TELCO

Introduction 1945-Established for mfg of Steam Locomotives

1954-Telco started mfg automotive vehicles in technical collaboration with Daimler-Benz.

1962-Mfg of construction equipments.

1998-First indigenously designed small car was launched

They Own TELCO A Promoter's holding (Percentage)

Principal Promoter - Tata Sons Ltd. 14.33 Promoter Group - Tata Companies 11.32

Sub total 25.65 B Non-promoters Holding (Percentage)

Institutional Investors a. Mutual Funds and UTI 6.74 b. Banks, FIs, Insurance Cos 17.48 c. FIIs 9.38

• Sub total 33.60 C Others (Percentage)

a. Private Corporate Bodies 1.83 b. Daimler Chrysler A.G. 10.00 c. Indian Public 20.18 d. NRIs/OCBs/FFIs 1.27 e. Citibank NA as Depository for GDR holders 7.47

• Sub total 40.75

• GRAND TOTAL 100.00

Board of Directors Board of Directors As on 29th May 2000

Ratan N Tata-Executive ChairmanN A PalkhivalaN A SoonawalaJ J IraniJ K SetnaP K M Fietzek-Alternate Director to Mr Helmut PetriV R MehtaR GopalakrishnanN N WadiaF K Kavarana-Executive Director - Resigned w.e.f. 31-03-2001Helmut Petri

Line Of Business

Commercial Vehicles Utility Vehicles Passenger Vehicles Spares and Others

Plant locations Jamshedpur

Pune

Lucknow

Dharwad

Market share

Light Commercial Vehicle 63% Medium & Heavy Commercial Vehicle 66% Utility vehicle (UV) 26% Passenger car industry. 19%

Commercial Vehicles

Loads ranging from 2 to 40 tns. Mini buses that can seat 12 people Buses that can accommodate as

many as 60. Tippers, tractors trailers, and 4x4

off road vehicles

Commercial Vehicles Light Commercial Vehicles

Medium/ heavy Commercial Vehicles

Buses

Light Commercial Vehicles

Tatamobile207 - Pick up

SFC 407 Turbo Truck

LPT 407 Turbo Truck

….Light Commercial Vehicles

SFC 709 E Aerial lift turbo Truck

LPT 709 E Turbo Container truck

Medium / Heavy CV LPT 1109 Turbo Truck

with a high deck for bulky loads

SE 1613 TC Turbo Truck

ideal vehicle for construction

LPT 1613 TC Turbo Truck

Powerful and efficient truck for long distance

...Medium / Heavy CV SK 1613 TC Turbo Tipper

Reliable, efficient tipper for construction and mining

LPK 1615 TC Turbo Two-way Tipperuseful for road or bridge constr.

LPT 2515 TC Turbo TruckCost-effective to transport heavy cargo

LPT 2516 TC Intercooler Turbo TruckEasily negotiates roughterrain and slushy area

...Medium / Heavy CV LPT 2516 TC Turbo Heavy-duty

Truck

LPO 1613 TC Turbo Car CarrierEasily transports all cars, tractors and multi-utility vehicles.

LPS 3516 TC Turbo LPG tankerEfficient and Powerful tractor Trailer for transporting

LPS 4021 TC Turbo TractorPowerful vehicle for transporting heavy cargo

Buses LP / LPO 1510 Euro-I Bus

Powerful, efficient and reliable bus with many uses

LP / LPO 1512 TC Turbo BusPowerful, efficient and reliable bus for best returns

LPO 1615 TC RE Semi Low Floor BusEntry and exit made easy

LPO 1616 TC Luxury BusHigher Power, Better style and greater comfort

...Buses SFC 407 Turbo Mini- bus

Powerful passenger vehiclefor any terrainLP 407 Turbo Mini- busWell- styled, spacious passenger vehicle

LP 709 E Turbo BusPowerful, spacious vehicle for multi applications

LPO 1510 CGS bus (CNG bus)Low-emission, environment friendly bus

Commercial Vehicles – Initiatives & GainsCommercial Vehicles – Initiatives & Gains

Improving Improving Operating Operating

EfficienciesEfficiencies

Cost Reduction

Global Benchmarking

Outsourcing

ERP

Product Launches

HCV – LPT 2515 TC (already the largest selling in its class)

ICV – LPT 1109

697 to complement Cummins

CNG Buses

Responding to Responding to Evolving Evolving

Customer NeedsCustomer Needs

Enhancing Enhancing Distribution & Distribution &

Service NetworkService Network

Addition of 576 Tata certified garages

Supply Chain Management

Gearing up to maintain dominance in the Gearing up to maintain dominance in the automobile industryautomobile industry

