Stellantis N.v. · EURONEXT:STLAP
Stellantis — Opel/Vauxhall — Corporate Update (November 2017)
38 slides from Stellantis's corporate update, November 2017
Slide 1: Opel/Vauxhall Strategic Plan
Opel/Vauxhall Strategic Plan Michael Lohscheller, CEO Opel Automobile GmbH 1
Slide 2: Status quo is not an option
STATUS QUO IS NOT AN OPTION New competitive mindset reflected in the plan‘s name Profitability Performance Agility Accountability Collaboration Customer focus Enablement Empowerment Foto: jamesteohart – fotolia.com 2
Slide 3: People are the solution to make Opel/Vauxhall fit for the future
PEOPLE ARE THE SOLUTION TO MAKE OPEL/VAUXHALL FIT FOR THE FUTURE 3
Slide 4: Leverage Groupe PSA's strength
LEVERAGE GROUPE PSA’S STRENGTH New European champion: #2 in Europe Sales: 4.3 million units worldwide Automotive revenue: € 55 billion Combined purchasing power of € 38.8 billion > 40 plants + 10 R&D centers > 200,000 employees 4
Slide 5: Creating a sustainable future
CREATING A SUSTAINABLE FUTURE Positive Operational Free Cash Flow* by 2020 Automotive Recurring Operating Margin** 2% by 2020 6% by 2026 * Defined as ROI + D&A – capex –Capitalized R&D –Change in NWC ** Recurring Operating Income related to Revenue 5
Slide 6: Lower financial break-even point to 800,000 cars
LOWER FINANCIAL BREAK-EVEN POINT TO 800,000 CARS: GENERATE PROFIT, LOWER EXPOSURE TO HEADWINDS 6
Slide 7: 4 Levers of PACE!
4 LEVERS OF “PACE!” 7 Foto: Trout55, The-Tor, kokoroyuki – istockphoto.com / Herbie – fotolia.com
Slide 8: 4 Levers of PACE!
4 LEVERS OF “PACE!” 8 Foto: Trout55, The-Tor, kokoroyuki – istockphoto.com / Herbie – fotolia.com
Slide 9: Clear roadmap to CO2 leadership – Opel goes electric
CLEAR ROADMAP TO CO2 LEADERSHIP – OPEL GOES ELECTRIC Adapting portfolio and electrification strategy to reach 95 g CO2 EU 2020 target Current identified Utilize difference to Adapting Groupe PSA Other 95 g target Portfolio technology actions 2020: 4 electrified carlines (incl. Grandland X and next g
Slide 10: 4 Levers of PACE!
4 LEVERS OF “PACE!” 10 Foto: Trout55, The-Tor, kokoroyuki – istockphoto.com / Herbie – fotolia.com
Slide 11: Enhance competitiveness – improve cost efficiency and synergies
ENHANCE COMPETITIVENESS – IMPROVE COST EFFICIENCY AND SYNERGIES Annual Synergies Groupe PSA € 1.7 Bn € 1.1 Bn 2020 2026 *Full realization by 2022 11
Slide 12: Enhance competitiveness – cost efficiencies in all areas
ENHANCE COMPETITIVENESS – COST EFFICENCIES IN ALL AREAS • Cost reduction of € 700 per car by 2020 • Improve fixed marketing expenses efficiency by more than 10% by 2020 • Ratio G&A/revenue from 5.6% to 4.7% by 2020 • Improve efficiency to benchmark levels for manufacturing and logistics cost as well
Slide 13: Enhance competitiveness – complexity reduction in engineering
ENHANCE COMPETITIVENESS – COMPLEXITY REDUCTION IN ENGINEERING Full passenger car model line-up will be based on joint Groupe PSA architectures by 2024 eCMP BEV EMP2 PHEV 13
Slide 14: Engineering Center Rüsselsheim: home of all new O/V vehicles
ENGINEERING CENTER RÜSSELSHEIM: HOME OF ALL NEW O/V VEHICLES • German DNA: All new O/V vehicles engineered in Rüsselsheim • Using Groupe PSA technologies (platforms, modules, powertrains) • Joint R&D and Capex sized at 7-8% ratio on automotive revenue • O/V engineering skills will be fully leveraged
Slide 15: Engineering Center Rüsselsheim: global competence centers
ENGINEERING CENTER RÜSSELSHEIM: GLOBAL COMPETENCE CENTERS • Rüsselsheim engineering will be key contributor to Groupe PSA global R&D • First centers of competence identified: • US market federalization for vehicles & powertrains • Fuel cell • Alternative fuels • Certain automated driving & driver as
Slide 16: Enhance competitiveness – close the performance gap vs. benchmark
ENHANCE COMPETITIVENESS – CLOSE THE PERFORMANCE GAP VS. BENCHMARK • Improve manufacturing and logistics performance by > € 400 per car by 2020* • Main levers: • Components diversity: - 50% • Rightsize plant space requirements: -25% • Increase utilization > 100% by 2020, e.g. by moving volumes from K
Slide 17: Enhance competitiveness – higher efficiency and plant investments
ENHANCE COMPETITIVENESS – HIGHER EFFICIENCY AND PLANT INVESTMENTS • Plant performance plans to allow allocation of new Opel/Vauxhall models and create opportunities to produce PCD* vehicles, as per existing cross-manufacturing • Localization of CMP and EMP2 platforms in Opel/Vauxhall plants • Starti
Slide 18: 4 Levers of PACE!
