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Ficosa International SA 2005 company profile edition 2

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Ficosa International SA 2005 company profile edition 2

November 2005

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Table of contents
Multi-user licence edition ............................................................................................ ii Copyright statement ..................................................................................................ii Table of contents ........................................................................................................ iii List of tables ................................................................................................................ iv just-auto.coms research portfolio ............................................................................. v Incredible ROI for your budget single and multi-user licences .............................. v just-auto.com membership ........................................................................................ vi Chapter 1: Company Dossier...................................................................................... 1 Chapter 2: Worldwide Locations ................................................................................ 4 Chapter 3: Financial Analysis ..................................................................................... 6 Chapter 4: Competitor Analysis ................................................................................. 7 Chapter 5: Key Events ................................................................................................. 8 Chapter 6: SWOT Analysis........................................................................................ 11 Strengths................................................................................................................ 11 Weakness .............................................................................................................. 11 Opportunities.......................................................................................................... 12 Threats ................................................................................................................... 12 Chapter 7: Customers................................................................................................ 13 Chapter 8: Products................................................................................................... 14 Chapter 9: Product Development ............................................................................. 15 Chapter 10: Prospects ............................................................................................... 17 Online sources of information .................................................................................. 18 Free email newsletters ........................................................................................... 18 Other research reports ........................................................................................... 18 Global news and feature articles............................................................................ 18 Search the web ...................................................................................................... 18 Your feedback ............................................................................................................ 19

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List of tables
Table 1: Key companies of Ficosa International, globally, across operating divisions ................................................................................................................... 4

Table 2: Key financial performance of Ficosa, 2000-2004 ....................................... 6 Table 3: Automotive products of Ficosa International ............................................ 14

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Chapter 1 Company Dossier

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Chapter 1: Company Dossier

Company name

Ficosa International SA

Business activity

Headquartered at Barcelona in Spain, Ficosa International SA is one of the leading manufacturers of automotive mirrors globally. The company also supplies a wide range of products such as parking brakes, gearshifts, air ducts, sunvisors and automotive security systems. The company has four operating divisions namely: Rear-View Systems, Command & Control Systems, Plastics & Electrical Systems and Security & Locking Systems. The company has widespread presence in Europe, Latin America, Asia and NAFTA regions, and produces more than xx million rear-view mirrors annually. In the fiscal ended December 2004, Ficosa posted a turnover of xxx.xx million, an increase of x.x% over 2003.

Stock symbol

Ficosa International SA is a private company and therefore its shares are not listed on any stock exchange. Key executives Jos M Pujol Artigas, Chairman Jos M Tarrag Fabo, Vice-Chairman Jos M Tarrag Pujol, Executive Vice-Chairman Javier Pujol Artigas, CEO Josep M Serra Permanyer, Financial Director Joan Caellas Permanyer, Procurement Director Victor Solano, Corporate Human Resources Director: Jordi Casas Gomila, Command and Control Systems Managing Division Enric Vilamaj Fontanet, Rear-View Mirrors Managing Division

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Chapter 2 Worldwide Locations

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Chapter 2: Worldwide Locations

Ficosa International SA is headquartered at Barcelona, Spain and employed approximately x,xxx people across 18 countries, as of December 2004. The following table illustrates the global presence of the company across its various operating divisions.

Table 1: Key companies of Ficosa International, globally, across operating divisions Country Spain Company Command & Control Systems Division Fico Cables SA (Saint Guim); Fico Co Cables SA (Rub); Fico Cables SA (Barcelona); Fico Cables SA (El Burgo De Osma); Fico Co Triad SA Maurice Lecoy Ficosa International SA Ficosa International Srl Ficosa Do Brasil Ltda Tata Ficosa Automotive Systems Pvt Lvd Fico Co Cables Lda Ficosa Argentina SA Ficosa North America SA De CV Ficosa North America Corporation Daeshin Machinery IndCo Co Ltd Rear-View Systems Division Fico Co Mirrors SA (Mollet Del Valls); Fico Co Mirrors SA (Nalda); Fico Co Mirrors SA (Soria) Wilke Ficosa Fico Mirrors Italia (Morcone); Fico Mirrors Italia (Venaria Reale) Fico Mirrors France-Dieuze; Fico CIPA SA RL Fico Mirrors Polska Fico Mirrors Trkiye Ficosa Argentina SA Ficosa North America SA De CV (Salinas, Victoria) Ficosa Do Brasil Ltda Ficosa North America Corporation Plastics and Electrical Systems Division Fico Transpar SA (Soria); Fico Transpar SA (Rub); Fico ITM SA (Rub); Fico ITM SA (Sant Guim De Freixenet) Ficosa International Ltd Seric Ficosa SEP doo Ficosa Ficosa North America Corporation Ficosa International Ltd Ficosa Argentina SA

