COMMODITY REVIEW

COMMODITIES REVIEW 22&23 June06 21/04/23 00:41 1

COMMODITY REVIEWCOMMODITY REVIEW

MECHANICAL PARTS

PAUL SHELDON


Mechanical Components Mechanical Components (P. Sheldon)(P. Sheldon)

SCORE CARD FY 06


Mechanical Components Mechanical Components (P. Sheldon)(P. Sheldon)

– STRONG PRESENCE OF SUPPLIERS IN E. EUROPE– FY06 ACTION: ‘WESTERNIZE BUSINESS HABITS OF MAIN EE BASE’

• REVERSE AUCTIONS• PRICES:

– CLOSER FOLLOW UP of price vs raw materials

– PRODUCTIVITY: especially machined parts (R. Bédard)

– ACTION IN MACHINING S/CONTRACTING: as opposed to machined parts inc material

• ROTC– LEAN: but most suppliers of Olomouc are already lean…

– DPO

– IMPACT OF ASIA SUPPLIERS MAINLY IN Q3 & Q4• Volume deliveries of machined castings & stamped parts. • Difficulty in tracking savings automatically


REVERSE AUCTIONSREVERSE AUCTIONS

• REVERSE AUCTIONS• €467k Plastic components (feb 05): €42k savings (RO/F) DONE. €32k

(RO: tooling AR done) + €17k (F: transfer in progress)

• €113k machined Bronze casting (oct 05): €10k savings (F). Unsuccessful.

• €120k Aluminium (dec 05): €20k (HO: 1st tool transfer of 4 done)

• €150k. Machining (Jan 06): €5k (CZ) DONE. €20k (CZ) Almost done (first samples delivered, refused. New samples end June)

• €202k Bar machining: €12k (F) done, approved. €19k in progress (1st approval refused). 2 other lots didn’t work.

• €615k Cast iron (Feb 06): €156k (RO & CZ) in progess, AR done.

• €150k Cast iron (Avril 06): €35k (HO & CZ) in progess, AR done.

• €220k Cast iron (May 06): €60k (RO, BG, HO, CZ): decision to be made.

• €150k Cast iron (June 06): released

• €120k Machined parts (July 06): to be done


PRICINGPRICING

• ACTIONS ENGAGED IN Q1 / Q2 on existing base– Scrape back some of high price hikes of FY05 in Q1 & Q2

• TES (€71k), Trie Château (€27k), Koopron (€25k), PBS (€8k)

– Productivity in machining• ZLKL: 3% to 5% on targeted parts

• PRICE TENSION SINCE JAN 06: Low profile / defensive position adopted in Q3 & Q4– Energy costs up 8% to 27% depending on the country– Raw material prices go up again– Many EE mechanical companies back in a ‘production economy’:

• At full capacity, they ‘clean up’ their portfolios

• Big price rises asked for on small volume (5% to 20%)


KEY OBJECTIVE FY 06: CASH KEY OBJECTIVE FY 06: CASH FLOWFLOW

– DPO improvement: • Targetting of suppliers between 0 & 45 days• High sales

– Targetting criteria (tailor to the situation):• Group or family company?• Take account of customer portfolio of the suppliers (esp direct competitors of

LS)• Do not create fragile situation at good suppliers’ (eg. family companies)• Talk it over with them & listen: cash flow isn’t managed the same way in small

companies• Target suppliers with increasing sales (esp with LS)• Agree to go ther step by step:

– Don’t add extension of DPO to big price reduction requests

• Get E. European suppliers used to participating in our ROTC improvement effort


TOP 6 SUPPLIERS, E. EUROPE, TOP 6 SUPPLIERS, E. EUROPE, MECHANICALMECHANICAL

FY 06 EstSUPPLIERS LS FAM SPEND (KE)

SEM 2 615

PUS 1 118ABE 796TMA 625PMS 23

Others 1695 346

PDE 1 356

COF 149

PMS 366PUS 165CUI 91CNX 67

Others 1122 306

PMS 531

PUS 235

STM 209ACL 70PDC 44ACE 42

CNX 20

PDE 17

Others 5581 725

PMO 833PUS 90STM 28

Others 35986

PMO 875PUS 36STM 120

1 031

PDE 397

COF 45

PMS 49

CUI 29CNX 25PDC 4ALT 1

PUS 3

STM 4861 031 VANEK JIRI

VANEK JIRI

PRINS METALLUR

PRINS METALLUR

PROMET FOUNDRY

PROMET FOUNDRY

KOOPRON S.R.O.

ZLKL LOSTICE S

KOOPRON S.R.O.

