The automotive components industry 1
Automotive sales turnover and earnings 100% 80% 60% 32% 11% 8% 1% 58% Used car Used car Spare parts Spare parts 40% 20% 0% 49% 36% 5% Financial services Financial services New cars New cars 2
Growth of automotive supply industry 2015 scenario Growth of the global automotive market Increase of passenger car value Value creation by automotive suppliers Growth driver: emerging markets Growth driver: electronics Growth driver: outsourcing 10-20% 30-40% 15% Source: Mercer Management Consultant 3
Global motor vehicle market Total Emerging markets 57,2 14,4 +2,2% p.a. 76,2 24,4 Triad market 42,8 51,8 2002 2015 Year Source: Mercer Management Consultant 4
Increase of car value Average passenger car price (Euro) 15300 17800 20000 22100 25600 9 500 1983 1990 1995 2000 2003 2008 Year 5
Value creation by automotive suppliers (R&D and production) +2,6% p.a. 903 Total 645 203 OEMs Suppliers 228 417 (65%) 700 (77%) 2002 2015 in billion Source: Mercer Management Consultant 6
Main modules: share of OEM / supplier Value creation shift from OEMs to suppliers 2002 (billion EUR) Increase p.a. C h a s s is 2 4 7 8 1,2% P o w e r t r a in 2 0 3 4 5,9% E n g in e / a u x ilia r y s y s t e m s 5 7 5 7 3,3% billions B o d y - s t r u c r u r e B o d y - e x t e r io r 2 3 2 3 8 4 8 19,5% 3,7% In t e r io r 2 1 1 0 7 0,5% E le c t r ic a l/ E le c t r o n ic s 2 0 1 0 7 7,2% 0 2 0 4 0 6 0 8 0 1 0 0 1 2 0 7
Value added Electric / Electronics (billion, worldwide) 316 350 300 250 200 127 264 Suppliers 150 100 50 0 107 20 52 OEMs 8
Value creation (R&D and production) 2002 2015 6% 3% 4% 1% 2% 18% 7% 4% 4% 1% 5% 14% ROW South America India South Korea China Japan 35% 30% NAFTA 32% 35% Europe 9
Automotive sector in Europe Allem agne France Grande- Italie Espagne Suede Belgique Portugal Autriche Pays-Bas Luxem bourg Denm ark Finlande Irlande 9 7 7 4 29 28 20 53 68 187 154 296 256 772 0 200 400 600 800 People employed (thousands) 10
Automotive sector in Luxembourg 11
Automotive R&D in Europe Global R&D expenses: OEMs: 54 billion Euros in 2000 Suppliers: 63,8 billion Euros in 2000 38% of total automotive R&D expenses operated in Europe Automotive R&D expenditures account for 19% of total European manufacturing R&D costs 90% of innovations in electronics and software 12
Luxembourg in the middle of the vehicle manufacturer community 22 light vehicle production plants within a 300 km radius 51 light vehicle production plants within a 600 km radius 13
Component industry in Luxembourg More than 1,5 billion sales turnover in 2002 Equal to 0,4 % of EU sales turnover in the automotive components industry Highest per capita automotive components turnover in EU Approx. 10.000 employees Exporting to 5 continents Major export countries are: Germany, France, Italy, UK, Japan, Spain, USA Major Japanese customers: 14
Automotive components made in Luxembourg Laminated windshields Occupant sensors Tempered backlites Fuel venting systems Battery boxes Cooling compartments and boxes Temperature sensors Thermostats Heating Level sensors Tyre reinforcement fabric Certification Type approval Test equipment Valves (LPG&CNG) Security valves Instrumentations Axes for wipers Tyres Fiber covering Carpets and insulation Sound proofing products SNCH Homologations 15
Automotive product areas Metal industry Arcelor S.A. Ewald Giebel Luxembourg S.à r.l. Galvalange S.à r.l. Hydro Aluminium Clervaux S.A. Pechiney Eurofoil Luxembourg S.A. Tyre Industry Goodyear S.A. Trefilarbed Bettembourg S.A. Textilcord Steinfort S.A. Glass Guardian S.A 16
Automotive product areas Fuel supply and exhaust components Cerametal S. à r.l. Delphi S.A. Raval Europe S.A. Rotarex S.A Starting and ignition Accumalux S.A. Amer-Sil S.A. Delphi S.A. 17
Automotive product areas Interior and exterior trim components Airtech Europe S.A. Eurocomposites Faurecia SIA Automotive Silux S.A. Tarkett Sommer Luxembourg S.A. Technofibres S.A. Thermal components Elth S.A. Delphi S.A. Dometic S.à r.l. 18
Automotive product areas Sensors Delphi S.A. Elth S.A. IEE S.A. Equipment GE Fanuc S.A. Hitec S.A. Husky CTI Type approval and certification Luxcontrol S.A. SNCH S.à r.l. TÜV Rheinland S.A. 19
Automotive R&D in Luxembourg Two public technical research centres Public University in foundation phase 2.200 employees in R&D Most important automotive R&D companies are: Goodyear Delphi IEE ELTH Guardian Automotive 20