BUSINESS DAY
Assystem Global Product Solutions (GPS) PARIS – 12 OCTOBER 2016
TABLE OF CONTENTS DAVID BRADLEY - EVP ASSYSTEM GPS GPS POSITIONING GPS ON THE MOVE: NOW GPS ON THE MOVE: GOING FORWARD
3 14 19
ALEXANDER GRAF - CEO GERMANY & VP INDUSTRY GPS IN GERMANY
26
ROCH THALLER - VP AUTOMOTIVE & TRANSPORTATION GPS IN ACTION - CASE STUDIES
2
33
GPS POSITIONING
GPS POSITIONING
A TRUSTED PARTNER IN THE DEVELOPMENT OF END-TO-END ENGINEERING SOLUTIONS FOR TECHNOLOGY INTENSIVE SECTORS Key drivers
8,5001
Positive market dynamics
Full product life-cycle coverage in all technology intensive sectors
3 fundamentals: People, Processes & Intellectual Property
Global and integrated network to support our clients
TOTAL STAFF
€530m
IN REVENUE IN 2015
Technology intensive sectors
10
Aerospace 1 Employees,
Automotive
Industry
contractors and staff at subcontractors
Transportation
COUNTRIES
4
GPS POSITIONING
R&D OUTSOURCING MACRO TRENDS Future demand drivers SUSTAINABILITY
IOT
SAFETY
VALUE FOR MONEY
Supply chain consolidation trends MARKET DEMAND Technical assistance
Sub project
GPS TODAY Project
Transformational outsourcing
Business process outsourcing
COMPETITION High number
Suppliers with critical mass (100 FTE min)
Reduced panel of suppliers (< 20)
Privileged partners (~4)
Principal partner (1-2) 5
GPS POSITIONING
POSITIVE MARKET DYNAMICS FOR GPS
AEROSPACE & DEFENCE
AUTOMOTIVE
INDUSTRY
TRANSPORTATION
GLOBAL MARKET AVAILABLE MARKET
6
GPS POSITIONING
FULL PRODUCT LIFE-CYCLE COVERAGE IN THE 4 GPS SECTORS Indicative/not exhaustive
DESIGN
AEROSPACE
AUTOMOTIVE
INDUSTRY
TRANSPORTATION
PRODUCTION
Airframe engineering Propulsion systems Interiors Avionics
ADAS/e-mobility Body in white/Trim Infotainment Embedded electronics prototyping
HMI systems Connectivity Product design
Signalling Safety Train design/TCMS Independent safety Assessment
IN-SERVICE SUPPORT
Serial support Head of version engineering Product test/Quality Manufacturing/Supply chain
Process design & Set up Manufacturing support Supply chain management
Value engineering Supply chain management Process automation
Supplier management
Upgrades and modifications Life cycle cost optimisation Incident analysis System test and validation
Cybersecurity Field support Total cost of ownership optimisation Revamping 7
GPS POSITIONING
3 FUNDAMENTALS 1
2
PEOPLE
People Development
Assystem Institutes dedicated to training
Remote working
PROCESSES
Global Management System
Design management
Process automation
International mobility
Project & risk management
Continuous professional development
Delegated design authorisation
Independent approvals
EN9001 EASA- DOA
3
INTELLECTUAL PROPERTY
R&D Projects
IPR
Cubesat Amphibian MiTu Processes S/W test Assyst-me
Partners
Cellular Core Tech 8
GPS POSITIONING
CONTINUOUS INVESTMENT IN PEOPLE Employee training is a priority for Assystem
4
Institutes created to train and develop GPS expertise
Project Management Institute Aerospace Institute Automotive Institute Systems Institute
9
GPS POSITIONING
STATE-OF-THE-ART PROCESS MANAGEMENT GPS GLOBAL MANAGEMENT SYSTEM Client requirements
STATE-OF-THE-ART PROCESS MANAGEMENT
(Airbus, Rolls-Royce, Alstom)
International
standards (ISO 9001, EN9100, PMI,…)
Common
processes for all geographies
10
GPS POSITIONING
INTELLECTUAL PROPERTY - EXAMPLES OF INNOVATION
CUBE SATELLITE
MITU
CELLULAR CORE TECH
HARD- AND SOFTWARE SOLUTIONS FOR TESTING 11
GPS POSITIONING
GLOBAL NETWORK AND LOCAL PRESENCE
Strong pan-European presence with key positions in France, UK and Germany
Capabilities and nearshore centre in Romania
Capabilities and offshore centre in India
Emerging North American centre
