Slide 1: Company Overview
Company Overview April 2008 1
Slide 2: Business Outlook
Business Outlook 2
Slide 3: Production Sites
Production Sites The major KAMAZ production facilities are located in the central part of Russia, Republic of Tatarstan, Naberezhnye Chelny. Major production sites: Parent company «TRUCK ASSEMBLY 100%-subsidiary 100%-subsidiary 100%-subsidiary 100%-subsidiary PLANT» «ENGINE PLANT» «TOOLING « FOUNDRY
Slide 4: Product Range
Product Range Dump trucks Loading capacity 4x2 8 tn 6x6 9,5 tn 4x2, 6x4, 6x6, 8x4 8,5-19,5 tn 6x4, 6x6, 8x4, 8x8 20-34 tn Drop-side trucks 4x2 3,5 tn 6,5 tn 4x4, 6x6, 8x8 14 tn 4x2, 6x2 7,5-12,5 tn 4x2, 6x2, 6x4 8,5-15,5 tn 6x4, 6x6, 8x4 21-28 tn 4x2, 6x2, 6x4 8,5-15,5 tn Long Haul trucks 4x2 7,05 t
Slide 5: Superstructures on KAMAZ Chassis
Superstructures on KAMAZ Chassis 5
Slide 6: Distribution and Service Network
Distribution and Service Network KAMAZ has the largest distribution and service network in Russia and ex-Soviet Republics Distribution network: 126 authorized distributors. Service network: > 300 service points in Russia and CIS (105 of them are owned by KAMAZ Group), > 37 in foreign countries Leasi
Slide 7: Assembly Production
Assembly Production - existing projects ( Kazakhstan, Vietnam, Korea, Pakistan, Iran) - prospective projects (Egypt, Sudan, Angola, Venezuela, India) 7
Slide 8: Recent Achievements
Recent Achievements Improvement of financial performance Increase of revenue in 2006 by 45% to 2 612 mln $ Increase of EBITDA in 2006 by 63% to 300 mln $ Increase of net income in 2006 by 49% to 142 mln $ Sales volume growth by 35% in 2006 , by 23,2%* in 2007 Development of spare parts production in
Slide 9: Market Overview
Market Overview 9
Slide 10: Promising Growth of Russian Economy
Promising Growth of Russian Economy Real GDP and РВЕ Market Growth HDT Market Drivers z Favourable market conditions driven by Russia’s 210% 6,5% 6,0% economic expansion and the growth of capital 8,1% 10,2% investments 180% 18,3% z Growth of key sectors of the economy that employ 25,9% HDTs 150% – I
Slide 11: Heavy Duty Truck Sales in Russia
Heavy Duty Truck Sales in Russia HDT Market Development Competitive Analysis European brands - Migration of customers from used imports to new trucks 200 caused by increase of customs duties for used trucks in 189 190 179 180 168 2006: customs duties for new trucks 5-15% from customs 170 155 price,
Slide 12: KAMAZ Market Position in Russia
KAMAZ Market Position in Russia Market Share of Major Players KAMAZ vs the Nearest Competitors 40% 36,5% 36,3% 34,7% 31,8% 33,5% 35% 2007 12,1% 31% 30% 5,9% 25% 22,1% 20% 17,9% 16,2% 36,5% 15% 11,3% 11,5% 10,2% 10,7% 11,6% 10,1% 2003 22,1% 10% 10,3% 6,7% 7,6% 6,7% 6,1% 7,4% 5,7% 5,5% 5,2% 5,7% 6,7%
Slide 13: KAMAZ Sales
KAMAZ Sales KAMAZ Market Share By Segments (2007) Customer Structure (2007) Others; 16% Industrial and civil Prim e m over 52,0% 48,0% construction; 15% Civil Long haule trucks 2,0% 98,0% infrastructure; 5% Road construction; Chassi, vehicles w ith 14% superstructer 45,0% 55,0% Agriculture; 5% Dum p
Slide 14: KAMAZ Market Position in Russia
KAMAZ Market Position in Russia KAMAZ Sale Volume Export Sales by Countries (2007) Latin America; Europe; 2% Turkmenistan; 70 65* 1% 4% Azerbadzhan; 2,6 4% 60 54* Belarus; 2% 13,5 Asia; 8% 1,9 50 43,8 11,5 2,5 Africa; 4% th. trucks 40 Others; 1% 32,4 8,8 28,1 2,9 30 24,0 1,9 5,6 Ukraine; 22% 1,5 4,3
Slide 15: Operating and Financial Results
Operating and Financial Results 15
Slide 16: Operating Highlights
Operating Highlights 2005 2006 2007E 2008F Trucks sales volume, th. units 32,4 43,8 54,0 65,0 Y-O-Y, % 35,2% 23,2% 20,4% Domestic sales, th. units 23,9 32,5 39,2 46,1 Y-O-Y, % 36,0% 20,6% 17,6% Export sales, th. units 8,5 11,3 13,4 16,1 Y-O-Y, % 32,9% 19,0% 19,4% Trucks sales volume (programme Trade
