CORPORATE PRESENTATION NOVEMBER 2006

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Cautionary Statement

Statements in this Presentation describing the Companys objectives, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand supply conditions, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and other factors. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise.

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Presentation Structure
Introduction Business Overview & Outlook Key Financials Summary

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About TCI Group

48 year old heritage Started as One Man, One Office and One Truck Revenues of Rs.1000 crores

The group moves more than 1.5 % of National GDP by value

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Group Infrastructure
Network of 1100 company owned branches Moving approx. 6000 trucks daily
850 owned 2000 vendors 1000 hired on spot daily

5.5 million sq. ft. of warehousing space (owned & leased).

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Stakeholders
150000 customers across all segments 20000 Shareholders 3000 vendor associates 5000 professionally trained personnel Over 15000 workers and drivers attached.

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Products & Services

3 PL / 4 PL Services
TCI SCS / Transystem Logistics International

EXPRESS
SURFACE AIR COURIER COLD CHAIN

TRANSPORT
ROAD RAIL ODC

SEAWAYS
COASTAL SHIPPING OCEAN FREIGHT

INTERNATIONAL
CUSTOMS CLEARING & FREIGHT FORWARDING

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Technology
Enterprise software: Oracle based RDBMS on Win NT Advanced Vehicle Tracking System with GPS Computerized and connected branch network V-sat connected hubs. Bar-Coded consignments

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Management Body
Executive Committee : Long term strategy Consisting of MD, ED, Legal , Operation, Finance, Human Resources and Divisional Heads Core Committee (Division) : Consisting of CEOs, MD, ED, Legal , Finance, Operation, Human Resources & Regional Heads Business strategy
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Presentation Structure
Introduction Business Overview & Outlook Key Financials Summary

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Transport & Logistics Industry

13% of Indias GDP Market Size (road freight transportation sector) ~ Rs 45,000 Crores (US$ 10 billion) Total motor able road length 3 million kilometers National Highways ~ 1% Fragmented, competitive, unorganized High growth for the next decade
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Structural Economic Changes

Investment into infrastructure Changing consumer trends Focus on outsourcing of Supply Chain management Integration into the Global economy Change in taxation structure

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Industry Dynamics
Transport
Industry Scenario Mature, Fragmented, Low barriers to entry 5-10% Low cost, nontime sensitive

Express

Shipping

Supply Chain

Growth, niche, Growth,high Nascent, high entry entry barriers knowledge barriers based, very high barriers 15-20% 10-15% 50%+ Cost optimization, Value driven, single window

Industry Growth Customer requirements Competitors

Cost efficiency, Scheduled high time Services sensitive Gati, Safexpress

ARC, SER, Patel, Unorganized

Gati, Shreyas, Sembcorp, AFL SKS

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Transport Division
Market Leader (15% of organized market share) Highest ethical standards Trained manpower Systems & Technology backbone

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Transport Division: Financials

52% of overall revenues, 19% operating margins during H1 Rs in Crores
Particulars 2003-04 2004-05 2005-06 Sep,06( (Exc SCS) H1)

Revenues PBDIT % to T/o PBT Cash profit

419 13.1 3.1 2.2 12.6

450 15.1 3.4 2.3 11.7

472 14.3 3.0 6.3 8.0

268 6.2 2.3 2.3 3.3

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Transport Division: Outlook

Projected growth of 15-20% annually Dedicated wing for road & rail services Macro impact on truck hire rates:
Hike in fuel prices by 7% in June 06. Ban on overloading by Supreme Court

Good reference for other businesses

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XPS Division
Fastest growing brand Focused on packages Cutting edge service Innovative products

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XPS Division: Financials H1

24% of overall business, 33% of operating margins during H1 Rs in Crores
Particulars 2003-04 2004-05 2005-06 Sep,06(H1)

Revenues PBDIT % to T/o PBT Cash profit

140 14.0 10.0 9.3 9.1

170 16.9 10.0 12.1 11.4

214 20.0 9.4 14.6 13.3

122 10.7 8.8 8.5 7.6

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XPS Division: Outlook

Aggressive growth of 25-30% Increasing yields with air and courier Super hubs under construction Strong retail base Investment in courier of Rs.3.5 Crore in H1

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Supply Chain Solutions Division

Providing SCM consulting to warehousing/ C& F services, distribution Focused verticals: Auto, Retail, FMCG, Telecom, Electronics Key clients: Toyota, Caf Coffee Day, Nokia, HLL JV with Mitsui : Transystem