France Italy Brazil India Portugal Argentina Mexico USA Korea Spain Germany Italy France Poland Turkey Argentina Mexico Brazil USA Spain England France Slovenia USA Brazil Argentina

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Chapter 3 Financial Analysis

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Chapter 3: Financial Analysis

In fiscal 2004, Ficosa International SA posted revenues of xxx.xx million, an increase of x.x% over 2003. The companys cash flow (operating income plus depreciation) stood at xx million. Ficosa had investments of xx.xx million for the year ended December 2004.

Table 2: Key financial performance of Ficosa, 2000-2004 (In millions of , unless other wise stated) 2000 2001 2002 2003 2004 xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx NA NA xx.x xx.x xx.xx xx.xx xx.xx xx.xx x.x x,xxx x,xxx x,xxx x,xxx x,xxx Fiscal ended December 31st Source: Ficosa International

Turnover Profit before tax Investments Number of employees

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Chapter 4 Competitor Analysis

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Chapter 4: Competitor Analysis

Ficosa Internationals key products are mirrors for passenger cars, and industrial & commercial vehicles. Worldwide competitors include Magna Donnelly (business division of the Canada-based automotive components manufacturer Magna), Japan-based Ichikoh and Murakami Kaimeido, US-based Gentex and Germany-based Schefenacker AG. Ficosas Rear-View Mirror Division, which ranks among the top three suppliers globally, produces nearly xx million units yearly and has presence in Europe, North & Latin America and Asia. The company is strongly growing vis--vis the mirror markets in Africa and the Near East. In Africa, Ficosas Rear-View Mirror Systems Division commanded a market share of 20.6% and in the Near East, it held xx.x%, as of 2004.

Ficosas Command & Control Systems operating division faces intense competition across its products worldwide. Prime competitors worldwide of the division include USbased Dura Automotive Systems Inc and Teleflex Incorporated, Germany-based Kuester & Co GmbH, and Italy-based Sila Holdings Industriale, among several others. Electronic and technological content is expected to account for over xx% of the vehicle cost by 2010. Keeping with this trend, customers are seeking higher functionality,

communication abilities, performance, energy efficiency and affordability in vehicles. Ficosas chief competitor, Dura Automotive, is interested in providing increased mechatronics, which have both mechanical and electronic benefits. Further, with steel prices soaring very high and affecting several companies, Dura is considering replacing heavy and conventional metals like steel with lighter metals like aluminium. This is also due to rising environmental concerns. Increasing steel prices have substantially squeezed the profit margins of companies like Tower Automotive, as the automakers are unwilling to share the burden of these increases.

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Chapter 5 Key Events

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Chapter 5: Key Events

Ficosa Internationals history began in the year 1949, when Mr Jos M Tarrag and Mr Jos M Pujol established the company Pujol y Tarrag, to produce spare parts for control cable. In the 1950s and 1960s, Ficosa began supplying to vehicle manufacturers such as Seat (Fiat), Citron, Barreiros and Fasa (Renault). The company also established new product lines such as windshield washers and steel cables, for which new companies were established.

In the 1970s, the company added large players such as Ford, Peugeot, Nissan, and Mercedes Benz to its list of customers, as the automotive majors set up manufacturing operations in Spain. Ficosa established its first factory outside Spain in Porto, Portugal to manufacture control cables. In 1974, the holding company Serco Co SA was established, which was renamed a couple of years later as Ficosa SA.

In 1983, Ficosa commenced supply of components to General Motors (GM) in Spain. The company, Ficosa SA, was renamed Ficosa International SA in 1987. Towards the end of the decade, Ficosa expanded to other European (chiefly Western Europe) countries such as Germany, the UK, Italy and France. In France, Ficosa acquired Maurice Lecoy in 1989, and two years later, established Fico Co Cipa SARL, to supply mirrors to the French automotive market. In addition, in 1991, the company founded Fico Co Triad for R&D and manufacture of automobile gearshift systems. The next year, Ficosa International Lda was established in Portugal and a second plant in the country was inaugurated at Tondela. Ficosas first company in the American continent, Ficosa North America SA de CV, was established in Mexico in 1993. In 1996, a development and engineering centre, Ficosa North America Corporation, was established to cater to the North American market in the US.

