Annual Press Conference May 04, 2007 - Home | Ashok … Press Conference May 04, 2007 Annual Press Conference May 04, 2007 MD / AL / Annual Press Conference / 04/05/2007 Ashok LeylandAshok

Annual Press Conference

May 04, 2007

Annual Press Conference

May 04, 2007

MD / AL / Annual Press Conference / 04/05/2007

Ashok Leyland’s 2006-07 Score Card Ashok Leyland’s 2006-07 Score Card


Sales Touches All-time HighSales Touches All-time High

Sales up 34.8%, touch an all-time high of 83,094 vehicles

2 9 6 7 3

3 6 4 4 4

4 8 6 5 45 4 7 4 0

6 1 6 5 5

8 3 0 9 4

' 0 1 - 0 2 ' 0 2 - 0 3 ' 0 3 - 0 4 ' 0 4 - 0 5 ' 0 5 - 0 6 ' 0 6 - 0 7


Second Year Of MS GainSecond Year Of MS Gain

With 76,736 numbers, domestic M&HCV volume at an new peak

Out-performed the market : TIV up 33%; AL up 37%Market share up 0.8%, to 28%

Second consecutive year of outperforming a competitive, expanding market


Revenue BoostersRevenue Boosters

Exports grew by 23.5% over 05-06 sales with a sale of 6,025 vehiclesEngines

Volumes grew 23%

Leyparts saw record sales at Rs. 3288 million, growing 26%Fully-built solutions added nearly Rs. 2300 million to the top line


The FinancialsThe Financials

Rs million

1.5

3.38

1 323.87

4 412.86

6 045.06

1 505.74

7 681.56

53.32

7 026.85

11 365.41

83 047.17

2006-07

25.00

23.36

-

34.82

33.65

19.50

38.01

(67.65)

30.11

41.11

37.20

% growth

1.2Dividend per share (Rs)

2.74Basic earnings per share (Rs)

1 221.59Paid up equity share capital (face value per share Re 1 each)

3 273.20Net Profit

4 523.00PBT

1 260.06Depreciation

5 565.91Gross Profit (PBDT)

164.53Financial expenses

5 400.70Gross operating margin

8 054.51Less Excise duty

60 531.08Gross Sales / income from operations

2005-06


Composition Of SalesComposition Of Sales

(30.2)5 4687 838Spares incl Defence(Rs million)

22.68 9047 261Engines

34.883 09461 655Total vehicles

23.56 0254 879Exports

82.9918502Defence

35.376 15156 274Total

52.364 14442 106Goods

(15.3)12 00714 168 Passenger

Domestic Civilian

% Inc (Dec)

2006-072005-06


Performance Highlights – 5 YearsPerformance Highlights – 5 Years

2.74

0.2

18

5.3

31.0

05-06

1.63

0.5

21

5.2

20.9

03-04

2.28

0.3

14

5.7

26.2

04-05

3.39

0.3

17

5.54

31.3

06-07

1.01EPS (In Rs.)

0.8Debt : Equity

26Debtors (Days)

3.7Inventory Turns (Times)

13.4R O C E (%)

02-03


Asset Turns (Times)Asset Turns (Times)

1 . 8 1

2 . 4 1 2 . 5 32 . 7 6

3 . 3 9

' 0 2 - 0 3 ' 0 3 - 0 4 ' 0 4 - 0 5 ' 0 5 - 0 6 ' 0 6 - 0 7


Inventory Turns (Times)Inventory Turns (Times)

5 . 5 45 . 2 65 . 6 6

5 . 2 1

3 . 6 5

' 0 2 - 0 3 ' 0 3 - 0 4 ' 0 4 - 0 5 ' 0 5 - 0 6 ' 0 6 - 0 7


Current Asset Turns (Times)Current Asset Turns (Times)

4 . 5 4

4 . 0 53 . 8 5

3 . 4 8

2 . 5 6

' 0 2 - 0 3 ' 0 3 - 0 4 ' 0 4 - 0 5 ' 0 5 - 0 6 ' 0 6 - 0 7


Behind The ResultsBehind The Results

1. Market2. Value Adding Products and Services3. Capacity Expansion4. Improved Efficiencies 5. Improving People Efficiencies


Propelled By The EconomyPropelled By The Economy

The economy remained buoyant Freight generating sectors registered robust growthInfrastructure development continued to gain momentum

NHAI project completion : 26% NHDP Phase V – 6,500 Kms included

Some worry lines because of hardening interest rates, rising fuel & freight prices and other input costs

Market

11


CV Industry On OverdriveCV Industry On Overdrive

Growth rates remained healthy at over 33%The potential of demand for replacements high with over 35% of existing fleet over 10 years old and stricter emission norms in the offingVolume growth helped by enforcement of rated payload regime.

Market

11


M&HCV TIV: Passenger and GoodsM&HCV TIV: Passenger and Goods

Sixth year of consecutive growth

Market

11

Pass

Goods

Source: SIAM

1 6 8 1 4

7 3 1 8 5

1 9 9 7 0

9 5 7 4 1

2 4 5 9 1

1 3 6 8 0 4

2 5 6 3 8

1 7 2 8 6 8

2 8 1 2 7

1 7 9 3 4 5

2 8 6 9 2

2 4 6 8 5 7

' 0 1 - 0 2 ' 0 2 - 0 3 ' 0 3 - 0 4 ' 0 4 - 0 5 ' 0 5 - 0 6 ' 0 6 - 0 7


Value Adding Products & Services Value Adding Products & Services

Increasingly actualising product philosophyLed by customer insight Application-specific product configurationsMaximise customer profitability

Supported by an array of after market service offerings to maximise revenue and returns from vehicles

