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10 th CLSA India Forum 2007 Asahi India Glass Ltd. Corporate Presentation 16 th November, 2007

10 th CLSA India Forum 2007 Asahi India Glass Ltd. Corporate Presentation 16 th November, 2007. Index. Corporate Profile India Story AIS Core Markets Business Operations - Auto Glass - Float Glass - Glass Solutions Opportunities & Plans

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10 th CLSA India Forum 2007 Asahi India Glass Ltd. Corporate Presentation 16 th November, 2007

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  1. 10th CLSA India Forum 2007 Asahi India Glass Ltd. Corporate Presentation 16th November, 2007

  2. Index • Corporate Profile • India Story • AIS Core Markets • Business Operations - Auto Glass - Float Glass - Glass Solutions • Opportunities & Plans • Strategy & Key Focus Areas • Financial Results

  3. Corporate Profile • Largest integrated glass company in India, manufacturing wide range of international quality automotive safety glass, float glass, value added glass like reflective glass, mirror, architectural processed glass and glass products. • Jointly promoted by Labroo family (Sanjay Labroo and his parents, Brij & Kanta Labroo), Asahi Glass Co., Ltd., Japan and Maruti-Suzuki. • Commenced operations and made initial public offer of USD 468,000 in 1987, which largely remains undiluted. Shares are listed at BSE and NSE. • Promoters hold 55.6 % of paid up equity capital of AIS, and the remaining 44.4 % equity is held by public. • AIS has three operating business units : - AIS Auto Glass - AIS Float Glass - AIS Glass Solutions • AIS recorded gross sales & operating profits of USD 224.87 million & USD 41.21 million in FY 07.

  4. Corporate Profile

  5. AIS : 1987-88 TO 2006-07 CAGR Sl. No. ITEM 1987-88 2006-07 26% 1. Gross Sales (US$'s mill.) 2.87 224.87 23% 2. EBITDA (US$'s mill.) 0.69 41.21 25% 3. EBDT (US$'s mill.) 0.42 32.35 4. OPM % (EBIDTA / Net Sales) 34 22 Corporate Profile These figures contain, in brief, the story of AIS’s growth from a supplier of automotive tempered glass to Maruti Udyog (Suzuki) when we began, to the current situation of India’s largest glass company, with profitable growth flowing from all the actions taken since the birth of the organization.

  6. Corporate Profile – Key Initiatives Expanded capacities for automotive safety glass, float glass and architectural processed glass at Chennai, Taloja (Mumbai), Rewari and Roorkee during FY 2004-07, spanning the entire glass value chain.

  7. AIS Operations : Plant Locations • Roorkee: • Float • Glass Solutions • Mirror • Reflective Glass • Auto Glass • Rewari: • Auto Glass • 2. Glass Solutions • Taloja: • Float • Glass Solutions • Chennai: • Auto • 2. Glass Solutions

  8. India Story… 4th Highest GDP in PPP terms 2nd Highest GDP growth 2003-2006 among the top 5 economies one of the fastest growing economies

  9. India – Consumption Driven Growth • Rising Income • level Increasing Consumer spend + • Increasing • consumerism • Largest youth population • Growing literacy rate • Large pool of professionals • and technocrats • Growing • availability of • retail credit AIS Core Markets - Automotive and Real Estate / Construction Sectors among the key beneficiaries

  10. Indian Automotive Industry Government of India SIAM ACMA Automotive Mission Plan 2016 On 29.01.07, the Prime Minister released Automobile Plan 2006 -2016 to give a road map to Indian Automobile Industry Increase turnover to $145 billion by 2016 from $ 35 billion at present Increase export revenue to $ 35 billion by 2016 from $ 4.1 billion at present Provide employment to additional 25 million people by 2016 By 2016, the Automotive sector is expected to contribute 10% of the country’s GDP and 30~35% of the Industry

  11. Automotive Components Industry Automotive Mission Plan 2016 ACMA VISION 20:20:1 Achieve $20 billion in Domestic Sales 20 20:20:1 Achieve $20 billion in Exports Sales 20 VISION 20:20:1 Create 1 million additional Jobs 1

  12. Indian Automotive Industry - Growth Drivers Higher GDP growth India’s huge geographic spread Increasing Road Development, Golden Quadrilateral Increasing disposable income with the service sector Easier finance schemes Replacement of aging four wheelers Graduating from Two wheeler to Four wheeler Increasing dispensable income of rural agri sector Growing Concept of Second Vehicle in Urban Areas Two wheeler story could be repeated in the car segment

