WABCO Corporate PPT Template 2017€¦ · Truck Code – AC / Cabin ventilation system ESC / Braking efficiency for M1/N1 Automated Manual Transmission BS VI (Nation wide) Intelligent

WABCO Confidential and Proprietary 1

WABCO INDIA LIMITED INVESTOR DAY 2017

MUMBAI

Sept 14 2017

WELCOME

WABCO Confidential and Proprietary

SAFE HARBOR STATEMENT

2

Statements in this document describing the Company's objectives, projections, estimates and expectations may be

"forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ

materially from those expressed or implied due to many factors. Important factors that could make a difference to the

Company's operations include, among others, economic conditions affecting demand / supply and price conditions in the

domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and

other statutes and incidental factors. The Company does not undertake any obligation to update such forward-looking

statements. All market and industry data are based on Company estimates.

2


SUSTAINING DIFFERENTIATION

WABCO continues to tap into a rich reservoir of organic growth,

With proven success in driving technology leadership, and excellence in execution,

On a clear path toward enabling commercial vehicle autonomy and connectivity

Powered by the passion of a global team

3


ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY INNOVATOR

In 2016, WABCO had

$2.8B Annual revenues

13,000 Employees in 40 countries

No.1 in all BRIC markets

319 Patents granted

2,500 Service Partners

2,400 Engineers worldwide

$403m Performance EBIT (1)

(14.4% Margin)

All figures relate to 2016

55% 25%

10%

4%

SALES BY CUSTOMER TYPE

Aftermarket

Off-Highway

OE Truck & Bus

Trailer

Car

54% 14%

24%

3% 5%

SALES BY REGION

Europe North America

15 during the last 5 years

Technology

industry firsts

10 Years

NYSE listing

27 Factories

Asia Brazil Other

See appendix for footnotes

4


ANTICIPATING THE EVOLUTION OF OUR INDUSTRY

Exponential Growth of New Technologies

Increasingly Complex

Customer Needs

Regulatory Push for Greener

Environment

Population Growth, Urbanization &

Smart infrastructure

Mega Trends

Off-Highway Application

Requirements

Commercial Transportation

of Commercial Vehicles

Impact on Commercial Vehicles Requirements

Segmentation

Urban / Suburban Transportation

Long Haul Transportation

5


Mechanics

Electromechanics

Electronic

Systems Digital

Systems

INDUSTRY VISION TECHNOLOGY STRATEGY EVOLUTION

Fleet

Management

Systems

V2V

Telematic units Stability Control Braking System

Platform

MAXX™ Air Disc Brakes

Transmission Automation

c-comp™ Clutch Compressor

Active

Steering

OnLane ProView

OnGuard

OnCity

FuelGuard™ E-APU

Hybrid EBS

OptiTire™

Platooning

OptiRide™

e-comp™ Electrically Driven Compressor

OptiFlow

Evasive Maneuver Assist

Lane Keep Assist

Maneuvering

Big Data Analytics

OptiLock

Multi Brand

Diagnostic

CONSTANTLY INVADING NEW TECHNOLOGY SPACES

6


EXPANDING RESERVOIR FOR ORGANIC GROWTH A

pp

lic

ab

le c

on

ten

t p

er

ve

hic

le

~$300

~$1000

~$500

2014 Today Future

Advanced Technology

Adoption

Advanced Technology

Adoption

* At constant FX

~$1000

Content per vehicle gap closure between regions fuels technology adoption

~$3200

~$3000

7


SUSTAINING DIFFERENTIATION: TECHNOLOGY LEADERSHIP

Early anticipation, constant innovation and relentless re-design to cost

power the adoption of WABCO technology

8


TECHNOLOGY TO ADVANCE VEHICLE EFFICIENCY

• Blending braking technology

• Electrically-sourced compressed air

• Scanning for additional opportunities

A vehicle equipped with all WABCO efficiency technologies can increase

fuel economy up to 20%

9


CONNECTIVITY: MOBILIZING VEHICLE INTELLIGENCE

Platooning (V2V)