ZLKL LOSTICE S

TES VSETIN SRO

TES VSETIN SRO


DONE IN FY 06: CASH FLOWDONE IN FY 06: CASH FLOWACTION ENGAGED ON €15700k of SALESACTION ENGAGED ON €15700k of SALES

SUPPLIERS

Spend

K€ FY 06 (Est)

DPO Avge FY 05

Objectives / Négotiation FY 06

News DPO

Application Date

TES VSETIN 5 346 30 60 days 45 June 06 (45 days)

KOOPRON S.R.O. 2 306 30 60 days 60 In FY 07

ZLKL LOSTICE SRO. 1 725 30 60 days 60 dec 05 (45), march 06 (60)

VANEK JIRI 1 031 30 60 days 60 jan 06 (45) & jul 06 (60)

PRINS 986 30 60 days 60 in FY 07

PROMET 1 031 30 60 days 45 July 06 (45)

MOPOS 995 30 60 days 60 In FY 07

PBS 446 30 60 days 60 jan 06 (45), jul 06 (60)

TAFONCO 854 30 60 days 60 60j mars 06

SCHULMAN A.SA. 468 60 90 days 90 jan 06 : 90j net

SVT 184 30 60 days 60 oct O5

KOVOKON 231 30 60 days 45 May 06 (45)

AVIMECA (SARL.) 155 30 60 days 60 oct O5 (60)

TOTAL 15 758 30,9 54,6


LEAN : ACTIONS FY 06-07LEAN : ACTIONS FY 06-07LIVRAISON APRES

4 à 5 fois / sem

2 à 3 fois / sem

1 fois / sem

3 fois / mois

2 fois / mois

1 fois / mois

< 1 fois / mois

M à J délai FAF (en

jours)KOOPRON S.R.O. x idem 10

ZLKL LOSTICE SRO. X idem 10

VANEK JIRI X idem 10

SCHULMAN A.SA. X 1 fois par mois demandé 5

PBS X idem 10

AVIMECA (SARL.) X 1 fois/sem 5 à 10SVT X

TES VSETIN X action à engager sur respect des délais 10

PRINS XPrins averti que LS demandera plus de livraisons. Réunions MLS lean à faire. 15

PROMET X idem 15

PERSEVERANCE X 1 fois/sem 15

TAFONCO X idem 15

SAFEM à voir

KOVOKON X idem 10

LIVRAISON AVANT ACTION


IMPACT OF ASIAIMPACT OF ASIA

• Big savings from FY05 auctions in stampings & cast –iron• Only kicks in in Q3 & Q4• Stamping savings clearly identified in inflation tracking• Castings not so easy: raw + machined in Europe, but

supplied finished (mchined) from Asia– Manual tracking necessary

• Example of Alternator division (castings)– Manual tracking necessary– Top 6 castings in sales value = €3000k raw + €1600k machining =

€4600k• €700k savings in FY06 unidentified automatically (Asia)• €320k savings identified automatically, piece / piece rough castings

(LCC / VLCC EE)

– New castings introduced in mid FY05 (global alternator design)• €150k savings in FY06 (Q3 & Q4): VLCC EE (Uk, BG, RO)


MECHANICAL PARTSMECHANICAL PARTS

ANALYSIS BY COMPONENT FAMILY


LS Family & DRI CodeLS Family & DRI Code

Spend (KE)

LS FAMILY Commodity Team Famille DRI DRI Projection 06

W191 7 487 41%

W192 3 593 29%

W190 86 50%11 165 37%

CASTING: GREY IRON F023 6 461 28%CASTING: STEEL/SST F040 90 19%

CASTING: OTHER A140 74 34%CASTING: DUCTILE IRON F013 9 18%

A100 271 19%

A110 104 16%A101 3 -34%

CASTING: OTHER A170 105 -12%7 115 26%

W210 4 455 50%W211 6 -84%

4 461 48%

A100 1 361 17%

A110 43 22%1 404 17%

Variation 06/05

PMA NON FERROUS CASTINGS CASTING: ALUMINUM

PMA

PDE

PMO

PDE STAMPING STAMPING

PMO

DIVISION MANAGED

NON FERROUS CASTINGSCASTING: ALUMINUM

PUS MACHINED PART MACHINED PART

PUS


MECHANICAL PartsMECHANICAL Parts

CA FY 05

K€C/O in

FY 05

Q1 06 /

Q4 05

Q2 06 /

Q1 06

Q3 06 /

Q2 06

Q4 06 /

Q3 06

Inflation

06 Commentaires /Actions

CA FY 06

K€C/O in

FY 07

Q1 07 /

Q4 06

Q2 07 /

Q1 07

Q3 07 /

Q2 07

Q4 07 /

Q3 07

Inflation

07

PUS PIECES USINEES HORS

PIECES DECOLLETEES8 944 -0,4% -1,4% 0,8% 3,2% -0,3% 0,4%

Hausses = cours d'alu €47k chez Tafonco. +

€17k Stepanov (ne veut plus faire ces pièces). Baisses = enchères et actions ciblées.

