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GENERAL INFORMATION

KEY FACTS

KAMAZ Group of Companies is the largest automobile corporation in the Russian Federation. KAMAZ PTC is one of the world's top 20 heavy duty truck producers.

The company is part of Rostec State Corporation.

February 16th 1976 witnessed the first truck produced on the banks of the Kama River roll off the assembly line of the automobile plant.

On February 15th 2012, КАМАZ produced its 2-millionth truck.

By early February 2017, the KAMAZ automobile plant had built more than 2 million 208 thousand finished trucks since the production launch.

The charter capital of KAMAZ comprises 35.36 bn rubles. The largest blocks of stock are owned by the government and commercial banks.

One single production base of KAMAZ PTC Group of Organizations incorporates the overall truck manufacturing cycle, beginning from design, manufacture, assembly of vehicles and components and ending up with sales of finished products and service backup.

The process flow group of companies includes several major plants involved in truck making business. The following operations are located on the industrial site in Naberezhnye Chelny: Foundry and Forge Plant, Engine Plant, Press and Stamping Plant, Automobile Plant, Repair and Tool Making Plant, Master Industrial Park. Major subsidiaries situated outside the limits of the City of Naberezhnye Chelny are NEFAZ PTC and TZA PTC (Republic of Bashkortostan).

KAMAZ Group of Organizations, today, comprises more than 89 organizations based in Russia, CIS and the far abroad countries.

By now, divisions and subsidiaries of KAMAZ PTC have employed nearly 36 000 persons.

In 2016, KAMAZ PTC sold 34.5 thous. trucks, which is by 21% more than in 2015, including 28.3 thous. trucks sold on the domestic market (a year-over-year growth is 25%) and 6.2 thous. trucks on foreign markets (+6%).

The share of KAMAZ PTC on the Russian market of trucks with GVW over 14 tonnes (registered vehicles are meant) made up 56% at the end of 2016. For comparison, it was lower than 51% in December 2015. 

TRENDS IN SALES OF 8-40 TONNE GVW KAMAZ TRUCKS (THOUSAND UNITS)

КАМАZ has been the absolute leader in heavy duty truck sales in such markets as Kazakhstan, Azerbaijan, Turkmenistan and a number of other countries. 

PRODUCTS

KAMAZ PTC produces a broad spectrum of commercial vehicles: trucks (more than 60 models, in excess of 1500 configurations, right hand drive vehicles), trailers, buses, engines, power packs and various tools. КАМАZ has historically been positioning itself in the 14-40 tonne GVW truck market. In recent years, the product range has broadened as a result of adding new models and vehicle families – fr om city delivery trucks to increased payload trucks to be used as part of road trains with GCW of up to 120 tonnes.

In 2016 KAMAZ developed and brought over 80 new vehicle sets and chassis to market, including several models of new-generation vehicles – Dump Trucks 6580, 65801, 65802, Transport Vehicles 65206 and 65208. Vehicles with KAMAZ components and a Daimler cabin – Dump Trucks KAMAZ-6520 Luxe and KAMAZ-65201 Luxe – also entered the market. These are affordable high-payload vehicles with modern comfortable cabins.

QUALITY

Designing competitive products in terms of quality benchmarks which meet customers’ requirements and expectations is the pivotal aim of KAMAZ PTC in the quality area and key to the Company’s and its employees’ financial well-being and sustainability.

The tool which enables KAMAZ PTC to achieve the goals the Company has committed itself to in the area of quality is the quality management system.

The quality management system of KAMAZ PTC has been recognized to conform to the requirements of ISO 9001:2008 international standard, GOST ISO 9001-2011 national standard and GOST RV 0015-002-2012 industry standard.

In 2011, КАМАZ was awarded the 5-star level in the European Competition EFQM per Recognized Excellence model, which is confirmed by the certificate; the Company has been put on the European Register of successful organizations.

In 2013, KAMAZ PTC won the 9th International Quality Tournament among the Central and Eastern European countries.

In 2015, KAMAZ PTC was awarded the diploma as one of contestants struggling for the Russian Government Quality Award.      

ASSEMBLY OPERATIONS

KAMAZ PTC has been running assembly operations in Vietnam, Kazakhstan, Pakistan, India. Assembly is carried out using components shipped from KAMAZ. Programs are underway to localize production of CKD kit parts and components in the countries wh ere assembly operations are located. To add to this, Euro 5 KAMAZ vehicles are assembled in Europe — at the assembly enterprise of Autobagi, Litva.

