Automotive Outsouring Analysis
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Automotive Outsourcing Analysis June 2018 June 2015 1 Source : DRAUP 1 The Top 10 Automotive Services Companies Corresponds to more than 65% of total Outsourced Workforce among G500 Auto Companies Outsourced HC split among G500 Companies 11% 10% 10% • Top 10 Automotive Services Companies comprises of ~65% of total Automotive Outsourced HC among G500 companies • Bertrandt, Altran and EDAG are the top 7% three service providers having more than 30% of outsourced Workforce among 5% 5% G500 Companies 4% 4% 4% • 75% of total Outsourced Workforce is 3% associated with 10 G500 Companies • Renault, Volkswagen, Tata Motors, BMW, and Daimler are top 5 Automotive Companies outsourcing to more than 50% of total Outsourced Headcount Among G500 Auto Companies 2 Note – DRAUP data curated from Bertrandt financial reports published annually and updated in June, 2018 Source : DRAUP 2 Definitions for Analysis on Automotive Outsourcing Subvertical Definition It includes HVAC, Seats, Body Electronics, Climate Control, Cockpit modules, Headlamps, Injection molds, Body Engineering Cables & Wiring, Thermal Systems, Lighting, Interiors & Exteriors etc. It includes airbags, inflators, active safety systems, passive safety systems, seatbelts, safety electronics, Safety systems retractor pretensioner, anti-braking system etc. It includes Lidar, Radar, OTA, Advanced Driver Safety, Connected Solutions, Artificial Intelligence, V2X, V2V, Autonomous & Connected Cars Parking Assist, Computer Vision, Lane Keep Assist etc. It includes drivetrain, engine, transmission, diesel Systems, Starter motor, generator, exhaust systems, Powertrain Engineering calibration, vehicle dynamics, engine peripherals, drive shaft, propeller etc. Chassis Engineering It includes suspension, steering, braking systems, clutch systems, differential etc. Infotainment Systems It includes car multimedia, audio systems, dashboard, handsfree etc. Wheel Assembly It includes tyres, wheels & decks etc. Hybrids It includes BEV, PHEV, HEV, Fuel Cells, Diesel-electric, Biofuels etc. 3 Note – DRAUP data curated from Bertrandt financial reports published annually and updated in June, 2018 Source : DRAUP 3 Bertrandt - Automotive Outsourcing Analysis June 2018 June 2015 4 Source : DRAUP 4 Financial Overview – Bertrandt revenue stood at ~ € 992.27 M in FY 2016/2017, increased by € 0.25 M from FY 2015/2016. The Bertrandt Group has been providing development solutions for the international automotive and aerospace industries in Europe, China and the USA ~ 12,970 1974 Ehningen, Germany € 992.27 Million Employees (FY’17) Year of Establishment Company Head Quarters Revenue (FY’17) Revenue Growth Revenue by offering (FY 2018) (in Million Euro) - (for 5 years ) Electrical system/Electronics, 21% 992.02 992.27 934.78 870.56 782.4 6.12 % Revenue CAGR (5 Yrs) Physical Digital Engineering, Engineering, 59% 2012-13 2013-14 2014-15 2015-16 2016-17 20% 5 Note – DRAUP data curated from Bertrandt financial reports published annually and updated in June, 2018 Source : DRAUP 5 KEY STRATEGIC PRIORITIES: Acquisition, Key Focus, Partnerships & Investments Key Focus Investments Partnerships • Bertrandt has been focusing on Interior • In 2016/ 2017, Bertrandt has invested about 38.2 • Bertrandt has partnered with SGL group, functionality and vehicle safety. million Euro to develop the new technology in who is leading manufacturer of carbon • Bertrandt is also focusing on the innovative connectivity. products and materials in order to develop motorsport project lighting system is to develop the interior components. and build a much brighter, lighter and well-designed headlamp - using carbon as a material. • Bertrandt is also aiming to set new standards in safeguarding automated driving functions as well as driving dynamics and braking systems 6 Note: Analysis is based on the news articles, journals etc updated in June, 2018 Source : DRAUP 6 Most of Outsourcing is focused on Powertrain and Body Engineering Automotive Outsourcing by Activity 6300 – 6500 Outsouricing 52% 48% Outsourced HC Embedded Non - Embedded Automotive Outsourcing by sub-verticals Automotive Outsourcing by Geography Spain, 2% United Japan, 2% Kingdom, 1% Body Engineering 27% United States of America, 7% Powertrain Engineering 22% Car Electronics 20% ADAS & Autonomous Cars 13% verticals - France, 21% Germany, Infotainment & Connected 10% 67% Sub Sub Chassis Engineering 7% Hybrid & Electric Mobility 1% Note - Above analysis is based on data taken from DRAUP engineering module, updated as on June,2018 Source : DRAUP 7 Key Activities across Sub – verticals (1/4) Area Headcount Key Customers Project Details/Activities • Technical Risk Classification & Reliability BMW Ford motor company • Development of