Baissses en FY07 (Chine)

11 165 1,6% -0,1% -3,2% -1,0%

PMO PIECE MOULEE EN

FONTE GRISE6 074 1,1% 0,1% 1,2% 2,3% 3,3%

Enchères sur €1m en Q3 & Q4 FY06. Date

d'impact incertaine. 7 115 1,5% -2,1% -1,3% -2% -2,6%

PMS PIECE MECANO-

SOUDEE,OXYDECOUPEE5 753 0,6% -0,1% 1,0% -0,2% -1,0% 0,9% 6 333 -0,6% 0% 0% -3% -3% -2,7%

PDEPIECE METALLIQUE

DECOUPEE ET/OU

EMBOUTIE

3 010 0,7% 0,0% 0,0% -1,4% -4,0% -1,0%

gains de €100k Q3 & €100k Q4 (Chine).

Gains de €20k Q3 & €20k Q4 Action Europe Est

4 461 -3,7% -0,7% -1,2% -4,8%

PLA PLASTIQUES MAT

PREM,SEMI-PRODUITS1 724 0,3% -0,6% -0,8% -1,7% -1,0% -1,9%

encore -1% en juillet (transfert outillages)encore -0.75% en jan07

1 900 -1,8% -0,8% -0,7% -3,1%

PFE PIECES ACIER FORGEES

ESTAMPEES1 597 3,3% -0,8% 1,5% -0,9% 5,0% 4,5%

baisses Trie Château (concurrence &

enchères), Thrall. Hausses sur marché général (3% à 8% sur

petits fournisseurs)

1 975 3,6% 3,6%

COFCOFFRETS ET

ARMOIRES

D'APPAREILLAGE

1 644 1,0% 0,0% -1,2% -1,4% -0,6% voir PDE, suite recodification 1 065 -1,0% -1,0%

PMA PIECE MOULEE EN

ALUMINIUM1 435 -0,4% 0,4% -0,4% 6,9% -0,8% 2,9%

forte hausse MP alu en Q3.

Impact actions enchères et autres Q41 404 2,6% 5,9% -1,4% 7,5%

SEM SOUS ENSEMBLE DE

MOTEURS2 421 2,5% -1,5% -0,3% -0,7% 0,4%

Impact EMIT pas visible sur le panier

(production interne LS externalisée)

quelques baisses chez TES

3 658 -0,4% -0,4%

PDC PIECES DECOLLETEES 821 0,0% -0,8% -0,3% 0,3% -0,9%impact haussier RoHS (zingué jaune etc)Baisses ciblées. Impact enchères en FY07

1 014 0,1% -1,0% -1,0% -1,7%

TOTAL 33 422 0,7% -0,6% 0,5% 1,2% -0,5% 1,0% 33 753 0,4% -0,3% -1,6% -1,0% -0,5% -1,8%


MECHANICAL PartsMECHANICAL Parts

EVOLUTION INDICE MOYEN PAR FAMILLE

90,0

92,0

94,0

96,0

98,0

100,0

102,0

104,0

106,0

108,0

110,0

Q100

Q200

Q300

Q400

Q101

Q201

Q301

Q401

Q102

Q202

Q302

Q402

Q103

Q203

Q303

Q403

Q104

Q204

Q304

Q404

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407

Somme

Regroupement Familles Mecanique

Données


MECHANICAL Parts : LCC FY 06 MECHANICAL Parts : LCC FY 06

East Europe39%

Romania

2.2%

Others

0.2%

Hungary

1.4%

Poland

0.5%

Russia

1.7%

Czech rep

32.6%

Asia4%

West. Europe57%


MACHINED PartsMACHINED Parts

EVOLUTION INDICE MOYEN FAMILLE PIECES USINEES (PUS)

90

95

100

105

110

115

Q100

Q200

Q300

Q400

Q101

Q201

Q301

Q401

Q102

Q202

Q302

Q402

Q103

Q203

Q303

Q403

Q104

Q204

Q304

Q404

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407


MACHINED PartsMACHINED Parts

Date : 14/06/2006

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 (Mai)1 046 K€ 1 649 K€ 1 504 K€ 3 271 K€ 6 369 K€ 8 944 K€ 8 735 K€

-0,3% -3,1% 2,2% -1,7% 9,3% 0,4%

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06

Nombre Total articles achetés 300 382 352 428 489 570 538

Nombre articles = 80 % du CA 68 71 66 37 39 41 45

% achats sans code 13% 11% 9% 39% 44% 42% 36%

en K€ 2 K€ 0 K€ 3 K€ 1 443 K€ 2 991 K€ 4 288 K€ 4 070 K€

en % du Total 0,2% 0,0% 0,2% 44,1% 47,0% 47,9% 46,6%PUS000TX000 MODELE 2 K€ 0 K€ 0 K€ 1 120 K€ 2 370 K€ 3 049 K€ 2 814 K€