8,5001 total staff in 10 countries 1Employees,
contractors and staff at subcontractors
12
GPS POSITIONING
NEARSHORING: EXAMPLE IN THE AUTOMOTIVE SECTOR AUTOMOTIVE ENGINEERING CENTRE
> 730
Automotive engineers
> 20 years
offshore expertise in Romania
Global technical office support from Automotive Engineering Centre
2 premises
+ Local front offices close to European automotive clients
Bucharest, Iasi
AUTOMOTIVE ENGINEERING CENTRE AT THE HEART OF OUR NETWORK OF CAPABILITIES 13
GPS ON THE MOVE: NOW
GPS ON THE MOVE: NOW
ORGANISATIONAL STRUCTURE: GEARED TO FACILITATE GROWTH STRATEGIC BUSINESS UNITS
REGIONS
Strategic roadmaps Global client development
Operations/Project delivery Capability development REGIONS
AEROSPACE
INDUSTRY
AUTOMOTIVE
TRANSPORTATION
PARIS
SOUTH WEST
UK
GERMANY
NORTH AMERICA
SPAIN/ PORTUGAL
INDIA
ROMANIA
NEW COUNTRY
+
Geographical expansion facilitated by regional
model Limited effect on organisation when operations start up in a new country
15
GPS ON THE MOVE: NOW
KEY CLIENTS IN OUR 4 SECTORS
AEROSPACE
AUTOMOTIVE
INDUSTRY
TRANSPORTATION
ROLLS ROYCE
16
GPS ON THE MOVE: NOW
RECENT GROWTH DYNAMICS HEALTHY TO VIGOROUS ORGANIC GROWTH Both in &
Aerospace
Automotive
CHANGE IN INDUSTRY & ACTIVITY MIX
DECREASE IN STAFFING ACTIVITY IN GERMANY
̴ 33%
2%
in Automotive1 vs < 25% in 2014
in LAK1
down from 4% in 2014
̴ 35%
in manufacturing & in-service support activities1 vs ̴ 10% in 2014
1
Based on total H1 2016 GPS revenue
17
GPS ON THE MOVE: NOW
BREAKDOWN OF REVENUE BY LIFE-CYCLE PHASE1 In-service 8%
Manufacturing & Supply chain 26%
LAK 2%
Structure
PRODUCT & SYSTEMS DEVELOPMENT 64%
26%
Systems
15%
44%
4% 11%
Engines
Electronic
Support
1
Capability-driven model creates growth opportunities
Based on total H1 2016 GPS revenue
18
GPS ON THE MOVE: GOING FORWARD
GPS ON THE MOVE: GOING FORWARD
4 GROWTH DRIVERS 1
Focus on customers resource strategy
Benefit from supply panel reductions
Enhance size and scope of business with key accounts
CLIENT FOCUS
CAPABILITYDRIVEN GROWTH 4
Develop capability clusters to take proven business offers to new sectors/clients
Carry out selective external growth to foster use of new capabilities
2
CLIENT SUPPLY CHAIN
REGIONAL GROWTH
Capitalise on clients’ globalization strategy to extend geographical footprint
Provide additional support to OEMs’ Tier1 supply chain
3
Target regional growth to access new clients
20
GPS ON THE MOVE: GOING FORWARD
DEVELOPMENT/IMPLEMENTATION OF CENTRES OF EXCELLENCE Objectives
Organise key GPS capabilities around centres of expertise
Provide high value-added solutions based on expertise, tools and methodologies
Enhance competitiveness through combined use of onshore/offshore resources
Support regional business development through mobilisation of key experts & sales resources
CoE
21
GPS ON THE MOVE: GOING FORWARD
REGIONAL GROWTH PRIORITIES
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PRESENCE BUILD-UP
INITIAL FOOTHOLD
GPS ON THE MOVE: GOING FORWARD
EXTERNAL GROWTH: PRIORITIES RECENTLY
Focus on acquiring expertise
FUTURE ACQUISITIONS
To serve regional & capability-driven growth strategy
23
GPS ON THE MOVE: GOING FORWARD
MEDIUM TERM TARGETS Objective of balancing revenue growth between organic & external growth • 5%-10% per year
& Automotive
ORGANIC GROWTH
Industry
• 5% per year Aerospace
Transportation
EXTERNAL GROWTH
in a market driven by technological and environmental innovations
fuelled by panel concentration, manufacturing & in-service support positioning
• 0%-5% per year driven by market share growth
• Offer new capabilities to our Top 10 clients, i.e. “routes to market”, and serve their globalisation needs • Serve regional growth priorities
