NEXTEER CONFIDENTIAL 1 CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL
3 CONFIDENTIAL NEXTEER CONFIDENTIAL 4 CONFIDENTIAL NEXTEER CONFIDENTIAL 5 CONFIDENTIAL NEXTEER CONFIDENTIAL Safe Harbor Statement
These materials have been prepared by Nexteer Automotive Group Limited (“Nexteer” or the “Company”) and are being furnished to you solely for informational purposes. The information contained in these materials has not been independently verified. NO REPRESENTATION OR WARRANTY EXPRESS OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THE INFORMATION OR OPINIONS CONTAINED HEREIN. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company’s financial or trading position or prospects.
Neither Nexteer nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arise from any use of this presentation or its contents or otherwise arising in connection with this presentation.
Certain statements contained in these materials constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed by, or implied by the forward-looking statements in these materials. The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Many factors may cause the actual development to be materially different from the expectations expressed here. Such factors include, for example and without limitation, changes in general economic and business conditions, fluctuations in currency exchange rates or interest rates, the introduction of competing products, the lack of acceptance for new products or services and changes in business strategy.
In this document, all references to “Booked Business Amount” are to our estimation of the value of all booked business under contracts that have been awarded to us. The Booked Business Amount is based on estimated lifetime volume of the programs derived from indicative production arrangements provided by the applicable OEM customers and information provided by third-party industry sources. In calculating the Booked Business Amount, we also assume that the relevant contracts will be performed in accordance with their terms. Any modification or suspension of the contracts related to the booked business by our customers could have a material and adverse effect on the value of the booked business. The value of booked business is not a measure defined by International Financial Reporting Standards (“IFRS”), and our methodology for determining the Booked Business Amount may not be comparable to the methodology used by comparable companies in determining the value of their booked business. While we believe that our current Booked Business Amount is a relevant financial metric, the information in relation to the booked business and the Booked Business Amount included in this document does not constitute a projection, forecast or prediction of our profits, and the actual contract value may be different from the estimated Booked Business Amount due to various factors and uncertainties beyond our control. We cannot assure you that our estimated Booked Business Amount contained in this document will be indicative of our future operating results.
This document does not constitute an offer, solicitation, invitation, or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. NEXTEER CONFIDENTIAL
7 CONFIDENTIAL NEXTEER CONFIDENTIAL 8 CONFIDENTIAL NEXTEER CONFIDENTIAL 9 CONFIDENTIAL NEXTEER CONFIDENTIAL 10 CONFIDENTIAL NEXTEER CONFIDENTIAL 11 CONFIDENTIAL NEXTEER CONFIDENTIAL 12 CONFIDENTIAL NEXTEER CONFIDENTIAL
Strategy for Profitable Growth
Expand Strengthen Capitalize on Optimize Cost Pursue Select Target China & Diversify Technology EPS as Enabler Structure Acquisitions & Emerging Revenue Base Leadership for ADAS & Alliances Markets
A Well-Defined Plan to Drive Stakeholder Value
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2019 Global Supplier Conference Welcome!!
19 NEXTEER CONFIDENTIAL
Surprises A year of Turmoil Uncertainty
2019 NEXTEER CONFIDENTIAL 20 NEXTEER CONFIDENTIAL
Global Considerations U.S. – China trade friction and tariffs
Brexit uncertainty and turmoil
Global economic growth decelerating
Central banks actions turning to accommodative positions Heightened tensions – N. Korea, Iran, China / Hong Kong
21 NEXTEER CONFIDENTIAL
Closer to Home FX headwinds - U.S. dollar strength
Slowing OEM production – particularly China consumer demand Tariff frictions requiring mitigation Significant investment shifts in mobility – both OEM’s & non-traditional players Heightened cost pressures by OEMs to secure business – incumbent & conquest
22 There is no bad weather…
NEXTEER CONFIDENTIAL 23 There is no bad weather… Awareness
NEXTEER CONFIDENTIAL 24 NEXTEER CONFIDENTIAL
Fast-Paced and Challenging Macro Environment Scary yet Exciting!
