1 10 th CLSA India Forum 2007 Asahi India Glass Ltd. Corporate Presentation 16 th 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 million & USD million in FY 07. Corporate Profile

4 AIS in 1987AIS in 2007 Single Plant at RewariEleven 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 LocationPan 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 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. AIS : TO Sl. No.ITEM CAGR 1. Gross Sales (US$'s mill.) % 2.EBITDA (US$'s mill.) % 3.EBDT (US$'s mill.) % 4.OPM % (EBIDTA / Net Sales) 3422 Corporate Profile

6 Creating Shareholder Value Market Capitalization growth at a CAGR of over 43 % in 19 years. Business De-riskingAIS’s transition from Auto Glass Manufacturer supplying a single customer to becoming India’s largest glass company. Quest for excellenceBenchmarking 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 DevelopmentBuilding 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 , spanning the entire glass value chain.

7 Rewari: 1.Auto Glass 2.Glass Solutions Roorkee: 1.Float 2.Glass Solutions 3.Mirror 4.Reflective Glass 5.Auto Glass Chennai: 1.Auto 2.Glass Solutions Taloja: 1.Float 2.Glass Solutions AIS Operations : Plant Locations

8 India Story… 4 th Highest GDP in PPP terms2 nd Highest GDP growth among the top 5 economies one of the fastest growing economies

9 India – Consumption Driven Growth + 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 revenue to $ 35 billion by 2016 from $ 4.1 billion at present On , the Prime Minister released Automobile Plan to give a road map to Indian Automobile Industry Indian Automotive Industry Increase turnover to $145 billion by 2016 from $ 35 billion at present Provide employment to additional 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 India SIAM ACMA

11 ACMA VISION 20:20:1 VISION 20:20: :20:1 Achieve $20 billion in Domestic Sales Achieve $20 billion in Exports Sales Create 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 General Motors : New Capacity to manufacture GM Spark small car by Nissan Compact SUV

14 Real Estate – Industry Dynamics & Potential Market expected to grow at 33 % thru 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 % 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

18 Share of business in car segment

19 Segmentwise Net Sales

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 and successfully integrated it into AIS. AIS Operations : Float Glass SBU

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 Glass Solutions, set up as a subsidiary of AIS in , 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 4 th plant at Roorkee has become functional from September,  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

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 %. 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 % 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 andOperational 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 glass manufacture (AIS Auto Glass) Automotive Glass distribution (AIS Map Auto) Allied Products distribution (AIS Adhesives) Auto Glass Fitment Services (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 Q2Q1Q2vs Q1vs last Year Net Sales %41% Profitability PBDIT %-8% Interest %212% PBDT %-48% Depreciation %67% PBT % Foreign Exchange Fluctuation %1216% PBT after Foreign Exchange Fluctuation %-69% Prior period items % Impairment loss /extra ordinary exp reversed000 PBT %-72% Current Tax net of MAT Credit %-4% Deferred tax Liability / (Asset) %-70% PAT %-74% Margins PBDIT15.89%11.60%24.17%4.28%-8.29% PBDT7.49%3.72%20.39%3.77%-12.90% PBT-2.31%-7.05%12.17%4.75%-14.48% Margins with foreign exchange gain PBDIT20.97%32.37%24.72%-11.40%-3.75% PBDT12.57%24.48%20.94%-11.91%-8.36% PBT2.77%13.71%12.71%-10.93%-9.94% 2nd Quarter PerformanceFigures in Rs. Lakhs 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 H1H2H1Vs H2 Last year vs last Year Net Sales %35% Profitability PBDIT %-15% Interest %198% PBDT %-58% Depreciation %71% PBT %-161% Foreign Exchange Fluctuation %-1456% PBT after Foreign Exchange Fluctuation %22% Prior period items %-776% Impairment loss /extra ordinary exp reversed % PBT %19% Current Tax net of MAT Credit %-4% Deferred tax Liability / (Asset) % PAT %15% Margins PBDIT13.84%20.54%21.89%-6.69%-8.04% PBDT5.69%15.13%18.19%-9.44%-12.50% PBT-4.57%6.17%10.10%-10.75%-14.68% Margins PBDIT26.41%22.58%20.64%3.83%5.77% PBDT18.25%17.17%16.94%1.08%1.31% PBT7.99%8.22%8.85%-0.23%-0.86% H1 PerformanceFigures in Rs. Lakhs Comparison

36 AIS RESULTS : Q2 & H1 FY 08 - Details =======