Enhanced EBIT margin thanks to:
Sustained growth Improved business mix Efficiency gains for project delivery (lean management, CoEs, near/offshoring) & support functions 24
Q&A
GPS IN GERMANY
GPS IN GERMANY
A SIGNIFICANT FOOTPRINT IN GERMANY €107m in revenue in 2015
Engineering solutions & products
Aerospace Automotive Transportation Industry
Support along the whole engineering lifecycle Engineering partner for mechanics, electronics and software Regional operations with global capabilities Fully-equipped Assystem locations close to clients
Rostock
Stade
Hamburg Bremen
Wolfsburg
Berlin
Köln Oberursel
1,000+
INDUSTRY & TRANSPORTATION 10%
staff
AEROSPACE Stuttgart
40%
Certifications
EN ISO 9001 EN 9100 (aviation standard) ISO 27001 (information security management
Ingolstadt Donauwörth München
50% AUTOMOTIVE AEROSPACE
AUTOMOTIVE INDUSTRY & TRANSPORTATION GmbH
27
GPS IN GERMANY
ASSYSTEM’S STRATEGY IN GERMANY (1/3) Ambition 2020: to double revenue and significantly enhance EBIT margin
Drivers
Focus on all of our market sectors
Growth mainly led by Automotive and Industry & Transportation
Continuation of the business model transition in Aerospace from hired labour/LAK to fixed-price, outsourcing/offshore
Global solutions based on centres of excellence (CoE) that offer high organic growth opportunities (Cybersecurity, Test House, Embedded software, Industry 4.0)
Acceleration of growth: 1-2 planned acquisitions in Automotive and Industry (targeted individual size: €30m/€40m revenue)
28
GPS IN GERMANY
ASSYSTEM’S STRATEGY IN GERMANY (2/3) Execution levers
Client diversification
Export of capabilities & solutions from German CoE
Increase competitiveness:
Optimised use of resources (CoE, onshore/offshore)
P&L responsibility per region
One integrated operations & client management model
29
GPS IN GERMANY
ASSYSTEM’S STRATEGY IN GERMANY (3/3) Merger of legal entities in progress AT PRESENT GmbH
BY END OF H1 2017
EXPECTED BENEFITS: Higher market visibility & enhanced credibility Integration platform for future acquisitions Significant fixed-cost savings 30
GPS IN GERMANY
GLOBAL CAPABILITY TO BE REPLICATED FOR OTHER GPS OFFERINGS Case study - Testhouse for Daimler PROJECT
Full-service contractor for 100% outsourced Hardware-in-the-Loop testing
Providing testing infrastructure and services Testing all electronic systems from airbag to exhaust after treatment
Full implementation of Assystem’s best sourcing model:
Client management and test-specification services based locally in Stuttgart Test management and services based at the Automotive Engineering Center in Romania
SERVICES Functional testing of ECU network Development of test cases from system specification Regression testing of every ECU Software release Maturity report delivered after each test campaign BENEFITS
Fixed-price catalogue of services – “Pay-per-function” On-demand orders through a web-based ticket system
31
Q&A
GPS IN ACTION CASE STUDIES
GPS IN ACTION – CASE STUDIES
SUPPORTING THE ENTIRE PRODUCT LIFE CYCLE PRODUCT ENGINEERING
CASE STUDIES E-suspension Plastic equipment development Product cybersecurity Advance Driver Assistance Systems Derivative development & industrialisation
MANUFACTURING & PRODUCTION SUPPORT
IN-SERVICE & TESTING
Engine control unit development Aerostructure work package development Large civil aircraft electrical system installation FAL ground tests Life cycle cost reduction project
Optimisation of production facility efficiency
Independent Safety Assessment
34
GPS IN ACTION – CASE STUDIES
AUTOMOTIVE CAPABILITIES: 10 SYSTEMS & SOLUTIONS INFOTAINMENT, CONNECTIVITY & INSTRUMENTATION SERVICE CENTRES (DIAGNOSTICS, TESTING ETC.)