25 NEXTEER CONFIDENTIAL
Strategy for Profitable Growth
Expand Strengthen Capitalize on Optimize Cost Pursue Select Target China & Diversify Technology EPS as Enabler Structure Acquisitions & Emerging Revenue Base Leadership for ADAS & Alliances Markets
A Well-Defined Plan to Drive Stakeholder Value
26 1H 2019 Highlights 21 Customer Programs Launched
9 2 10
NEXTEER CONFIDENTIAL 27 1H 2019 Highlights
New Launch Vehicles Conquest!
Conquest!
PSA Chevrolet GMC Cadillac DS3 Crossback Silverado HD Sierra HD XT6* Conquest! Conquest! Conquest! Conquest! Tata Harrier*
Conquest! Mahindra BYD Lincoln Peugeot XUV300* F3* Aviator* 208* Conquest! Conquest! Conquest! Conquest! Nissan DAYZ*
Mitsubishi MG Chang’An Ford eK Wagon* Hector* CS35 Plus* Explorer*
Q1 2019 Q2 2019
NEXTEER28 CONFIDENTIAL 1H 2019 Highlights Global Footprint Expansion
Manufacturing Engineering Footprint Expansion
NEXTEER CONFIDENTIAL
29 1H 2019 Business Highlights Global Footprint Expansion 27 Manufacturing Facilities 4 Global Technical Centres +13,000 Colleagues Wuhan, China EPS Manufacturing JV with Dongfeng Liu Zhou, China In Construction Self-owned New Facility Kenitra, Morocco In Production EPS & Driveline Manufacturing In Construction Bangalore, India Suzhou, China Software Center APAC Regional In Production Technical Center In Construction Chennai, India EPS & Driveline Manufacturing In Production
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30 1H 2019 Business Highlights Morocco Plant Grand Opening
Booked Revenue Kenitra, Morocco In million USD EPS & Driveline 250 Manufacturing 200+ 200
150
100
Ground Breaking Grand Opening 50 March 2018 June 2019
0 2019 2020 2021 2022 2023
NEXTEER CONFIDENTIAL 31 1H 2019 Business Highlights Saginaw Driveline Transformation Launch Where We’re Headed 2H 2018 2020 & Beyond
▪ Global consistency leading to better quality and customer value ▪ Reduced lead time across the supply chain and utilizing more supplier technology ▪ Improved efficiency in plant operations ▪ Improved capacity utilization ▪ Technology improvement facilitating quality and cost improvements
NEXTEER CONFIDENTIAL
32 1H 2019 Business Highlights Saginaw Driveline Transformation Manufacturing Process Staffing
10% 30% 45% Where We’re Headed 60% 2020 & Beyond 90% 70% 55% 40%
2018 2019 2020 2021 2018 2019 2020 2021 Mfg Source ▪ +3,900 part numbers impacted
Floor Space Utilization (sq. ▪ +500 part numbers to be sourced ft.) ▪ +50 sequences of equipment and material relocations ▪ +1,100 pieces of equipment moved / relocated ▪ Consolidation of 2 facilities to 1 - ~50% reduction in floor space NEXTEER CONFIDENTIAL 2018 2019 2020 2021 utilization
33 1H 2019 Business Highlights Saginaw Driveline Transformation
A Proof-Point… Existing BOP New BOP Where We’re Headed 2020 & Beyond Improvement Manning 70% Std. Hours 36% Floor Space 63%
Scrap/FTQ NEXTEER CONFIDENTIAL 83%
34 1H 2019 Business Highlights Backlog Composition
Order to Delivery Backlog* as of June 30, 2019 ($ in billions)
16% 26% +2.3 -0.2 25.6 25.2 -1.8 10% 3% $25.6B $25.6B 53% EPS
71% CIS 21% N. America HPS Asia Pac. DL EMEA-SA
35% $25.6B New Booking Dec 31, 1H 2019 Gross Adj. Jun 30, Composition 2018 Revenue New (Vol./FX) 2019 18% 12% 11% New / 55% Booking 8% 10% Conquest 4% 2% * Booked business information is compiled through our internal records, and Incumbent 45% such information has not been audited nor reviewed by our auditors. GM Ford FCA BMW PSA RNM SGMW Others
NEXTEER CONFIDENTIAL 35 1H 2019 Business Highlights Investment for the Future!