PUS321TA002 FLQ.AR.US.ALU.LSA411-4-05/J 0 K€ 0 K€ 3 K€ 323 K€ 485 K€ 567 K€ 585 K€

PUS560CA002 CARCASSE G54 D1050X559X1800MM 0 K€ 0 K€ 0 K€ 0 K€ 2 K€ 289 K€ 304 K€

PUS560CA001 CARCAS.G54 D1050X559.5X1800MM 0 K€ 0 K€ 0 K€ 0 K€ 0 K€ 214 K€ 254 K€

PUS880BX002 BRIDE MONOPALIER SAE 0 0 K€ 0 K€ 0 K€ 1 K€ 135 K€ 169 K€ 112 K€

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06

Nombre Total Fournisseurs 104 118 131 143 149 163 160

Nombre Fournisseurs > 15 K€ 21 32 25 33 53 59 57

en K€ 127 K€ 119 K€ 129 K€ 1 395 K€ 2 786 K€ 3 463 K€ 3 616 K€

en % du Total 12,1% 7,2% 8,6% 42,6% 43,7% 38,7% 41,4%27 K€ 8 K€ 4 K€ 402 K€ 934 K€ 929 K€ 1 132 K€

2 K€ 16 K€ 1 K€ 55 K€ 413 K€ 720 K€ 875 K€

18 K€ 2 K€ 2 K€ 140 K€ 387 K€ 647 K€ 469 K€

0 K€ 0 K€ 4 K€ 445 K€ 566 K€ 593 K€ 666 K€

81 K€ 93 K€ 118 K€ 352 K€ 486 K€ 575 K€ 475 K€

ARTICLES

SFAR

TES VSETIN SRO

CHOLLET

Top 5 Fournisseursbase FY 05

FOURNISSEURSTAFONCO A.S.

CA en K€Inflation nette

SYNTHESE FAMILLE : PIECES USINEES (PUS)

Top 5 Articlesbase FY 05

PRIVOD CHEZ SA


MACHINED Parts : LCC FY 06 MACHINED Parts : LCC FY 06

Eastern Europe

51%

Romania10%

Hungary1%

Poland1%

Russia6%Czech rep

33%

Asia7%

West. Europe42%


PUSPUS FY 06 / FY 07 FY 06 / FY 07

• TARGET INFLATION FY 07 : -2 %

• MARKET TREND: risks & opportunities

– Steel prices fluctuate less, but remain high – Castings index similar– New machines cost same price in LCCs as in West– Energy prices continue to rise much faster than inflation: moderate prce

hike requests of FY06 (+0 to 2%) could be higher in FY07– LS in market trend toward purchasing more added value (eg. Machined

castings)• China attractive for high volumes

– A few EE companies invest in more modern machinery, but the majority have too much (old) capacity

– EE & China have different supply bases:• China is organised between mechanical / foundries & machining companies• EE is not


PUSPUS FY 06 / FY 07 FY 06 / FY 07

• STRATEGY & ACTION PLAN– Share our markets between EE & China via separate auctions if

possible• Keep an eye on $/€ rates

– Enlarge strategy to subcon machining (same supplier base)– Reduce number of suppliers by consolidation

• Wisconsin CZ (€400k), UNEKO (€300k) & ISH (€250k) not strategic: consolidate in existing & VLCC base

– Continue toward more added value in purchase– Casting suppliers pre-informed of machining requirement– Enlarge machining base / partnerships with foundries to create

market for future auctions– Replace Tafonco (major price rise in FY06)


KPI / PUSKPI / PUS

FY 05 FY 06 FY 07

Spend in K € 8,944 K€ 11,165 K€ 10,941 K€Net Material Inflation 9.3% 0.4% -2.0%

LCCS (%) 58.0% 60.0%

e-SourcingK€ (M) Bid 332 K€ 600 K€average Results -16.0% -15.0%

Direct Material DPOTotal Averge Days 72 Days 70 Days 73 DaysK€ less than 30 days 1,345 K€ 1,217 K€

KPI / PUS


CASTING GREY IRONCASTING GREY IRON

EVOLUTION INDICE MOYEN FAMILLE PIECES MOULEES DE FONDERIE (PMO)

98

100

102

104

106

108

110

112

114

Q100

Q200

Q300

Q400

Q101

Q201

Q301

Q401

Q102

Q202

Q302

Q402

Q103

Q203

Q303

Q403

Q104

Q204

Q304

Q404

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407


CASTING RAW MAT’L INDEXCASTING RAW MAT’L INDEX

-50

0

50

100

150

200

250

300

350

JuneJuly

August

September

OctoberNovemberDecember

JanuaryFebruaryMarch

AprilMayJuneJuly

August

September



AprilMayJuneJuly

August

September



AprilMay

2003 2004 2005 2006

EURO/t

Index

Index change %


CASTING GREY IRONCASTING GREY IRON

Date : 14/06/2006


0,7% 1,3% 0,9% -1,2% 5,5% 3,3%

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06



% achats sans code 0% 0% 0% 1% 2% 1% 1%

en K€ 211 K€ 219 K€ 216 K€ 1 084 K€ 1 476 K€ 1 764 K€ 1 456 K€

en % du Total 4,4% 4,4% 5,1% 21,4% 24,7% 29,0% 26,3%PMO450FF012 FLASQUE BRIDE MONOPALIER 0 K€ 0 K€ 23 K€ 441 K€ 523 K€ 592 K€ 399 K€