Utility Vehicles SUMO 9 Variants

SE,EZI,4x4,SA,DLX,SPACIO,TOURIN,CARRIER,AMBULANCE

Safari 3 Variants 4X2 LX , 4X2 EX , 4X4 EX

Passenger Cars

Indica V2 Indica 2000 Indica CNG

Indica Strategy on Track...Improving Improving Operating Operating

EfficienciesEfficiencies

Significant improvement in the Indica financials

Successful Launch of V2 – Jan ’01

Euro II compliant MPFI

Additional variants slated for launch in FY02

Responding to Responding to Evolving Evolving

Customer NeedsCustomer Needs

32% growth in service network

Full-fledged dealers up from 56 to 79

18-month extended warranty

Warehouses at Delhi, Kolkata, Bangalore & Dighi

Centralised Toll Free number

Enhancing Enhancing Distribution & Distribution &

Service NetworkService Network

Rising Exports

S America 3%

Europe & Australia

38%

SE Asia20%

S Asia22%

W Asia5%

Africa4%

M/HCV29%

LCV48%

CARS3%

MUV20%

•India’s largest exporter of engineering goods•Increasing acceptance in European Markets•Growth of 19%

Financial Performance Loss of Rs. 500 cr as against a profit of Rs. 75 cr

EBIDTA declined from Rs. 786 crores to Rs. 498 croresLower VolumesUncovered Cost of Emission ComplianceLower Other Income

2000-01 (Rs. in crs.)

1999-00 (Rs. in crs.)

EBIDTA 498 786 Depreciation (347) (342) Interest (Net) (444) (420) Amortisation (137) (83) Extra Ordinary Items (70) 134 (500) 75

2000-01 (Rs. in crs.)

1999-00 (Rs. in crs.)

EBIDTA 498 786 Depreciation (347) (342) Interest (Net) (444) (420) Amortisation (137) (83) Extraordinary Items (70) 134 (500) 75

Period ended 01/06 00/06 Growth No. of months (3) (3) (% yoy) Sales 16,973.8 17,976.6 (5.6) Other income 66.6 284.6 (76.6) Total income 17,040.4 18,261.2 (6.7) Expenditure (15,711.3) (16,714.8) (6.0) Profit after tax (908.9) (743.4) 22.3 EPS (Rs) (14.2) (11.6)

Quarterly Results - 06/2001 (3 months) (Rs mn)

Period ended 01/09 00/09 Growth No. of months (3) (3) (% yoy)

Sales 20544.8 19005.8 8.1

Other income 137.1 259.1 (47.1)

Total income 20681.9 19264.9 7.4 Profit after tax (525.8) (941.1) (44.1)

EPS (Rs) (9.7) (22.9)

Quarterly Results (Q2) - 09/2001 (3 mth) (Rsmn)

Segment Aug 01 Indica 5157 Utility Vehicles 2052 Medium/Heavy C V 4293 Light Commercial Veh 2310

(Apr-Aug)01 = 14,399 (Apr-Aug)00 = 13,108

Sales Figures (Units)

Strategy for

Sustainable

Growth

Strategic Corporate Initiatives

Cost Reduction22Catering to Business Challenges33Flatter & More Responsive Organisation44

Becoming Globally Competitive55

Asset Management & Revenue Growth11 Initiatives to retain and enhance leadership to ensure long term growth

Focus on core activities Disinvestment of non-core businesses Rationalisation of investments

Expanding revenue opportunities Non-cyclical businesses: Spare parts,

Financing Sale of 697 engines for stationary applications Thrust on exports – from 8% to 20% of

turnover Downstream value addition – AMC, fleet

management Total transport solutions

Asset Management & Revenue Growth

Cost Reduction Programme Total savings of Rs 255 crore achieved through

Reduction in fixed, material & other variable costs

Increase in operating efficiency

Manpower reduction ( 3,400 in FY01)

Savings in gross interest outflow : Rs. 41 crore

Cost Reduction…

Robust Product Development Process A detailed market segmentation study Formation of project teams for different

segment wise needs

Think Customer Improve Customer Focus To cover entire organisation and dealer

network

Catering to Business Challenges...

Organisational Restructuring Rightsizing

Reduction of 3400 in FY01 Reduction of 11,500 over last three years

De-layering of Organisation Aggressive Cost Reduction Programme

Kaizen Initiatives

...Catering to Business Challenges

The Indian auto sector has the potential to become the engine of economic growth

Low per capita car ownership National Highway

Development Project -- investment of Rs.54,000 cr

Highway of Opportunities

0%

2%4%

6%8%

10%

12%14%

16%18%

US Mexico Brazil India

Auto sector output as % of industrial output: India vis-a-vis North & South America

Telco Construction Equipment Company Limited. Tata Technologies Limited. (TTL) Tata Technologies, USA Sheba Properties Limited. Telco Dadajee Dhackjee Limited. Minicar (India) Limited. HV Transmissions Limited. (HVTL) HV Axles Limited. (HVAL) Telco Automation Limited. (TAL)

Subsidiary companies of Tata Engineering

ThAnK YoUArti Saxena IIC 4