$198 $481! $84 1H 2019 Investment $114 $283 2H 2018 $144 Capital Spending 1H 2019 $139
2H 2018 Engineering
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36 1H 2019 Financial Highlights
Financial Performance Impacted Largely by Environmental Factors 1. Currency headwind from USD strength 2. Lower OEM production across all regions compared with 2018 3. Decline in China OEM production most impactful 4. GM NA K2 / T1 platform transition driving NA Columns revenue comparison NEXTEER CONFIDENTIAL 37 1H 2019 - Key Financial Metrics ($ in millions)
Revenue EBITDA Net Profit* Free Cash Flow (% of revenue) (% of revenue)
$2,047 $331 $183 $200 $1,832 $277
$131
16.2% 15.1% 9.8% 7.2% $45
1H 2018 1H 2019 1H 2018 1H 2019 1H 2018 1H 2019 1H 2018 1H 2019
* Net Profit Attributable to Equity Holders
NEXTEER CONFIDENTIAL 38 1H 2019 - Revenue Drivers ($ in millions)
Global Revenue Y-O-Y Revenue Drivers
(structural %)
$2,047 $2,047 $1,832 14% ($40) 14% ($82) $1,832 20% 17% ($84) ($9)
66% 69% ($215)
1H 2018 FX China NA All Other 1H 2019 1H 2018 1H 2019 Market CIS N. America Asia Pac. EMEASA FX, China Market and NA Columns Key Drivers
NEXTEER CONFIDENTIAL 39 1H 2019 - Revenue by Region ($ in millions)
Global Revenue Regional Distribution
(structural %) (growth %)
N. America Asia Pac. EMEASA $2,047 $1,832 14% $418 $286 14% $1,343 $1,275 $252 20% ($68) ($20) ($20) 17% $305 ($14) ($93)
66% 69%
1H 2018 1H 2019 1H 2018 V/P/O* 1H 2019 1H 2018 FX V/P/O* 1H 2019 1H 2018 FX V/P/O* 1H 2019 N. America Asia Pac. * Volume / Price / Other EMEASA
NEXTEER CONFIDENTIAL 40 1H 2019 - Revenue by Product Line ($ in millions)
Global Revenue Product Line Distribution
(structural %) (growth %) EPS Columns Driveline HPS $2,047 -8% -20% -11% -16% 4% $1,83215% 15% 4% $304 15% $1,321 $337 $85 17% $1,222 $270 14% $269 $71
64% 67%
1H 2018 1H 2019 1H 2018 1H 2019 1H 2018 1H 2019 1H 2018 1H 2019 1H 2018 1H 2019
EPS Columns Driveline HPS China NA K2/T1 China As Expected Market Transition Market
NEXTEER CONFIDENTIAL 41 1H 2019 - EBITDA by Region ($ in millions)
N. America Asia Pac. EMEASA (% of revenue) (% of revenue) (% of revenue) 16.3% 21.0% 13.3% 14.8% $220 10.1% $34 $189 $88 19.5% $29 $60
1H 2018 1H 2019 1H 2018 1H 2019 1H 2018 1H 2019
NEXTEER CONFIDENTIAL 42 Free Cash Flow and Balance Sheet ($ in millions)
Dec 20182018 1H1H 20192019 Cash and Capital 1H 2018 1H 2019 Gross Debt $ 377 $ 338 Finance Leases $ 5 67 Less: Cash 675 585 Net Debt / (Cash) $ (293) $ (180) $140 $195 Total Equity $ 1,710 $ 1,765 Total Net Capital $ 1,417 $ 1,585 Net Debt / Net Capital n.a. n.a. $323 $240 Liquidity $18 Cash $ 675 $ 585 3 $183 Credit Facilities 376 376 $45 Total $ 1,051 $ 961
Cash from Investing Free Cash Cash Investing Free Cash Leverage / Coverage Ops Activities Flow from Ops Activities Flow Gross Debt to EBITDA 0.6x 0.6x Net Debt to EBITDA n.a. n.a.