PMO387FF001 FLASQUE ARRIERE PL.F432-4-003E 0 K€ 0 K€ 1 K€ 297 K€ 337 K€ 342 K€ 308 K€

PMO408FF001 BRIDE BRIDE PLAN F411-4-15/B 0 K€ 0 K€ 3 K€ 97 K€ 218 K€ 300 K€ 288 K€

PMO705FF003 FLASQ.PALIER AR.-GJL200-LSA491 211 K€ 219 K€ 190 K€ 127 K€ 202 K€ 279 K€ 254 K€

PMO450FF014 FLASQUE BRIDE PLAN F411-4-014D 0 K€ 0 K€ 0 K€ 122 K€ 195 K€ 252 K€ 208 K€

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06



en K€ 2 010 K€ 2 368 K€ 1 993 K€ 3 183 K€ 4 014 K€ 3 936 K€ 3 854 K€

en % du Total 41,5% 47,2% 47,4% 62,7% 67,1% 64,8% 69,6%1 347 K€ 1 563 K€ 1 426 K€ 1 550 K€ 1 590 K€ 1 492 K€ 1 890 K€

44 K€ 43 K€ 5 K€ 505 K€ 733 K€ 831 K€ 685 K€

4 K€ 24 K€ 58 K€ 629 K€ 876 K€ 817 K€ 652 K€

616 K€ 738 K€ 483 K€ 253 K€ 541 K€ 611 K€ 598 K€

0 K€ 0 K€ 22 K€ 246 K€ 274 K€ 185 K€ 28 K€

ARTICLES

PERSEVERANCE (

PROMET FOUNDRY

PRINS METALLUR


FOURNISSEURSSAFEM


SYNTHESE FAMILLE : PIECES MOULEES DE FONDERIE (PMO)


PBS (PRVNI BRN


CASTING GREY IRON : LCC FY 06 CASTING GREY IRON : LCC FY 06

Eastern Europe

41%Romania

14%

Others1%

Hungary1%

Czech rep26%

Asia1%

West. Europe57%


PMOPMO FY 06 / FY 07 FY 06 / FY 07

• TARGET INFLATION FY 07 : -3 %


– CZ still pretty saturated: several foundries closed in 05 & 06

– Casting material prices remain high (autumn/winter 04 level)

– No raw material shortage today, but we remain vigilant

– CZ, SK, RO: currency revaluation 8% to 10% in 2005.

– ‘Unhealthy’ EE suppliers have cash problems

– W. Europe staggered price rises in 05 & 06: 3-5% in 05, 1-5% in 06

– EE imposed almost full impact in 05, moderation in 06

– 0% - 3% inflation from Asia


PMOPMO FY 06 / FY 07 FY 06 / FY 07

• STRATEGY & ACTION PLAN– New supplier base in VLCC (Romania, Bulgaria, Ukraine)– Capacity suppliers in Central Europe (Croatia) to help CZ short term– Auctions of high volume parts :

• Do not mix EE & China in auctions: EE not mature / competitive. Strategic share of markets. • Always include tooling in auctions: 25% - 50% savings possible• Take care with Asia in FY07: direct RFQ with newly developed suppliers gives same prices in

FY06 for (machined) castings as in FY05– Not sure to get this containment on open market / auctions (+10% to 15% mat’l price rise since then)

– Auction potential limited in FY07:• Top 5 parts all auctioned / double auctioned in last 18 months• 24 month contracts preferred

– Reduce number of suppliers in W Europe: target 2 or 3 strategic foundries– Be opportunistic when raw material costs drop

• Be close to CZ / Olomouc = big volume buys of LS

– Seek partners capable of machining (even if not yet ready)– Problems with low volume parts: pruning by EE foundries


PMOPMO

FY 05 FY 06 FY 07


LCCS (%) 42.0% 45.0%

e-SourcingK€ (M) Bid 1,135 K€ 700 K€average Results -25.0% -15.0%

Direct Material DPOTotal Averge Days 72 Days 70 Days 73 DaysK€ less than 30 days 1,986 K€ 1,859 K€

KPI / PMO


CASTING ALUMINIUMCASTING ALUMINIUM

EVOLUTION INDICE MOYEN FAMILLE PIECES MOULEES ALUMINIUM (PMA)

96

98

100

102

104

106

108

110

Q100

Q200

Q300

Q400

Q101

Q201

Q301

Q401

Q102

Q202

Q302

Q402

Q103

Q203

Q303

Q403

Q104

Q204

Q304

Q404

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407


CASTING ALUMINIUMCASTING ALUMINIUMDate : 14/06/2006

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 (Mai)563 K€ 1 279 K€ 1 216 K€ 1 273 K€ 1 176 K€ 1 200 K€ 1 099 K€

