Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Engine Forecast
Forecast horizon 2016-24
Fourth quarter 2017
Paul Lacy
Research and Analysis Associate Directorr, Americas
Powertrain Forecasting
+1 248 465 2809
paul.lacy@ihsmarkit.com
Table of Contents
,QWURGXFWLRQ )RUGFRQW
,QWURGXFWLRQ /962+&9
'5$*21
9HKLFOH2YHUYLHZ /9'2+&/
(FRQRPLFDQG9HKLFOH'HPDQG$QDO\VLV /9'2+&/
3URGXFWLRQ$QDO\VLV '85$7(&+(
*OREDO/LJKW9HKLFOH6DOHV'HPDQG /9'2+&/
5HJLRQDO/LJKWYHKLFOH6DOHV'HPDQG /9'2+&/
&RPPRGLWLHV2YHUYLHZ /9'2+&/
)XHO2YHUYLHZ /9'2+&/
(PLVVLRQV2YHUYLHZ '85$7(&
/9'2+&9
/9'2+&9
5HJLRQDO(QJLQH2YHUYLHZ /9'2+&9
(QJLQH$QDO\VLV (/(&75,&
7HFKQRORJ\,QGLFDWRUV /91RQH1RQH
/,21
&XPPLQV /9'2+&9
'HVLJQ3DUHQW6XPPDU\ 02'8/$5
3ODQW&DSDFLW\$QDO\VLV /962+&9
7HFKQRORJ\,QGLFDWRUV /962+&9
3ODWIRUP$QDO\VLV /9'2+&9
&800,16,6% /9'2+&9
/9'2+&/ /9'2+&9
/92+9/ /9'2+&9
/92+9/ /962+&9
/92+9/ /962+&9
9,.,1* /9'2+&9
/9'2+&9 /9'2+&9
/962+&9
/962+&9
)&$
1$12
'HVLJQ3DUHQW6XPPDU\
/9'2+&9
3ODQW&DSDFLW\$QDO\VLV
/9'2+&9
7HFKQRORJ\,QGLFDWRUV
3ODWIRUP$QDO\VLV
),5( *HQHUDO0RWRUV
/962+&/ 'HVLJQ3DUHQW6XPPDU\
*0( 3ODQW&DSDFLW\$QDO\VLV
/9'2+&/ 7HFKQRORJ\,QGLFDWRUV
/9'2+&/ 3ODWIRUP$QDO\VLV
/962+&/ &661*(1'(
/9'2+&/ /9'2+&/
+(0,9 /9'2+&/
/92+99 /9'2+&/
/92+99 /9'2+&/
/92+99 /9'2+&/
/92+99 /9'2+&/
2+99 '85$0$;
/92+99 /92+99
/92+99 *(1,,,,,,99
/92+99 /9'2+&9
/92+99 /92+99
/92+99 /92+99
/92+99 /92+99
3(17$67$5 /92+99
/9'2+&9 /92+99
/9'2+&9 /9'2+&9
/9'2+&9 /92+99
:25/'(1*,1(/ /92+99
/9'2+&/ /92+99
/9'2+&/ /9'2+&9
/962+&/ /92+99
+,*+)($785(9
/9'2+&9
)RUG
/9'2+&9
'HVLJQ3DUHQW6XPPDU\
/9'2+&9
3ODQW&DSDFLW\$QDO\VLV
/
7HFKQRORJ\,QGLFDWRUV
3ODWIRUP$QDO\VLV
%266
Table of Contents
*HQHUDO0RWRUVFRQW 5HQDXOW1LVVDQFRQW
/9'2+&/ 9.
/9'2+&/ /9'2+&9
/9'2+&/
/9'2+&/ 7R\RWD
6*( 'HVLJQ3DUHQW6XPPDU\
/9'2+&/ 3ODQW&DSDFLW\$QDO\VLV
/9'2+&/ 7HFKQRORJ\,QGLFDWRUV
3ODWIRUP$QDO\VLV
+RQGD *5
'HVLJQ3DUHQW6XPPDU\ /9'2+&9
3ODQW&DSDFLW\$QDO\VLV /9'2+&9
7HFKQRORJ\,QGLFDWRUV 1HZ15
3ODWIRUP$QDO\VLV /9'2+&/
- 75
/962+&9 /9'2+&/
/9'2+&9 85
/962+&9 /9'2+&9
/962+&9 /9'2+&9
/9'2+&9 =5
/962+&9 /9'2+&/
/962+&9
. 9RONVZDJHQ
/9'2+&/ 'HVLJQ3DUHQW6XPPDU\
/962+&/ 3ODQW&DSDFLW\$QDO\VLV
/9'2+&/ 7HFKQRORJ\,QGLFDWRUV
1HZ.$3 3ODWIRUP$QDO\VLV
/9'2+&/ ($
/9'2+&/ /9'2+&/
5 /9'2+&/
/962+&/ /962+&/
/9'2+&/
+\XQGDL
'HVLJQ3DUHQW6XPPDU\
3ODQW&DSDFLW\$QDO\VLV
7HFKQRORJ\,QGLFDWRUV
3ODWIRUP$QDO\VLV
*18
/9'2+&/
/9'2+&/
:25/'(1*,1(/
/9'2+&/
/9'2+&/
/9'2+&/
5HQDXOW1LVVDQ
'HVLJQ3DUHQW6XPPDU\
3ODQW&DSDFLW\$QDO\VLV
7HFKQRORJ\,QGLFDWRUV
3ODWIRUP$QDO\VLV
(/(&75,&
/91RQH1RQH
*$4*
/9'2+&/
/9'2+&/
.$
/962+&/
/9'2+&/
0*05
/9'2+&/
/9'2+&/
/9'2+&/
45
/9'2+&/
/9'2+&/
/9'2+&/
6*+5
/9'2+&/
/9'2+&/
IHS Markit | Regional Overview
www.ihs.com/automotive
automotive.ihs.com
Canada economic analysis along with solid fundamentals, lifted our industrial
production forecast again this year to 5.7%.
Forecast highlights
• The Bank of Canada increased the overnight rate to
• Second-quarter real GDP growth of 4.5% quarter on 1.00% in September. Another rate hike is anticipated
quarter (q/q) annualized was significantly stronger in January 2018, which allows a little more time for
than expected. Domestic demand is robust as the Bank of Canada to analyze the economy’s reaction
household spending is unwavering. Economic growth in a higher interest rate environment. A narrowing of
for 2017 was revised up to 3.1% and 2018 growth is the negative Canada/US interest rate gap will support
revised down to 2.2%. the loonie during the near term.
1.0 1.0%
0.0 0.0%
2016
2017
2018
2019
2020
2021
2022
2023
2024
Source: IHS Markit © 2017 IHS Markit
machinery and equipment will climb 4.7%. Expanding economy is strengthening, and excess capacity is
corporate profits should help support future being absorbed.
investment intentions.
• Looking ahead, given the Canadian economy will
• Although net exports contributed to real GDP growth continue to perform well, we expect the next rate hike
in the second quarter, robust domestic demand is to come in January 2018, and the overnight interest
supporting our trade outlook where real import rate will hit 1.25%, which would be the highest
growth will surpass real export growth. Higher import rate since January 2009. The bank will continue to
price pressures resulted in Canada’s merchandise gradually raise interest rates in 2018 and 2019 when
and current-account trade deficits to widen. The the overnight interest rate will reach 3.0% by the end
slight appreciation in the Canadian dollar will also of 2019.
dampen Canada’s price competitiveness, but not to
a significant degree. A solid US economic expansion • Inflation has started to slowly come up from the
should boost exports in the next few years. bottom of the Bank of Canada’s target range now that
food prices have stopped falling. The recent hurricane-
• Natural resource production is the biggest addition induced run-up in gasoline prices will add to price
to industrial production growth this year. As energy pressures in the near term. However, the relatively
and metal prices strengthen, the risks are tilted low Canadian dollar’s positive impact on prices is
towards the upside in terms of expanded capacity and diminishing. We project the inflation rate will average
output growth. 1.6% in 2017 and slightly accelerate to 1.9% in 2018.
As the Bank of Canada continues to tighten • The Canadian dollar is gaining support from higher
monetary policy, the Canadian dollar gains support. interest rates in Canada. We forecast the Canadian
dollar will remain relatively stable by the end of the
• After releasing the second-quarter real GDP, the year at CAD1.24/USD1.00 in the fourth quarter. By
Bank of Canada raised the overnight interest rate mid-2018, the loonie will end the third quarter at
from 0.75% to 1.00% as expected. The ongoing reason CAD1.27/USD1.00. By mid-2019, the loonie will end
supporting the second rate hike is that the Canadian the third quarter at CAD1.25/USD1.00.
3.0 6.0
5.0
Y/Y % Change
Y/Y % Change
2.5
4.0
2.0
3.0
1.5 2.0
1.0 1.0
0.0
0.5
-1.0
0.0 -2.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
1.30
1.48
2.0
1.25
Y/Y % Change
1.46
1.20
Can$/US$
1.5
Can$/Euro
1.15 1.44
1.10 1.0
1.42
1.05
0.5
1.40
1.00
Canada
Spain
Czech labor
Republic
labor labor Canada interest
7.1 1.8 4.0
7.0 1.6 3.5
6.9 1.4 3.0
6.8
Percentage
1.2
Y/Y % Change
6.7 2.5
Percentage
1.0
6.6 2.0
0.8
6.5 1.5
0.6
6.4
1.0
6.3 0.4
• US authorities have shown a less aggressive stance • Our September forecast does not yet incorporate
regarding the upcoming North American Free Trade possible impacts of recent earthquakes.
2.0 2.0%
1.5 1.5%
1.0 1.0%
0.5 0.5%
0.0 0.0%
2016
2017
2018
2019
2020
2021
2022
2023
2024
Source: IHS Markit © 2017 IHS Markit
• Trade negotiations between Mexico and the United • Earlier this year, several factors have contributed
States started on 16 August, but IHS Markit does not to the faster pace of price increases, including the
expect any material changes in regulations/laws pass-through of the depreciation of the Mexican peso,
before the first quarter of 2019; in our forecast, we higher prices of agricultural products, the increase
anticipate the automotive industry will continue in minimum wages, and higher gasoline prices. The
to push growth in the remainder of 2017 and in impact of these shocks will progressively fade away,
early 2018. and inflation in Mexico will return to the targeted
band in the second half of 2018.
The central bank stops tightening cycle, despite
high inflation. There are no further rate cuts on • As of 26 September, the US dollar was selling for
the horizon. MXN17.94 and has fluctuated in the 17.50–18.00
range for the past three months. This was driven
• Annual inflation was 6.7% in August, the highest partly by the central bank’s intervention, which
rate in almost 16 years. Monthly inflation amounted started a foreign exchange hedge program in March
to 0.5% in August, driven by higher prices in the 2017, offering insurance against foreign exchange
all-important food category. Prices of agricultural risks that settles in the local currency, so the bank
products went up 4.5%. will not use international reserves. The peso also
appreciated because of a less aggressive stance by US
• In August, core inflation—excludes items with volatile trade negotiators. We assess that at current levels—
prices such as some energy-related and agricultural MXN17.00–18.00/USD1.00—the Mexican peso may
products items—amounted to 0.25%. In the 12-month find a comfortable zone. However, we foresee lots of
period ended in August, core inflation amounted to volatility once the actual measures/trade restrictions
5.0%, while noncore inflation was 12.0%. While there of the Trump administration become known. In this
is a big difference between the two measures, both of context, the exchange rate may again surpass the
them are well above the central bank’s target of 3% +/- MXN19/USD1 mark in the last quarter of 2017.
1 percentage point.
2.5 10.0
Y/Y % Change
Y/Y % Change
2.0 8.0
1.5 6.0
1.0 4.0
0.5 2.0
0.0 0.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
30.0 6.0
20.0
Y/Y % Change
25.0 5.0
15.0
Pesos/Euro
Pesos/US$
20.0 4.0
10.0 2.0
5.0
5.0 1.0
Mexicolabor
Spain
Czech Republic
labor labor Mexico interest
6.0 3.0 8.0
7.0
5.0 2.5
6.0
Percentage
4.0 2.0
5.0
Y/Y % Change
Percentage
3.0
2.0 1.0
2.0
1.0 0.5
1.0
United States economic analysis • Based on annual averages, we forecast real GDP
growth of 2.2% this year, 2.4% in 2018, and 2.2%
Forecast highlights in both 2019 and 2020. The slowdown reflects the
economy’s proximity to potential output as the
• We estimate that hurricanes Harvey and Irma will decade ends.
subtract 1.2 percentage points from third-quarter
growth and boost fourth-quarter growth by 0.9 • Despite short-term disruptions from hurricanes,
percentage point. Given our third-quarter estimate consumer spending will remain an engine of US
of 2.4% real GDP growth, this would put the no- economic growth, supported by momentum for
hurricane counterfactual growth rate at 3.6%, employment, real disposable income, and household
supporting our view that the US economy is benefiting asset values—even in the absence of tax cuts.
from solid pre-hurricane momentum.
25.0 20.0%
15.0
10.0%
10.0
5.0
0.0 0.0%
2016
2017
2018
2019
2020
2021
2022
2023
2024
Source: IHS Markit © 2017 IHS Markit
• Real GDP growth is projected to pick up from an • After declines in the second and third quarters,
estimated 2.4% annual rate in the third quarter to residential construction will stabilize in late 2017 and
2.9% in the fourth quarter before settling back to resume growth in early 2018. Increasing demand from
2.2% in the first quarter of 2018. We estimate that young adults, limited supplies of homes for sale, and
recovery from hurricanes Harvey and Irma will boost rising prices should lead to more construction activity,
fourth-quarter growth by 0.9 percentage point. The along with repair and reconstruction of storm-
potential for storms to distort near-term data was damaged homes in Texas and Florida.
seen in the September employment report, which
showed establishment employment falling 33,000. We • After slowing in the third quarter—when commercial
estimate that hurricane impacts reduced this number and manufacturing building construction retreated—
by about 250,000 and a sharp reversal of weather- real business fixed investment growth is expected to
related effects will push the gain in establishment get back on track in the fourth quarter, rising at a 5.0%
employment up to nearly 400,000 in October. annual rate. Expanding global markets, low financing
costs, and an improving regulatory climate will
• Consumer spending growth will remain the principal sustain overall growth. Real government purchases
driving force in the US economic expansion. will continue to stagnate, with modest growth in state
Household finances continue to improve, supported and local spending offset by cuts in federal purchases.
by gains in employment, real incomes, stock prices, Both exports and imports are projected to post real
and home values. Real consumption is projected growth rates around the 4–6% range in late 2017
to increase at annual rates of 3.0% in the fourth and early 2018, reflecting healthy expansions in the
quarter and 2.4% in the first quarter of 2018. Removal domestic and global economies.
of income tax cuts from the baseline forecast
Consumer spending, income, and confidence. good, but not great, year. Although there will be some
spending payback from hurricane-related losses, it
• The third estimate of second-quarter real consumer will be skewed more toward necessary home repairs.
spending growth maintained the second estimate’s We expect overall holiday sales to grow at 3.5% y/y,
3.3% annual rate; consumption of services was slightly slightly weaker than last year. We define holiday retail
stronger, but was offset by weaker spending on durable sales as not-seasonally-adjusted retail sales excluding
and nondurable goods. Our forecast for third-quarter auto dealerships, gasoline stations, and restaurants for
real spending growth has been marked down 0.6 November and December. Online sales are expected
percentage point to 1.9%, thanks in part to the effects to rise 12.1% y/y, the fourth straight year of double-
of hurricanes Harvey and Irma. As the disrupted digit growth.
regions recover, we expect a rebound from deferred
consumption and the replacement of damaged goods; • Consumer spending continues to be supported by
our fourth-quarter forecast of real consumer spending solid pre-hurricane momentum for employment, real
growth has been bumped up 0.2 percentage point to a disposable income, and household asset values. Our
3.0% rate. US forecast no longer assumes federal personal income
and corporate tax cuts. As a result, expected real
• Recent news on the consumer markets front has consumer spending growth has been reduced from
been mixed, with noticeable hurricane impacts on 2.8% to 2.5% in 2018, and from 2.6% to 2.3%in 2019;
gasoline prices, light-vehicle unit sales, and restaurant real disposable income growth has been reduced from
employment. Holiday retail sales are on track to have a 3.5% to 2.5% in 2018, and from 3.2% to 3.0% in 2019.
3.0 5.0
Y/Y % Change
Y/Y % Change
2.5 4.0
2.0 3.0
1.5 2.0
1.0 1.0
0.5 0.0
0.0 -1.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
1.30
120.0 2.5
1.25
Y/Y % Change
110.0 2.0
1.20
US$/Euro
US$/Yen
1.10
90.0 1.0
1.05
80.0 0.5
1.00
Unitedlabor
Spain
Czech Republic
States labor
labor United States interest
7.0 2.0 4.5
1.8 4.0
6.0
1.6 3.5
5.0 1.4
Percentage
3.0
1.2
Y/Y % Change
Percentage
4.0 2.5
1.0
3.0 2.0
0.8
1.5
2.0 0.6
0.4 1.0
1.0
0.2 0.5
0.0 0.0 0.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
North America production analysis for vehicle production. GM’s Ingersoll plant produces the
Chevrolet Equinox and previously produced the GMC
Short-term production analysis Terrain that has since been resourced to Mexico and a
point of union contention.
Production in North America continues to be under
pressure from slowing light vehicle demand as For more than 10 years, the Ingersoll plant was
automakers struggle to balance sales and financial operating on three shifts, and for the past five years
targets that is resulting in a rebalancing of vehicle has been operating continuous weekend overtime to
production to improve inventory levels and align with meet demand for the strong-selling CUVs. With this
demand while balancing incentives and fleet activities most recent redesign of the Equinox and Terrain, GM
for optimal results. Weaker production results couple expanded production by adding Equinox production
with reduced scheduling results in the 2017 outlook at its Ramos Arizpe and San Luis Potosi plants in
being reduced by 87,000 units to 17.19 million units. Mexico with the Terrain being completely resourced
Production is revised higher in 2018 on a stronger to San Luis Potosi. Global platforms and flexible
outlook for General Motors (GM), increasing 114,400 manufacturing allowed GM to make the moves while
units, as its production scheduling is justified by a also improving export planning for the models to
strong presence, notably on the truck side, in hurricane- meet strong global demand for CUVs. While the strike
ravaged markets in Texas and Florida. Production is then has been settled, Canada still faces many hurdles to
expected to decline in 2019 by 141,500 units to total maintain let alone improve its presence in the global
17.42 million units on the retiming of several all-new automotive community.
vehicles to launch that year.
Following strong success coming out of the Great
Production at GM’s Ingersoll, Canada, plant was idled Recession, Hyundai made significant gains in the US
starting 17 September owing to a strike by Unifor, market with highly stylized vehicle designs with a
Canada’s largest private-sector union that resulted in strong value. As gas prices collapsed in 2015, Hyundai
an estimated loss of more than 18,000 units during the was left unprepared for the rapid shift to CUVs. With
course of the four-week long strike with that ended a North America production footprint skewed toward
on 16 October. The strike was the first at a Canadian cars, Hyundai has since resorted to increasing incentives
auto assembly plant in 21 years and highlights the and fleets sales that only hurt resale values and
long-term challenges Canada has in retaining an auto profitability rather than reducing vehicle output.
manufacturing base amid tougher global competition
18.0
16.0
14.0
Production (Millions)
12.0
10.0
8.0
6.0
4.0
2.0
15.3 15.1 12.6 8.6 11.9 13.1 15.4 16.2 17.0 17.5 17.8 17.2 17.5 17.4
0.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Amid tumultuous leadership changes at its US a modest expansion at Montgomery a new possibility.
operations, Hyundai is finally acknowledging these With weaker demand for cars, Hyundai could resource
detrimental practices and is planning on reducing all Santa Few production into the plant while also
Elantra and Sonata production at its Montgomery, having enough capacity to produce the all-new
Alabama, plant. Conversely, sister company Kia has been Santa Cruz pickup truck. While the forecast reflects
far better at managing the decline in car demand and localization of the Hyundai Tucson as part of the new
has been reviewing product changes at its West Point, Montgomery #2 plant, it is Kia that is reviewing adding
Georgia, plant to produce more CUVs. An expansion of Sportage production at its West Point plant in 2019
Hyundai’s Montgomery plant to produce CUVs remains following the launch of the all-new full-size Telluride
tentative with little to no movement since discussions CUV as Kia move more quickly to shift their production
of an expansion emerged several years ago. mix to CUVs.
Long-term production analysis would complement BEV production at its Orion plant
and leverage the nearby Brownstown Battery plant.
Amid weakening demand in the United States and The Detroit-Hamtramck plant has capacity to produce
the accelerated shift from cars to CUVs by consumers, 230,000 units and is among the most flexible GM plants
automakers are working to adjust their North American that produces four vehicles across three platforms while
production footprints toward increasing utility and incorporating alternative propulsion installations.
truck production. While automakers reduce shifts and
add downtime in the short term, many automakers The Lordstown plant needs new or addition product to
will be forced to re-evaluate their production footprint justify keeping the plant operating and has capacity to
and capacity. produce 300,000 units. Shifting the Chevrolet Cruze
out of the plant and installing the Equinox from Canada
General Motors (GM) stands out with capacity could be one long-term solution with a more aggressive
utilization at its Detroit-Hamtramck, Lansing move being retooling the plant for production of GM’s
Grand River, and Lordstown plants falling far below next-generation midsize trucks; the Chevrolet Colorado
sustainable, let alone profitable, levels. A common and GMC Canyon along with an all-new SUV. The
theme with each plant is that they all produce cars that Colorado and Canyon are produced at Wentzville, where
have quickly fallen out of favor with consumers. Amid the plant production is far above the capabilities the
the Unifor-GM strike in Canada, we imagined a scenario plant was designed to handle. With upward of 300,000
where GM could shift production of the Chevrolet units needed to support production of three vehicles,
Equinox from the Ingersoll, Ontario, plant to Detroit- GM effectively need a new plant.
Hamtramck or Lordstown. This scenario may still
play out in the long term as GM reviews its long-term Ford is already undertaking such a scenario with
capacity positioning in North America. the retooling of the Michigan Assembly plant from
unibody production of the Ford Focus and C-Max to
While the forecast reflects GM having to close the body-on-frame build of the Ranger and Bronco trucks.
Detroit-Hamtramck plant, the facility could come Ford initially planned to resource Focus production to
into play as part of a shifting of production such as the Mexico, but has since decided to shift sourcing to China
Equinox or as part of its broader battery electric vehicle where it has excess capacity. The move will also bolster
(BEV) and hydrogen fuel cell electric vehicle (HFCEV) Ford’s profitability by shifting the lower margin, lower
strategy where it plans to launch at least 20 new all- demand Focus to the margin rich trucks. GM Lordstown
electric vehicles by 2023. The Detroit-Hamtramck is plant has a history of producing unibody and body-on-
the only remaining GM facility within the Detroit city frame vehicles, and such flexibility would allow GM to
limits, and if repurposed for BEV and HFCEV production
20 20%
18
16 3.5 15%
3.2 4.2 4.3
4.2
14 2.9
2.4
Y-O-Y % Change
12 1.9 10%
2.5
10
8 5%
12.0 11.2
6 11.4 11.8 11.5
10.1
4 0%
0 -5%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mexico Canada US Change
Source: IHS Markit © 2017 IHS Markit
shift production between varying vehicle types more strategy could come into play at the plant that could
quickly based on market demand. produce a range of new Cadillac BEVs from cars to CUVs.
As part of the electrification strategy, some existing
GM’s Lansing Grand River plant is home to today’s GM nameplates will be leveraged with one more
Cadillac ATS and CTS along with the Chevrolet Camaro radical scenario involving the next-generation Camaro
and has capacity to produce 220,000 units. As a rear- becoming a dedicated BEV.
wheel-drive, performance homeroom, the plant
unfortunately has a diminishing place in GM’s footprint. Change is occurring with the North American capacity
Car demand, while declining, is not completely footprint, with the shift in vehicle mix between cars
disappearing and core luxury sedans remain necessary. and trucks following the investment super-cycle in new
The Lansing Grand River is expected to remain a capacity in North America that has slowed sharply in
Cadillac homeroom and produce the CT4 and CT5 recent years.
replacements for the ATS and CTS. GM’s electrification
22.3
21.5
20.6
33.5
30.7
20.7
20.3 20.5 28.3
2024
2020
2017
2017
2020
2024
2024
2020
2017
6.9 6.4 6.3
2024
2020
2017
5.9 6.6
4.7
2024
2020
2017
6.2 12.7
5.3
4.4 10.2
8.5
2024
2020
2017
2024
2020
2017
Note: Volume in millions
© 2017 IHS Markit. All rights reserved. Provided “as is,” without any warranty. This map is not to be reproduced or disseminated and is not to be used nor cited as evidence in
connection with any territorial claim. IHS is impartial and not an authority on international boundaries which might be subject to unresolved claims by multiple jurisdictions.
Source: IHS Markit © 2017 IHS Markit
Global light vehicle sales demand largely reflecting policy concerns for the Trump
administration, hurricane replacement demand likely
Topline volume analysis provides some respite for the coming few months.
The halo slipped for Western Europe in September,
• World real GDP growth is expected to pick up from with demand down 2.5%, probably reflecting some
2.5% in 2016 to 3.1% in 2017 and 3.2% in 2018. In wait-and-see reactions to new German and UK diesel
2018, downward revisions to outlooks for the United scrappage programs.
States and India are only partially offset by an upward
revision to the Eurozone forecast. In September, • Total 2017 global light vehicle sales are expected to
the JPMorgan Global All-Industry Output Index post 94.1 million units, up 2.0% compared with 2016, a
(compiled by IHS Markit) held steady at 54.0, signaling mild upgrade to our forecast and a further new record
further solid growth in manufacturing and services. for global auto demand. China continues to provide
Hurricanes Harvey and Irma disrupted US economic the heavy lifting for global sales growth, with our 2017
activity in late August and September, but rebuilding Chinese forecast set at 27.85 million units, up 1.0%.
activity will boost real GDP growth in the fourth We believe China will experience some lingering tax
quarter. The price of Dated Brent is projected to payback effects for 2018, but demand will still grow
average USD55 per barrel in 2017, USD52 per barrel in to almost 28 million units, up 0.5%. For the United
2018, and USD58 per barrel in 2019. States, demand is falling back but should feel some
replacement impact from Hurricanes Harvey and
• Recently, almost all forecast revisions have been Irma—2017 demand is set at 17.08 million units, down
upward—a pleasant change from the past few years— 2.7%. Western Europe continues to recover, especially
and 2017 appears on track for record auto sales. For helped by an ongoing release of pent-up demand, and
September 2017, global demand posted 8.49 million should close out 2017 with 2.8% growth. We have seen
units, up 3.3%, despite one fewer selling day in some a scramble for OEM diesel incentives in key markets,
regions. Chinese demand is holding up better than especially Germany and the United Kingdom,
expected, and 2017 should be another growth year which should generate mild pulled-forward demand.
for the world’s number-one light vehicle market. Russia and Brazil are both “turning the corner” in
While US auto demand is probably losing momentum,
2017, although we remain cautious on the path to Starting in June 2017, IHS Markit standard auto
full recovery. market forecasts and methodology now reflect new
mobility considerations for the United States, China,
• Until the end of the forecast horizon in 2022, global Europe, and India. We define the overall changes to
light vehicle sales are expected to increase at a the forecasts as nonlinear, with substantial variation
compound annual growth rate of 2.0% and approach across markets. Forecast impacts are generally
104 million units. Key markets in Greater China quite small in the short term but increase over the
and South Asia are expected to outperform this outbound forecast—especially into the very long term
market average, whereas ongoing recovery in parts of beyond 2030.
Europe and North America will help provide welcome
support to volume in the more mature Triad markets.
Global
Region Market 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Europe
Central Europe 1,167,702 1,348,217 1,512,591 1,588,294 1,610,109 1,634,091 1,660,079 1,700,984 1,735,162 1,771,934
East Europe 2,826,031 2,611,945 2,762,852 3,132,365 3,549,881 3,839,623 4,005,135 4,172,003 4,459,195 4,611,152
West Europe 14,900,400 15,862,372 16,313,917 16,439,459 16,286,717 16,066,452 15,914,164 15,909,462 15,910,933 15,908,824
Europe Total 18,894,133 19,822,534 20,589,360 21,160,118 21,446,707 21,540,166 21,579,378 21,782,449 22,105,290 22,291,910
Greater China
China 24,500,046 27,604,031 27,896,225 28,028,807 29,160,053 30,226,792 30,957,992 31,718,415 32,373,770 32,969,422
Taiwan 409,793 428,445 431,563 433,359 441,035 456,972 456,836 447,154 479,421 484,989
Greater China Total 24,909,839 28,032,476 28,327,788 28,462,166 29,601,088 30,683,764 31,414,828 32,165,569 32,853,191 33,454,411
Japan/Korea
Japan 4,945,069 4,848,274 5,142,439 5,014,604 4,855,869 4,648,728 4,629,596 4,594,092 4,565,498 4,527,769
South Korea 1,804,484 1,785,926 1,771,635 1,748,727 1,762,452 1,760,056 1,742,285 1,726,819 1,745,108 1,758,641
Japan/Korea Total 6,749,553 6,634,200 6,914,074 6,763,331 6,618,321 6,408,784 6,371,881 6,320,911 6,310,606 6,286,410
Middle East/Africa
Africa 1,730,938 1,393,453 1,302,531 1,443,063 1,650,539 1,845,686 2,018,127 2,136,831 2,182,471 2,233,934
Middle East 2,881,357 3,058,083 3,065,942 3,219,845 3,420,318 3,664,633 3,809,380 3,900,567 3,902,911 3,962,026
Rest of World 335,052 320,125 335,013 337,603 341,072 344,927 349,410 353,953 358,555 363,214
Middle East/Africa Total 4,947,347 4,771,661 4,703,486 5,000,511 5,411,929 5,855,246 6,176,917 6,391,351 6,443,937 6,559,174
North America
NAFTA 20,724,802 21,084,294 20,678,385 20,514,238 20,413,029 20,284,018 20,203,425 20,081,153 20,389,035 20,509,945
North America Total 20,724,802 21,084,294 20,678,385 20,514,238 20,413,029 20,284,018 20,203,425 20,081,153 20,389,035 20,509,945
South America
Andean 816,970 805,133 880,085 924,201 965,752 1,008,993 1,053,139 1,097,791 1,146,593 1,200,713
Central America 387,970 378,714 389,094 409,409 425,337 450,489 460,841 471,610 486,792 500,006
Mercosul 3,186,568 2,729,713 3,108,975 3,384,031 3,623,471 3,840,724 4,018,169 4,199,945 4,381,471 4,525,967
South America Total 4,391,508 3,913,560 4,378,154 4,717,641 5,014,560 5,300,206 5,532,149 5,769,346 6,014,856 6,226,686
South Asia
ASEAN 2,968,711 3,040,024 3,213,415 3,451,807 3,614,471 3,767,183 3,911,274 4,065,855 4,221,317 4,376,464
Indian Subcontinent 3,377,998 3,617,102 3,949,576 4,354,683 4,761,790 5,138,795 5,535,514 6,001,912 6,509,013 7,032,403
Oceania 1,269,021 1,304,134 1,319,221 1,287,387 1,311,922 1,311,828 1,338,137 1,320,330 1,294,541 1,309,758
South Asia Total 7,615,730 7,961,260 8,482,212 9,093,877 9,688,183 10,217,806 10,784,925 11,388,097 12,024,871 12,718,625
Total Global Volume 88,232,912 92,219,985 94,073,459 95,711,882 98,193,817 100,289,990 102,063,503 103,898,876 106,141,786 108,047,161
Total Change % 2.0% 4.5% 2.0% 1.7% 2.6% 2.1% 1.8% 1.8% 2.2% 1.8%
Source: IHS Markit © 2017 IHS Markit
forecast period. Logistics companies, suppliers, and 2024 2.4% 95.6% 1.2% 0.0% 0.8% 0.0% 0.0%
competitors need to monitor trends, developments, 2011 4.2% 0.0% 93.8% 0.4% 0.5% 0.0% 1.1%
and each other. The global production footprint will Japan/Korea (JK) 2017 6.1% 0.0% 91.8% 0.3% 1.2% 0.0% 0.5%
determine competitive advantages, especially in volume 2024 7.5% 0.0% 90.2% 0.4% 1.6% 0.0% 0.3%
Sales Region
2011 10.6% 1.2% 19.2% 39.9% 4.5% 0.2% 7.6%
segments as winners and losers are decided. In times
Middle East/ Africa (MEA) 2017 11.4% 2.6% 18.8% 37.6% 4.3% 0.0% 8.0%
when quality and safety standards are nearly on a par
2024 12.0% 3.1% 16.3% 37.0% 6.2% 0.0% 7.5%
within the core competition, the margin take per
2011 6.3% 0.0% 16.1% 0.4% 76.6% 0.4% 0.2%
vehicle becomes a key factor to success. High quality out
North America (NA) 2017 7.2% 0.3% 13.6% 0.2% 76.5% 0.8% 1.4%
of low-cost markets, in particular for the volume brands, 2024 8.7% 2.1% 12.2% 0.0% 74.3% 1.0% 1.7%
will be an important aspect to achieving success in this 2011 2.8% 2.4% 10.0% 0.0% 6.7% 72.2% 1.6%
increasingly competitive environment. South America (SA) 2017 3.4% 2.7% 5.5% 0.1% 6.8% 70.8% 2.8%
2024 3.2% 2.4% 4.9% 0.2% 6.7% 72.8% 2.9%
The global automotive production footprint can also 2011 3.3% 0.2% 8.1% 0.3% 0.5% 0.1% 87.5%
expose vulnerabilities. The 2011 crises in Japan and South Asia (SEA) 2017 3.7% 0.2% 8.6% 0.4% 0.8% 0.1% 86.3%
Thailand reflect just how interconnected the auto 2024 2.8% 0.2% 5.5% 0.3% 1.4% 0.1% 89.7%
Source: IHS Markit © 2017 IHS Markit
industry has become, especially in the area of engine,
transmission, and specialized component sourcing.
Although we continue to see short-term shifts in fully
assembled vehicle transport, these kind of events In a similar vein, political events have the power to
continue to help shape investments in global logistics. quickly force the evolution of new and revised business
Multiplant sourcing for key margin-driving vehicles plans. Mexico was fast developing as a go-to destination
and their components will likely be the consequence. of future production activities and was set to emerge
More recent concerns about the shape and future format as an important regional (and even global) hub for
for existing trading blocs, notably the North American production. The emergence of US president Donald
Free Trade Agreement (NAFTA) and the European Trump has seemingly thwarted long-planned auto
Union, only add to the complexity of forecasting future investment into Mexico, with Ford, General Motors
production patterns. (GM), Fiat Chrysler Automobiles (FCA), and other OEMs
swiftly announcing North American auto investments
Several factors determine production sourcing for structured around the United States rather than
vehicles sold within a region, including currency shifts, Mexico. As always, the devil is in the details, with some
the competitiveness of domestic capacity, the formation of these initiatives not really “new news,” whereas
of high-volume scale within a growing region, and the others include already-announced investment plans
reduction or escalation of tariff and nontariff barriers and dollars. US trade policy decisions are still a work in
that shield a country or region from global market progress, and we will continue to update our forecasts as
forces. Regions like Europe will see only minor growth the fog lifts.
in sourcing outside the region. However, we see ongoing
shifts within Europe, especially a shift of sourcing from Import activities from the Japan/Korea region will grow
Western Europe to lower-cost Central and Eastern significantly through the forecast period, showing the
Europe. Brexit and the expected trade negotiations largest shift outside of Europe, with the bulk of this
have the potential to significantly hurt production, activity benefiting the Hyundai and Kia brands (unless
investment, and interregional vehicle flows—we plan militant Korean labor unions derail current plans). GM’s
to adapt our forecasts accordingly as Brexit-related announcement concerning the cessation of Chevrolet
decisions emerge. June 2017 saw the beginnings of the sales in much of Europe by the end of 2016 has already
UK-EU negotiations, but it is early, and, so far, there are trimmed GM’s Korean activities and could contribute to
virtually no signposts to help guide the future UK-EU pressure for Korean plant closures. The recent PSA-Opel
trading relationship. deal and other mega-deals such as Nissan-Mitsubishi
and Toyota-Suzuki similarly create further uncertainty volume for 2017 is projected to moderate to 20.7
for sourcing arrangements. South Asia will continue million units owing to a year-on-year (y/y) volume
to build its position as the export hub of the future. In declines in the United States and Mexico.
particular, Japanese OEMs will continue to investigate
future activities in the Association of Southeast Asian • IHS Markit projects that the weather events of late
Nations (ASEAN), especially in Thailand and Indonesia, August and early September in the United States will
and India will increase its significance as a low-cost affect demand levels in the short term. September
sourcing base in the next few years. sales results reflected an immediate impact, as the
selling rate for the month was more than 18 million
Time will tell whether large-scale vehicle exports from units and the replacement of vehicles in the affected
China will emerge as a major competitive force. To date, areas should help boost demand levels in fourth-
progress has been limited, with most foreign OEMs quarter 2017. Overall, IHS Markit projects North
preferring to use Chinese-installed capacity to first American light vehicle sales to sink slightly in 2017 to
serve the burgeoning Chinese market. In the future, 20.7 million units, followed by 20.5 million units in
this may change, since OEMs may shift to exporting 2018 and 20.4 million units in 2019.
models solely sourced in Chinese plants. For Chinese
OEMs, exports represent an area of significant interest, • Through September 2017, regional growth was
especially as a volume release valve if the Chinese spurred by the continuing demand momentum in
market begins to cool in the upcoming years. For now, Canada. Canadian demand led the region in growth
much of the initial export flow was to markets in South during the period, up 5.5%, while light vehicle sales
Asia (especially Vietnam), South America, the Middle in Mexico and the United States are down 1.8%. In
East (especially Iran), and Africa (especially Algeria). To September 2017, regional demand was up 5.0% owing
make serious inroads to North America, Europe, and to the bounce back of sales in the United States after
other more mature markets, Chinese OEMs need to Hurricanes Harvey and Irma hurt August demand
raise their game, including considering localized vehicle levels. Continued momentum in Canada, up 7.7% for
build. Indications are they are up for this challenge, the month, also contributed to the positive demand
especially with nods to changes to future auto company levels in September. Meanwhile, auto sales in Mexico
ownership rules from the Chinese Third Plenum. The dropped 11.5%, the fifth time in the past six months
creation of joint-venture brands between foreign and that demand has decline in y/y comparisons.
domestic Chinese companies has so far proved lackluster
in terms of global market impact. With slowing growth • In the United States, YTD 2017 volume was down
momentum in China, we are already seeing some signs 1.8%, or approximately 240,000 units, compared with
of interest in overseas production investment from key 2016. Sales in the first quarter paced at a seasonally
Chinese OEMs, notably in India and Iran. adjusted annual rate (SAAR) of 17.1 million units, but
from April through July, the sales pace averaged a more
moderate 16.7 million units. August and September
Regional analysis results reflected the weather related impacts, as
• Regional sales in North America improved August sales suffered from the effects of Hurricane
approximately 1.8%, or more than 380,000 units, Harvey, while September demand jumped back
in 2016, pushing regional sales to 21.1 million units. immediately. Through September 2017, the SAAR has
Regional sales throughout the year were supported averaged 17.0 million units, below the 17.4-million-
by Mexico’s breakneck growth pace, and a strong unit pace of the first three quarters of 2016. Based off
December volume push in the United States helped hurricane replacement demand, sustained incentive
lift 2016 sales above the year-earlier level. As we levels, and automaker need to correct inventory levels
began 2017, we expected regional light demand to be by year-end, we expect a continued rebound from
more moderate than it has realized since the recovery the sales pace in the first half of the year in the final
from the Great Recession. Looking over the year-to- quarter of 2017. Although overall light vehicle demand
date (YTD) results through September, light vehicle does seem to be stuck in neutral, and our forecast
demand in North America has been hurt by the for full-year 2017 volume is 17.1 million units with
decline in sales in the United States and Mexico, while expectations for 2018 lowered to 16.9 million units.
sales in Canada have sustained modest momentum.
