Zf Commercial Vehicle Control Systems India Limited · NSE:ZFCVINDIA
Zf Commercial Vehicle Control Systems India — WABCO India — Investor Day (September 2017)
35 slides from Zf Commercial Vehicle Control Systems India's investor day presentation, Sep 14, 2017
Slide 1: Welcome: WABCO India Limited Investor Day 2017
WELCOME WABCO INDIA LIMITED INVESTOR DAY 2017 MUMBAI Sept 14 2017 1 WABCO Confidential and Proprietary
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements in this document describing the Company's objectives, projections, estimates and expectations may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied
Slide 3: Sustaining Differentiation
SUSTAINING DIFFERENTIATION WABCO continues to tap into a rich reservoir of organic growth, With proven success in driving technology leadership, and excellence in execution, On a clear path toward enabling commercial vehicle autonomy and connectivity Powered by the passion of a global team 3 WABCO C
Slide 4: About WABCO: The Industry's Technology Innovator
ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY INNOVATOR SALES BY CUSTOMER TYPE In 2016, WABCO had 4% $2.8B 13,000 15 Technology industry firsts 10% 55% Annual Employees in 25% during the last 5 years revenues 40 countries No.1 10 Years 2,500 27 OE Truck & Bus Trailer Car Aftermarket Off-Highway in all BRIC
Slide 5: Anticipating the Evolution of Our Industry
ANTICIPATING THE EVOLUTION OF OUR INDUSTRY Mega Trends Population Growth, Regulatory Urbanization & Increasingly Exponential Push for Greener Complex Growth of New Smart infrastructure Environment Customer Needs Technologies Commercial Segmentation Transportation of Commercial Vehicles Requirements
Slide 6: Constantly Invading New Technology Spaces
CONSTANTLY INVADING NEW TECHNOLOGY SPACES TECHNOLOGY STRATEGY EVOLUTION INDUSTRY VISION OnCity Evasive Maneuver Assist Lane Keep Assist OnGuard Maneuvering OnLane ProView Multi Brand Big Data Analytics Braking System Stability Control Telematic units Diagnostic Active OptiLock Platform Steering Fuel
Slide 7: Expanding Reservoir for Organic Growth
EXPANDING RESERVOIR FOR ORGANIC GROWTH Content per vehicle gap closure between regions fuels technology adoption Advanced Technology Adoption Advanced Technology Adoption ~$3200 Applicable content per vehicle ~$3000 ~$1000 ~$1000 ~$500 ~$300 2014 Today Future * At constant FX 7 WABCO Confidential an
Slide 8: Sustaining Differentiation: Technology Leadership
SUSTAINING DIFFERENTIATION: TECHNOLOGY LEADERSHIP Early anticipation, constant innovation and relentless re-design to cost power the adoption of WABCO technology 8 WABCO Confidential and Proprietary
Slide 9: Technology to Advance Vehicle Efficiency
TECHNOLOGY TO ADVANCE VEHICLE EFFICIENCY A vehicle equipped with all WABCO efficiency technologies can increase fuel economy up to 20% • Blending braking technology • Electrically-sourced compressed air • Scanning for additional opportunities 9 WABCO Confidential and Proprietary
Slide 10: Connectivity: Mobilizing Vehicle Intelligence
CONNECTIVITY: MOBILIZING VEHICLE INTELLIGENCE WABCO uniquely offers insights on truck, trailer and driver performance Other Data Providers Big Data & Analytics Provide a Broad Spectrum of Vehicle Systems Data V2X Platooning (V2V) 10 WABCO Confidential and Proprietary
Slide 11: WABCO Technology for Electrified Vehicles
WABCO TECHNOLOGY FOR ELECTRIFIED VEHICLES FUEL Powered Trucks ELECTRIC Powered Trucks Several million trailers Air Generation in use today need air FuelGuard™ APU to be operated c-comp™ E-APU e-comp™ Clutch Compressor Electric Compressor Electrification No AMT in electric Air Actuation trucks but el
