Key strengths -...
Transcript of Key strengths -...
1. Europe and Africa €1,389.7m2. North America €995.3m3. China €677.6m4. South Korea €200.4m5. Other Asia Paci�c €146.6m6. Latin America €81.3m
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Revenue by region
€3,491m +4.2%
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1. Daimler 12%2. Ford 10%3. Hyundai 10%4. VW 10%5. FCA 9%6. Renault-Nissan 9%7. General Motors 7%8. PSA 7%9. BMW 5%10. Toyota 5%11. Other OEMs 14%12. Aftermarket 2%
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Revenue by customer
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% of revenues1. Fluid carrying systems 59%2. Fuel tank and delivery systems 41%
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Revenue by division
2 divisions
Global market leader with strong market positions and above-market growth – Broadly‑based customer, platform, regional and product diversity– Leading supplier of brake and fuel lines and bundles, with
approximately 35% share of the global brake and fuel line market in 2017, and a leading supplier of plastic fuel tanks, with approximately 15% of the global plastic fuel tank market
– #1 supplier of brake and fuel lines in all key regions globally, including North America, Europe, Asia Pacific and Latin America
– Embedded, long term global customer relationships and close engineering collaboration provide business award opportunities
– Products typically single‑sourced for life of programme – Competitive global manufacturing footprint with flexible cost
structure and approximately 67% of employees located in low‑cost countries
Strong customer relationships and global low cost footprint – TI Fluid Systems has facilities in every major automotive
manufacturing market– Low‑cost footprint includes regional manufacturing centres
and assembly locations in close proximity to customers – Significant amount of revenue generated from global OEM
platforms (i.e. platforms produced in three or more regions)– Well positioned through the global manufacturing footprint
to continue to cost‑effectively expand fluid product offering, business and infrastructure including OEM transitioning to HEV and EV offerings
– Business philosophy for locations to be predominantly managed by local nationals with strong stakeholder relationships and financial performance ownership
Well placed – manufacturing
Well placed – regional technology centres
Regional technology
centres
Facilities in every major automotive
manufacturing market
04 TI Fluid Systems plcAnnual Report and Accounts 2017
Key strengths
Long established presence in China – TI Fluid Systems has operated in China for over 30 years
with a wholly‑owned business supplying both global and local OEMs
– 19% of 2017 revenue from operations in China with 18 manufacturing locations
– Key contributor to our consistent above‑market growth
China – the fastest growing market
Manufacturing locationsBaodingBeijingChangchunChangshuChongqingDongguanFuzhouGuangzhouHaikou
NanjingQinhuangdaoShanghaiShenyangTianjinWest ShanghaiWuhanXiangyangYantai
30 Years of experience in the China market
100% Wholly-owned business in China
18Manufacturing
locations
For more informationabout our company go towww.tiautomotive.com
Stainless steel fuel line connectorJoining mechanism in fuel line system
Fuel line with fastening latchUsed for the transfer of fuel
Overview
Strategic report
Corporate governance
Financial statements
Shareholder inform
ation
05 TI Fluid Systems plcAnnual Report and Accounts 2017
2014 2015 2016 2017
2,696.33,095.2
3,348.6 3,490.9
Revenue €m
€3,491m +4.2%
2014 2015 2016 2017
259.7
316.9
362.1383.5
Adjusted EBIT €m
€384m +5.9%
2014 2015 2016 2017
336.5
412.6464.7
490.7
Adjusted EBITDA €m
€491m +5.6%
2016 2017
82.5
118.6
Adjusted Free Cash Flow €m
€119m +43.8%
Management team with deep automotive experience and long track record of strong revenue growth, profitability and cash flow generation– History of achieving leading returns and financial KPIs
e.g. revenue growth above market, Adjusted EBITDA, Adjusted EBIT and Adjusted Free Cash Flow
– Strong industry reputation for technology innovation and product quality. Supports business awards at positive margins
– Targeting vehicle and platforms which we believe are likely to be successful based on global and regional trends
– Disciplined approach to quoting new contracts and capital allocation
– Strict fixed cost control and continuous focus on business improvement efficiencies
Technology leader in highly engineered automotive fluid systems – History and culture of offering award‑winning product
innovations and technologies aligned with automotive industry megatrends of fuel efficiency and emissions regulations
– Working closely with customers on design and engineering to maximise product development
– Extensive knowledge of materials and manufacturing processes together with optimal level of vertical integration
– Industry recognised innovation awards for plastic fuel tank technologies addressing existing and future fuel economy and emissions regulations
– Other leading products supporting fuel economy include high pressure gasoline and diesel, gas directed injection and turbocharger lines
Glycol coolant lines and quick connectorsUsed for glycol liquid transfer for the thermal management of vehicle interior cabin heating, HEV/EV battery, power electronic and motors
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Key strengthscontinued
Significant growth opportunities aligned with electrification and our strength in thermal management – Opportunity to increase content per vehicle in growing HEV
and EV markets compared to the content for more traditional internal combustion engine (‘ICE’) vehicles
– Ability to leverage pressurised fuel tank technology for HEVs– Potential addressable market could increase substantially by
2025, given that EVs would typically require battery, chassis, electric motor and electronics thermal management (heating and cooling) in addition to traditional passenger cabin heating and cooling lines
– Well positioned for growth in thermal management for HEVs and EVs due to: ‑ HEVs and EVs require more fluid handling content than ICE vehicles
‑ Our developed technology in nylon lines with significant weight savings over aluminium and rubber
‑ Existing nylon extrusion capabilities and capacity in each major region
‑ OEM relationships and competitive global footprint ‑ Use of existing materials and know‑how
For more informationabout our company go towww.tiautomotive.com
HEV battery, power electronic and motor thermal circuitAssembly of multiple components used for glycol liquid transfer in a HEV thermal management system
Overview
Strategic report
Corporate governance
Financial statements
Shareholder inform
ation
07 TI Fluid Systems plcAnnual Report and Accounts 2017