Transport is a global supplier of engineering solutions for the railway industry. ... HVAC...
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F A I V E L E Y
a C t i v i t y r E p o r t 2 0 1 4 / 1 5
F A I V E L E Y
onev i s i o n
CEos message 8
our Executive Committee 10
our performance 2014/15 11
our market 12
ones t r a t E g y
grow talent 19
a solid platform for growth 20
onep o r t f o l i o
access & Mobility 22
Brakes & safety 24
Energy & Comfort 26
Sales by geographic region
REST OF THE WORLD
Workforce by geographic region
BRAKES & SAFETY
Sales by division
ACCESS & MOBILITY
A worldwide partner
55 sites INCLUDING:
51 COMMERCIAL SITES
44 PRODUCTION & MAINTENANCE SITES
12 CENTRES OF COMPETENCE
5,700EMPLOYEES IN 24 COUNTRIES
Centres of Competence
Production and maintenance sites
1,540 10 9
Faiveley Transport is a global supplier of engineering solutions for the railway industry. With some
5,700 employees in 24 countries, the Group comprises five operating Divisions; three of which are
product-based, one is a provider of services and another is devoted solely to China, the worlds biggest
market for high-speed railways. At a product level, our Divisions are Brakes & Safety, Energy & Comfort,
and Access & Mobility. All our Divisions work together as One Faiveley, and believe in our three core
values of being Reliable, Passionate and Collaborative. We also share a common vision of the Groups
future, which is set out in a comprehensive mid-term plan: Creating Value 2018.
V i S i O n
Door leaf inspection after painting Saint-Pierre-des-Corps, France.
Reli ableWE ARE ACCOunTABlE
AnD TRuST WORThy PARTnERS.
WE CAn BE COunTED On.WE DEliVER OuR COMMiTMEnTS
WiTh inTEGRiT y.
Collab orativeWE WORk AS A GlOBAl TE AM.
WE ShARE OuR knOWlEDGE
AnD BEliE VE in OuR
WE l iSTEn TO AnD
RESPECT E ACh OThER.
HVAC components assembly Shanghai, China.
Passi onateWE ARE PASSiOnATE ABOuT R AilWAyS.
WE BuilD On ThEM TO ADDRESS
OuR CuSTOMERS nEEDS
CRE ATiVEly AnD SWiF Tly.
PASSiOn AnD E xPERTiSE ARE
ThE Pill ARS OF OuR CR AF T.
Overhaul of an SW4distributor Amiens, France.
Activity report 2014/15 FAiveley trAnSPort 9FAiveley trAnSPort Activity report 2014/15 8
O n e V I S I O n
Stphane Rambaud-meaSSon, Chief exeCutive offiCeR of faiveley tRanSpoRt and ChaiRman of the management boaRd, diSCuSSeS the 2014/15 finanCial yeaR and the CompanyS StRategiC plan, CReating value 2018.
What is your assessment of 2014/15?
One of the most striking achievements
was the strong recovery in our order intake:
we reached a backlog of 1.877billion,
a testimony to the renewed confidence
of our customers in Faiveley Transport.
Sales passed the billion-euro mark
for the first time in the companys history,
at 1.048 billion, and we delivered 46 million
more in free cash flow than the previous year
to reach 63.6 million. Finally, our Group
Operating Profit was right on forecast at
95.3 million. That said, we know there is still
room for improvement in our profitability.
it was a good year overall, characterized
by real improvements in project execution
and quality, a much improved relationship
with our main customers and changes
in our organization and governance.
internally, What Were the years major activities?
The main topic on the agenda was to improve
customer satisfaction; and that can only be
achieved by having a competitive offer and by
delivering on all contractual targets, on time
and on quality. We have now rebuilt our
project management processes, governance
and teams in many areas, with the result that
our customers are clearly more satisfied and
we are winning more orders. We adapted our
Faiveley Worldwide Excellence program (FWE)
so that it more closely reflects our business
model of small-batch, highly engineered
products to order. integrated in FWE, our
improved Faiveley Management System (FMS)
is supporting the harmonization of all our
processes whilst providing a strong foundation
for operational excellence.
Our new shared ERP* platform is also
a key enabler of FWE and it was rolled out
in several sites last year. As a company,
we moved from being a site-based
organization to having three global
product-line Divisions plus one Services
Division and one regional Division in China,
with full responsibility for their P&l, product
strategy, industrial footprint and customer
base. Clearly, this was a significant change.
What Were the years highlights in terms of contracts?
We have been successful in almost all
our regions and in all segments, with a high
volume of small and mid-sized orders
a positive year, a promising future
and we intend to at least maintain those
positions. We are already a market leader
in innovation, but we want to be a leader
in quality, customer satisfaction and project
execution. We also want Faiveley Transport
to be a place where teams and individuals
can develop and be part of exciting projects.
What Will be involved in deploying this plan?
in terms of delivery, the milestones will be
highly visible. So, for example, our industrial
footprint in Europe will be a lot more
balanced between east and west, thanks
to a new plant we are building in Plzen,
Czech Republic. We are also looking
to make our global footprint more competitive
over the long term. At a product level,
we will be delivering new technologies such
as the Faiveley neoflexx Disc, which is
already well-received by the market,
and ESP4C, our compact door operator.
As part of the Faiveley Worldwide Excellence
program, our new ERP* system will be
deployed at 12major sites by the end
of 2015/16, with 12sites also being certified
as FWE-compliant by the end of 2016/17.
in financial terms, our sales target
is 1.3billion for 2017/18, with a
Groupoperating profit margin of 11%-12%
and a cumulated free cash flow over 3 years
of at least 110 million.
hoW Would you describe the prospects for faiveley transport?
We have a solid, motivated team in place,
with new management and new leadership,
and an experienced team at operating
level that is fully committed to delivering.
Our plan is pragmatic, and designed
for impact. We are very positive about
our market: there is a good market
in Original Equipment and a very good one
in Services. Taken together, we believe
that everything is in place to create value.
* Enterprise Resource Planning.
which spreads our risk in terms of contract
execution and proves we can win contracts
in all geographies. We also saw repeat
orders from previous major platforms
in Western Europe and secured some major
new orders, such as the 45 million contract
in Singapore, where we have a joint venture
with our customer SMRT. We have also been
very successful in Services by being proactive
in addressing our installed base and proposing
new added-value services. Delivering parts
on time and helping customers to make
the most of their assets is key to this
the rail sector has undergone massive changes over the last decade. hoW does this affect faiveley transport?
The industry is moving from a Western
Europe-centric customer base to a global one,
where Asia and specifically China has
a major role. By far the largest car builder,
by virtually every parameter, is Chinese.
We therefore need a strategy and a footprint
that is compatible with this customer base
and it is one reason why we created a
dedicated China Division. We need to be close
to our customers, and to understand their
needs. Other changes in the industry involve
safety standards, technical requirements
and reliability levels, whi