NEXTEER CONFIDENTIAL 43 Recognition of Investment Discipline Nexteer Score Investment Grade! We All Recognize This “Score”
Upgraded to ‘BBB-’; Outlook Stable - S&P, October 12, 2017
Upgraded to ‘Baa3’; Outlook Stable - Moody’s, March 16, 2018
NEXTEER CONFIDENTIAL 44 Benchmarking Public Reporting Automotive Suppliers
Automotive Suppliers NA EU CN JPN KOR Total 20 13 13 13 4 63
NEXTEER CONFIDENTIAL 45 North America Europe Great China Japan 1 AAM 1 Autoliv 1 CAAS 1 Aisin Seiki 2 Adient 2 Michelin 2 Fuyao Glass 2 Denso 3 Aptiv 3 Continental 3 Hota 3 JTEKT 4 BorgWarner 4 Faurecia 4 Huayu 4 Koito 5 Cooper-Standard 5 Gestamp 5 Joyson 5 NGK Spark Plug 6 Dana 6 Hella 6 Minth 6 NHK Spring 7 Delphi 7 Leoni 7 NavInfo 7 NSK 8 Gentex 8 Michelin 8 Nexteer 8 NTN 9 Gentherm 9 Plastic Omuium 9 Broad-Ocean Mtr 9 Showa 10 Lear 10 Schaeffler 10 Sanhua 10 Sumitomo Electric 11 Linamar 11 ThyssenKrupp 11 Tuopu 11 Sumitomo Riko 12 Magna 12 Valeo 12 Wanfeng 12 Tokai Rika 13 Meritor 13 Veoneer 13 Xingyu 13 TS Tech 14 Nemak 15 Sensata Korea 63 Comparables 16 Tenneco 1 Hanon 17 TI Fluid 2 Mando 18 Goodyear 3 Mobis 19 Tower 4 Wia 20 Visteon
NEXTEER CONFIDENTIAL 46 Operating Profit Net Profit
Pulling All Levers
SG&A Tax Rate
NEXTEER CONFIDENTIAL 47 Revenue Perper Colleague Net Profit Per Colleague
Pulling All ▪ Enterprise-wide Levers ▪ Many vs. Few ▪ Variable vs. Fixed ▪ “Why”
NEXTEER CONFIDENTIAL 48 Pulling All Cost Levers
Automotive Suppliers
There is no bad weather… Awareness
NEXTEER CONFIDENTIAL 49 OEM Restructuring – Focused on Material Savings
“In their restructuring efforts, OEM’s place a heavy focus on direct and indirect material the source of savings”
NEXTEER CONFIDENTIAL 50 Strategy for Profitable Growth
Specialist Tier 1 Supplier That Customers 1. Rely On for Today and Tomorrow
Capability to Invest in the Business and 2. Drive Future Growth
Laser Focused on Customer Pursuits & 3. Increasing Backlog
Disciplined in Our Approach and Focus 4. “Stick to our Knitting”
NEXTEER CONFIDENTIAL 51 Thank You!
