Gianmarco Giorda

Director Operations ANFIA

Skopje, 17th June 2010

Opportunities for Collaboration

with the Italian Automotive Industry

Source: Global Insight (estimations March 2010)

Outlook: global sales of

Light Motor vehicles vs 2014 Global sales of cars and LCV (000/units and chg % 2010 vs 2009 and 2014 vs 2010)

1

WORLD

63,6 66,685,5

09 10 14

+4,7%

+28,3%

OT H ER S A SIA

5,3 5,9

8,1

09 10 14

+37,3%

+11,3%

CHINA

13,0 14,618,6

0 9 10 14

+27,8%

+12,2%

SOUTH AMERICA

5,3 5,6 6,6

09 10 14

+17,9%

+5,6%

AFRICA & M.EAST

3,1 3,24,3

09 10 14

+34,4%

+3,2%

NAFTA

12,7 14,119,7

0 9 10 14

+39,7%

+11%

Source: Global Insight (estimations March 2010)

Outlook: production of

Light Motor vehicles vs 2014 Production of cars and LCV (000/units and chg % 2010 vs 2009 and 2014 vs 2010)

2

AFRICA & M.EAST

1,11,8

2,5

09 10 14

+38,9%

+63,6%

WORLD

57,7 66,686,0

09 10 14

+15,4%

+29,1%

CHINA

12,0 14,418,7

09 10 14

+29,9%

+20%

SOUTH AMERICA

3,6 4,0 4,6

09 10 14

+15%+11,1%

3

ISTITUTIONAL RELATIONS

TECHNICAL ASSISTANCE

INTERNATIONAL ACTIVITIES

STUDIES AND STATISTICS

ANFIA, Italian Association of the Automotive Industry – which represents 280

national companies – is structured in 9 product-based groups:

Buses

Vehicle

Manufacturers

Sports &

Special Cars

Car Coachbuilders

Coachbuilders

Manufacturers

Tyres

Motor Caravan

Manufacturers

Trailers

Components

Who we are

TRAINING

4

The Italian Automotive sector in the

European framework

In Italy the automotive sector represents nearly 3,000

manufacturers present on the domestic territory:

• one of the main employers

• 1st private investor in R&D

• 1st as for total fiscal income

• Export: 8.1% (2008)

EUROPE ITALY

Turnover > 710 billion € 95 billion €

Manpower 2.3 ml (+10 ml

indirect)

275,000 (around 1 million

indirect)

R&D 20 billion € 2/3 billion € / year

Fiscal income 360 billion € 79.52 billion €

Source: ANFIA processing on data and estimation issued by ISTAT, EUROSTAT, ACEA

Components Industry in Italy

Source: ANFIA processing on the basis of ISTAT, EUROSTAT, ACEA data

Turnover €45 bn

Export €18.4 bn (41%)

Trade balance up € 6,8 bn

R&D 3%

Total companies 2,500

No. of directly employees 170,000

5

• Modules and systems

• Lighting and signalling devices

• Fuelling and exhaust system components

• Electrical / electronic components

• Transmission components

• Components for bodyworks and interiors

• Engine components

• Steering, suspension and braking system components

• Starting and ignition components

• Equipment and mouldings

A complete supply chain “from concept to car”

WORLD LEADERSHIP

CNG (Compressed Natural

Gas) systems

Powertrain technologies

Telematics and infomobility

Short/medium term challenges

for the Italian Supplier Industry

Challenges

6

Volumes

Price

Costs

Cash

Companies have to Redefine their

Business Model

- Increase volumes of the entry level cars

- Modify Product Portfolio focusing on

high growth rate and profitable

technologies (i.e. powertrain,

electronics, telematics solutions, etc)

- Consider the opportunities of partnerships and

consolidation processes among the supplier

companies

- Redefine Customer Portfolio focusing

on emerging and fast growing markets

- Consider the opportunity to locate new

investments in the “low cost countries”

(i.e Western Balkans countries)

Actions

Becoming global

players and

succeeding in

facing the

competitive

pressure

1. Highly competitive overall cost structure

2. Labor availability, cost and quality

3. Strategic location and proximity

4. Improving fiscal and incentive regimes

Main Competitive advantages

REQUIREMENTS

Mandatory: any automotive supplier

must be compliant

Best Practice - Best in Class: able to give

companies competitive advanteges versus

competitors

General requirements for the automotive supply

chain

Mandatory requirements

1. ISO/TS 16949 REGISTRATION (for first tier suppliers)

2. ISO 9001 REGISTRATION (for non first tier suppliers)

3. Knowledge and application of automotive core tools

• FMEA

• MSA

• SPC

4. CUSTOMER SPECIFIC REQUIREMENTS

Best practice- Best in class

• RISK MANAGEMENT

• LEAN ORGANIZATION

• SIX SIGMA

• KAIZEN

• TPM

• 5S

On these methodologies

ANFIA organizes training

courses all over the

world

Success story –

Johnson Controls Skopje Plant

Plant opened in 2008

Total land surface

50.000 m²

Plant size: 5.600 m2

Manufacturing area – 3.200 m2

Logistics area – 560 m2

Offices and other areas – 1.840 m2

People

Currently: 203 employees

OEM Customers:

PSA, RSA, Renault-Nissan

Daimler, Smart, BMW

To start this FY: VW, Skoda, Ford

Direct Customers - Internal:

JC Namestovo Plant (Slovakia)

JC Remchingen Plant (Germany)

JC Namsa Plant (Korea)

Success story –

Johnson Controls Skopje Plant

Key Figures

Why we opened

the plant in Macedonia?

The plant is part of Johnson Controls’ long term strategic objective to position itself in

the growth markets of Eastern Europe, offering at the same time a superb platform to

supply the new markets

We are strengthening our local presence and expanding our production network to the

growth markets of Eastern Europe

The location of this plant optimizes the synergies provided by our development center

only 200 km away in Sofia, Bulgaria

What competitive advantages does Macedonia offer?

A geographically central position in Eastern and Central Europe

Good access to all Eastern European markets

Good staffing capacitites with a high standard of education, with wage cost advantages

It is only a short distance to support the emerging markets in Eastern Europe

Investment incentives offered by the Government since the plant is located in a free

economic zone

How satisfied are we with our

investment in Macedonia?

We supply our customers for the past 2 years with high quality products

that fully match their quality standards as well as those of Johnson Controls

The plant is being staffed regularly with the workforce with necessary

qualifications to deliver on time and high quality products

The quality of support we get from the local suppliers is matching our

high standards

Overall we are satisfied with our investment in Macedonia and we think

that we have achieved our medium and long-term strategic goals that

include constant improvement of customer service and strengthening the

company’s position on the growth markets of Eastern Europe

Our investment was not only an investment in the construction of the

plant, but also in technology, people and in the community. This is benefit

for Johnson Controls, our customers and the local community

Opportunities of collaboration with the Italian

automotive sector

Some concrete proposals

- To include all presentations and newsletters coming from Investments

Agencies on ANFIA web site

- To organize single Workshops by country (or, as an alternative, directly an

appropriate one concerning “Western Balkans countries”) in Torino and

invite all companies that are potentially interested in investing in that area

- To arrange a suitable Mission of Italian companies with the aim of

accompanying them to visit some areas of major interest

Thank you for your

attention

Contacts

ANFIA - Italian Association of the Automotive Industry

Ph. +39 011 5546505

Fax +39 011 545986

g.giorda@anfia.it

www.anfia.it