April 21, 2010. Fiat Investor Day. 1. Paolo Monferino. Iveco .... New Daily in 2013.
▫ New Heavy line introduction in 2014 (modular & global product). ▫ Chinese
export products: PowerDaily & new cab over (“Leoncino”*). * Historical and ...
Iveco Paolo Monferino
April 21, 2010
Fiat Investor Day
1
Trading margin
Trading profit (€mn)
Net revenues (€bn)
Performance over last plan period
3.7%
3.9%
6.0%
7.3%
7.7%
1.5%
2004*
2005
2006
2007
2008
2009
Net revenues (€bn)
Net revenues 2003-2007 CAGR +6.6%
Trading profit (€mn) Trading margin
4.0-7.5% operating margin range
Balocco Plan Targets (Jul 2004)
~9.0
~9.0
~9.5
640-710
670-740
800-870
7.1-7.9%
7.4-8.2%
8.4-9.2%
Lingotto Plan Targets (Nov 2006)
* Pro-forma excluding FPT segment April 21, 2010
Fiat Investor Day
2
Competition benchmark
FY 2006 3000
Daimler Trucks
2500
Volvo Trucks
Industrial Operating Result (€ mn)
2000
Paccar
1500
1000
500
Man CV
Scania
0
-500
-1000
-1500 (14)
(12)
(10)
(8)
(6)
(4)
(2)
-
2
4
6
8
10
12
14
Return on Industrial Sales (%)
Source: Internal elaboration on publicly available information. Iveco excluding FPT Segment April 21, 2010
Fiat Investor Day
3
Competition benchmark
FY 2009 3000
2500
Industrial Operating Result (€ mn)
2000
1500
1000
500
Man CV (incl. LA)
0
Scania Paccar
-500
Volvo Trucks
-1000
Daimler Trucks
-1500 (14)
(12)
(10)
(8)
(6)
(4)
(2)
-
2
4
6
8
10
12
14
Return on Industrial Sales (%)
Source: Internal elaboration on publicly available information. Iveco excluding FPT Segment April 21, 2010
Fiat Investor Day
4
Revenues by business area
2006
Net Sales: €9.1bn
Light
2009
2008
Net Sales: €7.2bn
Net Sales: €10.8bn
Medium
Heavy
Bus
Special Vehicles
Enlarged product portfolio providing resilience April 21, 2010
Fiat Investor Day
5
2010-2014 Plan 4 Pillars
Trucks & Commercial Vehicles
Growing Latin American position
Recovery of traditional markets in EU New products Efficient industrial footprint Market and market share recovery
International Operations
Brazil positive market trend Complete product range Extensive distribution system
Achieving double-digit profitability
Opportunities from leading position in China Local profitability Chinese products for export Economies of scale and cost saving opportunities
April 21, 2010
“Other” products
Strengthening Special Vehicles & Buses Development of Special Vehicles Bus re-organization
Fiat Investor Day
6
Product Plan
Trucks and Commercial Vehicles (EMEA markets)
2010
current model
2011
2012
Euro 5 Light Duty
2013
2014
Euro VI Heavy Duty
Light Light Imported Medium Medium Imported Heavy
PRODUCT ACTIONS
New Daily in 2013
Major modification / Legal
New Heavy line introduction in 2014 (modular & global product)
Refresh / Legal
Chinese export products: PowerDaily & new cab over (“Leoncino”*)
New model April 21, 2010
* Historical
and successful cab over manufactured from 1950s to 1970s by OM (Officine Meccaniche), merged to create Iveco in 1975 Fiat Investor Day
7
European market drivers
EU freight by mode
Transport needs strongly correlated to GDP
11%
Road freight dominant Gradual need for replacement of existing fleet Emission legislation (Euro VI in 2013)
Billion tons/km
12% 12% 12% 16% 18% 30%
24%
52%
60%
13% 18%
11%
11%
12%
14% 77%
78%
76% 69%
74%
Customer concentration (change in distribution channel mix) Focus on network strengths and service level
Source: Automotive World – June 2009
Our goal: Back to 2008 volumes in a "normalized" market April 21, 2010
Fiat Investor Day
8
Trucks & Commercial Vehicles European market trend
Western Europe Market ≥3.5T
Eastern Europe Market ≥3.5T
Western Europe
Eastern Europe (ex Russia, CIS countries and Bulgaria)
Market trend forecast in line with consensus April 21, 2010
Fiat Investor Day
9
Trucks & Commercial Vehicles European market share
Light
… …
(3.5-6.0T)
Medium
(6.01-15.99T)
… …
Western Europe
Eastern Europe (ex Russia, CIS countries and Bulgaria)
April 21, 2010
… …
Heavy (≥16.0T)
Fiat Investor Day
10
Trucks & Commercial Vehicles – Africa & Mid-East Market and market share
Light
+ Imported products (3.5-6.0T)
… …
Medium
+ Imported products
… …
(6.01-15.99T)
… …
Heavy
(≥16.0T)
Market (k units) Market share April 21, 2010
Increase dealer network coverage from 49 to ~80 points-of-sale by 2014 Fiat Investor Day
11
Trucks & Commercial Vehicles Plant utilization in Europe
191k
Vehicle/Year