NEXTEER CONFIDENTIAL 52 NEXTEER CONFIDENTIAL 53 CONFIDENTIAL NEXTEER CONFIDENTIAL Topics
1. Global Engineering Structure and Strategy ▪ Understanding how we work, will assist developing the best model for collaboration with our supply partners. 2. Improvements to SCR Process 3. New Technology Focus ▪ Vehicle Architecture Trend . . . Domain Controllers ▪ SbW ▪ EV’s ▪ eBike ▪ CNXMotion ▪ Intuitive Motion Control “Next Big Thing” 3. Technology Development in a Harsh Environment ◼ .
54 NEXTEER CONFIDENTIAL
Global Engineering Structure and Strategy
55 NEXTEER CONFIDENTIAL Engineering Capabilities & Product Portfolio Global Engineering & Customer Support Global Technical Center (GTC)
• Portfolio Vision • Product and Process Architecture Strategy • Advance Core Product Technology • Upstream Software Development and R&D Innovation Technical Center (TC)
• Product and Process Engineering • Product Validation • Prototype Manufacturing • Vehicle Integration and Testing • Upstream Software Development and R&D Innovation
56 NEXTEER CONFIDENTIAL Globalization with Regional Autonomy Core Engineering Competency
Globalisation - Global Aggregate* 70% 67% 63% 58% 53% 50%
2014 2015 2016 2017 2018 2019
* includes Applications Engineering and Continuous Improvement activities
Regional Autonomy and Competency approaching 70%
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58 NEXTEER CONFIDENTIAL
Improvements to SCR Process
59 NEXTEER CONFIDENTIAL Improved Supplier SCR Submission Process
▪ Create a detailed presentation explaining the change ➢ PowerPoint of current process/material/location vs proposed process/material/location and data to support the change
▪ Submit a high level timeline ➢ Include key program milestones – i.e. PO receipt, tool leadtime, validation, PPAP ➢ Include responsible names and change management plan
▪ Provide validation plan data that supports the proposed change
▪ Floor plan changes should include the current and proposed new layout ➢ Identify new versus existing equipment ➢ Identify machines that remain intact versus the machine that require disassembly
▪ Part inventory management plan ➢ Current inventory of parts ➢ Value stream for new parts/material (understand risk areas) ➢ Planned bank builds to protect production
▪ Cost breakdown for items requiring funding
60 NEXTEER CONFIDENTIAL
New Technology Focus
61 NEXTEER CONFIDENTIAL
Strategy for Profitable Growth
Expand Strengthen Capitalize on Optimize Cost Pursue Select Target China & Diversify Technology EPS as Enabler Structure Acquisitions & Emerging Revenue Base Leadership for ADAS & Alliances Markets
A Well-Defined Plan to Drive Stakeholder Value
62 Vehicle Architecture is evolving: Our Functions will be distributed among EPS, Domain and Cloud
Monetizable Customer Features
Time-critical Motor Controls
NEXTEER CONFIDENTIAL
63 Steer by Wire: New Era in NEXTEER CONFIDENTIAL SAFETY & PERFORMANCE Steering feel emulator Road wheel actuator ▪ “Connected” Steering Feel is a critical market demand
▪ Supports both manual & automated driving, as well as mixed mode driving
▪ Provides packaging flexibility & vehicle system cost reduction
▪ Enables advanced safety & comfort features
– Quiet Wheel™ Steering
– AES - Automated Emergency Steering
– Enhanced Stability Control
– Variable Steering Ratio
▪ Target Start of Production 2024/5
64 NEXTEER CONFIDENTIAL Automated Shuttle / Delivery Vehicles ▪ Market Description – Autonomous vehicles used for first/last mile people transportation, and goods delivery – Speeds typically limited to 25 mph – Restricted and highly controlled routes – Intensified interest and investment
▪ Market Challenges – Inexperienced system integrators, limited competency in designing and validating systems, and building vehicles. – Immature Federal, State, and Local Regulations – Technology and Infrastructure gaps – Cost of development
▪ Opportunities – Learning environment for development of future ADAS/AV technology – Nexteer competency in system design, test, and integration – Fit with CNXMotion technology of integrated steering and braking control algorithms.