Provide a Broad Spectrum of Vehicle Systems Data

Other Data

Providers

Big Data & Analytics

V2X

WABCO uniquely offers insights on truck, trailer and driver

performance

10


WABCO TECHNOLOGY FOR ELECTRIFIED VEHICLES

FUEL Powered Trucks ELECTRIC Powered Trucks

FuelGuard™ E-APU


c-comp™ Clutch Compressor

MAXX™

Air Disc Brakes EBS Brake Control

Air Suspension

ADAS & Electronic Controls Telematics

ABS Brake Contol

e-comp™ Electric Compressor

Air Generation

Air Actuation

Brake & Vehicle

Control

ADAS & Telematics

APU


MAXX™

Air Disc Brakes

Air Suspension

ADAS & Electronic Controls Telematics

Several million trailers

in use today need air

to be operated

No AMT in electric

trucks but electronic

air suspension control

Energy recuperation and

brake blending requires

electronic braking system

More telematics

required to operate

electric fleets

E l e

c t r i f i c

a t i o

n

11


1.7%

WABCO’S LEADING FLEET MANAGEMENT SOLUTIONS

China

~$400

India

~$100

30% 55%

20% 40%

5% 15%

JV with G7

Acquired

AssetTrackr

*Source: Frost & Sullivan, MCV & HCV, Sept. 2016

3 year contract value*

DIFFERENTIATED

FMS PRODUCTS

Premium solution - large fleets

ACROSS DIFFERENT WITH A GROWING PENETRATION

MARKETS

Europe

~$1800

Acquired

Transics

FMS Penetration WABCO M&A

5 year*

Entry solution - emerging markets

Standard solution - small fleets

Trailer solutions

12


WABCO BLUE-PRINT FOR AUTONOMOUS DRIVING

Predictive control: - Predicts traffic situation

- Learns behaviors

- Defines system reaction

- 100ms cycle

Reactive Control: - Measures vehicle situation

- Safety critical

- 5ms cycle

360° sensing

CONNECT

Fail Safe Vehicle Architecure

Braking

system

Active

Steering

Vehicle

Sensors

Stability

Control

AMT

360o sensing

Dynamic Motion Control

13


ACQUISITION OF STEERING TECHNOLOGY ENABLES FULL

The transaction is subject to customary U.S. regulatory clearance and it is expected to close by the end of the third quarter 2017

• Established in 1837

• $130m sales

• 900 employees

• North America facilities and JV

in China

• Main products • Steering Gears

• Steering Columns

• Pumps

• Remanufactured Products

Establishing a gateway to more advanced levels of automation

Globalize existing steering solutions

Develop and introduce cost-efficient active steering

solutions globally together with Nexteer Automotive

Provide new functionalities toward

Autonomous Driving

CONTROL OF VEHICLE DYNAMICS

14


MANUFACTURING

SUSTAINING DIFFERENTIATION: GLOBALIZATION

• Globalized ahead of the curve

• #1 in all emerging markets

• Frugal mindset deployed globally

• A globally integrated supply chain

• India developed as a powerful second pillar

of our global operations

BCC SHARE

ENGINEERING

HEADCOUNT SOURCING

2016 BEST COST COUNTRY (BCC) RESOURCES

SALES BY REGION

2007 2016

Europe

Americas

Asia

15


A DIFFERENTIATING GLOBAL ENGINEERING TEAM

WABCO Product Creation Process

One global and connected team driving innovation --- frugally!

Powerful global

development team blends

and leverages broad

expertise, extensive

industry knowledge and

frugal engineering principles

Global Development

Skilled application

engineers in all key regions

provide excellent customer

connectivity and support

Global

Development

16


A DIFFERENTIATING GLOBAL TEAM

Advanced

Technology

Best

Cost

Best

Solution

Broad system and

vehicle expertise

Strength in technology

and innovation

Frugal engineering

Rich software

expertise

Advanced technologies at best cost

17


WABCO INDIA


WABCO INDIA THE GROWTH ENGINE

19

Continue to leverage on regulation

Sales to OEMs through advanced technology offerings, increased sales to

non CV customers and smart digital solutions

Increased sales to after market through new channels,

new business models and new products

India manufacturing and engineering excellence to

boost export revenue of products and services

Delivering operational results through productivity


WABCO INDIA – NO. 1 SUPPLIER TO INDIAN MARKET

20

2007

2005

2012

2011

2013

2008

2015

• 2009 WABCO takes majority control in the brakes

division of Sundaram Clayton Limited - WABCO TVS

• 2011 WABCO TVS became WABCO INDIA Limited

Market leader for five decades

Sales of ₹ 2260.57 Crores in 2016 - 17

4434 employees (516 engineers)

