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

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.

Corporate Profile

4

AIS in 1987 AIS in 2007

• Single Plant at Rewari •Eleven Plants in Four Locations

• Single Customer - Maruti

Suzuki

•Customer base which includes :•Auto OE’s, •Glass distributors and dealers spread all over the country.

• Single Product -

Tempered Glass

•Full range of automotive safety glass, float glass, architectural processed glass and glass products.

• Single Location •Pan India presence.

• Single business segment

- Auto Glass

•India’s largest integrated glass company with a meaningful presence in every part of the automotive and architectural glass businesses capturing value across the complete glass chain, with the following market share :•Auto – over 80 %•Float – 29 %, going to over 35 %, post Roorkee start up•Glass Solutions – estimated at 18 %, gaining leadership

position within first year of operations

Corporate Profile

5

These figures contain, in brief, the story of AIS’s growth from asupplier 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.

AIS : 1987-88 TO 2006-07

Sl. No. ITEM 1987-88 2006-07 CAGR

1. Gross Sales (US$'s mill.) 2.87 224.87 26%

2. EBITDA (US$'s mill.) 0.69 41.21 23%

3. EBDT (US$'s mill.) 0.42 32.35 25%

4. OPM % (EBIDTA / Net Sales) 34 22

Corporate Profile

6

Creating Shareholder Value

Market Capitalization growth at a CAGR of over 43 % in 19 years.

Business De-risking AIS’s transition from Auto Glass Manufacturer supplying a single customer to becoming India’s largest glass company.

Quest for excellence Benchmarking AIS’s operational performance to global levels and setting out targets & milestones to achieve these levels.

Value to Stakeholders through SEQCDDM

Providing stakeholder satisfaction through superior Safety, Environment, Quality, Cost, Delivery, Development, and Management

Technology Development Building relevant self-sufficiency in technology, going beyond product development to developing and building glass processing equipment at the lowest competitive costs.

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

Rewari:1. Auto Glass2. Glass

Solutions

Roorkee:1. Float2. Glass

Solutions3. Mirror 4. Reflective

Glass5. Auto Glass

Chennai:1. Auto2. Glass

Solutions

Taloja:

1. Float2. Glass

Solutions

AIS Operations : Plant Locations

8

India Story…

0.00 2.00 4.00 6.00 8.00 10.00 12.00

China

India

Russia

Mexico

Brazil

USA

Canada

UK

Japan

France

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

USA China Japan India Germany

In US

D Bn

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

9 - 14 yrs35%

15 - 59 yrs58%

60 yrs & above

7%

+

• Rising Income level

• Increasing consumerism

• Growing availability of retail credit

Increasing Consumer

spend

• Largest youth population

• Growing literacy rate

• Large pool of professionals

and technocrats

AIS Core Markets - Automotive and Real Estate / Construction Sectors among the key beneficiaries

10

Increase export revenueto $ 35 billion by 2016 from

$ 4.1 billion at present

Increase export revenueto $ 35 billion by 2016 from

$ 4.1 billion at present

On 29.01.07, the Prime Minister released

Automobile Plan 2006 -2016 to give a road map

to Indian Automobile Industry

Indian Automotive Industry

Increase turnover to$145 billion by 2016

from $ 35 billionat present

Increase turnover to$145 billion by 2016

from $ 35 billionat present

Provide employment toadditional 25 million people

by 2016

Provide employment toadditional 25 million people

by 2016

Automotive Mission Plan

2016

By 2016, the Automotive sector is expected to contribute

10% of the country’s GDP and 30~35% of the Industry

Government of IndiaSIAMACMA

11

ACMA VISION 20:20:1 ACMA VISION 20:20:1

VISION

20:20:1

2020

11

202020:20:120:20:1

Achieve $20 billion in Domestic SalesAchieve $20 billion in Domestic SalesAchieve $20 billion in Domestic SalesAchieve $20 billion in Domestic Sales

Achieve $20 billion in Exports SalesAchieve $20 billion in Exports SalesAchieve $20 billion in Exports SalesAchieve $20 billion in Exports Sales

Create 1 million additional JobsCreate 1 million additional JobsCreate 1 million additional JobsCreate 1 million additional Jobs

Automotive Mission Plan

2016

Automotive Components Industry

12

India’s huge geographic spread

Easier finance schemes

Replacement of aging four wheelers

Increasing Road Development, Golden Quadrilateral

Increasing dispensable income of rural agri sector

Higher GDP growth

Increasing disposable income with the service sector

Graduating from Two wheeler to Four wheeler

Indian Automotive Industry - Growth Drivers

Growing Concept of Second Vehicle in Urban Areas

Two wheeler story could be repeated in the car segment

13

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.

“INDIA” – A Base for Compact Cars

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

• Rising disposable income

• Shift from rented to owned house

• Easy access to financing

• Nuclear families

• Retail / IT / ITES / BPO

• Improving regulatory framework

Indian Realty – Intact Opportunity

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 and increase 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

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.

• 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

AIS Operations : Auto Glass SBU

Auto Glass SBU awarded the Deming Application Prize for 2007 in October, 07

17

Vehicle Production

Car & MUV production - Apr - Sep

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

No

s

Catg I Catg II Catg III Catg IV Catg V MUV Total

-4% 2%

18% growth

Growth over previous period growth

7% growt

28% growt29%

growt

14% growth

18

Share of Business in Cars

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

01-02 02-03 03-04 04-05 05-06 06-07 Apr-07 May-07

Jun-07 Jul-07 Aug-07 Sep-07 UptoSep 07Temp Avg Lam Avg Temp Lam

Share of business in car segment

19

Segmentwise Net Sales

AIS Auto Sales (Rs Lacs)

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

24000

Apr- Sep 01 Apr- Sep 02 Apr- Sep 03 Apr- Sep 04 Apr- Sep 05 Apr- Sep 06 Apr- Sep 07

OEM OE Spares AFM Exports Total Sales

84%83%

80%

76%73%

79%

7%

81%

20

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.

