OREANDA-NEWS. July 8, 2009. The annual general KAMAZ shareholders’ meeting was held in Naberezhnye Chelny.

The results of KAMAZ activities in 2008 were considered at the meeting. In particular, the annual account and accounting report of KAMAZ Inc. were approved, new members of the Board of Directors and the Auditing Committee of KAMAZ Inc. were elected, new versions of the company’s internal documents were approved, decisions about liability insurance of the members of the Board of Directors, Management and Director General of KAMAZ Inc. and about approving interesting deals were made. The shareholders’ meeting voted for the decision of the KAMAZ Board of Directors about not paying dividends of 2008, but sending the whole gained profit to the emergency fund and for the company’s investment activity.

Sergey Kogoghin, Director General of KAMAZ Inc., made a speech at the meeting. He noted that the global economic recession affected the segment of production goods including heavy trucks most tangibly. In 2008 KAMAZ realized 47.5 thousand trucks in all which is by 9.8% less than in 2007. The consolidated proceeds of the KAMAZ group grew by 2% in comparison with 2007 and made up 116 billion roubles. The company managed to finish the year with a net profit to the tune of 2.8 billion roubles. Its market share was 28%. However, despite the objective economic grievances, KAMAZ remained the leader on the truck market in Russia and continued developing on foreign outlets where its sales made 24% of the total truck sales volume.

Sergey Kogoghin said, “From the point of view of technical development, in 2008 KAMAZ took a big step forward. The company started producing vehicles satisfying the requirements of Euro-3 ecological standards in January 2008. It is very important to continue investing in the technical development of products in the future.”

Director General also noted that in December 2008 Daimler AG (Germany) had acquired 10% of KAMAZ shares which had triggered the two auto producers’ new mutually beneficial strategic partnership. This is Daimler’s cutting-edge technologies accessible to KAMAZ, and an opportunity for Daimler to promote its products on the Russian market which was and remains one of the largest in Europe.

After the meeting a press conference with all members of the KAMAZ Board of Directors was held for the Russian, Tatarstan and Naberezhnye Chelny mass media.

Sergey Kogoghin, Director General of KAMAZ Inc:

— As to the projection for 2010, I would name it neither optimistic nor pessimistic, it is real. I think in 2010 there won’t be considerable changes on the Russian market which is the main, basic one for us. Probably the sales volume will still be the same, 20-25 thousand vehicles – this will make more than 50%. Frankly speaking, to achieve the result of 80-85% is unreal for KAMAZ. But we will do everything in order that our company may remain the leader on this market as before.

Sergey Chemezov, Director General of Rostekhnologii State Corporation:

— As regards promotion of KAMAZ production on foreign markets, we take an active part in it with the help of Rosoboronexport. A contract for delivery of KAMAZ vehicles to Yemen has come into force, a letter of credit has already been received from a foreign bank. In the current situation this is a great help for the enterprise. We will continue working in this area. As to rendering help for the company in Russia, we also do everything. For example, we have contacts with the Ministry of Defense. But not only Rosoboronexport or Rostekhnologii work in this area. I would make special mention of KAMAZ General Director’s very active participation in this process.

Rustam Minnikhanov, Prime-Minister of the Government of the Republic of Tatarstan:

— It must be admitted that sometimes we unreasonably underestimate our potential. The scientific and technical potential of KAMAZ satisfies all world requirements. The company pays a very serious attention to innovations therefore our partner is Daimler, company number one in the world. If we were insolvent we wouldn’t have this partnership. I’m sure that KAMAZ has great prospects and it will “shot”. Also KAMAZ doesn’t stop a program for modernization of engine, cab, gearbox production. I’m completely confident in the company’s prospects.

Hubertus Troska, Executive Vice-President, Head of Mercedes-Benz Trucks (Europe/Latin America), Daimler AG:

— In fact, the crisis affected all automobile markets of the world, Daimler markets are not an exception, and we observe the situation which is on the Russian market everywhere. A 50% market drop on the border of 2008 and 2009 is a fact typical for all world markets, unfortunately.

In my opinion, under conditions of the crisis KAMAZ management is rather successful, and the Russian Government supports KAMAZ. Our view is that KAMAZ and Daimler became partners for a long time, for a long-term outlook. As is known, we are the largest automobile producer in the world and are successfully represented in various world regions. Unfortunately we are not so successful in Russia as we would like to be. But I’m sure that the crisis will end and Russia will become one of the largest automobile markets in the world.

Our goal is to secure a more powerful position of Mercedes-Benz in Russia and to lend KAMAZ necessary support so that it may become more powerful and successful. Communicative contacts are good, and I gained the impression that the managers of our two companies – Daimler and KAMAZ – understand problems and common objectives.

Since last December we have been working at several projects jointly. I can tell about three of them more specifically. The first one is purchases of details at KAMAZ. Daimler considers which forgings and casts to purchase, in particular, seven details are already chosen. The material and quality of these details are checked, and in the nearest future KAMAZ will start deliveries to Daimler. As we have got plants in all world regions, we purchase material practically from everywhere. Another task is to form suppliers’ competitive basis and its development. We have got a concrete project how we can ensure access to world suppliers for KAMAZ. The first employees of KAMAZ already visited Daimler where they were trained in purchasing issues. The third area is development of the Production system and personnel training in up-to-date methods of production management.