ELECTRIC & WIRING
E-MOBILITY
ADVANCED DRIVER ASSISTANCE SYSTEMS
+-
TRIM & EQUIPMENT
BODY IN WHITE
| PROJECT MANAGEMENT | PROCESS DESIGN
CHASSIS
POWERTRAIN CONTROL COMPLETE VEHICLE 35
GPS IN ACTION – CASE STUDIES
AUTOMOTIVE (1/5) - E-SUSPENSION PROJECT
Development & series delivery of electronic components Power electronic ECU for an electric, highly dynamic pump drive Advanced chassis system & controls
SERVICES
Fixed price In-house project Duration: ̴ 3 years
Component and controller development Safety engineering Hardware development Software development (based on Autosar SLP 10) Functional/engineering tests Industrialisation & transition to mass production
BENEFITS
First A-samples delivered after 6 months Development of control algorithm for client pump noise cancelling system
36
GPS IN ACTION – CASE STUDIES
AUTOMOTIVE (2/5) - PLASTIC EQUIPMENT DEVELOPMENT PROJECT
Design & development of plastic injected equipment for new vehicles e.g. door panels, body side trims, bumpers, instrument panels
SERVICES
System: body trim equipment Duration: 1 year
Volume, geometry and interface studies Initial style studies: product/process feasibility FMEA analysis Definition of RFQ product specifications Analysis of supplier proposals Prototyping Consulting & management for injection tooling development & installation Product development convergence through to mass production
BENEFITS
Plastic equipment expertise from Plast Concept > 20 years Partnership with toolmakers and prototyping and testing facilities Cost efficiency: Nearshoring with AEC Lean expertise (engineering, supplier management) 37
GPS IN ACTION – CASE STUDIES
AUTOMOTIVE (3/5) - PRODUCT CYBERSECURITY PROJECT
Assessment of security & privacy protection policy Process management Architecture assessment and improvement Environment analysis/publications survey Development of a security concept for inductive charging Threat analysis and specification of requirements Security concept development Security design coordination
SERVICES
Software development Security processes management Development of a secure inductive battery charging system Design of a security system for automotive info-/entertainment
BENEFITS
Improved security & privacy processes, methods & tools Deeper cybersecurity know-how 38
GPS IN ACTION – CASE STUDIES
AUTOMOTIVE (4/5) - SOLUTIONS FOR ADVANCED DRIVER ASSISTANCE SYSTEMS PROJECT
System: ADAS Phase: Platform development Duration: 2 years
Development of a front traffic alert software for an automotive OEM
SERVICES
System architecture Sensor qualification & component selection (radar sensor) Requirement & supplier management Process development Field testing
BENEFITS
Development of an end-to-end function, including tests performed by certified personal (CTFL) Effective function testing using Assystem tools & IP (TESTONA)1
1
CTFL: Certified tester qualification
39
GPS IN ACTION – CASE STUDIES
AUTOMOTIVE (5/5) - PRODUCT DEVELOPMENT & INDUSTRIALISATION FOR A VEHICLE DERIVATIVE PROJECT
System: Body trim equipment Objective: Development & industrialisation of components Scope: > 60 engineers
Development & industrialisation of components for a vehicle derivative (2 sites) Structures: outer panels, reinforcements, outer/inner trims Roof opening system Rear bumper, soft & injected trims
SERVICES
Product design & development incl. digital mock-up & geometry convergence Supplier management (toolmakers and Tier 1 suppliers): technical specifications, quality convergence & integration activities Sub-system & performance tests
BENEFITS
Product development & project management know-how Cost efficiency: Nearshoring with AEC Lean expertise (engineering, supplier management) 40
GPS IN ACTION – CASE STUDIES
AEROSPACE CAPABILITIES: 10 SYSTEMS & SOLUTIONS GROUND TESTS
INFOTAINMENT & CONNECTIVITY AVIONIC SYSTEMS
ELECTRIC & WIRING
+CABIN & INTERIORS
| Project Management | Process Design MANUFACTURING & SUPPLY CHAIN
PRIMARY STRUCTURES
EQUIPMENT
PROPULSION SYSTEMS FAL SUPPORT
41
GPS IN ACTION – CASE STUDIES
AEROSPACE (1/5) - ENGINEERING: ENGINE CONTROL UNIT DEVELOPMENT PROJECT
Fixed price In-house project Duration: 4 years
Development of a dual channel control unit for V12 Diesel aero engine (Full Authority Digital Engine Control (FADEC)), including prototyping
SERVICES
Full development of ECU (Electronic control unit) & test equipment1 EASA certification support