65 NEXTEER CONFIDENTIAL EPS Product Readiness on NEV Truck
Lead EPS Supplier on North America Full Size Truck and SUV EV’s o GM, Ford and FCA all planning Nexteer REPS o Nexteer holds 90% of the ICE and EV Truck market
Well-positioned with developed technologies applicable to Truck EV’s o Up to 24 kN REPS loads (battery packs → heavier vehicles) o 12 Volt systems (standard) o 48 Volt capabilities (if-needed) o Modular Power Pack (MPP) electronics applicable for both ICE and EV’s including ADAS L3-5
Low volume applications, most are incremental to today’s ICE business o Different customer base who will buy EV Trucks
66 NEXTEER CONFIDENTIAL eBike
▪ Project Description Global eBike Market – Premium eBike drive unit 40 35 – Compact, powerful, quiet, durable, lightweight, cost 30 effective 25 20 ▪ Current Status 15 – Production in Saginaw 10
plant 6 TotalSales Volumes inMillion 5 0 – Approx. 3000 units 2017 2018 2019 2020 2021 2022 shipped for sale in Europe. Asia Europe United States
67 Sweden 2019
NEXTEER CONFIDENTIAL 68 NEXTEER CONFIDENTIAL
“The Next Big Thing”
69 NEXTEER CONFIDENTIAL
Technology Development in a Harsh Environment
70 Grow your roots deep NEXTEER CONFIDENTIAL
71 Technology Development in a NEXTEER CONFIDENTIAL Harsh Environment
▪ Invest in Technology
▪ Grow Your Roots Deep. Create excellence within what you do well.
▪ Relentlessly Focus on Cost
▪ Constantly Set New Speed Records
▪ Make Agility a Way of Life
72 NEXTEER CONFIDENTIAL 73 CONFIDENTIAL NEXTEER CONFIDENTIAL 74 CONFIDENTIAL NEXTEER CONFIDENTIAL WHY Do We Deliver Motion Control Solutions?
▪ We Move People
– We deliver protection, personality, performance & passion in driving. – We make driving safer, more fuel-efficient & more fun for today’s world & an automated future. – Our loved ones & millions around the globe depend on Nexteer’s safety-critical solutions everyday.
75 NEXTEER CONFIDENTIAL Winning The Long Game
▪ The World is Changing
▪ Beat the “Giants” by Playing to Our Strengths
▪ Creating Our Future Together
76 The World is Changing…
NEXTEER CONFIDENTIAL 77 NEXTEER CONFIDENTIAL How?
78 Our Industry is Rapidly Changing…
Elon Musk Unveils Model Y SUV in Next Big Wager
Starting price for Tesla’s new electric car will eventually be $39,000
Baidu Plans to Mass Produce Autonomous Cars in Five Years Self-Driving Car Startup nuTonomy Raises $16 Million in funding
Uber’s first self-driving Cars Will Start
NEXTEER CONFIDENTIAL 79 Picking Up Passengers This Month NEXTEER CONFIDENTIAL Top 5 Mega Trends
1. Electrification / EVs / NEV
2. Mobility as a Service (MaaS) & Shared Mobility
3. Software as a Product (SaaP)
4. Connectivity / 5G, IoT, Industry 4.0
5. OEM’s Short Game preparing for the Long Game
– OEM Portfolio Mix – Bundle Sourcing New Tech – Workforce & Global Platform Calibration
80 NEXTEER CONFIDENTIAL Top 5 Mega Trends
1. Electrification / EVs / NEV
2. Mobility as a Service (MaaS) & Shared Mobility
3. Software as a Product (SaaP)
4. Connectivity / 5G, IoT, Industry 4.0
5. OEM’s Short Game preparing for the Long Game – OEM Portfolio Mix – Bundle Sourcing New Tech – Workforce & Global Platform Calibration
81 NEXTEER CONFIDENTIAL
