Aston Martin - DB9 - Brochure - 2019 - 2019

AML Procurement: Welsh Automotive Engagement Paul Tedstone Director of Production Procurement Autolink 2019 - Cardiff City Stadium, 19th June 2019 PRIVATE AND CONFIDENTIAL SECOND CENTURY PLAN OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES SECOND CENTURY PLAN O U R VSECOND ISION | CENTURY PLAN OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES OUR car Company that creates OURthe most beautiful andOUR The GREAT British accomplished automotive art in the World SUPPLIERS TEAM OPPORTUNITIES SECOND CENTURY PLAN SECOND CENTURY PLAN OUR SUPPLIERS SECOND CENTURY PLAN | OUR TEAM OUR OPPORTUNITIES OUR HISTORY ASTON MARTIN PRODUCTION: 1948 - 2016 8000 DBS DB11 7000 6000 First AM exported in any significant number 5000 V8 VANTAGE 4000 DB9 DB4 DB5 DB7 3000 DB7 2000 1000 0 1948 1958 1968 1978 1988 1998 2008 SECOND CENTURY PLAN SECOND CENTURY PLAN | OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES SUSTAINABLE LUXURY 1 STABILISATION 2 CORE STRENGTHENING PORTFOLIO EXPANSION ACHIEVED ALMOST COMPLETE COMMENCED AND ON TRACK 2015 - 2017 2016 – 2018 2018 - 2022 • New leadership team • Clear growth plan • Fully financed • De-risking of the business • All new GT / Sports Car Range • New “Specials” Strategy 3 • 7 core models expected by 2022 SUSTAINABLE LUXURY BUSINESS Delivering Predictable growth and high margins • 2nd manufacturing plant • Optimised capacity at c.14k Significant value creation • Full EV capability Long term sustainability SECOND CENTURY PLAN SECOND CENTURY PLAN | OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES SUSTAINABLE LUXURY 3 PILLAR PRODUCT STRATEGY GT, Sports and Mid-Engine 4 Models SUVs Sedans 2 Models 1 Models Specials • Regular cadence: Two specials and one heritage special p.a. • Perpetuating brand uniqueness, exclusivity and desirability SECOND CENTURY PLAN OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES CYCLE PLAN SECOND CENTURY PLAN | S E V E N M O D E L S O V E R S E V E N Y E A R S , C O P Y, R E P E A T Largest Investment plan in the company’s history 7 new models over 7 years with a 7 year life & repeat Alongside this we deliver regular lines of limited edition specials 2015 2016 2017 2018 2019 2020 2021 Core Annual Special #1 Specials Annual Special #2 Heritage 2022 SECOND CENTURY PLAN SECOND CENTURY PLAN | OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES MANUFACTURING STRATEGY G AY D O N Warwickshire, GB Home of our sports cars and special projects Optimised capacity c. 7.0k units S T AT H A N Glamorgan, GB Home of our large cars and Electrification Optimised capacity c. 7.0k units NEWPORT PA G N E L L Buckinghamshire, GB Home of our Heritage car continuation and restorations SECOND CENTURY PLAN OUR SUPPLIERS SECOND CENTURY PLAN | OUR TEAM OUR OPPORTUNITIES PRODUCTION GROWTH The addition of our St Athan facility raises our production capacity to 14,000 cars a year. Units 15000 10000 FUTURE 5000 2016 2017 2018 0 This growth, supported by the new model releases of the Second Century Plan opens up new opportunities to develop and bolster our supply base. SECOND CENTURY PLAN OUR SUPPLIERS OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES OUR SUPPLIERS SECOND CENTURY PLAN 1 STRATEGY OUR TEAM OUR OPPORTUNITIES 2 PERFORMANCE 3 PARTNERSHIP OUR SUPPLIERS SECOND CENTURY PLAN 1 STRATEGY OUR TEAM OUR OPPORTUNITIES 2 PERFORMANCE 3 PARTNERSHIP OUR SUPPLIERS SECOND CENTURY PLAN OUR SUPPLIERS | OUR TEAM OUR OPPORTUNITIES STRATEGY 30% 64% ROW 6% % 94 of production expenditure is within the UK and Mainland Europe SECOND CENTURY PLAN OUR SUPPLIERS | OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES STRATEGY % 70 of production expenditure is within UK, Germany and Italy 30% 40% OUR SUPPLIERS SECOND CENTURY PLAN OUR SUPPLIERS | OUR TEAM OUR OPPORTUNITIES STRATEGY Development of robust commodity and supplier strategies is driving the transformation of our supply base • Strategic selection and replacement of suppliers • Effective management of our current supply base • Cross-functionally balanced and aligned strategic direction for sourcing and supplier activity • Achievement of Quality, Cost, Delivery, Development and Management (QCDDM) OVERVIEW: CURRENT & FORECAST MARKET & TECHNICAL ROADMAP \\\\\\\\\\\\\\\\ SUPPLIER STRATEGY OUR SUPPLIERS SECOND CENTURY PLAN 1 STRATEGY OUR TEAM OUR OPPORTUNITIES 2 PERFORMANCE 3 PARTNERSHIP SECOND CENTURY PLAN OUR SUPPLIERS | OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES