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KAMAZ Today

Basic Facts

KAMAZ Group is the largest automobile corporation of the Russian Federation. OJSC KAMAZ ranks 13th among the world's top heavy truck manufacturers.

On August 16, 1969 the first stone was laid. The construction of the Kama Automobile Plant was started.

On February 16, 1976 the first KAMAZ truck rolled off the main assembly line of the automobile plant.

In 1988, the main assembly line of the automobile plant produced the one millionth vehicle since the beginning of production.

In February 2008, the 2.5-millionth engine came off the mother assembly line of KAMAZ-Diesel Inc.

On February 15, 2012 KAMAZ produced the two millionth vehicle.

Since the launch of production, more than 2 million 109 thousand vehicles have been assembled at the Automobile Plant of KAMAZ by early March 2014.

Since the launch of production, over 2 million 784 thousand engines and power units have been manufactured by early March 2014.

The authorized capital of KAMAZ makes up RUB 35.36 billion. The largest shareholdings belong to the state and commercial banks.

The single production complex of KAMAZ Group embraces the whole technological cycle of truck production from development, production, assembly of vehicles and auto components to marketing of finished products and service maintenance.

The group of the process chain includes 12 large automobile plants. The following enterprises are located in Naberezhnye Chelny: Metallurgical Complex (a foundry and a forge plant), Engine Plant, Press and Stamping Plant, Automobile Plant, Repair Instrument Plant, Industial Park Master. The largest associated companies outside Naberezhnye Chelny are JSC Neftekamsk Automobile Plant and OAO Tuimazinskiy Zavod Avtobetonovozov (the Republic of Bashkortostan), Trailer KAMAZ Inc. (Stavropol).

To date, KAMAZ Group includes over 150 organizations located in Russia, the CIS and the far abroad.

As of 31 December 2013, 40,700 people worked in departments and associated companies of OJSC KAMAZ.

In all, the company produced more than 46,185 vehicle sets, over 43.2 thousand engines and power units for 2013.

The sales volume was 42,763 vehicles in 2013.

8-40t GVW KAMAZ Vehicle Sales (in thousand units)

KAMAZ became the absolute leader in the class of heavy trucks in Ukraine, Kazakhstan, Azerbaijan, Turkmenistan, and a number of other countries. During 2013 the company produced spare parts to the tune of almost RUB 15 billion and diversification products for the sum of more than RUB 10 billion.

Production

OJSC KAMAZ produces a wide range of vehicles: trucks (over 40 models, more than 1,500 kits, right-hand vehicles), trailers, buses, tractors, engines, power units, and different tools. KAMAZ traditionally positions itself on the market of trucks of 14-40 t GVW. For the last years, the range of the companys production has considerably increased due to new vehicle models and lines - from urban delivery trucks to vehicles with increased carrying capacity for operation in combinations with road trains of up to 120 t GVW.

Previously, technical specifications of vehicles were improved and their customer appeal was enhanced both due to the use of automobile components made by the leading producers, and the implementation of KAMAZs own original developments. All these measures enabled the company to create the so-called model range 2010 on which the companys production program will be based till 2014 when KAMAZ plans to create a brand new model range of its vehicles. In 2013 as Russia adopted technical regulations compliant with Euro-4 international standards, KAMAZ vehicles are equipped with engines meeting this environmental standard.

In 2013, OJSC KAMAZ performed the main tasks to implement its product policy and enhance the consumer appeal of manufactured vehicles:

  • finished the development of all-wheel-drive vehicles with Cummins EURO 4 engines;
  • launched the development of KAMAZ vehicles with EURO 5 engines for the domestic market;
  • completed the development of the KAMAZ-53082 medium-tonnage truck;
  • developed and manufactured the 10x4 KAMAZ-7330 crane chassis with a payload of 40 tonnes;
  • finished the development of the 6x4 KAMAZ-6360 high-sided prime mover with a GVW of 26.5 tonnes;
  • assembled pilot vehicles of the next generation at the automobile plant;
  • prepared production design documentation for T2642 and T2640 trucks.

Quality

High-quality products meeting customers requirements and expectations are the main goal of OJSC KAMAZs quality assurance activity and a source of financial stability of the company and its employees.

OJSC KAMAZs quality management system is a means to achieve the companys quality assurance targets.

The quality management system of OJSC KAMAZ complies with ISO 9001:2008, GOST R ISO 9001-2011 and GOST RV 0015-002-2012 standards.

In 2006 OJSC KAMAZ received the RF Government Quality Award; in 2010 it was entered in the Register of Gold Certificates of Voluntary Certification System Voennyi Registr (Military Register). In 2011 OJSC KAMAZ achieved Recognized for Excellence certification at 5-star level and entered the Register of Europes best performing organizations.

Assembly Enterprises

OJSC KAMAZ has got assembly enterprises in Vietnam, Kazakhstan, Pakistan, India. Vehicles are fully assembled of components delivered from KAMAZ. The company implements programs to localize the production of details and units of vehicles assembly sets in the countries where assembly enterprises are located.

