Last week in Naberezhnye Chelny there took place annual meeting of shareholders of KAMAZ Inc. Sergey Kogoghin, Director General of KAMAZ Inc., acted as its chairman. On the agenda of the meeting there were several issues, including annual report on operation activities of KAMAZ Inc. in 2003, its balance sheet, and reports on profits and losses. Shareholders reviewed some interesting business proposals, then authorized a new edition of the Charter of KAMAZ Inc., amendments and appendixes in the Rules of Board of Directors, Auditing Commission, Company Directorate and Director General.

“Audit and Consulting” Ltd. delivered its audit report on finance and operation activities of the Company in 2003. “Audit and Consulting” Ltd. (Kazan) has been again appointed as the auditor of KAMAZ Inc. for 2004.

In 2003 KAMAZ Inc. became one of the most dynamically developing major Russian OEMs. Its sales share on the Russian market has increased from 27,1 up to 36,4 %. In general, KAMAZ Inc. became the only vehicle manufacturer in CIS, which has managed to increase its market share quite significantly within a relatively short time.

Capitalization of the parent company has grown up to USD283 million. Sales volumes of finished products and services have increased by 25% up to 29 billion rubles. Export to CIS and foreign countries has grown by 20%, it does not include the unstable market of Iraq. This became possible due to permanent efforts aimed at quality improvement, service network development, and cooperation with corporate customers, introduction of new payment schemes (leasing), and upgrading of the corporate management system.

Significant increase of efficiency of the Company’s assets and introduction of the appropriate system of business management is ensuring further growth of KAMAZ Inc.’s capitalization. This opens new possibilities for attracting funds to support promising projects and business development.

Sergey Kogoghin outlined the major targets, set by the Company for 2004:
To replace an existing model range of trucks by the latest models of increased payload with a 13t axial load;
All trucks and buses are to comply with Euro-2 emission standards;
To launch into production new models of diversified special purpose trailers and tanks;
To launch into production gas engine powered vehicles;
To launch into production medium range trucks and small capacity buses.
Vs.2003:
- increase KAMAZ share at the Russian truck market up to 38,5%;
- reduce a number of claims by 25%;
- increase vehicles warranty period up to 50 000 km;
To raise competitive capacity of the Group of Companies through:
- optimization of production facilities;
- upgrading production and commercial logistics;
- reduce operation cost per each ruble of finished products, including:
a) tangible costs by 7%,
b) utilities by 5%,
c) cost of labour by 6%;
- increase profitability from the main activities up to 6,1% min.;
- gain 104,5 million rubles min. net profit;
- ensure capitalization growth up to USD350 million.

“We believe that KAMAZ management supported by its Board of Directors and coordinated actions of staff and business partners will be able to hit all the targets and secure growth of the Company’s capitalization”, - said Director General of KAMAZ Inc.

When KAMAZ-master team has again won Telefonica Paris-Dakar rally it marked a perfect finish of 2003. The result of the rally, which participants have been the world’s famous OEMs, was so convincing, that nobody doubts any more today that Russia can really produce good vehicle.

© www.kamaz.net, 2004