Ficosa marked its entry into the South American market with the establishment of Ficosa Argentina and Ficosa do Brasil in 1997. The company also expanded into India with the Tata Ficosa Automotive Components Company. In 1999, Ficosa acquired a company manufacturing mirrors for industrial vehicles and buses in Germany known as Metallwarenfabrik Wilke. In 2000, the company purchased the Mirror Division of Magneti Marelli (part of the Spanish automotive major, Fiat) that was present in Spain, France,

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Chapter 6 SWOT Analysis

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Chapter 6: SWOT Analysis

Strengths The Rear-View Mirror Systems Division of Ficosa ranks among the top three suppliers in the world. The division is unsurpassed in the global market, manufacturing xx million units annually, covering major markets including Europe, Asia, NAFTA and Latin American markets. The Rear-View Mirror Systems Division also holds strong positions both in Africa and the Near East with market shares of xx.x% and xx.x%, respectively (as of October 2004). The companys robust focus on R&D is also a key factor that facilitates its sustainability as one among the leading automotive suppliers in the world. As of June 2005, Ficosa held xxx patents, of which xx patents were filed in 2004.

A3, Ficosas joint venture with Fractus, is the only company that is authorised to make use of fractal technology for automotive applications. A3 is therefore in a very strong position as the sole designer and developer of high-performance miniature automotive antennas. Furthermore A3 licensed its fractal technology to Nippon Antenna for the development and manufacture of fractal aerials for Nippon Antennas customers Mazda and Nissan. Weakness

Ficosa depends on a very small number of customers for majority of its revenues. For instance, in 2002, the company accounted for approximately xx% of its revenues from just four customers namely: Volkswagen, PSA, the Fiat Group and the Ford Group. Moreover, the top customers of the company predominantly derive a large portion of their sales from Europe alone. In 2004, PSA depended on Western Europe for nearly xx% of its sales, while the Fiat Group depends on Europe for nearly xx% of its sales, of which Italy alone accounts for some xx%. This exacerbates the region specific risks for Ficosa. Further, the fortunes of companies such as Fiat and Ford Europe have been on the decline for some years.

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Chapter 7 Customers

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Chapter 7: Customers
Ficosa International SA serves automotive OEMs across xx countries in the world. Ficosa maintains factories across the world near the production centres of its customers. The company supplies automotive components to almost every leading OEM worldwide. The key customers of Ficosa include Volkswagen, GM, Ford, Renault, Audi, Saturn, Mercury, SEAT, Nissan, Jaguar, Lincoln, Skoda, Peugeot, Mercedes-Benz, Saab, Toyota, Citron, Chrysler, BMW, Porsche, Daewoo, Mitsubishi Motors, Alfa Romeo, Ferrari, Iveco, Honda, Scania, Volvo and Fiat, among others.

In 2002, the company accounted for approximately xx% of its revenues from just four customers namely: Volkswagen, PSA, the Fiat Group and the Ford Group.

Recent key customer contracts for Ficosa include the following:

In June 2004, Ficosa announced that it was to supply five lines of automotive products to the French Group Renault. The products were intended for Renaults new Logan model manufactured by Dacia, the Romanian arm of Renault. The products to be supplied included exterior and interior rear-view mirrors, parking brakes, pedal box and the like.

In October 2004, Ficosa entered into an agreement with Audi for developing the rearview mirrors of Audis new TT model. The top-end TT model sports car is set to enter the market in the spring of 2006. With the agreement with Audi, Ficosa consolidated its presence across all the brands of the Volkswagen Group (Volkswagen, Skoda, SEAT, Bentley and Audi).

Some of the other major projects attained by Ficosa during 2004 include system development projects for luxury vehicles such as BMW X3, Audi A4 and TT, VW Touareg, Ferrari 430 and Nissan Pathfinder, a contract with Volkswagen for designing future rear-view mirrors.

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Chapter 8 Products

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Chapter 8: Products
Ficosa International SA supplies various automotive components for passenger cars, commercial and industrial vehicles and motorcycles. However, the companys key product area is mirrors. The following table illustrates the companys products across its operating divisions for Automobiles (passenger cars) and Industrial & Commercial Vehicles.

