Global Growth. Josep Fornos, Senior Vice President, Europe, South America and India Tim Jackson, Chief Technology Officer

Transcription

1 Global Growth Josep Fornos, Senior Vice President, Europe, South America and India Tim Jackson, Chief Technology Officer 14 September, 2011 Frankfurt, Germany /11 1

2 Safe Harbor The foregoing presentation contains forward-looking statements that involve risks and uncertainties which could cause the company s plans, actions and results to differ materially from its current expectations. Such risks and uncertainties include, but are not limited to, the following: (i) general economic, business and market conditions; (ii) the company s ability to source and procure needed goods and services in accordance with customer demand and at competitive prices; (iii) changes in capital availability or costs, including increases in the company s costs of borrowing, the amount of the company s debt, the ability of the company to access capital markets at favorable rates, and the credit ratings of the company s debt; (iv) changes in consumer preferences and changes in automotive and commercial vehicle manufacturers production rates and their actual and forecasted requirements for the company s products; (v) the overall highly competitive nature of the automobile and commercial vehicle parts industry, and any resultant inability to realize the sales represented by the company s awarded book of business which is based on anticipated pricing for the applicable program over its life; (vi) the loss of any of our large original equipment manufacturer ( OEM ) customers, or the loss of market shares by these customers if we are unable to achieve increased sales to other OEMs; (vii) workforce factors such as strikes or labor interruptions; (viii) increases in the costs of raw materials, including the company s ability to successfully reduce the impact of any such cost increases; (ix) the negative impact of higher fuel prices on logistics costs and discretionary purchases of vehicles or aftermarket products; (x) the cyclical nature of the global vehicular industry, including the performance of the global aftermarket sector and longer product lives of automobile parts; (xi) the company s continued success in cost reduction and cash management programs and its ability to execute and realize anticipated benefits from these plans; (xii) product warranty costs; (xiii) the cost and outcome of legal proceedings, and the impact of changes in and compliance with laws and regulations, including environmental laws and regulations and the adoption of the current mandated timelines for worldwide emissions regulations; (xiv) economic, exchange rate and political conditions in the countries where we operate or sell our products; (xv) the company s ability to develop and profitably commercialize new products and technologies; (xvi) changes by the Financial Accounting Standards Board or other accounting regulatory bodies to authoritative generally accepted accounting principles or policies; (xvii) changes in accounting estimates and assumptions, including changes based on additional information; (xviii) governmental actions, including the ability to receive regulatory approvals and the timing of such approvals, as well as the impact of changes to and compliance with laws and regulations pertaining to environmental concerns, pensions or other regulated activities; (xix) acts of war, riots or terrorism, including, but not limited to the events taking place in the Middle East and the impact of these acts on economic, financial and social conditions in the countries where the company operates; (xx) the timing and occurrence (or non-occurrence) of transactions and events which may be subject to circumstances beyond the control of the company. Additional information regarding these risk factors and uncertainties is detailed from time to time in the company s SEC filings, including but not limited to its report on Form 10-K. 2

3 Global Supplier Emission and Ride Control Systems 2010 Revenues $5,937MM 48% North America 41% Europe, S. America & India 11% Asia Pacific 2009 Revenues $4,649MM Emission Control / Ride Control 64 / / 37 Original Equipment / Aftermarket 80 / / 22 Product, Market and Geographic Balance 3

4 Tenneco Global Operations Approximately 22,000 employees serving customers globally from more than 80 manufacturing facilities and 14 engineering and technical centers Headquarters Emission Control Manufacturing Ride Control Manufacturing Emission Control Engineering Ride Control Engineering 4

5 Top 20 Customers As a % of Total 2010 Revenues, with Geographic Mix 1. General Motors 19.0% 2. Ford Motor 13.3% 3. Volkswagen Group 7.5% 4. Toyota Motor 5.0% 5. Daimler AG 4.3% 6. SAIC Motor 3.3% 7. BMW 3.1% 8. Chrysler 2.1% 9. NAPA 2.1% 10. PSA Peugeot Citroën 2.0% 11. First Auto Works 2.0% 12. Navistar 1.9% 13. Advance Auto Parts 1.6% 14. Tata Motors 1.5% 15. Temot 1.4% 16. Geely Automotive 1.3% 17. Nissan Motor 1.2% 18. O Reilly Automotive 1.1% 19. Uni-Select 1.0% 20. Changan Automotive 1.0% OE Customer AM Customer Balanced Customer Mix North America Europe, S. America & India Asia Pacific 5

6 Strategic Initiatives Invest in growing markets with proprietary technologies Leading emission control technologies to meet regulations Adjacent markets for new revenue opportunities Advanced technology for improved ride performance BRIC+T markets for rapid growth Enhance customer mix Leverage aftermarket premium brands and distribution strength Advance operational excellence Continuous productivity improvements with Tenneco Manufacturing System Standardized global processes and capabilities Optimize global footprint Improvements in safety and quality Improve financial strength Capitalize on cash flow and EVA discipline Focus on reducing leverage Target net debt/adjusted mid-cycle EBITDA* ratio of 2.0X * Including noncontrolling interests 6

