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Turin, June 2010
The Iveco 2010-14 Plan
Paolo MonferinoIveco CEO
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Turin, June 2010 2The Iveco 2010-14 Plan
Performance Over Last Plan Period
8,0 8,59,1
11,2 10,9
7,2
295 332546
813 838
1050,0
2,0
4,0
6,0
8,0
10,0
12,0
2004* 2005 2006 2007 2008 2009
Net
reve
nues
(€bn
)
0
400
800
1200
1600
2000
Trad
ing
prof
it (€
mn)
*Pro-forma excluding FPT segment
Trading margin 3.7% 3.9% 6.0% 7.3% 7.7% 1.5%
Net revenues (€bn) ~9.0 ~9.0 ~9.5
Trading profit (€mn) 640-710 670-740 800-870
Trading margin 7.1-7.9% 7.4-8.2% 8.4-9.2%4.0-7.5% operating margin range
2004 – 2007 Plan Targets 2006 – 2010 Plan Targets
Net revenues 2003-2007CAGR +6.6%
-
Turin, June 2010 3The Iveco 2010-14 Plan
2006Net Sales: €9.1bn
2009Net Sales: €7.2bn
Medium Heavy Bus Special VehiclesLight
2008Net Sales: €10.8bn
Revenues by Business Area
Enlarged product portfolio providing resilience
27%
12%
37%
14%
10%25%
12%
41%
12%
10%25%
14%
30%
17%
14%
-
Turin, June 2010 4The Iveco 2010-14 Plan
Growing Latin American positionBrazil positive market trendComplete product rangeExtensive distribution system
2010-2014 Plan4 Pillars
Recovery of traditional markets in EU
New productsEfficient Industrial footprintMarket and market share recovery
Trucks and Commercial Vehicles
Opportunities from leading position in China
Local profitabilityChinese products for exportEconomies of scale and cost saving opportunities
International Operations
Strengthening Special Vehicles and Buses
Development of Special VehiclesBus re-organisation
“Other” products
Achieving double-digit profitability
-
Turin, June 2010 5The Iveco 2010-14 Plan
1. Recovery of Traditional Markets in EU
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Turin, June 2010 6The Iveco 2010-14 Plan
Light imported
2010 2011 2012 2013 2014
Light
Medium
Medium imported
Heavy
PRODUCT ACTIONS
Refresh / Legal
Major modification / Legal
Euro 5 LD Euro VI HD
New Model
New Daily in 2013New Heavy Line introduction in 2014 (modular & global product)China export products: PowerDaily & new cab over (“Leoncino”*)
•Historical and successful cab over in 1950s to 1970s manufactured by OM (Officine Meccaniche) a company merged for the foundation of Iveco in 1975
Product Plan - EMEA Markets
Currentmodel
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Turin, June 2010 7The Iveco 2010-14 Plan
Iveco Innovations
Natural gas commercial vehicles
Pure electric commercial vehiclesDiesel - electric hybrid commercial vehicles
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Turin, June 2010 8The Iveco 2010-14 Plan
Factors impacting Truck and Commercial Vehicle demand
during next 4 yearsEU freight by mode
Source: Automotive World – June 2009
European Market Drivers
Our goal:Back to 2008 volumes in a “normalised” market
Focus on network strengthsand service level
Customer concentration(distribution channel mix change)
Emission legislation(Euro VI in 2013)
Gradual need for replacementof existing park
Road freight dominant
Transport needs strongly correlated to GDP
0
500
1000
1500
2000
2500
3000
1970 1980 1990 2000 2010E 2020E 2030E
Bn
tons
-km
Road Rail Other
-
Turin, June 2010 9The Iveco 2010-14 Plan
Market trend forecast in line with consensus
European Market Trend
200
400
600
800
2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E
K U
nit
s
0
50
100
150
2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E
K U
nits
Western EuropeMarket ≥ 3.5t
Eastern EuropeMarket ≥ 3.5t
Eastern Europe excluding Russia, CIS countries and Bulgaria
Western Europe
Eastern Europe
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Turin, June 2010 10The Iveco 2010-14 Plan
European Market Share
16,2%15,2%
14,0%14,5%
16,0%15,2% 14,8%
15,5%
17,0%17,1%17,6%
16,5%
2006 2007 2008 2009 2010E …… 2014E
11,4%10,3%
9,3% 9,5%
11,5%
11,8% 11,3% 11,2% 11,5%12,0%
10,9%
8,0%
2006 2007 2008 2009 2010E …… 2014E
