Delphi Italy: Factoring facility to support Transformation Plan financing. May 28th, 2008 Delphi Factoring Tour: Bologna

Transcription

1 Delphi Italy: Factoring facility to support Transformation Plan financing May 28th, 2008 Delphi Factoring Tour: Bologna

2 Delphi : Overview & Vision Leading global supplier of mobile electronics and transportation systems, including powertrain, safety, steering, thermal, and controls & security systems, electrical/electronic architecture, and in-car entertainment technologies Ranked 83 on the 2007 Fortune 500 company list Global manufacturing footprint Strategically located to support our customers Advanced technology and OE quality parts and service Automotive Independent aftermarket, consumer electronics businesses, medical, commercial vehicles or other adjacent-market businesses Vision Be Recognized By Our Customers As Their Best Supplier! 2

3 Delphi: Global Presence U.S. & Canada 31 31, Europe & Middle East 51 52, Total Delphi , Mexico & South America 54 77, Asia Pacific 17 12, As of 09/30/07 3

4 New Delphi Company Overview Operating divisions Electrical / Electronic Architecture Electrical / Electronic Distribution Systems Electrical Centers Connection Systems Powertrain Systems Gas Engine Management Systems Diesel Engine Management Systems Fuel Handling & Evaporative Canisters Electronics & Safety Entertainment & Communications Controls & Security Safety Systems Thermal Systems Thermal Automotive Thermal New Markets Product & Service Solutions Independent Aftermarket Diesel Aftermarket Original Equipment Service Medical Systems 4

5 New Delphi Company Overview Diversified base 500+ Customers 5

6 Delphi Italy Transformation Transit Business Unit: Customer Service Center + Logistics & Warehouses Manufacturing Site DPPS Cinisello Balsamo Customers: Diesel Aftermarket Products: Diesel Aftermarket HC = 20 CSC Torino (E/EA, E&S, Powertrain, Steering, Interior) Customers: Fiat Group and Others Automotive (Tier 1) Products: Wire-Harnesses, Body Computers, Connection Systems,Door- Latches,Injection and Electronic components, EPS, Steering Systems) HC =120 Approx. 500 Employees Sales turnover = 320 mill. /year Multiple customers portfolio (FIAT Group, Tier 1 Automotive customers, and Aftermarket Customers) T&I/DPPS Molinella Customers: FIAT Group, Aftermarket, Allied (Lockeed,etc) Product: Conditioning Systems and Aftermarket products HC = 350 Accounting Service Center (ASC); HC=7 6

7 Delphi Italy Transformation Overview Focus on Manufacturing (7 Manufacturing locations) >1100 Employees High cost manufacturing supply transaction processes Sales = 351 mill. Negative profitability Focus on Customers: (1Manufacturing Locations + 2 Customer Service Centers and Logistics Centers) < 500 Employees Low cost manufacturing supply transaction processes Sales = 334 mill. despite the manufacturing footprint reduction Full recovery of profitability Transformation successful achieving the strategy Required significant Restructuring financing in a challenging environment (--Automotive un-favourable market US Corporation filing Ch11 procedure) 7

8 FACTORING PROGRAM DEPENDENCIES: Cash needs fluctuations High (i.e. European cash pooling) Single factoring program facility Other Managed Working Capital funding facilities (i.e. Payables or Inventory) Single factoring program facility Delphi Italy Multiple factoring program facilities, also on a pan-european perspective Challenge on commission vs. total price Challenge on retention rate Challenge on Legal contractual constrains Explore the possibility of factoring Allied Receivables Other Managed Working Capital funding facilities (i.e. Payables or Inventory) Securitization Programs Multiple factoring program facilities Moderate Low/ Moderate 8 Highly diversified Receivables