Industrialization External Accessories Volkswagen Group • Automobile Dashboard Development ,Seat Development & Steering for common vehicle &Architect Daimler AG General motors Exterior Body Body 3000-3200 Groupe PSA Engineering • Development of Hill Test Dynamic Lighting Functions &BMW X5 X6 X7 component Development, Johnson Controls Nissan Design of Door Panel Renault • On the road testing, seat comfort evaluation and benchmarking for Mini and BMW Tesla inc • Design & Development of Exterior Lighting • Development of complete vehicle - aerodynamics • Diesel Engine & Powertrain root cause analysis of series Cars • Propulsion System Testing & Validation & Testing of Vehicle Powertrain System BMW • Diesel Calibration & Gasoline Direct Injection components Nissan • Develop & Testing Battery/Control Units/Motors , Development & Validation on Power units of Powertrain 1250-1350 Renault Engineering Delphi Automotive Electric Powertrain Ford Motor company • Designing moulded parts and assemblies for Audis V6 and V8 diesel engines such as crankcase, Volkswagen Group cylinder head, turbocharger holder, oil tank etc and also sheet metal and plastic parts for the cooling system with PTC Creo2. Note - Above analysis is based on data taken from DRAUP engineering module, updated as on June,2018 Source : DRAUP 8 Key Activities across Sub – verticals (2/4) Area Headcount Key Customers Project Details/Activities • Technical support in the software development of Continental Chassis Control Systems for AUDI AG Execution of road tests for the validation of Prototype Software, Failure analysis in the vehicle and on BMW Ford motor company the test bed, Failure management and coordination of bugfixes Chassis 700 - 800 Volkswagen Group Engineering • Brake Design & Software Development Chassis Control System Daimler AG Continental AG • Prototype design and CAD design for PORSCHE • Technical support in the software development for AUDI and PORSCHE Electric Power Steering Systems • Development & Testing of Automotive Electronics • Development of Engine Control Sensors Volkswagen Group • Developing New Hybrid Electric Vehicle Controller Daimler AG • Integration soft charger in Electric Vehicle & Development of Energy Management System for Hybrid Car Electronics 600 - 700 Nissan Renault Vehicles Hella • Keyless Go Systems/Run Manual Tests & Project coordination with VW, Porsche, Lamborghini and Bentley • Development of electrical and electronical testing for Infotainment projects of new SEAT & AUDI models Note - Above analysis is based on data taken from DRAUP engineering module, updated as on June,2018 Source : DRAUP 9 Key Activities across Sub – verticals (3/4) Area Headcount Key Customers Project Details/Activities • Camera based Driving Assistance System • Development in the field of Camera based Driving Assistance System • Vehicle Testing/Integration & Application of Park Aid Feature to Ford Vehicle Programs BMW ADAS & 450- 500 Valeo • Development of Autonomous Cruise Control (ACC) System for driver assistance in various traffic Autonomous Cars Volkswagen scenarios • Development of real-time simulation models and the implementation of vehicle models, which represent the physical properties of chassis, powertrain or energy systems. These models are used to test vehicle control and assistance systems on Hill systems • Testing & Simulation BMW • Planning for vehicle testing Safety 200 - 250 Volkswagen Group • Full Vehicle Subsystem Assembly/Crash Calculation System Renault • Simulation & Vehicle safety Porsche AG • Airbags development for Audi Note - Above analysis is based on data taken from DRAUP engineering module, updated as on June,2018 Source : DRAUP 10 Key Activities across Sub – verticals (4/4) Area Headcount Key Customers Project Details/Activities • Development & Validation of Digital & Analog Radio Tuner Infotainment 170-190 BMW • Prevention & Reactive Quality work for TV Modules & Inbox Radios in BMW Vehicles & Connected Volkswagen Group • Project Management and Software Development: Audi Drive Select • Lead Engineer / Technical Consultant in Connected Car BMW • Development of Battery Management Software for Hybrid & Electric Series Hybrid & 60-80 Renault • RENAULT- NISSAN Projects - Hybrid and Electrical Powertrain Control Electric Mobility Nissan Mitsubishi Alliance Note - Above analysis is based on data taken from DRAUP engineering module, updated as on June,2018 Source : DRAUP 11 Altran – Automotive Outsourcing Analysis June 2018 June 2015 Financial Overview – Altran revenue stood at ~€ 2.3 B in FY 2017, increased by € 0.2 B from FY 2016 Altran Technologies, SA is a global innovation and engineering consulting firm. It operates primarily in high technology and innovation consultancy. 1982 Paris, France ~ € 2.3 Billion ~ 33,665 Year of Establishment Company Headquarters