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April 26, 2012 1 PKC Group Plc

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PKC Group Plc. PKC Group Briefly. PKC Group Plc operates in two core business segments: wiring systems and electronics PKC designs and manufactures electrical distribution systems, wire & cables, wiring components and electronics - PowerPoint PPT Presentation

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Page 1: PKC Group Plc

April 26, 2012

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PKC Group Plc

Page 2: PKC Group Plc

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PKC Group Briefly

• PKC Group Plc operates in two core business segments: wiring systems and electronics

• PKC designs and manufactures electrical distribution systems, wire & cables, wiring components and electronics

• The Group’s products and services are delivered mainly to the commercial vehicle, automotive and electronics industries

• Global footprint and headquartered in Helsinki, Finland

• The Group’s net sales amounted to EUR 550.2 million in 2011

• 21,895 employees globally at the end of Q4/2011, rented employees included

• PKC Group Plc is listed in NASDAQ OMX Helsinki Ltd.

• www.pkcgroup.com

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Page 3: PKC Group Plc

Growth Through Focused Investments

66.6 83.6113.9 128.6 125.1 134.3 146.0

177.7 198.8228.9

288.6 311.7

201.8

316.1

550.2

0

100

200

300

400

500

600

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Net Sales Development over Time

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1997 1998 2000 2002 2003 2005 2006 2007 2008 2009

Brazilian factory was opened

Acquisition of electronics business

Acquisition of Estonian production

Operations started in China

PK Cables listed in the Helsinki Stock Exchange

Acquisition of Russian production

Acquisition of Electro Canada in Canada, the USA and Mexico

Acquisition of MAN WH production in Poland

2010 2011

Acquisition of SEGU in Germany, Poland and Ukraine

Acquisition of AEES in North America, Brazil and Ireland

EUR million

Page 4: PKC Group Plc

PKC locations today

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Barchfeld, Germany (M)Dundalk, Ireland (M)Haapsalu, Estonia (M)Keila, Estonia (M)Helsinki, Finland, (HQ)Kempele, Finland Kostomuksha, Russia (M)Mukachewo, Ukraine (M)Raahe, Finland (M)Sosnowiec, Poland (M)Starachowice, Poland (M)

Suzhou, China (M)

Curitiba, Brazil (M)Itajuba, Brazil (M)São Bento do Sul, Brazil (M)Sao Paolo, Brazil

Wiring systems business

Electronics business

Manufacturing

Acuna, Mexico (M)Dallas, Texas Green Valley, ArizonaFarmington Hills, Michigan Jeffersontown, Kentucky Juarez, Mexico (M)Kirkland, WashingtonMonterey, MexicoNogales, Mexico (M)Piedras Negras, Mexico (M)Portland, OregonSan Antonio, TexasTorreon, Mexico (M)Traverse City, Michigan (M)

North America

South America

Europe

Asia

(M)

PKC is committed to global partnership; we will evolve this global

footprint to be where our key customers need us.

Page 5: PKC Group Plc

PKC Truck Market Share

5Source: Truck Statistics: J.D. Power Automotive Forecasting, Q3 2011, ACT Forecasting September 2011, Note: Europe comprised of EU27 + Efta

North America

South America

Europe

- PKC - Others

Total Truck Market ShareNA/SA/Europe

PKC Group is a Leading Supplier to the Medium/Heavy Truck Markets

Page 6: PKC Group Plc

Wiring Systems Business

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Page 7: PKC Group Plc

Wiring Systems Business Overview

• Develops, designs and manufactures complex and customized electrical distribution systems, components and wires & cables

• Most of the customers are operating in the commercial vehicle and automotive industries

• Service concept comprises cost-efficiency contract manufacturing, professional product development, sourcing and design services

• Factories are certified in accordance with requirements of the ISO 9001 and ISO/TS16949 quality and ISO 14001 environmental standards

• Factories in Brazil, China, Estonia, Germany, Ireland, Mexico, Poland, Russia, Ukraine and the USA

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Page 8: PKC Group Plc

Wiring Systems Product Offering

Electrical Distribution Systems (EDS)

• Designs and manufactures electrical distribution systems for the commercial vehicle, light & specialty vehicles, recreational products and various other equipment

Components • Manufactures plastic components and connectors, junction boxes and

various power distribution centres

Wire & cables• Manufactures wires and cables for PKC’s products in North America

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Page 9: PKC Group Plc

Electrical Distribution Systems, EDS

• Leading, global electrical distribution systems supplier for heavy trucks

• Manufactures electrical distribution systems also for light vehicles, buses, recreational vehicles as well as construction, forestry and agricultural equipment