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SCS Division: Financials H1

10% of overall business, 16% of operating margins
Particulars 2005-06
Rs in Crores

30th Sept,06 (H1)

Revenues PBDIT % to T\O PBT Cash profit Capital Employed

70.4 9.0 12.8 3.3 7.0 28.0

50.7 5.0 9.9 1.2 3.4 38.8

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SCS Division: Outlook

Unparallel Toyota experience Only integrated player with own infrastructure Case Study of Bajaj Auto Explosive growth of 50-75% Large scale modern, scalable, multi-user warehouses construction Added new clients Skoda, Royal Enfield, Siyaram etc. Added 300,000 sq ft. in H1

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Other Divisions
Trading (Fuel Stations): being hived off Wind Power: Tax benefit

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TCI Seaways Ltd.

Merged with TCIL effective from 01 April 2005 Catering coastal cargo movement of container and bulk cargo, domestic and international Fleet of 4 vessels of total capacity of 12,000 DWT

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TCI-Seaways Division: Financials (H1)

4% of overall business, 20% of operating margins during H1 Rs in Crores
Particulars 2003-04 2004-05 2005-06 30th Sept,06 (H1)

Revenues PBDIT % to T\O PBT Cash profit Capital Employed

30.6 7.5 24.5 3.4 8.2 28.5

38.9 11.9 30.6 7.3 10.6 30.9

46.0 14.6 31.7 10.9 13.9 28.4

21.8 6.3 28.9 4.7 6.0 29.5

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TCI Seaways Division: Outlook

Expected to post growth of 15-20% p.a. To add one ship in current year To cater to international routes

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Strategy
Aim to be an integrated supply chain solutions provider Establish Global best practices Capture SCM outsourcing of corporate by leveraging Toyota experience Growth of Logistics would expand margins Benefit of shift from un-organized to organized sector Continuous innovation
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Capital Expenditure Plan

Rs in Crores

2006-07 Warehouse & land Wind power Ships Trucks & Containers Others Total 98 25 25 23 13 184

2007-08 35 25 25 32 5 122

2008-09 2009-10 TOTAL 8 0 25 32 0 70 8 0 25 27 0 66 149 50 100 114 18 442

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Capital Expenditure Plan :Budget v\s Actual

Acquired land at Delhi, Pune, Hoshiarpur and Nagpur. Warehouse project delayed by 3 month due to CLU problems Trucks and containers added for Rs.14 Crore Ship finalized and will include in fleet by Dec 06 Discussion on for order of 5 MW Wind Power Invested Rs. 2 Crore in up gradation of technology
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Future Outlook
Double present revenue base by 2009-10 Projected revenue growth of 18-25% yearly Projected EPS growth of 20-30% yearly

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Presentation Structure
Introduction Business Overview & Outlook Key Financials Summary

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Highlights
Revenue growth of 23% (FY05 vs FY06) & 25% H1 FY07 vs H1 FY06). Moving up the value chain Similar growth to continue

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Key Financials
Rs in Crores

2003-04
Revenues Other income Operating Profit PBDT PAT Cash Profit Share capital EPS

2004-05 734.7 1.2 34.4 29.0 10.5 27.8 10.5 9.8

2005-06 30th Sept,06 (H1) 904.8 9.2 62.8 55.6 26.8 50.0 13.5 19.78 516.2 1.4 32.2 27.8 13.1 23.6 13.5 9.73

632.2 1.9 26.7 23.2 7.6 22.3 10.5 7.2

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Key Ratios
2003-04 2004-05 2005-06 30th Sept,06 (H1)

OPM (%) NPM (%) ROCE (%) RONW (%) Debt/PBDIT Debt Equity DSCR

4.2 1.2 10.4 13.2 2.9 1.44 1.5

4.5 1.4 11.8 16.2 2.8 1.47 1.7

6.9 2.9 21.5 25.1 1.8 1.06 1.9

6.2 2.6 19.1 21.9 2.2 1.18 2.4

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Presentation Structure
Introduction Business Overview & Outlook Key Financials Summary

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Summary
Only company with complete suite of products Extensive infrastructure High reputation and customer orientation

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Group Vision
TCI Group should be a customer oriented multitechnology, multi-specialist transport system in the Indian and International markets, with a proven commitment to excellence in every facet of activity and pursuit of value based policies to satisfy aspirations of society, customers, vendors, employees, shareholders and the transport industry.

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THANK YOU

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