We continue to expect the emerging trend of strong • Light vehicle demand in Canada set a volume record
light truck demand to be sustained within the in 2016, with sales of 1.93 million units for the year.
marketplace, but overall regional light vehicle demand The market momentum has been sustained in 2017,
with volume up 5.5% to 1.59 million units through remained relatively steady in 2017, y/y growth levels
September 2017; the light truck market continues have moderated from the strong results of the past
to motivate demand gains. Following a weak April three years, punctuated by a 2.6% volume decline in
result, Canadian light vehicle sales have grown for the second quarter, a 7.3% decline in July, and a 6.5%
five consecutive months as September demand was drop in August. There are some concerns the growing
up 7.7%. The auto demand results continue to reflect uncertainties surrounding the US administration’s
the dynamic trend of light trucks that has been the policies and their effects on Mexico are taking a toll
most prevalent within the region, with light truck on consumers, but the threat of Mexican auto demand
sales up 13.0% for the month, while passenger car sales falling precipitously is slim, especially if the flow of
were down 2.5%. As long as there is not a hard landing used imported cars continues to moderate. We expect
from the housing and credit markets, we anticipate volume of 1.58 million units for 2017, with sales
light vehicle demand momentum should be sustained projected to rise to 1.80 million units by 2024.
in 2017; new registrations are projected to reach 2.03
million units and demand in 2018 is expected to • Overall, light vehicle sales in North America have
remain in line with the current sales levels. grown steadily since 2009; recovering more than 8.4
million units through 2016 as regional growth reached
• Amid a growing economy, rising consumer confidence, 1.8% in 2016 on volume of 21.1 million units. Regional
improved credit availability, and a reduced flow of used light vehicle demand volume for 2017 is projected to
imported vehicles, Mexican vehicle sales in 2016 grew moderate to 20.6 million units, since we expect a y/y
considerably, up 18.6%. Although the pace of sales has volume declines in the United States and Mexico.
North America
Sales by Country
Market Country 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 CAGR
NAFTA
Canada 1,899,325 1,932,055 2,025,176 2,026,131 1,998,140 1,965,774 1,971,602 1,977,389 1,986,565 2,001,771 0%
Mexico 1,351,812 1,601,208 1,575,959 1,615,999 1,650,015 1,679,886 1,710,018 1,740,400 1,770,651 1,800,580 2%
United States 17,473,665 17,551,031 17,077,250 16,872,108 16,764,874 16,638,358 16,521,805 16,363,364 16,631,819 16,707,594 0%
NAFTA Total 20,724,802 21,084,294 20,678,385 20,514,238 20,413,029 20,284,018 20,203,425 20,081,153 20,389,035 20,509,945 0%
Change % 6.4% 1.7% -1.9% -0.8% -0.5% -0.6% -0.4% -0.6% 1.5% 0.6%
Source: IHS Markit © 2017 IHS Markit
Commodities overview • Our Eurozone real GDP growth forecast for 2017
remains at 2.2%. The medium-term assessment is
• World real GDP growth is expected to pick up from healthy, but calls for a gentle slowdown in growth to
2.5% in 2016 to 3.1% this year and 3.2% in 2018. In 2.0% in 2018 (revised up 0.1 percentage point) and 1.7%
2018, downward revisions to outlooks for the United in 2019 (unchanged).
States and India are offset by upward revisions to the
Eurozone and several emerging market forecasts. • Real GDP growth in China is projected to increase
6.8% this year, 6.5% in 2018, and 6.2% in 2019. This
• US real GDP growth is projected to be 2.2% this forecast is unchanged. China’s economy still has major
year, 2.4% in 2018, and 2.2% in 2019. Our US forecast unresolved structural problems that could drag down
no longer assumes federal tax cuts or additional economic growth. Even during the current period of
infrastructure spending. Nor does it include any relatively stable growth, latent downward pressure on
significant changes to healthcare or trade policies, the renminbi persists, with capital outflows exceeding
(i.e., all fiscal policy assumptions reflect current law). inflows. Pursuing a weak renminbi policy to stimulate
This change cuts 0.4 percentage point from real GDP exports would thus run the risk of raising depreciation
growth in 2018. An alternative simulation will be expectations and causing capital exodus—a replay of
produced to assess proposed personal and corporate 2015 and 2016.
tax reforms.
&RPPRGLWLHV2YHUYLHZ
7KHILUVWFRPSRQHQWRISULFHLVWKHEDVLFIXHOSULFHLWVHOIZKLFKLQFOXGHVWKH Base Fuel Price Tax
LQWHUQDWLRQDOVSRWFUXGHRLOSULFHIUHLJKWFRVWVLQVXUDQFHFRVWVRFHDQORVV
DOORZDQFHVHYDSRUDWLRQRUOHDNDJHIURPWKHYHVVHOILQDQFLQJZKDUIDJHDQG
VWRUDJHFRVWV7KHEDVLFIXHOSULFHW\SLFDOO\DFFRXQWVIRURIWKHSULFHDWWKH
SXPS
Netherlands 62%
7KHVHFRQGFRPSRQHQWRISULFHLVGRPHVWLFFRVWVZKLFKLQFOXGHWUDQVSRUWDWLRQ
IHHVKDQGOLQJFRVWVZKROHVDOHDQGUHWDLOPDUJLQVWD[HVDQGOHYLHV6HFRQGDU\ 66%
United Kingdom
FRPSRQHQWSULFHVW\SLFDOO\DFFRXQWIRUWKHUHPDLQLQJRIWKHSULFHDWWKHSXPS
+RZHYHUJRYHUQPHQWVXEVLGLHVUHGXFHWKLVEXUGHQVXEVWDQWLDOO\LQFHUWDLQPDUNHWV
Germany 63.9%
)RUWKLVGLVFXVVLRQZHZLOOIRFXVRQWKHWZRFRPSRQHQWVWKDWKDYHWKHJUHDWHVW
HIIHFWRQSULFHWKHLQWHUQDWLRQDOVSRWFUXGHRLOSULFHDQGWD[HVWKDWDFFRXQWIRU Belgium 59.5%
DSSUR[LPDWHO\RIWKHSULFHWKDWFRQVXPHUVSD\DWWKHSXPS7KHRWKHUSULFH
FRPSRQHQWVIOXFWXDWHEXWDUHPRUHRUOHVVIL[HG Italy 59%
,QWKHSULFHRIRLOLVUHFDOLEUDWLQJWRWKHQHZUHDOLWLHVRIVXSSO\DQGGHPDQG Canada 3%
$QXQH[SHFWHGSURGXFWLRQVXUJHIURP/LE\DDQGZHDNHQLQJPDUNHWGHPDQGFUHDWHG
DODUJHVXSSO\VLGHVXUSOXV%UHDNLQJZLWKGHFDGHVRISUDFWLFHVXSSO\UHEDODQFLQJ Colombia 46%
LVRFFXUULQJZLWKRXWIRUPDOO\DJUHHGSURGXFWLRQDGMXVWPHQWVE\23(&$WWKH23(&
PHHWLQJODWHODVW1RYHPEHUWKHH[SRUWHUVE\GHFLGLQJQRWWRFXWSURGXFWLRQPDGH
United States 12.7%
WKHFUXFLDOGHFLVLRQWRKDQGRYHUUHVSRQVLELOLW\RISULFHGHWHUPLQDWLRQWRWKHPDUNHW
:LWKWKDWDSULFHGHFOLQHWXUQHGLQWRDSULFHURXW
China - Taiwan 0%
7KHGULYLQJIRUFHVEHKLQGWKHFXUUHQWSULFHOHYHOVDUHVXEMHFWWRFKDQJHDQGFRXOG
EHGLVUXSWHGE\DVLQJXODUHYHQWVXFKDVDFKDQJHLQ23(&SROLF\IRUH[DPSOH)RU Philippines 0%
WKLVDQGDQXPEHURIRWKHUUHDVRQVGLVFXVVHGLQRWKHU,+6SXEOLFDWLRQVWKHSULFH
URXWLVH[SHFWHGWREHDUHODWLYHO\VKRUWWHUPSKHQRPHQRQZLWKSULFHVUHWXUQLQJWR Vietnam 10%
SUHURXWWUHQGOHYHOVE\WKHHDUO\VDVVXSSO\GHPDQGEDODQFHVKLIWVIURPWKH
FXUUHQWVXUSOXVWRDQHHGIRUPRUHRLO1HDUWHUPLQGXVWU\HIIHFWVDUHPRVW Mexico 13%
SURQRXQFHGLQWKH8QLWHG6WDWHVDQGUDQJHIURPSRWHQWLDOO\XQDFFHSWDEOHUHWXUQRQ
LQYHVWPHQWLQUHJXODWRU\GULYHQIXHOVDYLQJWHFKQRORJLHVORZHUFRVWVIRUVRPH
SODVWLFFRPSRQHQWVXQFHUWDLQW\ZLWKUHVSHFWWRORQJHUWHUPFRUSRUDWHDYHUDJHIXHO Thailand 0%
HFRQRP\&$)(UHJXODWLRQVDQGDJOREDOHFRQRPLFFKDOOHQJHIRUDOWHUQDWLYHIXHOV
7KHKLJKHVWULVNVWRWKHLQGXVWU\DUHWKRVHWKDWDFFRPSDQ\DVFHQDULRLQZKLFKWKH China 0%
IRUHFDVWLVSHVVLPLVWLFDQGWKHURXWWXUQVRXWWREHPRUHVXVWDLQDEOHWKDQWKH
IDFWRUVWKDWGULYHXSRLOSULFHV)LQDOO\WKHUHLVDFRQFHUQWKHRYHUDOOPDUNHWERRVW Indonesia 0%
SURYLGHGE\ORZHUFRVWRLOZLOOPDVNVRPHXQGHUO\LQJFKDOOHQJLQJPDUNHW
GHYHORSPHQWVLQUHVRXUFHEDVHGHFRQRPLHV 0%
Malaysia
$FKDQJHLQRLOSULFHZLOOFHUWDLQO\EHUHIOHFWHGDWWKHIXHOSXPSEXWWKHHIIHFWVZLOO
Iran 0%
YDU\GHSHQGLQJRQWKHJDVWD[RUVXEVLG\LQHDFKPDUNHW7KHHIIHFWRQSXPSSULFHV
ZLOOEHSURSRUWLRQDOO\OHVVIRUWKRVHPDUNHWVZLWKKLJKHUIXHOWD[HV(DFKJRYHUQPHQW
PD\RSWWRDOWHULWVWD[HVDWDQ\WLPH0H[LFRIRUH[DPSOHPD\UHGXFHLWVVXEVLG\ $0 $1 $2 $3
RZLQJWRORZHUIXHOSULFHVZKLOHRWKHUVPD\RIIVHWWKHGHFOLQHLQIXHOFRVWVDQGUDLVH
WD[HVWRUHSOHQLVKORZQDWLRQDOFRIIHUV7KHFXUUHQWVWDWHRIUHODWLYHWD[DWLRQDQGIXHO
XVHVXJJHVWVWKH8QLWHG6WDWHVLVWKHODUJHVWPDUNHWZLWKWKHJUHDWHVWHIIHFWV7KH
UHODWLYHO\KLJKSRZHURIWKHRLOSULFHWRDIIHFWSXPSSULFHVLQWKH8QLWHG6WDWHV
FRPELQHGZLWKWKHKLJKVKDUHRIWRWDORZQHUVKLSFRVWVFRQWULEXWHGE\IXHOFRVWV Fuel Pump Proce/US$ per Liter
PDNHVWKH86PDUNHWDUJXDEO\RQHRIWKHPRVWRLOSULFH±VHQVLWLYHPDUNHWVLQWKH
ZRUOG
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
&RPPRGLWLHV2YHUYLHZ
2WKHUPDMRUPDUNHWVDUHOHVVVHQVLWLYHWRRLOSULFHV,QKLJKIXHOWD[PDUNHWVWKH
SHUFHQWFKDQJHLQWKHIXHOSXPSSULFHLVOHVVWKDQLQWKH8QLWHG6WDWHV)RU
H[DPSOHD86'GURSLQWKHFUXGHRLOSULFHZLOOUHGXFH1RUZHJLDQSXPSSULFHVE\ 2017 World Diesel Prices
DERXWZKHUHDVWKHSULFHGURSLQWKH8QLWHG6WDWHVZRXOGEHDERXW,Q
DGGLWLRQFRPSDUHGZLWKWKH86DYHUDJHSDVVHQJHUYHKLFOHVLQRWKHUPDUNHWVXVH
OHVVIXHORZLQJWRWKHLUVPDOOHUVL]HDQGORZHUDQQXDOGLVWDQFHVWUDYHOHG$QHFGRWDO
HYLGHQFHVXJJHVWV(XURSHDQFRQVXPHUVKDYHQRWLFHGWKHFKDQJHDWWKHSXPSEXW
&RPPRGLWLHV2YHUYLHZ
'HVSLWHKLJKHUIXHOSULFHVLQWKHVHPDUNHWVWKHQHWUHVXOWLVWKDWWKHFRQWULEXWLRQRI
IXHOSULFHVWRWRWDORYHUDOORZQHUVKLSFRVWVLVOHVVWKDQLQWKH8QLWHG6WDWHV
United Kingdom 65.2%
UHQGHULQJWKHVHPDUNHWVOHVVVHQVLWLYHWRFUXGHRLOSULFHIOXFWXDWLRQV7KHPDMRU
PDUNHWVRI-DSDQ(XURSHWKH8QLWHG6WDWHV&KLQDDQGRWKHUVKDYHUHTXLUHPHQWV
WRPHHWFHUWDLQOHYHOVRISHUIRUPDQFHZLWKUHVSHFWWRIXHOFRQVXPSWLRQDQG Germany 56.9%
HPLVVLRQV7KHUHDUHDOVRJRYHUQPHQWUHTXLUHPHQWVDQGRULQFHQWLYHVIRUFHUWDLQ
DOWHUQDWLYHSRZHUWUDLQVUDQJLQJIURP&DOLIRUQLD
VPDQGDWHWRRIIHU]HURHPLVVLRQ Italy 52.5%
YHKLFOHVWR-DSDQ
VUHFHQWLQFHQWLYHIRUIXOOK\EULGVWKDWDWWHQXDWHRURYHUULGHPDUNHW
IRUFHVDQGIXHOSULFHFRQVLGHUDWLRQVWRVRPHH[WHQW France 55.3%
Netherlands 51%
Belgium 47.6%
Canada 47%
Brazil 23%
Uruguay 18.08%
Japan 35%
Chile 20.06%
Argentina 38.33%
China - Macao 0%
India 33%
Paraguay 15.27%
Colombia 44%
China - Taiwan 0%
Philippines 0%
Thailand 0%
China 0%
Mexico 13%
Vietnam 10%
Indonesia 0%
Malaysia 0%
Iran 0%
$0 $1 $2 $3
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)XHO2YHUYLHZ
*OREDO)XHO4XDOLW\
&KDQJHVLQJOREDOIXHOVSHFLILFDWLRQVDUHJHQHUDOO\GLFWDWHGE\OHJLVODWLYHUHVSRQVHVWRHFRQRPLFRUHQYLURQPHQWDOFKDOOHQJHVRUE\FKDQJHVLQSURSXOVLRQWHFKQRORJ\
,QWKHFDVHRIHQYLURQPHQWDOFKDOOHQJHVKLJKTXDOLW\IXHOLVDQHVVHQWLDOLQJUHGLHQWLQWKHVWUDWHJ\WRUHGXFHSROOXWLRQIURPWUDQVSRUWDWLRQVRXUFHV*OREDOVDOHVRIRQURDG
YHKLFOHVDUHH[SHFWHGWRLQFUHDVHGUDPDWLFDOO\LQWKHQH[WILYH\HDUV&ULWLFDOWRWKLVJURZWKLVWKHQHHGIRUPRUHHIIHFWLYHFRQWUROVWRUHGXFHYHKLFOHH[KDXVWHPLVVLRQV
7KHUHTXLUHPHQWIRUORZVXOSKXUIXHOZKLFKHQDEOHVWKHXVHRIKLJKO\VRSKLVWLFDWHGHIIHFWLYHHPLVVLRQFRQWUROWHFKQRORJ\LVFHQWUDOWRDVROXWLRQ
*OREDOO\WKHUHDUHIRXUEDVLFFDWHJRULHVRIDFFHSWDEOHIXHOTXDOLW\DQGHDFKLVGHSHQGHQWRQWKHW\SHRIYHKLFOHLQRSHUDWLRQ
&DWHJRU\,IXHOVDUHW\SLFDOO\XQUHJXODWHGDQGXVHGLQFRXQWULHVWKDWDUHHQWLUHO\GHSHQGHQWRQLPSRUWHGIXHOVDQGKDYHOLWWOHFRQWURORYHUTXDOLW\DQGDYDLODELOLW\,QKHUHQWO\
)XHO2YHUYLHZ
KLJKOHYHOVRIXQGHVLUDEOHHOHPHQWVLQWKHVHIXHOVVXFKDVEHQ]LQHFRQWULEXWHJUHDWO\WRORFDODLUSROOXWLRQOHYHOV+LVWRULFDOO\OHDGZDVDJHQHUDOO\DFFHSWDEOHDGGLWLYHLQ
IXHO EHFDXVH LW LPSURYHG GXUDELOLW\ RI WKH HQJLQH YDOYHWUDLQ 7KHVH IXHOV ZLOO QRW VXSSRUW DQ\ W\SH RI HPLVVLRQ FRQWURO WHFKQRORJ\ DV VXOSKXU OHYHOV PD\ EH XSZDUG RI
SSPSHUSDUWLFXODWHPDWWWHU
&DWHJRU\,,IXHOVDUHW\SLFDOO\GHVLJQHGIRUWKHUHGXFWLRQRIHOHPHQWDOOHDGEXWVWLOODOORZIRUKLJKOHYHOVRIEHQ]LQHDURPDWLFVDQGVXOSKXURIXSWRSSPIRUJDVROLQH
DQGSSPIRUGLHVHO
&DWHJRU\,,,IXHOVSURYLGHIRUSSPWRSSPVXOSKXUIRUJDVROLQHDQGSSPWRSSPVXOSKXUIRUGLHVHO7KHVHIXHOVDOORZIRUWKHLQWURGXFWLRQRI(XURDQG
(XURHPLVVLRQVHTXLSPHQWRQYHKLFOHV7HFKQRORJ\VXFKDVR[LGDWLRQFDWDO\VWVDQGH[KDXVWJDVUHFLUFXODWLRQ(*5YDOYHVDUHW\SLFDOO\LQWURGXFHGDWWKLVWLPH
&DWHJRU\,9IXHOVDUHVSHFLILFDOO\IRUFRXQWULHVZLWKWKHPRVWVRSKLVWLFDWHGIXHOUHTXLUHPHQWVWRVXSSRUWDGYDQFHGYHKLFOHWHFKQRORJ\LQQRYDWLRQVIRU&2DQGH[KDXVW
SDUWLFXODWHPDWWHUUHGXFWLRQ7KHVHIXHOVSURYLGHIRUVXOSKXUFRQWHQWEHORZSSPIRUJDVROLQHDQGSSPIRUGLHVHO,QVRPHFRXQWULHVXOWUDORZVXOSKXUIXHOV8/6)
DUHPDQGDWHGZLWKDFFHSWDEOHVXOSKXURISSP(XURDQG(XURHPLVVLRQOHYHOVDUHDFKLHYDEOHDWWKLVWLPHDQGGLUHFWLQMHFWLRQ',DQGLPSURYHGH[KDXVWFDWDO\VW
WHFKQRORJLHVDUHSRVVLEOH
$V JOREDO HFRQRPLHV EHFRPH IXOO\ GHYHORSHG PDQXIDFWXULQJ DFWLYLWLHV DQG WUDQVSRUWDWLRQ RI SHRSOH DQG JRRGV FRQWULEXWH JUHDWO\ WR WKH GHFOLQLQJ TXDOLW\ RI WKH DLU
6XEVHTXHQWO\ DV QDWLRQDO ZHDOWK LQFUHDVHV OHJLVODWLYH LQLWLDWLYHV IRFXV RQ LPSURYHPHQWV WR DLU TXDOLW\ 7KH LQLWLDWLYHV DUH SULPDULO\ GULYHQ E\ WKH HFRQRPLF LPSDFW RI
SD\LQJIRUKHDOWKFDUHIRUSRSXODWLRQVDIIHFWHGE\GLVHDVHVFDXVHGE\SROOXWLRQDQGRWKHUJOREDOSUHVVXUHV
7KH HQDEOHU LV DOZD\V KLJKHU TXDOLW\ IXHO ZKLFK DOORZV VRSKLVWLFDWHG HPLVVLRQ UHGXFWLRQ WHFKQRORJ\ WR HQWHU WKH PDUNHWSODFH 3OHDVH UHIHU WR WKH WDEOH RQ HPLVVLRQ
UHJXODWLRQVLQWKLVVHFWLRQIRUDSUHYLHZRIH[SHFWHGOHJLVODWLYHDFWLRQV
)UDQFH )UDQFH
*HUPDQ\ *HUPDQ\
+XQJDU\ +XQJDU\
,WDO\ ,WDO\
3RODQG 3RODQG
5XVVLD 5XVVLD
6ORYDNLD 6ORYDNLD
6SDLQ 6SDLQ
6ZHGHQ 6ZHGHQ
7XUNH\ 7XUNH\
8QLWHG.LQJGRP 8QLWHG.LQJGRP
&KLQD7DLZDQ &KLQD7DLZDQ
6RXWK.RUHD 6RXWK.RUHD
8QLWHG6WDWHV 8QLWHG6WDWHV
%UD]LO %UD]LO
,QGLD ,QGLD
7KDLODQG 7KDLODQG
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
(PLVVLRQ2YHUYLHZ
*OREDO(PLVVLRQ6WDQGDUGV
&RPPRQWDLOSLSHHPLVVLRQVIURPEXUQLQJIRVVLOIXHOVLQLQWHUQDOFRPEXVWLRQHQJLQHVFRQVLVWRIFKHPLFDOFRPSRXQGVRISDUWLFXODWHPDWWHUSP12[62&2DQGOHDG
/HDGDQGSPDUHWKHHOHPHQWVRIKLJKHVWFRQFHUQUHJDUGLQJWKHLPSURYHPHQWLQKXPDQKHDOWK/HDGFDQFDXVHSUREOHPVZLWKWKHFHQWUDOQHUYRXVV\VWHPDQGSPFDQ
EHFRPHORGJHGLQWKHKXPDQUHVSLUDWRU\V\VWHPFDXVLQJLUULWDWLRQDQGSRVVLEO\UHVSLUDWRU\GLVHDVH
$V FRXQWULHV GHYHORS IURP DQ HFRQRPLF SHUVSHFWLYH LQGXVWULDO DFWLYLWLHV LQFUHDVH ZKLOH WKH QXPEHU RI RQURDG SDVVHQJHU YHKLFOHV DOVR LQFUHDVHV 8OWLPDWHO\ D
GHJUDGDWLRQRIDLUTXDOLW\H[LVWVWRWKHSRLQWWKDWFOHDQDLUODZVDUHPDQGDWHGWRUHGXFHWKHDIRUHPHQWLRQHGSROOXWDQWV
7KHFRPSDQLRQWDEOHVWRWKLVDQDO\VLVGLVSOD\WKHDOORZDEOHOLPLWVIRUYHKLFOHH[KDXVWHPLVVLRQHOHPHQWV(DFKFRXQWU\KDVDJHQHUDOJRDOWKDWVWDUWVZLWKVLPSOHHPLVVLRQ
FRQWUROV DQG SURJUHVVHV WRZDUG PRUH H[DFWLQJ OLPLWV $V KXPDQ DFWLYLW\ LQFUHDVHV WKH ORFDO DLU GHJUDGHV +RZHYHU DV HFRQRPLHV EHFRPH PRUH DIIOXHQW SHRSOH FDQ
(PLVVLRQ2YHUYLHZ
DIIRUGDXWRPRELOHVZLWKPRUHVRSKLVWLFDWHGSROOXWLRQFRQWUROWHFKQRORJ\(DFKFRXQWU\SURYLGHVDWHFKQRORJ\GHSOR\PHQWURDGPDSDORQJZLWKWKHH[SHFWHGWLPHIUDPHIRU
OHJLVODWLRQHQIRUFHPHQW
(PLVVLRQ6WDQGDUGV*DVROLQH3RVLWLYH,QJLWLRQ
102*
+&10+& 7+&+& +&2+&+2 +&12[ 12[ 12
6WDQGDUG 7HVW&\FOH 12[ &2PJNP 30PJNP 311ENP &)12[ &)31
PJNP PJNP PJNP PJNP PJNP PJNP
PJNP
%6 0RGLILHG
,QGLDQ
'ULYLQJ&\FOH
%6 0RGLILHG [Aĺ[
,QGLDQ A
'ULYLQJ&\FOH
&1 1('&
&1 1('&
&1D :/73 [A
&1E :/73 [A
5'(
(XUR (&(
(8'&
(XUR 1('&
(XUR 1('&
(XUR 1('& ĺ
(XURE 1('& [A
(XURG :/73 [A
5'(
(XURG7HPS :/73 [A
5'(
/(9 )73 ĺ )73
+:)(7 ĺ
6&86 86
3RVW1HZ/RQJ7HUP -&
3RVW1HZ/RQJ7HUP:/73 :/73ZR
([WUDKLJK
352&219(/ )73
352&219(/3URSRVDO )73
7LHU )73
+:)(7
6&86
7LHU )73 &ROG ĺ )73
+:)(7 86
6&86 ĺ
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
(PLVVLRQ2YHUYLHZ
(PLVVLRQ6WDQGDUGV'LHVHO
102*
+&10+& 7+&+& +&2+&+2 +&12[ 12[ 12
6WDQGDUG 7HVW&\FOH 12[ &2PJNP 30PJNP 311ENP &)12[ &)31
PJNP PJNP PJNP PJNP PJNP PJNP
PJNP
%6 0RGLILHG
,QGLDQ
'ULYLQJ&\FOH
%6 0RGLILHG [A
,QGLDQ
'ULYLQJ&\FOH
&1 1('&
&1 1('& [A
(PLVVLRQ2YHUYLHZ
&1D :/73 [A
&1E :/73 [A
5'(
(XUR (&(
(8'&
(XUR 1('&
(XUR 1('&
(XUR 1('& ĺ [A
(XURE 1('& [A
(XURG :/73 [A
5'(
(XURG:/7&YHU :/7& [A
5'(
(XURG7HPS :/73 [A
5'(
(XURG7HPS:/7&YHU :/7& [A
5'(
/(9 )73 ĺ )73
+:)(7 ĺ
6&86 86
3RVW1HZ/RQJ7HUP -&
3RVW1HZ/RQJ7HUP:/73 :/73ZR
([WUDKLJK
3RVW1HZ/RQJ7HUP:/73 :/73ZR
5'( ([WUDKLJK
5'(
352&219(/ )73
352&219(/3URSRVDO )73
7LHU )73
+:)(7
6&86
7LHU )73 &ROG ĺ )73
+:)(7 86
6&86 ĺ
(PLVVLRQ6WDQGDUGV0DWXUH0DUNHWV
0DUNHW )XHO 1RWHV
(8 *DV (XURE (XURG7HPS (XURG
'LHVHO (XURE (XURG7HPS (XURG
&KLQD%HLMLQJ *DV %HLMLQJ &1D &1E
'LHVHO %HLMLQJ &1D &1E
&KLQD *DV &1 &1 &1D &1E
'LHVHO &1 &1 &1D &1E
86 *DV 7LHU 7LHU
'LHVHO 7LHU 7LHU
86&DOLIRUQLD *DV /(9
'LHVHO /(9
-DSDQ *DV 3RVW1HZ/RQJ7HUP 3RVW1HZ/RQJ7HUP:/73
'LHVHO 3RVW1HZ/RQJ7HUP 3RVW1HZ/RQJ7HUP:/73 3RVW1HZ/RQJ7HUP:/735'(
6RXWK.RUHD *DV /(9
'LHVHO (XURE (XURG7HPS (XURG
(PLVVLRQ6WDQGDUGV(PHUJLQJ0DUNHWV
0DUNHW )XHO 1RWHV
,QGLD0DMRU&LWLHV *DV %6 %6
'LHVHO %6 %6
,QGLD *DV %6 %6 %6 ,QGLDKDVDSODQWRLQWURGXFH5'(IURP
'LHVHO %6 %6 %6
5XVVLD *DV (XUR (XUR
'LHVHO (XUR (XUR
%UD]LO *DV 352&219(/ 352&219(/PD\EHLQWURGXFHGIURP
'LHVHO 352&219(/
7KDLODQG *DV (XUR *RYHUQPHQWKDVDQDPELWLRXVWRLQWURGXFH
'LHVHO (XUR (XURIURPRU
,QGRQHVLD *DV (XUR (XUR 3HUWDPLQDRSSRVHVLQWURGXFWLRQRI(XURIURP
LWLQVLVWVWKDW(XURVKRXOGEH
'LHVHO (XUR (XUR
LQWURGXFHGIURP
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
5HJLRQDO2YHUYLHZ
*OREDO+LJKOLJKWV Global Engine Production By Region
35
)RU IXOO\HDU ZH H[SHFW PLOOLRQ SRZHU XQLWV LQFOXGLQJ K\EULG
V\VWHPV WR EH SURGXFHG DURXQG WKH ZRUOG VHUYLQJ WKH OLJKWGXW\ SDVVHQJHU
FDU DQG FRPPHUFLDO YHKLFOH PDUNHWV ,Q OLQH ZLWK WRSOLQH OLJKWGXW\ YHKLFOH 30
SURGXFWLRQWKLVZLOOUHSUHVHQWPRGHVWJURZWKRIFRPSDUHGZLWK8QWLO
WKHHQGRIRXUVWDQGDUGIRUHFDVWKRUL]RQLQWKHJOREDOOLJKWYHKLFOHVDOHV 25
PDUNHWLVH[SHFWHGWRDSSURDFKPLOOLRQXQLWV$OWKRXJKWKH\IDFHHFRQRPLF
KHDGZLQGVWKHNH\PDUNHWVRI6RXWK$VLDDQG*UHDWHU&KLQDDUHVWLOOH[SHFWHG 20 Greater China
Millions
Europe
WR RXWSHUIRUP WKH PDUNHW DYHUDJH ZKHUHDV WKH RQJRLQJ VWURQJ UHFRYHU\ LQ North America
1RUWK $PHULFD ZLOO SURYLGH ZHOFRPH VXSSRUW LQ RIIVHWWLQJ WKH EHJLQQLQJV RI D 15 Japan/Korea
ORQJWHUPPDUNHWSODWHDXLQ(XURSH South Asia
5HJLRQDO2YHUYLHZ
South America
10 Middle East/Africa
$W PLOOLRQ XQLWV WKH IXOO\HDU RXWORRN LV WKHUHIRUH ERRVWHG E\
PLOOLRQ XQLWV UHSUHVHQWLQJ D JRRG RSSRUWXQLW\ IRU VXSSOLHUV FRQQHFWHG WR WKH 5
FRUUHFWLQFUHDVLQJO\FRQVROLGDWHGSRZHUXQLWSURMHFWV2IQRWHLVWKHLQFUHDVLQJ
IRFXV RQ IXHOHIILFLHQF\ WHFKQRORJ\ ZKHUHE\ WKH YDOXH RI HDFK SRZHU XQLW 0
SURGXFHG LV LQFUHDVHG GUDPDWLFDOO\ 7KH IRFXV WKHUHIRUH LV QRZ VKLIWLQJ IURP
2017
2018
2019
2020
2021
2022
2023
2024
WKHSXUHO\YROXPHRSSRUWXQLW\RIWKHSDVWLQWRWKHSHUXQLWYDOXHHTXDWLRQ
(QJLQHSURGXFWLRQJURZWKLQ(XURSHLVSUHGLFWDEO\DOLWWOHPRUHPRGHVWDW
RUPLOOLRQXQLWVE\WRUHDFKQHDUO\PLOOLRQXQLWV)RUVRPHWLPH
QRZ(XURSHKDVJURZQVLJQLILFDQWO\YLDLQYHVWPHQWVLQIDFLOLWLHVLQ&HQWUDODQG
(DVWHUQ(XURSH(QJLQHSURGXFWLRQZLOOFRQWLQXHWRRXWSDFHYHKLFOHSURGXFWLRQ
RZLQJ WR LPSURYLQJ GHPDQG IRU SUHPLXP HQJLQHV WR RYHUVHDV YHKLFOH EXLOG
RSHUDWLRQV
(QJLQH SURGXFWLRQ LQ -DSDQ DQG .RUHD LV H[SHFWHG WR FRQWUDFW XQLWV
IRU D FRPELQHG WRWDO RI PLOOLRQ XQLWV LQ 0DQXIDFWXUHUV DUH QRZ
IRFXVHG RQ HVWDEOLVKLQJ HQJLQH SURGXFWLRQ IRRWSULQWV LQ PDUNHWV VXFK DV WKH
8QLWHG 6WDWHV (XURSH DQG WKH $VVRFLDWLRQ RI 6RXWKHDVW $VLDQ 1DWLRQV
$6($1
1RUWK$PHULFDQHQJLQHSURGXFWLRQLVH[SHFWHGWRFRQWLQXHLWVVWURQJUHFRYHU\
DIWHU WKH FKDOOHQJHV RI ± UHFRYHULQJ WR SRVWDQQXDO YROXPH RI
PLOOLRQ XQLWV DV ZH DSSURDFK RXU VWDQGDUG VL[\HDU IRUHFDVWLQJ KRUL]RQ 1RUWK
$PHULFDQJURZWKZLOOEHGULYHQE\IXUWKHULQYHVWPHQWVE\$VLDQPDQXIDFWXUHUV
DV SDUW RI WKHLU RYHUVHDV ORFDOL]DWLRQ VWUDWHJLHV 7KHUH UHPDLQV D OLPLW WR
ORFDOL]DWLRQ WKRXJK VLQFH PDQ\ (XURSHDQ HQJLQH SODQWV DUH VWLOO H[SHFWHG WR
EHQHILWIURPLQFUHDVHGH[SRUWVRIPRGHUQGRZQVL]HGJDVROLQHSURJUDPVWRWKH
8QLWHG6WDWHV
(QJLQHEXLOGLQ6RXWK$VLDGULYHQE\,QGLDLVH[SHFWHGWRJURZVLJQLILFDQWO\E\
RU PLOOLRQ XQLWV E\ WR UHDFK PRUH WKDQ PLOOLRQ XQLWV RI
DQQXDOSURGXFWLRQ:LWKWKHLUJURZLQJHFRQRPLHVDQGWKHUHODWLYHO\ORZQXPEHU
RI YHKLFOHV SHU KRXVHKROG VLJQLILFDQW JDLQV DUH H[SHFWHG HOVHZKHUH LQ 6RXWK
$VLDLQFOXGLQJ7KDLODQG,QGRQHVLDDQG0DOD\VLD
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
5HJLRQDO2YHUYLHZ
'HVLJQ6RXUFH 2017
Engine Design Leads
,QHQJLQHVGHVLJQHGLQ$VLDZLOODFFRXQWIRUWKHODUJHVWJOREDOSURGXFWLRQ by Region
VKDUHRIRUPLOOLRQHQJLQHVLQWRWDO7KLVWUHQGKDVEHHQREVHUYHGIRU
PRUH WKDQ D GHFDGH DV $VLDQ PDQXIDFWXUHUV KDYH VWHDGLO\ LQFUHDVHG WKHLU
VKDUH RI WKH JOREDO PDUNHWSODFH DQG KDYH SXUSRVHIXOO\ HQDFWHG D SODQ IRU North
Europe
H[SDQGHGRYHUVHDVPDQXIDFWXULQJFDSDFLW\ America
39%
7%
,Q $VLD WKH FRPELQHG YROXPH LQ -DSDQ DQG .RUHD DFFRXQWV IRU WKH ODUJHVW
VKDUH DW RU PLOOLRQ HQJLQHV %\ WKH UHJLRQ ZLOO UHGXFH LWV
LQIOXHQFH D OLWWOH ELW IDOOLQJ SHUFHQWDJH SRLQWV IRU D WRWDO RI PLOOLRQ
HQJLQHV 7KLV YROXPH LV SULPDULO\ LQ VXSSRUW RI JOREDO PDUNHWVKDUH JDLQV E\
5HJLRQDO2YHUYLHZ
+RQGD+\XQGDL5HQDXOW1LVVDQDQG7R\RWD
7KHHVWDEOLVKPHQWRIPDQXIDFWXULQJIRRWSULQWVE\LQWHUQDWLRQDODXWRPRWLYHILUPV
DQG WKH VXEVWDQWLDO JURZWK RI WKH DXWRPRWLYH PDUNHW LQ JHQHUDO KDYH FUHDWHG Japan Greater
WKH QHHG IRU LQFUHDVHG ORFDO HQJLQHHULQJ VXSSRUW ,QWHUQDWLRQDO HQJLQHHULQJ /Korea China
ILUPV HQDEOH WKH WUDQVIHU RI WHFKQRORJ\ DQG NQRZOHGJH WR ORFDO &KLQHVH 43% 10%
PDQXIDFWXUHUV LQFUHDVLQJ ORFDO GHVLJQ DFWLYLW\ 6XEVWDQWLDO YROXPH JDLQV DUH
PDLQO\LQVXSSRUWRIGRPHVWLFDQGORFDO2(0JURZWK
,QWKHVDPHSHULRG(XURSH
VWRWDOJOREDOVKDUHZLOOLQFUHDVHE\SHUFHQWDJH 2024
SRLQWVWR(XURSH
VSRVLWLRQDVWKHVHFRQGUDQNHGHQJLQHGHVLJQFHQWHU Engine Design Leads
E\YROXPHZLOOFRQWLQXHIRUWKHIRUHVHHDEOHIXWXUHRZLQJWRDVWURQJHPSKDVLV by Region
RQ HQJLQHHULQJ LQ WKH HGXFDWLRQDO V\VWHP H[SDQGLQJ PDQXIDFWXULQJ EDVHV LQ
&HQWUDO DQG (DVWHUQ (XURSH DQG WKH LPSRUWDQFH RI (XURSHFHQWULF IXHO
South
HIILFLHQF\WHFKQRORJ\ Europe
Asia
41%
1%
1RUWK $PHULFD ZLOO FRQWLQXH WR GHFOLQH DJDLQVW LWV FRPSHWLWRUV LQ $VLD DQG
(XURSH3URGXFWLRQRI1RUWK$PHULFDQGHVLJQHGHQJLQHVZLOOGHFUHDVHWRUHDFK
DGHVLJQVKDUHRIDURXQGMXVWWKURXJKDVJOREDOGHPDQGIRUVPDOO
DQG IXHOHIILFLHQW HQJLQHV WKDW SURGXFH YHU\ ORZ &2 HPLVVLRQV ZLOO GUDZ North
GHVLJQGHPDQGDZD\IURPWKH8QLWHG6WDWHV America
6%
&RPSRXQGLQJ WKH VLWXDWLRQ LQ 1RUWK $PHULFD LV WKH 86 PDQXIDFWXUHU WUHQG RI
GHVLJQLQJ QHZ HQJLQHV E\ WUDQVIHUULQJ D PDMRULW\ RI WKH GHVLJQ UHVSRQVLELOLW\
RXWVLGH 1RUWK $PHULFD EHFDXVH RI FRVW FRQFHUQV 1H[WJHQHUDWLRQ GLHVHO Japan Greater
HQJLQHVIURP(XURSHDQGVPDOOJDVROLQHHQJLQHVIURP-DSDQDUHWZRH[DPSOHV /Korea China
RIWKLV 41% 10%
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
5HJLRQDO2YHUYLHZ
)XHO7\SH Global vs Regional
Fuel Type
7KH1RUWK$PHULFDPDUNHWLVDQDOPRVWJDVROLQHPDUNHW7KHUHLVVPDOO
100%
YROXPHRIODUJHGLHVHOHQJLQHVWKDWDUHSURGXFHGLQ1RUWK$PHULFDZKHUHWKH\
KDYHEHHQKLVWRULFDOO\OHYHUDJHGLQODUJHSLFNXSWUXFNVEXWPRUHGHYHORSPHQW
LVXQGHUZD\²)RUGZLOOMRLQ)LDW&KU\VOHU$XWRPRELOHV
5DPSLFNXSE\RIIHULQJ 80%
DGLHVHORSWLRQLQWKH)RUG)
Market Share
,QWKHORQJWHUPHPLVVLRQUHJXODWLRQVDQGVXEVHTXHQWWHFKQRORJ\FRPSOLDQFH 60%
FRVWVZLOOOLPLWGLHVHOSUROLIHUDWLRQLQ1RUWK$PHULFDPDQ\2(0VDUHHOHFWLQJWR North America Gas
LQYHVWLQGRZQVL]HGJDVROLQHHQJLQHV Global Gas
40% Global Diesel
5HJLRQDO2YHUYLHZ
0%
2017
2018
2019
2020
2021
2022
2023
2024
3RZHU'HQVLW\ Global vs Regional
Power Density
1RUWK $PHULFD LV EHJLQQLQJ WR SXOO DZD\ IURP WKH JOREDO DYHUDJH DV
80.0
DXWRPDNHUV DGG DGGLWLRQDO WHFKQRORJ\ OLNH YDULDEOH YDOYH WLPLQJ 997 GLUHFW
LQMHFWLRQDQGWXUERFKDUJLQJWRWKHPRVWO\JDVROLQHPDUNHW
Weighted Average
40.0
North America
Global
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
'LVSODFHPHQW Global vs Regional
Displacement
7KH1RUWK$PHULFDQUHJLRQLVDERXWOLWHUVDERYHWKHJOREDODYHUDJH
3.5
+LVWRULFDOO\ ORZ IXHO WD[HV OHG FRQVXPHUV WR GHPDQG ODUJHU HQJLQHV DQG 3.0
YHKLFOHV
2.5
Weighted Average
7KLV WUHQG LV VORZO\ UHYHUVLQJ DV 2(0V DQG FRQVXPHUV PDNH PRUH IXHO
Displacement
FRQVFLRXVFKRLFHVRZLQJWRLQFUHDVHGIXHOHFRQRP\VWDQGDUGV 2.0
North America
1.5
Global
1.0
0.5
0.0
2017
2018
2019
2020
2021
2022
2023
2024
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
5HJLRQDO2YHUYLHZ
(QJLQH%ORFN Global vs Regional
Engine Block
1RUWK $PHULFD LV LQFUHDVLQJ DOXPLQXP EORFN XVDJH LQ WKH IXWXUH RZLQJ WR
100.0%
ZHLJKWFRQFHUQVIRUIXWXUHYHKLFOHV7KLVJURZWKWUHQGLVKDSSHQLQJDWDPXFK
TXLFNHUSDFHWKDQWKHUHVWRIWKHZRUOGEHFDXVHRI1RUWK$PHULFD
VUHOLDQFHRQ
JDVROLQHHQJLQHV(XURSHDQGLHVHOHQJLQHVDQGGHYHORSLQJPDUNHWVDUHXVLQJ 80.0%
LURQEORFNVIRUGXUDELOLW\DQGFRVWUHDVRQV
Market Share
60.0% NA Alum
Global Alum
Global Iron
NA Iron
40.0% NA CGI
5HJLRQDO2YHUYLHZ
Global CGI
Global Alum/Magnesium
NA Alum/Magnesium
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
7RUTXH'HQVLW\ Global vs Regional
Torque Density
7KH ODFN RI GLHVHO HQJLQHV DFFRXQWV IRU PRVW RI WKH UHJLRQ
V VKRUWIDOO DJDLQVW
160.0
WKHJOREDODYHUDJH
140.0
)XWXUH JURZWK LQ JDVROLQH WXUERFKDUJHG DQG GLHVHO DSSOLFDWLRQV DFFRXQWV IRU
Weighted Average
100.0
80.0
Global
North America
60.0
40.0
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
&\OLQGHUV Global vs Regional
Cylinders
7KH1RUWK$PHULFDQUHJLRQLVDERXWRQHDQGDKDOIF\OLQGHUVDERYHWKHJOREDO
6.0
DYHUDJH
$ GRZQVL]LQJ WUHQG LQ WKH UHJLRQ FDQ EH DWWULEXWHG WR WKH LQFUHDVLQJ XVH RI
WXUERFKDUJHUV WR UHSODFH F\OLQGHU HQJLQHV ZLWK F\OLQGHU HQJLQHV DQG WR
Number of Cylinders
Weighted Average
UHSODFH F\OLQGHU HQJLQHV ZLWK F\OLQGHU HQJLQHV 7KLV HIIRUW KDV VWDUWHG WR 4.0