22Value AddingProducts &Services


Fuel-efficient Engine DevelopmentFuel-efficient Engine Development

Euro 2 compliant engine developed on the popular H6 cylinder platformUsing a Bosch In-line pump which is less sensitive to fuel quality, less expensive to maintain and hence preferred by the marketExcellent fuel consumptionDesigned & developed in-house in five months flat

Value AddingProducts &Services

22


Products LaunchedProducts Launched

Comet 1611 : In the haulage segment, meeting the need for a fully-built, fuel-efficient vehicle with a longer loading span for carrying voluminous loads (parcels, petroleum, couriers)2516 : 2514 Parcel Carrier in the MAV (25T GVW) segment meeting the need for a longer loading span (28.5’) required to carry voluminous loadsViking SLF BSIII : A bus with a front engine yet a low floor with one step less to climb for easy exit and entry.Ecomet 9122516T HD: Fitted with a 8-speed gear box with a longer life of more than 3,000 hrs, for arduous duty cycles 115 WB (4x2) tipper : shorter turning circle of 6.01 m for greater maneuverability in quarries and mining terrains and construction sites


Fully Built VehiclesFully Built Vehicles22

30% Increase in Fully Built Volumes over the last year

74755742TOTAL

11371210On chassis products on MAV / Haulage / ICV / LCV

57133929Tippers

330603Passenger

2950Tractor Trailers

2006-072005-06Product segment

Value AddingProducts &Services


After-market SupportAfter-market Support

2,010138Work bays

15910Dealership outlets

14928Authorized Service Centres

CurrentAdded

Better availability of spares through enlarged network and improved logistics



Driver TrainingDriver Training

33,000 drivers trained at our Driver Training Centres in Namakkal and Burari8,000 trained at 5 Service Training CentresFirst franchisee service training center at BhubaneswarA certification course, ALSERVE, for technicians and supervisors to be launchedMoU with the Haryana Govt. for driver training centre at Khaital



Customer ConnectA CRM programme, which is basically a

Mission 30-51 enabler. At present, have a database of over 2 lakh customers.

Vishwas

Annual Maintenance Contract that increases vehicle up time

ALTRUX

Marketing quality pre-owned trucks that will help customers improve residual value of their assets


Other InitiativesOther Initiatives


Capacity ExpansionCapacity Expansion

Capacity enhanced to over 84,000 vehiclesMostly through productivity / efficiency improvements, with incremental investmentsFlexibility to meet market demand fluctuations SCOT guidance for vendor capacity realisation

33Capacity Expansion


Improved EfficienciesImproved Efficiencies

Vehicle production went up 28.4%, to an all time high of 83,549 nos.12,000 employees à 83,558 vehicles (06-07)16,000 employees à 43,000 vehicles (96-97)Cost increase from volatile prices of commodities like nickel, rubber, copper, etc. partially mitigated through value engineering and sourcing initiatives

44Improved Efficiencies


Increased ProductivityIncreased Productivity

Output per employee

8 . 5

3 . 54 . 9

5 . 8

7 . 1

' 0 2 - 0 3 ' 0 3 - 0 4 ' 0 4 - 0 5 ' 0 5 - 0 6 ' 0 6 - 0 7

44Improved Efficiencies


Improving People Efficiencies Improving People Efficiencies

Mission Gemba : A movement to create value on the shop floor through attitudinal alignment and technical de-bottle-necking which has resulted in remarkable through-put improvements across the companyProject YE : To bring about organizational transformation through the power of youthImprove : 1800 plus projects implemented by employee teams Innovations : 7 Patents filed

55Improving People Efficiencies


AL’s Plans Going ForwardAL’s Plans Going Forward


Increasing CapacitiesIncreasing Capacities

UttaranchalIntegrated manufacturing plantState-of-the-art technology being sourced from across the globeLayouts being made for lean manufacturing and automationProduction start up : phase 1 by 2nd half of 2008-09; phase 2 by March 2010


Going GlobalGoing Global

AVIA ASHOK LEYLAND MOTORSAVIA ASHOK LEYLAND MOTORS

Ras Al KhaimahProjectRas Al KhaimahProject

South AfricaSouth Africa


Spreading The Global FootprintSpreading The Global Footprint

AVIAOrganisation rebuilding, alternate sourcing and value engineering programme for cost reduction on course Operations stabilised, currently at 1400 annual output Dealership development in existing markets with new forays planned

RAKIA An integrated Chassis and Bus assembly plant with an investment of Rs. 38 crores and capacity to produce 1000 buses /annumLand development work for Phase -1 completedManufacturing activities to commence in Mar 2008

South AfricaVehicle assembly 1200 p.a. Will cater to North African market

Planned acquisition of DTE (Texas) a building block to creating international presence in auto and allied domains


New Products on the AnvilNew Products on the Anvil

LuxuraNew branded busULE 390 mm BS3 (rear mounted)AVIONAVION SLFAVION ULF49212518 mining tipper3135 tipperThe G90 cabAVIA cab


The Share-holding PatternThe Share-holding Pattern

F I I s1 4 %

B a n k s & M F s7 %

R e s i d e n t I n d i v i d u a l s /

T r u s t / C l e a r i n g m e m b e r s

1 2 %

B o d y c o r p o r a t e2 %

F i s , I n s u r a n c e C o , S t a t e G o v t ,

G o v t C o m p a n i e s

1 3 %

L R L I H5 2 %


Thank You

Annual Press Conference May 04, 2007 - Home | Ashok … Press Conference May 04, 2007 Annual Press Conference May 04, 2007 MD / AL / Annual Press Conference / 04/05/2007 Ashok LeylandAshok

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