24,9% 24,2% 24,5%26,0%
37,8%33,2%
30,5% 31,0% 31,0%
26,2%25,4%31,3%
2006 2007 2008 2009 2010E …… 2014E
Light(3,5-6,0t)
Heavy(≥16,0t)
Medium(6,01-15,99t)
Eastern Europe
Western Europe
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Turin, June 2010 11The Iveco 2010-14 Plan
\Light
+ Imported Products(3,5-6,0t)
Heavy(≥16,0t)
Source: Iveco estimates (based on Export To)
Medium+ Imported
Products(6,01-15,99t)
Africa and Middle EastMarket and Market Share
6,9%
3,8% 3,4%4,6% 4,6%
6,0%
0
25
50
75
100
125
2006 2007 2008 2009 2010E …… 2014E0,0%
4,0%
8,0%
3,2% 3,0% 1,8%3,8% 3,8%
12,0%
0
25
50
75
100
125
2006 2007 2008 2009 2010E …… 2014E0,0%
4,0%
8,0%
12,0%
Increase dealer network coverage from 49 to ~80 points-of-sale by 2014
8,9% 8,9% 9,5%11,5% 11,5% 12,5%
0
25
50
75
100
125
2006 2007 2008 2009 2010E …… 2014E0,0%
4,0%
8,0%
12,0%
11,5
Market Share
Market (units)
-
Turin, June 2010 12The Iveco 2010-14 Plan
Plant Utilisation in Europe
Return to near complete utilisation of technical capacity with no additional investments required
83%
95%84%
35%
49%59%
73%80%
88%
2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E
x
Vehicles / Year191K
Note: Calculations based on Harbour definition
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Turin, June 2010 13The Iveco 2010-14 Plan
Industrial Flexibility in Europe
270
100139 166
209 227249
0
50
100
150
200
250
300
2007A 2009A 2010E 2011E 2012E 2013E 2014E
+39%+20%
+26%+9%
+10%Production Volumes
(Base 100 = 2009)
126100 102 103 107 100 95
60
80
100
120
140
2007A 2009A 2010E 2011E 2012E 2013E 2014E
Fixed Industrial Costs(Base 100 = 2009)
7% average YoY efficiency over the Plan (mainly on the back of WCM Program)
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Turin, June 2010 14The Iveco 2010-14 Plan
2. Growing Latin American Position
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Turin, June 2010 15The Iveco 2010-14 Plan
Medium “Vertis”
Chinese platform
Heavy
2010 2011 2012 2013 2014
Light
Light imported
Medium imported
Medium “Cavallino”
Euro V
PRODUCT ACTIONS
Refresh
Major modification
New Model
Latin AmericaProduct Plan
Fully updated product offering including Chinese Vehicles
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Turin, June 2010 16The Iveco 2010-14 Plan
Latin AmericaMarket and Market Share
Light CV(2,8-7,9t)
Medium CV(8,1-31,0t)
Heavy CV(>31,0t)
Significant growth opportunities leveraging on Brazil volumes
10,4%
8,3% 8,2%9,3%
13,0%
10,6%
0255075
100125
2006 2007 2008 2009 2010E …… 2014E8,0%
12,0%
3,3% 3,2% 4,1%4,3%
6,4% 9,8%
0255075
100125
2006 2007 2008 2009 2010E …… 2014E2,0%
6,0%
10,0%
11,3%14,5%
17,9%14,0%
15,8%21,4%
0255075
100125
2006 2007 2008 2009 2010E …… 2014E10,0%
14,0%
18,0%
22,0%
Market Share
Market (units)
-
Turin, June 2010 17The Iveco 2010-14 Plan
3. Strengthening Special Vehicles and Buses
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Turin, June 2010 18The Iveco 2010-14 Plan
Keep on developing business by leveraging success of recent products and extending offering and geographical presence
DefenceConsolidate technological leadership in Protection Systems and Mobility Performance
Multirole product range completion
Growth outside traditional markets (€2.5bn contract with Brazilian Ministry of Defence)
Fire FightingEnlarge product range (Aircrash) to keep worldwide leadership
AstraLeveraging construction sector recovery
Special VehiclesKey Objectives
Net Revenues of ~ €1,4bn by 2014 (+40% vs. 2009)
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Turin, June 2010 19The Iveco 2010-14 Plan
Product range rationalizationProduct standardization and cost reduction
Overlapping vehicles to be discontinued
New entry level coach to gain additional volumes
Re-balancing Industrial FootprintIndustrial cost optimization
WCM to improve efficiency
Entering new marketsNew Citybus versions to compete in non-domestic markets
Direct distribution in major markets