AIS Operations : Float Glass SBU

21

2002 2003 2004 2005 2006 2007Designed Capacity 2775 2775 2700 2700 3250 3640Total Supply 2139 2139 2093 2118 2524 2815Total Demand 1317 1554 1801 2153 2338 2447

0

500

1000

1500

2000

2500

3000

3500

4000

2002 2003 2004 2005 2006 2007

Designed Capacity

Total Supply

Total Demand

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

22

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

COMPARATIVE DOMESTIC SALES DATA

17%

28%

36%

9%

3%

8%

26% 26%

39%

0%3%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

AIS GGL SGIL TRIVENI HARYANA GBL

Apr06-Sep06 Apr07-Sep07

23

AIS Float Glass SBU - Sales & Production Quantity

Sales Qty

0

1000

2000

3000

4000

5000

6000

Apr May Jun Jul Aug Sep Average

CS

QM

'000

'

Apr-Sep'06 Apr-Sep'07

Production Qty

0

1000

2000

3000

4000

5000

6000

Apr May Jun Jul Aug Sep Average

CS

QM

'000

'

Apr-Sep'06 Apr-Sep'07

24

DOMESTIC ZONEWISE VOLUME

44% 44%

18%19%

9%9%

29% 20%

0%

20%

40%

60%

80%

100%

Apr~Sep'06 Apr~Sep'07

NORTH SOUTH WEST EAST IGG

Sales by Thickness

88%79%

12%21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Apr~Sep'06 Apr~Sep'07

2~6 8~12

Sales by Product

68% 65%

32% 33%

0%0% 1%1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Apr~Sep'06 Apr~Sep'07

CLEAR TINTED REFLECTIVE MIRROR

AIS Float Glass SBU - Sales Distribution

25

AIS Float Glass SBU - Market Breakup

Market Breakup Sales Qty & Value

89% 91%

66%74%

7%

16%15%

8% 11%19%2%3%

0%

10%

20%30%

40%

50%

60%

70%80%

90%

100%

Sales Qty Sales Value Sales Qty Sales Value

Apr-Sep 06 Apr-Sep 07

Dom. AIS Export

26

Rs. per CSQM (Domestic Sale)

40

50

60

70

80

90

100

110

Apr May Jun Jul Aug Sep Apr-Sep

Domestic APR-06 ~ SEP-06 Domestic APR-07 ~ SEP-07

Domestic APR-06 ~ SEP-06 Domestic APR-07 ~ SEP-07

Rs. per CSQM (Export Sale)

40

50

60

70

80

90

100

110

Apr May Jun Jul Aug Sep Apr-Sep

Export APR-06 ~ SEP-06 Export APR-07 ~ SEP-07

Export APR-06 ~ SEP-06 Export APR-07 ~ SEP-07

Sales Realization

27

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.

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 Operations : Glass Solutions SBU

28

AIS Glass Solutions - Sales Trend by Zone

Sales Trend by Zone

0

50

100

150

200

250

Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

Rs

Lacs

North West South Export

29

AIS Glass Solutions - Sales Trend by Product

Sales Trend by Product

0

50

100

150

200

250

300

350

Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

Rs

Lacs

Temp Lam IGU

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

MISSION - JIKKO

Float Glass manufacture(AIS Float)

Automotive glassmanufacture(AIS Auto Glass)

Automotive Glassdistribution(AIS Map Auto)

Allied Productsdistribution(AIS Adhesives)

Auto GlassFitmentServices(WE)

AUTOMOTIVE GLASS VALUE CHAIN

Value Added Products: Reflective: Mirror

Processing:: Laminated: Tempered: Insulated Glass: Products

Fabrication Installation

VALUE ADDED GLASS SOLUTIONS CHAIN

(Light grey cells indicate our existing spread of activities)

- Projects- Distributed Markets

AIS Glass Solutions Ltd.

VISION - SEE MORE

34

AIS Results Q2 FY 08 - Consolidated

2006-07Q2 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%

MarginsPBDIT 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 gainPBDIT 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%

2nd Quarter PerformanceFigures in Rs. Lakhs2007-08 Comparison • 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

AIS Results H1 FY 08 - Consolidated

H1 H2 H1 Vs H2 Last year

vs last 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%

MarginsPBDIT 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%

H1 PerformanceFigures in Rs. LakhsComparison2007-08 2006-07

36

AIS RESULTS : Q2 & H1 FY 08 - Details

(Rs. Lakhs)

30.09.07 30.09.06 Change 30.09.07 30.09.06 Change1 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

and Tax3098 3671 -16% 8606 5919 45%

8 Deferred Revenue Expenditure Written off 0 4 1 79 Depreciation/Amortisation 2415 1438 68% 4838 2819 72%10 Impairment Loss/(Reversal) 0 0 0 011 Prior Period Adjustments 42 -41 61 -912 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 0 015 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 1618 Net Profit 436 1528 -71% 2445 2082 17%19 Paid up Equity Share Capital (Face value of

Re. 1/- each)1599 1599 0% 1599 1599 0%

20 Reserves (Excluding revaluation reserves) 0 021 EPS - Basic and Diluted (in Rs. not annualised) 0.27 0.96 -71% 1.53 1.30 17%

Half Year EndedSecond Quarter EndedAIS (Consolidated)S. No. Particulars

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