BENEFITS
1. Incl.
Assystem IP
Fast prototyping (first delivery after 11 months) Design of Glow Plug Power Unit (GPPU)
42
GPS IN ACTION – CASE STUDIES
AEROSPACE (2/5) - ENGINEERING: DEVELOPMENT OF AEROSTRUCTURE WORKPACKAGES PROJECT
Development of aerostructure workpackages for derivative programme 40+ FTE in France and Romania
SERVICES
Solution design 3D drawings Stress analysis
BENEFITS
Strong level of expertise thanks to Assystem’s previous experience Cost efficiency thanks to nearshoring with AEC
43
GPS IN ACTION – CASE STUDIES
AEROSPACE (3/5) - ENGINEERING: LARGE CIVIL AIRCRAFT ELECTRICAL SYSTEM INSTALLATION PROJECT
Management of design modifications for a large civil aircraft electrical system installation 100+ FTE in France, Germany & Romania
SERVICES
Solution design Modifications of 3D drawings Stress analysis
BENEFITS
Strong level of expertise thanks to Assystem’s previous experience Cost efficiency thanks to nearshoring with AEC in Romania
44
GPS IN ACTION – CASE STUDIES
AEROSPACE (4/5) - MANUFACTURING SUPPORT– FAL GROUND TESTS
PROJECT
Large civil aircraft ground testing 100+ FTE dedicated to the Final Assembly Line (FAL) - Strong interaction with global production flow
SERVICES
Designing test procedures Performing & monitoring ground tests
BENEFITS
Strong level of expertise thanks Assystem’s previous experience Workforce adaptability in line with production ramp-up requirements 45
GPS IN ACTION – CASE STUDIES
AEROSPACE (5/5) - GAS TURBINES: LIFE CYCLE COST REDUCTION PROJECT PROJECT
Life Cycle Cost (LCC) reduction initiatives for engine OEM in the areas of product design, manufacturing & in-service
SERVICES
Contract model: Fixed price Incentivised Locations: UK India Team size: 50 FTEs Duration: 4 years
Proposing design modifications Modifying overhaul procedures Proposing changes to maintenance policy Carrying out commercial renegotiations
BENEFITS
Strong level of engineering and commercial expertise (knowledge of client’s team & operating model) Cost efficiency thanks to offshoring in India Flexible business model based on success fees (client’s LCC savings)
46
GPS IN ACTION – CASE STUDIES
INDUSTRY CAPABILITIES: 7 SYSTEMS & SOLUTIONS HMI SOLUTIONS SMART DATA & NETWORKING SOLUTIONS
MACHINE CONTROL & AUTOMATION SOLUTIONS
MANUFACTURING & SUPPLY CHAIN SOLUTIONS
SYSTEMS ENGINEERING
| Project management | Process design
CYBERSECURITY SOLUTIONS
TESTING SOLUTIONS
47
GPS IN ACTION – CASE STUDIES
INDUSTRY – PRODUCTIVITY IMPROVEMENT ASSESSMENT VIA INDUSTRY 4.0 TECHNOLOGY PROJECT
Productivity & efficiency assessment at an industrial company’s production site using a combination of intelligent systems Concept analysis, modelling & set-up Technology evaluation
SERVICES
Use-case modelling (condition monitoring) Definition & management of requirements Software development: Data import and handling Modular network
BENEFITS
Assystem’s high level of expertise 20+ years of experience in the industry sector Know-how in systems, software & HMI development Integration of Industry 4.0 technologies into the condition monitoring system (Assystem is a member of “Platform Industry 4.0”)
48
GPS IN ACTION – CASE STUDIES
TRANSPORTATION CAPABILITIES: 3 SYSTEMS & SOLUTIONS
Rolling stock
Signalling
Mainline (e.g. ERTMS L1&2) Mass Transit (e.g. CBTC) Interlocking Traffic control RAMS studies Independent Safety Assessment
Train systems Structure (mechanical & electrical) Interiors TCMS & traction Manufacturing engineering RAMS studies Independent Safety Assessment
In-service
Integrated logistics support Real-time data collection and analysis using smart/big data Maintenance & operations optimisation System upgrades
49
GPS IN ACTION – CASE STUDIES
TRANSPORTATION - INDEPENDENT SAFETY ASSESSMENT PROJECT
Independent Safety Assessment (ISA) of 2 highly critical generic signalling products
SERVICES
Objective: Safety assessment
Domain: Signalling Phase: Acceptance Duration: 3 years
Safety assessment carried out by specialised and certified personnel for: Radio Block Centre (RBC) European Vital Computer (EVC)
BENEFITS
Minimum rework activities after assessment process thanks to: The assessment team’s signalling expertise Assystem’s “client first” culture Workforce and deliverables adaptability as a result of Assystem’s flexibility
50
Q&A