NHHSXSZLWKFRQVXPHUGHPDQGVIRUSRZHUDQGIXWXUH&$)(UHTXLUHPHQWVIRU
2(0V
North America
Global
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
5HJLRQDO2YHUYLHZ
$VSLUDWLRQ Global vs Regional
Aspiration
1RUWK $PHULFDQ WXUER JURZWK LV DSSURDFKLQJ WKH JOREDO DYHUDJH 7KLV LV
80.0%
SDUWLFXODUO\ VLJQLILFDQW VLQFH 1RUWK $PHULFD KDV VXFK D KLJK SHQHWUDWLRQ RI
JDVROLQH HQJLQHV ZKLOH WKH JOREDO SURGXFWLRQ ILJXUH LQFOXGHV WXUERFKDUJHG
GLHVHOVWKDWDFFRXQWIRURYHUKDOIRIDOOHQJLQHVSURGXFHGLQ(XURSH
60.0%
2(0VDUHXVLQJGRZQVL]LQJDQGWXUERFKDUJLQJDVZD\VWRPHHWWKHQHZ&$)(
Market Share
VWDQGDUGV Global Turbo
40.0% North America Turbo
North America Natural
Global Natural
5HJLRQDO2YHUYLHZ
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
+\EULG8VDJH Global vs Regional
Hybrid Usage
1RUWK $PHULFDQ 2(0V DUH DGRSWLQJ YDULRXV IRUPV RI K\EULGL]DWLRQ WR PHHW
100.0%
IHGHUDOIXHOHFRQRP\WDUJHWVZKLFKEHFRPHHYHQKLJKHUE\DQGWRPHHW
WKH]HURHPLVVLRQYHKLFOH=(9PDQGDWHIRU&DOLIRUQLDDQG6HFWLRQVWDWHV
80.0%
)XWXUH JURZWK IRU HOHFWULILFDWLRQ LQ 1RUWK $PHULFD ZLOO FRPH IURP DGGLWLRQDO
SOXJLQ K\EULG YHKLFOH 3+(9 V\VWHPV DQG IXOO K\EULG V\VWHPV +RZHYHU WKH
Market Share
=(9 PDQGDWH ZLOO UHTXLUH ODUJHU 2(0V WR VHOO D VSHFLILF QXPEHU RI EDWWHU\ 60.0%
HOHFWULFYHKLFOHV%(9VRUIXHOFHOOYHKLFOHVDVZHOO7RHQFRXUDJHJURZWKZLWK Global Hybrid-Mild
FRQVXPHUV 2(0V DQG VXSSOLHUV RI UHODWHG FRPSRQHQWV DUH ZRUNLQJ KDUG WR North America Hybrid-Full
UHGXFH WKH SULFH RI WKHVH V\VWHPV ZKLFK ZLOO PDNH WKHP PRUH DIIRUGDEOH IRU 40.0% North America Hybrid-Mild
Global Hybrid-Full
PRUHSHRSOH3+(9VDQGIXOOK\EULGVFDQRIIHUVLJQLILFDQWLPSURYHPHQWVLQIXHO
HFRQRP\DQGUHGXFH&2HPLVVLRQVZKLOHFDXVLQJOHVVRIDFKDQJHLQGULYLQJ
20.0%
VW\OHDQGOHVVUDQJHDQ[LHW\IRUFRQVXPHUV²YROWPLOGK\EULGV\VWHPVRIIHU
WKHOHDVWDPRXQWRIFKDQJHDQGWKHOHDVWDPRXQWRIEHQHILWLQIXHOHIILFLHQF\
EXW WKH\ JLYH WKH RSSRUWXQLW\ WR DGG D VPDOO HOHFWULF PRWRU DQG EDWWHU\ DW D 0.0%
ORZHUFRVWDQGZLWKPRUHYHKLFOHDSSOLFDWLRQV+RZHYHUHOHFWULFYHKLFOHV(9V
2017
2018
2019
2020
2021
2022
2023
2024
RIIHUJDVROLQHIUHHRZQHUVKLSDQGPD\EHRSWLPDOIRUFRQVXPHUVZLWKVKRUWHU
PRUHGHILQHGFRPPXWHVDQGIXHOFHOOYHKLFOHVRIIHUWKHWUDGLWLRQDOUHILOOLQJWLPH
DQGUDQJHRIDQLQWHUQDOFRPEXVWLRQHQJLQH
VWDQGDUGSRUWIXHOLQMHFWLRQ 60%
Global
40% North America
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
5HJLRQDO2YHUYLHZ
9DULDEOH9DOYH7LPLQJ Global vs Regional
Variable Valve Timing
%HFDXVHRILQFUHDVHVLQIXHOHFRQRP\DQGHPLVVLRQUHJXODWLRQVDQGWKHHYHU
100%
LQFUHDVLQJ FRQVXPHU GHPDQG IRU PRUH SRZHU WKH 1RUWK $PHULFDQ PDUNHW LV
VKLIWLQJ WRZDUG DGRSWLRQ RI 997 IRU JDVROLQH HQJLQHV 7KH ROG DGDJH
WKHUHLVQRVXEVWLWXWHIRUFXELFLQFKHVLVEHLQJGLVSODFHGE\FXVWRPHUGHPDQG 80%
IRUSHUIRUPDQFHDQGJRYHUQPHQWGHPDQGIRUIXHOHFRQRP\²DQG2(0VQHHG
WRPHHWWKHVHGHPDQGV
Market Share
60%
Global
40% North America
5HJLRQDO2YHUYLHZ
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
1RUWK$PHULFD
3URGXFWLRQ
([SRUWV
,PSRUWV
1RUWK$PHULFD7DUJHWLQJ,QGH[
(QJLQH
+\XQGDL/9'2+&/>**$00$@
7R\RWD/9'2+&/>$6HULHV@
)RUG/9'2+&9>'85$7(&@
+\XQGDL/9'2+&/>*.$33$@
*HQHUDO0RWRUV/92+99>*(1,,,,,,99@
)&$/9'2+&/>*0(@
5HQDXOW1LVVDQ/9'2+&/>6*@
5HQDXOW1LVVDQ/9'2+&/>45@
+RQGD/9'2+&9>-@
6XEDUX/9'2+&+>)%@
7R\RWD/9'2+&/>$5@
*HQHUDO0RWRUV/9'2+&/>&661*(1'(@
*HQHUDO0RWRUV/9'2+&/>&661*(1'(@
*HQHUDO0RWRUV/9'2+&9>*(1,,,,,,99@
7R\RWD/9'2+&/>15@
*HQHUDO0RWRUV/9'2+&/>&661*(1'(@
*HQHUDO0RWRUV/9'2+&/>&661*(1'(@
*HQHUDO0RWRUV/9'2+&9>*(1,,,,,,99@
1HZ
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
5HJLRQDO2YHUYLHZ
1RUWK$PHULFD7DUJHWLQJ,QGH[
(QJLQH
0D]GD/9'2+&/>6.<$&7,9;0LG@
$WLHYD/91RQH1RQH>(/(&75,&@
5HJLRQDO2YHUYLHZ
)RUG/9'2+&/>'5$*21@
+\XQGDL/9'2+&/>*.$33$@
6XEDUX/9'2+&+>)%@
7R\RWD/9'2+&/>$6HULHV@
9RONVZDJHQ/9'2+&/>($@
+RQGD/9'2+&/>1HZ5$3@
5HQDXOW1LVVDQ/9'2+&/>0*05@
6XEDUX/9'2+&+>)%@
)&$/9'2+&/>*0(@
+RQGD/9'2+&/>1HZ/$3@
9RONVZDJHQ/9'2+&/>($@
9RONVZDJHQ/9'2+&/>($@
'DLPOHU/9'2+&/>,1/,1(@
*HQHUDO0RWRUV/91RQH1RQH>)8(/&(//@
5HQDXOW1LVVDQ/9'2+&/>6*+5@
)RUG/962+&9>*RG]LOOD@
)RUG/962+&9>%266@
)&$/9'2+&/>*0(@
1HZ
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
&XPPLQV$QDO\VLV
3URGXFWLRQ6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
140
120
&ROXPEXV,18QLWHG6WDWHV
100
&XPPLQV7RWDO
Thousands
80
60
40
20
&XPPLQV
0
2017
2018
2019
2020
2021
2022
2023
2024
5HJLRQDO6WUDWHJLF+LJKOLJKWV Top Five North America Platforms
Engine Production
&XPPLQVLVSULPDULO\DKHDY\GXW\GLHVHOHQJLQHVXSSOLHU,+6WUDFNVVRPHRILWV 0.14
SURGXFWLRQEHFDXVHLWSURGXFHVGLHVHOHQJLQHVIRUERWK)LDW&KU\VOHU$XWRPRELOHV
5DPDQG1LVVDQSLFNXSV 0.12
Production in Millions
7KH ,6% / GLHVHO LV D KHDY\GXW\ GLHVHO HQJLQH RIIHUHG RQ KHDY\GXW\ 'RGJH 0.1
5DP WUXFNV 3URGXFLQJ IRRWSRXQGV OEIW LQ LWV SULRU IRUP &XPPLQV DQG
&KU\VOHU EXPSHG WKLV WR OEIW ZLWK WKH 'RGJH 5DP DQG HYHQ IXUWKHU WR 0.08
OEIW IRU WKH PRGHO JLYLQJ LW D WRZ FDSDFLW\ RI D VWDJJHULQJ CUMMINS ISB
SRXQGV 0.06
VIKING
0.04
1LVVDQKDVDQQRXQFHGWKDWLWZLOOXVHD&XPPLQV/9GLHVHOHQJLQHLQLWV7LWDQ
SLFNXSWUXFN7KLVHQJLQHZDVSUHYLRXVO\EHLQJFDOOHG9,.,1*EXWLVQRZUHIHUUHG 0.02
WRDV9$1*8$5'7KHUHLVDOVRWDONDERXWDQRWKHU/9HQJLQHSURJUDPIURP
&XPPLQV IRU D GLIIHUHQW PDQXIDFWXUHU EXW WKLV KDV \HW WR EH FRQILUPHG ,QLWLDO 0
VSHFXODWLRQVXJJHVWV7R\RWDRUSRVVLEO\*HQHUDO0RWRUV
2017
2018
2019
2020
2021
2022
2023
2024
)LQDOO\1LVVDQZLOODOVRXVHDVPDOOHU&XPPLQV/GLHVHOHQJLQHLQWKH)URQWLHU
SLFNXS
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
&XPPLQV$QDO\VLV
3URGXFWLRQ%\5HJLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
&XPPLQV
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
&XPPLQV
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
*OREDO(QJLQH&DSDFLW\$QDO\VLV
9ROXPHV
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
&XPPLQV$QDO\VLV
1RUWK$PHULFD(QJLQH3ODQW/RFDWLRQV
&XPPLQV
Columbus, IN, USA
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
&XPPLQV$QDO\VLV
5HJLRQDO3ODQW&DSDFLW\$QDO\VLV
0IU&XPPLQV
&ROXPEXV,1
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
&800,16,6% _ _ _ _ _ _ _ _
9,.,1* _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
&XPPLQV
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
&XPPLQV$QDO\VLV
)XHO7\SH OEM vs Regional
Fuel Type
&XPPLQVRQO\SURGXFHVGLHVHOHQJLQHV 120%
100%
80%
Market Share
60% Cummins Diesel
North America Gas
North America Diesel
40% Cummins Gas
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
&XPPLQV
3RZHU'HQVLW\ OEM vs Regional
Power Density
%HLQJDKHDY\GXW\GLHVHOHQJLQHVXSSOLHUPHDQV&XPPLQV
SRZHUGHQVLW\LV 80.0
PXFKORZHUWKDQWKHUHJLRQDODYHUDJHZKLFKLVPDGHXSRIPRVWO\JDVROLQH
HQJLQHVLQ1RUWK$PHULFD
Weighted Average
40.0
North America
Cummins
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
'LVSODFHPHQW OEM vs Regional
Displacement
&XUUHQWO\&XPPLQVRQO\SURGXFHVD/HQJLQHIRU&KU\VOHU:HDUHSURMHFWLQJ 8.0
WKDW1LVVDQZLOOXVHDVPDOOHU/9YHUVLRQIRULWV7LWDQSLFNXSDQGD/
F\OLQGHUGLHVHOIRUWKH)URQWLHU
6.0
Weighted Avearage
Displacement
4.0
Cummins
North America
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
Cummins Iron
60.0%
North America Alum
North America Iron
North America CGI
40.0% Cummins CGI
Cummins Alum
Cummins Alum/Magnesium
North America Alum/Magnesium
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
&XPPLQV$QDO\VLV
Weighted Average
100.0
Cummins
North America
50.0
&XPPLQV
0.0
2017
2018
2019
2020
2021
2022
2023
2024
&\OLQGHUV OEM vs Regional
Cylinders
7KHH[LVWLQJ&XPPLQV,6%XVHGLQWKHKHDY\GXW\'RGJH5DPSLFNXSVLVD 8.0
F\OLQGHU,QOLQHHQJLQHZKLOHWKH9$1*8$5'LVD9
6.0
Number of Cylinders
Weighted Average
4.0
Cummins
North America
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
$VSLUDWLRQ OEM vs Regional
Aspiration
&XPPLQVHQJLQHVDUHDOOWXUERFKDUJHGOLNHPRVWPRGHUQGD\GLHVHOHQJLQHV 120.0%
100.0%
80.0%
Market Share
Cummins Turbo
60.0% North America Turbo
North America Natural
North America Super
40.0% Cummins Natural
Cummins Super
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
&XPPLQV$QDO\VLV
+\EULG8VDJH OEM vs Regional
Hybrid Usage
&XPPLQVFXUUHQWO\GRHVQRWSURGXFHDQ\K\EULGHQJLQHVIRUDXWRPRWLYH 10.0%
DSSOLFDWLRQV
8.0%
Market Share
6.0%
North America Hybrid-Full
North America Hybrid-Mild
4.0% Cummins Hybrid-Full
Cummins Hybrid-Mild
2.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
&XPPLQV
'LUHFW,QMHFWLRQ OEM vs Regional
Direct Injection
6LQFH&XPPLQVRQO\SURGXFHVGLHVHOHQJLQHVLWKDVQRJDVROLQHGLUHFWLQMHFWLRQ 100%
*',SURGXFWLRQ
80%
Market Share
60%
North America
40% Cummins
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
9DULDEOH9DOYH7LPLQJ OEM vs Regional
Variable Valve Timing
6LQFH&XPPLQVRQO\SURGXFHVKHDY\GXW\GLHVHOHQJLQHVLWKDVQR997 100%
SURGXFWLRQ
80%
Market Share
60%
North America
40%
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
&XPPLQV$QDO\VLV
5HJLRQDO(QJLQH6QDSVKRW
9,.,1* /9'2+&
9
9
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
&XPPLQV&800,16,6%)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
140
120
/9'2+&/
100
/92+9/
Thousands
80 3ODWIRUP
60
40
20
&XPPLQV
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
'HPDQGIRUWKH&800,16,6%ZLOOGHFOLQHVOLJKWO\IURPQRZWKURXJKDQGWKHQUHPDLQUHODWLYHO\FRQVWDQWDWDSSUR[LPDWHO\HQJLQHVSHU\HDUDOWKRXJKWKH
SURMHFWLRQVIURP&XPPLQVDUHVOLJKWO\PRUHUREXVWDWDERXW7KHXSFRPLQJODXQFKRI&KU\VOHU
VQHZ%LJ*DV/HQJLQHFRXOGSRWHQWLDOO\HDWLQWRVRPHRI
&XPPLQV
GLHVHOYROXPHIRUWKHKHDY\GXW\'RGJH5DPWUXFNV
3ODWIRUP6QDSVKRW
7RS9HKLFOH )&$5DP'-
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >/&9@
9ROXPH
)&$5DP'.
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
>/&9@
*$=*URXS*$=6RERO
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
>/&9@
*$=
0D[3RZHUKS 0D[7RUTXH1P *URXS*$=*D]HOOH>
/&9@
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+&2+9 %ORFN0DWHULDO ,URQ 3ODQWV &ROXPEXV,1
9DULDEOH9DOYH7LPLQJ 1R +HDG0DWHULDO ,URQ
)XHO6\VWHP ',',&5 &RQILJXUDWLRQ //
)XHO7\SH ',(6(/ 7RWDO9DOYHV
$VSLUDWLRQ 7&,
/D\RXW )5/
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
&XPPLQV&800,16,6%)RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
&800,16,6%
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
&XPPLQV
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
*$=*URXS*$=*D]HOOH
>/&9@
*$=*URXS*$=6RERO
>/&9@
/92+9/
)&$5DP'->
/&9@
)&$5DP'.>
/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
&ROXPEXV,18QLWHG6WDWHV
&XPPLQV
/9'2+&/
/92+9/
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
&XPPLQV&800,16,6%)RUHFDVW
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/92+9/
&800,16,6%7RWDO
&XPPLQV
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
&XPPLQV9,.,1*)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
14
12
/9'2+&9
10
3ODWIRUP
Thousands
2
&XPPLQV
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH9,.,1*/9GLHVHOHQJLQHZDVRULJLQDOO\SODQQHGWREHDYDLODEOHRQ&KU\VOHU'6'RGJH5DPWUXFNV&KU\VOHUDEDQGRQHGWKRVHSODQVDQGQRZLWORRNVOLNH
1LVVDQZLOOXVHWKHHQJLQHLQLWV7LWDQSLFNXSWUXFNV,QLWLDOYROXPHSURMHFWLRQVDUHORZKRZHYHUDQGWKHSURJUDPDSSHDUVWREHULVN\IRUWKH7LWDQZKLFKKDVVWUXJJOHGWR
VWHDOPDUNHWVKDUHIURPWKH'HWURLW7KUHH
VVROLGWUXFNRIIHULQJV7KHHQJLQHLVUHIHUUHGWRDV9$1*8$5':HKDYHDOVRKHDUGWKDWWKHUHPD\EHDQRWKHUPDQXIDFWXUHU
FRQVLGHULQJXVLQJD/GLHVHO9HQJLQHLQLWVWUXFNV1RWKLQJKDVEHHQFRQILUPHGDWWKLVWLPHDOWKRXJKZHKDYHKHDUGWKHQDPH9R\DJHUDVDSRVVLEOHHQJLQH
SURJUDPQDPH
3ODWIRUP6QDSVKRW
7RS9HKLFOH 5HQDXOW1LVVDQ1LVVDQ7LWDQ
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ +/>/&9@
9ROXPH
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
0D[3RZHUKS 0D[7RUTXH1P
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+& %ORFN0DWHULDO &*, 3ODQWV &ROXPEXV,1
9DULDEOH9DOYH7LPLQJ 1R +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP ',&5 &RQILJXUDWLRQ 9
)XHO7\SH ',(6(/ 7RWDO9DOYHV
$VSLUDWLRQ VWDJH
/D\RXW )5/
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
&XPPLQV9,.,1*)RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
9,.,1*
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
&XPPLQV
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
5HQDXOW1LVVDQ1LVVDQ7LWDQ+
/>/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
&ROXPEXV,18QLWHG6WDWHV
&XPPLQV
/9'2+&9
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
9,.,1*7RWDO
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$$QDO\VLV
3URGXFWLRQ6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
2,500
2,000
&RQQRU$YHQXH0,8QLWHG6WDWHV
'XQGHH0,8QLWHG6WDWHV
Thousands
6DOWLOOR0H[LFR
)&$7RWDO
500
0
2017
2018
2019
2020
2021
2022
2023
2024
)&$
Production in Millions
GHFDGH 1
)LDWXSJUDGHGWKH3(17$67$59SODWIRUPLQ,WDSSHDUVWKH/YHUVLRQ 0.8
PENTASTAR
ZLOOHQGDVZLOOWKH/YDULDQWH[SRUWHGWR&KLQD7KLVPHDQVWKHXSJUDGH/LV GME
DOVRLQFOXGHGDVDYHUVLRQIRUSOXJLQK\EULGHOHFWULFYHKLFOHV 0.6 HEMI V8
WORLD ENGINE L4
ELECTRIC
0.4
7KH +(0, 9 / HQJLQH FRQWLQXHV WR EH WKH ZRUNKRUVH 9 IRU )&$ DOWKRXJK
)&$KDVVRPHODUJHU9HQJLQHV$/JDVROLQHHQJLQHFDOOHG%LJ*DVLVXVHG 0.2
LQPHGLXPDQGKHDY\WUXFNVDQGWKHVXSHUFKDUJHG+(0,9/HQJLQHFDOOHG
+HOOFDWLVXVHGIRULWV657SHUIRUPDQFHYHKLFOHV 0
2017
2018
2019
2020
2021
2022
2023
2024
)&$SODQQHGWRODXQFKDYROW95DPWUXFNDQG-HHS:UDQJOHULQEXW
ZH QRZ H[SHFW ODXQFK FORVHU WR +RZHYHU WKH SURJUDPV FRQWLQXH WR EH
GHOD\HG 7KH 9 DUFKLWHFWXUH ZLOO EHFRPH D PDMRU WHFKQRORJ\ IRU )&$ WR DVVLVW
WKHFRPSDQ\LQLPSURYLQJWKHIOHHW
VIXHOHFRQRP\
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$$QDO\VLV
3URGXFWLRQ%\5HJLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
)&$*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
)&$
6RXWK$VLD
*OREDO(QJLQH&DSDFLW\$QDO\VLV
9ROXPHV
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$$QDO\VLV
1RUWK$PHULFD(QJLQH3ODQW/RFDWLRQV
)&$
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$$QDO\VLV
5HJLRQDO3ODQW&DSDFLW\$QDO\VLV
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
)&$
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$$QDO\VLV
)XHO7\SH OEM vs Regional
Fuel Type
,WLVOLNHO\WKHQH[WJHQ5DP'7ZLOOODXQFKZLWKWKH9YDULDQWRQO\EHFDXVHRI 120%
WKHOLJKWGXW\GLHVHOLVVXHVWKH\DUHFXUUHQWO\H[SHULHQFLQJ7KH/VWDUWVWRSLV
UXPRUHGQRWWREHUHDG\DQGZLOOOLNHO\EHGHOD\HGVHYHQRUHLJKWPRQWKV
100%
80%
Market Share
60% FCA Gas
North America Gas
North America Diesel
40% FCA Diesel
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
)&$
Weighted Average
7KH/),5(HQJLQHKDVDWXUERFKDUJHGYDULDQWZKLFKUHVXOWVLQDYHU\
FRPSHWLWLYHSRZHUGHQVLW\)&$
V0XOWL$LUHOHFWURK\GUDXOLFYDOYHDFWXDWLRQV\VWHP
DOVRFRQWULEXWHGWRWKLVHQJLQH
VKLJKHUSRZHUOHYHO
40.0
North America
)&$
VQHZ+855,&$1(HQJLQHDF\OLQGHUWXUERFKDUJHGHQJLQHZLOODOVREXPS FCA
XSWKHDYHUDJHSRZHUGHQVLW\IRU)&$
V1RUWK$PHULFDQIOHHW
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
'LVSODFHPHQW OEM vs Regional
Displacement
7KLVFKDUWVKRZVWKDW)LDW&KU\VOHU$XWRPRELOHV)&$FRQWLQXHVWRH[FHHGWKH 4.0
1RUWK$PHULFDQDYHUDJHIRUHQJLQHGLVSODFHPHQW
7KLVLVWKHUHVXOWRI)&$
VYHKLFOHSRUWIROLRZKLFKVWLOOFRQVLVWVKHDYLO\RIWUXFNV
3.0
Weighted Avearage
689VDQGODUJHFDUV
Displacement
2.0
FCA
North America
1.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$$QDO\VLV
80.0
North America
60.0
FCA
40.0
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
)&$
&\OLQGHUV OEM vs Regional
Cylinders
7KLVFKDUWVKRZVWKDW)LDW&KU\VOHU)&$FRQWLQXHVWRH[FHHGWKH1RUWK$PHULFDQ 6.0
DYHUDJHIRUHQJLQHVL]H)&$ZLOOFRQWLQXHWRLPSURYHLWVF\OLQGHUHQJLQHVLQ
1RUWK$PHULFDDQGZLOORIIHUDGGLWLRQDOWXUERFKDUJHGHQJLQHVZKLFKZLOONHHSWKH
WUHQGPRYLQJGRZQIRUWKHFRPSDQ\
Number of Cylinders
Weighted Average
4.0
FCA
North America
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
$VSLUDWLRQ OEM vs Regional
Aspiration
7KH/),5(HQJLQHKDVERWKWXUERFKDUJHGDQGQRQWXUERFKDUJHGYDULDQWVDQG 100.0%
LVFXUUHQWO\WKHRQO\WXUERFKDUJHGJDVROLQHHQJLQHIRU)LDW&KU\VOHU)&$LQ1RUWK
$PHULFD
80.0%
:HDOVRH[SHFW)&$WRODXQFKDWXUERFKDUJHGYHUVLRQRIWKH3(17$67$59
Market Share
HQJLQHOLNHO\LQZKLFKLVUHIHUUHGWRDV*0(7
60.0%
FCA Natural
North America Turbo
North America Natural
40.0% FCA Turbo
North America Super
FCA Super
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$$QDO\VLV
+\EULG8VDJH OEM vs Regional
Hybrid Usage
)LDW&KU\VOHU$XWRPRELOHV)&$KDVSXEOLFO\PHQWLRQHGWKHOLNHOLKRRGRIYROW 30.0%
K\EULGDSSOLFDWLRQVWRMRLQWKHSOXJLQK\EULGHOHFWULFYHKLFOH3+(9PLQLYDQ:H
H[SHFWWKHDUULYDODIWHUEXWYDULRXVPRGHO623GHOD\VFRXOGSXVKEDFNWKDW
25.0%
GDWH
20.0%
Market Share
)&$ZLOOKDYHWRXVHDFRQVLGHUDEOHDPRXQWRIK\EULGSRZHUWUDLQVWRKHOSPHHW
XSFRPLQJFRUSRUDWHDYHUDJHIXHOHFRQRP\&$)(UHJXODWLRQV%HFDXVH
UHJXODWLRQVDUHEDVHGRQVDOHVDQG)&$KDVEHHQYHU\VXFFHVVIXOPRYLQJODUJHU 15.0% FCA Hybrid-Mild
North America Hybrid-Full
GLVSODFHPHQWHQJLQHVDQGODUJHSLFNXSVWKHFRPSDQ\ZLOOQHHGWRXVHD FCA Hybrid-Full
FRPSUHKHQVLYHIXHOHIILFLHQF\VWUDWHJ\7KHUHIRUHZHH[SHFWPLOGK\EULGPRGHOV 10.0% North America Hybrid-Mild
IURP&KU\VOHUWR-HHS7KHDOOQHZ&KU\VOHU3DFLILFDIRUPHUO\NQRZQDVWKH7RZQ
DQG&RXQWU\PLQLYDQKDVEHHQODXQFKHGDQGQRZ)&$ZLOORFFXS\DVHJPHQW 5.0%
ZKHUHWKHUHLVFXUUHQWO\QRFRPSHWLWLRQ7KH3+(9PLQLYDQLVEHLQJPDUNHWHGDV
RQO\DK\EULGQRWDSOXJLQK\EULGVLQFH)&$IHHOVWKDWFRQVXPHUVDVVRFLDWHWKH
0.0%
WHUPSOXJLQZLWKUDQJHDQ[LHW\
2017
2018
2019
2020
2021
2022
2023
2024
$W&(6)&$GHEXWHGDQDOOHOHFWULFYHKLFOHFRQFHSWFDOOHGWKH3RUWDO7KH
3RUWDOFRQFHSWLVVDLGWRKDYHVHOIGULYLQJFDSDELOLW\ZLWKPRUHWKDQPLOHVRI
UDQJHDQGIHDWXUHVDGHVLJQDLPHGGLUHFWO\DWWKHPLOOHQQLDOJHQHUDWLRQ
)&$
Market Share
60%
North America
40% FCA
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
9DULDEOH9DOYH7LPLQJ OEM vs Regional
Variable Valve Timing
)LDW&KU\VOHULVFXUUHQWO\XVLQJLWV0XOWL$LUYDOYHWUDLQRQWKH/),5(WXUERHQJLQH 100%
DQGWKH/:25/'HQJLQHLQ1RUWK$PHULFDKRZHYHUWKHUHDUHQRSURGXFWLRQ
SODQV\HWWKDWZHDUHDZDUHRIIRURWKHUHQJLQHV
80%
Market Share
60%
FCA
40% North America
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$$QDO\VLV
5HJLRQDO(QJLQH6QDSVKRW
)&$
/
*0( /9'2+&
/
/
*0( /9'2+&
/
/
3(17$67$5 /9'2+&
9
/9'2+&
9 9
/9'2+&
9
+(0,9 /92+99
/92+99
9
/92+99
2+99 /92+9
9
9
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$),5()RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
50
40
/962+&/
3ODWIRUP
Thousands
30
20
10
0
2017
2018
2019
2020
2021
2022
2023
2024
)&$
3URGXFWLRQ2XWORRN
:HKDYHUHFHQWO\KHDUGWKDW)&$ZLOOVWRSSURGXFLQJWKLVHQJLQHLQ'XQGHHPLGZD\WKURXJK7KHIRUHFDVWZLOOEHDGMXVWHGWRUHIOHFWWKLVFKDQJH
3ODWIRUP6QDSVKRW
7RS9HKLFOH )&$-HHS&RPSDVV
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >3&@
9ROXPH
)&$-HHS5HQHJDGH>
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
3&@
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW )&$)LDW))>3&@
)&$'RGJH'DUW3)>
0D[3RZHUKS 0D[7RUTXH1P
3&@
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ 62+& %ORFN0DWHULDO ,URQ 3ODQWV 'XQGHH0,
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP 0), &RQILJXUDWLRQ /
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$7&,
/D\RXW ))7
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$),5()RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
),5(
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
)&$
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/962+&/
)&$'RGJH'DUW3)>
3&@
)&$)LDW))>3&@
)&$-HHS&RPSDVV>
3&@
)&$-HHS5HQHJDGH>
3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
'XQGHH0,8QLWHG6WDWHV
)&$
/962+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/962+&/
),5(7RWDO
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$),5()RUHFDVW
(QJLQH'HOWDVE\$SSOLFDWLRQ
/962+&/
)&$-HHS&RPSDVV>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
)&$-HHS&RPSDVV>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$-HHS5HQHJDGH>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
)&$-HHS5HQHJDGH>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$-HHS5HQHJDGH>3&@ 'URS (QJLQH$SSOLFDWLRQ
)&$-HHS5HQHJDGH>3&@ 'URS 9HKLFOH/LIHF\FOH
)&$
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$*0()RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
600
/9'2+&/
400 /9'2+&/
Thousands
/9'2+&/
3ODWIRUP
200
0
2017
2018
2019
2020
2021
2022
2023
2024
)&$
3URGXFWLRQ2XWORRN
*0(LVXQGHUUHYLHZ:HKDYHEHHQWROG*0(7KDVEHHQFDQFHOHGDQG*0(7FRQWLQXHVWREHSXVKHGEDFN7KHIRUHFDVWZLOOEHXSGDWHGDIWHUIXUWKHULQTXLU\
3ODWIRUP6QDSVKRW
7RS9HKLFOH )&$-HHS*UDQG
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ &KHURNHH:/>3&@
9ROXPH
)&$-HHS&KHURNHH./
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
>3&@
)&$&KU\VOHU3DFLILFD58>
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
3&@
)&$-HHS&RPSDVV03
0D[3RZHUKS 0D[7RUTXH1P
>3&@
)&$&KU\VOHU3DFLILFD59>
0D[3RZHUN: 9DOYHV&\OLQGHU
3&@
9DOYHWUDLQ '2+&62+& %ORFN0DWHULDO $OXPLQXP 3ODQWV 6DOWLOOR
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP 7UHQWRQ0,
)XHO6\VWHP ', &RQILJXUDWLRQ ///
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 7&,7&,
/D\RXW ))7)5/
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$*0()RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
*0(*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
)&$
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
)&$-HHS&RPSDVV03>
3&@
/9'2+&/
)&$&KU\VOHU/;>
3&@
)&$&KU\VOHU3DFLILFD58>
3&@
)&$&KU\VOHU3DFLILFD59>
3&@
)&$'RGJH&KDOOHQJHU*$>
3&@
)&$'RGJH&KDUJHU*'>
3&@
)&$'RGJH'XUDQJR:'
>3&@
)&$-HHS&KHURNHH./>
3&@
)&$-HHS&KHURNHH./>
3&@
)&$-HHS&RPSDFW3LFNXS-7
>/&9@
)&$-HHS&RPSDVV03>
3&@
)&$-HHS*UDQG
&KHURNHH:.>3&@
)&$-HHS*UDQG
&KHURNHH:/>3&@
)&$-HHS*UDQG
:DJRQHHU:6>3&@
)&$-HHS:DJRQHHU:6>
3&@
)&$-HHS:UDQJOHU
8QOLPLWHG-/>3&@
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$*0()RUHFDVW
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
)&$-HHS:UDQJOHU-/>
3&@
/9'2+&/
)&$-HHS*UDQG
&KHURNHH:/>3&@
3URGXFWLRQE\3ODQW
)&$
9ROXPHV
$QQXDOL]HG
9ROXPH
6DOWLOOR0H[LFR)&$
/9'2+&/
7UHQWRQ0,8QLWHG6WDWHV
)&$
/9'2+&/
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
/9'2+&/
*0(7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
)&$-HHS&KHURNHH./>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)&$-HHS*UDQG&KHURNHH:.>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$-HHS*UDQG&KHURNHH:/>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)&$-HHS*UDQG:DJRQHHU:6>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/9'2+&/
)&$&KU\VOHU/;>3&@ 'URS (QJLQH$SSOLFDWLRQ
)&$&KU\VOHU/;>3&@ 'URS 9HKLFOH/LIHF\FOH
)&$'RGJH'XUDQJR:'>3&@ 'URS (QJLQH$SSOLFDWLRQ
)&$'RGJH'XUDQJR:'>3&@ 'URS 9HKLFOH/LIHF\FOH
)&$-HHS*UDQG&KHURNHH:/>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
)&$-HHS*UDQG:DJRQHHU:6>3&@ 'URS 9HKLFOH/LIHF\FOH
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$*0()RUHFDVW
(QJLQH'HOWDVE\$SSOLFDWLRQ
)&$-HHS*UDQG&KHURNHH:/>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)&$-HHS*UDQG:DJRQHHU:6>3&@ 'URS (QJLQH$SSOLFDWLRQ
)&$-HHS*UDQG:DJRQHHU:6>3&@ 'URS 9HKLFOH/LIHF\FOH
)&$
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$+(0,9)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
500
400
/92+99
/92+99
Thousands
3ODWIRUP
200
100
0
2017
2018
2019
2020
2021
2022
2023
2024
)&$
3URGXFWLRQ2XWORRN
)LDW&KU\VOHU$XWRPRELOHV)&$DSSHDUVIRFXVHGRQWKH+(0,DVLWVORQH9HQJLQHDQGFRQWLQXHVWRXVHWKH/DVWKHKLJKYROXPH9HQJLQHDOWKRXJKLWQRZKDV
ODUJHUGHULYDWLYHV)LDWKDVODXQFKHGDODUJHU/9WKDWZLOOEHXVHGIRUPHGLXPDQGKHDY\WUXFNV7KLVLVDGLIIHUHQWHQJLQHWKDQWKH/HQJLQHWKDWSRZHUVLWV657
YHKLFOHVDQGLWZLOOXVHPDQ\FDUU\RYHUSDUWVIURPWKHFXUUHQW/7KHHQJLQHLVFDOOHGWKH/+HDY\'XW\DOVRUHIHUUHGWRDV%LJ*DV
)&$KDVDOVRVWDUWHGSURGXFWLRQRQDQHZ/9VXSHUFKDUJHGHQJLQHWKDWWKDWZLOOOLNHO\UHSODFHWKHFXUUHQW/HQJLQHLQLWV657SHUIRUPDQFHYHKLFOHV7KLVHQJLQH
FDOOHG+HOO&DWODXQFKHGDWDVWDJJHULQJKSIRUWKH&KDOOHQJHUDQG&KDUJHUYHKLFOHV
3ODWIRUP6QDSVKRW
7RS9HKLFOH )&$5DP'7>
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ /&9@
9ROXPH
)&$5DP'-
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
>/&9@
)&$5DP'6>
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
/&9@
)&$5DP'8>
0D[3RZHUKS 0D[7RUTXH1P
/&9@
)&$-HHS*UDQG
0D[3RZHUN: 9DOYHV&\OLQGHU
&KHURNHH:/>3&@
9DOYHWUDLQ 2+9 %ORFN0DWHULDO ,URQ 3ODQWV 6DOWLOOR
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP 0), &RQILJXUDWLRQ 9
)XHO7\SH *$6*$6&1* 7RWDO9DOYHV
$VSLUDWLRQ 1$6&,
/D\RXW )5/
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$+(0,9)RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
+(0,9
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
)&$
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/92+99