PERFORMANCE Q AML’s Supplier Performance Management (SPM) approach is based around the key measures of QUALITY COST DELIVERY DEVELOPMENT MANAGEMENT QUALITY SUPPLIER M C MANAGEMENT COST SCORECARD D D DELIVERY DELIVERY SECOND CENTURY PLAN OUR SUPPLIERS | OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES PERFORMANCE Clear and robust Supplier Performance measures and controls Informed and crossfunctionally aligned Supplier strategy OUR SUPPLIERS SECOND CENTURY PLAN 1 STRATEGY OUR TEAM OUR OPPORTUNITIES 2 PERFORMANCE 3 PARTNERSHIP SECOND CENTURY PLAN OUR SUPPLIERS | OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES PARTNERSHIP Our Vision is to develop a world class interdependent supply base which enables the successful delivery of the Second Century Plan ALIGNED TO TARGETS & GOALS CONTINUOUS PERFORMANCE DEVELOPMENT GREATER SUPPLIER INTEGRATION SECOND CENTURY PLAN OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES OUR TEAM SECOND CENTURY PLAN OUR TEAM | OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES ORGANISATION P R O C U R E M E N T O R G A N I S AT I O N • AML Procurement has 100 employees working in a number of diverse functions • Evolution from traditionally Operational Purchasing function to Strategic Procurement function • Fast-moving dynamic team aligned to our rapid growth and diversification plan • Procurement & Supplier Development teams introduced to drive transformation of our organisation and Supply Base FUNCTIONS LOCATIONS PRODUCTION PROCUREMENT BODY IN WHITE PROGRAMME MANAGEMENT BASE ENGINE & ELECTRICAL INDIRECT PROCUREMENT INTERIOR TRIM PROCUREMENT DEVELOPMENT CHASSIS & POWERTRAIN Chase Point (Coventry) St Athan Gaydon Milton Keynes (Red Bull) Wellesbourne Newport Pagnell COST ESTIMATION SECOND CENTURY PLAN OUR TEAM | OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES ORGANISATION PRODUCTION PROCUREMENT • AML Direct Material Procurement is split across four Strategic Commodity Groups • These cover Production vehicle Sourcing, SVO, PCE & SDE • Situated in 3 main locations in St Athan (Wales), Chasepoint (Coventry) & Wellesbourne Body in White • • • Tub & Main Chassis Body panels Bumpers • • • Hinges Exterior trims Pressings Chassis & Powertrain • • • Corners Exhaust system Fuel system • • • Steering system Braking system Transmission Main Engines Electric architecture Harnesses • Base Engine & Electrical • • • • Strategic Partnerships (Ford & Daimler) Entertainment Interior Trim • • • Seats Materials Trim • • • Glass Roof systems Carbon trim SECOND CENTURY PLAN OUR SUPPLIERS OUR OPPORTUNITIES OUR TEAM OUR OPPORTUNITIES SECOND CENTURY PLAN OUR OPPORTUNITIES | OUR SUPPLIERS OUR OPPORTUNITIES OUR TEAM WAF PARTNERSHIP WELSH AUTOMOTIVE FORUM BEEL BIW CHPT Interior EE Lighting Harnesses Engines Switchgear Castings- Engine Infotainment Steering Column Hybrid Controls P2.5 Motor / Invertor Anodising Castings Composites Bumpers & RIM Extrusions Heavy Pressing Small Pressing / Sheet Metal Brightware Welded Assembly Hinges Locks & Latches Transmission Brakes Sub Frames and Suspension Exhaust & Catalyst Steering gear Pipes, hoses and driveline ancillaries Prop and Driveshafts Wheels Bearings Differential Pedal Box Wiper Systems HVAC Engine Mounts Trans TCU DCT Transmission / Damper Tyres Gearbox Mounts Leather & Cutting Wrapped components Convertible roof systems Seats Veneers (Interior) / Interior Decorative Trim Carbon Finishers Carpet mouldings, NVH Active Safety WAF – POTENTIAL SUPPLIERS OF INTEREST SUPPLIER 1 SUPPLIER 2 SUPPLIER 3 Name Location OEM’s Associates Turnover Competence Collaborative and strategic approach to Supplier Identification & Engagement through Welsh Automotive Forum • AML are working together with WAF to understand and engage with the Welsh Automotive market for our key strategic commodities. • An integrated approach at commodity-level will ensure effective focus on the most relevant areas to establish key relationships in the region and deliver mutual benefit. SECOND CENTURY PLAN OUR SUPPLIERS OUR TEAM OUR OPPORTUNITIES L O C A L I S AT I O N O P P O R T U N I T I E S Opportunities are available across a range of commodities that’s we’ve identified as we actively explore to reinforce our local supply base to support our Second Century Plan. Potential Localisation Opportunities we’re exploring BODY PANELS SMALL PRESSINGS ELECTRIFICATION ELECTRIFICATION EXHAUST SYSTEMS BRAKE SYSTEMS FABRICATION FABRICATION THANK YOU