5 manufacturing sites

– fully aligned to customers’ needs


INDIA LEGISLATION – STATUS AND FORECAST

21

Legislation requires installation of Safety and Emission Control Systems

Type Status (August 2017)

2016 2017 2018 2019 2020 2021 2022 2023

Emission /

Efficiency

BS IV

BS VI

Safety 100% ABS for TB&C, Trailer &

2 Wheeler

Connectivity

Others

E Vehicles

End of Life Scrapping Policy

red = in discussion

BS IV (Nation wide)

ABS for M3 / N3 Trailer ABS ABS for M1 / M2 & 2 Wheeler ABS

Speed Governor

Agricultural Trailer Brakes

Trailer Code

AIS Bus Body Code

Truck Code – AC / Cabin ventilation system

ESC / Braking efficiency for M1/N1

Automated Manual Transmission

BS VI (Nation wide)

Intelligent Transport Solutions

N1 / N2 ABS Regulation

AEBS System

End of Life Scrapping Policy

E Vehicles / Hybrid Vehicles for T&B

Vehicle location tracking

FASTag

Fuel Efficiency targets for M3 & N3 BS IV vehicles


WABCO INDIA STRATEGY TO DRIVE TOPLINE GROWTH

Key strategies to sustain outperformance in the market

Increase

Penetration of

Advanced

Technologies

AMT

ADB

ECAS

ESC

ADAS

Expand Product

Portfolio

Horizontally

Door Ctrl System

Smart Suspension

Trailer Axles

Vehicle Harness

Filter Solutions

Hydraulic Brake System

Off Highway & Defense

Offering Smart

Digital Solutions

FMS

ITS (Intelligent Transport

Solutions)

Value added services

using FMS Data

22


DRIVING GROWTH THROUGH DIFFERENTIATING CREATIVITY

IN AFTERMARKET

23

• Expanding the service network through addition of new

Authorized Service Centers

• Capitalizing on retro fitment as a successful revenue

stream

• Developing unique solutions for Indian market

Performance enhancement kits

Fleet Management Solution

Speed Governor

Speed Governor

WABCO SERVICE CENTER

NETWORK – A TOUCH

POINT AT EVERY 100KM

Fleet Management Solution


SALES STRATEGY AFTERMARKET

Providing fleets with operational savings thru cost efficiency

Fleet activities Key drivers

• Increase AM sales

• Diversify in FMS

• Create pull in OEMs

through retrofit @ fleets

• Requirements for “zero-

breakdown” in bus

segment

• Ever increasing cost of

operation driving fleets

for better operational

efficiency

Key objectives

Market dynamics

Fleets

ADB

AMT

WS Tools

Video

analytics

Predictive

Maintenance

FC Kits

Zero break down;

Preventive maintenance

Conv. Product

FMS Retro-

fit

ECAS

ABS Operational

management

Increased saving to fleets

creates pull for OEMs to

adopt in new vehicles

Improved efficiency

through FMS enabled

products

• ADB

• ECAS

• AMT

• ADAS

• FMS

• FC kits

24


AM GROWTH EVOLUTION

AM Product

Portfolio

Services

Repair Kits

PE Kits/

FC Kits

ABS Retro Kits

Advanced retro

Products

FMS products

01

02

03

04

05

06

07

Services revenue

model : In Plan.

Digital Products

Trailer ABS, EBS, Air

suspension with

ECAS,Air Disc Brake

ABS Retro kits to

cater OMC trucks. Performance Enhancer/

Fitness Certificate Kits .

Specific repair kits

formation

As per consumption

Assemblies

Child parts

25


WIN FMS ROAD MAP

26

• Track n Trace

• Better view on fleet

utilization

• CAN & Non CAN based

• Integration with WABCO systems (ABS, AMT, EBS, ECAS, TPMS)

• Camera and Video integration

• Fuel and driver management

• Load monitoring

• Video based Driver behavior Monitoring Solution (Phase 01)

• Remote vehicle

diagnostics

• Intelligent Transport

System.