)&$&KU\VOHU/;>
3&@
)&$'RGJH&KDOOHQJHU*$>
3&@
)&$'RGJH&KDOOHQJHU/$>
3&@
)&$'RGJH&KDUJHU*'>
3&@
)&$'RGJH&KDUJHU/'>
3&@
)&$'RGJH'XUDQJR:'
>3&@
)&$'RGJH'XUDQJR:'
>3&@
)&$-HHS*UDQG
&KHURNHH:.>3&@
)&$-HHS*UDQG
&KHURNHH:/>3&@
)&$-HHS*UDQG
:DJRQHHU:6>3&@
)&$5DP'6>
/&9@
)&$5DP'7>
/&9@
)&$5DP'8>
/&9@
)&$5DP'->
/&9@
)&$5DP'.>
/&9@
/92+99
)&$'RGJH&KDOOHQJHU*$>
3&@
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$+(0,9)RUHFDVW
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
)&$'RGJH&KDOOHQJHU/$>
3&@
)&$'RGJH&KDUJHU*'>
3&@
)&$'RGJH&KDUJHU/'>
3&@
)&$-HHS*UDQG
&KHURNHH:.>3&@
/92+99
)&$
)&$'RGJH&KDOOHQJHU/$>
3&@
)&$'RGJH&KDUJHU/'>
3&@
)&$-HHS*UDQG
&KHURNHH:.>3&@
)&$5DP'->
/&9@
)&$5DP'.>
/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
6DOWLOOR0H[LFR)&$
/92+99
/92+99
/92+99
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/92+99
/92+99
/92+99
+(0,97RWDO
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$+(0,9)RUHFDVW
(QJLQH'HOWDVE\$SSOLFDWLRQ
/92+99
)&$'RGJH'XUDQJR:'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)&$-HHS*UDQG&KHURNHH:.>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$-HHS*UDQG&KHURNHH:/>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)&$-HHS*UDQG:DJRQHHU:6>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$5DP'6>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/92+99
)&$-HHS*UDQG&KHURNHH:.>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/92+99
)&$-HHS*UDQG&KHURNHH:.>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$2+99)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
1
/92+99
0 3ODWIRUP
Thousands
0
2017
2018
2019
2020
2021
2022
2023
2024
)&$
3URGXFWLRQ2XWORRN
7KH/9LVDVVHPEOHGDWWKH&RQQHU$YHQXH0LFKLJDQSODQWIRUXVHLQWKH'RGJH9LSHU3URGXFWLRQRIWKHODVWJHQHUDWLRQ9LSHUDQGWKH/9FHDVHGDWWKHHQG
RI
&KU\VOHUUHLQWURGXFHGWKH9LSHULQZLWKDQXSJUDGHG/9UDWHGDWPRUHWKDQKRUVHSRZHUDQGIRRWSRXQGVRIWRUTXH
7KLVHQJLQHZLOOFRQWLQXHWREHEXLOWLQORZYROXPHVXQWLOWKH9LSHUHQGVSURGXFWLRQLQ
3ODWIRUP6QDSVKRW
7RS9HKLFOH )&$'RGJH9LSHU='>
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 3&@
9ROXPH
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
0D[3RZHUKS 0D[7RUTXH1P
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ 2+9 %ORFN0DWHULDO $OXPLQXP,URQ 3ODQWV &RQQRU$YHQXH0,
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP,URQ
)XHO6\VWHP 0), &RQILJXUDWLRQ 999
)XHO7\SH *$6*$6&1* 7RWDO9DOYHV
$VSLUDWLRQ 1$
/D\RXW )5/
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$2+99)RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
2+99
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
)&$
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/92+99
)&$'RGJH9LSHU='>
3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
&RQQRU$YHQXH0,8QLWHG
6WDWHV)&$
/92+99
)RUHFDVW9DULDQFH
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$3(17$67$5)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
1,400
1,200
/9'2+&9
1,000
/9'2+&9
Thousands
3ODWIRUP
600
400
200
0
2017
2018
2019
2020
2021
2022
2023
2024
)&$
3URGXFWLRQ2XWORRN
0D[LPXPFDSDFLW\IRUWKH3(17$67$5SODWIRUPLVVODWHGIRUHQJLQHVSHU\HDUDWWKHSODQWLQ6DOWLOOR0H[LFRDQGHQJLQHVDWWKHSODQWLQ7UHQWRQ
0LFKLJDQ)LDW&KU\VOHUDOVRDQQRXQFHGLWZLOOUHWRROWKH0DFN$YHQXH(QJLQH3ODQWLQWKH8QLWHG6WDWHVWREXLOGDWKLUGLQVWDOOPHQWRIWKH3(17$67$5HQJLQH&DSDFLW\DW
WKDWSODQWZDVSODQQHGWREHXQLWVZKHQLWODXQFKHGLQPLG
3(17$67$5*HQKDVODXQFKHGLQ,WDSSHDUVWKH/YHUVLRQZLOOHQGSURGXFWLRQDQGWKH/ZLOOEHWKHRQO\GLVSODFHPHQWLQQDWXUDOO\DVSLUDWHGPLOGK\EULG
0+(9DQGSOXJLQK\EULGHOHFWULFYHKLFOH3+(9YHUVLRQV
:HDUHDOVRIRUHFDVWLQJDWZLQWXUER/9WRVWDUWSURGXFWLRQLQODWH,WLVFXUUHQWO\EHLQJVKRZQDVSDUWRIWKH3(17$67$5SODWIRUPEXWLWLVKLJKO\SRVVLEOHWKLVLV
DQDOOQHZGHVLJQQRWEDVHGRQWKHFXUUHQW3(17$67$5HQJLQH:HDUHVWLOOLQYHVWLJDWLQJ
3ODWIRUP6QDSVKRW
7RS9HKLFOH )&$-HHS:UDQJOHU
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 8QOLPLWHG-/>3&@
9ROXPH
)&$&KU\VOHU3DFLILFD58>
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
3&@
)&$-HHS*UDQG
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
&KHURNHH:.>3&@
)&$5DP'7>
0D[3RZHUKS 0D[7RUTXH1P
/&9@
)&$-HHS*UDQG
0D[3RZHUN: 9DOYHV&\OLQGHU
&KHURNHH:/>3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV 0DFN$YHQXH
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP 6DOWLOOR
)XHO6\VWHP ',0), &RQILJXUDWLRQ 9 7UHQWRQ0,
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 7&,1$
/D\RXW ))7)5/
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$3(17$67$5)RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
3(17$67$5
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
)&$
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
)&$&KU\VOHU/;>
3&@
)&$-HHS:UDQJOHU
8QOLPLWHG-.>3&@
)&$-HHS:UDQJOHU-.>
3&@
/9'2+&9
)&$-HHS&KHURNHH./>
3&@
/9'2+&9
)&$&KU\VOHU8)>
3&@
)&$&KU\VOHU/;>
3&@
)&$&KU\VOHU/;>
3&@
)&$&KU\VOHU$VSHQ5'>
3&@
)&$&KU\VOHU3DFLILFD58>
3&@
)&$&KU\VOHU3DFLILFD59>
3&@
)&$&KU\VOHU7RZQ
&RXQWU\57>3&@
)&$'RGJH&DUDYDQ57>
3&@
)&$'RGJH&KDOOHQJHU*$>
3&@
)&$'RGJH&KDOOHQJHU/$>
3&@
)&$'RGJH&KDUJHU*'>
3&@
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$3(17$67$5)RUHFDVW
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
)&$'RGJH&KDUJHU/'>
3&@
)&$'RGJH'XUDQJR:'
>3&@
)&$'RGJH'XUDQJR:'
>3&@
)&$'RGJH-RXUQH\-&>
3&@
)&$-HHS&KHURNHH./>
)&$
3&@
)&$-HHS&RPSDFW3LFNXS-7
>/&9@
)&$-HHS*UDQG
&KHURNHH:.>3&@
)&$-HHS*UDQG
&KHURNHH:/>3&@
)&$-HHS*UDQG
:DJRQHHU:6>3&@
)&$-HHS:DJRQHHU:6>
3&@
)&$-HHS:UDQJOHU
8QOLPLWHG-.>3&@
)&$-HHS:UDQJOHU
8QOLPLWHG-/>3&@
)&$-HHS:UDQJOHU-.>
3&@
)&$-HHS:UDQJOHU-/>
3&@
)&$0DVHUDWL/HYDQWH0
>3&@
)&$5DP'6>
/&9@
)&$5DP'7>
/&9@
)&$5DP'8>
/&9@
)&$5DP3UR0DVWHU9)>
/&9@
36$5DP3UR0DVWHU9)
>/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
0DFN$YHQXH8QLWHG6WDWHV
)&$
/9'2+&9
/9'2+&9
/9'2+&9
6DOWLOOR0H[LFR)&$
/9'2+&9
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$3(17$67$5)RUHFDVW
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
7UHQWRQ0,8QLWHG6WDWHV
)&$
/9'2+&9
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
)&$
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/9'2+&9
/9'2+&9
3(17$67$57RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&9
)&$-HHS&KHURNHH./>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&9
)&$'RGJH'XUDQJR:'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)&$'RGJH-RXUQH\-&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$-HHS*UDQG&KHURNHH:.>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$-HHS*UDQG&KHURNHH:/>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)&$-HHS*UDQG:DJRQHHU:6>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$0DVHUDWL/HYDQWH0>3&@ $GG (QJLQH$SSOLFDWLRQ
)&$0DVHUDWL/HYDQWH0>3&@ $GG 9HKLFOH/LIHF\FOH
)&$5DP'6>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$:25/'(1*,1(/)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
500
400
/9'2+&/
/962+&/
Thousands
200
100
0
2017
2018
2019
2020
2021
2022
2023
2024
)&$
3URGXFWLRQ2XWORRN
2ULJLQDOO\EDVHGRQWKH+\XQGDL7+(7$HQJLQHSURJUDPWKH:25/'(1*,1(SODWIRUPLVSURGXFHGVHSDUDWHO\E\+\XQGDLDQG&KU\VOHULQ1RUWK$PHULFDDQGE\
0LWVXELVKLLQ-DSDQ
)&$
VFXUUHQWYHUVLRQRIWKH:25/'HQJLQHLVFDOOHG7,*(56+$5.7KHUHDUHWZRYHUVLRQVRIWKLVHQJLQHD/'2+&HQJLQHWKDWGRHVQRWXVH)LDW
V0XOWL$LU
WHFKQRORJ\DQGD/62+&HQJLQHWKDWXVHV0XOWL$LURQWKHLQWDNHVLGH%RWKHQJLQHVDUHEXLOWDWWKH'XQGHHSODQW
3ODWIRUP6QDSVKRW
7RS9HKLFOH )&$-HHS&KHURNHH./
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >3&@
9ROXPH
)&$-HHS&RPSDVV03>
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
3&@
)&$-HHS&KHURNHH./>
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
3&@
)&$-HHS5HQHJDGH>
0D[3RZHUKS 0D[7RUTXH1P
3&@
)&$-HHS&RPSDVV>
0D[3RZHUN: 9DOYHV&\OLQGHU
3&@
9DOYHWUDLQ '2+&62+& %ORFN0DWHULDO $OXPLQXP 3ODQWV 'XQGHH0,
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP 6DOWLOOR
)XHO6\VWHP 0), &RQILJXUDWLRQ / 7UHQWRQ0,
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$
/D\RXW ))7
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$:25/'(1*,1(/)RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
:25/'
(1*,1(/
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
)&$
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
)&$'RGJH'DUW3)>
3&@
)&$-HHS&KHURNHH.>
3&@
)&$-HHS&RPSDVV>
3&@
)&$-HHS&RPSDVV0.>
3&@
)&$-HHS3DWULRW0.>
3&@
/9'2+&/
)&$-HHS&KHURNHH.>
3&@
)&$-HHS&RPSDVV0.>
3&@
)&$-HHS3DWULRW0.>
3&@
/962+&/
)&$&KU\VOHU8)>
3&@
)&$'RGJH'DUW3)>
3&@
)&$'RGJH-RXUQH\-&>
3&@
)&$)LDW;>3&@
)&$)LDW7RUR>/&9@
)&$)LDW7RUR>
/&9@
)&$-HHS&KHURNHH./>
3&@
)&$-HHS&KHURNHH./>
3&@
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)&$:25/'(1*,1(/)RUHFDVW
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
)&$-HHS&RPSDVV>
3&@
)&$-HHS&RPSDVV03>
3&@
)&$-HHS&RPSDVV03>
3&@
)&$-HHS5HQHJDGH>
3&@
)&$-HHS5HQHJDGH>
)&$
3&@
)&$-HHS5HQHJDGH
>3&@
)&$5DP3UR0DVWHU&LW\
>/&9@
)&$5DP3UR0DVWHU
&LW\>/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
'XQGHH0,8QLWHG6WDWHV
)&$
/9'2+&/
/9'2+&/
/962+&/
6DOWLOOR0H[LFR)&$
/962+&/
7UHQWRQ0,8QLWHG6WDWHV
)&$
/962+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/962+&/
:25/'(1*,1(/7RWDO
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)&$:25/'(1*,1(/)RUHFDVW
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
)&$-HHS&RPSDVV>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/962+&/
)&$'RGJH-RXUQH\-&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$)LDW;>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$)LDW7RUR>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$)LDW7RUR>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$-HHS&KHURNHH./>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)&$-HHS&RPSDVV>3&@ $GG (QJLQH$SSOLFDWLRQ
)&$-HHS&RPSDVV>3&@ $GG 9HKLFOH/LIHF\FOH
)&$-HHS&RPSDVV03>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)&$-HHS5HQHJDGH>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)&$-HHS5HQHJDGH>3&@ 'URS (QJLQH$SSOLFDWLRQ
)&$
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
3URGXFWLRQ6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
3,000
2,500
&KLKXDKXD0H[LFR
2,000 &KLKXDKXD0H[LFR
Thousands
&OHYHODQG2+8QLWHG6WDWHV
1,500 &OHYHODQG2+8QLWHG6WDWHV
'HDUERUQ0,8QLWHG6WDWHV
1,000 (VVH[2QWDULR&DQDGD
/LPD2+8QLWHG6WDWHV
500 2DN3DUN8QLWHG6WDWHV
5RPHR0,8QLWHG6WDWHV
0
2017
2018
2019
2020
2021
2022
2023
2024
:LQGVRU2QWDULR&DQDGD
)RUG7RWDO
)RUG
9DOHQFLD 6SDLQ WR &OHYHODQG 2KLR 8QLWHG 6WDWHV 3URGXFWLRQ RI WKLV HQJLQH
EHJDQ LQ ODWH DQG SURGXFWLRQ RI WKH ODUJHUGLVSODFHPHQW / (FR%RRVW
YDULDQWIROORZHGLQ)RUGLVDOVRORRNLQJDWWKHQH[WJHQHUDWLRQYHUVLRQRIWKLV 0.8
Production in Millions
HQJLQHFDOOHG0DYHULFN0RUHLQIRUPDWLRQRQWKDWLVLQWKHSODWIRUPVHFWLRQRIWKH
DQDO\VLV
0.6
DURATEC35
7KHFXUUHQW/QDWXUDOO\DVSLUDWHGHQJLQHIURPWKH'85$7(&+(SODWIRUPWKH DRAGON
EDVH HQJLQH LQ WKH (VFDSH DQG )XVLRQ ZLOO FRQWLQXH WR EH SURGXFHG ZLWK VWURQJ 0.4 NANO
DURATEC HE
YROXPHVDWWKHSODQWLQ&KLKXDKXD0H[LFRWKURXJK3URGXFWLRQLVVFKHGXOHG MODULAR
WR HQG DOWKRXJK ZH KDYH KHDUG UXPEOLQJV )RUG PD\ VHHN WR FRQWLQXH SURGXFLQJ
WKDWHQJLQH 0.2
7KH'5$*21LVDQHZHQJLQHEHLQJGHYHORSHGLQ(XURSH7KLV//HQJLQHLV 0
WDUJHWHG IRU SURGXFWLRQ LQ %UD]LO ,QGLD &KLQD 5XVVLD WKH 8QLWHG .LQJGRP DQG
2017
2018
2019
2020
2021
2022
2023
2024
1RUWK $PHULFD 7KLV HQJLQH ZRXOG UHSODFH PXFK RI WKH 0), 6,*0$ HQJLQH
V
YROXPH 7KH HQJLQH ZLOO DOVR UHFHLYH VWURQJ UHSUHVHQWDWLRQ LQ &VHJPHQW K\EULG
YDULDQWVDVZHOO:HZLOOUHSRUWPRUHRQWKLVGHYHORSPHQWLQWKHFRPLQJPRQWKV
)RUGZLOOFRQWLQXHZLWKWKHUHFHQWO\ODXQFKHG1$129HQJLQHSODWIRUPEXLOWDWWKH
/LPD (QJLQH 3ODQW LQ 2KLR LQ WKH 8QLWHG 6WDWHV 7KHUH DUH WZR YHUVLRQV RI WKLV
HQJLQHD/DQGD/DQGLWDSSHDUVWKHODUJHUZLOOEHUHVHUYHGIRUWKH/LQFROQ
EUDQG
)RUG ZLOO DOVR FRQWLQXH ZLWK '85$7(& 9 HQJLQHV LQ QDWXUDOO\ DVSLUDWHG DQG
WXUERFKDUJHGYHUVLRQV
)RUG KDV DQQRXQFHG LW ZLOO EH DGGLQJ QHZ HOHFWULILHG YHKLFOHV DQG LQYHVWLQJ
86'ELOOLRQLQWKHQH[WILYH\HDUV:HH[SHFWPDQ\RIWKHVHQHZYHKLFOHVWREH
YHUVLRQVRIFXUUHQWPRGHOVEXWLWGRHVVKRZWKHFRQWLQXHGFRPPLWPHQW)RUGKDV
WR HOHFWULILFDWLRQ 7KH FRPSDQ\ KDV DQQRXQFHG SODQV IRU D 3ROLFH 5HVSRQGHU
)XVLRQ +\EULG 7UDQVLW &XVWRP SOXJLQ K\EULG ) 0XVWDQJ DQG D VHFRQG
SROLFH K\EULG YHKLFOH WKDW ZH H[SHFW WR EH DQ ([SORUHU $OVR D PLOH EDWWHU\
HOHFWULF YHKLFOH %(9 LV H[SHFWHG WR EH SURGXFHG LQ )ODW 5RFN 0LFKLJDQ 8QLWHG
6WDWHV
8QGHU WKH )RUG 6PDUW 0RELOLW\ VWUDWHJ\ WKH FRPSDQ\ KDV VWDWHG SODQV WR EH D
OHDGHU LQ YHKLFOH DXWRQRP\ FRQQHFWLYLW\ PRELOLW\ FXVWRPHU H[SHULHQFH DQG
DQDO\WLFV 1HZ )RUG &(2 -LP +DFNHWW PD\ DFFHOHUDWH WKHVH SODQV %\ WKH
FRPSDQ\GHVLUHVWRKDYHDYHKLFOHDYDLODEOHZLWKRXWDVWHHULQJZKHHOJDVSHGDO
RUEUDNHSHGDOZKLFKRSHUDWHVLQDVSHFLILFJHRIHQFHGDUHDIRUULGHVKDULQJRUULGH
KDLOLQJ%\WKHHQGRI)RUGH[SHFWVWRWULSOHLWVDXWRQRPRXVYHKLFOHWHVWIOHHW
WR)XVLRQ+\EULGVHGDQVDQGZLOOLQFUHDVHWKDWWRE\
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
3URGXFWLRQ%\5HJLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
)RUG*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
*OREDO(QJLQH&DSDFLW\$QDO\VLV
)RUG
9ROXPHV
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
*OREDO(QJLQH&DSDFLW\$QDO\VLV
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
)RUG
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
1RUWK$PHULFD(QJLQH3ODQW/RFDWLRQV
)RUG
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
5HJLRQDO3ODQW&DSDFLW\$QDO\VLV
0IU)RUG
&KLKXDKXD
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
/,21 _ _ _ _ _ _ _ _
6&253,21 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU)RUG
&KLKXDKXD
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
'5$*21 _ _ _ _ _ _ _ _
'85$7(&+( _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU)RUG
&OHYHODQG2+
)RUG
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
'85$7(& _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU)RUG
&OHYHODQG2+
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
'85$7(&+( _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU)RUG
'HDUERUQ0,
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
'5$*21 _ _ _ _ _ _ _ _
'85$7(&+( _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU)RUG
(VVH[2QWDULR
&$1 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
02'8/$5 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU)RUG
/LPD2+
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
'85$7(& _ _ _ _ _ _ _ _
1$12 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
0IU)RUG
5RPHR0,
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
%266 _ _ _ _ _ _ _ _
%266 _ _ _ _ _ _ _ _
'85$7(& _ _ _ _ _ _ _ _
02'8/$5 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU)RUG
:LQGVRU2QWDULR
&$1 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
*RG]LOOD _ _ _ _ _ _ _ _
02'8/$5 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
)RUG
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
)XHO7\SH OEM vs Regional
Fuel Type
)RUGRIILFLDOO\HQGHGLWVUHODWLRQVKLSZLWK1DYLVWDURQ'HFHPEHUDQGQRZ 100%
PDQXIDFWXUHVLWVRZQODUJH/9GLHVHOHQJLQHFDOOHGWKH6&253,21IRULWV
6XSHU'XW\WUXFNV)RUGZLOOLQVWDOOD/F\OLQGHU380$GLHVHOHQJLQHLQWKH
7UDQVLWYDQEXWWKRVHHQJLQHVZLOOEHPDQXIDFWXUHGDW)RUG
VSODQWLQ6RXWK$IULFD 80%
Market Share
7KH)ZLOOUHFHLYHWKH//,21'LHVHOIRUWKHPRGHO\HDU7KLVHQJLQH
60%
JRHVULJKWXSDJDLQVW)&$
V5DP/(FR'LHVHOEXWJHWVPDWHGZLWK)RUG
VDOO
North America Gas
QHZDOXPLQXPSODWIRUP Ford Gas
40% Ford Diesel
North America Diesel
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
3RZHU'HQVLW\ OEM vs Regional
Power Density
$V)RUGEHJLQVWRUDPSXSLWV(FR%RRVWWXUERFKDUJHGHQJLQHVLWZLOOEHJLQWRVHH 80.0
DQLQFUHDVHLQSRZHUGHQVLW\DVWKHVPDOOHUHQJLQHVKDYHDPXFKKLJKHUSRZHU
GHQVLW\FRPSDUHGWRWKHODUJHUHQJLQHVWKH\ZLOOUHSODFH)RUGEHJDQLQWURGXFLQJ
)RUG
WXUERFKDUJHGJDVROLQHHQJLQHVLQWKHVHFRQGKDOIRIDQGZLOOFRQWLQXHWR
Weighted Average
SODWIRUP
40.0
Ford
North America
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
'LVSODFHPHQW OEM vs Regional
Displacement
,QFRQWUDVWWRWKHSRZHUGHQVLW\WUHQG)RUG
VDYHUDJHHQJLQHVL]HLVEHJLQQLQJWR 4.0
GHFOLQHDVLWODXQFKHVDQGXWLOL]HVPRUHGRZQVL]HGWXUERFKDUJHGHQJLQHV0DQ\
ODUJH9VZLOOEHUHSODFHGZLWKWXUERFKDUJHG9VZKLOHPDQ\9VZLOOEHUHSODFHG
ZLWK/V
3.0
Weighted Avearage
Displacement
2QHHQJLQHWKDWVNHZVWKLVFKDUWLVWKHQHZ)RUG6FRUSLRQGLHVHO8QWLOQRZ)RUG
KDVSXUFKDVHGODUJHGLHVHOHQJLQHVDQGWKRVHODUJH9HQJLQHVZHUHQRWFRXQWHG
LQ)RUG
VDYHUDJHHQJLQHVL]H7KHQHZ)RUGGLHVHOEXLOWLQKRXVHRIIVHWVVRPHRI 2.0
Ford
WKHJDLQVRIWKHVPDOOHUWXUERFKDUJHGHQJLQHV North America
1.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
Weighted Average
100.0
Ford
North America
50.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
&\OLQGHUV OEM vs Regional
Cylinders
%HFDXVHRI)RUG
VYHKLFOHSRUWIROLRZKLFKVWLOOLQFOXGHVPDQ\WUXFNVDQGODUJH 6.0
)RUG
689VWKHF\OLQGHUWUHQGLVDERYHDYHUDJHIRU1RUWK$PHULFD+RZHYHUMXVWOLNH
WKHGLVSODFHPHQWFKDUWRQFH)RUG
VQHZDQGVPDOOHUWXUERFKDUJHGHQJLQHVVWDUW
SURGXFWLRQDQGLQFUHDVHLQYROXPHWKHHQJLQHVL]HZLOOEHJLQWRGHFOLQH
Number of Cylinders
Weighted Average
4.0
Ford
North America
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
$VSLUDWLRQ OEM vs Regional
Aspiration
)RUGLVLPSOHPHQWLQJDGRZQVL]HDQGERRVWSODQWRPHHWIXWXUH&$)( 80.0%
UHJXODWLRQV%\FORVHWRRI)RUG
V1RUWK$PHULFDQHQJLQHSURGXFWLRQ
ZLOOLQFOXGHWXUERFKDUJLQJDYHU\VLJQLILFDQWVKLIWIURPLQ$OWKRXJKSDUW
RIWKDWYROXPHQRZLQFOXGHVSURGXFWLRQRIWKH/6&253,21GLHVHOLQ0H[LFR
WKHEXONRIWKHLQFUHDVHLVDWWULEXWHGWRJDVROLQHWXUERFKDUJHGHQJLQHV 60.0%
Market Share
Ford Turbo
40.0% North America Turbo
North America Natural
Ford Natural
North America Super
Ford Super
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
+\EULG8VDJH OEM vs Regional
Hybrid Usage
$VFRUSRUDWHDYHUDJHIXHOHFRQRP\&$)(UHJXODWLRQVEHFRPHPRUHVWULQJHQW 12.0%
)RUGSODQVWRPHHWWKHFKDOOHQJHZLWKIXOOK\EULGRIIHULQJVRILWVPRUHKLJKYROXPH
QDPHSODWHVVWDUWLQJLQ7KH)XVLRQDQG0.=DUHH[SHFWHGWREHMRLQHGE\
10.0%
K\EULGYDULDQWVRIWKH(VFDSH([SORUHU)DQGDVSHFLDO&+\EULGPRGHO
DURXQG7KLV&+\EULGZLOOOLNHO\KDYHDQH[WHQGHGUDQJHYDULDQWDVZHOO
ZKLFKZRXOGEHPRUHRIDULYDOIRUWKH&KHYUROHW9ROWWKHSOXJLQK\EULGHOHFWULF 8.0%
Market Share
YHKLFOH3+(9YROXPHFKDPSLRQLQWKH8QLWHG6WDWHV7KDWPHDQVWKHFXUUHQW&
0D[ZLOOHQGSURGXFWLRQLQWRIUHHXSFDSDFLW\DW0LFKLJDQ$VVHPEO\8QLWHG 6.0% Ford Hybrid-Full
North America Hybrid-Full
6WDWHVIRUWKHQHZPRGHOV
North America Hybrid-Mild
4.0% Ford Hybrid-Mild
3HUKDSVWKHELJJHVWVXUSULVHWRWKHSHUIRUPDQFHFRPPXQLW\ZDVWKH
DQQRXQFHPHQWRID0XVWDQJK\EULGE\1RGHWDLOVZHUHJLYHQEXWWKHUHLV 2.0%
WKHSRVVLELOLW\RIDYROWPLOGK\EULGWKDWZRXOGGHOLYHUWKHVDPH9SHUIRUPDQFH
FKDUDFWHULVWLFVZKHQPDWHGZLWKD/WXUERDQG(%RRVWEXWZHQRZWKLQNLWZLOO
0.0%
EHDWUDGLWLRQDOIXOOK\EULGZLWK3DUFKLWHFWXUH:KLOHIXHOHFRQRP\ZLOOLPSURYH
2017
2018
2019
2020
2021
2022
2023
2024
FRQVLGHUDEO\DIXOOK\EULGV\VWHPZLOODGGZHLJKWDQGFRQVLGHUDEOHV\VWHPFRVWV
8QGHUWKH)RUG6PDUW0RELOLW\VWUDWHJ\WKHFRPSDQ\KDVVWDWHGSODQVWREHD
OHDGHULQYHKLFOHDXWRQRP\FRQQHFWLYLW\PRELOLW\FXVWRPHUH[SHULHQFHDQG
DQDO\WLFV%\WKHFRPSDQ\GHVLUHVWRKDYHDYHKLFOHDYDLODEOHZLWKRXWD
VWHHULQJZKHHOJDVSHGDORUEUDNHSHGDOZKLFKRSHUDWHVLQDVSHFLILFJHRIHQFHG
DUHDIRUULGHVKDULQJRUULGHKDLOLQJ%\WKHHQGRI)RUGH[SHFWVWRWULSOHLWV
DXWRQRPRXVYHKLFOHWHVWIOHHWWR)XVLRQ+\EULGVHGDQVDQGZLOOLQFUHDVHWKDWWR
E\
)RUG
'LUHFW,QMHFWLRQ OEM vs Regional
Direct Injection
)RUG
VJDVROLQHGLUHFWLQMHFWLRQ*',YROXPHZLOOFRQWLQXHWRJURZDV)RUGLQYHVWV 100%
KHDYLO\LQWKLVWHFKQRORJ\)RUGZLOOXVH*',RQLWV(FR%RRVWHQJLQHVZLWK
WXUERFKDUJHUVDVZHOODVLWVQDWXUDOO\DVSLUDWHGHQJLQHV
80%
Market Share
60%
Ford
40% North America
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
9DULDEOH9DOYH7LPLQJ OEM vs Regional
Variable Valve Timing
)RUGOLNHPRVWRWKHUPDQXIDFWXUHUVKDVPDGH997DVWDQGDUGWHFKQRORJ\RQLWV 100%
QHZHUHQJLQHVEHFDXVHRIWKHSRZHUDQGIXHOEHQHILWVWKDW997SURYLGHV)RUGLV
EHJLQQLQJWRPLJUDWHLWVHQJLQHVWRWZLQLQGHSHQGHQWYDULDEOHYDOYHWLPLQJ7L
9&7ZKLFKSURYLGHVYDULDEOH\HWLQGHSHQGHQWWLPLQJRIWKHLQWDNHDQGH[KDXVW 80%
YDOYHVDOORZLQJPD[LPXPIXHOHFRQRP\DWSDUWWKURWWOHDQGRSWLPL]HGSRZHUDWIXOO
WKURWWOH
Market Share
60%
North America
40% Ford
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG$QDO\VLV
5HJLRQDO(QJLQH6QDSVKRW
%266 /962+&
9
9
/,21 /9'2+&
9
9
02'8/$5 /9'2+&
9
/9'2+&
9
9
/962+&
9
/9'2+&
9
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG%266)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
120
100
/962+&9
80 3ODWIRUP
Thousands
60
40
20
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH%266SODWIRUPLV)RUG
VODUJH9HQJLQHSULPDULO\IRU)6XSHU'XW\WUXFNV7KHHQJLQHKDVD62+&FRQILJXUDWLRQZLWKGXDOHTXDOYDULDEOHFDPWLPLQJ7KH
%266/HQJLQHLVWKHEDVHHQJLQHIRUWKH6XSHU'XW\WUXFNV7KH%266HQJLQHLVEXLOWVROHO\DWWKHSODQWLQ5RPHR0LFKLJDQ8QLWHG6WDWHV
)RUG
7KH/%266LVH[SHFWHGWRUHFHLYHDPLQRUXSJUDGHLQ$WWKLVWLPHQRPDMRUHQJLQHXSJUDGHVDUHH[SHFWHGDQGWKHGHWDLOVRIWKHPLQRUXSJUDGHDUHXQNQRZQ
)RUGLVDOVRUXPRUHGWREHORRNLQJDWDODUJHUYHUVLRQRIWKH%266HQJLQHSRVVLEO\/LQGLVSODFHPHQWEXWGHWDLOVDQGYHKLFOHDSSOLFDWLRQVDUHVWLOOXQFOHDU
3ODWIRUP6QDSVKRW
7RS9HKLFOH )RUG)RUG)6XSHU
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 'XW\3>/&9@
9ROXPH
)RUG)RUG(6HULHV91
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
>/&9@
)RUG)RUG)6XSHU
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
'XW\3>/&9@
)RUG)RUG)3>
0D[3RZHUKS 0D[7RUTXH1P
/&9@
)RUG)RUG)3>
0D[3RZHUN: 9DOYHV&\OLQGHU
/&9@
9DOYHWUDLQ 62+& %ORFN0DWHULDO ,URQ 3ODQWV 5RPHR0,
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP 0), &RQILJXUDWLRQ 9
)XHO7\SH *$6*$6&1**$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$
/D\RXW )5/
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG%266)RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
%266*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
)RUG
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/962+&9
)RUG)RUG(6HULHV91
>/&9@
)RUG)RUG)6XSHU
'XW\3>/&9@
)RUG)RUG)6XSHU
'XW\3>/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG)3>
/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
5RPHR0,8QLWHG6WDWHV
)RUG
/962+&9
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG%266)RUHFDVW
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/962+&9
%2667RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/962+&9
)RUG)RUG(6HULHV91>/&9@ $GG (QJLQH$SSOLFDWLRQ
)RUG)RUG(6HULHV91>/&9@ $GG 9HKLFOH/LIHF\FOH
)RUG)RUG)6XSHU'XW\3>/&9@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
)RUG
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG'5$*21)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
600
/9'2+&/
400 3ODWIRUP
Thousands
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH'5$*21LVDQHZHQJLQHEHLQJGHYHORSHGE\)RUGRXWRI(XURSHLWZLOOEHRIIHUHGLQDYDULHW\RIGLVSODFPHQWVZLWKERWKQDWXUDOO\DVSLUDWHGDQGWXUERFKDUJHG
YHUVLRQV7KHHQJLQHSODWIRUPLVWDUJHWHGIRUSURGXFWLRQLQ%UD]LO,QGLD&KLQD5XVVLDWKH8QLWHG.LQJGRPDQGQRZWKH8QLWHG6WDWHV$WWKLVWLPHRQO\WKHJDVROLQHWXER
)RUG
3ODWIRUP6QDSVKRW
7RS9HKLFOH )RUG)RUG(VFDSH&;>
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 3&@
9ROXPH
)RUG)RUG)XVLRQ&'>
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
3&@
)RUG)RUG&&89&;>
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
3&@
)RUG)RUG(FRVSRUW%;
0D[3RZHUKS 0D[7RUTXH1P
>3&@
)RUG)RUG)RFXV&>
0D[3RZHUN: 9DOYHV&\OLQGHU
3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV &KLKXDKXD
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP 'HDUERUQ0,
)XHO6\VWHP ',0), &RQILJXUDWLRQ /
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$7&,
/D\RXW ))7
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG'5$*21)RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
'5$*21
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
)RUG
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
)RUG)RUG&&89(9&;
>3&@
)RUG)RUG&&89&;>
3&@
)RUG)RUG&+(9$9&>
3&@
)RUG)RUG(FRVSRUW%;>
3&@
)RUG)RUG(VFDSH&;>
3&@
)RUG)RUG)RFXV&>
3&@
)RUG)RUG)XVLRQ&'>
3&@
)RUG/LQFROQ0.&&;>
3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
&KLKXDKXD0H[LFR)RUG
/9'2+&/
'HDUERUQ0,8QLWHG6WDWHV
)RUG
/9'2+&/
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG'5$*21)RUHFDVW
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
'5$*217RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
)RUG)RUG&&89(9&;>3&@ $GG (QJLQH$SSOLFDWLRQ
)RUG)RUG&&89(9&;>3&@ $GG 9HKLFOH/LIHF\FOH
)RUG
/9'2+&/
)RUG)RUG&+(9$9&>3&@ 'URS (QJLQH$SSOLFDWLRQ
