Mid-Term Business Plan (FY11-16)

Transcription

1 Mid-Term Business Plan (FY11-16) CK G by 4 T 10 July 19 th, 2011 Calsonic Kansei Corporation President & CEO Bunsei Kure

2 Mid-Term Business Plan (FY11-16) Content 1. Market Environment 2. CK GX4 T10 3. Actions for Achievement 1

3 Market Environment 2016 Global vehicle production volume to exceed 95 million units. CO2 emission regulation strengthed mainly in Developed Countries. (more than 30% improvement based on current regulation) Growing demand for EV/(P)HEV (estimating about 10% EV share in ) <Global Vehicle Production Forecast> Million Unit <Developed Countries Emission Regulation> FY10(Act) FY11 FY12 FY13 FY14 FY15 FY16 <PC: Passenger Car, LT: Light Truck>> <Source: Marklines> 2

4 Market Environment Regions: Production expansion in Emerging Countries, mainly in BRICs/ASEAN. Segments: Rapid growth in A to C segment (small cars) Million Vehicles 100 <Vehicle Volume by Region> Million Vehicles 100 <Vehicle Volume by Segment> 80 Emerging Countries 80 Above D Segment Emerging Countries Developed Countries Developed Countries Above D Segment A-C Segment A-C Segment - FY10 FY16 0 <Source: CSM May 2011> FY10 FY16 3

5 Market Environment (Summary) Automotive Market Trend Expansion of EV/HEV Shares Rapid Growth for Small Cars and in Emerging Countries Executing Growth Strategy with 4Gs as the Keys Achievement of T10 goals 4

6 Growth Green Global Establishing the Corporate Foundation for A Great Company 5

7 Growth 10 New Eco-Products Leading the Global Competition Green Global Global Top 10 Automotive Suppliers in Sales(over 1 Trillion yen) Global Top 10 Automotive Suppliers Establishing the Corporate Foundation in Operating Profit (7%+ OP Rate* for 1 ) Great Company *1:Ratio over Value-added Sales 6

8 Key Actions Green Introducing Eco- Technologies/ Products to Lead the global competition Growth Embracing Growing Demand for Small /Low Cost Cars Business Expansion in Emerging Countries Global Standardization of Global Management /Operational Processes Establishing the Corporate Foundation for Great Company 7

9 Key Actions Green Introducing Eco- Technologies/ Products to Lead the global competition Growth Embracing Growing Demand for Small 新興国での事業拡 /Low Cost Cars 大 Business Expansion in Newly Emerging Countries Global Standardization of Global Management /Operational Process Establishing the Corporate Foundation for Great Company 8

10 Technology Leadership New Eco-Products by Technical Synergy, leveraging Total Energy Management as our Core Technology Power Saving Climate Control System Power Saving Climate Control Technology Power Electronics Power Electronics Control Technology Thermal Energy Recycle Engine Heat Thermal Management Technology Pursuing Technology Leader of the Heat Energy Management for Next Generation Environment Vehicles 9

11 Technology Synergy Lead the industry with the next-generation environment products by integrating the our extensive technologies Power Electronics CK ADVANTAGE Down-sizing by integrating high efficiency heat exchange system and power device Expertise for high reliability requirement of product in vehicle Thermal Energy Recycle CK ADVANTAGE Recycling Engine Heat for more efficient heat management for HEV/PHEVs Global Top level of Heat Exchange efficiency Power Saving Climate Control System CK ADVANTAGE Integration of Heat Exchange, Exhaust, HVAC component technologies Best energy balance control in various vehicle situations Evaluation Technology for comfortability Technology Electronic Control Technology Heat Exchange Technology HVAC Technology Exhaust Control Technology Product (example) Inverter Module Battery Controller Brushless Motor Oil Warmer EGR Cooler 10

12 Introducing Environment Products into the Market Goal Introduce 10 Environmental-friendly products which leads the global competition by FY16 FY15-16 FY13-14 FY

13 Key Actions Green Introducing Environment Technologies / Products to Lead the Industry Growth Embracing Growing Demand for Small /Low Cost Cars Business Expansion in Emerging Countries Global Establishing the Corporate Foundation for Great Company 12

14 Market Strategy Introducing CK products with key competitive advantages, targeting Small Car Segment in Emerging Countries, and EV/(P)HEV in Developed Countries Million Vehicles Volume by Segment Key Drivers for Competition (1) Develop the products with new environment technology * Green-Environment Technology/Product Competitive Technology/Products Technology Electronics Mounting and Electronics Control Technology Energy Management Technology Product (1) Small/Light-weight/Low Cost Product Line-up (2) Reduction in production cost Compressor HVAC Heat Exchanger Exhaust Interior Electronics/Electric 13

15 Products/Technology Strategy for Growth Small Fixed Compressor/Small Low Cost HVAC/Thin Type Radiator Product Characteristics Reliability Small/Light Weight Lost Cost Small Vane Rotary Compressor Small HVAC Thin Type Radiator Market Demand With high demand for small car in Emerging Countries, the demand for Small and Low cost Products is increasing Million Vehicles <Production volume for A-C segments> Actions 30 FY10(Act) FY16 Introducing Small/Light-weight/Low-cost Products by meeting the needs of the Emerging Markets Expanding production capacity to meet the rapidly growing demands Promoting localization of components and materials 14

16 Products/Technology Strategy for Growth Exhaust Product Characteristics Super Heat Resistant Exhaust Manifold Light-Weight and Compact Durability Current Exhaust Manifold Market Demand To meet strengthened CO2 regulation High heat exhaust will be critical for further fuel efficiency Actions Improvement of Product design and Process design to become the Global Cost Leader Sales expansion for Exhaust Manifold to a broader range of Customers 15