3,9% -3,3% -0,9% -2,8% 2,3% 2,9%

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06



% achats sans code 1% 2% 2% 2% 0% 0% 0%

en K€ 252 K€ 594 K€ 427 K€ 427 K€ 567 K€ 572 K€ 413 K€

en % du Total 44,8% 46,5% 35,1% 33,6% 48,2% 47,6% 37,6%PMA145CB002 CARCAS.LS90B30L=145 AE003600/B 171 K€ 342 K€ 317 K€ 300 K€ 318 K€ 281 K€ 256 K€

PMA145CB001 CARTER ALU.SP-EB15A 98/ALCATEL 30 K€ 188 K€ 63 K€ 91 K€ 149 K€ 160 K€ 98 K€

PMA145CB003 CARCAS.LS90 B30 L=80 AE003700B 51 K€ 64 K€ 48 K€ 37 K€ 55 K€ 51 K€ 0 K€

PMA131CC001 CARTER MVDE:F65M5 -ALSI7MG/Y30 0 K€ 0 K€ 0 K€ 0 K€ 18 K€ 40 K€ 46 K€

PMA120FC002 FLASQUE MBT110-MBT1141 B5 F120 0 K€ 0 K€ 0 K€ 0 K€ 27 K€ 40 K€ 13 K€

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06



en K€ 276 K€ 881 K€ 635 K€ 698 K€ 905 K€ 987 K€ 813 K€

en % du Total 49,1% 68,9% 52,2% 54,8% 76,9% 82,3% 74,0%222 K€ 406 K€ 364 K€ 342 K€ 383 K€ 336 K€ 278 K€

0 K€ 241 K€ 149 K€ 187 K€ 209 K€ 225 K€ 191 K€

30 K€ 188 K€ 63 K€ 91 K€ 149 K€ 193 K€ 148 K€

24 K€ 46 K€ 59 K€ 69 K€ 92 K€ 152 K€ 124 K€

0 K€ 0 K€ 0 K€ 10 K€ 71 K€ 82 K€ 72 K€


SYNTHESE FAMILLE : PIECES MOULEES ALUMINIUM (PMA)


SZORO KFT.

ARTICLES

NUOVA PRESSO F

DIACE FONDERIE

DOURLET (FONDE


FOURNISSEURSLAFOND (FONDER


ALUMINIUM LMEALUMINIUM LME

ALUMINIUM (LME)

1 200

1 400

1 600

1 800

2 000

2 200

2 400

2 600

2 800

3 000

3 200

3 400

janv-03févr-03mars-03mai-03juin-03juil-03

sept-03oct-03déc-03janv-04mars-04avr-04mai-04juil-04

août-04sept-04nov-04déc-04févr-05mars-05mai-05juin-05août-05sept-05oct-05déc-05janv-06mars-06

avr-06juin-06

$/t

1 200

1 400

1 600

1 800

2 000

2 200

2 400

2 600

2 800

3 000

3 200

3 400

Euro/t

alu spot $/t alu spot Euro/t

Euro/t

USD/t


CASTING ALUMINIUM : LCC FY 06 CASTING ALUMINIUM : LCC FY 06

West. Europe89%

Asia0%

Czech rep1%

Hungary10%

Eastern Europe

11%


PMAPMA FY 06 / FY 07 FY 06 / FY 07

• TARGET INFLATION FY 07 : -2 % (w/o aluminium variation)


– Fast & furious Aluminium price increase early 2006. Dec 05 to March 06 +40%. Impact:

• Pressure: + 20% (raw 50%)• LP gravity: + 12% (raw 30%)• sand: + 8% (raw 20%)

– Expect severe carry over in FY07 (lagged price rises on past 3 months)

– So far, impact Q3/Q2 = 7%


PMAPMA FY 06 / FY 07 FY 06 / FY 07

STRATEGY & ACTION PLAN

Replace Diace by LCC supplier• Auction dec 05: first tooling transferred

Increase coquilla volume in Romania

Find new sources in LCC/VLCC in 3 types of aluminium castings: Romania, Bulgaria, Turkey

Auctions if enough volume (but LS not so attractive)

Investigate Dourlet: hard to put in auction- single, critical customer- value analysis- engineering / purchasing approach


KPI / PMAKPI / PMA

FY 05 FY 06 FY 07


LCCS (%) 11.0% 15.0%

e-SourcingK€ (M) Bid 120 K€ 200 K€average Results -16.0% -10.0%

Direct Material DPOTotal Averge Days 102 Days 101 Days 103 DaysK€ less than 30 days 125 K€ 88 K€

KPI / PMA


PLASTICSPLASTICS

EVOLUTION INDICE MOYEN FAMILLE PLASTIQUE (PLA)

