more than brakes. London, 22 nd June

Transcription

1 more than brakes. London, 22 nd June

2 Understanding the fundamentals What makes us different Passion to innovate Q1 Results

3 The market Mature and oligopolistic 4 players: >65% of the market

4 A simple business idea Producing the highest performing brakes in the world

5 The mass volume tons e = ½ mv 2 6,0 5,0 4,0 3,0 Energy level 2,0 1,0 Average kmh

6 The premium segment tons e = ½ mv 2 6,0 5,0 4,0 3,0 Energy level Challenging 2,0 1, kmh

7 The luxury and sport segment tons e = ½ mv 2 6,0 5,0 4,0 3,0 Energy level High to extreme 2,0 1, kmh

8 Where high energy is into play, Brembo is the reference choice tons e = ½ mv 2 5,0 4,0 3,0 2,0 1, kmh

9 A simple business idea Producing the highest performing brakes in the world for a wide range of applications

10 A wide range of vehicle applications World leader in luxury and top of the range automotive applications Passengers Cars: Top 10% of world production

11 A wide range of vehicle applications Motorcycle: Powered two wheels >500 cc.

12 A wide range of vehicle applications Commercial vehicles: light and medium trucks up to 6.5 tons

13 A wide range of vehicle applications Racing : 100% top teams equipped with group products

14 A wide range of vehicle applications Aftermarket: the widest range of product offered

15 A focused and dedicated organization Communication Marketing Finance Business Development R&D I.C.T. CEO G.M. Human Resourc es Quality & Env. Process Tech Syst Legal Purchasing Pass. cars Commercial Vehicles Bikes Racing A.M.

16 State of the art technology

17 Understanding the fundamentals What makes us different Passion to innovate Q1 Results

18 Our unique selling proposition Performance Bite Power Repeatability Comfort With every vehicle in every condition Style Design Brand Novelty at a reasonable price

19 Performance involves a complex challenge tons 6,0 5,0 4,0 e = ½ mv 2 From 360 to 95 Km/h in 2.9 sec. = 1,8 MW (2448 H.P.) 3,0 (2005 Monza F1 GP) 2,0 1, kmh

20 The answer to extreme challenges Research and development of new materials, new technologies

21 Carbon Ceramic brake disc Ferrari - Challenge Stradale MercedesS SLR McLAREN

22 Our unique selling proposition Performance Bite Power Repeatability Comfort With every vehicle in every condition Style Design Brand Novelty at a reasonable price

23 Comfort YESTERDAY: a minor issue TODAY: fundamental for perceived quality We needed to re-think product and process from the comfort point of view (NVH) KEY ISSUES: Project Methodology NVH Noise Vibration Harshness

24 Comfort 2008 Complete development Service Assistance Cooperation Project and Technical assistance Framework and responsibility on full system Quantitative evolution of NVH activity required by customers

25 Comfort Road testing Bench testing NVH simulation 100% Qualitative evolution of NVH activity required by customers NEW METHODOLOGIES

26 Our unique selling proposition Performance Bite Power Repeatability Comfort With every vehicle in every condition Style Design Brand Novelty at a reasonable price

27 Working on two of the key decision areas 22% Styling / Exterior Engine / Transmission Ride / Handling / Braking 12% Comfort / Convenience Seats Sound System Heating / AC / Ventilation Cockpit Source: JDPower- US Brake Quality Study 2005

28 Wheels are more and more open Discs and calipers are more visible

29 Performance delivered with style Some examples of style study by Brembo Morgan Stanley Auto Conference - London, 22nd June

30 Compasso D Oro Award 2004 If it were not a brake, it would be a sculpture worthy of any museum of modern art. The Panel s statement

31 Our unique selling proposition Performance Bite Power Repeatability Comfort With every vehicle in every condition Style Design Brand Novelty at a reasonable price

32 At a reasonable price Industrial excellence through the Brembo Productions System Technology Innovation and Lean Production 6 S SMED TPM HOSHIN KANBAN PROCESS IN-DEPTH ANALYSIS

33 At a reasonable price The efficiency road Poland : new foundry and machining plant Opening ceremony : 20 February 2006 Ramp-up until July 2006; full capacity: Jan (depending on speed of parts homologation) Total investment : 45 million Expected sales : million

34 At a reasonable price The efficiency road Italy : Restructuring of disc production plants Maintenance and transfer of machines by end 2006 (3 to 6 months delay compared to the original time schedule due to high demand). New machining plant integrated with existing foundry: SoP July 2006, full capacity end 2006.

35 At a reasonable price Getting ready for the future India : 50/50 JV Start of activity of the JV: 4 February 2006 Total investment: 6.5 million JV not consolidated Location: Pune (Bombay) Applications: motorcycles

36 At a reasonable price Getting ready for the future China : greenfield plant Total investment: 15 million JV with SIMEST as financial partner Expected sales: 20 million (2008) Location: Beijing Application: pass. cars and light commercial vehicles

37 Understanding the fundamentals What makes us different Passion to innovate Q1 Results

38 Passion to innovate Market Marketing of Innovation: to discover customer s needs R & D innovative projects Application area Transforming Innovation in added-value

39 Passion to innovate Market Drivers of Success vision creativity discipline processes and methods steering and focusing creativity

40 Passion to innovate 600 persons dedicated to product and process development of which 300 engineering, specialists, technicians 50 persons dedicated to advanced research: meccatronic, new material, electronic All of them engaged to bring INNOVATION to our customers

41 Passion to innovate 250 new designs every year 6% of revenues invested in R&D 10% of associates active in R&D in a 5 year time frame complete renewal of the range of products 5 different Business Units, each leading its own segment

42 Passion to innovate The first industrial company in Italy to create the Intangible Value Report

43 Understanding the fundamentals What makes us different Passion to innovate Q1 Results

44 Sales growth Q Mln Q1 05 Q , % Forex +2.0% Business +12.2% Scope / Vol/Mix % Prices -0.9 %

45 Gross sales business segment Q Car +11.8% Motorbike Comm.vehicle +15.4% +10.9% Racing +28.4% Total %

46 Cost structure evolution % of sales Q1 06 Q1 05 Sales ( mio) Personnel expenses Cost of goods sold EBITDA 20.0% 20.0% 65.1% 64.8% 14.9% 15.2%

47 EBITDA margin evolution Q % 16% 2.0% 0.9% 1.0% 14% 0.3% 12% 15.2% 14.9% 10% 8% Ebitda Q105 Vol/Mix Selling Prices Raw Materials Operations Ebitda Q106

48 Cost structure evolution % of sales Q1 06 D&A 4.4% Q % EBIT 10.5% 9.8% Financial charges (1.3%) (1.3%) Tax rate 39.2% 38.4% Net income 5.4% 5.2%

49 Cash-flow Q millions NFP 31/12/05 Ebitda Investments NWC Fin. Charges + tax NFP 31/3/06

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