  13. “INDIA” – A Base for Compact Cars • Maruti Suzuki : • New car plant to make 250,000 cars per annum (total 800,000 cars/annum) • 10 new Component JVs to support new Diesel Engine Plant. • Hyundai : • Increase capacity to 400,000 cars per annum over next 1 year. • Nissan • Team up with Mahindra & Mahindra and Renault to invest in a $905 million car project in India,capacity to produce 400,000 units in seven years. • Tata Motors : • New plant to manufacture 100K car in West Bengal with an investment of US $ 0.24 Billion. • Toyota : • Target of 200,000 units capacity by 2008. • General Motors : • New Capacity to manufacture GM Spark small car by 2007. • Nissan • Compact SUV

  14. Real Estate – Industry Dynamics & Potential • Market expected to grow at 33 % thru 2005-10 from $ 12 bn to $ 50 bn • Housing : current shortage seen at ~ 19.8 million housing units • 5x increase in office space over next 3-5 years • Over ~ 200 mn sq ft for organized retail by 2010 • Over ~ 50,000 new hotel rooms in the next 5 years Indian Realty – Intact Opportunity • Rising disposable income • Shift from rented to owned house • Easy access to financing • Nuclear families • Retail / IT / ITES / BPO • Improving regulatory framework

  15. Real Estate Boom – Glass Demand • Indian Realty Plans, even assuming a 50% success rate, likely to radically alter business for construction companies and others like cement, steel, glass andincrease the historical 11% p.a. growth rate to much higher levels in glass. • Architectural design for all the upcoming buildings being highly glass-oriented, a massive pipe line for glass demand is building up which will be visible shortly. • Growing keenness to shrink construction time by using new products will further create huge business potential for glass products like window systems. • Drive towards energy conservation and environmental consciousness, through energy conservation building code, green building code and other safety norms, as being planned currently, will push glass and especially processed glass consumption rapidly. • Enormous potential for glass is clearly visible, considering a very low per capita glass consumption in the country, with processed glass constituting only around 7 - 8 % of the total glass consumption, unlike in other countries.

  16. AIS Operations : Auto Glass SBU • Retaining • leadership position • Current market • share of over 80 % • Sole supplier to • almost all the OEs in • India • Best positioned • to meet growing • demand in domestic • and export markets • Largest manufacturer of world class automotive safety glass • Total production capacity of approx. 3 million car sets, with state-of-the-art manufacturing facilities at Rewari and Chennai and Roorkee. • Sole supplier to almost the entire Indian passenger car industry, with current market share of over 80 %. • Significant presence in the after market, with a market share of approx. 50% in terms of value. • Offering full range of automotive safety glass including Laminated Safety Glass, Tempered Glass for side and back lites, Value-added Glass, Defogger Glass, Encapsulated Glass. • Sales made directly to OE customers and through two nation-wide distributors, with 27 depots, to the direct after market, covering the length and breadth of the country. • Customers include Maruti-Suzuki, Hyundai Motors, Tata Motors, Toyota, Honda, Mahindra & Mahindra, Ford, General Motors, Hindustan Motors, Fiat India, Volvo, Eicher, Piaggio, Swaraj Mazda. Auto Glass SBU awarded the Deming Application Prize for 2007 in October, 07

  17. Vehicle Production

  18. Share of business in car segment

  19. Segmentwise Net Sales

  20. AIS Operations : Float Glass SBU • AIS Float Glass, the erstwhile Floatglass India Ltd. (FGI), is the leading manufacturer of international quality float glass. • State-of-the-art manufacturing Plant at Taloja, near Mumbai. Second plant at Roorkee has become operational from January, 2007, increasing capacity from the existing level of 500 TPD to 1200 TPD. • Roorkee Plant has manufacturing facilities for world-class heat reflective glass and mirrors also. • Current market share of approximately 29 % of the Indian float glass market, like to increase to over 35 %, with commissioning of the Roorkee Plant. • Product range includes of float glass of thickness of 2mm – 12mm, with products like clear float glass, tinted (heat-absorbing) float glass, heat reflective glass, mirrors and Glaverbel’s product range. • Country-wide sales & marketing network, comprising over 450 authorized stockists, field sales personnel, zonal offices and area representatives. Turned around performance of the erstwhile Floatglass India Ltd. (FGI) after its take over in FY 2001-02 and successfully integrated it into AIS.