)RUG)RUG&+(9$9&>3&@ 'URS 9HKLFOH/LIHF\FOH
)RUG)RUG)XVLRQ&'>3&@ 'URS (QJLQH$SSOLFDWLRQ
)RUG)RUG)XVLRQ&'>3&@ 'URS 9HKLFOH/LIHF\FOH
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG'85$7(&+()RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
800
/9'2+&/
Thousands
/9'2+&/
400 3ODWIRUP
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH'85$7(&+(SODWIRUPUHPDLQV)RUG
VODUJHVWF\OLQGHUHQJLQHSODWIRUPE\YROXPHLQ1RUWK$PHULFDDQGKDVSDYHGWKHZD\IRUWZRQHZ(FR%RRVWYHUVLRQVWREH
EXLOWLQ&OHYHODQG2KLR8QLWHG6WDWHV%RWKWKH/DQG/JDVROLQHWXUERGLUHFWLQMHFWLRQ*7',YHUVLRQVZLOOEHPDQXIDFWXUHGDWWKH&OHYHODQGVLWHEHJLQQLQJLQODWH
)RUG
7KHXSJUDGHSURJUDPIRUWKH*7',YHUVLRQVLVQRZUHIHUUHGWRDV0DYHULFNDQGVKRXOGODXQFKLQ7KHFDQFHOODWLRQRIWKHSULRU3LUDQKDSURJUDPZDVGXHWR
FRVWDQGWKH0DYHULFNSURJUDPZLOOVWLOOKDYHXSJUDGHVEXWZLOOEHOHVVLQWHQVLYH:HDUHDOVRKHDULQJDERXWPXOWLSOHVHWVRIYROXPHSURMHFWLRQVFXUUHQWO\ZHDUHVWLOOQRW
VXUHZKHUHWKLVPLJKWHQGXSDQGLIYROXPHVFRQWLQXHXSZKLFKHQJLQHSODWIRUPVPLJKWORVHYROXPH
3ODWIRUP6QDSVKRW
7RS9HKLFOH )RUG)RUG)RFXV&>
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 3&@
9ROXPH
)RUG)RUG)XVLRQ&'>
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
3&@
)RUG)RUG([SORUHU8>
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
3&@
)RUG)RUG)XVLRQ&'>
0D[3RZHUKS 0D[7RUTXH1P
3&@
)RUG)RUG5DQJHU3>
0D[3RZHUN: 9DOYHV&\OLQGHU
/&9@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV &KLKXDKXD
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP &OHYHODQG2+
)XHO6\VWHP ',0), &RQILJXUDWLRQ / 'HDUERUQ0,
*$6*$6&1**$6
)XHO7\SH 7RWDO9DOYHV
(*$6(*$6/3*
$VSLUDWLRQ 1$7&,
/D\RXW ))7)5/
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG'85$7(&+()RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
'85$7(&+(
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
)RUG
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
)RUG)RUG&&89&;>
3&@
)RUG)RUG&0D[&>
3&@
)RUG)RUG(FRVSRUW%>
3&@
)RUG)RUG(GJH&'>
3&@
)RUG)RUG)RFXV&>
3&@
)RUG)RUG)XVLRQ&'>
3&@
)RUG)RUG)XVLRQ&'>
3&@
)RUG)RUG.XJD&;>
3&@
)RUG)RUG0RQGHR&'>
3&@
)RUG)RUG60D[&'>
3&@
)RUG)RUG7DXUXV'>
3&@
)RUG/LQFROQ&RQWLQHQWDO'
>3&@
)RUG/LQFROQ0.;8>
3&@
)RUG/LQFROQ0.=&'>
3&@
)RUG/LQFROQ0.=&'>
3&@
/9'2+&/
)RUG)RUG([SORUHU8>
3&@
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG'85$7(&+()RUHFDVW
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
)RUG)RUG([SORUHU8>
3&@
)RUG)RUG)
6XSHU&UHZ3>/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG0XVWDQJ6>
3&@
)RUG)RUG0XVWDQJ6>
3&@
)RUG)RUG5DQJHU3>
/&9@
)RUG)RUG5DQJHU3>
/&9@
)RUG
)RUG/LQFROQ0.&&>
3&@
)RUG/LQFROQ0.&&;>
3&@
/9'2+&/
)RUG)RUG(VFDSH&>
3&@
)RUG)RUG)XVLRQ&'>
3&@
)RUG)RUG.XJD&>
3&@
)RUG)RUG0RQGHR&'>
3&@
)RUG)RUG5DQJHU3>
/&9@
)RUG)RUG5DQJHU3>
/&9@
)RUG)RUG7UDQVLW
&RQQHFW9>/&9@
)RUG/LQFROQ0.&&;>
3&@
)RUG0D]GD%7-(>
/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
&KLKXDKXD0H[LFR)RUG
/9'2+&/
/9'2+&/
&OHYHODQG2+8QLWHG
6WDWHV)RUG
/9'2+&/
/9'2+&/
'HDUERUQ0,8QLWHG6WDWHV
)RUG
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG'85$7(&+()RUHFDVW
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
)RUG
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
)RUG)RUG&&89&;>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)RUG)RUG&0D[&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)RUG)RUG)RFXV&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG)XVLRQ&'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)RUG)RUG)XVLRQ&'>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG.XJD&;>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)RUG)RUG60D[&'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&/
)RUG)RUG([SORUHU8>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG0XVWDQJ6>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG0XVWDQJ6>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)RUG/LQFROQ0.&&;>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&/
)RUG)RUG(VFDSH&;>3&@ 'URS (QJLQH$SSOLFDWLRQ
)RUG)RUG(VFDSH&;>3&@ 'URS 9HKLFOH/LIHF\FOH
)RUG)RUG)XVLRQ&'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)RUG)RUG.XJD&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
)RUG/LQFROQ0.&&;>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG'85$7(&)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
1,000
800
/9'2+&9
/9'2+&9
Thousands
3ODWIRUP
400
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH'85$7(&SODWIRUPLVWKHSULPDU\9JDVROLQHHQJLQHIRU)RUG
V1RUWK$PHULFDQOLQHXS7KLVHQJLQHSODWIRUPFRQVLVWVRI/DQG/QDWXUDOO\DVSLUDWHGHQJLQHV
DVZHOODVD/WZLQWXUER(FR%RRVWYHUVLRQ
)RUG
7KHHQJLQHSODQWLQ/LPD2KLR8QLWHG6WDWHVFXUUHQWO\SURGXFHVWKH'85$7(&HQJLQHV(FR%RRVW/HQJLQHSURGXFWLRQEHJDQDWWKH&OHYHODQG(QJLQH3ODQWLQ
WKH8QLWHG6WDWHVLQ%RWKRIWKHVHSODQWVEXLOGWKH/DQG/QDWXUDOO\DVSLUDWHGWZLQLQGHSHQGHQWYDULDEOHFDPWLPLQJHQJLQHV:HDOVRXQGHUVWDQG)RUGLV
ORRNLQJDWDGGLQJDGXDOIXHOIXHOV\VWHPIRUWKH'XSJUDGHSURJUDPVRWKLVHQJLQHZRXOGKDYHERWKSRUW0),DQGGLUHFW',LQMHFWLRQV\VWHPV
)RUGLVDOVRSODQQLQJDVPDOOHU/9HQJLQHRIIRIWKLVSODWIRUP7KLVHQJLQHZLOOEHQDWXUDOO\DVSLUDWHGDQGZLOOEHJLQWRUHSODFHWKH/HQJLQHWRRIIHUEHWWHUIXHO
HFRQRP\
)RUGLVH[SHFWHGWRXVHWKH'85$7(&*7',YHUVLRQIRULWVIXOOK\EULG)
3ODWIRUP6QDSVKRW
7RS9HKLFOH )RUG)RUG)
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 6XSHU&UHZ3>/&9@
9ROXPH
)RUG)RUG([SORUHU8>
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
3&@
)RUG)RUG7UDQVLW9>
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
/&9@
)RUG)RUG)
0D[3RZHUKS 0D[7RUTXH1P
6XSHU&UHZ3>/&9@
)RUG)RUG([SORUHU8>
0D[3RZHUN: 9DOYHV&\OLQGHU
3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV &OHYHODQG2+
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP /LPD2+
)XHO6\VWHP ',0), &RQILJXUDWLRQ 9 5RPHR0,
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 7&,1$
/D\RXW ))7)5/05/
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG'85$7(&)RUHFDVW
*OREDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
'85$7(&
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
)RUG
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
)RUG)RUG(GJH&';>
3&@
)RUG)RUG([SORUHU8>
3&@
)RUG)RUG)
6XSHU&UHZ3>/&9@
)RUG)RUG)
6XSHU&UHZ3>/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG7DXUXV'>
3&@
)RUG/LQFROQ(&898>
3&@
/9'2+&9
)RUG)RUG(GJH&'>
3&@
)RUG)RUG([SHGLWLRQ(/8
>3&@
)RUG)RUG([SHGLWLRQ
0D[8>3&@
)RUG)RUG([SHGLWLRQ
0D[8>3&@
)RUG)RUG([SHGLWLRQ8
>3&@
)RUG)RUG([SHGLWLRQ8>
3&@
)RUG)RUG([SHGLWLRQ8
>3&@
)RUG)RUG([SORUHU8>
3&@
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG'85$7(&)RUHFDVW
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
)RUG)RUG([SORUHU8>
3&@
)RUG)RUG)
6XSHU&UHZ3>/&9@
)RUG)RUG)
6XSHU&UHZ3>/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG)OH['>
3&@
)RUG)RUG*76>3&@
)RUG
)RUG)RUG0XVWDQJ6>
3&@
)RUG)RUG7DXUXV'>
3&@
)RUG)RUG7UDQVLW9>
/&9@
)RUG)RUG7UDQVLW9
>/&9@
)RUG/LQFROQ0.6'>
3&@
)RUG/LQFROQ0.7'>
3&@
)RUG/LQFROQ1DYLJDWRU/8
>3&@
)RUG/LQFROQ1DYLJDWRU/8
>3&@
)RUG/LQFROQ1DYLJDWRU
/8>3&@
)RUG/LQFROQ1DYLJDWRU8
>3&@
)RUG/LQFROQ1DYLJDWRU8
>3&@
)RUG/LQFROQ1DYLJDWRU8
>3&@
/9'2+&9
)RUG)RUG([SORUHU8>
3&@
)RUG)RUG0XVWDQJ6>
3&@
)RUG)RUG7DXUXV'>
3&@
)RUG)RUG7UDQVLW9>
/&9@
)RUG)RUG7UDQVLW9
>/&9@
)RUG/LQFROQ&RQWLQHQWDO'
>3&@
)RUG/LQFROQ0.6'>
3&@
)RUG/LQFROQ0.7'>
3&@
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG'85$7(&)RUHFDVW
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
)RUG/LQFROQ0.;8>
3&@
)RUG/LQFROQ0.=&'>
3&@
0RUJDQ0RUJDQ&ODVVLF025
*$1>3&@
3URGXFWLRQE\3ODQW
9ROXPHV
)RUG
$QQXDOL]HG
9ROXPH
&OHYHODQG2+8QLWHG
6WDWHV)RUG
/9'2+&9
/9'2+&9
/LPD2+8QLWHG6WDWHV
)RUG
/9'2+&9
/9'2+&9
5RPHR0,8QLWHG6WDWHV
)RUG
/9'2+&9
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/9'2+&9
/9'2+&9
'85$7(&7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&9
)RUG)RUG(GJH&';>3&@ $GG (QJLQH$SSOLFDWLRQ
)RUG)RUG(GJH&';>3&@ $GG 9HKLFOH/LIHF\FOH
)RUG)RUG([SORUHU8>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
)RUG)RUG([SORUHU8>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG)6XSHU&UHZ3>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG)6XSHU&UHZ3>/&9@ $GG (QJLQH$SSOLFDWLRQ
)RUG)RUG0XVWDQJ6>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
)RUG'85$7(&)RUHFDVW
(QJLQH'HOWDVE\$SSOLFDWLRQ
)RUG)RUG)6XSHU&UHZ3>/&9@ $GG 9HKLFOH/LIHF\FOH
)RUG)RUG)3>/&9@ $GG (QJLQH$SSOLFDWLRQ
)RUG)RUG)3>/&9@ $GG 9HKLFOH/LIHF\FOH
)RUG/LQFROQ(&898>3&@ $GG (QJLQH$SSOLFDWLRQ
)RUG/LQFROQ(&898>3&@ $GG 9HKLFOH/LIHF\FOH
/9'2+&9
)RUG)RUG([SORUHU8>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG)6XSHU&UHZ3>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG0XVWDQJ6>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&9
)RUG)RUG0XVWDQJ6>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
)RUG(/(&75,&)RUHFDVW
3ODWIRUP6QDSVKRW
5HJLRQDO3URGXFWLRQ
9ROXPHV
$QQXDOL]HG
20
15 /91RQH1RQH
3ODWIRUP
Thousands
10
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH)RUG)RFXVHOHFWULFYHKLFOH(9LVSRZHUHGE\DNLORZDWWOLTXLGFRROHGOLWKLXPLRQEDWWHU\7KH(QYLURQPHQWDO3URWHFWLRQ$JHQF\HVWLPDWHVDPLOHUDQJHDQG
WKHYHKLFOHKDVDWRSVSHHGRIPSK7KHEDWWHU\FDQEHUHFKDUJHGLQIRXUKRXUVXVLQJDYROWFKDUJHVWDWLRQ7KH)RFXV(9LVSURGXFHGDW)RUG
V0LFKLJDQ
)RUG
$VVHPEO\3ODQWLQ:D\QH0LFKLJDQ8QLWHG6WDWHV7KH)RFXV(9ZLOOOLNHO\EHUHSODFHGE\WKH&+\EULGLQ7KHQHZK\EULGLVDFWXDOO\H[SHFWHGWRDOVREH
IHDWXUHGDVDUDQJHH[WHQGHURU(9DVZHOODVK\EULGWULP
3ODWIRUP6QDSVKRW
7RS9HKLFOH )RUG)RUG7UDQVLW
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ &RQQHFW9>/&9@
9ROXPH
)RUG)RUG7UDQVLW
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
&RQQHFW9>/&9@
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
0D[3RZHUKS 0D[7RUTXH1P
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ 1RQH %ORFN0DWHULDO 1RQH 3ODQWV 2DN3DUN
9DULDEOH9DOYH7LPLQJ 1R +HDG0DWHULDO 1RQH
)XHO6\VWHP 1RQH &RQILJXUDWLRQ 1RQH
)XHO7\SH (OHFWULFLW\ 7RWDO9DOYHV
$VSLUDWLRQ 1RQH
/D\RXW ))7
$QQXDOL]HG
9ROXPH
(/(&75,&
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
)RUG
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/91RQH1RQH
)RUG)RUG7UDQVLW
&RQQHFW9>/&9@
)RUG)RUG7UDQVLW
&RQQHFW9>/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
2DN3DUN8QLWHG6WDWHV
$]XUH'\QDPLFV
/91RQH1RQH
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/91RQH1RQH
(/(&75,&7RWDO
9ROXPHV
$QQXDOL]HG
12
10
/9'2+&9
8 3ODWIRUP
Thousands
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH/,21LV)RUG
V/9GLHVHOHQJLQHWKDWLVXVHGLQ/DQG5RYHUYHKLFOHV7KHHQJLQHLVEXLOWDWWKH&KLKXDKXD0H[LFRSODQWEXWLVQRWLQVWDOOHGLQWRDQ\1RUWK
$PHULFDQEXLOWYHKLFOHV7KHHQJLQHLVDOVRUHIHUUHGWRDV*5,)),1
)RUG
3ODWIRUP6QDSVKRW
7RS9HKLFOH 7DWD/DQG5RYHU5DQJH
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 5RYHU/>3&@
9ROXPH
7DWD/DQG
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/ 5RYHU'HIHQGHU/>
3&@
7DWD/DQG5RYHU5DQJH
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
5RYHU6SRUW/>3&@
0D[3RZHUKS 0D[7RUTXH1P
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+& %ORFN0DWHULDO &*, 3ODQWV &KLKXDKXD
9DULDEOH9DOYH7LPLQJ 1R +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP ',&5 &RQILJXUDWLRQ 9
)XHO7\SH ',(6(/ 7RWDO9DOYHV
$VSLUDWLRQ 97&,
/D\RXW )5/
$QQXDOL]HG
9ROXPH
/,21*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
)RUG
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
7DWD/DQG
5RYHU'HIHQGHU/>
3&@
7DWD/DQG5RYHU5DQJH5RYHU
6SRUW/>3&@
7DWD/DQG5RYHU5DQJH
5RYHU/>3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
&KLKXDKXD0H[LFR)RUG
/9'2+&9
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/,217RWDO
9ROXPHV
$QQXDOL]HG
300
250
/9'2+&9
200 /9'2+&9
Thousands
/962+&9
150 3ODWIRUP
100
50
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH02'8/$59HQJLQHSODWIRUPFRQVLVWVRIPXOWLSOHHQJLQHVWKHROGHU//DQG/99HQJLQHVDQGWKHQHZHU&2<27(/9HQJLQH
)RUG
7KH/'2+&9HQJLQHFDOOHG&2<27(LVXVHGLQWKH0XVWDQJDQG)7KHHQJLQHLVEXLOWDWWKH(VVH[(QJLQH3ODQWLQ:LQGVRU&DQDGD
([FHSWIRUWKH/YDULDQWWKDWZLOOEHSURGXFHGDWWKH(VVH[(QJLQH3ODQWWKHFXUUHQW9YHUVLRQVRIWKH02'8/$5SURJUDPZLOOFHDVHSURGXFWLRQZKHQWKHILQDO
FKDSWHULQWKHORQJUXQQLQJ(FRQROLQHVWRU\ILQDOO\FRPHVWRDQHQG7KH(FRQROLQHZLOOEHWKHODVWYHKLFOHWRXVHWKHFXUUHQWHQJLQH:HDUHXQDZDUHRIDQ\QHZHQJLQHV
VODWHGIRUWKDWSODQWWKXV)RUGZLOOOLNHO\FORVHWKH:LQGVRUIDFLOLW\ZKHQWKH(FRQOLQHHQGV7KHUHLVVWLOODFKDQFH)RUGZLOOSURGXFHWKH/9HQJLQHLQVPDOOYROXPHV
IRUPRWRUKRPHFKDVVLVDSSOLFDWLRQVDQG(FRQROLQHFKDVVLVFDEYDULDQWV7KHVHYHKLFOHVDUHQRWWUDFNHGLQRXUIRUHFDVWDQGWKRVHHQJLQHVFRXOGDOVREHUHSODFHGZLWKWKH
%266/9JDVROLQHHQJLQHSURGXFHGDWWKHSODQWLQ5RPHR0LFKLJDQ8QLWHG6WDWHV
3ODWIRUP6QDSVKRW
7RS9HKLFOH )RUG)RUG)
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 6XSHU&UHZ3>/&9@
9ROXPH
)RUG)RUG)
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
6XSHU&UHZ3>/&9@
)RUG)RUG0XVWDQJ6>
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
3&@
)RUG)RUG(6HULHV91
0D[3RZHUKS 0D[7RUTXH1P
>/&9@
)RUG)RUG0XVWDQJ6>
0D[3RZHUN: 9DOYHV&\OLQGHU
3&@
9DOYHWUDLQ '2+&62+& %ORFN0DWHULDO $OXPLQXP,URQ 3ODQWV (VVH[2QWDULR
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP,URQ 5RPHR0,
)XHO6\VWHP ',0), &RQILJXUDWLRQ 99 :LQGVRU2QWDULR
&1**$6*$6
)XHO7\SH 7RWDO9DOYHV
&1**$6(*$6/3*
$VSLUDWLRQ 1$6&6&,
/D\RXW ))7)5/05/
$QQXDOL]HG
9ROXPH
02'8/$5
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
)RUG
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
)RUG)RUG([SHGLWLRQ(/8
>3&@
)RUG)RUG([SHGLWLRQ8
>3&@
)RUG)RUG)
6XSHU&UHZ3>/&9@
)RUG)RUG)
6XSHU&UHZ3>/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG0XVWDQJ6>
3&@
)RUG)RUG0XVWDQJ6>
3&@
)RUG/LQFROQ1DYLJDWRU/8
>3&@
)RUG/LQFROQ1DYLJDWRU8
>3&@
795795*ULIILWK7>
3&@
/9'2+&9
)RUG)RUG0XVWDQJ6>
3&@
)RUG)RUG0XVWDQJ6>
3&@
/962+&9
)RUG)RUG(6HULHV91
>/&9@
/9'2+&9
9ROXPHV
$QQXDOL]HG
9ROXPH
)RUG)RUG)DOFRQ(>
/&9@
/962+&9
)RUG)RUG(6HULHV91
>/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
)RUG
$QQXDOL]HG
9ROXPH
(VVH[2QWDULR&DQDGD
)RUG
/9'2+&9
5RPHR0,8QLWHG6WDWHV
)RUG
/9'2+&9
/9'2+&9
:LQGVRU2QWDULR&DQDGD
)RUG
/962+&9
/962+&9
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/9'2+&9
/962+&9
/962+&9
02'8/$57RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&9
)RUG)RUG)6XSHU&UHZ3>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG0XVWDQJ6>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG0XVWDQJ6>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&9
)RUG)RUG0XVWDQJ6>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG(6HULHV91>/&9@ 'URS 9HKLFOH/LIHF\FOH
/962+&9
)RUG)RUG(6HULHV91>/&9@ 'URS 9HKLFOH/LIHF\FOH
)RUG
9ROXPHV
$QQXDOL]HG
500
400
/9'2+&9
/9'2+&9
Thousands
200
100
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
)RUG
VQHZ9HQJLQHLVFDOOHG1$12ZLWKGLVSODFHPHQWVRI/DQG/7KH/YHUVLRQZLOOEHXVHGSULPDULO\LQ)RUGEDGJHGYHKLFOHVZLWKWKH/UHVHUYHGIRU
/LQFROQPRGHOV7KH1$12LV)RUG
VILIWK(FR%RRVWHQJLQHDQGZLOOILWEHWZHHQWKH//DQG/9WXUERFKDUJHGHQJLQHV
)RUG
7KHHQJLQHZLOOXVHDFRPSDFWHGJUDSKLWHLURQEORFNZLOOEHGLUHFWLQMHFWLRQDQGWXUERFKDUJHGDQGZLOOEHLQVWDOOHGLQERWK):'DQG5:'DSSOLFDWLRQV:H
DOVRXQGHUVWDQG)RUGLVORRNLQJDWDGGLQJDGXDOIXHOIXHOV\VWHPIRUWKH1$12XSJUDGHSURJUDPVRWKLVHQJLQHZRXOGKDYHERWKSRUW0),DQGGLUHFW',LQMHFWLRQ
V\VWHPV
7KHHQJLQHZLOOEHPDQXIDFWXUHGDWWKH/LPD(QJLQH3ODQWLQ2KLR8QLWHG6WDWHVZLWKDFDSDFLW\RIDSSUR[LPDWHO\HQJLQHVSHU\HDU
3UHYLRXVO\ZHKHDUG)RUGZDVGHVLJQLQJWKHHQJLQHVRWKDW/DQG/YDULDQWVFRXOGEHEXLOWRIIWKLVSODWIRUP:HGRQRWEHOLHYHHLWKHURIWKRVHDUHFXUUHQWO\EHLQJ
FRQVLGHUHG
7KH/1$12UHFHLYHGVWRSVWDUWWHFKQRORJ\LQWKH)7KHWHFKQRORJ\ZLOOEHVWDQGDUGDQG)RUGFODLPVWKHHQJLQH
VDELOLW\WRZLWKVWDQGUHSHDWHGVWRSVDQGVWDUWV
ZDVYDOLGDWHGZLWKPRUHWKDQWHVWKRXUVVLPXODWLQJVWDUWVDQGVWRSV7KLVIHDWXUHLVQRZVKRZFDVHGLQWZRRXWRIWKHWKUHHSLFNXSOLQHXSVLQWKH1RUWK
$PHULFDQPDUNHW
3ODWIRUP6QDSVKRW
7RS9HKLFOH )RUG)RUG)
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 6XSHU&UHZ3>/&9@
9ROXPH
)RUG)RUG)
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
6XSHU&UHZ3>/&9@
)RUG)RUG([SORUHU8>
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
3&@
)RUG)RUG)3>
0D[3RZHUKS 0D[7RUTXH1P
/&9@
)RUG)RUG)3>
0D[3RZHUN: 9DOYHV&\OLQGHU
/&9@
9DOYHWUDLQ '2+& %ORFN0DWHULDO &*, 3ODQWV /LPD2+
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP ', &RQILJXUDWLRQ 9
)XHO7\SH *$6 7RWDO9DOYHV
$VSLUDWLRQ 7&,
/D\RXW ))7)5/
$QQXDOL]HG
9ROXPH
1$12*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
)RUG
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
)RUG)RUG%URQFR8>
3&@
)RUG)RUG(GJH&'>
3&@
)RUG)RUG(GJH&';>
3&@
)RUG)RUG([SORUHU8>
3&@
)RUG)RUG)
6XSHU&UHZ3>/&9@
)RUG)RUG)
6XSHU&UHZ3>/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG)3>
/&9@
)RUG)RUG)XVLRQ&'>
3&@
)RUG)RUG5DQJHU3>
/&9@
)RUG)RUG5DQJHU3>
/&9@
)RUG)RUG7DXUXV'>
3&@
)RUG/LQFROQ&RQWLQHQWDO'
>3&@
)RUG/LQFROQ0.;8>
3&@
)RUG/LQFROQ0.=&'>
3&@
0RUJDQ0RUJDQ&ODVVLF025
*$1>3&@
/9'2+&9
9ROXPHV
$QQXDOL]HG
9ROXPH
)RUG)RUG([SORUHU8>
3&@
)RUG/LQFROQ&RQWLQHQWDO'
>3&@
)RUG/LQFROQ&RQWLQHQWDO'
>3&@
)RUG/LQFROQ(&898>
3&@
)RUG/LQFROQ0.;&';>
3&@
)RUG/LQFROQ0.=&'>
3&@
)RUG
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
/LPD2+8QLWHG6WDWHV
)RUG
/9'2+&9
/9'2+&9
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/9'2+&9
1$127RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&9
)RUG)RUG(GJH&';>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG([SORUHU8>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG)6XSHU&UHZ3>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
)RUG)RUG)XVLRQ&'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&9
)RUG)RUG([SORUHU8>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
9ROXPHV
$QQXDOL]HG
3,500
3,000
%RZOLQJ*UHHQ.<8QLWHG6WDWHV
2,500
)OLQW6RXWK0,8QLWHG6WDWHV
Thousands
3RQWLDF0,8QLWHG6WDWHV
1,500 5DPRV$UL]SH0H[LFR
5RPXOXV0,8QLWHG6WDWHV
1,000
6LODR0H[LFR
500 6SULQJ+LOO718QLWHG6WDWHV
6W&DWKDULQHV2QWDULR&DQDGD
0
2017
2018
2019
2020
2021
2022
2023
2024
7ROXFD0H[LFR
7RQDZDQGD1<8QLWHG6WDWHV
*HQHUDO0RWRUV7RWDO
Production in Millions
&66RU&\OLQGHU6HW6WUDWHJ\7KLVGLUHFWLRQPLPLFVZKDW'DLPOHUDQG%0:KDYH 1.2
EHHQGRLQJDQGVKRXOGKHOS*0JHWFORVHUWRLWVFRUSRUDWHDYHUDJHIXHOHFRQRP\ 1
&$)( WDUJHWV 3OHDVH UHIHU WR WKH &66 HQJLQH SODWIRUP DQDO\VLV IRU PRUH
*HQHUDO0RWRUV
CSS-NGE/NDE
LQIRUPDWLRQ 0.8 GEN II/III/IV/V
HIGH FEATURE V6
0.6 L850
*0 LV DOVR XSJUDGLQJ WKH +,*+ )($785( 9 SODWIRUP ZKLFK ZLOO LQFOXGH SGE
GLVSODFHPHQWV RI / DQG / ZLWK WXUERFKDUJHG YDULDQWV DV ZHOO DV YDULDQWV 0.4
XVLQJ F\OLQGHU GHDFWLYDWLRQ 7KH QH[WJHQHUDWLRQ +,*+ )($785( 9 HQJLQHV
ODXQFKHGLQODWHZLWKSURGXFWLRQEHJLQQLQJDWWKH5RPXOXV(QJLQH3ODQWLQ 0.2
0LFKLJDQ8QLWHG6WDWHV
0
2017
2018
2019
2020
2021
2022
2023
2024
)XHOFHOO YHKLFOHV DUH GHILQLWHO\ D SDUW RI *0
V VWUDWHJLF SODQV *0
V IXHOFHOO
(TXLQR[LVXVHGLQ3URMHFW'ULYHZD\ZKLFKKDVSXWYHKLFOHVLQWKHKDQGVRI
FRQVXPHUVWRJDXJHUHDOZRUOGXVDJH*0FODLPVVRPHFRQVXPHUVKDYHORJJHG
PRUH WKDQ PLOHV RQ WKHLU YHKLFOHV 7KH FRPSDQ\ KDV SDUWQHUHG ZLWK
+RQGDZKLFKOLNH*0PDGHWUHPHQGRXVSURJUHVVLQIXHOFHOOGHYHORSPHQWZLWK
WKH )&; DQG )&; &ODULW\ 7RJHWKHU WKH FRPSDQLHV KDYH EHHQ DEOH WR VKDUH
UHVHDUFKDQGGHYHORSPHQWFRVWVDQGWKHIUXLWVRIWKHYHQWXUHDUULYHGLQZLWK
+RQGD
V)&9VHGDQ*0LVH[SHFWHGWRMRLQ+RQGDDQGODXQFKDIXHOFHOOYHKLFOH
DURXQG
*HQHUDO0RWRUVSODQVWRSXVKHOHFWULFYHKLFOHWHFKQRORJ\WRDQRWKHUOHYHOZLWKWKH
XSFRPLQJ &KHYUROHW %ROW DQG LWV PLOH EDWWHU\ UDQJH 7KH FRPSDQ\ VDLG WKH
YHKLFOH
VSULFHZLOOODQGDWDSSUR[LPDWHO\86'DIWHUIHGHUDOWD[FUHGLWVDQG
XQOLNH WKH FXUUHQW 6SDUN (9 LW ZLOO EH RIIHUHG LQ DOO VWDWHV DQG VHOHFW JOREDO
PDUNHWV7KHEDWWHU\SDFNLVVDLGWREHDEOHWRDFFHSWIDVWFKDUJLQJPXOWLSOHWLPHV
SHU GD\ D WUHPHQGRXV EHQHILW DQG VRPHWKLQJ YHU\ GLIILFXOW IRU PRVW FXUUHQW
YHKLFOHVJLYHQWKHH[FHVVLYHKHDWJHQHUDWHGWKDWDIIHFWVEDWWHU\OLIH
*0 DQG +RQGD DUH DOVR ORRNLQJ WR H[SDQG WKHLU FROODERUDWLRQ E\ FRPELQLQJ
UHVRXUFHVLQSOXJLQK\EULGGHYHORSPHQW&XUUHQWO\GHWDLOVDUHIHZEXWWKH9ROWHF
V\VWHPFRXOGEHDYHU\DWWUDFWLYHWHFKQRORJ\WR+RQGDDQGDVVLVWLQPHHWLQJWKH
]HURHPLVVLRQVYHKLFOHPDQGDWH
$QQXDOL]HG
9ROXPH
*HQHUDO
0RWRUV*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
*OREDO(QJLQH&DSDFLW\$QDO\VLV
9ROXPHV
*HQHUDO0RWRUV
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
1RUWK$PHULFD(QJLQH)RUHFDVW 4
&RS\ULJKW,+6,QF
*HQHUDO0RWRUV$QDO\VLV
1RUWK$PHULFD(QJLQH3ODQW/RFDWLRQV
*HQHUDO0RWRUV
Bowling Green, KY, USA
Flint South, MI (#2), USA
Moraine, OH #2, USA
Pontiac, MI, USA
Ramos Arizpe, MEX
Romulus, MI, USA
Silao, MEX
Spring Hill, TN, USA
St. Catharines, Ontario, CAN
Toluca, MEX
Tonawanda, NY, USA
0IU*HQHUDO0RWRUV
%RZOLQJ*UHHQ.<
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
*(1,,,,,,99 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU*HQHUDO0RWRUV
)OLQW6RXWK0,
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
&661*(1'( _ _ _ _ _ _ _ _
(/(&75,& _ _ _ _ _ _ _ _
+,*+)($785(9 _ _ _ _ _ _ _ _
23(/)$0,/<2 _ _ _ _ _ _ _ _
6*( _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU*HQHUDO0RWRUV
0RUDLQH2+
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
'85$0$; _ _ _ _ _ _ _ _
*HQHUDO0RWRUV
0IU*HQHUDO0RWRUV
3RQWLDF0,
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
)8(/&(// _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU*HQHUDO0RWRUV
5DPRV$UL]SH
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
*(1,,,,,,99 _ _ _ _ _ _ _ _
+,*+)($785(9 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU*HQHUDO0RWRUV
5RPXOXV0,
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
+,*+)($785(9 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU*HQHUDO0RWRUV
6LODR
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
*(1,,,,,,99 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU*HQHUDO0RWRUV
6W&DWKDULQHV2QWDULR
&$1 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
&661*(1'( _ _ _ _ _ _ _ _
*(1,,,,,,99 _ _ _ _ _ _ _ _
+,*+)($785(9 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU*HQHUDO0RWRUV
7ROXFD
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
&661*(1'( _ _ _ _ _ _ _ _
23(/)$0,/<, _ _ _ _ _ _ _ _
6*( _ _ _ _ _ _ _ _
*HQHUDO0RWRUV
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU*HQHUDO0RWRUV
7RQDZDQGD1<
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
*(1,,,,,,99 _ _ _ _ _ _ _ _
/ _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
Market Share
60%
North America Gas
General Motors Gas
40% General Motors Diesel
North America Diesel
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
3RZHU'HQVLW\ OEM vs Regional
Power Density
*0UHPDLQVYHU\FRPSHWLWLYHZLWKWKHSRZHUGHQVLW\RILWVHQJLQHVDQGKDV 80.0
PXOWLSOHHQJLQHVWKDWDUHOHDGHUVIRUSRZHULQ&DGLOODFPRGHOVDQGRWKHUVSRUWVFDU
DSSOLFDWLRQV7KHDGGLWLRQRIPRUHWXUERFKDUJHGHQJLQHVZRXOGKHOSNHHS*0RQ
WKHOHDGLQJHGJHIRUSRZHUGHQVLW\ZKLOHDOVRKHOSLQJWRPHHWWKHIXWXUHIXHO
Weighted Average
40.0
North America
*HQHUDO0RWRUV
General Motors
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
'LVSODFHPHQW OEM vs Regional
Displacement
2ZLQJWRLWVKHDY\9PL[*0
VGLVSODFHPHQWFRQWLQXHVWREHKLJKHUWKDQWKH 4.0
UHJLRQDODYHUDJH*0GRHVKDYHDGRZQZDUGWUHQGPRYLQJIRUZDUGHVSHFLDOO\DV
VDOHVDQGSURGXFWLRQRIPDQ\SLFNXSVDQGODUJH689VDUHGHFOLQLQJLQIDYRURI
VPDOOHUYHKLFOHV
3.0
Weighted Avearage
Displacement
2.0
General Motors
North America
1.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
80.0
General Motors
60.0
North America
40.0
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
&\OLQGHUV OEM vs Regional
Cylinders
*0LVDOPRVWDKDOIDF\OLQGHUDERYHWKHUHJLRQDODYHUDJH$OWKRXJK*0LV 8.0
DJJUHVVLYHO\GRZQVL]LQJLWVYHKLFOHVDQGHQJLQHVLWVWLOOKDVDKLJKQXPEHURI
ODUJHYHKLFOHVWKDWUHTXLUHODUJHUHQJLQHVDQGZLOOUHPDLQDERYHWKHDYHUDJH
WKURXJKRXWWKHIRUHFDVWKRUL]RQ
6.0
Number of Cylinders
Weighted Average
*HQHUDO0RWRUV
4.0
General Motors
North America
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
$VSLUDWLRQ OEM vs Regional
Aspiration
*0ZLOOEHLQFUHDVLQJLWVXVHRIWXUERFKDUJLQJWRJDLQIXHOHFRQRP\ZLWKRXW 80.0%
VDFULILFLQJSHUIRUPDQFH*0ZLOORIIHUD//WXUERFKDUJHGHQJLQHWR
FRPSOHPHQWLWVFXUUHQW//WXUERFKDUJHGHQJLQH*0DOVRODXQFKHGD
ODUJHU/WZLQWXUERFKDUJHGHQJLQHLQ
60.0%
Market Share
*0FRQWLQXHVWRXVHVXSHUFKDUJHGHQJLQHVIRULWVKLJKSHUIRUPDQFHYHKLFOHV
QDPHO\WKH&RUYHWWHDQG&DGLOODF96HULHVYHKLFOHV General Motors Turbo
40.0% North America Turbo
North America Natural
General Motors Natural
North America Super
General Motors Super
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
Market Share