Slide 17: Financial Highlights
Financial Highlights $ mln 2005 2006 2007E Revenue 1 797 2 612 3 526 Y-O-Y, % 45,4% 35,0% Gross profit 319 513 793 Y-O-Y, % 60,8% 54,7% Gross profit margin, % 18% 19,6% 22,5% Operating profit 88 200 388 Y-O-Y, % 127,3% 93,9% Operating profit margin, % 4,9% 7,7% 11,0% EBITDA 182 300 494 Y-O-Y, % 64,8
Slide 18: Benchmarking
Benchmarking Revenue 2006, mln. $ Revenue : growth rate 2006/2005, % MAN 16 304 KAMAZ 45% Scania 9 817 Severstal-auto 31% GAZ 31% GAZ 4 370 MAN 13% KAMAZ 2 612 Scania 10% Severstal-auto 1 231 6% Volvo 0 5 000 10 000 15 000 20 000 0% 10% 20% 30% 40% 50% 60% m ln. $ EBITDA Margin 2006, % Net Profit Ma
Slide 19: Strategy Outlook
Strategy Outlook 19
Slide 20: Key Elements of Strategy - 1
Key Elements of Strategy - 1 Product strategy • Developing and reshaping KAMAZ product portfolio in line with market trends: - increasing share of more demanding KAMAZ products (all-wheel drive trucks and heavy truck family-6520) in their more profitable modifications (vehicles with superstructures
Slide 21: Key Elements of Strategy - 2
Key Elements of Strategy -2 Brand protection • Introducing brand packing materials and certification of service centers • Establishing spare parts supermarkets in Russian regions and abroad (Kazakhstan, Ukraine, Vietnam, UAE) Strengthening position on existing export markets • Improving service infr
Slide 22: Capital Investment Program
Capital Investment Program * Capex (mn $) 500 418 400 352 338 300 210 200 181 100 75 0 2007 2008 2009 2010 2011 2012 Reconstruction of production facilities Development of distribution and service network R&D - Engines development (Euro-3, Euro-4, Euro-5 Standard) - New drive and front axels - New c
Slide 23: KAMAZ Share Performance
KAMAZ Share Performance Shareholder Structure (Dec. 2007) Market Cap (mn $) Others; 28 02 2008 4 360 Troika- 3,6% 31 12 2007 2 969 Dialog; 21,1% 31 12 2006 1 454 Russian 31 12 2005 688 Federation; 31 12 2004 361 37,8% 31 12 2003 298 Kimco - 1 000 2 000 3 000 4 000 5 000 (KKR); 4,2% KAMAZ- Capital; 3
Slide 24: Paris-Dakar Rally
Paris-Dakar Rally Since 1999 KAMAZ team has been winning first places in all races in which it took part. It is a seven times winner of Paris-Dakar rally world championship. Paris-Dakar Rally: • first race 1979 • Paris to Dakar, across the Sahara desert; actual route varies due to political situatio
Slide 25: Profit Statement Appendix 1
Profit Statement Appendix 1 mln.$ 2006 2005 2006/2005 % Revenue 2 612 1 797 815 45% Cost -2 099 -1 478 -621 42% Gross profit 513 319 194 61% Selling expenses -109 -85 -24 28% Administrative expenses -177 -140 -37 26% Research and development costs -5 -4 -1 25% Other operating income 3 20 -17 -85% Ot
Slide 26: Balance Appendix 2
Balance Appendix 2 mln. $ 2006 % 2005 % Current asset 965 41% 716 36% incl. Cash 94 4% 38 2% Non-current asset 1 372 59% 1 248 64% incl. Fixed asset 1 027 44% 995 51% Total asset 2 336 100% 1 965 100% Current liabilities 790 34% 769 39% incl. Loans and Borrowings 280 12% 316 16% Non-current liabilit
Slide 27: Disclaimer Appendix 3
Disclaimer Appendix 3 This presentation contains “forward-looking statements”, which include all statements other than statements of historical facts. Saying that we mean: - plans or anticipation regarding our future profits or losses, regarding shares, dividends, the structure of equity as well as
Slide 28: Contact details
423827 Naberezhnye Chelny, Corporate Finance Division Milinova Elena pr. Avtozavodskii, 2 +7 8552 37 1300 +7 8552 45 2525 fax +7 8552 37 1867 fax +7 8552 45 2828 milinova@kamaz.org kamaz@kamaz.org Barinova Olga +7 8552 37 1476 +7 960 070 2859 barinova@kamaztrade.ru Ilyuhina Julia +7 8552 37 1472 ily