Metair Investments Limited · JSE:MTA
Metair Investments — Investor Presentation (June 2024)
51 slides from Metair Investments's investor presentation, June 2024
Slide 1: Metair Shareholders Visit
METAIR SHAREHOLDERS VISIT 1
Slide 2: Safety First: Your Closest Exit
SAFETY FIRST Your Closest Exit 2
Slide 3: 2023 Results Presentation
2023 RESULTS PRESENTATION 27 March 2024
Slide 4: Immediate Priorities
IMMEDIATE PRIORITIES Stabilise leadership • Increased HQ strategic control • Hold MDs accountable for agreed KPIs • Appoint new HR executive Comp comm issue Address debt levels • Finalise response to Statement of Objection • Delayed non-critical capital expenditure • Medium to long-term issue • R525
Slide 5: Agenda
Agenda • COMPANY PROFILE • VEHICLE & HARNESS DESIGN COMPLEXITY • RELEASE SUPPORTABILITY & IMPACT • SUPPLY CHAIN IMPACT • HESTO KPIs & OPERATION PERFORMANCE • HESTO FUTURE PROJECTS JUNE 2024 5
Slide 6: Company Profile
COMPANY PROFILE 6
Slide 7: Shareholders: Our Investors
SHAREHOLDERS Our Investors Listed on the JSE 1989 – 2024 74.9% 25.1% 35 years 7
Slide 8: History and Growth
HISTORY AND GROWTH HESTO Harnesses ISUZU factory relocation to Plant C 2024 New Raw Materials and Finished Goods Warehouse 2023 FORD business acquired 2020 Acquired Quantum & Instrument Cluster business 2015 Commenced new Corolla 2007 Production Yazaki investment of 25,1% 2006 Commenced supply of IM
Slide 9: Customers and Models: Who We Supply
CUSTOMERS AND MODELS Who We Supply Hilux Fortuner Corolla Cross Corolla Quest Hi-Ace Ford Ranger VW Amarok 9 Isuzu D Max New Isuzu D Max
Slide 10: Accreditation and Compliance
ACCREDITATION AND COMPLIANCE BBBEE - Hesto is a Level 2 Contributor QUALITY ACCREDITATION IATF 16949 --- Quality ISO 14001 --- Environment ISO 45001 --- OHSAS ISO 50001 --- Energy 10
Slide 11: Organisational Structure: Senior Management
ORGANISATIONAL STRUCTURE Senior Management MANAGING DIRECTOR A number of new appointments from within the Wolfgang Ropertz group at senior level to stabilize the business Group: 35yrs HESTO: 11mnths QUALITY SGM MANUFACTURING DIRECTOR FORD MANUFACTURING SGM TSAM CORPORATE SERVICES DIRECTOR FINANCE DI
Slide 12: Workforce Evolution: Watch Us Grow
WORKFORCE EVOLUTION Watch Us Grow New Ford Plant contributing to noticeable increase in employee headcount 10147 8966 Introduction of New Model 8692 2400 2200 1800 1665 2014 2015 2018/19 2020 2022 2023 2024 12
Slide 13: 2023 Crises and Actions Taken
2023 CRISES AND ACTIONS TAKEN ACTIONS AND PRIORITIES • Brought in Additional Skills – New Management / Structure changes • Assessed and improved control mechanisms and reporting systems - Financial and Operational • Stabilized the supply to Ford and maintained supply to other customers • Persuaded,
Slide 14: Hesto's Plants
HESTO’S PLANTS KwaDukuza, Shakaskraal and Silverton 25 437m² 35 185m² 4 Facilities 3 Locations 89122 m² Under Roof Plant B Plant A 7500m² + Bulk Warehouse 21 000m² Plant C + Toyota FGS Distr SEZ - Pretoria
Slide 15: Plant C
PLANT C - Raw Material Receiving and Storage - Isuzu Production Facility - Toyota / Isuzu Despatch Store 15
Slide 16: Plant C Bulk Warehouse and Finished Goods Areas
PLANT C Bulk Warehouse and Finished Goods Areas 16
Slide 17: Plant C Isuzu Manufacturing
PLANT C Isuzu Manufacturing 17
Slide 18: Awards: Industry Leader
AWARDS Industry Leader Award Toyota TSA Best Small Supplier TSA Most Improved Supplier TMC Crystal Award for Quality TSA Best Supplier Electrical TSA Recognition Award for Cost Reduction TSAM Recognition Award for Safety TSAM Recognition Award for VA/VE TSAM Superior Award for VA/VE TSAM Superior Aw
Slide 19: Harness Families
Technology WHAT WE MANUFACTURE HARNESS FAMILIES Engine Room Chassis Main Body Instrument Instrument Panel Clusters 19
Slide 20: Vehicle & Harness Design Complexity
VEHICLE & HARNESS DESIGN COMPLEXITY 20