WKH2(0ZLWKWKHPRVWGLYHUVHK\EULGDUFKLWHFWXUHVVSUHDGDFURVVYDULRXV
6.0%
VHJPHQWVIURPPLGVL]HVHGDQVWRSLFNXSWUXFNV'HVSLWHWKHRYHUDOOK\EULGVDOHV
North America Hybrid-Full
OHDGE\7R\RWDDQG)RUG*0VWLOOUHWDLQVVXSUHPDF\LQSOXJLQK\EULGHOHFWULF General Motors Hybrid-Full
YHKLFOH3+(9VDOHVWKDQNVWRWKH&KHYUROHW9ROW 4.0% North America Hybrid-Mild
General Motors Hybrid-Mild
7KH%XLFN/D&URVVHH$VVLVWPRGHOUHFHLYHVDQXSJUDGH7KHK\EULGV\VWHP
2.0%
LVUDWHGDWNLORZDWWVN:DQGLVPDWHGZLWK/F\OLQGHUHQJLQHDQGVSHHG
DXWRPDWLFWUDQVPLVVLRQ$OWKRXJKWKHH$VVLVWPLOGK\EULGV\VWHPLVH[SHFWHGWR
KDYHVPDOOSHQHWUDWLRQLQWKH8QLWHG6WDWHVSURMHFWLRQVDUHPXFKKLJKHUIRU 0.0%
&KLQD
2017
2018
2019
2020
2021
2022
2023
2024
*0DQQRXQFHGWKHDGGLWLRQRIDQHZ0DOLEXZLWKDIXOOK\EULGYDULDQWWRWKHOLQHXS
7KH0DOLEXKDVIHDWXUHGWKHH$VVLVWPLOGK\EULGV\VWHPDQLGOHVWRSVWDUWV\VWHP
DQGQRZDIXOOK\EULGV\VWHP7KHDGGLWLRQZDVH[SHFWHGVLQFHPDQ\RIWKH
0DOLEX
VFRPSHWLWRUVKDYHIXOOK\EULGYDULDQWVLQFOXGLQJWKH)RUG)XVLRQ+RQGD
$FFRUGDQG7R\RWD&DPU\([SHFWRWKHU):'K\EULGPRGHOVWRVRRQIROORZWR
VSUHDGWKHWHFKQRORJ\2YHUDOO*0
VHOHFWULILFDWLRQVWUDWHJ\ZLOORIIHUPRGHOVLQ
YDULRXVOHYHOVRIHOHFWULILFDWLRQLQVWHDGRIRQO\IXOORUSOXJLQK\EULGVIRUH[DPSOH
PLOGK\EULGV/D&URVVHIXOOK\EULGV0DOLEXSOXJLQK\EULGV9ROWDQGHOHFWULF
%ROW
60%
General Motors
40% North America
20%
0%
2017
2018
2019
2020
2021
2022
2023
80%
Market Share
60%
North America
40% General Motors
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
*HQHUDO0RWRUV
/ /
&661*(1'( /9'2+&
/
/9'2+&
/ /
/9'2+&
/
&661*(1'( /9'2+&
/
/
*(1,,,,,,99 /92+99
/92+99
9
+,*+)($785( /9'2+&
9 9
/9'2+&
9 9
'85$0$; /92+99
9
*(1,,,,,,99 /9'2+&
9
/92+99
/92+99
9
/9'2+&
9
/92+99
/92+99
9ROXPHV
$QQXDOL]HG
1,600
1,400
/9'2+&/
1,000
Thousands
/9'2+&/
800 /9'2+&/
/9'2+&/
600
3ODWIRUP
400
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
*HQHUDO0RWRUVLVGHYHORSLQJDQHZIDPLO\RIJOREDOHQJLQHVWKDWZLOOEHPRGXODUDQGXVHDFRPPRQVHWRIF\OLQGHUV7KHSURJUDPLVEHLQJUHIHUUHGWRDV&66ZKLFK
VWDQGVIRU&\OLQGHU6HW6WUDWHJ\7KHHQJLQHVZLOOEHEXLOWLQ1RUWK$PHULFD(XURSHDQG&KLQDDQGZLOOLQFOXGHERWKJDVROLQHDQGGLHVHOYHUVLRQV&\OLQGHUYROXPHV
DSSHDUWRUDQJHIURP/IRUDVPDOOF\OLQGHUWR/IRUDODUJHF\OLQGHU7KHHQJLQHVZLOOKDYHGLUHFWLQMHFWLRQDQGPRVWJDVROLQHYHUVLRQVZLOOEHWXUERFKDUJHG
7KHHQJLQHSODWIRUPLVDOVREHLQJGHVLJQHGZLWKK\EULGDSSOLFDWLRQVLQPLQG3URGXFWLRQLVH[SHFWHGWREHJLQLQ,QWKHORQJHUWHUPWKHVHHQJLQHVDUHH[SHFWHGWR
UHSODFHWKH6*(0*(/0'(/'(DQG6'()LDWHQJLQHSODWIRUPVZKLOHDOVRDIIHFWLQJ+)9DQG*(19YROXPHV7KHHQJLQHLVH[SHFWHGWREHSURGXFHGJOREDOO\
ZLWKYROXPHDURXQGPLOOLRQXQLWVE\:HKDYHDOVROHDUQHGWKDWWKH//<4YHUVLRQZDVFDQFHOOHGEXWZHDUHFXUUHQWO\QRWVXUHZK\
*HQHUDO0RWRUV
:HDOVRH[SHFWD/GLHVHOYHUVLRQRIIWKH9SURJUDPWKDWZLOOEHXVHGLQ6LOYHUDGR6LHUUDWUXFNV'HVLJQZRXOGEHOHGRXWRI(XURSHZLWKSURGXFWLRQLQ1RUWK
$PHULFD$OVRLQFOXGHGLQWKH6LOYHUDGR6LHUUDWUXFNVZLOOEHWKH/F\OLQGHUHQJLQH
7KHRWKHUHQJLQHUHODWHGWRWKLVLV&663ULPHEXWZHEHOLHYHWKLVLVDUHIUHVKRIWKHFXUUHQW6*(HQJLQHDQGQRWUHDOO\DSDUWRI&66
3ODWIRUP6QDSVKRW
7RS9HKLFOH *HQHUDO
9DULDQWV 6SHFLILF7RUTXHOEIW/ $SSOLFDWLRQV%\ 0RWRUV&KHYUROHW6LOYHUDGR7
9ROXPH ;&)>/&9@
*HQHUDO
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/ 0RWRUV&KHYUROHW2QL[-%6&
>3&@
*HQHUDO
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW 0RWRUV&KHYUROHW0DOLEX'
6&>3&@
*HQHUDO
0D[3RZHUKS 0D[7RUTXH1P 0RWRUV&KHYUROHW&UX]H&/
&>3&@
*HQHUDO
0D[3RZHUN: 9DOYHV&\OLQGHU 0RWRUV*0&6LHUUD7;*)
>/&9@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP,URQ 3ODQWV )OLQW6RXWK0,
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP 6SULQJ+LOO71
)XHO6\VWHP ',',&5 &RQILJXUDWLRQ /// 6W&DWKDULQHV2QWDULR
',(6(/*$6*$6
)XHO7\SH 7RWDO9DOYHV 7ROXFD
(/3*
$VSLUDWLRQ VWDJH7&,7&,
/D\RXW ))7)5/
$QQXDOL]HG
9ROXPH
&66
1*(1'(
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
*HQHUDO0RWRUV
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
*HQHUDO
0RWRUV%XLFN(QFRUH%8%>
3&@
*HQHUDO
0RWRUV&DGLOODF;7'8/>
3&@
*HQHUDO
0RWRUV&KHYUROHW&UX]H&/&
>3&@
*HQHUDO
0RWRUV&KHYUROHW&UX]H'/&
>3&@
*HQHUDO
0RWRUV&KHYUROHW0DOLEX'6
&>3&@
*HQHUDO
0RWRUV&KHYUROHW2QL[-%6&
>3&@
*HQHUDO
0RWRUV&KHYUROHW7UD[%<&
>3&@
/9'2+&/
*HQHUDO
0RWRUV&DGLOODF;7&</>
3&@
/9'2+&/
*HQHUDO
0RWRUV%XLFN(QFODYH'<%
>3&@
*HQHUDO
0RWRUV%XLFN/D&URVVH(/%
>3&@
*HQHUDO
0RWRUV&DGLOODF&7$//>
3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
*HQHUDO
0RWRUV&DGLOODF;7&</>
3&@
*HQHUDO
0RWRUV&DGLOODF;7(8/>
3&@
*HQHUDO
0RWRUV&DGLOODF;7'8/>
3&@
*HQHUDO
0RWRUV&KHYUROHW%OD]HU'8
&>3&@
*HQHUDO
0RWRUV&KHYUROHW&DPDUR$%
&>3&@
*HQHUDO
0RWRUV&KHYUROHW&UX]H&/&
>3&@
*HQHUDO
*HQHUDO0RWRUV
0RWRUV&KHYUROHW(TXLQR[&
8&>3&@
*HQHUDO
0RWRUV&KHYUROHW0DOLEX'6
&>3&@
*HQHUDO
0RWRUV&KHYUROHW7UDYHUVH'
<&>3&@
*HQHUDO
0RWRUV*0&$FDGLD'8*>
3&@
*HQHUDO
0RWRUV*0&7HUUDLQ&8*>
3&@
*HQHUDO
0RWRUV+ROGHQ(TXLQR[&8+
>3&@
*HQHUDO0RWRUV2SHO'
&89(82>3&@
*HQHUDO
0RWRUV2SHO,QVLJQLD(-2>
3&@
/9'2+&/
*HQHUDO
0RWRUV&KHYUROHW&DPDUR$%
&>3&@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR7
;&)>/&9@
*HQHUDO
0RWRUV&KHYUROHW7DKRH78&
>3&@
*HQHUDO
0RWRUV*0&6LHUUD7;*)>
/&9@
*HQHUDO
0RWRUV*0&<XNRQ78*>
3&@
*HQHUDO0RWRUV2SHO'
&89(82>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
*HQHUDO
0RWRUV2SHO,QVLJQLD(-2>
3&@
/9'2+&/
*HQHUDO
0RWRUV&DGLOODF(VFDODGH
(697</>3&@
*HQHUDO
0RWRUV&DGLOODF(VFDODGH78
/>3&@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR7
;&)>/&9@
*HQHUDO
0RWRUV&KHYUROHW6XEXUEDQ7
<&>3&@
*HQHUDO
0RWRUV&KHYUROHW7DKRH78&
>3&@
*HQHUDO0RWRUV
*HQHUDO
0RWRUV*0&6LHUUD7;*)>
/&9@
*HQHUDO0RWRUV*0&<XNRQ
;/7<*>3&@
*HQHUDO
0RWRUV*0&<XNRQ78*>
3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
)OLQW6RXWK0,8QLWHG
6WDWHV*HQHUDO0RWRUV
/9'2+&/
/9'2+&/
/9'2+&/
6SULQJ+LOO718QLWHG6WDWHV
*HQHUDO0RWRUV
/9'2+&/
6W&DWKDULQHV2QWDULR
&DQDGD*HQHUDO0RWRUV
/9'2+&/
7ROXFD0H[LFR*HQHUDO
0RWRUV
/9'2+&/
/9'2+&/
/9'2+&/
/9'2+&/
/9'2+&/
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
/9'2+&/
/9'2+&/
&661*(1'(7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
*HQHUDO0RWRUV&DGLOODF;7'8/>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW&UX]H'/&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW0DOLEX'6&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW2QL[-%-&>3&@ 'URS (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV
/9'2+&/
*HQHUDO0RWRUV%XLFN(QFODYH'<%>3&@ $GG (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV%XLFN(QFODYH'<%>3&@ $GG 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV%XLFN/D&URVVH(/%>3&@ $GG (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV%XLFN/D&URVVH(/%>3&@ $GG 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV&KHYUROHW&DPDUR$%&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW(TXLQR[&8&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW0DOLEX'6&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW7UDYHUVH'<&>3&@ $GG (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV&KHYUROHW7UDYHUVH'<&>3&@ $GG 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV*0&$FDGLD'8*>3&@ $GG (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV*0&$FDGLD'8*>3&@ $GG 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV2SHO'&89(82>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/9'2+&/
*HQHUDO0RWRUV&KHYUROHW&DPDUR$%&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW6LOYHUDGR7;&)>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW7DKRH78&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV2SHO'&89(82>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/9'2+&/
*HQHUDO0RWRUV&KHYUROHW6LOYHUDGR7;&)>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW6XEXUEDQ7<&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW7DKRH78&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV*0&<XNRQ;/7<*>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
9ROXPHV
$QQXDOL]HG
160
140
3ODWIRUP
100
Thousands
80
60
40
20
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KHRXWSXWIURPWKH'85$0$;SODWIRUPLVPXFKORZHUWKDQLQWKHODVWIHZ\HDUVDQGLWZLOOKRYHUDURXQGWRXQLWVIRUWKHUHPDLQGHURIWKHIRUHFDVW
KRUL]RQ
/RQJHUWHUPWUXFNSURGXFWLRQLVH[SHFWHGWRVHHDVORZEXWVWHDG\UHFRYHU\RZLQJWRQDWXUDOYHKLFOHUHSODFHPHQWF\FOHV:LWKWKHSULFHGLIIHUHQWLDOEHWZHHQJDVROLQHDQG
GLHVHOIXHOKRZHYHUDQGWKHSUHPLXPFRVWRIDGLHVHOSRZHUWUDLQZHH[SHFWVRPHWUDGLWLRQDOGLHVHOFXVWRPHUVPD\FKRRVHWKHRSWLRQDOJDVROLQHHQJLQHHVSHFLDOO\ZLWK
WKHQHZ*(19JDVROLQHHQJLQHVWKDWODXQFKHGLQ7KHLQFUHDVHGSHUIRUPDQFHDQGIXHOHFRQRP\FRXOGZRUNDJDLQVWWKH'85$0$;GLHVHOHQJLQHLQKHDY\GXW\
YHUVLRQVRIWKH6LOYHUDGRDQG6LHUUDWUXFNV
*HQHUDO0RWRUV
3ODWIRUP6QDSVKRW
7RS9HKLFOH *HQHUDO
9DULDQWV 6SHFLILF7RUTXHOEIW/ $SSOLFDWLRQV%\ 0RWRUV&KHYUROHW6LOYHUDGR
9ROXPH +'7;&+>/&9@
*HQHUDO
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/ 0RWRUV&KHYUROHW6LOYHUDGR
+'.;&=>/&9@
*HQHUDO0RWRUV*0&6LHUUD
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
+'7;*+>/&9@
*HQHUDO0RWRUV*0&6LHUUD
0D[3RZHUKS 0D[7RUTXH1P
+'.;*=>/&9@
*HQHUDO
0D[3RZHUN: 9DOYHV&\OLQGHU 0RWRUV&KHYUROHW([SUHVV*
07>/&9@
9DOYHWUDLQ 2+9 %ORFN0DWHULDO ,URQ 3ODQWV 0RUDLQH2+
9DULDEOH9DOYH7LPLQJ 1R +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP ',&5 &RQILJXUDWLRQ 9
)XHO7\SH ',(6(/ 7RWDO9DOYHV
$VSLUDWLRQ 7&,
/D\RXW )5/
$QQXDOL]HG
9ROXPH
'85$0$;
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
*HQHUDO0RWRUV
9ROXPHV
$QQXDOL]HG
9ROXPH
/92+99
*HQHUDO
0RWRUV&KHYUROHW([SUHVV*0
7>/&9@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR
+'.;&=>/&9@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR
+'7;&+>/&9@
*HQHUDO
0RWRUV*0&6DYDQD*07
>/&9@
*HQHUDO0RWRUV*0&6LHUUD
+'.;*=>/&9@
*HQHUDO0RWRUV*0&6LHUUD
+'7;*+>/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
0RUDLQH2+8QLWHG
6WDWHV*HQHUDO0RWRUV
/92+99
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/92+99
'85$0$;7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/92+99
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ 'URS (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV&KHYUROHW6LOYHUDGR+'7;&+>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV*0&6DYDQD*07>/&9@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV*0&6DYDQD*07>/&9@ 'URS (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV*0&6DYDQD*07>/&9@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV
9ROXPHV
$QQXDOL]HG
1,400
1,200
/9'2+&9
1,000
/92+99
Thousands
/92+99
600 /92+99
/9'2+&9
400
/92+99
200 /92+99
3ODWIRUP
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
*HQHUDO0RWRUVZLOOFRQWLQXHXVLQJWKH/9HQJLQHRIIWKH*(1,,,,,,99SODWIRUPDVWKHEDVHHQJLQHIRULWVWUXFNOLQHXSDQGZHKHDULWPD\EHJLQWRXVHWKHHQJLQHLQ
WKH([SUHVV6DYDQDYDQVDVZHOO7KLVHQJLQHZLOODOVRFRQWLQXHWREHXVHGIRUPDULQHDQGRWKHULQGXVWULDODSSOLFDWLRQVZLWKYROXPHRIDSSUR[LPDWHO\HQJLQHVSHU
\HDU
7KH*(19HQJLQHVDUHGLUHFWLQMHFWLRQPRVWDUH(FDSDEOHDQGWKH\DOVRKDYHF\OLQGHUGHDFWLYDWLRQ7KHGLVSODFHPHQWVDUH/9/9DQG/9
*HQHUDO0RWRUVLVDOVRORRNLQJDWD'2+&YHUVLRQIRUDQHZ9HQJLQHIRUQHZ20(*$EDVHG&DGLOODFYHKLFOHV,WLVH[SHFWHGWREHDWZLQWXUER/9
*HQHUDO0RWRUV
3ULRU*(1,9HQJLQHVZHUHSURGXFHGLQ5RPXOXV0LFKLJDQ8QLWHG6WDWHV6W&DWKDULQHV&DQDGDDQG6LODR0H[LFR7KHQHZ*(19YHUVLRQVZLOOEHSURGXFHGDW6W
&DWKDULQHV&DQDGD7RQDZDQGD1HZ<RUN8QLWHG6WDWHVDQG5DPRV0H[LFR7RWDOYROXPHLVH[SHFWHGWRH[FHHGPLOOLRQHQJLQHVSHU\HDU
3ODWIRUP6QDSVKRW
7RS9HKLFOH *HQHUDO
9DULDQWV 6SHFLILF7RUTXHOEIW/ $SSOLFDWLRQV%\ 0RWRUV&KHYUROHW6LOYHUDGR7
9ROXPH ;&)>/&9@
*HQHUDO
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/ 0RWRUV&KHYUROHW6LOYHUDGR.
;&>/&9@
*HQHUDO
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW 0RWRUV*0&6LHUUD7;*)
>/&9@
*HQHUDO
0D[3RZHUKS 0D[7RUTXH1P 0RWRUV*0&6LHUUD.;*>
/&9@
*HQHUDO
0D[3RZHUN: 9DOYHV&\OLQGHU 0RWRUV&KHYUROHW([SUHVV*
07>/&9@
9DOYHWUDLQ '2+&2+9 %ORFN0DWHULDO $OXPLQXP,URQ 3ODQWV %RZOLQJ*UHHQ.<
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP,URQ 5DPRV$UL]SH
)XHO6\VWHP ',0), &RQILJXUDWLRQ 99 6LODR
)XHO7\SH *$6*$6&1**$6( 7RWDO9DOYHV 6SULQJ+LOO71
$VSLUDWLRQ 7&,1$6&6&, 6W&DWKDULQHV2QWDULR
/D\RXW ))7)5/05/ 7RQDZDQGD1<
$QQXDOL]HG
9ROXPH
*(1,,,,,,99
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
*HQHUDO0RWRUV
$QQXDOL]HG
9ROXPH
/9'2+&9
*HQHUDO
0RWRUV&DGLOODF&726/>
3&@
*HQHUDO
0RWRUV&DGLOODF6SRUWV
&DU<%/>3&@
*HQHUDO
0RWRUV&KHYUROHW&RUYHWWH<
%&>3&@
/92+99
*HQHUDO
0RWRUV&KHYUROHW([SUHVV*0
7>/&9@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR.
;&>/&9@
*HQHUDO
0RWRUV*0&6DYDQD*07
>/&9@
*HQHUDO
0RWRUV*0&6LHUUD.;*>
/&9@
/92+99
*HQHUDO
0RWRUV&KHYUROHW([SUHVV*0
7>/&9@
*HQHUDO
0RWRUV*0&6DYDQD*07
>/&9@
/92+99
*HQHUDO
0RWRUV&KHYUROHW([SUHVV*0
7>/&9@
9ROXPHV
$QQXDOL]HG
9ROXPH
*HQHUDO
0RWRUV*0&6DYDQD*07
>/&9@
/92+99
*HQHUDO
0RWRUV&DGLOODF(VFDODGH78
/>3&@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR.
;&>/&9@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR7
;&)>/&9@
*HQHUDO
0RWRUV&KHYUROHW6XEXUEDQ.
<&>3&@
*HQHUDO
0RWRUV&KHYUROHW6XEXUEDQ7
<&>3&@
*HQHUDO0RWRUV
*HQHUDO
0RWRUV&KHYUROHW7DKRH.8
&>3&@
*HQHUDO
0RWRUV&KHYUROHW7DKRH78&
>3&@
*HQHUDO
0RWRUV*0&6LHUUD.;*>
/&9@
*HQHUDO
0RWRUV*0&6LHUUD7;*)>
/&9@
*HQHUDO0RWRUV*0&<XNRQ
;/.<*>3&@
*HQHUDO0RWRUV*0&<XNRQ
;/7<*>3&@
*HQHUDO
0RWRUV*0&<XNRQ.8*>
3&@
*HQHUDO
0RWRUV*0&<XNRQ78*>
3&@
/9'2+&9
*HQHUDO
0RWRUV&KHYUROHW&RUYHWWH<
%&>3&@
/92+99
*HQHUDO
0RWRUV&KHYUROHW([SUHVV*0
7>/&9@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR
+'.;&=>/&9@
*HQHUDO
0RWRUV&KHYUROHW6XEXUEDQ.
<&>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
*HQHUDO
0RWRUV*0&6DYDQD*07
>/&9@
*HQHUDO0RWRUV*0&6LHUUD
+'.;*=>/&9@
*HQHUDO
0RWRUV+ROGHQ&DSULFH9)>
3&@
*HQHUDO
0RWRUV+ROGHQ&RPPRGRUH=
>/&9@
*HQHUDO0RWRUV+ROGHQ66
3HUIRUPDQFH=6&>3&@
/92+99
*HQHUDO
0RWRUV&DGLOODF&7$//>
3&@
*HQHUDO
*HQHUDO0RWRUV
0RWRUV&DGLOODF&76$//>
3&@
*HQHUDO
0RWRUV&DGLOODF(VFDODGH
(69.</>3&@
*HQHUDO
0RWRUV&DGLOODF(VFDODGH
(697</>3&@
*HQHUDO
0RWRUV&DGLOODF(VFDODGH.8
/>3&@
*HQHUDO
0RWRUV&DGLOODF(VFDODGH78
/>3&@
*HQHUDO
0RWRUV&KHYUROHW&DPDUR$%
&>3&@
*HQHUDO
0RWRUV&KHYUROHW&DPDUR$%
&>3&@
*HQHUDO
0RWRUV&KHYUROHW&RUYHWWH<
%&>3&@
*HQHUDO
0RWRUV&KHYUROHW&RUYHWWH<
%&>3&@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR
+'7;&+>/&9@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR.
;&>/&9@
*HQHUDO
0RWRUV&KHYUROHW6LOYHUDGR7
;&)>/&9@
*HQHUDO
0RWRUV&KHYUROHW7DKRH.8
&>3&@
*HQHUDO
0RWRUV&KHYUROHW7DKRH78&
>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
*HQHUDO0RWRUV*0&6LHUUD
+'7;*+>/&9@
*HQHUDO
0RWRUV*0&6LHUUD.;*>
/&9@
*HQHUDO
0RWRUV*0&6LHUUD7;*)>
/&9@
*HQHUDO0RWRUV*0&<XNRQ
;/.<*>3&@
*HQHUDO0RWRUV*0&<XNRQ
;/7<*>3&@
*HQHUDO
0RWRUV*0&<XNRQ.8*>
3&@
*HQHUDO
0RWRUV*0&<XNRQ78*>
3&@
*HQHUDO
*HQHUDO0RWRUV
0RWRUV+ROGHQ&RPPRGRUH=
>3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
%RZOLQJ*UHHQ.<8QLWHG
6WDWHV*HQHUDO0RWRUV
/92+99
5DPRV$UL]SH0H[LFR
*HQHUDO0RWRUV
/92+99
/92+99
/92+99
/92+99
6LODR0H[LFR*HQHUDO
0RWRUV
/92+99
/92+99
/92+99
6SULQJ+LOO718QLWHG6WDWHV
*HQHUDO0RWRUV
/92+99
6W&DWKDULQHV2QWDULR
&DQDGD*HQHUDO0RWRUV
/92+99
/92+99
/92+99
7RQDZDQGD1<8QLWHG
6WDWHV*HQHUDO0RWRUV
/9'2+&9
/92+99
9ROXPHV
$QQXDOL]HG
9ROXPH
/92+99
/9'2+&9
/92+99
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/92+99
*HQHUDO0RWRUV
/92+99
/92+99
/92+99
/9'2+&9
/92+99
/92+99
*(1,,,,,,997RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/92+99
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW6LOYHUDGR.;&>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV*0&6DYDQD*07>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/92+99
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ $GG (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ $GG 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV*0&6DYDQD*07>/&9@ $GG (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV*0&6DYDQD*07>/&9@ $GG 9HKLFOH/LIHF\FOH
/92+99
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV*0&6DYDQD*07>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/92+99
*HQHUDO0RWRUV&KHYUROHW6LOYHUDGR.;&>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW6LOYHUDGR7;&)>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW6XEXUEDQ7<&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW7DKRH78&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV*0&<XNRQ;/7<*>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/92+99
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW([SUHVV*07>/&9@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV*0&<XNRQ;/7<*>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/92+99
*HQHUDO0RWRUV&KHYUROHW&DPDUR$%&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW&DPDUR$%&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW6LOYHUDGR+'7;&+>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW6LOYHUDGR.;&>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW6LOYHUDGR7;&)>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW6XEXUEDQ.<&>3&@ 'URS (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV&KHYUROHW6XEXUEDQ.<&>3&@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV&KHYUROHW7DKRH78&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV*0&<XNRQ;/7<*>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV
9ROXPHV
$QQXDOL]HG
800
/9'2+&9
Thousands
3ODWIRUP
400
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH+,*+)($785(9HQJLQHSODWIRUPLQFOXGHVWZRQDWXUDOO\DVSLUDWHGYDULDWLRQVD/DQGD/*HQHUDO0RWRUVKDVUHFHQWO\DQQRXQFHGWZR/WXUERFKDUJHG
YHUVLRQVIRUFHUWDLQ&DGLOODFQDPHSODWHVZLWKDUHJXODUSURGXFWLRQRSWLRQ532FRGHRI/)WKDWLVUDWHGDWKS7KHRWKHUHQJLQH/)LVUDWHGDWKSDQGZLOOEH
XVHGLQWKHLQWKH$769FRXSHDQGVHGDQ
7KHQH[WJHQHUDWLRQRI+,*+)($785(9UHFHQWO\ODXQFKHGLQ7KHGLVSODFHPHQWVZLOOUHPDLQXQFKDQJHGZLWKERWK/DQG/YHUVLRQV7KHUHZLOOEH
QDWXUDOO\DVSLUDWHGK\EULGDQGWXUERFKDUJHGYDULDQWVDYDLODEOH6RPHRIWKHVHHQJLQHVZLOOIHDWXUHF\OLQGHUGHDFWLYDWLRQDVZHOO3URGXFWLRQRIWKHXSJUDGHGHQJLQHZLOO
EHRQO\EHDWWKH5RPXOXV(QJLQH3ODQWLQ0LFKLJDQ8QLWHG6WDWHVDQGLVFXUUHQWO\FDSDFLWL]HGIRUHQJLQHV
*HQHUDO0RWRUV
3ODWIRUP6QDSVKRW
7RS9HKLFOH *HQHUDO
9DULDQWV 6SHFLILF7RUTXHOEIW/ $SSOLFDWLRQV%\ 0RWRUV&KHYUROHW7UDYHUVH&
9ROXPH <&>3&@
*HQHUDO
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/ 0RWRUV&KHYUROHW%OD]HU&8
&>3&@
*HQHUDO
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW 0RWRUV&KHYUROHW&RORUDGR
;&>/&9@
*HQHUDO
0D[3RZHUKS 0D[7RUTXH1P 0RWRUV*0&$FDGLD&8*
>3&@
*HQHUDO
0D[3RZHUN: 9DOYHV&\OLQGHU 0RWRUV&DGLOODF;7&8/
>3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV )OLQW6RXWK0,
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP 5DPRV$UL]SH
)XHO6\VWHP ',0), &RQILJXUDWLRQ 9 5RPXOXV0,
)XHO7\SH *$6*$6&1**$6( 7RWDO9DOYHV 6W&DWKDULQHV2QWDULR
$VSLUDWLRQ 7&,1$
/D\RXW ))7)5/
$QQXDOL]HG
9ROXPH
+,*+
)($785(9
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
*HQHUDO0RWRUV
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
*HQHUDO
0RWRUV%XLFN*/6*0>
3&@
*HQHUDO
0RWRUV&DGLOODF&726/>
3&@
*HQHUDO
0RWRUV&DGLOODF;7&7/>
3&@
*HQHUDO
0RWRUV&KHYUROHW&DSWLYD'8
&>3&@
/9'2+&9
*HQHUDO
0RWRUV%XLFN(QFODYH'<%
>3&@
*HQHUDO
0RWRUV%XLFN(QFODYH&<%
>3&@
*HQHUDO
0RWRUV%XLFN(QFODYH*07
>3&@
*HQHUDO
0RWRUV%XLFN/D&URVVH(/%
>3&@
*HQHUDO
0RWRUV%XLFN/D&URVVH*0;
>3&@
*HQHUDO
0RWRUV&DGLOODF$76$%/>
3&@
*HQHUDO
0RWRUV&DGLOODF$76$6/>
3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
*HQHUDO
0RWRUV&DGLOODF&7$6/>
3&@
*HQHUDO
0RWRUV&DGLOODF&7$//>
3&@
*HQHUDO
0RWRUV&DGLOODF&726/>
3&@
*HQHUDO
0RWRUV&DGLOODF&76$//>
3&@
*HQHUDO
0RWRUV&DGLOODF65;*07
>3&@
*HQHUDO
0RWRUV&DGLOODF;7&</>
3&@
*HQHUDO
*HQHUDO0RWRUV
0RWRUV&DGLOODF;7(8/>
3&@
*HQHUDO
0RWRUV&DGLOODF;7'8/>
3&@
*HQHUDO
0RWRUV&DGLOODF;7&8/>
3&@
*HQHUDO
0RWRUV&DGLOODF;7&7/>
3&@
*HQHUDO
0RWRUV&DGLOODF;763//>
3&@
*HQHUDO
0RWRUV&KHYUROHW%OD]HU'8
&>3&@
*HQHUDO
0RWRUV&KHYUROHW%OD]HU&8
&>3&@
*HQHUDO
0RWRUV&KHYUROHW&DPDUR$%
&>3&@
*HQHUDO
0RWRUV&KHYUROHW&RORUDGR
;&>/&9@
*HQHUDO
0RWRUV&KHYUROHW&RORUDGR
;&>/&9@
*HQHUDO
0RWRUV&KHYUROHW(TXLQR[*0
7>3&@
*HQHUDO
0RWRUV&KHYUROHW,PSDOD*0;
>3&@
*HQHUDO
0RWRUV&KHYUROHW,PSDOD*0;
>3&@
*HQHUDO
0RWRUV&KHYUROHW7UDYHUVH'
<&>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
*HQHUDO
0RWRUV&KHYUROHW7UDYHUVH&
<&>3&@
*HQHUDO
0RWRUV&KHYUROHW7UDYHUVH*
07>3&@
*HQHUDO
0RWRUV*0&$FDGLD'8*>
3&@
*HQHUDO
0RWRUV*0&$FDGLD&8*>
3&@
*HQHUDO
0RWRUV*0&$FDGLD*07
>3&@
*HQHUDO
0RWRUV*0&&DQ\RQ;*
>/&9@
*HQHUDO
*HQHUDO0RWRUV
0RWRUV*0&&DQ\RQ;*
>/&9@
*HQHUDO
0RWRUV*0&&RPSDFW
6898*>3&@
*HQHUDO
0RWRUV*0&7HUUDLQ*07
>3&@
*HQHUDO
0RWRUV+ROGHQ$FDGLD'8+
>3&@
*HQHUDO
0RWRUV+ROGHQ$FDGLD&8+
>3&@
*HQHUDO
0RWRUV+ROGHQ(TXLQR['8+
>3&@
*HQHUDO
0RWRUV2SHO,QVLJQLD(-2>
3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
)OLQW6RXWK0,8QLWHG
6WDWHV*HQHUDO0RWRUV
/9'2+&9
5DPRV$UL]SH0H[LFR
*HQHUDO0RWRUV
/9'2+&9
5RPXOXV0,8QLWHG6WDWHV
*HQHUDO0RWRUV
/9'2+&9
/9'2+&9
6W&DWKDULQHV2QWDULR
&DQDGD*HQHUDO0RWRUV
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
/9'2+&9
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/9'2+&9
+,*+)($785(97RWDO
*HQHUDO0RWRUV
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&9
*HQHUDO0RWRUV%XLFN*/6*0>3&@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV&DGLOODF&726/>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
*HQHUDO0RWRUV&DGLOODF;7&7/>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
/9'2+&9
*HQHUDO0RWRUV%XLFN/D&URVVH(/%>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&DGLOODF&7$%/>3&@ 'URS (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV&DGLOODF&7$%/>3&@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV&KHYUROHW%OD]HU&8&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW&DPDUR$%&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW&RORUDGR;&>/&9@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW&RORUDGR;&>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW,PSDOD*0;>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW7UDYHUVH'<&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW7UDYHUVH&<&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
9ROXPHV
$QQXDOL]HG
400
/9'2+&/
Thousands
/9'2+&/
200 3ODWIRUP
100
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH/HQJLQHRU/*(DVWKHQH[WJHQHUDWLRQLVUHIHUUHGWRLVVWLOOSURGXFHGDWWZRHQJLQHSODQWVERWK6SULQJ+LOO7HQQHVVHH8QLWHG6WDWHVDQG7RQDZDQGD1HZ
<RUN8QLWHG6WDWHV7KHVHHQJLQHVDUHGLUHFWLQMHFWLRQ',DQGKDYHERWKQDWXUDOO\DVSLUHDWHGDQGWXUERFKDUJHGYHUVLRQV7KHVHHQJLQHVDUHVROLGSHUIRUPHUVIRU
*HQHUDO0RWRUVEXWZLOOEHSUHVVXUHGE\VPDOOHUERRVWHGHQJLQHVZKLFKWKHFRPSDQ\LVFRQWLQXLQJWRPRYHWRZDUG
*HQHUDO0RWRUV
3ODWIRUP6QDSVKRW
7RS9HKLFOH *HQHUDO
9DULDQWV 6SHFLILF7RUTXHOEIW/ $SSOLFDWLRQV%\ 0RWRUV&KHYUROHW(TXLQR['
9ROXPH 8&>3&@
*HQHUDO
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/ 0RWRUV*0&7HUUDLQ'8*
>3&@
*HQHUDO
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW 0RWRUV&KHYUROHW(TXLQR[*
07>3&@
*HQHUDO
0D[3RZHUKS 0D[7RUTXH1P 0RWRUV*0&$FDGLD&8*
>3&@
*HQHUDO
0D[3RZHUN: 9DOYHV&\OLQGHU 0RWRUV&KHYUROHW0DOLEX(6
&>3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV 6SULQJ+LOO71
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP 7RQDZDQGD1<
)XHO6\VWHP ',0), &RQILJXUDWLRQ /
)XHO7\SH *$6*$6(*$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$7&,
/D\RXW ))7)5/057
$QQXDOL]HG
9ROXPH
/*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
*HQHUDO0RWRUV
$QQXDOL]HG
9ROXPH
/9'2+&/
*HQHUDO
0RWRUV%XLFN5HJDO*0;
>3&@
*HQHUDO
0RWRUV%XLFN9HUDQR'6%>
3&@
*HQHUDO
0RWRUV%XLFN9HUDQR'6%>
3&@
*HQHUDO
0RWRUV&DGLOODF$76$%/>
3&@
*HQHUDO
0RWRUV&DGLOODF$76$6/>
3&@
*HQHUDO
0RWRUV&DGLOODF&7$6/>
3&@
*HQHUDO
0RWRUV&DGLOODF&7$//>
3&@
*HQHUDO
0RWRUV&DGLOODF&726/>
3&@
*HQHUDO
0RWRUV&DGLOODF&76$//>
3&@
*HQHUDO
0RWRUV&DGLOODF;7'8/>
3&@
*HQHUDO
0RWRUV&DGLOODF;7&8/>
3&@
*HQHUDO
0RWRUV&KHYUROHW&DPDUR$%
&>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
*HQHUDO
0RWRUV&KHYUROHW(TXLQR['
8&>3&@
*HQHUDO
0RWRUV&KHYUROHW0DOLEX(6
&>3&@
*HQHUDO
0RWRUV&KHYUROHW0DOLEX*0;
>3&@
*HQHUDO
0RWRUV*0&7HUUDLQ'8*>
3&@
*HQHUDO
0RWRUV2SHO$VWUD'-2>
3&@
*HQHUDO
0RWRUV2SHO$VWUD*03
>3&@
*HQHUDO
*HQHUDO0RWRUV
0RWRUV2SHO,QVLJQLD(-2>
3&@
*HQHUDO
0RWRUV2SHO,QVLJQLD*0
*>3&@
.DUPD$XWRPRWLYH.DUPD
$XWRPRWLYH5HYHUR.>
3&@
/9'2+&/
*HQHUDO
0RWRUV%XLFN/D&URVVH*0;
>3&@
*HQHUDO
0RWRUV%XLFN5HJDO*0;
>3&@
*HQHUDO
0RWRUV%XLFN9HUDQR'6%>
3&@
*HQHUDO
0RWRUV&KHYUROHW&DSWLYD
6SRUW*07>3&@
*HQHUDO
0RWRUV&KHYUROHW&DSWLYD&
>3&@
*HQHUDO
0RWRUV&KHYUROHW(TXLQR[*0
7>3&@
*HQHUDO
0RWRUV*0&7HUUDLQ*07
>3&@
*HQHUDO
0RWRUV2SHO$QWDUD&>
3&@
/9'2+&/
*HQHUDO
0RWRUV%XLFN/D&URVVH(/%