Slide 12: WABCO's Leading Fleet Management Solutions
WABCO’S LEADING FLEET MANAGEMENT SOLUTIONS DIFFERENTIATED ACROSS DIFFERENT WITH A GROWING PENETRATION FMS PRODUCTS MARKETS Premium solution 3 year contract value* FMS Penetration WABCO M&A - large fleets 5 year* 1.7% Standard solution - small fleets Europe Acquired 30% 55% Transics ~$1800 Entry so
Slide 13: WABCO Blue-Print for Autonomous Driving
WABCO BLUE-PRINT FOR AUTONOMOUS DRIVING 360° 360 sensing o sensing CONNECT Predictive control: - Predicts traffic situation - Learns behaviors - Defines system reaction Braking Active - 100ms cycle system Steering Reactive Control: Stability - Measures vehicle situation Control - Safety critical Dyn
Slide 14: Acquisition of Steering Technology Enables Full Control of Vehicle Dynamics
ACQUISITION OF STEERING TECHNOLOGY ENABLES FULL CONTROL OF VEHICLE DYNAMICS Establishing a gateway to more advanced levels of automation Globalize existing steering solutions Develop and introduce cost-efficient active steering • Established in 1837 solutions globally together with Nexteer Automotiv
Slide 15: Sustaining Differentiation: Globalization
SUSTAINING DIFFERENTIATION: GLOBALIZATION SALES BY REGION • Globalized ahead of the curve Europe Americas • #1 in all emerging markets Asia • Frugal mindset deployed globally 2007 2016 • A globally integrated supply chain 2016 BEST COST COUNTRY (BCC) RESOURCES • India developed as a powerful second
Slide 16: A Differentiating Global Engineering Team
A DIFFERENTIATING GLOBAL ENGINEERING TEAM Powerful global development team blends and leverages broad expertise, extensive industry knowledge and Global frugal engineering principles Development Global Development Skilled application engineers in all key regions provide excellent customer connectivi
Slide 17: A Differentiating Global Team
A DIFFERENTIATING GLOBAL TEAM Broad system and Frugal engineering vehicle expertise Strength in technology Advanced Best Best Rich software and innovation Technology Solution Cost expertise Advanced technologies at best cost 17 WABCO Confidential and Proprietary
Slide 18: WABCO India
WABCO INDIA 18 WABCO Confidential and Proprietary
Slide 19: WABCO India The Growth Engine
WABCO INDIA THE GROWTH ENGINE Continue to leverage on regulation Sales to OEMs through advanced technology offerings, increased sales to non CV customers and smart digital solutions Increased sales to after market through new channels, new business models and new products India manufacturing and eng
Slide 20: WABCO India – No. 1 Supplier to Indian Market
WABCO INDIA – NO. 1 SUPPLIER TO INDIAN MARKET • 2009 WABCO takes majority control in the brakes division of Sundaram Clayton Limited - WABCO TVS • 2011 WABCO TVS became WABCO INDIA Limited Market leader for five decades 2015 Sales of ₹ 2260.57 Crores in 2016 - 17 2013 4434 employees (516 engineers)
Slide 21: India Legislation – Status and Forecast
INDIA LEGISLATION – STATUS AND FORECAST Legislation requires installation of Safety and Emission Control Systems red = in discussion Type Status 2016 2017 2018 2019 2020 2021 2022 2023 (August 2017) BS IV (Nation wide) BS VI (Nation wide) Emission / BS IV Efficiency BS VI Fuel Efficiency targets for
Slide 22: WABCO India Strategy to Drive Topline Growth
WABCO INDIA STRATEGY TO DRIVE TOPLINE GROWTH Key strategies to sustain outperformance in the market Increase Expand Product Offering Smart Penetration of Portfolio Digital Solutions Advanced Horizontally Technologies Door Ctrl System AMT Smart Suspension Trailer Axles FMS ADB Vehicle Harness ITS (In
Slide 23: Driving Growth Through Differentiating Creativity in Aftermarket