Slide 21: Vehicle Overview Toyota
VEHICLE OVERVIEW TOYOTA 01 – LHD Single Cab LHD 02 – LHD Xtra Cab 03 – LHD Double Cab RHD 04 – RHD Single Cab 05 – RHD Xtra Cab LHD 06 – RHD Double Cab 03 -- LHD SUV RHD 03 – RHD SUV 21
Slide 22: Harness Overview Toyota
HARNESS OVERVIEW TOYOTA Product Complexity Overview - General 24 different Wiring Harness families equipping the vehicles 83 different WH Design Drawings 486 different Part Numbers on 274D/438D Project 16.79 hours per car set 1384 different Child Components on the Wiring Harness BOM 1250 circuits pe
Slide 23: Vehicle Overview with PHEV (2024) Ford
VEHICLE OVERVIEW WITH PHEV (2024) FORD 01 – Ford Ranger LHD Single Cab P703 LHD 02 – Ford Ranger LHD RAP Cab 03 – Ford Ranger LHD Double Cab RHD 04 – Ford Ranger LHD Double Cab - PHEV 05 – Ford Ranger RHD Single Cab 06 – Ford Ranger RHD RAP Cab 07 – Ford Ranger RHD Double Cab 08 – Ford Ranger RHD Do
Slide 24: Harness Overview Ford
HARNESS OVERVIEW FORD Product Complexity Overview - General 57 different Wiring Harness families equipping the vehicles 146 different WH Design Drawings (exc. upcoming programs) 1 135 different Part Numbers on P703/J73 Project (exc. upcoming programs) 24.05 hours per car set 2 245 different Child Co
Slide 25: High Level Comparison Toyota & Ford
HIGH LEVEL COMPARISON Toyota & Ford Hilux & Fortuner Ranger / Amarok Ford F150 - USA Total No. Part : 711 Total No. Part : 1 162 Total No. Part : 506 Total Active Parts : 348 Total Active Parts : 860 P702 - 23MY Harness Families : 53 Harness Families: 18 Harness Families : 45 Total No. Part : 415 P7
Slide 26: Release Supportability & Impact
RELEASE SUPPORTABILITY & IMPACT 26
Slide 27: Complexity Overview – Wiring Harness
COMPLEXITY OVERVIEW – WIRING HARNESS GCP (Capacity Plan) vs Releases (Forecasts) Simulated to the Vehicle GCP RELEASE (Forecast) Based on RELEASES Based on GCP (Capacity Plan) – HIGHER WORK CONTENT Supplier Capacity – Constrained Supplier capacity, plant capacity, tooling, Line Plant Capacity – Cons
Slide 28: Planning: Release vs GCP APW by Family
Presented: 31/3/2023 PLANNING Release vs GCP APW by Family, By Composite P703 RHD Composite Releases exceed APW Part Family Total APW 27-Mar 03-Apr 10-Apr 17-Apr 24-Apr 01-May 08-May 15-May 22-May 29-May 05-Jun 12-Jun 19-Jun 26-Jun 03-Jul BODY 3630 4091 2733 3151 3303 2147 3094 3575 3506 3519 3150 9
Slide 29: Supply Chain Impact
SUPPLY CHAIN IMPACT 29
Slide 30: International Landscape: Global Supplier Locations
INTERNATIONAL LANDSCAPE Global Supplier Locations Global Import Supplier Base 14 Sea Ports 1. Antwerp, Belgium 2. Bremerhaven, German 3. Casablanca, Morocco 4. Chicago, USA 5. Cleveland, USA 6. Delhi, Indian 7. El Paso Texas, USA 8. Laem Chabang, Thailand 9. Leixoes, Portugal 10.Manila, Philippines
Slide 31: International Landscape: Global Supplier Base
INTERNATIONAL LANDSCAPE Global Supplier Base Supply Chain Lead times of up to 5 months Global Import Supplier Base Safety stock - Components 14 days / Wire 21 days Plant A Plant B 3192 SKU’s 2403 SKU’s 22 Import Suppliers 67 Import Suppliers No of No of Supplier Name Supplier Name SKU's SKU's 1 Cofi
Slide 32: Local Landscape: Local Supplier Base
LOCAL LANDSCAPE Local Supplier Base Supply Chain Lead times of up to 3 months Local Supplier Base Safety stock – 5 days Plant A Plant B 362 SKU’s 487 SKU’s 18 Local Suppliers 5 Local Suppliers No of No of Supplier Name Supplier Name SKU's SKU's 1 Unitrade 241 1 Unitrade 318 2 Hellerman Tyton 240 2 H
Slide 33: PHEV Project
PHEV PROJECT PLUG-IN HYBRID ELECTRICAL VEHICLE 33
Slide 34: PHEV Program Overview
P703 – PHEV - 2024 Program Overview PHEV – PLUG-IN HYBRID ELECTRICAL VEHICLE GENERAL INFORMATION • Ranger affected only – Not Amarok • Scope = Low voltage wiring only – Not HV • Project cycle time = 5 years • Annual volume = 46K vehicles/year • Job1 = Jan/2025 34