4 LEVERS OF “PACE!” 18 Foto: Trout55, The-Tor, kokoroyuki – istockphoto.com / Herbie – fotolia.com
Slide 19: Powerful brands – clear brand positioning
POWERFUL BRANDS – CLEAR BRAND POSITIONING Innovation accessible to all 19
Slide 20: Video: The future is everyone's
VIDEO „THE FUTURE IS EVERYONE‘S“ 20
Slide 21: Powerful brands – clear brand positioning
POWERFUL BRANDS – CLEAR BRAND POSITIONING Great design and ingenious technology 21
Slide 22: Powerful brands – unique Opel/Vauxhall design will remain a USP
POWERFUL BRANDS – UNIQUE OPEL/VAUXHALL DESIGN WILL REMAIN A USP 22
Slide 23: Powerful brands – focus on pricing power
POWERFUL BRANDS – FOCUS ON PRICING POWER Pricing gap versus benchmark in Europe G7 (%)* • 40% of sales volume from SUVs by 2021 • Optimize channel mix/strengthen market share in retail and fleet *In retail channel 23
Slide 24: Powerful brands – quality
POWERFUL BRANDS – QUALITY Significant improvements of quality, customer sa7sfac7on, service quality and brand loyalty Direct Run Rate vs benchmark 2015 2016 2017 2018 2019 2020 0 -1 -2 -2.6 -3.2 -4.7 Brand Loyalty* vs benchmark 2015 2016 2017 2020 2024 0 -7 -13 -15 -15 *Source: International studies
Slide 25: 4 Levers of PACE!
4 LEVERS OF “PACE!” 25 Foto: Trout55, The-Tor, kokoroyuki – istockphoto.com / Herbie – fotolia.com
Slide 26: Profitable sales offensive – new models
PROFITABLE SALES OFFENSIVE – NEW MODELS • One major launch per year on Groupe PSA architectures from 2018 • Total of 9 launches – including bodystyles – until 2020 • Reduce complexity and focus on key options/versions 26
Slide 27: Profitable sales offensive – develop LCV business
PROFITABLE SALES OFFENSIVE – DEVELOP LCV BUSINESS • 2018: New Combo launch • Exploring further markets • 2020: Start of electrification of LCV portfolio Increase LCV sales >25% by 2020 27
Slide 28: Profitable sales offensive – enlarge frontiers
PROFITABLE SALES OFFENSIVE – ENLARGE FRONTIERS • Increase overseas export sales: • Double sales by 2020 • >10% of global sales by mid next decade • Enter > 20 new markets by 2022 • Explore profitable worldwide mid-term opportunities 28
Slide 29: Further profit and revenue drivers
FURTHER PROFIT AND REVENUE DRIVERS • Aftersales Business: > €100 million operating profit improvement until 2020 • New possibilities thanks to strengthened Financial Services • Introduction of full service leasing • Increase penetration of financial offers, services and insurance products through ac
Slide 30: Key take-aways
KEY TAKE-AWAYS Ø Reshape product portfolio strategy Ø 100% European passenger carlines with electrified option by 2024 Ø Implement synergies: €1.1 billion p.a. by 2020 / € 1.7 billion p.a. by 2026 Ø Lower break even point to 800,000 units Ø Release Working Capital: €1.2 billion by 2022 Ø Lower wage
Slide 31: Thank you
T H A N K YO U
Slide 32: Carlos Tavares, Chairman of the Managing Board
Carlos TAVARES Chairman of the Managing Board Rüsselsheim, 9 November 2017 DCOM Mensuelle Com Dec 2016 / C2
Slide 33: Bring Opel Vauxhall back on a profitable growth path
BRING OPEL VAUXHALL BACK ON A PROFITABLE GROWTH PATH Market share Financial losses (Europe) (Cumulated) 9.22 % $19bn 5.72 % 1999 2016 1999 2016 2
Slide 34: Organic profitable growth
ORGANIC PROFITABLE GROWTH OPERATIONAL EXCELLENCE DCOM Mensuelle Com Dec 2016 / C2
Slide 35: Build sustainable basis
BUILD SUSTAINABLE BASIS Recurring Operating Margin* Worldwide Unit Sales** Cumulated Free Cash Flow (€bn) *** Automotive Division (in millions) 3.15 Since end 2013 7.3% 1.58 + 1.6 2.9 3.0 8.1 2017 H1 2017 H1 2017 H1 2.8 5.0% 6.0% 5.4 1.8 0.2% 2013 2013 2014 2015 2016 2013 2014 2015 2016 2014 2015 20
Slide 36: Create a European champion
CREATE A EUROPEAN CHAMPION Split of PCD + OV sales per region Size in home region of top-4 worldwide OEMs 1) 3.8 3.6 3.5 3.0 Critical size in home region 2.5 0.7 0.6 0.2 0.2 Home Middle East China South Others North America Europe 30 Japan, Korea & Europe 30 region & Africa America South Asia (Europ
Slide 37: To a global multi brand group
TO A GLOBAL MULTI BRAND GROUP 6
Slide 38: DCOM
DCOM 9 November 2017 DCOM Mensuelle Com Dec 2016 / C2