84

86

88

90

92

94

96

98

100

102

104

Q100

Q200

Q300

Q400

Q101

Q201

Q301

Q401

Q102

Q202

Q302

Q402

Q103

Q203

Q303

Q403

Q104

Q204

Q304

Q404

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407


PLASTICSPLASTICS

Date : 14/06/2006


1,4% -0,4% -5,0% -4,6% 0,6% -1,9%

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06



% achats sans code 1% 0% 1% 5% 5% 5% 6%

en K€ 396 K€ 322 K€ 310 K€ 379 K€ 586 K€ 573 K€ 483 K€

en % du Total 29,3% 26,4% 30,1% 30,5% 37,7% 33,2% 32,5%PLA750FO001 CAPOT DIODES 0 K€ 2 K€ 20 K€ 54 K€ 143 K€ 147 K€ 100 K€

PLA000PA013 POLYAMIDE 6+30% FIBRE DE VERRE 239 K€ 160 K€ 129 K€ 120 K€ 155 K€ 138 K€ 139 K€

PLA025IN004 SUPPORT BOBINE PL.LSA432 1 05 119 K€ 129 K€ 116 K€ 87 K€ 126 K€ 122 K€ 93 K€

PLA000PA001 POLYAMIDE 6/6 NOIR 30% F.V. 38 K€ 32 K€ 45 K€ 69 K€ 88 K€ 91 K€ 77 K€

PLA000RA000 MODELE 0 K€ 0 K€ 0 K€ 48 K€ 73 K€ 75 K€ 75 K€

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06



en K€ 837 K€ 767 K€ 666 K€ 733 K€ 921 K€ 1 001 K€ 862 K€

en % du Total 61,8% 62,7% 64,7% 59,0% 59,3% 58,1% 57,9%495 K€ 385 K€ 296 K€ 337 K€ 370 K€ 380 K€ 367 K€

120 K€ 147 K€ 143 K€ 117 K€ 204 K€ 243 K€ 211 K€

0 K€ 2 K€ 20 K€ 74 K€ 161 K€ 174 K€ 140 K€

143 K€ 176 K€ 166 K€ 147 K€ 115 K€ 110 K€ 61 K€

79 K€ 56 K€ 40 K€ 57 K€ 72 K€ 95 K€ 83 K€

ARTICLES


FOURNISSEURS

SCHULMAN A.SA.

CDA DEVELOPPEM

BG COMPOSITES

DIFFUSION PLAS

ASHLAND PLASTI


SYNTHESE FAMILLE : PLASTIQUE (PLA)



PLASTICS : LCC FY 06 PLASTICS : LCC FY 06

Eastern Europe

5%

Hungary2%Czech rep

0%

Slovakia3%

West. Europe

95%


PLAPLA FY 06 / FY 07 FY 06 / FY 07

• TARGET INFLATION FY 07 : -5%


– Increase in materials linked to petroleum: +5% to +10% • Price tension on finished components +2% to + 6%• LS had reasonable price increase with Schulman in Jan 06 (8% on

ABS = +1.7% total from Schulman)

– Several W European component mfrs have moved to EE– CZ, SK, RO: revaluation of currency 8% to 10% 05/06 – No problem finding capacity on plastics market

• Price reductions possible if ready to change suppliers


PLA PLA FY 06 / FY 07FY 06 / FY 07

• STRATEGY & ACTION PLAN– Develop 1 or 2 sources in E Europe

• SK, RO, HO…..• Several sources identified

– Build on good savings following FY05 auction: new sources in Romania

– Reduce number of suppliers in LS factories– Plan new auctions if volume permits: good markets for auctions– Use auctions for tooling: 35% to 50% savings in March 05– Continue working group to find available raw materails for RM

auctions• Big problem in FY06: captive market too large (ULs)


KPI / PLAKPI / PLA

B

FY 05 FY 06 FY 07

Spend in K € 1,724 K€ 2,168 K€ 2,059 K€Net Material Inflation 0.6% -1.9% -5.0%

LCCS (%) 5.0% 8.0%

e-SourcingK€ (M) Bid 436 K€ 200 K€ 250 K€average Results -20.0% -10.0% -20.0%

Direct Material DPOTotal Averge Days 101 Days 106 Days 106 DaysK€ less than 30 days 60 K€ 44 K€ 100 K€

KPI / PLA


STAMPING PARTS STAMPING PARTS

EVOLUTION INDICE MOYEN FAMILLE PIECES DECOUPEES EMBOUTIES (PDE)

92

93

94

95

96

97

98

99

100

101

Q100

Q200

Q300

Q400

Q101

Q201

Q301

Q401

Q102

Q202

Q302

Q402

Q103

Q203

Q303

Q403

Q104

Q204

Q304

Q404

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407


STAMPING PARTS STAMPING PARTS

Date : 14/06/2006


0,0% -2,5% -1,5% -2,0% 4,2% -1,0%

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06



% achats sans code 2% 3% 2% 2% 1% 0% 0%

en K€ 55 K€ 152 K€ 110 K€ 369 K€ 601 K€ 609 K€ 496 K€

en % du Total 3,1% 9,6% 8,6% 19,6% 23,8% 20,2% 14,2%PDE144CM004 CHEMISE INTERIEURE INOX 5 K€ 110 K€ 64 K€ 113 K€ 217 K€ 225 K€ 174 K€