17 Products/Technology Strategy for Growth Achieve optimum Quality & Cost by applying optimum Design and Production Technology for each segment Compact Medium Luxury No Painting Hard Instrument Soft Pad Instrument Panel Soft Feel Instrument Panel Under Development Balance of Super Low-cost and Fair Appearance Achieving both High Quality and Low Cost Soft IP by Injection Skin Technology Super High Quality - Close to real leather feeling by using Urethane Casting 16

18 Region Strategy Sales Volume North America Japan Europe China Thailand Others Newly Emerging Countries Countries with Existing Facilities Add production capabilities to capture growing demands Promote In-Site/On-Site mainly for CPM/Exhaust Product to reduce TdC Sales expansion by utilizing current production facilities in Emerging Countries Other Emerging Countries Entering the region by alliance with other company or In-Site/On-Site, to maximize efficiency of capital investment *CPM:Cockpit Module 17

19 Joint Cost Reduction Activity with Customers [In-Site/On-Site] In-Site/ On-Site Effect Joint cost reduction activity by simultaneous production/assembly inside the customer facilities Achieving the best TdC. Dramatically reduce CAPEX for Land/Building/Infrastructure facilities Possible for more than 50% of logistic cost reduction for bulky products Region Product Action for Sales Expansion by Region and Product Promote In-Site/On-Site to meet the growing volume demand by the customers, mainly in China and Mexico. Besides CPM, In-Site/On-Site production scheme be expanded for Exhaust and HVAC HVAC System Assembly Line 18

20 China Sales to be Doubled (FY10 vs FY16) China Headquarters Sales expansion to more Quality-conscious Chinese local automakers and the Japanese automakers expanding their business in China Enhance Engineering Center and implement localization from the development phase Expand Current Production Facilities (In-Site/On-Site Implement for CPM/Instrument Panel, Exhaust and others) Main Custome r <Facilities> R&D Production(Existing) Production (New) 19

21 Mexico Sales to be Doubled (FY10 vs FY16) Sales expansion to the Japanese OEMs coming to Mexico Sales expansion to Brazil by utilizing FTA Strengthen current production facilities (In-Site/On-Site for CPM/Instrument Panel, Exhaust and others) Engineering Center Expansion Main Custome r <Facilities> R&D Production (Existing) 20

22 Alliance Scheme Example for Some Emerging Countries Russia Plan to produce Exhaust product at X German supplier plant in Russia India Brazil Currently producing HVAC with joint venture with Motherson Group in India Plan to produce HVAC at Y German supplier plant in Brazil 21

23 Key Actions Green Environment Technologies/ Products to Lead the Industry Growth Meet a Growing Demand for Small /Low Cost Cars Business Expansion in Newly Emerging Countries Global Standardization of Global Management /Operational Process Establishing the Corporate Foundation for Great Company 22

24 Reinforcement of Monozukuri (Cost Competitiveness No.1) MTCR (Cost Reduction) MTCR (Challenge Runner) Purpose Activity Recovery Cost Reduction for Profit Recovery Activity mainly in Japan Remove the weeds in current product as cross functional activities Eliminate Weeds Early Phase (incl. Auto Makers) Activity Expanding Activity to Overseas Share Japan s MTCR activities with the overseas regions Growth Solid Monozukuri for Growth Standardization of Monozukuri Activity from Design Phase Ensure Design without Weeds 23

25 Reinforcement of Monozukuri (Quality No.1) Implement global standard & PDCA to achieve No.1 Quality to satisfy customers all over the world. Recovery Growth Objective Activities Making Quality Policy starting from Japan Establishing the standard raised in Japan Quality Assurance activity for new product Improve mass production & field quality Improve quality of key suppliers Continuous improvement to quality management system Realize No.1 Quality all over the World Development and Execution of Global Standard Process Improve Quality by using V- up/ckps and statistical analysis by all of our global employees Identifying the specification required by each market. Strengthening preventive action by IT link of global standard process and quality control database 24

26 Reinforcement of Management Foundation (Globalization) Upbringing the human resources to be future global business leaders and maturing Organization/Culture by flushing Diversity Recovery Globalization starting from Japan Growth (Mutual Communication) Globalization Human Resource Talented Functional Experts Global Business Leaders LCC Management mainly by Japanese Management Localization Organization Authoritative Headquarters Functional Organization Efficient & Effective Headquarters Flexible 3 Axis Management (Function + Products + Region) Culture Wide-spreading activity for CK Values (CK-Way/V-up/ CKPS/ Compliance) and achieving further Globalization/ Diversity 25

27 Resources Plan [Capex and R&D Expenditure] The ratio of [CAPEX + R&D] / [Value-added Sales] will peak in 2013 at 10% to match global volume demand, and stabilize to 9% or less going forward. Oku Yen 10% R&D Expenditure Capex Actual Ratio to Value-added Sales 26

28 Growth Green Global Establishing the Corporate Foundation for Great Company 27

29 Plans, strategies, opinions and other statements regarding Calsonic Kansei Corporation stated in this document, other than historical facts, are forward-looking statements, which include risks and uncertainty. Please note the actual results may differ from the statements in accordance with the future economic condition, market trends, exchange fluctuation, and other important aspects. The statements in this documents are developed based on the purpose to provide information, and not to solicit investment. This document is the copyright of Calsonic Kansei Corporation. Reproduction or use of any copy without permission is prohibited. 28