• Preventive vehicle

Maintenance

• Big data analytics

• Mobile based solutions

• Integration of Trailer ABS

and EBS

• Trailer management

• Ecommerce solution for

logistics

• Toll and Parking system

• Ambulance management

• ADAS support camera

based

• Advance Telematics

Solution

• Automatic Driver’s

training module

• Terrain based vehicle

speed control

• Electronic fencing for

mining

2020 (V2V)

2019

(Solution Provider)

2018

(Advance Level)

2017(Mid Stage)

2016 (Basic)

2017 (Advance)


WABCO INDIA'S INCREASING CAPABILITY

27

Supplier to domestic OEMs

Local manufacturing of

global product

Design and manufacturing of

subsystem for global OEMs

Supplier of components for

global needs

Design and Manufacturing of global products

2006 2014 2008 2010 2012 2016

Centre of

excellence

for select

products

Leverage powerful capabilities to deliver differentiation and value


EXPORT EXCELLENCE

28

WABCO Mahindra City Plant was awarded for Export Excellence by Government of India, Ministry of

Commerce and Industry , based on the Export performance in Engineering Sector. The Companies in Export

Processing Zone are awarded based on the performance in 3 categories ; Growth , Employment and Net

Foreign Exchange Earning. Mahindra City plant stood 1st position in all the three category for the year 2014-15

and stood 1st position in Net Foreign Exchange Earning for 2015-16.


WABCO INDIA BUSINESS PERFORMANCE

29

-2.0% -0.6%

20.1% 18.6%

31.5%

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

CUSTOMER Exports

OVERALL SALES IN M$

MARKET OUTPERFORMANCE

32 25 22 37

51

2012 2013 2014 2015 2016

OPERATING RESULT IN $M AND

OPERATING MARGIN IN %

28 20 18 25 36

2012 2013 2014 2015 2016

CONTRIBUTION INCOME IN $M AND

CONTRIBUTION MARGIN IN %

145 148

182

236

294

22%

17% 12%

16%

17%

23.6%

20.5% 14.8%

15.5%

17.1%


0

1000

2000

3000

4000

5000

6000

7000

8000

18-Jun-09 18-Jun-10 18-Jun-11 18-Jun-12 18-Jun-13 18-Jun-14 18-Jun-15 18-Jun-16

SHARE PRICE TREND

Solid generation of shareholder value 30

Source: National Stock Exchange


WABCO INDIA OPERATIONS PERFORMANCE

31

3 2 2 3 1

2012 2013 2014 2015 2016

74 51 26 14 13

2012 2013 2014 2015 2016

ZER0 KM PPM GROSS MATERIAL PRODUCTIVITY

CONVERSION COST PRODUCTIVITY SAFETY PERFORMANCE

(LOST WORKDAY CASES)

5.52% 12.73% 7.13% 8.14%

8.11%

2012 2013 2014 2015 2016

12% 9.4% 10.1% 10.9%11.6%

2012 2013 2014 2015 2016


VALUE IN OE CUSTOMER PARTNERSHIP RECOGNIZED THROUGH AWARDS

32

Cummins India “Best Supply Chain Transformation” award VECV’s award for “Outstanding contribution to

Technology Innovation”


AWARDS AND ACCOMPLISHMENTS

33

Special recognition award in CII-IQ

National Safety practice competition – May 2017

First Prize in ACMA Northern region

Zonal quality circle competition – June 2017

First and Second Prizes for two teams in ACMA Southern

region Business Quiz competition – June 2017

Second Prize in IMTMA National Productivity

Championship competition – August 2017

First Prize in CII Kaizen

competition – July 2017 4 Gold and 1Silver

awards in QCFI QCC

competition – Sep 2017


DISCUSSIONS

34

34


THANK YOU

Documents

WABCO Corporate PPT Template 2017€¦ · Truck Code – AC / Cabin ventilation system ESC / Braking efficiency for M1/N1 Automated Manual Transmission BS VI (Nation wide) Intelligent