PDE334PE001 TRAPPE B.à B.LSA432 0 K€ 0 K€ 11 K€ 84 K€ 106 K€ 119 K€ 83 K€

PDE999GR019 GRILLE SORTIE D'AIR LSA432 0 K€ 0 K€ 11 K€ 66 K€ 83 K€ 99 K€ 75 K€

PDE552SA001 SANG.ENTREE AIR E1MM 0 K€ 0 K€ 10 K€ 58 K€ 79 K€ 94 K€ 87 K€

PDE352DA007 DISQUE ACCOUPLEMENT D352.42MM 51 K€ 42 K€ 15 K€ 49 K€ 116 K€ 72 K€ 78 K€

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06



en K€ 543 K€ 438 K€ 350 K€ 908 K€ 1 515 K€ 2 002 K€ 2 130 K€

en % du Total 30,0% 27,5% 27,3% 48,3% 60,0% 66,5% 61,0%0 K€ 0 K€ 56 K€ 346 K€ 472 K€ 577 K€ 1 061 K€

2 K€ 7 K€ 34 K€ 159 K€ 261 K€ 529 K€ 310 K€

379 K€ 253 K€ 111 K€ 207 K€ 351 K€ 383 K€ 330 K€

162 K€ 178 K€ 149 K€ 167 K€ 331 K€ 286 K€ 171 K€

0 K€ 0 K€ 0 K€ 29 K€ 100 K€ 228 K€ 257 K€


SYNTHESE FAMILLE : PIECES DECOUPEES EMBOUTIES (PDE)


GMP INDUSTRIE

ARTICLES

KOOPRON S.R.O.

VANEK JIRI

SPECITUBES


FOURNISSEURSBALBONI A.B. S


STAMPING PARTS : LCC FY 06 STAMPING PARTS : LCC FY 06

West. Europe49%

Asia1%

Czech rep49%

Hungary1%

Eastern Europe

50%


PDEPDE FY 06 / FY 07 FY 06 / FY 07

• TARGET INFLATION FY 07 : -5%


– Price of steel remains high

• Temporary shortage in 05 but OK in 06 / 07• Cold rolled (+40%) & hot rolled (+50%) in 05/04: same level today

– % Raw material in finished product now at much higher levels

– W. European companies coming back into the game on volume markets:• Well equipped: productivity• Sometimes competitive vs EE (eg. New account TCIN)


PDEPDE FY 06 / FY 07 FY 06 / FY 07

• STRATEGY & ACTION PLAN– Continue to contain price rise requests in EE: suppliers passed on 70% of

raw increase in 05 – Use Asian pressure from previous auctions

• Price savings• Helps in containment elsewhere

– Think twice before doing new auctions in Asia• Big material inflation since 05 auctions…

– Find new suppliers in VLCC for high volume: RO, BG, UK? • Logistic costs an issue

– Target newly approved LCC suppliers for medium volume: eg. Hundec Hungary

• prices –20% to –40% depending on factories (DEI, IMI, GP)• Subsidiary of French company: already has logistic circuit to France• €200k account in FY07 / 08?


KPI / PDE

FY 05 FY 06 FY 07

Spend in K€ 3,010 K€ 4,461 K€ 4,237 K€

Net Material Inflation 4.2% -1.0% -5.0%

LCCS (%) 51.0% 60.0%

e-Sourcing

K€ (M) Bid 660 K€ 0 K€ 250 K€

average Results -40.0% -20.0%

Direct Material DPO

Total Averge Days 73 Days 72 Days 72 Days

K€ less than 30 days 1,361 K€ 13 K€ 100 K€


MECHANICAL Parts (inc FY07 plan)MECHANICAL Parts (inc FY07 plan)CA FY 05

K€C/O in FY

05Inflation

06 C/O Out FY 06

CA FY 06K€

C/O in FY 06

Inflation 07

PUSPIECES USINEES HORS PIECES DECOLLETEES 8 944 -0,4% 0,4% 1,6% 8 975 1,6% -2,0%

PMOPIECE MOULEE EN

FONTE GRISE6 074 1,1% 3,3% 1,5% 6 277 1,5% -3,0%

PDEPIECE METALLIQUE DECOUPEE ET/OU EMBOUTIE

3 010 0,7% -1,0% -3,7% 2 978 -3,7% -5,0%

PLAPLASTIQUES MAT PREM,SEMI-PRODUITS 1 724 0,3% -1,9% -1,8% 1 691 -1,8% -5,0%

PMAPIECE MOULEE EN ALUMINIUM 1 200 -0,4% 2,9% 2,6% 1 235 2,6% -2,0%

PDC PIECES DECOLLETEES 821 0,0% -0,9% 0,1% 814 0,1% -2,1%

TOTAL 21 772 0,3% 0,9% 0,6% 21 969 0,6% -2,9%

Date post:	09-Jan-2016
Category:	Documents
Upload:	bluma
View:	37 times
Download:	0 times

COMMODITY REVIEW

Documents