82 China: HEV & BEV Market Size will Overtake ICE by 2024 NEXTEER CONFIDENTIAL
83 What It Could Mean to Nexteer? Electrification Plays to Our Strengths
▪ REPS/PEPS Leadership – Under-hood steering required for EV’s rack loads – Emergence of Truck EVs – Opens HPS-to-EPS Conversion Wave for HD Trucks
– DPEPS our biggest opportunity to grow EPS market share
▪ SbW Leadership, Packaging, Maneuverability, Connection to MaaS
▪ Active Rear Steer: EV Maneuverability/Stability
NEXTEER CONFIDENTIAL 84 NEXTEER CONFIDENTIAL Top 5 Mega Trends
1. Electrification / EVs / NEV
2. Mobility as a Service (MaaS) & Shared Mobility
3. Software as a Product (SaaP)
4. Connectivity / 5G, IoT, Industry 4.0
5. OEM’s Short Game preparing for the Long Game – OEM Portfolio Mix – Bundle Sourcing New Tech – Workforce & Global Platform Calibration
85 OEM Restructuring – Focused on Material Savings
“In their restructuring efforts, OEM’s place a heavy focus on direct and indirect material the source of savings”
NEXTEER CONFIDENTIAL
86 NEXTEER CONFIDENTIAL
Strategy for Profitable Growth
Expand Strengthen Capitalize on Optimize Cost Pursue Select Target China & Diversify Technology EPS as Enabler Structure Acquisitions & Emerging Revenue Base Leadership for ADAS & Alliances Markets
A Well-Defined Plan to Drive Stakeholder Value
87 What Makes Different?
External Internal ▪ Flexibility & Responsiveness ▪ Inspiring Vision and “Why?”
▪ Vehicle level Integration DNA ▪ Extremely competitive BOD/BOM/BOP
▪ Superior NVH capability ▪ Customers trust us
▪ Global footprint (Engineering & Mfg) ▪ We provide superior customer service ▪ In House Ownership of R&D, Design, ▪ Unmatched quality, delivery, and launch Validation & Manufacturing performance ▪ Competitiveness ▪ THE leader in intuitive motion control ▪ Market Share Leadership
88 Voice of Customer NEXTEER CONFIDENTIAL
“Nexteer is really staying on top of all launch aspects. Quick turnaround on late changes.”
“Your level of customer support, quality, and supply chain management is recognized and really going well.”
89 NEXTEER CONFIDENTIAL A Balanced and Diverse Customer Base Serving More Than 60+ Customers Including…
90 60 Million EPS Production Milestone in 2019
NEXTEER CONFIDENTIAL
91 NEXTEER CONFIDENTIAL Another 2019 Milestone…
Nexteer produced it’s 20 millionth REPS unit globally in April
2010 – 2019
92 Creating the Future Together
NEXTEER CONFIDENTIAL 93 NEXTEER CONFIDENTIAL
What Does All That Mean?
94 NEXTEER CONFIDENTIAL
Cost Competitiveness Required to Remain Viable!
95 NEXTEER CONFIDENTIAL
Uncontrollable Controllable
▪ Customer Volume Demand ▪ Customers Served
▪ Customer Supplier Strategy ▪ Attitude / Creativity
▪ Competitor Actions ▪ Competitiveness
▪ Pace of AV / NEV / SbW ▪ Operational Excellence
▪ Trade, FX, Commodities ▪ Partners
96 Call to Action …
▪ Be responsive & Accountable
▪ Be a Partner
▪ Be Competitive
▪ Live a “Culture of Quality”
NEXTEER CONFIDENTIAL 97 NEXTEER CONFIDENTIAL
98 Thank You!
NEXTEER CONFIDENTIAL 99 NEXTEER CONFIDENTIAL 100 CONFIDENTIAL NEXTEER CONFIDENTIAL 101 CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL 103 CONFIDENTIAL NEXTEER CONFIDENTIAL 104 CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL NEXTEER CONFIDENTIAL