Ashok Leyland Limited · NSE:ASHOKLEY
Ashok Leyland — Shareholder Meeting (July 2008)
49 slides from Ashok Leyland's shareholder meeting presentation, Jul 30, 2008
Slide 1: Annual General Meeting July 30, 2008
Annual General Meeting JJuly l 30 30, 2008 MD / AL / Annual General Meeting / 30/07/2008
Slide 2: Year 2007-08: A retrospect / 2008-09: Looking forward
Year 2007-08: A retrospect Market performance Ashok Leyland performance Financials Product launches Enhanced efficiencies 2008-09 : Looking forward Outlook Product plans Capacity expansion Investment plan Going global Investor relations MD / AL / Annual General Meeting / 30/07/2008
Slide 3: 2007-08 – A Retrospect
2007 08 – A Retrospect 2007-08 MD / AL / Annual General Meeting / 30/07/2008
Slide 4: Economic Growth Story Continued
Economic Growth Story Continued Economy remained buoyant, with GDP recording 9.0% growth Industrial production grew by 8.3%; agriculture production recorded 5.8% growth Impetus to infrastructure development continued ti through: d th h NHAI project • Completion : 26.8% • All phases in full swing MD
Slide 5: M&HCV TIV
M&HCV TIV 246863 232339 179345 172868 136804 Pass 95741 Goods 73185 Source: SIAM 38655 28127 28693 19970 24591 25638 16814 '01-02 '02-03 '03-04 '04-05 '05-06 '06-07 '07-08 Marginal fall after six years of growth MD / AL / Annual General Meeting / 30/07/2008
Slide 6: Ashok Leyland's Performance
Ashok Leyland Leyland’s s Performance MD / AL / Annual General Meeting / 30/07/2008
Slide 7: Sales touched all-time high
Sales touched all-time high 83094 83307 61655 54740 48654 36444 29673 '01-02 '02-03 '03-04 '04-05 '05-06 '06-07 '07-08 MD / AL / Annual General Meeting / 30/07/2008
Slide 8: Growth in growing segments
Growth in growing segments M&HCV (-2%) AL Exports Goods Passenger Engines (-6%) (35%) Spares AL AL (- 11%) (51%) Fully-built Tippers solutions (19%) Fall in goods segment offset by AL gains in passenger, ICV and (21%) exports MD / AL / Annual General Meeting / 30/07/2008
Slide 9: Composition of Sales
Composition of Sales 2006-07 2007-08 % Inc (Dec) Domestic Civilian Passenger 12 007 18 244 51.9 Goods 64 144 57 364 (10.5) Total 76 151 75 608 (0 7) (0.7) Defence 918 414 (54.9) Exports 6 025 7 285 20.9 Total vehicles 83 094 83 307 0.2 Engines 8 202 11757 43.3 Spares incl Defence 5 468 7 912 44.7 (R
Slide 10: The Financials
The Financials MD / AL / Annual General Meeting / 30/07/2008
Slide 11: The Financials
The Financials Rs million 2006-07 2007-08 % growth Net Sales / income from operations 71 681.76 77 291.23 7.8 Gross operating margin 7 026.85 8 039.89 14.4 Financial expenses 53.32 497.40 832.8 O Other income 708.03 08 03 739.99 39 99 4 4.5 Gross Profit (PBDT) 7 681.56 8 282.48 7.8 Depreciation 1 50
Slide 12: Performance Highlights – 5 Years
Performance Highlights – 5 Years 03-04 04-05 05-06 06-07 07-08 R O C E (%) 17.6 18.6 21.2 24.7 23.2 Inventory 5.2 5.7 5.3 5.5 5.0 Turns (Times) Debtors (Days) 21 14 18 17 6 Debt : Equity 0.5 0.3 0.2 0.3 0.4 EPS (In Rs.) 1.63 2.28 2.74 3.38 3.53 MD / AL / Annual General Meeting / 30/07/2008
Slide 13: Product Introductions of 2007-08
Product Introductions of 2007-08 MD / AL / Annual General Meeting / 30/07/2008
Slide 14: 3121 (8x2)
3121 (8x2) A new breed in MAVs; delivers 25% extra rated payload, faster turn around time with greater fuel efficiency. Powered to take on the Indian Highways. MD / AL / Annual General Meeting / 30/07/2008
Slide 15: 4921 TT (6x4)