>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
*HQHUDO
0RWRUV&DGLOODF$76$%/>
3&@
*HQHUDO
0RWRUV&DGLOODF$76$6/>
3&@
*HQHUDO
0RWRUV&KHYUROHW&RORUDGR
;&>/&9@
*HQHUDO
0RWRUV&KHYUROHW&RORUDGR
;&>/&9@
*HQHUDO
0RWRUV&KHYUROHW,PSDOD*0;
>3&@
*HQHUDO
0RWRUV&KHYUROHW0DOLEX(6
&>3&@
*HQHUDO
*HQHUDO0RWRUV
0RWRUV&KHYUROHW0DOLEX*0;
>3&@
*HQHUDO0RWRUV&KHYUROHW6
*0L>/&9@
*HQHUDO
0RWRUV*0&$FDGLD&8*>
3&@
*HQHUDO
0RWRUV*0&&DQ\RQ;*
>/&9@
*HQHUDO
0RWRUV*0&&DQ\RQ;*
>/&9@
*HQHUDO
0RWRUV*0&&RPSDFW
6898*>3&@
*HQHUDO
0RWRUV+ROGHQ(TXLQR['8+
>3&@
,VX]X,VX]X3LFNXS5*>
/&9@
3URGXFWLRQE\3ODQW
9ROXPHV $QQXDOL]HG
9ROXPH
6SULQJ+LOO718QLWHG6WDWHV
*HQHUDO0RWRUV
/9'2+&/
/9'2+&/
7RQDZDQGD1<8QLWHG
6WDWHV*HQHUDO0RWRUV
/9'2+&/
/9'2+&/
/9'2+&/
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
/9'2+&/
/7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
*HQHUDO0RWRUV%XLFN9HUDQR'6%>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&DGLOODF&7$%/>3&@ 'URS (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV&DGLOODF&7$%/>3&@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV&DGLOODF;7'8/>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW&DPDUR$%&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV
/9'2+&/
*HQHUDO0RWRUV%XLFN/D&URVVH(/%>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&DGLOODF$76$%/>3&@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV&DGLOODF$76$6/>3&@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV&KHYUROHW&RORUDGR;&>/&9@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW&RORUDGR;&>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW,PSDOD*0;>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW0DOLEX(6&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW6*0L>/&9@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
*HQHUDO0RWRUV&KHYUROHW66;;>/&9@ 'URS (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV&KHYUROHW66;;>/&9@ 'URS 9HKLFOH/LIHF\FOH
9ROXPHV
$QQXDOL]HG
800
/9'2+&/
Thousands
3ODWIRUP
400
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH6*(SODWIRUPVWDQGVIRUVPDOOJDVHQJLQHDQGLVDOVRVRPHWLPHVUHIHUUHGWRDV0,&527(&
&XUUHQWO\LWLQFOXGHVD/F\OLQGHUHQJLQHZKLFKZLOOUHSODFHWKH/23(/)$0,/<HQJLQHIRU1RUWK$PHULFD/LNHWKH23(/)$0,/<HQJLQHWKH6*(HQJLQH
ZLOODOVREHEXLOWDWWKH)OLQW6RXWK8QLWHG6WDWHVHQJLQHSODQWDVZHOODVWKH7ROXFD0H[LFRSODQWZLWKYROXPHUDPSLQJXSLQ&XUUHQWYROXPHSURMHFWLRQVKDYH
EHHQHVWLPDWHGDWDSSUR[LPDWHO\HQJLQHVSHU\HDUSHUSODQWKRZHYHUZHDUHKHDULQJYROXPHHVWLPDWHVWKDWDUHVLJQLILFDQWO\KLJKHUDQGZHDUHDQDO\]LQJWKRVH
YROXPHV
*HQHUDO0RWRUV
7KHUHLVDOVRDF\OLQGHUYHUVLRQRIIWKLVSODWIRUPDQGDODUJHU/HQJLQHHLWKHURIZKLFKFRXOGEHPDWHGWRK\EULGDSSOLFDWLRQV+RZHYHUWKH/F\OLQGHUYDULDQWLV
XVHGIRUWKH&DGLOODF(/5
3ODWIRUP6QDSVKRW
7RS9HKLFOH *HQHUDO
9DULDQWV 6SHFLILF7RUTXHOEIW/ $SSOLFDWLRQV%\ 0RWRUV&KHYUROHW&UX]H'/
9ROXPH &>3&@
*HQHUDO
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/ 0RWRUV&KHYUROHW(TXLQR['
8&>3&@
*HQHUDO
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW 0RWRUV&KHYUROHW0DOLEX(6
&>3&@
*HQHUDO
0D[3RZHUKS 0D[7RUTXH1P 0RWRUV*0&7HUUDLQ'8*
>3&@
*HQHUDO
0D[3RZHUN: 9DOYHV&\OLQGHU 0RWRUV&KHYUROHW0DOLEX'
6&>3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV )OLQW6RXWK0,
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP 6SULQJ+LOO71
)XHO6\VWHP ', &RQILJXUDWLRQ / 7ROXFD
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$7&,
/D\RXW ))7
$QQXDOL]HG
9ROXPH
6*(*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
*HQHUDO0RWRUV
$QQXDOL]HG
9ROXPH
/9'2+&/
*HQHUDO
0RWRUV&KHYUROHW&UX]H'/&
>3&@
*HQHUDO
0RWRUV&KHYUROHW7UD[*8&
>3&@
/9'2+&/
*HQHUDO
0RWRUV%XLFN9HOLWH'-%,>
3&@
*HQHUDO
0RWRUV%XLFN9HOLWH'-%,
>3&@
*HQHUDO
0RWRUV&KHYUROHW(TXLQR['
8&>3&@
*HQHUDO
0RWRUV&KHYUROHW(TXLQR[*0
7>3&@
*HQHUDO
0RWRUV&KHYUROHW0DOLEX'6
&>3&@
*HQHUDO
0RWRUV&KHYUROHW0DOLEX(6
&>3&@
*HQHUDO
0RWRUV&KHYUROHW9ROW'-&,
>3&@
*HQHUDO
0RWRUV*0&7HUUDLQ'8*>
3&@
*HQHUDO
0RWRUV+ROGHQ(TXLQR['8+
>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
)OLQW6RXWK0,8QLWHG
6WDWHV*HQHUDO0RWRUV
/9'2+&/
6SULQJ+LOO718QLWHG6WDWHV
*HQHUDO0RWRUV
/9'2+&/
/9'2+&/
7ROXFD0H[LFR*HQHUDO
0RWRUV
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
*HQHUDO0RWRUV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
6*(7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
*HQHUDO0RWRUV&KHYUROHW&UX]H'/&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW7UD[*8&>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/9'2+&/
*HQHUDO0RWRUV&KHYUROHW(TXLQR['8&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW0DOLEX'6&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW0DOLEX(6&>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV&KHYUROHW9ROW&-&,>3&@ 'URS (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV&KHYUROHW9ROW&-&,>3&@ 'URS 9HKLFOH/LIHF\FOH
*HQHUDO0RWRUV*0&7HUUDLQ'8*>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
*HQHUDO0RWRUV+ROGHQ(TXLQR['8+>3&@ $GG (QJLQH$SSOLFDWLRQ
*HQHUDO0RWRUV+ROGHQ(TXLQR['8+>3&@ $GG 9HKLFOH/LIHF\FOH
9ROXPHV
$QQXDOL]HG
2,000
$QQD2+8QLWHG6WDWHV
Thousands
&HOD\D0H[LFR
1,000 /LQFROQ$/8QLWHG6WDWHV
+RQGD7RWDO
500
0
2017
2018
2019
2020
2021
2022
2023
2024
5HJLRQDO6WUDWHJLF+LJKOLJKWV Top Five North America Platforms
Engine Production
+RQGD
V FXUUHQW HQJLQH SODWIRUPV DUH UHIHUUHG WR LQWHUQDOO\ DV WKH 13 VHULHV ,WV 1.2
QH[W JHQHUDWLRQ RI HQJLQHV ZLOO EH UHIHUUHG WR DV WKH $3 VHULHV DQG ZLOO LQFOXGH
PXOWLSRLQW IXHO LQMHFWLRQ DQG GLUHFW LQMHFWLRQ JDVROLQH HQJLQHV DV ZHOO DV
1
WXUERFKDUJHGPRGHOV
Production in Millions
0.8
+RQGD KDV FDQFHOHG WKH $3 SURJUDP IRU 1RUWK $PHULFD DQG ZH DUH LQ WKH
SURFHVVRIDGGLQJVRPHQHZF\OLQGHUHQJLQHVIRU+RQGD+RQGD LVZRUNLQJRQ New-L (AP2)
WZR QHZ HQJLQHV IRU WKH 86 PDUNHW 7KH ILUVW LV D / WXUERFKDUJHG LQWHUFRROHG 0.6 J
7&, HQJLQH IROORZHG E\ D VPDOOHU / 7&, HQJLQH 7KH / HQJLQH ZLOO OLNHO\ New-K (AP4)
K
UHSODFHWKH/DQG/QDWXUDOO\DVSLUDWHGHQJLQHV 0.4 R
:HH[SHFWWKHQHZHQJLQHVWREHEXLOWDWWKHVDPHHQJLQHSODQWVWKDWEXLOGWRGD\
V 0.2
+RQGD
HQJLQHV$QQD2KLR8QLWHG6WDWHV/LQFROQ$ODEDPD8QLWHG6WDWHVDQG$OOLVWRQ
&DQDGDDOWKRXJKZHDUHZRUNLQJWRFRQILUPWKLVSODQW:HDOVROHDUQHGWKHUHZLOO 0
EHDQHQJLQHSODQWDVSDUWRIWKHQHZ+RQGD)LWYHKLFOHSODQWLQ&HOD\D0H[LFR
2017
2018
2019
2020
2021
2022
2023
2024
$W WKLV WLPH WKH IRUHFDVW UHIOHFWV ERWK / DQG / HQJLQHV IURP WKH 1HZ/
SODWIRUPEHLQJEXLOWLQ0H[LFR
$/WXUERFKDUJHG9HQJLQHZLWKHQJLQHHULQJEHLQJOHGRXWRI1RUWK$PHULFD
:HGRQRWKDYHDQ\VSHFLILFDWLRQV\HWEXWLQLWLDOYROXPHVDUHDURXQGSHU
\HDUVWDUWLQJWKLV\HDU
)XHOFHOOYHKLFOHVDUHGHILQLWHO\DSDUWRI+RQGD
VVWUDWHJLFSODQV+RQGDKDVPDGH
WUHPHQGRXVSURJUHVVLQIXHOFHOOGHYHORSPHQWWKURXJKJHQHUDWLRQVRIWKH)&;DQG
)&; &ODULW\ 7KH GDWD RQ FXVWRPHU XVDJH LV H[WUHPHO\ YDOXDEOH LQ WDLORULQJ D
FRPSOHWHO\QHZWHFKQRORJ\WRFRQVXPHUVDQGVKRUWHQLQJWKHOHDUQLQJFXUYHRIWHQ
H[SHULHQFHGLQWKHLQGXVWU\+RQGDDQGLWVIXHOFHOOSDUWQHU*HQHUDO0RWRUV*0
KDYH EHHQ DEOH WR VKDUH UHVHDUFK DQG GHYHORSPHQW FRVWV DQG WKH IUXLWV RI WKH
YHQWXUH DUULYHG ZLWK +RQGD
V )&9 VHGDQ *0 LV H[SHFWHG WR ODXQFK D IXHOFHOO
YHKLFOHDURXQG7KH&ODULW\)XHO&HOOZLOODUULYHLQLQVKRZURRPVLQODWH
ZLWKDSULFHWDJDURXQG86'
+RQGDLQWHQGVWRPDNHWZRWKLUGVRILWVJOREDODXWRVDOHVIURPHOHFWULILHGYHKLFOHV
E\ $QRWKHU VWHS LQ WKLV GLUHFWLRQ ZLOO EH DGGLQJ HOHFWULILHG YHUVLRQV RI WKH
&ODULW\PDNLQJLWWKHILUVWPRGHORIIHUHGLQIXHOFHOOEDWWHU\HOHFWULFYHKLFOH%(9
DQG SOXJLQ K\EULG HOHFWULF 3+(9 YHUVLRQV 6DOHV ZLOO OLNHO\ EHJLQ DW WKH HQG RI
ZLWKWKH%(9YHUVLRQH[SHFWHGWRRQO\EHRIIHUHGLQOLPLWHGVWDWHVZKHUHDV
WKH 3+(9 ZLOO EH DYDLODEOH LQ DOO VWDWHV 7KH 3+(9 ZLOO IHDWXUH DQ DOOHOHFWULF
GULYLQJUDQJHRIDSSUR[LPDWHO\PLOHV
$QQXDOL]HG
9ROXPH
+RQGD*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
*OREDO(QJLQH&DSDFLW\$QDO\VLV
9ROXPHV
+RQGD
0RGXOH8WLOL]DWLRQ
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
Alliston, CAN
Anna, OH, USA
Celaya, MEX
Lincoln, AL, USA
0IU+RQGD
$OOLVWRQ
&$1 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
1HZ.$3 _ _ _ _ _ _ _ _
1HZ/$3 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU+RQGD
$QQD2+
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
- _ _ _ _ _ _ _ _
. _ _ _ _ _ _ _ _
1HZ.$3 _ _ _ _ _ _ _ _
1HZ5$3 _ _ _ _ _ _ _ _
5 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU+RQGD
&HOD\D
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
1HZ/$3 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
+RQGD
0IU+RQGD
/LQFROQ$/
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
- _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
100%
80%
Market Share
60% Honda Gas
North America Gas
North America Diesel
40% Honda Diesel
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
3RZHU'HQVLW\ OEM vs Regional
Power Density
+RQGDLVDKHDGRIWKHUHJLRQDODYHUDJHSRZHUGHQVLW\EHFDXVHRILWVKHDY\ 100.0
DGRSWLRQRIYDULDEOHYDOYHWLPLQJ997DQGOLIW99/V\VWHPVWKDWLWFDOOV97(&
DQGLWVSURGXFWPL[RIVPDOOHQJLQHV,QWKHRXWHU\HDUVKRZHYHU+RQGD
V
FRPSHWLWLRQZLOOFDWFKXSDVPRUHDQGPRUHDXWRPDNHUVWXUQWRWXUERFKDUJLQJWR 80.0
Weighted Average
60.0
Honda
40.0 North America
20.0
+RQGD
0.0
2017
2018
2019
2020
2021
2022
2023
2024
'LVSODFHPHQW OEM vs Regional
Displacement
+RQGD
V1RUWK$PHULFDQYHKLFOHSURGXFWLRQPL[DEVHQWRIODUJHSLFNXSVDQGODUJH 3.5
689VUHTXLUHVVLJQLILFDQWO\VPDOOHUWKDQDYHUDJHHQJLQHGLVSODFHPHQWVFRPSDUHG
ZLWKFRPSHWLWLYHRIIHULQJVIURPRWKHUYHKLFOHPDQXIDFWXUHUV 3.0
Weighted Avearage
2.5
Displacement
2.0
North America
1.5
Honda
1.0
0.5
0.0
2017
2018
2019
2020
2021
2022
2023
2024
100.0%
80.0%
Market Share
Honda Alum
North America Alum
60.0% North America Iron
North America CGI
Honda Alum/Magnesium
40.0% Honda CGI
Honda Iron
North America Alum/Magnesium
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
Weighted Average
100.0
80.0
Honda
North America
60.0
40.0
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
&\OLQGHUV OEM vs Regional
Cylinders
+RQGDSURGXFHVRQO\DQGF\OLQGHUHQJLQHVLQ1RUWK$PHULFD 6.0
Number of Cylinders
Weighted Average
4.0
North America
Honda
2.0
+RQGD
0.0
2017
2018
2019
2020
2021
2022
2023
2024
$VSLUDWLRQ OEM vs Regional
Aspiration
+RQGDKDVVWRSSHGSURGXFWLRQRIWKHRQH/WXUERHQJLQHSURJUDPLQ1RUWK 80.0%
$PHULFDDQGLWLVWKH/.HQJLQHXVHGRQO\LQWKH$FXUD5';
/RQJHUWHUP+RQGDLVGHYHORSLQJD/WXUERFKDUJHGHQJLQHRIIWKHQHZ$3
60.0%
SODWIRUP
Market Share
Honda Turbo
40.0% North America Turbo
North America Natural
Honda Natural
North America Super
Honda Super
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
Market Share
2QHPRWRUV\VWHPFRPELQHGZLWKD/F\OLQGHU/6HULHVHQJLQHWKHV\VWHP 10.0%
XVHVDQHOHFWULFPRWRUDQGOLWKLXPLRQ/LLRQEDWWHU\
8.0% Honda Hybrid-Full
North America Hybrid-Full
7ZRPRWRUV\VWHPFRPELQHGZLWKD1HZ./F\OLQGHUHQJLQHWKHV\VWHP 6.0% North America Hybrid-Mild
Honda Hybrid-Mild
XVHVWZREXLOWLQPRWRUVDQGD/LLRQEDWWHU\
4.0%
7KUHHPRWRUV\VWHP$OVRFDOOHGWKHWKUHHPRWRU6+$:'VLQFHLWZLOOEHXVHG 2.0%
ZLWK$FXUDWRSURYLGH6XSHU+DQGOLQJ$OO:KHHO'ULYH6+$:'7KHWKUHHPRWRU
V\VWHPJHWVPDWHGZLWKD9DQGDQHZO\GHYHORSHGVSHHGGXDOFOXWFK 0.0%
2017
2018
2019
2020
2021
2022
2023
2024
WUDQVPLVVLRQV\VWHPZLWKDEXLOWLQPRWRU,WXVHVWZRHOHFWULFPRWRUVLQWKHUHDUWR
FRQWUROWRUTXHGLVWULEXWLRQWRWKHULJKWDQGOHIWUHDUZKHHOV7KLVSURJUHVVZLOOQRW
KDSSHQZLWKRXWJURZLQJSDLQV3URGXFWLRQRIWKH$FFRUG+\EULGZLOOEHPRYHGWR
-DSDQDZD\IURPWKH0DU\VYLOOH2KLR8QLWHG6WDWHVIDFLOLW\7KH$FFRUG3OXJ,Q
ZLOOQRORQJHUEHVROGLQ1RUWK$PHULFDEXWLVH[SHFWHGWRUHWXUQE\/LNH
)RUG+RQGDLVH[SHFWHGWRODXQFKDGHGLFDWHGK\EULGPRGHOWKDWLVH[SHFWHGWREH
VROGDVEDWWHU\HOHFWULFDQGDSOXJLQK\EULG
,QD+RQGD2G\VVH\3+(9LVH[SHFWHGWRMRLQ)&$
V3DFLILFD3+(9LQWKH
PDUNHW
60%
+RQGD
Honda
40% North America
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
9DULDEOH9DOYH7LPLQJ OEM vs Regional
Variable Valve Timing
$OO+RQGDHQJLQHVDUHHTXLSSHGZLWK997 120%
+RQGDLVSXVKLQJWKH997HQYHORSHZLWKDGYDQFHG97(&RQWKHQH[WJHQHUDWLRQ 100%
.SODWIRUP-SODWIRUP9HQJLQHVDUHXVLQJ97(&ZLWKDGYDQFHGF\OLQGHU
GHDFWLYDWLRQHQDEOLQJWKHXVHRIRUF\OLQGHUFRQILJXUDWLRQV
80%
Market Share
60%
Honda
North America
40%
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
+RQGD
/962+&
9
9
/9'2+&
9
/962+&
9
9ROXPHV
$QQXDOL]HG
600
/9'2+&9
400 /962+&9
Thousands
/9'2+&9
/962+&9
3ODWIRUP
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
+RQGDZDVSODQQLQJDUHSODFHPHQWIRUWKH-SODWIRUPEXWLWDSSHDUVLWZLOOXSJUDGHWKHFXUUHQW9E\DGGLQJGLUHFWLQMHFWLRQ',DQGWKHHQJLQHVKRXOGUHWDLQLWVF\OLQGHU
GHDFWLYDWLRQOLNHWKHFXUUHQWPRGHO7LPLQJKDVQRWEHHQFRQILUPHGEXWLWLVH[SHFWHGZLWKLQDFRXSOHRI\HDUV
+RQGDZLOODOVRODXQFKWKH$3HQJLQHDWZLQWXUER9WKDWZLOOOLNHO\EHUHVHUYHGIRU$FXUDYHKLFOHVDQGLVVODWHGIRUHQJLQHVSHU\HDU
3ODWIRUP6QDSVKRW
7RS9HKLFOH +RQGD+RQGD2G\VVH\<0
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >3&@
+RQGD
9ROXPH
+RQGD+RQGD3LORW6)>
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
3&@
+RQGD+RQGD3LORW6)
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
>3&@
+RQGD+RQGD3DVVSRUW1;
0D[3RZHUKS 0D[7RUTXH1P
>3&@
+RQGD$FXUD0';6/>
0D[3RZHUN: 9DOYHV&\OLQGHU
3&@
9DOYHWUDLQ '2+&62+& %ORFN0DWHULDO $OXPLQXP 3ODQWV $QQD2+
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP /LQFROQ$/
)XHO6\VWHP ',0), &RQILJXUDWLRQ 9
)XHO7\SH *$6 7RWDO9DOYHV
$VSLUDWLRQ 7&,1$7&,
/D\RXW ))705/
$QQXDOL]HG
9ROXPH
-*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
+RQGD
/9'2+&9
+RQGD$FXUD0';71>
3&@
+RQGD$FXUD5/;+'>
3&@
+RQGD$FXUD7/;);>
3&@
+RQGD+RQGD2G\VVH\<0
>3&@
+RQGD+RQGD3DVVSRUW1;
>3&@
+RQGD+RQGD3DVVSRUW1;
>3&@
+RQGD+RQGD3LORW6)>
3&@
/962+&9
+RQGD$FXUD0';6/>
3&@
+RQGD$FXUD0';71>
3&@
+RQGD$FXUD5';$6>
3&@
+RQGD$FXUD5';'8>
3&@
+RQGD$FXUD5';'8>
3&@
+RQGD+RQGD3LORW6)>
3&@
/9'2+&9
+RQGD$FXUD16;6'>
3&@
+RQGD$FXUD16;6'>
3&@
/962+&9
9ROXPHV
$QQXDOL]HG
9ROXPH
+RQGD$FXUD0';6/>
3&@
+RQGD$FXUD5';$6>
3&@
+RQGD$FXUD5/;+'>
3&@
+RQGD$FXUD7/;*9>
3&@
+RQGD+RQGD$FFRUG*$>
3&@
+RQGD+RQGD2G\VVH\0+
>3&@
+RQGD+RQGD2G\VVH\<0
>3&@
+RQGD+RQGD3DVVSRUW1;
>3&@
+RQGD+RQGD3DVVSRUW1;
>3&@
+RQGD+RQGD3LORW6)>
3&@
+RQGD+RQGD3LORW6)>
3&@
+RQGD
+RQGD+RQGD5LGJHOLQH.0
>/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
$QQD2+8QLWHG6WDWHV
+RQGD
/962+&9
/962+&9
/LQFROQ$/8QLWHG6WDWHV
+RQGD
/9'2+&9
/9'2+&9
/962+&9
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/962+&9
/9'2+&9
/962+&9
-7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&9
+RQGD+RQGD3DVVSRUW1;>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
+RQGD+RQGD3LORW6)>3&@ $GG (QJLQH$SSOLFDWLRQ
+RQGD+RQGD3LORW6)>3&@ $GG 9HKLFOH/LIHF\FOH
/962+&9
+RQGD+RQGD3LORW6)>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/962+&9
+RQGD
+RQGD+RQGD3DVVSRUW1;>3&@ $GG (QJLQH$SSOLFDWLRQ
+RQGD+RQGD3DVVSRUW1;>3&@ $GG 9HKLFOH/LIHF\FOH
+RQGD+RQGD3LORW6)>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
9ROXPHV
$QQXDOL]HG
300
250
/9'2+&/
200 3ODWIRUP
Thousands
150
100
50
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
+RQGD
V.SODWIRUPHQJLQHZLOOFRQWLQXHZLWKRXWDQ\WHFKQRORJ\FDGHQFHVXQWLOWKHQH[WJHQHUDWLRQHQJLQHODXQFKHV7KH1HZ.HQJLQHODXQFKHGLQ-DSDQLQDQGLQ
1RUWK$PHULFDWRFRLQFLGHZLWKWKHQHZ+RQGD$FFRUGODXQFK
3ODWIRUP6QDSVKRW
7RS9HKLFOH +RQGD+RQGD&LYLF69>
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 3&@
9ROXPH
+RQGD+RQGD&59:6>
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
+RQGD
3&@
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
0D[3RZHUKS 0D[7RUTXH1P
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+&62+& %ORFN0DWHULDO $OXPLQXP 3ODQWV $QQD2+
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP 0), &RQILJXUDWLRQ /
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$7&,
/D\RXW ))7
$QQXDOL]HG
9ROXPH
.*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
+RQGD
/9'2+&/
+RQGD+RQGD&LYLF69>
3&@
+RQGD+RQGD&59:6>
3&@
/9'2+&/
+RQGD+RQGD&59:6>
3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
$QQD2+8QLWHG6WDWHV
+RQGD
/9'2+&/
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
.7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
+RQGD+RQGD&LYLF69>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
+RQGD
9ROXPHV
$QQXDOL]HG
400
/9'2+&/
Thousands
3ODWIRUP
200
100
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH1HZ.$3SODWIRUPLVWKHVXFFHVVRUWRWKH.SODWIRUP7KHVHHQJLQHVZLOOKDYHWZRIXHOV\VWHPVZLWKERWKPXOWLSRUWIXHOLQMHFWLRQDQGGLUHFWLQMHFWLRQYHUVLRQV
DYDLODEOH7KHGLVSODFHPHQWUHPDLQVDW/7KHILUVWYHKLFOHWRWDNHWKHQHZHQJLQHZDVWKH+RQGD$FFRUG7KHEDVHHQJLQHZLOOEHWKHJDVROLQHGLUHFWLQMHFWLRQ
YHUVLRQRIWKH/$3SODWIRUP
3ODWIRUP6QDSVKRW
+RQGD
7RS9HKLFOH +RQGD+RQGD&LYLF69
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >3&@
9ROXPH
+RQGD+RQGD&59+;>
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
3&@
+RQGD+RQGD$FFRUG*$
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
>3&@
+RQGD$FXUD5';'8>
0D[3RZHUKS 0D[7RUTXH1P
3&@
+RQGD+RQGD$FFRUG-$>
0D[3RZHUN: 9DOYHV&\OLQGHU
3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV $OOLVWRQ
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP $QQD2+
)XHO6\VWHP ',0), &RQILJXUDWLRQ /
)XHO7\SH *$6*$6(*$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$7&,
/D\RXW ))7
$QQXDOL]HG
9ROXPH
1HZ.$3
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
+RQGD
/9'2+&/
+RQGD$FXUD,/;7$>
3&@
+RQGD$FXUD5';'8>
3&@
+RQGD$FXUD5';'8>
3&@
+RQGD+RQGD$FFRUG-$>
3&@
+RQGD+RQGD$FFRUG-$
>3&@
+RQGD+RQGD&LYLF.&>
3&@
+RQGD+RQGD&LYLF69>
3&@
+RQGD+RQGD&LYLF69>
3&@
+RQGD+RQGD&59+;>
3&@
+RQGD+RQGD&59+;
>3&@
+RQGD+RQGD5LGJHOLQH.0
>/&9@
/9'2+&/
+RQGD$FXUD,/;7$>
3&@
+RQGD$FXUD7/;*9>
3&@
+RQGD+RQGD$FFRUG*$>
3&@
+RQGD+RQGD&59+;>
3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
$OOLVWRQ&DQDGD+RQGD
/9'2+&/
$QQD2+8QLWHG6WDWHV
+RQGD
/9'2+&/
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
1HZ.$37RWDO
+RQGD
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
+RQGD+RQGD$FFRUG-$>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
+RQGD+RQGD$FFRUG-$>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
+RQGD+RQGD&LYLF69>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
+RQGD+RQGD&59+;>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
+RQGD+RQGD&59+;>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
/9'2+&/
+RQGD+RQGD&59+;>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
9ROXPHV
$QQXDOL]HG
120
100
/962+&/
80 3ODWIRUP
Thousands
60
40
20
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KHFXUUHQWJHQHUDWLRQ5SODWIRUPZLOOVWDUWWRGHFOLQHLQYROXPHDV+RQGDUHDGLHVLWVUHSODFHPHQWWKH1HZ/RU$3HQJLQH
3ODWIRUP6QDSVKRW
7RS9HKLFOH +RQGD+RQGD+59;3>
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ 3&@
9ROXPH
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
+RQGD
$QQXDOL]HG
9ROXPH
5*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
+RQGD
/962+&/
+RQGD+RQGD+59;3>
3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
$QQD2+8QLWHG6WDWHV
+RQGD
/962+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/962+&/
57RWDO
9ROXPHV
$QQXDOL]HG
1,400
1,200
+RSH+XOO$/8QLWHG6WDWHV
1,000
0RQWHUUH\0H[LFR
Thousands
600
400
200
0
2017
2018
2019
2020
2021
2022
2023
2024
5HJLRQDO6WUDWHJLF+LJKOLJKWV Top Five North America Platforms
Engine Production
+\XQGDL
V UHFHQW VXFFHVV DQG JURZWK LQ 1RUWK $PHULFD VKRXOG OHDG WR IXWXUH 0.8
H[SDQVLRQVDQGQHZIDFLOLWLHVDVLWFRQWLQXHVWRJDLQPDUNHWVKDUHLQWKHUHJLRQ
+\XQGDL
V RQO\ FXUUHQW 86 HQJLQH IDFLOLW\ LV LQ $ODEDPD ,W VXSSRUWV ORFDO
Production in Millions
0.6
SURGXFWLRQ RI :25/' (1*,1( 7+(7$ HQJLQHV IRU +\XQGDL DQG .LD YHKLFOHV
DQG18/HQJLQHV+\XQGDLLPSRUWVPDQ\RILWVHQJLQHVIURP.RUHD
G4-NU
0.4
7KHUH LV DOVR D FKDQFH WKDW D VHSDUDWH GLYLVLRQ RI +\XQGDL FDOOHG +\XQGDL :,$ G4-GAMMA
G4-KAPPA
PD\EXLOGDQHQJLQHSODQWLQ0H[LFRWREXLOGVPDOOHUHQJLQHV7KHVHHQJLQHVFRXOG WORLD ENGINE L4
EHIURPWKH*.$33$RU**$00$HQJLQHSODWIRUPV G6-LAMBDA
0.2
0
2017
2018
2019
2020
2021
2022
2023
2024
+\XQGDL
$QQXDOL]HG
9ROXPH
+\XQGDL
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
*OREDO(QJLQH&DSDFLW\$QDO\VLV
9ROXPHV
+\XQGDL
3URGXFWLRQ
0RGXOH&DSDFLW\
0RGXOH8WLOL]DWLRQ
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
+\XQGDL$QDO\VLV
1RUWK$PHULFD(QJLQH3ODQW/RFDWLRQV
+\XQGDL
0IU+\XQGDL
+RSH+XOO$/
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
**$00$ _ _ _ _ _ _ _ _
*18 _ _ _ _ _ _ _ _
:25/'(1*,1(/ _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU+\XQGDL
0RQWHUUH\
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
**$00$ _ _ _ _ _ _ _ _
*.$33$ _ _ _ _ _ _ _ _
*18 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
+\XQGDL
,WRQFHKDGSODQVWRLQWURGXFHGLHVHOHQJLQHVIRUVDOHLQWKH1RUWK$PHULFDQ 100%
PDUNHWEXWWKRVHSODQVKDYHEHHQSXWRQKROG
80%
Market Share
60% Hyundai Gas
North America Gas
North America Diesel
40% Hyundai Diesel
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
3RZHU'HQVLW\ OEM vs Regional
Power Density
+\XQGDLDOUHDG\KDVKLJKHUWKDQDYHUDJHSRZHUGHQVLW\EHFDXVHRILWVKLJK 80.0
UHOLDQFHRQDQGF\OLQGHUHQJLQHVZLWK'2+&+\XQGDLDGGHGWL9&7WRPDQ\
RILWVFXUUHQWHQJLQHVZKLFKLQFUHDVHGERWKSRZHUDQGIXHOHIILFLHQF\DQGLV
PRYLQJWRZDUGVDKLJKHUYROXPHRI*',
Weighted Average
40.0
North America
Hyundai
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
+\XQGDL
+\XQGDL
V9HQJLQHVZKLFKDUHXVHGLQWKH*HQHVLVVHGDQDUHLPSRUWHGIURP 2.5
Displacement
.RUHDDOVR
2.0
North America
1.5
Hyundai
1.0
0.5
0.0
2017
2018
2019
2020
2021
2022
2023
2024
80.0%
Market Share
Hyundai Alum
North America Alum
60.0% North America Iron
North America CGI
Hyundai Alum/Magnesium
40.0% Hyundai CGI
Hyundai Iron
North America Alum/Magnesium
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
80.0
North America
60.0
Hyundai
40.0
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
&\OLQGHUV OEM vs Regional
Cylinders
+\XQGDL
VF\OLQGHUFRXQWLVDQHYHQDV9SURGXFWLRQZLOOHQGLQHDUO\ 6.0
Number of Cylinders
Weighted Average
4.0
North America
Hyundai
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
+\XQGDL
$VSLUDWLRQ OEM vs Regional
Aspiration
,WLVH[SHFWHGWKDW+\XQGDLZLOOEHJLQWRPDQXIDFWXUHWKHQH[WJHQHUDWLRQ:25/' 100.0%
(1*,1(7+(7$WXUERFKDUJHG/HQJLQHZLWKGLUHFWLQMHFWLRQ',LQ1RUWK
$PHULFD
80.0%
Market Share
60.0%
Hyundai Natural
North America Turbo
North America Natural
40.0% Hyundai Turbo
North America Super
Hyundai Super
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
Market Share
6.0%
North America Hybrid-Full
Hyundai Hybrid-Full
4.0% North America Hybrid-Mild
Hyundai Hybrid-Mild
2.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
'LUHFW,QMHFWLRQ OEM vs Regional
Direct Injection
+\XQGDLDGGHG',WRWKHQH[WJHQHUDWLRQ:25/'(1*,1(7+(7$DWWKH 100%
$ODEDPDSODQWIRUWKH+\XQGDL6RQDWD
,QDGGLWLRQWKH9HQJLQHVFXUUHQWO\XQGHUGHYHORSPHQWDUHXOWLPDWHO\H[SHFWHGWR 80%
EHGHSOR\HGLQ1RUWK$PHULFDZLWK',
Market Share
60%
Hyundai
40% North America
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
+\XQGDL
80%
Market Share
60%
Hyundai
North America
40%
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
+\XQGDL
9ROXPHV
$QQXDOL]HG
800
/9'2+&/
Thousands
3ODWIRUP
400
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH+\XQGDL*18SODWIRUPLVDPLGVL]HJDVROLQHHQJLQHSODWIRUPDQGLQFOXGHVLQOLQHF\OLQGHUHQJLQHVZLWKGLVSODFHPHQWVRI/DQG/
,Q.RUHDWKH*18SODWIRUPHQJLQHZLOOEHWKHVXFFHVVRUWRWKHFXUUHQW:25/'(1*,1(/SODWIRUPHQJLQH,Q1RUWK$PHULFDKRZHYHUWKH*18ZLOOFRPSOHPHQW
WKH:25/'HQJLQHDVDVPDOOHUDOWHUQDWLYHWKDW+\XQGDLGXEEHG7+(7$
,QHDUO\WKH+RSH+XOO86SODQWHQGHGSURGXFWLRQRIWKH/$0%'$9HQJLQHVDQGEHJDQUHWRROLQJWKHOLQHWRSURGXFH*18HQJLQHV7KH/18HQJLQHEHJDQ
UDPSLQJXSLQZLWKWRWDOFDSDFLW\IRUHQJLQHVSHU\HDU+\XQGDLLVLQYHVWLJDWLQJYROXPHDVKLJKDVXQLWVSHU\HDUIRUWKHPLGWHUPDQGZHIHHO
+\XQGDLZLOODGGDGGLWLRQDOSURGXFWLRQYROXPHE\
3ODWIRUP6QDSVKRW
7RS9HKLFOH +\XQGDL+\XQGDL6RQDWD'1
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >3&@
9ROXPH
+\XQGDL
+\XQGDL.LD6RUHQWR04
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
>3&@
+\XQGDL+\XQGDL(ODQWUD$'
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
>3&@
+\XQGDL+\XQGDL(ODQWUD$'
0D[3RZHUKS 0D[7RUTXH1P
>3&@
+\XQGDL.LD)RUWH%'>
0D[3RZHUN: 9DOYHV&\OLQGHU
3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV +RSH+XOO$/
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP 0RQWHUUH\
)XHO6\VWHP ',0), &RQILJXUDWLRQ /
)XHO7\SH *$6 7RWDO9DOYHV
$VSLUDWLRQ 1$7&,
/D\RXW ))7
$QQXDOL]HG
9ROXPH
*18*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
+\XQGDL+\XQGDL(ODQWUD$'
>3&@
+\XQGDL+\XQGDL6DQWD
+\XQGDL
)H70>3&@
+\XQGDL+\XQGDL6RQDWD'1
>3&@
+\XQGDL+\XQGDL6RQDWD'1
