GAZ Group Overview

GAZ Group Overview
November 2011
Present Segments and Market Share in Russia, 2010
LCV
Light commercial
vehicles: chassis cab,
cargo vans and passenger
vans
Chassis Cab
82 %
81 %
Panel Van
26 %
22 %
Buses
27 %
17 %
MCV
59 %
46 %
Low TCO
Large service
network
Spare part
availability
Buses
All segments buses:
small, medium, large,
city, intercity, tourist,
trolley
Small buses
82 %
74 %
Medium buses
79 %
71 %
Large buses
44 %
49 %
Intercity, tourist
26 %
21 %
Trucks
Power Train
Trucks: Light, Medium
Gasoline engines Diesel
duty, off-road heavy
engines
duty, road heavy duty
Transmissions
Off-Road
(incl. military supply)
46 %
46 %
On-Road
C-33, C-40
11 %
8%
Heavy Diesel
engines
48 %
48 %
Gasoline engines
50 %
44 %
Fuel Systems
50%
44 %
Special Machinery
Excavators, loaders, auto
graders
Motor Graders
61%
53 %
Wheeled Excavators
44%
38%
Front-end Loaders
4%
3%
Automotive
components
Driven & non driven
axels, suspension
elements, steering,
wheels, dies, molds,
stampings, forging,
casting
Forgings
9%
Iron castings
6%
Largest market
Best military
Full range of Diesel
Strong in motor
Complete
share
World class
interior
Hybrid engine
Trucks
Hugh product
reliability
Export potential
engines 120-800 hp
Supplier to outside
customers
graders
Low price
Service & spares
availability
production cycle
Large capacity
Large capability
Market share
units, % money,%
2
Results: 2010 & 8M 2011
Quality improvements, warranty claim
reduction, reduce cost of ownership
Improve operational efficiency
2010
8M 2011
-21,6%
-39,6%
Revenue per 1 direct worker
+15% +15,7%
LCV Supplier IPTV -19,27%
-11,46%
In-process Inventory turnover
-41%
-6,9%
LCV MFG DRL
-23%
Rework costs
n/a
-14,2%
LCV 2 MIS IPTV
-32,1%
2010 8M2011
New Products
Sales increase
2010
GAZelle-Business upgrade
PAZ-3204, PAZ-4234 Cummins
LiAZ-5256 Cummins
LiAZ-5292 EEV
8M 2011
LCV
+58%
+31%
Off-Road Trucks
+57%
+13%
Buses
+25%
+22%
URAL-44202, -35552, -6370,
UMZ 4216 Bi-fuel, YaMZ-652
3
HR Strategy
Objective:
Development of company culture aimed at continuous improvement of product quality,
process efficiency and employees’ pride for products and the Company
Changes required to attract, retain and motivate employees in 2011
Salary
- Competitive
salary based on
performance
assessment
- At least 15%
salary increase in
2011
Motivation
Development of
motivation
programs:
- Include into
budget
- Improve system
- Effect payments
Social sphere /
labor environment
Promotion
Improvement of
social programs:
Succession
planning:
- Pension
programs
- Infrastructure
Long-term
motivation programs
- For managers
- For workers
- Develop
- Train
- Improvement of
amenities
(toilets,
bathrooms,
canteens)
HR focus is based on:
Open communications and trust
Fair relations with employees, feedback from employees
Fact-based decision taking
Flexibility – competitiveness achievement
Profit sharing with all the employees
4
Principles and Priorities
Employees’ expectations from the Company
Company’ expectations from employees
Safe and comfortable work environment
Work quality
Care and trust
Discipline
Fair performance assessment,
Efficiency
appreciation
Compliance with the labor laws
Guaranteed competitive salary, stable
Compliance with law
Treat the company assets as your
own
payments and regular increases
Long term social / pension programs
Loyalty to the Company. Improvement of the Company’s image.