Clients

Our clients are enterprises of all industries where trucks are used, companies busy with cargo transportation, regional and urban fleets of Russia and other countries, natural monopolies, large corporate clients, public enterprises and offices, departments of governmental military and policing branches. The largest customers of OJSC KAMAZ in Russia are the Russian Ministry of Defense, EMERCOM, GAZPROM, LUKOIL, SUEK, TNK, etc.

Outlets

OJSC KAMAZ has great achievements not only due to high quality and technical level of production, but also due to an effective strategy on the market. We contact with more than 600 enterprises of Russia, the CIS countries and the far abroad.

The sale geography of KAMAZ vehicles and spare parts is increasing thanks to mastering of new markets: Saudi Arabia, India, Chile, Nicaragua. OJSC KAMAZ became more active on the markets of Sudan, Afghanistan, Angola, resumed deliveries to Venezuela and Panama. In 2013, KAMAZ delivered vehicles and spare parts for them to 61 countries. The export share in the total sales volume of KAMAZ vehicles made 11.8%. The export volume formed 5,700 KAMAZ vehicles and vehicle sets. OJSC KAMAZ won in the competition The Best Exporter of the Russian Federation thirteen times (in 1999-2011).

Dealer and Service Network

The marketing and service network of OJSC KAMAZ embraces all Russian regions and the CIS, and also traditional outlets. In 2013, KAMAZ continued actively developing its commodity distribution and service network in Russia and overseas. As of January 1, 2014, the dealer network in the Russian Federation numbers 220 members: 74 3S dealers (sales of vehicles, spare parts and service), 44 2S vehicle dealers (sales of vehicles and service), 28 2S spare part dealers (sales of spare parts and service), 59 1S dealers (only service), 15 distributors selling spare parts.

The technical maintenance system is based on the principles of a united style and maximal approximation of services to customers. The service network is developing in two directions building of new service centers and reconstruction of existing ones. When working with dealers, the company follows a special document The Guide for Dealers of OJSC KAMAZ which stipulates requirements for them. Certification of dealer and service centers in accordance with The Guide for Dealers of OJSC KAMAZ enables to ensure a single service format and authorized dealership recognition, formalize requirements for the organization of the dealers key business processes.

Leasing

Leasing Company KAMAZ Inc. is one of the largest Russian companies, a wholly owned subsidiary of OJSC KAMAZ. It provides clients with ready-made KAMAZ vehicles and special equipment based on KAMAZ chassis under leasing agreements.

The development level of the company, its service and service packages were appreciated both by its colleagues and experts. In 2011, the company ranked 12th on the Russian leasing market by volume of new business among all leasing companies of the Russian Federation.

Leasing Company KAMAZ Inc. is constantly introducing new schemes of client financing intended for various clients from private entrepreneurs to large corporations, offering them the best solutions.

Leasing Company KAMAZ Inc. was named a laureate of the National Award Company of the Year in 2010 and 2011 in the category For Financial Reliability and Stability on the Market of Leasing Services. The company combines high profitability, steady positions on the market, rapid development, focusing on international standards of financial and information transparency.

Joint Ventures

On November 23, 2005, Zahnrad Fabrik (Germany) and OJSC KAMAZ opened a joint enterprise ZF-KAMA OOO. This is the first production facility created by KAMAZ jointly with a foreign firm for manufacture of products under its trade mark. And it is the first example of world-class high-quality production organized in Russia. The JV annually produces 5,000 gearboxes. An agreement was signed to increase production volumes of the JV from 9 to 89 thousand gearboxes a year.

In January 2006, OJSC KAMAZ and Cummins Inc. (USA) signed documents to establish Cummins KAMA Joint Venture producing Series B engines for the Russian market. The authorized capital of the enterprise is $20 million in which the shares of the founders are divided equally. The enterprise will produce Euro-3 and Euro-4 motors with electrical control, compliant with ecological standards implemented in Russia.

In December 2007, OJSC KAMAZ signed an agreement with Knorr-Bremse Systeme für Nutzfahrzeuge GmbH to establish Knorr-Bremse KAMA Joint Venture producing brake assemblies in Naberezhnye Chelny with equal shares of the parties in the authorized capital.

On March 10, 2008, Federal Mogul Corporation (USA) and OJSC KAMAZ signed the incorporation documents of a joint enterprise producing cylinder-piston assemblies with equal shares of the parties in the authorized capital Federal Mogul Naberezhnye Chelny.

In December 2008, Daimler AG (Germany) obtained 10% of the authorized capital of OJSC KAMAZ, which was the start of the two automobile producers new mutually advantageous partnership. As a result of this strategic partnership, in 2009 OJSC KAMAZ and Daimler AG signed contracts to establish two joint ventures Fuso KAMAZ Trucks Rus to produce and sell Fuso Canter light-duty trucks 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 share in the share capital of OJSC KAMAZ to 11%. Besides, the European Bank for Reconstruction and Development also obtained 4% of the Russian companys shares for the benefit of the German partner.