BusesKey Objectives
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Turin, June 2010 20The Iveco 2010-14 Plan
Minibus
Intercity& Coach
Citibus
Iveco Irisbus Western Europe Market and Market Share (>= 3,5t)
Net revenues of ~ €1,6bn by 2014 (+30% vs. 2009)
25,8%
21,8%19,8%
21,9% 21,5% 23,0%
05
101520
2006 2007 2008 2009 2010E …… 2014E18,0%20,0%22,0%24,0%26,0%
19,3% 18,5%15,5% 14,1% 15,0%
19,5%
05
101520
2006 2007 2008 2009 2010E …… 2014E12,0%
16,0%
20,0%
24,0%
18,3% 19,3% 19,7% 19,5% 19,0%22,5%
05
101520
2006 2007 2008 2009 2010E …… 2014E12,0%
16,0%
20,0%
24,0%
Market Share
Market (units)
-
Turin, June 2010 21The Iveco 2010-14 Plan
4. Opportunities from Leading Position in China
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Turin, June 2010 22The Iveco 2010-14 Plan
SFHEngines
Chongqing
Nanjing
A single partner
3 JVs: NAVECOSAIC-IVECO HONGYAN (SIH) SAIC-IVECO FPT HONGYAN (SFH)
Full localized range, including engines
(Iveco Share: 50%)
(Iveco Share: 33,5%)
Fiat Group Share: 60%
(Consolidated line by line in FPT)
ChinaIveco presence and product offer
SIHHCV Range
(GENLYON, TAMPA, T/T8)
NAVECO (Jiangning)Yuejin Range
NAVECO (Heimoying)Daily Range
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Turin, June 2010 23The Iveco 2010-14 Plan
Serving domestic market
Increasing Network territorycoverage
2009 2014
JVs’ Export (units)* 1 k 31 k
Exporting to international markets
Leveraging supplier base for global sourcing
Targeting €300mn Annual Purchase Value in 2014
*Included in Iveco consolidated sales
Market by segment(K units)
Iveco estimates
Heavy
3,293CAGR
(2006-2014E)
11.8%
4.3%
9.6%
2,576
2,1541,923
Medium
Light
ChinaStrong platform for growth
2,581
1,632
951 1,1051,200
1,560 1,6841,984202
237 207
258268
282
307487 540
636707
748
2006 2007 2008 2009 2010E …… 2014E
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Turin, June 2010 24The Iveco 2010-14 Plan
Common components and product investments well supported by total size
Looking at Iveco from a wider PerspectiveIveco + Chinese JVs consolidated volumes (pro-forma)
Iveco+JVs
Iveco+JVs
Iveco+JVs
Scania
Scania
Volvo
Volvo
Daimler
Daimler
Man
Man
Paccar
Paccar
0 100 200 300 400 500 600
2007
2009
2014E
Common components and product investments well supported by total size
Iveco+JVs
Iveco+JVs
Iveco+JVs
Scania
Scania
Volvo
Volvo
Daimler
Daimler
Man
Man
Paccar
Paccar
0 100 200 300 400 500 600
2007
2009
2014E
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Turin, June 2010 25The Iveco 2010-14 Plan
Conclusions
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Turin, June 2010 26The Iveco 2010-14 Plan
12,111,2
9,8
7,27,9
8,5
3,0%
4,2%
6,6%
8,4%
9,6%
1,5%
3,4%
7,4%
9,2%
10,4%
5,0%
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
2009A 2010E 2011E 2012E 2013E 2014E
Ne
t R
even
ues
(€bn
)
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
Tra
din
g m
arg
in
Net Revenues Trading margin range - Low Trading margin range - High
2009-14 Financial Targets
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Turin, June 2010 27The Iveco 2010-14 Plan
Our Roadmap to Double-Digit Profitability
• Market– Western & Eastern European markets restored to “normalized” level, but still below
2007 peak– Strengthening our position in Latin America with significant market growth in Light &
Medium segments and share gains across range– Full exploitation of Chinese platforms for export to Africa & Middle-East and Latin
America
• Substantially overhauled portfolio across all product ranges and geographies including Chinese trucks to complement range
• Major efficiency gains in manufacturing returning to around 90% capacity utilization by 2014
• Significant growth in Special Vehicles and realignment of product portfolio in Buses resulting in manufacturing efficiencies
• Strategic platform to become part of a leading capital goods company within Fiat Industrial
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