5
Work Environment Index, 6 months 2011 actual
2010 Actual
2011 Minimum
2011 Target
6M 2011 Actual
Worst
Step-by-step transition from worst to best – enhancing work
environment
Best
Financial Results: 2007-2010 (actual) & 2011 (forecast)
2007
(actual)
Revenue, RUR bln
Revenue per
employee per month,
RUR thous
EBITDA, RUR bln
EBITDA margin, %
Net profit (loss),
RUR bln
Net profit (loss)
margin, %
Debt / EBITDA
2008
(actual)
2009
(actual)
2010
(actual)
2011
(forecast)
152.7
143.1
65.8
96.7
133.0
112
106
75
140
185
16.5
(2.0)
(3.2)
9.3
13.2
10.8%
negative
negative
9.7%
9.9%
7.3
(30.5)
(10.7)
2.1
3.6
4.8%
negative
negative
2.2%
2.7%
not applicable not applicable
4.6
3.2
1.7
7
GAZ Group Strategic Objectives
GAZ Group main target is to:
Stay the leader in Russia in three segments
LCV & LDT
Buses
AWD Trucks
8
Strategic Decisions and Initiatives
Concentrate the whole production at 5 basic production sites:
N. Novgorod, Pavlovo, Likino, Yaroslavl and Miass;
Go out SV business (link to 530 engine with SV Division products);
End of production of a passenger car under own brand name;
Utilize spare production facilities for contracted manufacturing
of cars and light commercial vehicles (in N.Novgorod) and trucks
(JV with FAW);
Establish an entity to manage non-core and unutilized assets
9
Strategic Decisions and Initiatives
Powertrain and Autocomponents Divisions should focus their
effort on:
• supporting LCV & PC Division, BUS Division, TRUCK Division as its
key customers, in achieving their short- and long-term targets
(making max use of in-house component and power train
production);
• improving the in-house components quality up to automotive
standards (contract manufacturing);
• consolidating raw part production (castings, forging, tools and
tooling)
• utilizing spare facilities for other customers,
• using the possibility of arranging contracted assembly for the
supply of units and components;
10
Updating the Portfolio of GAZ Group
LCV
GAZelle Business
add. options, 4х4
GAZelle Business (February)
Buses
Trucks
PAZ 320412
AWD Trucks
Е-13, Е-26 (new style – flat nose cab)
GAZelle Cummins
LiAZ 5256 &
LiAZ-GolAZ 5256
Cummins
14-seat Bus
GAZelle (LPG)
Chassis Cab (April)
GAZelle (LPG)
Double Cab
Frame bus
GAZelle Diesel (July)
LiAZ -5292, LiAZ -6213 with
restyled interior & exterior
GoLAZ 5251
Е-33 segment HDT
PAZ-4234 Cummins
PAZ-3205, PAZ-4234 interior
restyling
GAZelle Next
Upgraded Valdai
YMZ engine installation
Valdai, Cummins engine
(September)
2010
GAZ 3309/33-08
With YMZ engine
2011
Autocomponents
2010
2011
2010
Power Train
Passenger Cars
Passenger Car
production and
contract
manufacturing for
OEMs
Wheels
2011
YMZ 650 for URAL
Trucks,
Emission levels in
compliance with rules
9602
YMZ 650
Euro- 4
YMZ 530
Frame
Exhaust System for
GAZelle-Business
2.8l Petrol Engine
Euro-4 for LCV
Upgraded Rear Axle for
GAZelle-Business
2010
2011
2010
2011
2010
2011
11
GAZ Group Competitors Today
LCV
Trucks
Buses
UAZ
16%
Ducato
10%
Crafter & T5
5%
Transit
5%
Hyundai
8%
KAMAZ
40%
Nefaz
3%
MAZ
11%
Bogdan
3%
KrAZ
1%
12
GAZ Group Product Mix
Agriculture Vehicle
LCV
8,5т GVW
LPG
Valdai with new cab
AWD
GAZelle Next Chassis Cab SOP 2013, Van & Bus SOP end 2014
5,0т GVW
Buses
Unimax 3204/320412, 52ХХ
Unimax 3-row arrangement
Unimax Cruise, 42XX city/suburb/coach
Unimax 5292/6213
Agro truck (4x4) 12-21 t GVW
New generation platform for the Ministry of Defense
Trucks
On-road truck 18-40 t GVW (partnership with FAW)
AWD Truck Family 17-21 t GVW
Heavy duty AWD Truck 33 t GVW
Multi-purpose trucks for the Ministry of Defense 12-21 t GVW
13
LCV Special Vehicles
LCV
LDT
14
GAZ Group Product Portfolio Structure
LCV+LDT
LCV+LDT
Trucks
Trucks
10%
20%
30%
41%
47%
64%
100%
100%
90%
80%
59%
99%
96%
87%
2011
2012
2013
2014
2015
Buses
Buses
28%
61%
64%
41%
2009
2010
2011
29%
2012
2013
2014
2015
39%
36%
34%
28%
98%
98%
66%
70%
93%
87%
37%
36%
26%
30%
36%
20%
2012
2013
2014
2015
64%
100%
41%
31%
2009
27%
Power
Power Train
Train
68%
100%
8%
45%
10%
2010
12%
35%
53%
36%
2009
20%
2010
2011
34%
30%
2012
7%
13%
2013
2014
New
New Products
Products
2015
Updated
Updated Products
Products
2009
2010
Existing
Existing Products
Products
33%
2011
36%
15
Contract Manufacturing Projects
LCV
MB Sprinter
9,4
15,9
19,3
22,3
25,5
27,2
28,7
29,0
Chevrolet Aveo
28,4
32,7
32,5
29,7
13,3
15,9
18,8
20,8
22,4
2,0
42,4
46,8
50,3
51,5
42,1
43,2
21,7
CAR
Skoda Yeti
0,3
6,1
Skoda Octavia
17,4
38,7
53,2
VW Jetta
30,2
33,0
39,6
16
Skoda Manufacturing
17
Top New Projects of GAZ Group
Total Investment, bln. Rub (CAPEX)
5
4,9
4
3,7
3
2
1,9
1
1,1
0,7
GAZelle Next (CC,
Van &Bus)
VW
FAW
Unimax
Daimler (w/o
paintshop)
0,3
0,3
GAZelle
Business+
GM
Projects are chosen proceeding from a payback period and strategic importance for
development of GAZ Group.
18
Conclusion
We will continue to invest in our people
We will continue to focus on improving quality. improving
financial efficiency. sales growth and new product launches
We will continue to work and support our best suppliers
We will focus on LCV. Bus and Truck business
We will use opportunities of contact manufacturing to
upgrade quality of our products and modernize equipment
We will continue to offer products with best TCO and to
provide best service to our customers
BUT HAVE A LOT OF WORK IN FRONT OF US
19