Ashok leyland ltd

Annual General Meeting

July 19, 2011

2010-11 –A watershed year

MD / AL / Annual General Meeting / 19/07/11

Ashok Leyland records

highest domestic and exports turnover!


Production hits all-time high at

95,337 vehicles!


Highest number

of products introduced!


Fastest ramp-up

at the Pantnagarplant!

Highest increase

in customer touch points!

The story behind this performance


A record year for the industry …

TIV grew by 31%

183,495

245,058

322,788

-50,000

100,000

150,000

200,000

250,000

300,000

350,000

2008 -09 2009 -10 2010 -11


• Highest ever sales by AL –83,100 M&HCV –surpassed

2006-07 record

• 45% year-on-year growth

• Regained market share with a 2.4% point increase, to

26%

… and for Ashok Leyland

47,093

57,139

83,100

26%

23%

26%

0%

5%

10%

15%

20%

25%

30%

-20,000

40,000

60,000

80,000

100,000

2008 -09 2009 -10 2010 -11

AL MS


All-round market share gains

Gained market share

in all segments

and in all regions

Retained leadership position in the passenger

segment: both private operators and STUs


Exports set new record

6812

5979

10306

08-09 09-10 10-11

Exports volume growth

• Volume growth despite Middle East collapse

• Phenomenal growth in Sri Lanka

• First orders received from the Ukraine


Win-win partnerships across Africa

Kick-started a BRT system in Nigeria

Providing technology for fleet management

This successful model to be rolled out across Africa


Spares business grew aggressively …

573

642

712

08-09 09-10 10-11

Rs. Cr


… as did the Defence business

248

200

363

08-09 09-10 10-11

Rs. Cr


Power Solutions Business

transforming its business model

• Telecom dropped from ~Rs. 243 croreto

near zero.

• Grew outside telecom space -94%

increase in non-telecom DG sales

• 100 and 160 kVA DGs launched -benchmarks in this range with 15%

superior fuel efficiency

• Introduced LeypowerDGs >500 kVA

• 24% growth in harvester engine

sales, resulting in record sales of 4,378

nos

165

221

320

243 132

11

08-09 09-10 10-11

Growth in Power Solutions

Rs. Cr

408

353

331


Product highlights

Highest R&D spend to Turnover

746 products launched in one year (Normally 200/year)

Apart from emissions-compliant products, an overall revamp of all

platforms in terms of performance, durability and fuel efficiency

Product fuel efficiency improved across the board

Fully built solutions launched in trucks and buses


Product highlights: Several firsts...

World‟s first in-line fuel pump engine

compliant to Euro 3 norms

First Common Rail Diesel engine in a

commercial vehicle in India

State-of-the-art SCR after-treatment from

AL‟s own subsidiary: Albonair


U-Truck –Ashok Leyland‟s flagship

truck platform

Innovative, future-ready platform for tippers and

tractors

India‟s first 8x4 medium duty tipper introduced

Over 1,100 U-Trucks already on the road

Flagship U-4923 declared “CV of the year”

CV of the Year


New passenger products …

New thrust for Tarmac coaches

Fresh introductions of School Buses on the Stag and Lynx platforms


Celebrating technology @ CWG

Ashok Leyland’s HYBUS, India’s first CNG Hybrid Plug-In Bus, was

used to move VIPs and media at PragatiMaidanduring the CWG.


• 25% increase of service bays in one year

• 60 touch points added in 2010-11, mainly in North India

• More touch points in North than South

• At present, 360 customer touch points and growing

15% growth in network…


Capacity expansion to meet

increasing demands in India

Fastest ramp-up at the Pantnagarplant Machinery

Recruited over 1,500 executives and associates

Production ramp up –achieved 60% of capacity by Mar 11

Unique initiative “BLESSING” to up-skill manpower

Substantial induction of women into the workforce


Capacity expansion abroad

RasAl Khaimahfacility went on stream

Initial capacity of 2,000 vehicles per annum

Work force of 230 and growing

The Financials


Unbroken track record of

profitability maintained

Rs Lakhs

2010-11 2009-10 %

growth

Net Sales / income from operations 1,111,771 724,471 53.5

Gross operating margin 121,756 76,284 59.6

Financial expenses 16,366 8,113 101.7

Net Profit 63,130 42,367 49.0


Performance Highlights –3 Years

08-09 09-10 10-11

R O C E (%) 8.6 13.6 18.3

Inventory Turns

(Times)

3.5 3.5 4.2

Debtors (Days) 73 25 25

Debt : Equity 0.9 0.9 1.0

EPS (In Rs.) 1.43 3.18 4.75


We are a 63 year young company,

and getting even younger…

>95% of sales from new products

80% of products manufactured on machines

that are less than 5 years old

55% of executives are less than 35;

50% of the network is less than 5 years old and

25% of our bays less than a year old

We have invested as much money in the last 4

years as we have over the first 60 years


DOST JOB ONE on July 22

nd

–

to roll out by end-August


The launch of LEYLAND DEERE


Leverage synergies with Optare

The 26% stake in Optare plc gives the Company

access to frontier bus building technology

Dual marketing strategy

To drive deeper into first hemisphere markets

To introduce buses of international quality to India and

India-like markets


Strengthen presence in new

markets

Consolidate presence in the SAARC markets

Target markets of potential in Asia, Africa and CIS

Develop products that meet specific needs of these

markets


Quarter 1 -Financial Performance

RsLakhs

Qtr 1 Qtr 1

YOY %

growth

2011-12 2010-11 Q1

Net Sales / income from operations 249551 100.0 234798 100.0 6.3

Consumption of raw materials 179811 72.1 173460 73.9 3.7

Employee cost 24974 10.0 20250 8.6 23.3

Other expenditure 20304 8.1 17610 7.5 15.3

Gross operating margin 24462 9.8 23478 10.0 4.2

Financial expenses 5335 2.1 3162 1.3 68.7

Other income 412 0.2 535 0.2 (23.0)

Gross Profit (PBDT) 19539 7.8 20851 8.9 (6.3)

Depreciation 8466 3.4 6147 2.6 37.7

Profit from ord activities before tax 11073 4.4 14704 6.3 (24.7)

Net Profit 8625 3.5 12264 5.2 (29.7)

% of Net

Sales

% of Net

Sales


Highlights of Q1 performance

Revenue up despite volume drop due to pricing

Contained material cost –1.8% to sales

revenue lower than previous year

EBIDTA (Gross Operating Margin) marginally

better than previous year at Rs. 245 crores

Higher working capital resulted in higher

Financial Expenses


Investor Relations


MD / AL / AGM / 27/07/2010

Value-added services for

share-holders

Annual share-holders satisfaction survey

Conducted for 10 years consecutively

Responses are summarisedand reviewed by

the Share-holder/Investor Grievance Committee

of the Board

Investor Guide

Sent to every share-holder every year since

1998

Annual Reports

Disclosures beyond mandatory requirements


Sharing profits

Percentage

Year


Our family of shareholders

Year


Chosen one of the

100 Best companies to work for!

“For inspiring trust … for instilling pride”

The only manufacturing company in the list

500 companies across sectors participated

Conducted by Great Places to Work Institute in India and

The Economic Times

Top honours for Ashok Leyland


Innovative work to create a great workplace

Attitudinal transformation, operational excellence, continual improvements

Top honours for Ashok Leyland

Adjudged as a „Unique Company Initiative

Thank You