7 Significant Growth Opportunities in BRIC+T Markets Well-positioned with manufacturing and engineering facilities to capture growth India Since 1995 China Since 1995 Thailand Since 2001 Brazil Since 1997 Russia Since 2003 EC JIT RC JIT EC Plant RC Plant Elastomer Plant Engineering Facility Regional Headquarters CAGR: Projected 5-year Compounded Average Growth Rate through 2015 for industry light vehicle production in the applicable country Source: IHS Automotive, January

8 China Growth Tenneco serves global OEMs and domestic manufacturers in China Emission Control Six majority-owned JVs New wholly-owned emission control manufacturing in Guangzhou Advanced emission control engineering center in Shanghai China Ride Control One majority-owned JV production facility in Beijing Wholly-owned elastomer production facility in Suzhou Five new or expanded plants within the last year 8

9 Global Vehicle Platform Launches in 2011 Passenger cars Ford Focus Cold-end exhaust systems Shock absorbers Nissan Micra Exhaust systems Shock absorbers Toyota Etios Shock absorbers and struts 9

10 Regulatory-Driven Emission Control Growth Global Emissions Regulation Timeline U.S Locomotive & Marine Tiers 0-2 US-10 CVS On-Highway Motorcycle Rule Tier 2 EUROPE Euro-5 CVS Euro-5 LVS NL Marine OE / Retrofit CHINA JAPAN BRAZIL Euro-3 Two- Wheel Beijing Euro-4 LVS Cold-start restrictions LVS Beijing CVS Yellow Label Japan-09 LVS / CVS US Tier 2 LVS* Motorcycle Rule* PM 2.5 & NO 2 limits Euro-4 LVS US Off-Road Tier 4i* EU Off-Road Stage 3B EU CO 2 / GHG 120g PM # LVS NOx reductions LVS Locomotive & Marine Tier 3 CA CVS Retrofit* Motorcycle Euro 4 Euro-4 CVS Euro-5 LVS Beijing Euro-5 CVS Euro-5 CVS RUSSIA Euro-3 LVS Euro-4 LVS / CVS INDIA Euro-4 LVS Motorcycle Rule* Euro-4 CVS 11 Cities CVS - Commercial Vehicle Systems LVS - Light Vehicle Systems R.I.C.E. Stationary Euro-6 CVS EU Sound regulation JP-13 CVS US Off-Road Diesel Tier 4f* Locomotive & Marine Tier 4* CA LEV III * Phased in ** Estimated date EU Off-Road Stage 4 Euro-6 LVS Tier 4i Off-Road Major cities** Euro-5 CVS Euro-5 CVS** US Fed Tier 3 LVS*,** Motorcycle Euro 5** Euro-5 CVS** JP-16 CVS* 10

11 Tenneco Linking Regulations to Full Suite of Technologies s Full Suite of Technologies Regulations US-10 CVS On-road Reduction in NOx Turnkey Urea SCR System with Dosing Module Hydrocarbon Injector Lean NOx Adsorber CVS Vaporizer US-Tier 4i CVS Off-road EU Stage 3B CVS Off-road Reduction in Diesel Particulates Off-road Diesel Oxidation Catalyst & DPF Hydrocarbon Injector Off-road Emissions Module T.R.U.E.-Clean Thermal Management China Euro-4 CVS On-road Reduction in NOx Turnkey Urea SCR System with Dosing Module Hydrocarbon Injector CVS Vaporizer Brazil Euro-5 CVS On-road Reduction in NOx Turnkey Urea SCR System with Dosing Module Hydrocarbon Injector Hydrocarbon Lean NOx Catalyst EU Euro-6 CVS On-road Reduction in Diesel Particulates and NOx Turnkey Urea SCR System with Dosing Module Hydrocarbon Injector T.R.U.E.-Clean Thermal Management US-Tier 4f CVS Off-road EU Stage 4 CVS Off-road Reduction in NOx Turnkey Urea SCR System with Dosing Module Hydrocarbon Injector T.R.U.E.-Clean Thermal Management CVS Vaporizer CVS Vaporizer CVS Vaporizer US Locomotive / Marine Tier 4 Reduction in Diesel Particulates and NOx Turnkey Urea SCR System Off-Road Diesel Oxidation Catalyst & DPF T.R.U.E.-Clean Thermal Management Retrofit Aftertreatment US Fed Tier 3 LVS (Estimated) Reduction in HC, NMOG and Particulates (Non-Methane Organic Gas) Electronic Exhaust Valve Fabricated 3- Layer Manifold Gasoline Particulate Filter Emissions Air Pump T.R.U.E.-Clean Mini Thermal Management T.R.U.E.-Clean Mini Thermal Management Hydrocarbon Lean NOx Catalyst Hydrocarbon Lean NOx Catalyst Hydrocarbon Lean NOx Catalyst Hydrocarbon Trap Common Rail Urea Dosing In production or currently ready for production In development Modular Tier 4 Aftertreatment 11