CUSTOMER BASE

Our customers are companies from all the branches of the economy wh ere trucks are used, companies which are in the trucking business, regional and city truck fleets in Russia and countries of the Company’s historical presence, natural monopolies, major corporate clients, government run enterprises and institutions, divisions of law enforcement and defense ministries and agencies. Major users of KAMAZ products in this country are GASPROM, LUKOIL, SUEK, ТNK and others.

MARKETS

KAMAZ PTC exports vehicles, CKD (complete knocked-down) kits and spare parts to more than 40 countries of the CIS, Southeast Asia, Middle East, Africa, Eastern Europe, Latin America. KAMAZ vehicles are assembled of CKD at enterprises in Iran and Vietnam.

The 2016 Business Plan for deliveries of vehicles and CKD kits to the countries of Southeastern Asia was overfulfilled. Vietnam became the key market of the region as well as the main export market of KAMAZ PTC in 2016. Thus, over 90% of all vehicles delivered to this region were sold in Vietnam. Although the model line-up of KAMAZ vehicles delivered to the country is rather vast, KAMAZ-6540 and KAMAZ-65115 dump trucks enjoy the highest demand in Vietnam (about 60% of the overall delivery volume).   

DEALER AND SERVICE NETWORK

Sales and service network of KAMAZ PTC covers all the regions of Russia and the CIS, as well as the historical foreign markets. During 2016, KAMAZ continued to actively expand its sales and service network in Russia and beyond its borders. As at 01.11.2016, the dealer network in the Russian Federation numbers 185 dealerships, out of which there are 71 3S status dealers (truck sales, spare parts sales, service support), 31 2S status dealers in vehicles (truck sales and service support), 21 2S status dealers in spare parts (spare parts sales and service support), 44 1S status dealers (service support only), 18 distributors in spare parts sales.

Underlying the service system are the principles of uniform style and maximum approximation of aftermarket services to the customer. The service network deployment has been proceeding along the two lines: construction of new service centers and reconstruction of existing service stations. In the philosophy of its dealer relations, the Company swears by a special internal document called Manual for Dealers of KAMAZ PTC which lays down all the requirements as well as terms and conditions the dealers must live up to. Certification of dealerships and service stations, pursuant to the Manual for Dealers of KAMAZ PTC, allows uniform service format and better recognition of authorized dealers by customers to be ensured, the requirements relating to organization of the dealer’s key business processes to be formalized.

LEASING

KAMAZ Leasing Company Inc. is one of Russia’s largest leasing companies, a 100%-owned subsidiary of KAMAZ PTC which specializes in selling KAMAZ vehicles and special purpose vehicles based on KAMAZ chassis as part of the Leasing from the Manufacturer program.

КАМАZ-LEASING is a three time winner of the Company of the Year Prize, including, among others, the prize in the nomination For Financial Sustainability and Stability in the Leasing Services Market; it ranks 1st among Tatarstan's leasing companies based on the year 2013 results according to the Dk.ru website; it has top AAA level of client orientedness (client focus) (according to the results of the analysis made by the New Marketing Solutions Company); it is the holder of the international award European Quality (2007, Oxford, U.K.); it was awarded the The Most Dynamic Leasing Company of the Year Diploma based on the results of the Russia’s Financial Elite Competition (2006).

Today, KAMAZ-LEASING Group of Companies holds 15% market share of the KAMAZ vehicle leasing market, while its market share of truck leasing business amounts to 6.2%, which is 1.5 times the previous year’s number.

The Company’s level of development, its service support and package of services have been given their due by both colleagues and experts. Based on the year 2011, the Company ranked 12-th in the Russian leasing market in terms of new business volume among all the leasing companies of the Russian Federation.

KAMAZ Leasing Company OJSC has been constantly implementing new schemes for customer financing, designed for very different customers, from private entrepreneurs to large corporations, by offering the most secure, convenient and beneficial methods of dealing with their transportation needs.

KAMAZ Leasing Company OJSC, in 2010 and 2011, was recognized to be winner of the Company of the Year Prize in the nomination For Financial Sustainability and Stability in the Leasing Services Market. The Company combines high cost-effectiveness, sustainable position in the market, intensive development, while orienting itself to international standards of financial transparency and informational openness.

