Morgan Stanley Auto Conference - London, 22nd June - Brembo
Morgan Stanley Auto Conference - London, 22nd June - Brembo
Morgan Stanley Auto Conference - London, 22nd June - Brembo
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<strong>London</strong>, 22 nd <strong>June</strong><br />
than<br />
brakes.
Understanding the fundamentals<br />
What makes us different<br />
Passion to innovate<br />
Q1 Results<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
The market<br />
Mature<br />
and<br />
oligopolistic<br />
4 players: >65%<br />
of the market<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
A simple business idea<br />
Producing<br />
the highest<br />
performing<br />
brakes in<br />
the world<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
The mass volume<br />
tons e = ½ mv 2<br />
6,0<br />
5,0<br />
4,0<br />
3,0<br />
2,0<br />
1,0<br />
Average<br />
Energy level<br />
10 50 100 150 200 250 300 350 kmh<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
The premium segment<br />
tons e = ½ mv 2<br />
6,0<br />
5,0<br />
4,0<br />
3,0<br />
2,0<br />
1,0<br />
Energy level<br />
Challenging<br />
10 50 100 150 200 250 300 350 kmh<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
The luxury and sport segment<br />
tons e = ½ mv 2<br />
6,0<br />
5,0<br />
4,0<br />
3,0<br />
2,0<br />
1,0<br />
Energy level<br />
10 50 100 150 200 250 300 350 kmh<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
High to<br />
extreme
Where high energy is into play, <strong>Brembo</strong><br />
is the reference choice<br />
tons e = ½ mv 2<br />
5,0<br />
4,0<br />
3,0<br />
2,0<br />
1,0<br />
0<br />
10 50 100 150 200 250 300 350<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
kmh
A simple business idea<br />
Producing<br />
the highest<br />
performing<br />
brakes in<br />
the world<br />
for a wide<br />
range of<br />
applications<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
A wide range of vehicle applications<br />
• World leader in luxury and top of the range<br />
automotive applications<br />
• Passengers Cars: Top 10% of world production
A wide range of vehicle applications<br />
• Motorcycle: Powered two wheels >500 cc.<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
A wide range of vehicle applications<br />
• Commercial vehicles: light and medium trucks<br />
up to 6.5 tons<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
A wide range of vehicle applications<br />
• Racing : 100% top teams equipped with<br />
group products<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
A wide range of vehicle applications<br />
• Aftermarket: the widest range of product offered<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
A focused and dedicated organization<br />
Pass. Pass.<br />
cars cars<br />
Finance<br />
Business<br />
Development<br />
Commercial<br />
Commercial<br />
Vehicles Vehicles<br />
Communication Marketing<br />
R&D<br />
I.C.T.<br />
CEO<br />
G.M.<br />
Human<br />
Resourc<br />
es<br />
Quality<br />
& Env.<br />
Process<br />
Tech Syst<br />
Legal<br />
Purchasing<br />
Bikes Bikes Racing Racing A.M. A.M.
State of the art technology<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Understanding the fundamentals<br />
What makes us different<br />
Passion to innovate<br />
Q1 Results<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Our unique selling proposition<br />
Performance Bite<br />
Power<br />
Repeatability<br />
Comfort<br />
at a reasonable price<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
With every vehicle in<br />
every condition<br />
Style<br />
Design<br />
Brand<br />
Novelty
Performance involves a complex challenge<br />
tons<br />
6,0<br />
5,0<br />
4,0<br />
3,0<br />
2,0<br />
1,0<br />
e = ½ mv 2<br />
From 360 to 95 Km/h in<br />
2.9 sec.<br />
= 1,8 MW (2448 H.P.)<br />
(2005 Monza F1 GP)<br />
10 50 100 150 200 250 300 350 kmh<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
The answer to extreme challenges<br />
• Research and development of new materials,<br />
new technologies<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Carbon Ceramic brake disc<br />
Ferrari - Challenge Stradale<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
MercedesS SLR McLAREN
Our unique selling proposition<br />
Performance<br />
Bite<br />
Power<br />
Repeatability<br />
Comfort<br />
at a reasonable price<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
With every vehicle in<br />
every condition<br />
Style<br />
Design<br />
Brand<br />
Novelty
Comfort<br />
YESTERDAY: a minor issue<br />
TODAY: fundamental for perceived quality<br />
• We needed to re-think product and process from<br />
the comfort point of view (NVH)<br />
• KEY ISSUES:<br />
– Project<br />
– Methodology<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
NVH<br />
Noise<br />
Vibration<br />
Harshness
Comfort<br />
Service<br />
Assistance<br />
Cooperation<br />
• Project and<br />
Technical<br />
assistance<br />
1985 1995 2005<br />
Quantitative evolution of NVH activity required by customers<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
• Framework and<br />
responsibility on full<br />
system<br />
2008<br />
Complete development
Comfort<br />
100%<br />
Road<br />
testing<br />
Bench<br />
testing<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
NVH<br />
simulation<br />
1985 1995 2005 2008<br />
Qualitative evolution of NVH activity required by customers<br />
NEW<br />
METHODOLOGIES
Our unique selling proposition<br />
Performance<br />
Bite<br />
Power<br />
Repeatability<br />
Comfort<br />
at a reasonable price<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
With every vehicle in<br />
every condition<br />
Style<br />
Design<br />
Brand<br />
Novelty
Working on two of the key decision areas<br />
22%<br />
Styling /<br />
Exterior<br />
Sound System<br />
Engine /<br />
Transmission<br />
Heating / AC /<br />
Ventilation<br />
Source: JDPower- US Brake Quality Study 2005<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
Ride /<br />
Handling /<br />
