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Continue leadership positions on the commercial vehicle market

Continue leadership positions on the commercial vehicle market. Bo Inge Andersson President & CEO, GAZ Group. August 2010. GAZ GROUP PRODUCT STRATEGY. Buses. Light commercial vehicles. Power train. Trucks. Passenger cars. New family of low floor buses

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Continue leadership positions on the commercial vehicle market

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  1. Continue leadership positions on the commercial vehicle market Bo Inge AnderssonPresident & CEO, GAZ Group August 2010

  2. GAZ GROUP PRODUCT STRATEGY Buses Light commercial vehicles Power train Trucks Passenger cars • New family of low floor buses • Alternative fuels and environmental solutions • Bus modular concept development and implementation across all bus segments • Modernization and upgrades to improve performance of gasoline engine, • LPG and CNG options • Light diesel solution • Euro 4/5/6 • Medium diesel development with AVL • Heavy diesel, Renault license • Current Gazelle improvements • Updated power train • Diesel engines • Alternative fuels • Process & product quality continuous improvement • New Gazelle development • Off road truck product line upgrade and development • New Truck portfolio to offer medium duty trucks, road trucks and off-road vehicles with different GVW • GAZ to utilize modern manufacturing capability and open capacity • Ongoing discussions with the major global players • Opportunities for components localization

  3. MAIN FOCUS AREAS Quality improvements, warranty claim reduction, reduce cost of ownership Improve operational efficiency Sales increase for all GAZ Group Divisions New products

  4. LCV QUALITY IMPROVEMENT Quality performance results July 2009 – July 2010 (12 month) Warranty incidents per thousand vehicles – 2 months in service(2MIS IPTV ) reduction by37% Supplier incidents per thousand vehicles (IPTV) reduction by46% MFG direct run loss – average number of defects per vehicle in production( DRL) reduction by35%

  5. IMPROVE OPERATIONAL PERFOMANCE Projects Implementation of direct pull system: Sales  production  purchasing Facilities consolidation and optimization By 42% Facilities consolidationand optimization In-process inventory reduction By 60% Results(12 months) Consolidation and creation of processes/material flows next to assembly lines Extra equipment elimination By 46% Work stations standardization Revenue per employee increase By 47% Cost reduction

  6. Diesel CNG LPG GAZelle CONTINOUS IMPROVEMENT GAZelle 4,2t • Reduced cost of ownership • Extended product line • Extended engine offering • Retention of warranty on all vehicle’ elements • Use of the cheapest fuel for today • Payload increased to 2 tons • Extended product line 4х4 GAZelle Business + • Extended product line in 4х4 segment • Improved frame rigidity for long vehicle • Improved body stiffness for metal van versions • Exhaust system with improved corrosion protection • Immobilizer • Reduced cost of ownership • Reduced fuel consumption • Expansion of product line • Extended engine service life • Improved gearbox • Reduced cost of ownership • Product line extension • Warranty retained for engine and fuel system GAZelle Business • Improved reliability • Improved consumer properties SOP: 4.02.2010 SOP: 10.04.2010 December 2010 February 2011 February 2011 March 2011 July 2010

  7. GAZELLE-BUSINESS IMPROVEMENTS and CUSTOMERS VOICES Fuel Efficiency 10%-Petrol;20% - LPG Cost of Ownership Safety Warranty • Steering • Braking (brake response) • Suspension • Heated mirrors • 3-point seat belts • ABS ( 4x4 & BUS) • Energy-absorbing steering column 80 000 km Vehicle 100 000 kmsystems 20% Алексей Зарипов, Пермский край, предприниматель: «Эта машина помогла мне стать хозяином своей жизни. … пока со мной мой автомобиль, мне не страшно оказаться без работы, я сама себе начальник, я спокоен за себя и свою семью». Андрей Логинов, ген. Директор ООО «Автотен»: окупаются быстрее и дешевле, учитывают специфику именно российского бизнеса перевозок, чего нет у иномарок. .. достойной замены мы на сегодняшний день не видим. Вячеслав Лымарь, Ижевск, предприниматель: «Моя «Газель» окупила себя за 9 месяцев. Опять же – не имею возможности простаивать месяц. А для «Газели», если что, запчасти всегда под рукой.

  8. NEW BUS PRODUCT and 2010 LAUNCHES PAZ-3204-12 length: 8,5 м. engine: CUMMINS (YMZ) transmission: ZF axle: KAAZ GOLAZ 5251 Intercity engine: YMZ transmission: ZF axle: RABA LIAZ-5292 City, low floor Hybrid (EURO-6) PAZ-3204 length: 7,6 м. engine: CUMMINS (YMZ) transmission: ZF axle: KAAZ

  9. HEAVY DUTY TRUCKS PRODUCT DEVELOPMENT and 2010 LAUNCHES URAL Е33 – Е40 URAL Е13 – Е26 Off road vehicles for commercial applications: major facelift, conventional and flat nose cab Heavy duty off road vehicles for commercial applications with GVW 33-40t, flat nose cab .

  10. MAJOR POWER TRAIN 2010 LAUNCHES Heavy diesel YMZ-650 6 cylinders 11 L Renault license Medium diesel YMZ-530 4 & 6 cylinders 4.4 L/6.6 L Cooperation with AVL

  11. SUMMARY GAZ Group is aimed at customer satisfaction GAZ Group set the direction for improvements in quality and cost of ownership of its products GAZ Group constantly strives to improve and update its diversified commercial product vehicle portfolio GAZ Group will be successful by having a collaborative relationship with its dealers, suppliers and customers GAZ Group will continue to be the market leader in commercial vehicles in Russia

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