12 Light Vehicle Technologies to Meet Evolving Powertrain Needs Improving Fuel Economy Gasoline Gas Direct Injection Diesel Gas & Diesel Hybrids Micro, Mild, Full, Plug-in Catalytic converter systems Catalytic converter systems Diesel particulate filters Diesel aftertreatment Ultra-thin substrate converters Semi-active muffler valve technology Ultra-thin substrate converters Semi-active muffler valve technology Diesel oxidation catalysts Selective catalytic reduction and HC-LNC NOx adsorber Catalytic converter systems Ultra-thin substrate converters Fabricated manifolds Lightweight mufflers and thin-wall pipes Lightweight mufflers and thin-wall pipes Fabricated manifolds Gasoline particulate filters Heat exchangers HC-LNC for Lean GDI Lightweight mufflers and thin-wall pipes Fabricated manifolds Heat exchangers Vaporizers Electronic valves and piping for exhaust gas recirculation Semi-active muffler valve technology Fabricated manifolds Lightweight mufflers and thin-wall pipes Heat exchangers 12

13 Technology for Improved Diesel Vehicles CO 2 /MPG Technology Benefit Higher efficiency SCR Tune engine for higher NOx and better fuel economy Larger DPF Lower backpressure HC-LNC Reduced weight, more payload T.R.U.E.-Clean Less fuel for DPF regeneration Fabricated Diesel Manifold Better engine efficiency and thermal management Heat exchanger Reduced idling, faster warm-up Lightweight component Reduced mass, increased payload New Regulations Provide Increased Content Opportunity for Tenneco 13

14 Ride Control Technology Roadmap Technology Roadmap Multi Tunable Valve (Global Valve) Hollow Piston Rod Blow Off Disc Spring Valve BOCS Valve Plastic Spring Seat Kinetic H2 CES Combo Lightweight Aluminum Tube Kinetic H2 for ATV Lightweight Rod Guide Variable Tube Thickness Velocity Progressive Seat Dampers High-Velocity Compression Damping Thin Wall Lightweight Monotube CES II External Valve Green Shock with Bio Oil Aluminum Dual Tube Damper FSD Valving System DRiV TM Digital Valve Lightweight Composite Strut DRiV TM Cab Shock Dual Stage Electronic Shock Hydraulic Leveling Global Valve II CVS Double Path Mount Motorbike Electronic Shock Integrated CVS Regenerative Damper Semi-active Internal Valve ENRES Energy Recuperation ACOCAR TM Active System In production or production ready In development production ready in

15 Electronic Damping Technologies for Improved Ride Performance & Safety Continuously Controlled Electronic Suspension (CES) Continue to win and launch new CES business In production on 30 models with multiple customers including Volvo, Audi, Ford Europe, Mercedes/AMG, Volkswagen, BMW In development with 9 additional models Selling price is about 4-6 times price for a standard shock European Electronic Dampers Market Evolution and Tenneco Growth (In Millions of Units) Tenneco CES Volume Total Semi-Active Damping Market Kinetic + CES (H2CES) Combination of Kinetic and CES Kinetic Independent corner control with a more neutral steering behavior CES Semi-active body and wheel hop control with a better compromise between handling and comfort Recently debuted on the McLaren MP4-12C Awarded Supplier of the Year from Vehicle Dynamics International magazine for our Kinetic H2/CES Semi-Active Suspension In testing and development for another manufacturer IN PRODUCTION 15

16 DRiV TM Digital Valve Digital, not analog Only 16 positions, but able to switch in microseconds Damper Twin tube configuration Valves configured in rod guide Otherwise uses standard components On-board electronics Valve drivers, Diagnostics, Communication Can be configured for multiple applications Continuously variable Driver-selectable, multi-position Electronics Control Unit (ECU) Valve drivers located at the damper Control algorithm located in an integrated ECU 16

17 energy recuperation [W] ISO2631 fairly uncomfortable ISO2631 uncomfortable ISO2631 very uncomfortable ACOCAR TM Active Shock and Strut The ultimate in ride and comfort Power actuator instead of passive damper PUMP / MOTOR Components Electric pump (power pack) Switch valve switches to compression or rebound side Electronic valves to regulate compression/rebound force Advantages Ability to lift or push wheel against natural direction of travel Greatly improved secondary ride, including reduced head toss Maintain desired tire to road contact under all conditions Vehicle load leveling and ride height management V 150W G rotor 12V 60W gearpump 12V 60W G rotor Qopt 12V 150W G rotor with on/off valve hydraulic pump power vibration value [m/s²] 17

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