Braking<br />
12%<br />
Cockpit<br />
Comfort /<br />
Convenience<br />
Seats
Wheels are more and more open<br />
Discs and calipers<br />
are more visible
Performance delivered with style<br />
Some examples of style study by <strong>Brembo</strong><br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Compasso D’Oro Award 2004<br />
“If it were not a brake, it would<br />
be a sculpture worthy of any<br />
museum of modern art.”<br />
The Panel’s statement<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Our unique selling proposition<br />
Performance<br />
Bite<br />
Power<br />
Repeatability<br />
Comfort<br />
at a reasonable price<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
With every vehicle in<br />
every condition<br />
Style<br />
Design<br />
Brand<br />
Novelty
At a reasonable price<br />
Industrial excellence through the <strong>Brembo</strong> Productions System<br />
Technology Innovation and Lean<br />
Production<br />
• 6 S<br />
• SMED<br />
• TPM<br />
• HOSHIN<br />
• KANBAN<br />
• PROCESS IN-DEPTH ANALYSIS<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
At a reasonable price<br />
The efficiency road<br />
Poland : new foundry and machining plant<br />
• Opening ceremony : 20 February 2006<br />
• Ramp-up until July 2006; full capacity: Jan. 2007<br />
(depending on speed of parts homologation)<br />
• Total investment : € 45 million<br />
• Expected sales : € 120-130 million<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
At a reasonable price<br />
The efficiency road<br />
Italy : Restructuring of disc production plants<br />
• Maintenance and transfer of machines<br />
by end 2006 (3 to 6 months delay compared to<br />
the original time schedule due to high demand).<br />
• New machining plant integrated with existing<br />
foundry: SoP July 2006, full capacity end 2006.<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
At a reasonable price<br />
Getting ready for the future<br />
India : 50/50 JV<br />
• Start of activity of the JV: 4 February 2006<br />
• Total investment: € 6.5 million<br />
• JV not consolidated<br />
• Location: Pune (Bombay)<br />
• Applications: motorcycles<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
At a reasonable price<br />
Getting ready for the future<br />
China : greenfield plant<br />
• Total investment: € 15 million<br />
• JV with SIMEST as financial partner<br />
• Expected sales: € 20 million (2008)<br />
• Location: Beijing<br />
• Application: pass. cars and light commercial vehicles<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Understanding the fundamentals<br />
What makes us different<br />
Passion to innovate<br />
Q1 Results<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Passion to innovate<br />
Marketing of Innovation:<br />
to discover customer’s needs<br />
R & D<br />
innovative<br />
projects<br />
Market<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
Application area<br />
Transforming<br />
Innovation<br />
in added-value
Passion to innovate<br />
creativity<br />
Market<br />
Drivers of<br />
Success<br />
vision discipline<br />
steering and focusing<br />
creativity<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
processes and<br />
methods
Passion to innovate<br />
• 600 persons dedicated to product and process<br />
development<br />
• of which 300 engineering, specialists, technicians<br />
• 50 persons dedicated to advanced research:<br />
meccatronic, new material, electronic<br />
All of them engaged to bring<br />
INNOVATION<br />
to our customers<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Passion to innovate<br />
250 new designs every year<br />
6% of revenues invested in R&D<br />
10% of associates active in R&D<br />
in a 5 year time frame complete renewal<br />
of the range of products<br />
5 different Business Units,<br />
each leading<br />
its own segment<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Passion to innovate<br />
The first industrial company<br />
in Italy to create<br />
the Intangible Value Report<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Understanding the fundamentals<br />
What makes us different<br />
Passion to innovate<br />
Q1 Results<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Sales growth – Q1 2006<br />
Forex<br />
+2.0%<br />
€Mln<br />
Q1 05 Q1 06<br />
176.4 201.5<br />
Vol/Mix<br />
+ 13.1%<br />
+ 25,1<br />
+ 14.2%<br />
Business<br />
+12.2%<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
Prices<br />
-0.9 %<br />
Scope<br />
/
Gross sales business segment – Q1 2006<br />
Motorbike<br />
Comm.vehicle<br />
Car +11.8%<br />
+15.4%<br />
+10.9%<br />
Racing +28.4%<br />
Total + 14.2%<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong>
Cost structure evolution<br />
% of sales Q1 06<br />
Sales (€ mio)<br />
Personnel expenses<br />
Cost of goods sold<br />
EBITDA<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
201.5<br />
20.0%<br />
65.1%<br />
Q1 05<br />
176.4<br />
20.0%<br />
64.8%<br />
14.9% 15.2%
EBITDA margin evolution Q1 06<br />
18%<br />
16%<br />
14%<br />
12%<br />
10%<br />
8%<br />
15.2%<br />
Ebitda<br />
Q105<br />
2.0%<br />
Vol/Mix<br />
0.9%<br />
Selling<br />
Prices<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
1.0%<br />
Raw<br />
Materials<br />
0.3%<br />
14.9%<br />
Operations Ebitda<br />
Q106
Cost structure evolution<br />
% of sales Q1 06<br />
D&A 4.4%<br />
EBIT<br />
Financial charges (1.3%)<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
Q1 05<br />
5.4%<br />
10.5% 9.8%<br />
(1.3%)<br />
Tax rate 39.2% 38.4%<br />
Net income 5.4% 5.2%
Cash-flow Q1 2006<br />
220<br />
200<br />
180<br />
160<br />
140<br />
120<br />
100<br />
€ millions<br />
30.0<br />
22.1<br />
193.1 222.3<br />
NFP<br />
31/12/05<br />
<strong>Morgan</strong> <strong>Stanley</strong> <strong>Auto</strong> <strong>Conference</strong> - <strong>London</strong>, 22 nd <strong>June</strong><br />
28.0<br />
9.1<br />
Ebitda Investments NWC Fin. Charges<br />
+ tax<br />
NFP<br />
31/3/06
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