• Full service capabilities from design to final functional testing

• Strong experience on high volumes JIT deliveries with customized product variations

• Manufacturing of water tight and heat resistant engine and other wiring systems and injection moulding of connectors and grommets

• Factories in Brazil, China, Estonia, Germany, Mexico, Poland, Russia and Ukraine

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Batch harnesses

Engine harnesses

Chassis harnesses

Instrument harnesses

ABS cable

Page 10: PKC Group Plc

Key Customer Segments

• Trucks & Buses

• Light vehicles

• Engines

• Recreational Products

• Agricultural, Forestry and Construction Equipment

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Page 11: PKC Group Plc

Electronics Business

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Page 12: PKC Group Plc

Electronics Business

• ODM services - Total solution including design, sourcing, prototyping, manufacturing, testing, logistics and after sales services

• R&D partner and contract manufacturer in industrial, commercial vehicle and “Green Business” electronics

• High-quality, experienced and flexible partner with excellent customer service and short lead times

• Innovative and proactive design and product development services in Finland and China

• Factories in Finland, China and Russia

• Factories are certified in accordance with requirements of the ISO 9001 and ISO/TS16949 quality and ISO 14001 environmental standards

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Page 13: PKC Group Plc

Products and Industrial Segments

Products

•Power supply units

•Electronics control units

•Vehicle electronics

•Testing equipment

•Electronics service devices

•Vehicle computers

•Security products

Industrial Segments

•Industrial electronics

•Telecommunication

•Commercial vehicles

•Energy

•Security

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Page 14: PKC Group Plc

PKC Service Concept

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Page 15: PKC Group Plc

PKC Group’s Strengths

• Global geographic footprint with majority of manufacturing in low cost countries

• High-quality, flexible and professional partner with world-class services

• Extensive product and service portfolio covering the entire product life-cycle

• Long-term and close customer relationships

• Excellent technology know-how and strong knowledge of the business

• Skilled and committed personnel

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Page 16: PKC Group Plc

PKC Group in Russia

Page 17: PKC Group Plc

Operating in Russia

• PKC Group has been operating in Russia for 20 years

– In Kostomuksha

• OOO AEK, wiring harnesses (since 1992)

• OOO Elektrokos, electronics (since 2002)

• OOO PKC Group Northwest, wiring harnesses (since 2008)

• Two operating models in Russia

– production under a refining license

– Production and direct deliveries in Russia market

Page 18: PKC Group Plc

Operating model

• Operations in Russia have been based on production under a refining license– Materials are imported from

Europe using a specific customs regime

– All deliveries outside Russia

• The company manufactures products for customers operating in Russia– Materials can be imported or

procured locally in Russia

– Enables fast deliveries

Page 19: PKC Group Plc

Productional Strengths in Russia

• Efficient operation models and modern equipment

• Processes according to certified quality standards

• PKC has long experience in operating in Russia

• Close co-operation with the customer– Shared product development early in the

concept and quotation phase

– Joint cost-reduction ventures

• Flexible proto-type deliveries on short notice

• Strong project management

• One of the biggest employers of women in the Karelia Republic area

Page 20: PKC Group Plc

Logistic Strengths in Russia

• Strong competence on delivery arrangements and operation of logistics systems– Skilled in-house inbound organisation

– Effective component sourcing services from Group’s global sourcing organisation

• Personnel with fluent language skills and outstanding know-howon customs procedures in Russia, Estonia, and Finland

• Expertise on exports of final products from Russia

– Electronic customs clearance in use

• Strong experience shows as flexible, fast, and reliable service

Page 21: PKC Group Plc

Factories

Page 22: PKC Group Plc

Kostomuksha Wiring Harness Factory

• About 1,000 employees

• Total area of 17,600 m²

• Strengths

– New state-of-the-art facilities

– 20 years’ experience in wiring harness manufacturing in Russia

– Full-scale manufacturing

KOSTOMUKSHA

ST PETERSBURG

MOSCOW

Page 23: PKC Group Plc

Kostomuksha Electronics Factory

• Approx. 200 employees

• Total area of 4,000 m²

• Strengths– Modern production premises

– Close co-operation and sharedresources with wiring harnessfactory in Kostomuksha

– High-speed modern SMD lines

– Long experience in EMS services

– Production according to international environment requirements

Page 24: PKC Group Plc

Summary

• Long experience in operating in Russia

• A reliable, available, flexible, and high-quality partner

• Long-term partnerships with world class customers

• Knowledge of demanding conditions, from arctic to tropical climates

• Local availability globally

• Ability to deliver wiring harnesses and electronics

• A financially solid company – capability for future investments

• Highly motivated personnel

Page 25: PKC Group Plc

Thank you!

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