DRIVING GROWTH THROUGH DIFFERENTIATING CREATIVITY IN AFTERMARKET • Expanding the service network through addition of new Authorized Service Centers • Capitalizing on retro fitment as a successful revenue stream • Developing unique solutions for Indian market ̶ Performance enhancement kits WABCO SERV
Slide 24: Sales Strategy Aftermarket
SALES STRATEGY AFTERMARKET Providing fleets with operational savings thru cost efficiency Key objectives Fleet activities Key drivers • Increase AM sales Zero break down; • ADB Preventive maintenance • Diversify in FMS WS Tools • ECAS FC Kits • Create pull in OEMs Conv. Product • AMT through retrofi
Slide 25: AM Growth Evolution
AM GROWTH EVOLUTION ABS Retro kits to cater OMC trucks. Trailer ABS, EBS, Air Performance Enhancer/ Fitness Certificate Kits . suspension with 04 ECAS,Air Disc Brake 03 05 Specific repair kits ABS Retro Kits Digital Products formation PE Kits/ FC Kits Advanced retro 02 Products 06 FMS products Repai
Slide 26: WIN FMS Road Map
WIN FMS ROAD MAP 2020 (V2V) 2017 (Advance) 2019 (Solution Provider) • Advance Telematics 2018 Solution (Advance Level) • Automatic Driver’s • Trailer management training module • Ecommerce solution for 2017(Mid Stage) • Terrain based vehicle logistics • Remote vehicle speed control diagnostics • Tol
Slide 27: WABCO India's Increasing Capability
WABCO INDIA'S INCREASING CAPABILITY Centre of excellence for select products Design and manufacturing of subsystem for global OEMs Design and Manufacturing of global products Local manufacturing of global product Supplier of components for global needs Supplier to domestic OEMs 2006 2008 2010 2012 2
Slide 28: Export Excellence
EXPORT EXCELLENCE WABCO Mahindra City Plant was awarded for Export Excellence by Government of India, Ministry of Commerce and Industry , based on the Export performance in Engineering Sector. The Companies in Export Processing Zone are awarded based on the performance in 3 categories ; Growth , Emp
Slide 29: WABCO India Business Performance
WABCO INDIA BUSINESS PERFORMANCE OVERALL SALES IN M$ OPERATING RESULT IN $M AND 294 OPERATING MARGIN IN % 17% 236 182 16% 22% 145 148 17% 12% 51 32 25 37 22 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 CUSTOMER Exports MARKET OUTPERFORMANCE CONTRIBUTION INCOME IN $M AND CONTRIBUTION MARGIN IN %
Slide 30: Share Price Trend
SHARE PRICE TREND 8000 7000 6000 5000 4000 3000 2000 1000 0 18-Jun-09 18-Jun-10 18-Jun-11 18-Jun-12 18-Jun-13 18-Jun-14 18-Jun-15 18-Jun-16 Source: National Stock Exchange Solid generation of shareholder value 30 WABCO Confidential and Proprietary
Slide 31: WABCO India Operations Performance
WABCO INDIA OPERATIONS PERFORMANCE ZER0 KM PPM GROSS MATERIAL PRODUCTIVITY 8.11% 74 51 26 14 13 5.52% 12.73% 7.13% 8.14% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 SAFETY PERFORMANCE (LOST WORKDAY CASES) CONVERSION COST PRODUCTIVITY 11.6% 3 2 2 3 1 12% 9.4% 10.1% 10.9% 2012 2013 2014 2015 201
Slide 32: Value in OE Customer Partnership Recognized Through Awards
VALUE IN OE CUSTOMER PARTNERSHIP RECOGNIZED THROUGH AWARDS VECV’s award for “Outstanding contribution to Cummins India “Best Supply Chain Transformation” award Technology Innovation” 32 WABCO Confidential and Proprietary
Slide 33: Awards and Accomplishments
AWARDS AND ACCOMPLISHMENTS Special recognition award in CII-IQ First Prize in ACMA Northern region Second Prize in IMTMA National Productivity National Safety practice competition – May 2017 Zonal quality circle competition – June 2017 Championship competition – August 2017 First and Second Prizes f
Slide 34: Discussions
DISCUSSIONS 34 34 WABCO Confidential and Proprietary
Slide 35: Thank You
THANK YOU 35 WABCO Confidential and Proprietary