Product developments to accomplish the car interior of the future. Iris Wegner Global Intellectual Property Manager at Yanfeng Automotive Interiors

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1 Product developments to accomplish the car interior of the future Iris Wegner Global Intellectual Property Manager at Yanfeng Automotive Interiors

2 Agenda Company Overview Innovation key criteria to success Value Up - Cost Down Heated Armrest Operating Model Innovation 2

3 YANFENG AUTOMOTIVE INTERIORS Yanfeng Automotive Interiors is the world s leading supplier of instrument panels and cockpit systems, door panels, floor consoles and overhead consoles. Headquartered in Shanghai More than 100 manufacturing and technical centers in 17 countries 28,000 employees globally Established in 2015 as a joint venture between Yanfeng Automotive Trim Systems Co., Ltd, a wholly owned subsidiary of Huayu Automotive Systems Co., Ltd. (HASCO), the component group of SAIC Motor Corporation Limited (SAIC Motor), and Johnson Controls a global multi-industrial company. Yan 延 + Feng 锋 = Yanfeng. Translated from Chinese, Yan 延 means inheriting and developing and Feng 锋 means pioneer or leader. The name builds on our history and the strength of the Yanfeng brand. It was created by a merger of two factories in 1978, with the mission to create an industrial pioneer and leader in the Chinese auto industry So the name reflects strong heritage and pioneering spirit. 3

4 Innovation is Essential to Win in Interiors Better life on board through superior automotive interior solutions. Our mission is to be our customers' preferred partner for automotive interior solutions We will do this through our global capabilities and partnerships, imaginative and cost-effective innovations, and execution excellence. The basis for our success will be our people a committed global team with a passion for shaping the future of the interiors industry and delivering sustainable, superior value. 4

5 Our Vision Drives our Innovation Operating Model Better life on board through superior automotive interior solutions. We understand end-consumers automotive interiors needs and desires better than any customer or competitor And we have the right capabilities to translate this insight into solutions (future product concepts) for our OEM customers By being Best Cost in all areas of our business we maximize value for better life on board solutions By making our OEM customers successful so more of our interiors that create better life are used by more people 5

6 Value up & Cost down Innovations Technology highlights at the IAA: Direct Back-Foaming of Leather Reduces investment by using the same tooling and equipment for base (eg. slush or foil) and Leather Full flexibility in product mix and equipment utilization StowSmart Floor Console Customizable storage Customizable storage volumes to best meet the individual consumer s storage needs Eliminates need for extra, loose, removable storage trays Compression Hybrid Molding (CHyM Eco-Lite) Light-Weight Up to 40% mass savings compared to conventional plastic substrates. Unique One-Step Process (compression and injection molding) allows reinforcement of areas where additional structure is needed as with traditional injection molding 6

7 Comfort heating Analyze current situation Define areas for heating Areas close to the passenger/driver preferred Contact heating more preferred 7

8 Heated Door Panel Armrest Benefits: Value-added option for high end vehicle buyers Greater comfort, convenience for consumer Easy to integrate into current production lines Cost effective for OEMs to offer as an option Lightweight solution Collaboration with sub-supplier IEE (Booth A5338) 8

9 Impact of the newly designed armrest on key factors complexity of production comfort conventional armrest conventional armrest + heater new armrest new armrest + new heater 9

10 Three Innovation Centers Cross Functional Expert Teams Global Organization Innovation Center Holland MI, USA Innovation Center Neuss, Germany Innovation Center Shanghai, China >

11 Our Innovation Operating Model Drives Four Elements of our Business Have a view Interior of the future Proactive Customer Engagement Deliver Advantaged Innovation Drive Innovation Culture 11

12 Focus on Three Themes that will have a major impact on our industry Urban SUV segment is the global competitive battleground SUV/CUV is the fastest growing segment in EU, NA and Asia-Pacific New found 4 time 5 Urbanization will increase from 54% to almost Research 70% in & 2050 driving Vision congestion casting and pollution China Luxury will impact globally World biggest luxury goods market since Total luxury consumption hit US$106 billion in 2014, 46% of global Customer World s 2nd largest Fueling market & Feedback of luxury cars priorization will Reviews overtake the US by 2016 Autonomous Driving is arriving with dramatic interior implications Safer Lower cost of ownership Project execution & prototype build 2025 vision next generation 12

13 ID16 Interior of the Future ID16 the result of a unique 2-year process involving our OEM customers and our teams around the world It is a luxury urban SUV interior for the first generation of automated cars with over 30 new solutions to create better life on board Solutions to enhance the ambiance Solutions to increase practical functionality Solutions that let the driver engage in other activities enabled by automated driving 13

14 Automotive Interiors Expo 2016 in Stuttgart Thank you!

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