  21. Indian Flat Glass Industry : Demand / Supply (MT / D)

  22. Share of Business – Float & Sheet Glass (Flat Glass)

  23. AIS Float Glass SBU - Sales& Production Quantity

  24. AIS Float Glass SBU - Sales Distribution

  25. AIS Float Glass SBU - Market Breakup

  26. Sales Realization

  27. AIS Operations : Glass Solutions SBU • Glass Solutions • An innovation • in value addition, • offering end-to-end • glass solutions • Solving customer • problems about glass • Enabling customers • to do more with glass • Knowledge leader in • glass • AIS Glass Solutions, set up as a subsidiary of AIS in 2004-05, has emerged as the largest processor in the country, within first year of its operations. • Architectural processing plants located at Taloja (Mumbai), Rewari and Chennai. The 4th plant at Roorkee has become functional from September, 2007. • Product range includes high quality architectural processed glass like AIS Stronglas (tempered glass), AIS Securityglas, AIS Acousticglas (laminated glass) and insulated glass units. • Introducing innovative products like windows, tabletops, partitions, shelves, shower cubicles, etc. • National sales force, comprising 32 sales personnel and over 65 channel partners, is among the most knowledgeable sale force in the country on glass.

  28. AIS Glass Solutions - Sales Trend by Zone

  29. AIS Glass Solutions - Sales Trend by Product

  30. AIS – Opportunities and Plans • AIS’s core markets - automobiles and housing / construction - poised to grow at a CAGR of 10-15 %. • Auto Glass SBU to maintain leadership status in the Indian passenger car industry and grow at a CAGR of 20 %, with projected reduction in SOB from 80 % to 72 % in next few year dictated primarily by OE’s policy of developing two vendors. Growth target to be achieved through higher OE sales, increased penetration in the after market with target market share of over 50 %, and a significant increase in export sales. • AIS’s share in the Indian float glass market to increase significantly to nearly 35 %, with commissioning of the Roorkee plant. • AIS Glass Solutions to further consolidate its leadership position by significantly boosting sales and improving margins through higher value addition and new offerings for products and services. • AIS to grow faster than market, with higher sales growth in value-added products and focus on long term margin improvement and cash generations.

  31. AIS – Strategy & Key Focus Areas • Follow Integrated Glass Strategy and - Captively consume nearly 50 - 60 % of AIS’s total float glass production for value-added auto glass and architectural glass products - De-commoditize the glass business - Improve profitability by capturing end markets and delivering value-added products and services • Improve product mix in domestic markets with a high proportion of innovative, high value-added products and solutions. • Export value added glass to insulate AIS from demand-supply imbalance • Improve operational efficiencies through TQM, TPM and Lean Manufacturing practices across all plants • Build self-sufficiency in process and product development through in-house development to reduce costs and improving development cycle. • Explore and exploit alternative energy sources to reduce energy cost

  32. AIS – Goals • AIS Mid Term Plan, spanning through the five year period from FY 2007 to FY 2011, has set out the following goals : - Top line growth at a CAGR of 20 % - Operating profit of over 25 % - Quality of Japan at Cost of China • This Plan will give us Scale, Decommoditization, Customer Intimacy and Operational Excellence. • It will result in an orbital change for us wherein AIS will transform itself into a multi-location, totally integrated value added glass company with leadership in technology and product range at the lowest cost.

  33. VISION - SEE MORE MISSION - JIKKO AUTOMOTIVE GLASS VALUE CHAIN Automotive glass manufacture (AIS Auto Glass) Allied Products distribution (AIS Adhesives) Auto Glass Fitment Services (WE) Automotive Glass distribution (AIS Map Auto) (Light grey cells indicate our existing spread of activities) Float Glass manufacture (AIS Float) Value Added Products : Reflective : Mirror Processing: : Laminated : Tempered : Insulated Glass : Products Installation Fabrication AIS Glass Solutions Ltd. - Projects - Distributed Markets VALUE ADDED GLASS SOLUTIONS CHAIN

  34. Figures in Rs. Lakhs 2nd Quarter Performance 2007-08 2006-07 Comparison Q2 Q1 Q2 vs Q1 vs last Year Net Sales 24648 22500 17535 10% 41% Profitability PBDIT 3916 2611 4239 50% -8% Interest 2070 1774 663 17% 212% PBDT 1846 837 3576 121% -48% Depreciation 2415 2424 1442 0% 67% PBT -569 -1587 2134 -127% Foreign Exchange Fluctuation 1253 4671 95 -73% 1216% PBT after Foreign Exchange Fluctuation 684 3084 2229 -78% -69% Prior period items -42 -19 41 -202% Impairment loss /extra ordinary exp reversed 0 0 0 PBT 642 3065 2270 -79% -72% Current Tax net of MAT Credit 28 24 29 16% -4% Deferred tax Liability / (Asset) 218 1080 734 -80% -70% PAT 396 1961 1507 -80% -74% Margins PBDIT 15.89% 11.60% 24.17% 4.28% -8.29% PBDT 7.49% 3.72% 20.39% 3.77% -12.90% PBT -2.31% -7.05% 12.17% 4.75% -14.48% Margins with foreign exchange gain PBDIT 20.97% 32.37% 24.72% -11.40% -3.75% PBDT 12.57% 24.48% 20.94% -11.91% -8.36% PBT 2.77% 13.71% 12.71% -10.93% -9.94% AIS Results Q2 FY 08 - Consolidated • Performance impacted, particularly in the float business, due to rising cost of key inputs like fuel, soda ash, packing, etc. • VRS payment of Rs. 7.5 crores to contract workers considered in the results. • Rising input cost marginally offset by higher prices of float glass in Q2. • Profit includes gain on foreign exchange fluctuations.