Return to near complete utilization of technical capacity with no additional investments required Note: Calculations based on Harbour definition April 21, 2010
Fiat Investor Day
12
Trucks & Commercial Vehicles Industrial flexibility in Europe
Fixed industrial cost / Production volumes (Base 100 = 2009)
7% average YoY efficiency improvement over the plan (mainly on the back of WCM program) April 21, 2010
Fiat Investor Day
13
Latin America Product plan
2010
Current model
2011
2012
2013
2014
Euro V
Light Light Imported Medium Imported Medium “Vertis” Chinese Platform
Medium “Cavallino” Heavy PRODUCT ACTIONS Major modification Refresh New model April 21, 2010
Fully updated product offering including Chinese vehicles Fiat Investor Day
14
Latin America
Market and market share
Significant growth opportunities leveraging on Brazil volumes
Light
… …
Medium
… …
(2.8-7.9T)
(8.1-31.0T)
Market (k units) Market share
Heavy
… …
(>31.0T)
April 21, 2010
Fiat Investor Day
15
Brazil
Network
Dealer network development plan
2006 Hubs and spokes
Authorized workshops
TOTAL IVECO DEALERS
2009
2010E
44
74
90
~120
8
15
15
15
52
89
105
~135
…
…
2014E
Ongoing network restructuring, increasing presence
April 21, 2010
Fiat Investor Day
16
Special Vehicles Key objectives
Keep on developing business by leveraging success of recent products and extending offering and geographical presence Defence
•
Consolidate 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 Fighting
•
Enlarge product range (Aircrash) to keep worldwide leadership
Astra
•
Leveraging construction sector recovery
Net revenues of ~ €1.4bn by 2014 (+40% vs. 2009) April 21, 2010
Fiat Investor Day
17
Buses
Key objectives
Product range rationalization
• Product standardization and cost reduction • Overlapping vehicles to be discontinued • New entry-level coach to gain additional volumes
Re-balancing industrial footprint
• Industrial cost optimization • WCM to improve efficiency Entering new markets
• New Citybus versions to compete in non-domestic markets • Direct distribution in major markets
April 21, 2010
Fiat Investor Day
18
Buses
Western Europe market and market share (≥ 3.5T)
Minibus
… …
Citibus
… …
Market (k units) Market share
Intercity & Coach
… … Net revenues of ~ €1.6bn by 2014 (+30% vs. 2009) April 21, 2010
Fiat Investor Day
19
China
Iveco presence and product offer
• A single partner • 3 JVs: NAVECO, SAIC-IVECO HONGYAN (SIH), SAIC-IVECO FPT HONGYAN (SFH)
• Full localized range, including engines
NAVECO (Heimoying) Daily Range
NAVECO (Jiangning) Yuejin Range Nanjing (Iveco Share: 50%)
Chongqing (Iveco Share: 33.5%)
SIH Heavy Range (GENLYON, TAMPA, T/T8)
Fiat Group share: 60% (Consolidated lineby-line in FPT)
SFH Engines April 21, 2010
Fiat Investor Day
20
China
Strong platform for growth
Serving domestic market
CAGR (2006-2014E)
Sales volumes by segment (k units) Iveco estimates
Increasing Network territory coverage
3,293 11.5%
2,576 1,923
2,581
2,154
1,632
9.2%
Hongyan Yuejin Power Daily
7.1%
… …
Exporting to international markets 2009 JV Exports (units)* *Included in Iveco consolidated sales
1k
2014E
…
24 k
Leveraging supplier base for global sourcing Targeting €300mn Annual Purchase Value in 2014 April 21, 2010
Fiat Investor Day
21
China
JV performance
2006
2007
2008
2009
2010E
20
95
92
107
130
235
0.3
1.0
1.0
1.2
~1.5
~3.2
9
6
13
4
10
80+
Wholesale units (k units)
TOTAL JVs
Net Revenue (€ bn)
TOTAL JVs
Net Profit (€ mn)
IVECO Interest
…
2014E
Iveco interest recognised under equity method April 21, 2010
Fiat Investor Day
22
Looking at Iveco from a wider perspective Iveco + Chinese JVs consolidated volumes (pro-forma)
…
…
2014E
k units
Common components and product investments fully supported by total size April 21, 2010
Fiat Investor Day
23
Financials Capex
DAILY 2011 NEW LINE HEAVY MEDIUM & HEAVY Euro 6 DAILY 2013 April 21, 2010
Fiat Investor Day
24
2010-14 Financial targets
April 21, 2010
Fiat Investor Day
25
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 & Mid-East and Latin America
• Substantially overhauled portfolio across all product ranges and geographies including Chinese trucks to complement range
• Major efficiency gains in manufacturing with ~90% capacity utilization by 2014
• Significant growth in Special Vehicles and realignment of product portfolio in Buses resulting in manufacturing efficiencies
April 21, 2010
Fiat Investor Day
26