Table 3: Automotive products of Ficosa International Operating Division Rear-View Systems Automobiles Internal & external mirrors, painted plastic components Parking brakes, drive cables, gearshifts, mechanisms for doors & seats Windshield and headlamp, tanks/reservoirs, Air ducts, electric pumps, Sun visors, washers Anti-theft systems, locking systems and keys, door and tailgate handles Source: Ficosa International Industrial & Commercial Vehicles Mirrors for trucks, buses (including the Wilke brand), Painted plastic components Gearshifts, drive cables, parking brakes Windshield and headlamp, tanks/reservoirs, Air ducts, electric pumps, Sun visors, washers

Command & Control Systems Plastics & Electrical Systems

Security & Locking Systems

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Chapter 9 Product Development

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Chapter 9: Product Development

On an average, Ficosa spends x% of its yearly turnover on R&D activities. The company has technological centres in Europe and the US, which it considers to be the cornerstone of its R&D activities. Recently, Ficosa inaugurated its new research centre, Pujol y Tarrag, in Barcelona (Spain). The centre, which came up at an investment of xx million, was constructed to deal with R&D chiefly for new car systems. As of June 2005, Ficosa held 675 patents, of which 56 patents were filed in 2004.

Some of the key recent product development events at Ficosa International recently are listed below:

The Command and Control Systems Division of the company sees X-By-Wire technologies as the future. The company considers R&D activities in the field of XBy-Wire systems a key strategic area. Ficosas current portfolio of By-Wire system products includes new generations of Electronic Parking Brakes, Throttle By-Wire and Shift By-Wire. The company has planned an entire series of By-Wire systems to be developed within a short time frame.

The Rear-View Systems Division of the company is focusing on both the passive and active safety components in terms of R&D activities. Ficosa claims that it was the first company to offer a vehicle rear-view mirror featuring a compact digital camera with an integrated processor for blind spot detection. The technology is placed under the category called Intelligent Integrated Safety Systems (eSafety). The company is now able to work on the vehicles axes of vision, both rear and front due to accumulated know-how. The rear-view mirror technologies of Ficosa include electrical power fold, sensors, blin-k, light and electrochromic.

A3, the joint venture between Ficosa and Fractus, has been able to develop highperformance automotive miniature antennas by making use of fractal technologys space-filling capabilities. A3s automotive antennas can be integrated with existing automotive components like rear-view mirror, which eliminates the need for conspicuously visible external antennas. The products developed under the A3s line of business are categorised under the product platform, MultiWave Antenna, which

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Chapter 10 Prospects

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Chapter 10: Prospects

Between 1996 and 2003, Ficosas turnover grew at a CAGR of approximately xx%. In November 2004, Ficosa announced that it expected to reach a turnover of 800 million in fiscal 2004. However, in fiscal 2004 the company was able to post sales of 774 million, a x.x% growth over 2003. The growth in the companys turnover over the years was largely aided by international expansion and concentration on R&D. Ficosas joint venture with Shanghai Benyuan, a leading automotive rear-view mirror manufacturer in China will enable the company to leverage the attractive Chinese market.

On the product front, Ficosa has enhanced its portfolio with its blind spot detector and A3 fractal antennas. In April 2005, the A3 car aerial was presented with the prestigious PACE (Premier Automotive Suppliers Contributions to Excellence) award in the US. A3 was the first and only Spanish company, as of April 2005, to receive the award. The companys extensive push into the area of product development, particularly by its Rear -View Systems Division, is earning recognition from key customers such as Volkswagen. With the October 2004 agreement with Audi, Ficosa consolidated its presence across all the brands of the Volkswagen Group comprising of Volkswagen, Skoda, SEAT, Bentley, and Audi. In addition, A3s modern information technology system (fractal antennas) has been selected for incorporation across some new Fiat and PSA models that are coming into the market in the year 2006. A3 plans to manufacture over half a million fractal antennas in 2007, which is in stark comparison with the overall turnover of xx,xxx units recorded in 2004 and reflects the companys perceived faith in the products future success.

Overall, Ficosa is equipped for strong growth in the coming years, strengthening its presence in Asia and Eastern Europe and developing innovative products, with a expected turnover of x billion by 2008.

Principal customers of Ficosa such as the Fiat Group and the Ford Group have been experiencing slow down in sales for some years now. Moreover, its key customers, PSA and Fiat, depend largely on Europe for their sales. This is a matter of concern for a component supplier, such as Ficosa, as the CAGR of auto production (from 2005-2007) is expected to decline by x.x% in Western Europe.

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