KAMAZ-Marco LLC report

1. KAMAZ-Marco LLC report

Presentation for Board of Directors
By Ilshat Singatullin
KAMAZ-Marco LLC, General Director
March, 2013

2. Project status

KAMAZ-Marco LLC was established at January 30, 2012
State registration finished at February 24, 2012
First bus was produced at December 08, 2012
Official start of production is December 20, 2012
Until March March 06, 2013
KAMAZ supplied 75 chassis
Marcopolo supplied 66 bus body KD kits
Sold
buses
1
Tests
2
Ready buses for
sale
Dealers
NEFAZ
6
9
42
PDI
8
Assembly
Components stock
Chassis
SKD
33
24
16
1 unit were sold to Neftekamsk hockey club TOROS
2 bus are being tested in Bashkortostan and Tatarstan
2

3. Market situation

PAZ-3204
GAZ Group
seats – 17/
total – 53
Bogdan А201
Bogdan, Ukraine
BRAVIS
Isuzu A092
Cherkassy, Ukraine
seats – 21/
total – 60
seats – 24/total – 48
seats – 25/total – 52
seats – 20/total – 50
Cummins ISF3.8s3168 E-4
168 hp
Hyundai D4GA E-4
140 hp
ISUZU 4HК1-XS E-4
178 hp
Cummins ISB4.5-185B E4
185 hp
ZF S5-42 5-speed
Hyundai 5-speed
MZZ6U 6-speed
ZF 6S700 6-speed
axles KAAZ, 19,5”
axles Hyundai, 17,5”
axles ISUZU, 17,5”
axles Mercedes, 17,5”
spring
suspension
front – spring,
rear –
pneumatic
front – spring,
rear – pneumatic
front – spring,
rear – pneumatic
front – spring,
rear – pneumatic
1 970 000 rub.
2 318 000 rub.
2 200 000 rub.
2 225 000 rub.
2 497 000 rub.
BRAVIS is most expensive city bus. Price is 25% higher than cheapest PAZ-3204 model and 10-12%
higher than buses with foreign chassis
3

4. Product development

Basic preconditions for strategy review
Current KAMAZ chassis is too powerful for city bus (185 hp, 6 speed)
KAMAZ finished 2 prototypes of chassis with 168 hp engine and 5-speed gearbox
More than 50% of requests for proposal from potential clients are about shuttle/intercity buses
Improvement of current city bus body will need additional homologation procedures
Fast growing demand for gas buses
School bus market is big enough but it’s a low-cost market
KAMAZ-3297 ISB
KAMAZ-3297 ISB/ISF
Improvement of city bus body
(I class)
Development and homologation
of intercity bus (II class)
• Some seats layouts
• R66 rules tests
• Additional seat on driver platform
• Special layout
• Permission for using as shuttle bus
• 1 passenger door
Development and homologation
of gas bus
• Can be realized in cooperation
with KAMAZ partner - RARITEK
• Air conditioning system etc
Future model range vision
City bus
Cummins ISF EGR
Gas engine
Shuttle bus
Cummins ISF SCR / ISB
Intercity bus
Cummins ISB
4

5. KAMAZ-Marco financial results for 1 year

KAMAZ-Marco income statement, 03.2012-02.2013 [‘000 USD]
Comments
RAS
IAS
Net revenue
67
67
Cost of goods sold
58
58
Operation margin
16
16
(458)
(698)
18
18
(424)
(664)
Fixed costs
Non-operation income and expenses
Net income before taxes
Difference in fixed costs:
homologation costs (in IAS
standards must be included to
fixed costs immediately)
1 bus was sold in February
KAMAZ-Marco accumulated cash-flow structure, 03.2012-02.2013 [‘000 USD]
1880
72
230
150
283
458
405
280
5

6. KAMAZ-Marco budget for 2013

Bus sales [units]
Comments
Total 229 units
1
3
15
10
25
0 Feb Mar Apr May Jun
Jan
25
Jul
30
30
Aug Sep
30
Oct
30
30
Nov Dec
Net revenue [‘000 USD]
Total 14,3 mln. USD
67
185
0 Feb Mar
Jan
615
924
1539 1570
1884 1884 1884 1884 1884
Total sales volume – 229 units
Net sales price – 61,500 USD. Sales price
increase 2% for 2nd half of 2013
Spare parts sales – 1% of buses revenue
Deep localization of product, price of parts
to be supplied from China decrease from
15,500 USD to 10,000 USD
Apr May Jun
Jul
Aug Sep
Oct
Nov Dec
because of decrease of logistic costs
Margin [‘000 USD]
Total 2,4 mln. USD
10
16
0 Feb Mar
Jan
64
97
268
193 223
Apr May Jun
Jul
390 390 390 390
Aug Sep
Oct
Nov Dec
291 291 291 291
Total 1,3 mln. USD
5
Feb
-51
Mar
-76
Main price estimations:
KAMAZ chassis – 795,000 rubles
(~25,600 USD)
EBIT [‘000 USD]
Jan
-73
Margin growth from 10% to 21%, first of all
-28
Apr
99
May Jun
130 169
Jul
Aug Sep
Oct
NEFAZ services – same prices
MAC – same prices
Nov Dec
6

7. KAMAZ-Marco cash-flow for 2013

Operating cash-flow [‘000 USD]
2,223 2,223 2,223 2,223 2,223
1,816 1,853
726
0
-195
-195
79
14
-65
218
23
-194
116
Comments
Current debt to suppliers:
• KAMAZ – 2,1 mln. USD
• MAC – 1,1 mln. USD
• NEFAZ – 180,000 USD
Investment cash-flow structure:
• Localization (equipment &
preproduction: plastic, ABS, glass,
wires etc) – 120,000 USD
• Homologation (ISB) – 52,000 USD
• Spare parts stock – 38,000 USD
• Marketing and PR – 40,000 USD
• Others – 28,000 USD
Homologation of buses on ISF chassis will
need additional financing 100,000 USD
1,090
168
-35
-54
-51
21
21
86
-43
-610
Net cash flow
Inflow
Outflow
-1,125
-1,649
-1,907
-2,275-2,202-2,202-2,138-2,266
Investments [‘000 USD]
79
8
4
123
74
38
8
Jan Feb Mar
Apr May Jun
Jul
6
19
Aug Sep
6
Oct
6
6
Nov Dec
Cash on hand [‘000 USD]
62
72
87
Jan Feb Mar
124
15
60
Apr May Jun
7
Jul
-32
Aug Sep
-90 -87
Oct
-72
Nov Dec
-41
7