DELPHI Delphi Presentation

Transcription

1 4.10. Delphi Presentation DELPHI Electronics and Safety 19.7% of sales Powertrain Systems 29.5% of sales Electrical/Electro nic 40.7% of sales Thermal Systems 11.6% of sales Headquarters Key figures Group sales Group operating profit Capital investment R&D expenses billion 0.71 billion 0.38 billion 0.75 billion Fiscal year ended December 31 st, 2010 Michigan, US Delphi is a global supplier of mobile electronics and transportation components, including powertrain, controls and security systems, electrical/electronic architecture, and infotainment (carentertainment) technologies. As of December 31, 2010, Delphi employed approximately 12,000 engineers, scientists and technicians at its 111 manufacturing locations and 14 major technical centres in 30 countries worldwide, with over one-half focused on electronic products. Delphi s main technical centers are located as follows: 5 in North America, 4 in Europe, Middle East and Africa, 4 in Asia Pacific and 1 in South America. Delphi s world headquarters is located in Troy, Michigan. However, it also established regional headquarters in Sao Paulo (Brazil), Shanghai (China) and Bascharage (Luxembourg). Geographic span of sales North America 33.3% of group sales value Europe, Middle East, & Africa 42.7% of group sales value Asia Pacific 15.8% of group sales value South America 8.3% of group sales value 182

2 4.10. Delphi Description of business SEGMENT % OF SALES OPERATING MARGIN DESCRIPTION ELECTRONICS AND SAFETY POWERTRAIN SYSTEMS 19.7% 5.4% 29.5% 4.7% Design and manufacture of parts and systems in audio and infotainment, body controls and security systems, displays, mechatronics, safety electronics and electric and hybrid electric vehicle power electronics. Advanced development of software. Design of diesel and fuel handling and full endto-end systems including fuel injection, combustion, electronics controls, exhaust handling etc. Serves both the automotive aftermarket and the original equipment manufacturers. ELECTRICAL/ELECTRO NIC ARCHITECTURE 40.7% 9.6% Design and manufacturing of complete electrical architecture and components. THERMAL SYSTEMS 11.6% 4.2% Heating, ventilating and air conditioning (HVAC) systems, components for multiple transportation, powertrain cooling and related technologies etc. 183

3 4.10. Delphi Corporate strategy Streamlining operations Fostering growth The company s profitability between was constantly below the line. Thus, Delphi proceeded to a fundamental reorganisation and transformation of its manufacturing capacity, including the closure of several inefficient facilities, and the exit or disposal of non-core activities. In order to cut general and administrative expenses, the number of employees was reduced, and the rationalisation of manufacturing and engineering processes were implemented. This meant several plant closures, primarily in Europe. The Powertrain Systems segment relocated part of operations to lower cost regions such as Eastern Europe and Asia Pacific. As a result, Delphi achieved a positive operating result in 2010, and it aims to improve it in upcoming years. Delphi believes that several key operational trends are reshaping the automotivepart industry: consumer demand for improved vehicle performance, enhanced functionality and affordable options for communication in vehicles, as well as increasingly stringent regulatory standards for energy efficiency, emissions reduction, and increased safety. Furthermore, OEMs are expanding the electronic and technological content of vehicles (Delphi s core business, generating over 40% of revenues) in order to achieve substantial reductions in weight and mechanical complexity, resulting in easier assembly, enhanced fuel economy, improved emissions control and better vehicle performance. These megatrends constitute new growth opportunities for Delphi, which intends to further develop innovative products which respond to new consumer demand. 184

4 4.10. Delphi Recent events August 2010 September 2010 January 2011 March 2011 May 2011 June 2011 Delphi expands its parts operation, training and service centre network in Russia, Central and Eastern Europe. With over 70% of cars in Russia being over ten years old, demand for replacement parts and servicing will increase significantly. Additionally, Delphi plans to take advantage of a large segment of heavy duty diesel vehicles, with the overall number of diesel vehicles in Russia expected to grow by 30% in the next three years. Delphi extends its global product portfolio introducing over 540 new parts to its chassis product offering (including 65 brake pads, 103 brake discs, 105 brake hoses, 70 calipers and 200 steering parts, with another 300 parts planned throughout the remainder of 2010). Delphi counts on its Diesel Common Rail product to secure growth in Western Europe, as diesel engine penetration is around 50% in the region s passenger car market, and set to grow substantially in Central and Eastern Europe. Recently, Delphi announced it is supplying its Multec Diesel Common Rail system for the new 1.2 litre, 3 cylinder Volkswagen Polo BlueMotion. Delphi s navigation radio platform will be fitted on the Audi A6 Sedan and Audi A7 Sportback: Delphi Automotive's Connectivity Navigation Radio (CNR) platform allows Audi to configure its vehicles with simple software upgrades to offer over 20 variations of a new infotainment platform. Delphi continues to invest in the Spanish aftermarket, where it is inviting new garages to join its Service Centre network (which comprises over 600 garages across Europe) supported by a new training centre, enhanced product portfolio and marketing. Delphi renews its motorsport cooperation with Peugeot: supplying advanced diesel technologies for all types of vehicles where it has achieved several groundbreaking innovations such as the twin valve Electronic Unit Injectors for heavy duty applications and, direct acting injectors for advanced light duty applications. Delphi opens a new wiring harness assembly plant in Romania, where it presently operates three plants, employing over 10,000 people at facilities that manufacture wiring harnesses and components for high-precision diesel common rail systems. 185