4921 TT (6x4) The highest permitted pay load in CVs under the CMVR. Well accepted giving AL leadership in the 49-tonne segment. MD / AL / Annual General Meeting / 30/07/2008
Slide 16: 2518 Mining Tipper
2518 Mining Tipper Equipped with high-power engine. Rugged 8S 109 gearbox and bogie suspension. Poised to take charge of the growing tipper market. MD / AL / Annual General Meeting / 30/07/2008
Slide 17: Luxura
Luxura Marking the entry of AL into the luxury bus segment MD / AL / Annual General Meeting / 30/07/2008
Slide 18: Buses ready for BRTS
Buses ready for BRTS 635 mm RE SLF Diesel BS2 / Enviro CNG 12 Meter ULE 390mm CNG BS3 MD / AL / Annual General Meeting / 30/07/2008
Slide 19: 12m BSII
12m BSII Durable luxury bus with lowest operating costs for intercity and intra city operations MD / AL / Annual General Meeting / 30/07/2008
Slide 20: Engine Development – Another 'First'
Engine Development – Another ‘First’ Developed the country’s first one-litre-per- cylinder 6 cylinder CNG engine for buses employing Multi Point Fuel Injection (MPFI) Meets Euro IV emission standards – ahead of the th mandate d t iin IIndia di MD / AL / Annual General Meeting / 30/07/2008
Slide 21: Enhanced Efficiencies
Enhanced Efficiencies MD / AL / Annual General Meeting / 30/07/2008
Slide 22: Improving People Efficiencies
Improving People Efficiencies Mission Gemba: A successful movement with 94 GEMBA units across the Company Project YEs: Had young executives engaged in various innovative and strategic projects: Shadow MPB Best practices for the new plant at Uttarakhand iBus Improve : In overdrive with 2,100 projects
Slide 23: Going beyond CVs
Going beyond CVs Partnership with Nissan Motor Company The proposed entry into LCVs; first products to roll out by 2010 Ashley Alteams Forayy into HPDC ((High g Pressure Die Casting) extruded precision products for the automotive and telecommunication sectors Automotive Infotronics Jointly promoted
Slide 24: 2008-09 – Looking forward
2008-09 – Looking forward MD / AL / Annual General Meeting / 30/07/2008
Slide 25: Outlook
Outlook Economic fundamentals remain strong Adequate freight availability Single digit growth in prospect Pressures from hardening g of interest rates and rising input costs remain MD / AL / Annual General Meeting / 30/07/2008
Slide 26: 2008-09 – Product plans
2008-09 – Product plans MD / AL / Annual General Meeting / 30/07/2008
Slide 27: 4930 TT
4930 TT Slated for pilot launch by current year-end MD / AL / Annual General Meeting / 30/07/2008
Slide 28: The iBus
The iBus Post concept validation at Auto Expo 2008, slated for pilot launch by year-end. Phase 1 version for full scale production MD / AL / Annual General Meeting / 30/07/2008
Slide 29: 4018 Super
4018 Super 4018 super - 132 kw H series engine with improved torque curve. Ensures fuel efficiency in all loads MD / AL / Annual General Meeting / 30/07/2008
Slide 30: New concept vehicles
New concept vehicles An innovative side tipper that renders tipping easier, more convenient, more stable and whole lot quicker. Ideal for operations at roadsides and closed sheds MD / AL / Annual General Meeting / 30/07/2008
Slide 31: Capacity Expansion
Capacity Expansion MD / AL / Annual General Meeting / 30/07/2008
Slide 32: Target: 184,000 vehicles by 2010
Target: 184,000 vehicles by 2010 50,000 2009-2010 vehicles 50,000 2008-09 vehicles Current Capacity 84,000 vehicles MD / AL / Annual General Meeting / 30/07/2008
Slide 33: Technology renewal of Ennore