  35. Figures in Rs. Lakhs H1 Performance 2007-08 2006-07 Comparison H1 H2 H1 Vs H2 Last vs last year Year Net Sales 47149 41712 34944 13% 35% Profitability PBDIT 6527 8566 7648 -24% -15% Interest 3845 2255 1292 71% 198% PBDT 2682 6311 6356 -57% -58% Depreciation 4839 3736 2826 30% 71% PBT -2157 2575 3530 -184% -161% Foreign Exchange Fluctuation 5924 853 -437 594% -1456% PBT after Foreign Exchange Fluctuation 3767 3428 3093 10% 22% Prior period items -61 63 9 -197% -776% Impairment loss /extra ordinary exp reversed 0 6 0 -100% PBT 3707 3497 3102 6% 19% Current Tax net of MAT Credit 52 84 54 -38% -4% Deferred tax Liability / (Asset) 1298 1002 995 30% 30% PAT 2357 2411 2053 -2% 15% Margins PBDIT 13.84% 20.54% 21.89% -6.69% -8.04% PBDT 5.69% 15.13% 18.19% -9.44% -12.50% PBT -4.57% 6.17% 10.10% -10.75% -14.68% Margins PBDIT 26.41% 22.58% 20.64% 3.83% 5.77% PBDT 18.25% 17.17% 16.94% 1.08% 1.31% PBT 7.99% 8.22% 8.85% -0.23% -0.86% AIS Results H1 FY 08 - Consolidated

  36. (Rs. Lakhs) S. No. Particulars AIS (Consolidated) Second Quarter Ended Half Year Ended 30.09.07 30.09.06 Change 30.09.07 30.09.06 Change 1 Gross Turnover 29652 21039 41% 56783 42146 35% Net Turnover 24648 17536 41% 47148 34944 35% 2 Other Income 1410 1273 11% 6159 1306 372% 3 Total Revenue 26058 18809 39% 53307 36250 47% 4 Total Expenditure 20890 14475 44% 40856 29039 41% a. (Increase)/Decrease in Stock-in-trade -814 -2432 -67% -3034 -3678 -18% b. Materials Cost 6707 6785 -1% 14187 13009 9% c. Power and Fuel 5686 3216 77% 11058 6394 73% d. Stores and Spares Consumed 2217 1282 73% 4113 2343 76% e. Staff Cost 2050 1416 45% 3895 2731 43% f. Other Expenditure 5044 4208 20% 10637 8240 29% 5 Gross Profit before Depreciation, Interest and Tax 5168 4334 19% 12451 7211 73% 6 Interest 2070 663 212% 3845 1292 198% 7 Gross Profit after Interest but before Depreciation 3098 3671 -16% 8606 5919 45% and Tax 8 Deferred Revenue Expenditure Written off 0 4 1 7 9 Depreciation/Amortisation 2415 1438 68% 4838 2819 72% 10 Impairment Loss/(Reversal) 0 0 0 0 11 Prior Period Adjustments 42 -41 61 -9 12 Profit Before Tax 641 2270 -72% 3706 3102 19% 13 Provision for Taxation 0 a. Current Tax 64 169 -62% 300 231 30% b. Deferred Tax Liability (Net) 218 734 -70% 1298 995 30% c. Fringe Benefit Tax 27 26 4% 50 45 11% d. MAT Credit Entitlement -63 -166 -298 -222 14 Income Tax Paid for Earlier Years 0 0 0 0 15 Profit After Tax 395 1507 -74% 2356 2053 15% 16 Share of Profit of the Associates 14 27 -48% 36 45 -20% 17 (Add)/Less : Minority Interest -27 6 -53 16 18 Net Profit 436 1528 -71% 2445 2082 17% 19 Paid up Equity Share Capital (Face value of 1599 1599 0% 1599 1599 0% Re. 1/- each) 20 Reserves (Excluding revaluation reserves) 0 0 21 EPS - Basic and Diluted (in Rs. not annualised) 0.27 0.96 -71% 1.53 1.30 17% AIS RESULTS : Q2 & H1 FY 08 - Details =======

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