OREANDA-NEWS. February 27, 2008. At the corporate meeting concerning the results of 2007 the leaders of the largest Russian enterprises of KAMAZ Inc. Group considered the main achievements, prospects of the company and problems it will have to solve.

Opening the meeting Sergey Kogoghin, Director General of KAMAZ Inc., said that the company got good results and ensured an average 20% growth in all areas. And now the enterprise is of interest to investors and partners. KAMAZ is among the top ten Russian companies which have the highest growth level of market capitalization in the course of year – 73%.

52671 trucks were produced and realized, a business plan is exceeded by 1454 trucks on the Russian market and by 415 – on the external one. In December an average daily production of vehicles formed 216 units. In 2007 export reached a record figure in KAMAZ history – 13,4 thousand vehicles or 25,5% of the total production volume. It gives the company an opportunity to pretend to the title of the best Russian exporter in mechanical engineering for the 9th time in succession.

Financial forecasts of activities were also appreciably surpassed. And the KAMAZ Group of Organizations for the first time in the modern history came close to the 100-billionth mark (in roubles) as related to marketable product yield and shipment. The sale brought 12,4 billion roubles, the net gain reached 3 billion 453 million roubles, and profitability – 12,5%.

With the increasing demand on the market, said Sergey Kogoghin, the company actually feels capacity bottlenecks as related to the yield and performance standards. Therefore investments in development will become record in 2008 in the whole history of production activities of KAMAZ and will make up 7,5 billion roubles. All plants of the group have experience of realization of large-scale investment projects. KAMAZ-Dealer became the leader among them. The Frame & Stamping Plant also managed to renew the capacities in the conditions of steadily increasing workload.

In January 2007 KAMAZ produced the 1,8-millionth vehicle. And now the two millionth level doesn’t seem inaccessible. It can be achieved at the end of 2009 or at the beginning of 2010. According to Yury Klochkov, First Deputy Director General – CEO of KAMAZ Inc., already in 2008 the factory capacity will be increased to output of no less than 75 thousand vehicles a year. The company management realizes that it’s necessary to reach the production of 100 thousand vehicles in the next years. It must happen without the job growth.

Last year KAMAZ created two assemblies more – in Iran and Pakistan. There was reconsidered the work of two joint ventures of KAMAZ and its foreign partners. As a result, the yearly output of ZF KAMA will be increased from 5 to 89 thousand gear boxes, and at Cummins Kama there will start the second phase of development of the enterprise. There was signed an agreement with the company Knorr Bremse on creation of the joint venture producing brake assemblies. The plans of forming the modern base of auto components production are being realized.

In accordance with the business plan for 2008, it’s planned to produce over 65 thousand trucks (with account of modernized ones). The sales in Russia will exceed 46 thousand vehicles, beyond its borders – 16 thousand ones. There is a task to reach the sales proceeds volume of 127 billion rubles.

KAMAZ has every reason to count on the fact that with stabilization of the market and freedom of choice its competitive advantages will become more apparent. This is a variety of the line, the best quality-price ratio, service rendered on the whole territory of the country, the most perfect packages of leasing products in combination with Trade-In and service maintenance of equipment, etc.

In 2007 there were set large-scale tasks of the company’s development. Among them there are tasks to prepare for production of Euro-3 engines since the beginning of 2008; to create lines of competitive vehicles of a new generation; to create production capacities for output of 250 auto sets a day; to realize investment projects of the further development of ZF Kama and Cummins Kama; to create the generation of engines equipped with the Common Rail system jointly with the Bosch company. According to Irek Gumerov, Deputy Director General – Director of Development of KAMAz Inc., the tasks are on the whole fulfilled. There were certified Euro-3 engines and vehicles equipped with them. In 2008 it’s planned to increase production capacities for output of 300 auto sets a day.

In 2007 KAMAZ concluded 13 agreements with administrations and business communities of the Russian regions. The sales grew practically in all segments and of all kinds of vehicles. Almost one and a half thousand kinds of special machinery on KAMAZ chassis make it possible for customers to make their vehicle fleet on the basis of one trade mark, thereby cutting down running costs and repair expenses. During the year there were shipped almost 19,5 thousand chassis for special vehicles. The number of partners in manufacturing of special equipment for them grew from 130 to 250. Among them there are many foreign manufacturers and their Russian dealers.

Financing a customer who leases KAMAZ vehicles the company offers several service packages for all categories of partners – of big, medium-sized and small businesses, corporate clients and physical bodies. Thus, KAMAZ obtains another prime advantage on the market.

Oleg Yershov, Deputy Director General of KAMAZ Leasing Company, informed the participants of the meeting that for 2007, the fifth working year of the leasing company, over 760 lease agreements were signed for the sum of more than 9 billion roubles. With the plan of 3750 units there were leased 4412 units of machinery – trucks, buses and trailing machinery. The share of KAMAZ Leasing Company – the leader in leasing of trucks in Russia – reached 12%, and the share of leasing in realization of KAMAZ itself – 9,3%. KAMAZ obtained 11,1 billion roubles of monetary funds in sum and netted 440,5 million roubles.

In 2007 clients were served by 6 branches in the Russian regions. 3 of them have already broken even. Large contracts were concluded with the Amur region and Kazan. 4 subsidiaries more will be opened in 2008, and the number of offices will reach 20. The company will lease almost 8,2 thousand units of KAMAZ machinery. The amount of contracts will exceed 20 billion roubles. The activity of LC obtained recognition both in the fatherland and abroad. The international prize “For European quality in the sphere of financial services” and the title of the laureate of the national award in the sphere of business in the nomination “The Best Leasing Company” – are the most prominent trophies among those obtained in 2007.

Tuimazy Concrete Delivery Truck Works is the youngest and most developing daughter company in 2007. The absolute leader of its market in Russia achieved a 44% growth of marketable products volumes in comparison with 2006.

Avtopritsep-KAMAZ headed by Yevgeny Pismenny achieved a 15% growth of volumes and increased the net wealth of the enterprise by 77 million roubles during the year. And it plans to increase them this year by 67 million roubles more.

It was really a year of intense work and impressive achievements. But the main records of KAMAZ are in the future.