Technology renewal of Ennore Fresh capacity for 50,000 units each of engines and gearboxes State-of-the-art MD / AL / Annual General Meeting / 30/07/2008
Slide 34: New plant in Uttarakhand
New plant in Uttarakhand Equipped with state-of-the-art technology Smart use of land Straight line flow Eco-friendly Commissioning by first quarter of 2009-10 MD / AL / Annual General Meeting / 30/07/2008
Slide 35: New facility at RAKIA
New facility at RAKIA Integrated Chassis and Bus assembly plant Commissioning this year-end Capacity doubled to 2,000 vehicles per annum MD / AL / Annual General Meeting / 30/07/2008
Slide 36: Investment Plan
Investment Plan MD / AL / Annual General Meeting / 30/07/2008
Slide 37: Capex
Capex Total Capex - Rs. 3,000+ crores over the next three years To fund capacity expansions at Uttarakhand, the new engine and gearbox lines at Ennore andd ffor product d t development d l t MD / AL / Annual General Meeting / 30/07/2008
Slide 38: Going global
Going global MD / AL / Annual General Meeting / 30/07/2008
Slide 39: Spreading the global footprint
Spreading the global footprint The focus on second hemisphere markets to continue MD / AL / Annual General Meeting / 30/07/2008
Slide 40: "Unitruck" – Modular, Universal
“Unitruck” – Modular, Universal An all-new global full range truck platform, starting 2010 Modular, will meet diverse markets, applications, road/load conditions Range of automatic/automated manual transmission Newgen cabs, then modular modern cabs Manufacturing- and service-friendly Electronics for
Slide 41: 'Neptune' Engine
‘Neptune’ Engine Clean slate development 4/6 cylinder, 4.7 – 8 litre, BS 3, BS 4 / Euro 4 compliant, protected for Euro 5
Slide 42: Investor Relations
Investor Relations MD / AL / Annual General Meeting / 30/07/2008
Slide 43: Value-added services for share-holders
Value-added services for share-holders Annual share-holders satisfaction survey Conducted for 7 years consecutively Responses are summarised and reviewed by the Share-holder/Investor Grievance Committee of the Board Investor Guide Sent to every share-holder every year since 1998 Annual Reports Discl
Slide 44: Sharing profits: steady increase in the dividend rate
Sharing profits: steady increase in the dividend rate Percentage increase 150 150 120 100 75 50 45 March March March March March March March '02 '03 '04 '05 '06 '07 '08
Slide 45: A growing family of shareholders
A growing family of shareholders 303954 200091 146824 137244 79804 75323 71103 March March March March March March March '02 '03 '04 '05 '06 '07 '08
Slide 46: AL Vs BSE index
AL Vs BSE index Daily Q.BSESN [Line], QASOK.BO [Line] [Professional] 3/12/2007 - 5/9/2008 (GMT) Price Price Q .BSESN, Close(Last Trade), Line INR 5/5/2008 17,490.90 INR Q A SO K.BO, Close(Last Trade), Line 54 5/5/2008 42.90 19000 52 18000 50 17000 16000 48 15000 46 14000 44 13000 42 12000 11000 40 1
Slide 47: AL vs NSE Index
AL vs NSE Index Daily Q.NSEI [Line], QASOK.NS [Line] [Professional] 3/8/2007 - 5/23/2008 (GMT) Price Price Q .NSEI, Close(Last Trade), Line INR 5/5/2008 5,192.25 INR Q A SO K.NS, Close(Last Trade), Line 54 5/5/2008 42.85 6000 5800 52 5600 5400 50 5200 48 5000 46 4800 4600 44 4400 42 4200 4000 40 380
Slide 48: Shareholding pattern
Shareholding pattern (as on 31st March, 2008) Hinduja Automotive Ltd. 51% Body corporate and d others th 6% FIIs Banks & MFs 2 % 12% Resident Individuals / Trust / Clearing members FIs, Insurance Co, State Govt, 14% Govt cos. 15 %
Slide 49: Thank You
Thank You MD / AL / Annual General Meeting / 30/07/2008