Slide 35: P703 PHEV 2024 Overall Design Impacts
P703 – PHEV - 2024 Overall Design Impacts Wiring Portifolio Change: • 05 New WH Families • 28 New Drawings • 14300 – Battery Output Harness • 14407 – Fuel Tank Jumper • 105 New PHEV PNs • 14H115 – DC Convertor Pwr Dist. Box Harness • 284 DCR for TT [ +13 On Top DCR] • 19703 – Elect A/C Compressor Ju
Slide 36: New Harness Families and New Lines
P703 – PHEV - 2024 New Harness Families New Harness Families New Lines 36
Slide 37: PHEV New Factory Layout
PHEV – New Factory Layout 4 2 1 3 Previous Isuzu Production Area 37
Slide 38: Program & Bundle Changes Impact
PROGRAM & BUNDLE CHANGES IMPACT 38
Slide 39: Design Change Management: Design Changes History
DESIGN CHANGE MANAGEMENT Design Changes History 2273 Design Change Requests 39
Slide 40: Design Change Management: Affected Parts Map
DESIGN CHANGE MANAGEMENT Affected Parts Map and Overall Impacts Design Changes/Harness Family ✓ ALL harness families were affected by at least one design change; 433 385 ✓ Majority (>60%)of the design change requests were considered medium or major impact Number of Design Changes (impacting all the
Slide 41: Hesto KPIs & Operation Performance
HESTO KPIs & OPERATION PERFORMANCE 41
Slide 42: Hesto Performance - Operations KPIs
HESTO PERFORMANCE - OPERATIONS KPIs Across 3 Customers 2022 2023 (Dec) 2024 (Current) EFFICIENCY % 45% 62% 62% TSAM OPR % 77% 90% 82% Scrap % 0 2.48 2.18% TOTAL Heads Qty 3504 3537 3393 EFFICIENCY % N/A 52.0% 56% OPR % N/A 91.2% 92.1% FORD Scrap % N/A 2.48% 2.18% TOTAL Heads Qty 5006 6234 4920 EFFIC
Slide 43: Hesto Quality Performance KPIs
HESTO QUALITY PERFORMANCE KPIs Across 3 Customers 2024 2024 2022 2023 (Dec) (Current) Target DELIVERY SSN 0 0 0 0 TSAM QUALITY PPM 16 2 8 <18 WARRANTY COST N/A N/A N/A 0 DELIVERY SSN N/A 100 85 >81 FORD QUALITY PPM N/A 40 17 <18 WARRANTY COST N/A 0 0 0 DELIVERY SSN 0 0 0 0 ISUZU QUALITY PPM 0 0 0 <2
Slide 44: Hesto Financials
HESTO FINANCIALS HESTO FINANCIALS (000s) FY19 FY20 FY21 FY22 FY23 FY24 -FY32 Actual Actual Actual Actual Actual ESTIMATE Revenue 1,265 1,126 1,641 1,770 5,701 Comprehensive (loss) income 81 -21 -77 -314 -574 Net (liability)/ assets 372 352 274 -39 -631 Vehicles sold Toyota 135,391 99,102 127,254 132
Slide 45: Ford Operation Performance
FORD OPERATION PERFORMANCE 45
Slide 46: Operation Performance: OEE
OPERATION PERFORMANCE Manufacturing Efficiency Improvement Taskforce OEE = Availability x Performance x Quality ▪ Operation performance initially severely affected by some key factors: Ideal Ramp Up Curve Target o Raw material availability Risk o Manufacturing processes maturity o Customer demand in
Slide 47: Operation Performance: Manufacturing Efficiency Improvement Taskforce
OPERATION PERFORMANCE Manufacturing Efficiency Improvement Taskforce ▪ Targets Direct Labor Efficiency Improvement ▪ 1.32M man-hours saving in 2024 ▪ 779 direct heads reduction by Dec/24 ▪ 68 indirect heads reduction by Dec/24 ▪ Strategy: ▪ Manufacturing processes standardization ▪ Optimization of o
Slide 48: Operation Performance: Examples of Actions Taken
OPERATION PERFORMANCE Manufacturing Efficiency Improvement Taskforce EXAMPLES OF ACTIONS TAKEN Cycle time monitoring and work Design Improvement allocation adjustments To reorganize the sub- stations and rebalance the work content Panther Line [12C508] ERM Lines [14290] Sub-Assembly Before: 33 heads
Slide 49: Operation Efficiency Progression
OPERATION PERFORMANCE Manufacturing Efficiency Improvement Taskforce Operation Efficiency Progression 80% ▪ Operation efficiency showing 70% 23B 64% 64% 63% 65% 65% good improvement and positive Model 63% Change trending. 22B 59% 60% Model 58% Change 56% 54% 53% 53% 52% 53% 53% 52% 50% 50% ▪ However
Slide 50: Questions and Answers
QUESTIONS AND ANSWERS 50
Slide 51: Thank You
THANK YOU 51
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