JOINT VENTURE COMPANIES

On November 23-rd 2005, ZF KAMA Limited Liability Company, a joint venture company was formed by ZF Friedrichshafen AG and KAMAZ PTC. That was the first production facility established by KAMAZ with participation of a foreign firm and manufacturing products under its brand name. It was also the first example wh ere industrial production operation to manufacture world class high technology products was set up in Russia. The JV annually produces 27 000 transmissions. An agreement was signed to ramp up the JV’s production capacity from 9 thousand to 40 thousand transmissions a year.

In January 2006, documents on the setting-up of CUMMINS KAMA Joint Venture Company were signed between Cummins, Inc., a US company and KAMAZ to produce Series B engines for the Russian market. The company’s equity capital is USD 20 mn., while the participants’ stakes are 50:50. The company produces Euro-3 and Euro-4 electronically controlled engines, in conformity with the schedule for introduction of emission standards in Russia.

In December 2007, КАМАZ signed the agreement with Knorr-Bremse Systeme für Nutzfahrzeuge GmbH on the establishment in Naberezhnye Chelny of the joint venture company KNORR-BREMSE KAMA to produce brake systems with the parties’ equal ownership interests in the equity capital.

On March 10-th 2008, incorporation documents on the joint venture company were signed to produce cylinder and piston related parts between Federal Mogul Corporation (U.S.A.) and KAMAZ with the parties’ equal ownership interests in the equity capital with the company name being Federal Mogul Naberezhnye Chelny.

In December 2008, the German concern Daimler AG acquired 10% of KAMAZ equity capital, which marked the beginning of a new win-win strategic partnership between the two vehicle makers. As a result of such strategic partnership, in 2009, KAMAZ and Daimler AG signed agreements on the setting-up of two joint enterprises: Fuso KAMAZ Trucks Rus to produce and sell light commercial vehicles Fuso Canter in Russia and Mercedes-Benz Trucks Vostok to produce and sell Mercedes-Benz Actros and Axor heavy duty trucks. In February 2010, Daimler AG increased its stake in the equity capital of KAMAZ up to 11%. Besides, the European Bank for Reconstruction and Development also acquired another 4% of the Russian company’s stock in favor of the German partner.

In September 2011, KAMAZ and Marcopolo S.A. signed the agreement on the setting-up of the joint venture company to produce and sell Marcopolo buses. The main aim of the joint venture company established on parity basis by KAMAZ and Marcopolo is to produce and sell Marcopolo buses on KAMAZ cab and chassis units compliant with Euro-4 and conformant to the up-to-date passenger transportation requirements in the Russian Federation and the CIS countries. The buses are made at the manufacturing facilities of NEFAZ OJSC, Neftekamsk, Republic of Bashkortostan, a subsidiary of KAMAZ PTC. The joint venture company is planning on producing 3 thousand buses a year, while ramping up to project capacity in 2016.

КАМАZ-MASTER

The pilots of KAMAZ Master team constitute an outstanding example of technical and sporting skills. The crews of racers from Naberezhnye Chelny have won multiple victories in international rallies and super marathons. Fourteen times the company sponsored KAMAZ Master team has won the informal world championship among truck producers, the Dakar International Rally Marathon. KAMAZ confidently converts its winning Dakar track record into success of its business.

ADVANTAGES OF THE PRODUCTS MADE BY KAMAZ PTC

Easy to service, reliable, high quality trucks with low operating costs at good prices;

Meeting any customer requirement;

Extensive and vast sales footprint: KAMAZ vehicles operate under any road and weather conditions, in the areas of the Far North, tropics, desert areas and high mountains;

Ramified service network in Russia and the CIS countries, provision of warranty service with the vehicle mileage of up to 75 thousand km.

All this enables the Company to perfect KAMAZ vehicles and upgrade them to the level of world industry leaders. In the domestic market, KAMAZ PTC has been waging an active, well-balanced and independent pricing policy, with primary focus on the market demand and optimal price to quality ratio.

PROSPECTS OF KAMAZ PTC

The key avenues followed by KAMAZ PTC in its development are mapped out in the Strategic Development Program of KAMAZ Until the Year 2020

KAMAZ PTC has never cooperated, is not cooperating now and will not cooperate in the future with persons, companies, countries which have UN sanctions imposed on them.

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