In September 2011, OJSC KAMAZ and Marcopolo SA signed a joint venture agreement to produce and sell Marcopolo buses. The main purpose of the joint venture set up on a parity basis by OJSC KAMAZ and Marcopolo is to manufacture and sell Marcopolo buses based on KAMAZ chassis complying with Euro 4 and satisfying modern requirements for passenger transportation in the Russian Federation and CIS countries. Buses will be produced at the facilities of a subsidiary of OJSC KAMAZ - JSC Neftekamsk Automobile Plant - in Neftekamsk, the Republic of Bashkortostan. The joint venture plans to produce 3,000 buses per year and attain its full capacity in 2016.

Military Equipment

Delivery of our production to the RF Ministry of Defense is another promising area of the companys activity. In February 2006, OJSC KAMAZ received licenses from the Federal Agency of Industry of the RF Ministry of Industry and Energy providing the rights for development, production, repair and utilization of defense equipment.

About 50 thousand vehicles on KAMAZ chassis with excellent specifications form the most numerous group in the vehicle fleet of the Armed Forces of the Russian Federation. KAMAZ vehicles excel the Russian and foreign analogues in their tactical and technical characteristics. Over 350 models of armament and military equipment are mounted on KAMAZ chassis. KAMAZ vehicles are transport facilities of subdivisions and logistic units.

OJSC KAMAZ developed the unified line of army vehicles of the Mustang family with special running abilities and mounting means against the order of the Ministry of Defence. Constituent part unification of vehicles of the family (to 85%) and vehicles operated for commercial purposes (to 97%) forms the basis for the countrys mobilization resources.

OJSC KAMAZ is currently developing army vehicles of the new generation. By the Decision of the RF Government, OJSC KAMAZ is one of strategically important enterprises serving for the countrys national security.

KAMAZ-master

The racers of the KAMAZ-master team demonstrate a shining example of technical skills and sportsmanship. The crews of the racing drivers from Naberezhnye Chelny repeatedly won international rallies and super marathons. The KAMAZ-master team won the informal world championship among truck producers - the Dakar international rally marathon - twelve times. KAMAZ confidently converts its sports victories at Dakar races in its business success.

Advantages of KAMAZ Production

Easy-to-maintain and reliable trucks of high quality with low operation costs and at most competitive prices;

Customers all needs are satisfied;

Wide marketing geography KAMAZ vehicles operate under any road and climatic conditions: in the Far North and in tropics, in deserts and high mountains;

Developed service network in Russia and the CIS, warranty kilometrage of vehicles is up to 75 thousand km.

All these advantages facilitate KAMAZ to improve its production along with the leaders of the world machine building. OJSC KAMAZ pursues an active, balanced and independent price policy on the domestic market first of all focusing on market requirements and optimum price-quality relationship.

Prospects of OJSC KAMAZ

Realities of the post-crisis economic space and strengthening of cooperation with KAMAZ's strategic partner, Daimler, made it necessary to approve The Strategic Development Program of OJSC KAMAZ for the Period Until the Year 2020 in December 2010.

A strategic vision of the companys development: KAMAZ is the national industry leader and a major international player. KAMAZ is an adaptive, effective, global company.

  • Adaptability is an ability of the company to change business parameters depending on market conditions, quickly and flexibly managing the volumes of production, production facilities, the number of employees.
  • Efficiency is ensuring of balanced economic and financial indicators of profitability, investment activity and an internal rate of return no less than industry average indicators;
  • Globality is strategic partnerships with the worlds leaders (including manufacturers of components), focusing on the key markets, organization of large-scale productions abroad.

Taking into account macro-tendencies and industry trends, KAMAZ is developing a program of actions in the following spheres:

  • Integration with Daimler, strategic partnerships for components, developing the customer base;
  • Boosting export supplies and setting up assembly facilities abroad;
  • Launching into production Euro 4, 5 trucks and developing a range of CNG trucks;
  • Developing and launching into production the new model line of trucks which have fundamentally different technical characteristics and consumer qualities (Practical High-Tech);
  • Expanding the product range, upgrading the dealer network, developing the financial service.

Taking into account all shareholders objectives and interests is the basic premise of the Strategic Development Program.

Russia considers KAMAZ as its industry shaping enterprise and a major exporter of commercial vehicles, as it was formulated in The RF Automobile Industry Development Strategy until 2020; and a major shareholder in the company Daimler considers KAMAZ to be a strong regional player.

As a result of an impact from these factors, there are the following strategic priorities of the development of KAMAZ:

  • key market is Russia;
  • maintaining the dominant role in the CIS countries;
  • presence in the attractive markets of Euroasia, Africa and South America;
  • positioning itself in the medium price segment;
  • developing the integration with Daimler.

The companys strategic business development benchmarks for 2020:

  • truck sales volumes not less than 80 thousand units;
  • % of foreign sales 25%;
  • revenues at least RUB 350 billion;
  • EBIT at least RUB 31.4 billion;
  • EBITDA, as % of revenue at least 14%;
  • investments RUB 62 billion.

Implementation of the Strategic Development Program of OJSC KAMAZ is ensured by coordinated performance of the business units strategies and the key functional strategies, the system of planning and implementing the annual business plans, the introduction of KPI at all the management levels.

We have no, didnt have and are not going to have any contacts with persons or entities designated under UN sanctions regimes.



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