area around these cities, achieving approximately 10 -‐ 15% of national Ducati sales therefore amounting up to 70-‐100 new motorcycles in 2015.

THE 2013 PRODUCTS

• 1200 Diavel , Diavel Dark, Diavel Carbon, Diavel Strada

• 800 Hypermotard , 1100 Hypermotard SP, Hyperstrada

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• Monster 696, 796, 1100 EVO, Monster Diesel, 20th Anniversary

• Multistrada 1200, 1200 S Touring, 1200 S Pikes Peak, 1200 S Granturismo

• Streetfighter 848, Streetfighter 1100 S

• Superbike 848 EVO, 848 EVO Corse SE, 1199 Panigale, 1199 Panigale S & R

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STAFFING / SET UP / LOCATION OF THE STORE

Overall management and Sales will become the responsibility of Mr. Thomas Homs, former owner and director of the official Ducati dealership in The Hague.

Ducati Store Rotterdam – The Hague will acquire Scarpa Moto, a maintenance Service provider for Ducati motorcycles with its own loyal clientele. Scarpa Moto is owned and operated by Bert Kooij (after sales manager) and Ronald Schoenmakers (award winning Ducati mechanic).

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The assets of the Scarpa Moto (Ducati tools, bike lifts and parts stock will be acquired for replacement value, approximately Euro XXXXXXX,-‐. An amount equal to the stock in parts and accessories at the Scarpa location will be paid in cash. The remaining amount for tools and equipment (Euro XXXXXXX,-‐) will be converted In a loan, carrying X% interest on an annual basis, and will be repaid in three terms (XXXXXX on 31/12/2014, XXXXXX on 31/12/2015 and XXXXXX on July 1st 2016).

In return, both Mr. Bert Kooij and Mr. Ronald Schoenmakers will be employed by Ducati Store Rotterdam – The Hague and they will secure the Scarpa clientele for the Store. Location: The selected location for the dealership will be the current address of Scarpa at Kolding 20 in Barendrecht, combined with the neighboring building at Kolding 18 which will be fitted as the showroom. Information on this location is available in a separate document. The intention is, when the budgets for 2014 and 2015 are met, to move to a larger location more centrally located in the region Rotterdam – The Hague.

Lo

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FINANCIALS / PROJECTIONS 3 YEARS, PROFIT & LOSS (revised per October 18thth 2013)

THIS PAGE EMPTY – CONTENT CLASSIFIED AS CONFIDENTIAL -‐

FINANCIALS / PROJECTIONS INVESTMENTS & RETURN ON EQUITY

THIS PAGE EMPTY – CONTENT CLASSIFIED AS CONFIDENTIAL -‐ PROPOSED DEAL Shareholding of Ducati Store Rotterdam – The Hague: Cap table after the anticipated transaction: (TRANSACTION COMPLETED NOV 2013)

TOTAL SHARES % OF COMPANY CLASS A – BOOMING INDUSTRIES LTD 12

12,00%

CLASS A -‐ NEW INVESTORS 88 88,00% TOTAL 100 100,00%

Profiles preferred new investors / shareholders: -‐ an entrepreneur currently owning a VW/Audi or Porsche dealership -‐ financial investor(s) with emotional affinity towards the Ducati brand

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PROJECTED RETURNS FOR INVESTORS:

THIS PAGE EMPTY – CONTENT CLASSIFIED AS CONFIDENTIAL -‐

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DUCATI STORE IMPRESSIONS

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LEGAL DISCLAIMER This material has been prepared by Booming Industries Ltd solely for use by the prospective investors of Ducati Store Rotterdam – The Hague (the “Company”) and shall be maintained in strict confidence. The recipient further agrees that the contents of this material are a trade secret, the disclosure of which is likely to cause substantial and irreparable competitive harm to the Company and its affiliates. Any reproduction or distribution of this material, in whole or in part, or the disclosure of its contents, without the prior written consent of Booming Industries, is prohibited. The information herein does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. No person in any jurisdiction may treat this material as constituting either an offer to sell, or a solicitation of an offer to buy, any interest in the Company. A prospective investor must rely solely on the terms of, and disclosure of information in, the Company's final offering memorandum and related documents: the only basis on which participations may be made. SELLER CONTACT

BOOMING INDUSTRIES LTD Mr. Richard Sikkel – Executive Partner [email protected] +31611592727

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