5 4.10. Delphi Key data Delphi s group sales Delphi s headcount 16 units: billion euros; annual % change 20% 180,000 units: billion euros; annual % change in sales : % 160, , % 120, % 100,000 80, % 60, % 40,000 20, % Delphi is a key global supplier of automotive parts, mainly mobile electronics controls and security systems, electrical/electronic architecture, and in-car entertainment ttechnologies. Delphi s significantly improved total sales during 2010 in line with increased car production after two years of declining sales. However, current car production levels continue to be considerably lower than production volumes prior to the economic and credit market disruptions in 2008 and Accordingly, sales in excess of 10 billion euros achieved in 2010 are far from the figures (over 14 billion euros). 186

6 4.10. Delphi Key data Delphi s operating profit unit: billion euros Delphi s operating margin unit: profit over sales ratio % 5% 0% -5% % -15% -20% -25% As a result of the significant restructuring actions implemented, Delphi managed to reduce its cost structure and achieved a markedly improved operating margin in 2010, after 4 previous years in the red. Consequently, operating margin rose in excess of 5%. In upcoming years, Delphi expects raw material price volatility (particularly related to copper, aluminum and petroleum-based resin products), to impact its profitability. In order to offset this, Delphi intends to continue restructuring measures so that it aligns its manufacturing operations with current car production levels and to move several manufacturing bases to lower cost locations. 187

7 4.10. Delphi Key data Delphi group s sales by segment unit: billion euros Delphi group s sale performance by segment unit: annual change in % Thermal Systems 12% Electronics and Safety 19% -35.2% Thermal Systems 16.5% Electrical /Electronic Architecture 40% Electrical/Electronic Architecture -32.5% Powertrain Systems -23.9% 12.8% 31.0% Powertrain Systems 29% -36.6% Electronics and Safety 6.3% -40% -20% 0% 20% 40% Electronics and Safety (component and systems integration expertise in audio and infotainment, body controls and security systems etc.) with a 19% share, Powertrain Systems (systems integration in gasoline, diesel and fuel handling etc.) with a 29% share, Thermal Systems, (heating, ventilating and air conditioning - HVAC systems, etc.) with 12% and especially its Electrical/Electronic Architecture division (complete electrical architecture and component products) with a 40% share make up for the company s sales in All divisions experienced improved results in 2010, after marked declines in 2009 (in the order of 20 to 37%). 188

8 4.10. Delphi Key data Delphi group s sales by region unit: billion euros Delphi group s sale performance by region unit: annual change in % Asia Pacific 16% South America 8% North America 33% -38.1% South America 75.4% -29.9% Asia Pacific 78.4% -52.1% Europe, Middle East, & Africa 76.9% Europe, Middle East, & Africa 43% -55.6% North America 47.0% -60%-40%-20% 0% 20% 40% 60% 80% Delphi s main markets are EMEA (Europe, Middle East, Africa) accounting for over 43% of sales, followed by North America with a 33% share. Developing regions accounts for a lower percentage of sales: 16% for Asia Pacific while only 8% for South America. The company s sales recovered in all regions in 2010, with emerging markets experiencing remarkable growth (75.4% in South America and nearly 80% in Asia-Pacific). 189

9 4.10. Delphi Key data Delphi Group s research and development Delphi Group s capital expenditure 1.6 units: billion euros; research and development over sales ratio 12.0% 0.7 units: billion euros; capital expenditure over sales ratio : 5% 10.0% % 0.5 4% % % 0.2 3% 2.0% % 0.0 2% : Delphi s research and development activities (including engineering) are critical to ensuring a technologically advanced product portfolio. However, in order to effectively manage costs and rationalise capital spending, Delphi has reduced R&D budget in line with the overall reductions in net sales. Supplier selection in the auto industry is generally finalized several years prior to the start of production of the vehicle. Therefore, Delphi s current capital expenditures are driven by previous customer deals and was distributed as follows: for the Electronics and Safety division 44.5 million, for Powertrain Systems million, for Electrical/Electronic Architecture million and for Thermal Systems 26.4 million. 190

10 4.10. Delphi Statistical tables Delphi Group s net sales units: billion euros; annual change in % Year Sales Annual % change n.a % % % % Delphi Group's sales by region units: billion euros; annual change in % Segment Sales 2010 Sales 2009 Sales annual % change 2009 annual % change North America % -55.6% Europe, Middle East, & Africa % -52.1% Asia Pacific % -29.9% South America % -38.1% 191

11 4.10. Delphi Statistical tables Delphi Group s net sales by segment units: billion euros; %: Segment Sales 2010 Sales 2009 Sales annual % change 2009 annual % change Electronics and Safety % 21.8% Powertrain Systems % 30.8% Electrical/Electronic Architecture % 36.5% Thermal Systems % 11.7% Delphi Group s research and development units: billion euros; % of R&D expenses over sales Year R&D R&D ratio % % % Delphi Group s capital expenditure units: billion euros; % of capex over sales Year Capex Capex ratio % % % % % 192