>3&@
+\XQGDL+\XQGDL7XFVRQ1;
>3&@
+\XQGDL.LD)RUWH%'>
3&@
+\XQGDL.LD)RUWH%'>
3&@
+\XQGDL.LD2SWLPD'/>
3&@
+\XQGDL.LD6RUHQWR04>
3&@
/9'2+&/
+\XQGDL+\XQGDL(ODQWUD$'
>3&@
+\XQGDL+\XQGDL(ODQWUD$'
>3&@
+\XQGDL+\XQGDL6DQWD
&UX]71>/&9@
+\XQGDL+\XQGDL6DQWD
)H70>3&@
+\XQGDL+\XQGDL6DQWD
)H70>3&@
+\XQGDL+\XQGDL6RQDWD'1
>3&@
+\XQGDL+\XQGDL6RQDWD'1
>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
+\XQGDL+\XQGDL7XFVRQ1;
>3&@
+\XQGDL.LD)RUWH%'>
3&@
+\XQGDL.LD)RUWH%'>
3&@
+\XQGDL.LD2SWLPD'/>
3&@
+\XQGDL.LD6RUHQWR04>
3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
+RSH+XOO$/8QLWHG6WDWHV
+\XQGDL
/9'2+&/
0RQWHUUH\0H[LFR+\XQGDL
+\XQGDL
/9'2+&/
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
*187RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
+\XQGDL+\XQGDL(ODQWUD$'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
+\XQGDL+\XQGDL6DQWD)H70>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
+\XQGDL+\XQGDL6RQDWD'1>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
+\XQGDL+\XQGDL7XFVRQ1;>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
+\XQGDL.LD)RUWH%'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&/
+\XQGDL+\XQGDL(ODQWUD$'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
+\XQGDL.LD)RUWH%'>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
+\XQGDL
9ROXPHV
$QQXDOL]HG
350
300
/9'2+&/
250
/9'2+&/
Thousands
150
100
50
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
2ULJLQDOO\EDVHGRQWKH+\XQGDL7+(7$HQJLQHSURJUDPWKH:25/'(1*,1(SODWIRUPLVSURGXFHGVHSDUDWHO\E\+\XQGDLDQG&KU\VOHULQ1RUWK$PHULFDDQGE\
0LWVXELVKLLQ-DSDQ
3ODWIRUP6QDSVKRW
7RS9HKLFOH +\XQGDL+\XQGDL6RQDWD/)
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >3&@
9ROXPH
+\XQGDL
+\XQGDL+\XQGDL6DQWD
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
)H70>3&@
+\XQGDL+\XQGDL6DQWD)H
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
6SRUW$1>3&@
+\XQGDL.LD6RUHQWR80>
0D[3RZHUKS 0D[7RUTXH1P
3&@
+\XQGDL+\XQGDL6DQWD
0D[3RZHUN: 9DOYHV&\OLQGHU
)H70>3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV +RSH+XOO$/
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP ',0), &RQILJXUDWLRQ /
)XHO7\SH *$6*$6&1* 7RWDO9DOYHV
$VSLUDWLRQ 1$7&7&,
/D\RXW ))7
$QQXDOL]HG
9ROXPH
:25/'
(1*,1(/
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
+\XQGDL
+\XQGDL+\XQGDL6DQWD)H
6SRUW$1>3&@
+\XQGDL+\XQGDL6DQWD
)H70>3&@
+\XQGDL+\XQGDL6DQWD
)H70>3&@
+\XQGDL+\XQGDL6RQDWD/)
>3&@
/9'2+&/
+\XQGDL+\XQGDL6DQWD)H
6SRUW$1>3&@
+\XQGDL+\XQGDL6DQWD
)H70>3&@
+\XQGDL+\XQGDL6DQWD
)H70>3&@
+\XQGDL+\XQGDL6RQDWD/)
>3&@
+\XQGDL.LD6RUHQWR80>
3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
+RSH+XOO$/8QLWHG6WDWHV
+\XQGDL
/9'2+&/
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
:25/'(1*,1(/7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
+\XQGDL+\XQGDL6DQWD)H6SRUW$1>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
+\XQGDL+\XQGDL6DQWD)H70>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
+\XQGDL
/9'2+&/
+\XQGDL+\XQGDL6DQWD)H6SRUW$1>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
+\XQGDL+\XQGDL6DQWD)H70>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
+\XQGDL+\XQGDL6RQDWD/)>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
+\XQGDL.LD6RUHQWR80>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
9ROXPHV
$QQXDOL]HG
2,000
'HFKHUG718QLWHG6WDWHV
Thousands
6P\UQD718QLWHG6WDWHV
1,000 5HQDXOW1LVVDQ7RWDO
500
0
2017
2018
2019
2020
2021
2022
2023
2024
5HJLRQDO6WUDWHJLF+LJKOLJKWV Top Five North America Platforms
Engine Production
1LVVDQLVIRFXVHGRQDGGLQJVHYHUDOWHFKQRORJLHVWRLWVHQJLQHOLQHXSLQWKHQH[W 0.8
HQJLQH GHVLJQ F\FOH WR PHHW IXWXUH FRUSRUDWH DYHUDJH IXHO HFRQRP\ &$)(
UHTXLUHPHQWV 7KH PDLQ WHFKQRORJLHV LQFOXGH GLUHFW LQMHFWLRQ ', DQG
WXUERFKDUJLQJ
Production in Millions
0.6
1LVVDQZLOOXSJUDGHWKHFXUUHQW45/HQJLQHE\DGGLQJ',LQODWH1LVVDQ
KDV DOVR DGGHG D VXSHUFKDUJHU WR WKH / HQJLQH DV SDUW RI LWV QHZ K\EULG M1G (MR)
V\VWHP 0.4 S2G (HR)
VQ
S1G
,QWHUPVRI9HQJLQHVWKH94VHULHVLVVFKHGXOHGWREHXSJUDGHGDOWKRXJKDQ QR
XSJUDGHWRLQFOXGH',PD\QRWRFFXUXQWLODIWHU 0.2
1LVVDQ KDV EHHQ EDFN DQG IRUWK DERXW SURGXFLQJ 9 HQJLQHV DW RQO\ RQH SODQW
:KHWKHUWKDWSODQWLVLQ'HFKHUG7HQQHVVHH8QLWHG6WDWHVRU<RNRKDPD-DSDQ 0
2017
2018
2019
2020
2021
2022
2023
2024
LVVWLOOXQGHWHUPLQHG
7KH1LVVDQ/HDIZLOORIIHUWZRGLIIHUHQWEDWWHU\RSWLRQIRUFRQVXPHUVDNLORZDWW
N:YHUVLRQWKDWLVH[SHFWHGWRJHWDSSUR[LPDWHO\PLOHVRIUDQJHDQGDN:
YHUVLRQLVH[SHFWHGDVDSRVVLEOHSHUIRUPDQFHHGLWLRQE\7KLVSUHVHQWVDQ
RSSRUWXQLW\ WR VHOO WKH PRGHO DW D ORZHU HQWU\ SULFH DQG FRXOG DWWUDFW PRUH
FRQVXPHUVHVSHFLDOO\WKRVHZKROLYHLQVWDWHVWKDWRIIHUVLJQLILFDQWLQFHQWLYHVRQ
WRSRIWKHIHGHUDOWD[FUHGLWRI86'1LVVDQ
VN:YHUVLRQOLNHRWKHU2(0V
5HQDXOW1LVVDQ
LVH[SHFWHGWRSWKHPLOHUDQJH-RLQLQJWKHEDWWHU\XSJUDGHVWKH/HDIZLOODOVR
UHFHLYHPDMRUH[WHULRUDQGLQWHULRUFKDQJHVDVZHOO
$QQXDOL]HG
9ROXPH
5HQDXOW1LVVD
Q*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
*OREDO(QJLQH&DSDFLW\$QDO\VLV
9ROXPHV
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
5HQDXOW1LVVDQ
Aguascalientes, MEX
Decherd, TN, USA
Smyrna, TN, USA
0IU5HQDXOW1LVVDQ
$JXDVFDOLHQWHV
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
*$4* _ _ _ _ _ _ _ _
0*05 _ _ _ _ _ _ _ _
6* _ _ _ _ _ _ _ _
6*+5 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU5HQDXOW1LVVDQ
'HFKHUG71
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
45 _ _ _ _ _ _ _ _
9. _ _ _ _ _ _ _ _
94 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU5HQDXOW1LVVDQ
6P\UQD71
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
(/(&75,& _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
5HQDXOW1LVVDQ
80%
Market Share
60% Renault/Nissan Gas
North America Gas
North America Diesel
40% Renault/Nissan Diesel
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
3RZHU'HQVLW\ OEM vs Regional
Power Density
1LVVDQVLWVULJKWRQWRSRIWKHUHJLRQDODYHUDJHSRZHUGHQVLW\FXUYH 80.0
7KLVWUHQGLVVXVWDLQHGDVPDUNHWSHQHWUDWLRQRIWKHQDWXUDOO\DVSLUDWHGKLJK
SRZHUGHQVLW\949UHPDLQVKLJKDQG1LVVDQPRYHVWRDGGWXUERFKDUJHG
Weighted Average
F\OLQGHUHQJLQHVWRLWVSRUWIROLRLQWKHPLGWHUPDVSDUWRIDEURDGHUGRZQVL]LQJ
VWUDWHJ\
40.0
North America
Renault/Nissan
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
'LVSODFHPHQW OEM vs Regional
Displacement
'LVSODFHPHQWDW1LVVDQZLOOUHPDLQUHODWLYHO\VWDEOHVLQFHLWVSDVVHQJHUFDU 3.5
YROXPHLVPXFKKLJKHUWKHQLWVIXOOVL]HWUXFNDQG689VHJPHQWV
5HQDXOW1LVVDQ
3.0
Weighted Avearage
2.5
Displacement
2.0
North America
1.5
Renault/Nissan
1.0
0.5
0.0
2017
2018
2019
2020
2021
2022
2023
2024
Renault/Nissan Alum
60.0%
North America Alum
North America Iron
North America CGI
40.0% North America Alum/Magnesium
Renault/Nissan Alum/Magnesium
Renault/Nissan CGI
Renault/Nissan Iron
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
40.0
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
&\OLQGHUV OEM vs Regional
Cylinders
1LVVDQLVPXFKORZHUWKDQWKHUHJLRQDODYHUDJHIRUHQJLQHF\OLQGHUFRXQWV 6.0
7KLVWUHQGKLJKOLJKWV1LVVDQ
VIRFXVRQFDUVDQGWKHIDFWWKDWWKH\DUHPRYLQJ
DZD\IURPWUXFNVDQG689VDQGIRFXVLQJRQFDUV7KH\ZLOOVWLOOKDYHDSUHVHQFH
Number of Cylinders
Weighted Average
LQWKHSLFNXSWUXFNPDUNHWZLWKWKH7LWDQDQGWKHLQWURGXFWLRQRIQHZOLJKW
4.0
FRPPHUFLDOYDQVEXWWKHFRPSDQ\
VPDLQIRFXVZLOOEHFDUVDQGFURVVRYHUV
North America
Renault/Nissan
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
$VSLUDWLRQ OEM vs Regional
Aspiration
5HQDXOW1LVVDQ
1LVVDQLVLQWURGXFLQJPXOWLSOHQHZF\OLQGHUWXUERFKDUJHGHQJLQHVWRKHOSPHHW 100.0%
&$)(UHTXLUHPHQWV
80.0%
Market Share
60.0%
North America Turbo
North America Natural
Renault/Nissan Turbo
40.0% Renault/Nissan Natural
Renault/Nissan Super
North America Super
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
Market Share
8QLWHG6WDWHV3URGXFWLRQUHPDLQVIRUQRQ86PDUNHWV7KHPRGHOLPSURYHGIXHO
6.0%
HFRQRP\E\RQO\PLOHVSHUJDOORQPSJEXWFRVWVDSSUR[LPDWHO\86'
North America Hybrid-Full
PRUHWKDQWKHVWDQGDUG3DWKILQGHU7KHFRPSDQ\KDVVWDWHGWKDWLWUHPDLQVYHU\ North America Hybrid-Mild
LQWHUHVWHGLQK\EULGWHFKQRORJ\EXWLWGLGQRWPDNHDORWRIVHQVHLQWKLVSDUWLFXODU 4.0% Renault/Nissan Hybrid-Full
PRGHO7KHPRGHOLVVWLOOEHSURGXFHGLQORZYROXPHIRUH[SRUWPDUNHWVDW Renault/Nissan Hybrid-Mild
DSSUR[LPDWHO\XQLWVSHU\HDU
2.0%
,QWKHIXWXUHH[SHFW1LVVDQWRIHDWXUHDODUJHUHOHFWULFPRWRULQRUGHUWRSURYLGHDQ
HOHFWULFRQO\GULYHPRGHDQGLPSURYHIXHOHFRQRP\ 0.0%
2017
2018
2019
2020
2021
2022
2023
2024
'LUHFW,QMHFWLRQ OEM vs Regional
Direct Injection
$VZLWKRWKHUHQJLQHPDQXIDFWXUHUVLQWKLVUHJLRQ1LVVDQLVH[SHFWHGWRXWLOL]H 100%
LQFUHDVHGYROXPHRIWXUERFKDUJHGDQG',JDVROLQHHQJLQHVLQWKHIXWXUHWR
RSWLPL]HSRZHUDQGIXHOHFRQRP\7KH06DQGWKH94VHULHV9VZLOOSLFNXS
',EHJLQQLQJLQIRUWKH06DQGOLNHO\IRUWKH94 80%
Market Share
60%
North America
40% Renault/Nissan
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
9DULDEOH9DOYH7LPLQJ OEM vs Regional
Variable Valve Timing
997ZLOOEHFRPHVWDQGDUGHTXLSPHQWRQ1LVVDQ
VJDVROLQHHQJLQHV 100%
5HQDXOW1LVVDQ
80%
Market Share
60%
Renault/Nissan
40% North America
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
5HQDXOW1LVVDQ
9. /9'2+&
9
9
9ROXPHV
$QQXDOL]HG
50
40
/91RQH1RQH
3ODWIRUP
Thousands
30
20
10
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KHXSFRPLQJ1LVVDQ/HDILVH[SHFWHGWRRIIHUWZRGLIIHUHQWEDWWHU\RSWLRQVIRUFRQVXPHUVSRVVLEO\DNLORZDWWN:DQGDN:YHUVLRQ7KLVSUHVHQWVDQRSSRUWXQLW\
WRVHOOWKHPRGHODWDORZHUHQWU\SULFHSRLQWDQGFRXOGDWWUDFWPRUHFRQVXPHUVHVSHFLDOO\WKRVHZKROLYHLQVWDWHVWKDWRIIHUVLJQLILFDQWLQFHQWLYHVRQWRSRIWKHIHGHUDOWD[
FUHGLWRI86'1LVVDQOLNHRWKHU2(0VKRSHVWRKDYHDPLOHEDWWHU\UDQJH/HDILQWKHQHDUIXWXUH
3ODWIRUP6QDSVKRW
7RS9HKLFOH 5HQDXOW1LVVDQ1LVVDQ/HDI
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ %3>3&@
9ROXPH
5HQDXOW1LVVDQ1LVVDQ'
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
&89(93(>3&@
5HQDXOW1LVVDQ,QILQLWL(9/
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
->3&@
5HQDXOW1LVVDQ1LVVDQ/HDI
0D[3RZHUKS 0D[7RUTXH1P
%*>3&@
5HQDXOW1LVVDQ1LVVDQ/HDI
0D[3RZHUN: 9DOYHV&\OLQGHU
%3>3&@
9DOYHWUDLQ 1RQH %ORFN0DWHULDO 1RQH 3ODQWV 6P\UQD71
5HQDXOW1LVVDQ
$QQXDOL]HG
9ROXPH
(/(&75,&
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/91RQH1RQH
5HQDXOW1LVVDQ,QILQLWL(9/
->3&@
5HQDXOW1LVVDQ1LVVDQ'&89
(93(>3&@
5HQDXOW1LVVDQ1LVVDQ/HDI%
5HQDXOW1LVVDQ
*>3&@
5HQDXOW1LVVDQ1LVVDQ/HDI%
3>3&@
5HQDXOW1LVVDQ1LVVDQ/HDI%
3>3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
6P\UQD718QLWHG6WDWHV
5HQDXOW1LVVDQ
/91RQH1RQH
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/91RQH1RQH
(/(&75,&7RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/91RQH1RQH
5HQDXOW1LVVDQ,QILQLWL(9/->3&@ $GG (QJLQH$SSOLFDWLRQ
5HQDXOW1LVVDQ,QILQLWL(9/->3&@ $GG 9HKLFOH/LIHF\FOH
5HQDXOW1LVVDQ,QILQLWL(9/->3&@ 'URS (QJLQH$SSOLFDWLRQ
5HQDXOW1LVVDQ,QILQLWL(9/->3&@ 'URS 9HKLFOH/LIHF\FOH
5HQDXOW1LVVDQ1LVVDQ'&89(93(>3&@ $GG (QJLQH$SSOLFDWLRQ
5HQDXOW1LVVDQ1LVVDQ'&89(93(>3&@ $GG 9HKLFOH/LIHF\FOH
5HQDXOW1LVVDQ1LVVDQ/HDI%3>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
5HQDXOW1LVVDQ1LVVDQ/HDI%3>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
5HQDXOW1LVVDQ
9ROXPHV
$QQXDOL]HG
25
20
/9'2+&/
3ODWIRUP
Thousands
15
10
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH*$4*HQJLQHSODWIRUPUHPDLQVLQSURGXFWLRQIRUWKH0H[LFDQPDUNHW1LVVDQ7VXUX>*6@XQWLORU
$WWKDWWLPHWKH/*$4*ZLOOHQGSURGXFWLRQDQGOLNHO\EHUHSODFHGE\D/YDULDQWIURPWKH1LVVDQ0*HQJLQHSODWIRUP
3ODWIRUP6QDSVKRW
7RS9HKLFOH 5HQDXOW1LVVDQ1LVVDQ7VXUX
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ *6>3&@
9ROXPH
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
0D[3RZHUKS 0D[7RUTXH1P
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+& %ORFN0DWHULDO ,URQ 3ODQWV $JXDVFDOLHQWHV
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP 0), &RQILJXUDWLRQ /
)XHO7\SH *$6 7RWDO9DOYHV
5HQDXOW1LVVDQ
$VSLUDWLRQ 1$
/D\RXW ))7
$QQXDOL]HG
9ROXPH
*$4**OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
5HQDXOW1LVVDQ1LVVDQ7VXUX
*6>3&@
3URGXFWLRQE\3ODQW
5HQDXOW1LVVDQ
9ROXPHV
$QQXDOL]HG
9ROXPH
$JXDVFDOLHQWHV0H[LFR
5HQDXOW1LVVDQ
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
*$4*7RWDO
3ODWIRUP6QDSVKRW
7RS9HKLFOH 5HQDXOW1LVVDQ1LVVDQ)URQWL
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ HU'>/&9@
9ROXPH
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
0D[3RZHUKS 0D[7RUTXH1P
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+&62+& %ORFN0DWHULDO ,URQ 3ODQWV $JXDVFDOLHQWHV
9DULDEOH9DOYH7LPLQJ 1R +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP 0), &RQILJXUDWLRQ /
)XHO7\SH *$6 7RWDO9DOYHV
$VSLUDWLRQ 1$
/D\RXW ))7)5/
5HQDXOW1LVVDQ
$QQXDOL]HG
9ROXPH
.$*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
5HQDXOW1LVVDQ1LVVDQ)URQWLH
U'>/&9@
3URGXFWLRQE\3ODQW
5HQDXOW1LVVDQ
9ROXPHV
$QQXDOL]HG
9ROXPH
$JXDVFDOLHQWHV0H[LFR
5HQDXOW1LVVDQ
/9'2+&/
)RUHFDVW9DULDQFH
9ROXPHV
$QQXDOL]HG
800
/9'2+&/
Thousands
/9'2+&/
400 3ODWIRUP
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH0*05HQJLQHSODWIRUPFRQVLVWVRI/HQJLQHVUDQJLQJIURP/WR/
&XUUHQWSURJUDPVFRGHVDUH.+ZKLFKLVDQDWXUDOO\DVSLUDWHG/HQJLQH.+7LVDWXUERFKDUJHG/.+LVDQDWXUDOO\DVSLUDWHG/
3ODWIRUP6QDSVKRW
7RS9HKLFOH 5HQDXOW1LVVDQ1LVVDQ6HQWU
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ D/)>3&@
9ROXPH
5HQDXOW1LVVDQ1LVVDQ5RJX
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
H3$>3&@
5HQDXOW1LVVDQ1LVVDQ0XUD
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
QR30>3&@
5HQDXOW1LVVDQ1LVVDQ$OWLP
0D[3RZHUKS 0D[7RUTXH1P
D/3>3&@
5HQDXOW1LVVDQ,QILQLWL4;
0D[3RZHUN: 9DOYHV&\OLQGHU
34>3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV $JXDVFDOLHQWHV
5HQDXOW1LVVDQ
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP ',0), &RQILJXUDWLRQ /
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$7&,
/D\RXW ))7)5/
$QQXDOL]HG
9ROXPH
0*05
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
5HQDXOW1LVVDQ1LVVDQ$OWLPD
/3>3&@
5HQDXOW1LVVDQ1LVVDQ5RJXH
3$>3&@
/9'2+&/
5HQDXOW1LVVDQ
5HQDXOW1LVVDQ1LVVDQ6HQWUD
/)>3&@
5HQDXOW1LVVDQ1LVVDQ9HUVD
7LLGD%&>3&@
/9'2+&/
5HQDXOW1LVVDQ&KHYUROHW&LW\
([SUHVV;0>/&9@
5HQDXOW1LVVDQ&KHYUROHW&LW\
([SUHVV;0>/&9@
5HQDXOW1LVVDQ,QILQLWL4;3
4>3&@
5HQDXOW1LVVDQ1LVVDQ$OWLPD
/3>3&@
5HQDXOW1LVVDQ1LVVDQ$OWLPD
/3>3&@
5HQDXOW1LVVDQ1LVVDQ)URQWLH
U+;>/&9@
5HQDXOW1LVVDQ1LVVDQ0XUDQ
R30>3&@
5HQDXOW1LVVDQ1LVVDQ19
;0>/&9@
5HQDXOW1LVVDQ1LVVDQ19
;0>/&9@
5HQDXOW1LVVDQ1LVVDQ5RJXH
35>3&@
5HQDXOW1LVVDQ1LVVDQ5RJXH
3$>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
5HQDXOW1LVVDQ1LVVDQ6HQWUD
/)>3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
$JXDVFDOLHQWHV0H[LFR
5HQDXOW1LVVDQ
/9'2+&/
/9'2+&/
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
5HQDXOW1LVVDQ
/9'2+&/
/9'2+&/
0*057RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
5HQDXOW1LVVDQ1LVVDQ5RJXH3$>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&/
5HQDXOW1LVVDQ,QILQLWL4;34>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
5HQDXOW1LVVDQ1LVVDQ$OWLPD/3>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
5HQDXOW1LVVDQ1LVVDQ0XUDQR30>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
5HQDXOW1LVVDQ1LVVDQ19;0>/&9@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
5HQDXOW1LVVDQ1LVVDQ5RJXH3$>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
9ROXPHV
$QQXDOL]HG
600
/9'2+&/
400 /9'2+&/
Thousands
3ODWIRUP
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KHYDVWPDMRULW\RI45HQJLQHVSURGXFHGLQ1RUWK$PHULFDDUHVHWWREHLQVWDOOHGLQWKH1LVVDQ$OWLPD7KLVHQJLQHZLOODGGGLUHFWLQMHFWLRQLQODWHXVLQJWKHFRGH
75.
1LVVDQXSJUDGHGWKHSODWIRUPZLWKYDULDEOHYDOYHWLPLQJDQGPDWHVLWZLWKD-DWFRFRQWLQXRXVO\YDULDEOHWUDQVPLVVLRQWRPD[LPL]HIXHOHFRQRP\DQGSHUIRUPDQFH
1LVVDQ
V/YDULDQWLVDOVRXVHGIRUWKHFRPSDQ\
V))K\EULGWHFKQRORJ\7KHV\VWHPLVPDWHGZLWKD/F\OLQGHUHQJLQHWKDWLVWRSSHGZLWKD5RRWVW\SH
VXSHUFKDUJHU7RWDOKRUVHSRZHULVZLWKWKHK\EULGHOHFWULFYHKLFOHV\VWHPDQGOEIWRIWRUTXH7KHVXSHUFKDUJHUK\EULGFRPELQDWLRQLVDGHSDUWXUHIURPWKH
FRQYHQWLRQDOK\EULGFRPELQDWLRQVWUDWHJLHVHPSOR\HGE\RWKHUDXWRPDNHUV+RZHYHUWKHVXSHUFKDUJHUGHOLYHUVPRUHORZHQGWRUTXHOHDYLQJWKHH[WUDEDWWHU\FDSDFLW\
IRURWKHUSRUWLRQVRIWKHGULYHF\FOH
3ODWIRUP6QDSVKRW
7RS9HKLFOH 5HQDXOW1LVVDQ1LVVDQ$OWLP
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ D/3>3&@
9ROXPH
5HQDXOW1LVVDQ1LVVDQ)URQWL
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
HU+$>/&9@
5HQDXOW1LVVDQ1LVVDQ$OWLP
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
D//>3&@
5HQDXOW1LVVDQ
5HQDXOW1LVVDQ1LVVDQ5RJX
0D[3RZHUKS 0D[7RUTXH1P
H35>3&@
5HQDXOW1LVVDQ1LVVDQ;WHUU
0D[3RZHUN: 9DOYHV&\OLQGHU
D3$>3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV 'HFKHUG71
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP ',0), &RQILJXUDWLRQ /
)XHO7\SH *$6 7RWDO9DOYHV
$VSLUDWLRQ 1$6&,
/D\RXW ))7)5/
$QQXDOL]HG
9ROXPH
45*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
5HQDXOW1LVVDQ1LVVDQ+DUGE
RG\+$>/&9@
/9'2+&/
5HQDXOW1LVVDQ,QILQLWL-;4;
3->3&@
5HQDXOW1LVVDQ,QILQLWL4;3
5HQDXOW1LVVDQ
4>3&@
5HQDXOW1LVVDQ1LVVDQ$OWLPD
//>3&@
5HQDXOW1LVVDQ1LVVDQ$OWLPD
/3>3&@
5HQDXOW1LVVDQ1LVVDQ)URQWLH
U+$>/&9@
5HQDXOW1LVVDQ1LVVDQ)URQWLH
U+%>/&9@
5HQDXOW1LVVDQ1LVVDQ0D[LP
D/1>3&@
5HQDXOW1LVVDQ1LVVDQ0XUDQ
R30>3&@
5HQDXOW1LVVDQ1LVVDQ0XUDQ
R30>3&@
5HQDXOW1LVVDQ1LVVDQ3DWKILQ
GHU3.>3&@
5HQDXOW1LVVDQ1LVVDQ3DWKILQ
GHU35>3&@
5HQDXOW1LVVDQ1LVVDQ5RJXH
35>3&@
5HQDXOW1LVVDQ1LVVDQ;WHUUD
3$>3&@
5HQDXOW1LVVDQ5HQDXOW$ODVN
DQ+;>/&9@
5HQDXOW1LVVDQ5HQDXOW$ODVN
DQ8$>/&9@
9ROXPHV
$QQXDOL]HG
9ROXPH
'HFKHUG718QLWHG6WDWHV
5HQDXOW1LVVDQ
/9'2+&/
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
457RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
5HQDXOW1LVVDQ,QILQLWL-;4;3->3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
5HQDXOW1LVVDQ,QILQLWL4;34>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
5HQDXOW1LVVDQ1LVVDQ$OWLPD/3>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
5HQDXOW1LVVDQ1LVVDQ)URQWLHU+$>/&9@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
5HQDXOW1LVVDQ
9ROXPHV
$QQXDOL]HG
500
400
/9'2+&/
/9'2+&/
Thousands
200
100
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
5HQDXOW1LVVDQ
V6*+5HQJLQHLVVPDOOHUWKDQWKH0*05SODWIRUPHQJLQH6*+5HQJLQHVUDQJHIURP/WR/DQGDUHSURGXFHGDWWKH$JXDVFDOLHQWHV
SODQWLQ0H[LFR
3ODWIRUP6QDSVKRW
7RS9HKLFOH 5HQDXOW1LVVDQ1LVVDQ9HUVD
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ /'>3&@
9ROXPH
5HQDXOW1LVVDQ1LVVDQ6HQWU
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
D/%>3&@
5HQDXOW1LVVDQ1LVVDQ9HUVD
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
/%>3&@
5HQDXOW1LVVDQ1LVVDQ.LFNV
0D[3RZHUKS 0D[7RUTXH1P
3)>3&@
5HQDXOW1LVVDQ1LVVDQ0LFUD
0D[3RZHUN: 9DOYHV&\OLQGHU
%$>3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV $JXDVFDOLHQWHV
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP
5HQDXOW1LVVDQ
)XHO6\VWHP ',0), &RQILJXUDWLRQ //
)XHO7\SH *$6*$6( 7RWDO9DOYHV
$VSLUDWLRQ 1$6&,
/D\RXW ))7
$QQXDOL]HG
9ROXPH
6*+5
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
5HQDXOW1LVVDQ1LVVDQ.LFNV
3)>3&@
/9'2+&/
5HQDXOW1LVVDQ1LVVDQ.LFNV
5HQDXOW1LVVDQ
3)>3&@
5HQDXOW1LVVDQ1LVVDQ0LFUD
%$>3&@
5HQDXOW1LVVDQ1LVVDQ1RWH-
&>3&@
5HQDXOW1LVVDQ1LVVDQ6HQWUD
/%>3&@
5HQDXOW1LVVDQ1LVVDQ9HUVD
/%>3&@
5HQDXOW1LVVDQ1LVVDQ9HUVD
/'>3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
$JXDVFDOLHQWHV0H[LFR
5HQDXOW1LVVDQ
/9'2+&/
/9'2+&/
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
6*+57RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&/
5HQDXOW1LVVDQ1LVVDQ6HQWUD/%>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
5HQDXOW1LVVDQ1LVVDQ9HUVD/'>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
5HQDXOW1LVVDQ
9ROXPHV
$QQXDOL]HG
80
60 /9'2+&9
3ODWIRUP
Thousands
40
20
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
1LVVDQDQQRXQFHGWKDWLWPD\EHJLQH[SRUWLQJ9HQJLQHVIURP1RUWK$PHULFDWR-DSDQIRUWKH,QILQLWL4;YHKLFOH7KDWPHDQV1LVVDQZRXOGKDYHWZRSODQWVUXQQLQJDW
UHODWLYHO\ORZYROXPHSURGXFLQJWKH9+HQJLQHV,+6IXOO\H[SHFWV1LVVDQWRFRQVROLGDWHDQGXVHRQO\RQHSODQWKRZHYHUDWWKLVWLPHZKLFKSODQWZLOOZLQLVXQNQRZQ
7KHSODQWLQ<RNRKDPD-DSDQSURGXFHVDGLUHFWLQMHFWLRQYHUVLRQRIWKH/9IRU,QILQLWLYHKLFOHV$WWKLVWLPHZHH[SHFWWKH'HFKHUG71SODQWWREHJLQSURGXFLQJWKDW
HQJLQHLQWRDOLJQZLWKWKHODXQFKRIWKHQH[WJHQHUDWLRQ7LWDQSLFNXSWUXFN
3ODWIRUP6QDSVKRW
7RS9HKLFOH 5HQDXOW1LVVDQ1LVVDQ7LWDQ
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ +/>/&9@
9ROXPH
5HQDXOW1LVVDQ1LVVDQ19
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
6HULHV;)>/&9@
5HQDXOW1LVVDQ1LVVDQ7LWDQ
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
+/>/&9@
5HQDXOW1LVVDQ1LVVDQ19
0D[3RZHUKS 0D[7RUTXH1P
6HULHV;)>/&9@
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV 'HFKHUG71
5HQDXOW1LVVDQ
$QQXDOL]HG
9ROXPH
9.*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
5HQDXOW1LVVDQ1LVVDQ19
6HULHV;)>/&9@
5HQDXOW1LVVDQ1LVVDQ19
6HULHV;)>/&9@
5HQDXOW1LVVDQ1LVVDQ7LWDQ+
/>/&9@
5HQDXOW1LVVDQ
5HQDXOW1LVVDQ1LVVDQ7LWDQ+
/>/&9@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
'HFKHUG718QLWHG6WDWHV
5HQDXOW1LVVDQ
/9'2+&9
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
9.7RWDO
9ROXPHV
$QQXDOL]HG
2,500
2,000
%XIIDOR:98QLWHG6WDWHV
*HRUJHWRZQ.<8QLWHG6WDWHV
Thousands
7R\RWD7RWDO
1,000
500
0
2017
2018
2019
2020
2021
2022
2023
2024
5HJLRQDO6WUDWHJLF+LJKOLJKWV Top Five North America Platforms
Engine Production
,Q 1RUWK $PHULFD 7R\RWD KDV EHHQ YHU\ ORZNH\ UHJDUGLQJ HQJLQH WHFKQRORJ\ 1.4
GHSOR\PHQW EXW WKHUH DUH VRPH HQJLQH XSJUDGHV LQ WKH ZRUNV 7R\RWD
V SULPDU\
IRFXV LV FOHDUO\ HOHFWULILFDWLRQ DQG IXHOFHOO GHYHORSPHQW EXW GHYHORSPHQW DQG 1.2
SURGXFWLRQRIPXFKRILWVK\EULGWHFKQRORJ\ZLOOVWLOORFFXULQ-DSDQDWOHDVWLQWKH
Production in Millions
QHDUWHUP&KLQDZLOOOLNHO\EHFRPHWKHQHZKXEIRUSURGXFWLRQDVZHOOLQRUGHUWR 1
PHHW 1HZ (QHUJ\ 9HKLFOH 1(9 PDQGDWHV 7R\RWD KDV VWDWHG WKDW LW ZLOO EHJLQ
PDVVSURGXWLRQRI(9VLQ&KLQDE\9ROXPHLVGHSHQGHQWRQUHJXODWLRQVDQG 0.8
A-Series
DYDLODEOHVXEVLGHVIRUFRQVXPHUV GR
0.6 AR
UR
7R\RWD LV ZRUNLQJ RQ XSJUDGHV WR LWV $5 15 DQG =5 HQJLQH SODWIRUPV DOO RI ZR
ZKLFK IDOO XQGHU 7R\RWD
V 1HZ *OREDO $UFKLWHFWXUH 71*$ 7KHUH DSSHDU WR EH 0.4
K\EULGDQGWXUERFKDUJHGYHUVLRQVIRUHDFKSODWIRUP
0.2
7R\RWDDGGHGGLUHFWLQMHFWLRQWRWKH/9LQFKDQJLQJWKHSURJUDPFRGH 0
IURP*5WR*5$OWKRXJKLWORRNHGOLNH7R\RWDZRXOGDOVRDGGLWWRWKH/9
2017
2018
2019
2020
2021
2022
2023
2024
ZHKDYHKHDUGWKHFRPSDQ\KDVFDQFHOHGWKRVHSODQV
7R\RWD
V IXHOFHOO 0LUDL FDPH WR 86 VKRUHV LQ 7KH 0LUDL LV VDLG WR KDYH
XQGHUJRQH H[WHQVLYH VDIHW\ WHVWLQJ DQG IHDWXUHV WZR K\GURJHQ WDQNV RQH LQ WKH
UHDUVHDWDQGWKHRWKHULQWKHFDUJRDUHD,QDFROOLVLRQVHQVRUVVWRSWKHIORZRI
K\GURJHQ DQG WKH WDQNV DUH GHVLJQHG QRW WR OHDN 7KH YHKLFOH TXDOLILHV DV D
&DOLIRUQLD]HURHPLVVLRQVYHKLFOH=(9VRHDFKPRGHOVROGDVVLVWVWKHFRPSDQ\
LQ PHHWLQJ LWV =(9 PDQGDWH FUHGLW JRDO 7KH IXHOFHOO VWDFN SURGXFHV
KRUVHSRZHU DQG IRRWSRXQGV RI WRUTXH GHOLYHULQJ PLOHV RI UDQJH 7KH
UDQJHDQGWKHUHIXHOLQJWLPHRIDSSUR[LPDWHO\ILYHPLQXWHVPDNHVRZQHUVKLSRIWKH
0LUDLPRUHVLPLODUWRWKHLQWHUQDOFRPEXVWLRQHQJLQH,&(&RUROOD7KH0LUDLKDV
EHHQMRLQHGE\WKH+RQGD&ODULW\IXHOFHOOYHKLFOH)&9DQGWKH+\XQGDL7XFVRQ
)&9JLYLQJ&DOLIRUQLDUHVLGHQWVLQWKH/RV$QJHOHVDUHDDWUHPHQGRXVRSSRUWXQLW\
7R\RWD
WRWHVWZKHWKHUWKHWHFKQRORJ\LVUHDG\WRVSUHDGQDWLRQZLGHDQGYDOXDEOHGDWDWR
GHWHUPLQHLQIUDVWUXFWXUHQHHGV
$QQXDOL]HG
9ROXPH
7R\RWD*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
*OREDO(QJLQH&DSDFLW\$QDO\VLV
9ROXPHV
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
7R\RWD
Buffalo, WV, USA
Georgetown, KY, USA
Huntsville, AL, USA
0IU7R\RWD
%XIIDOR:9
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
$6HULHV _ _ _ _ _ _ _ _
*5 _ _ _ _ _ _ _ _
1HZ15 _ _ _ _ _ _ _ _
15 _ _ _ _ _ _ _ _
=5 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU7R\RWD
*HRUJHWRZQ.<
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
$6HULHV _ _ _ _ _ _ _ _
$5 _ _ _ _ _ _ _ _
*5 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU7R\RWD
+XQWVYLOOH$/
86$ 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
$5 _ _ _ _ _ _ _ _
*5 _ _ _ _ _ _ _ _
85 _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
7R\RWD
100%
80%
Market Share
60% Toyota Gas
North America Gas
North America Diesel
40% Toyota Diesel
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
3RZHU'HQVLW\ OEM vs Regional
Power Density
3RZHUGHQVLW\IROORZVWKHUHJLRQDOJURZWKWUHQG 80.0
,WORRNVOLNH7R\RWDZLOOXWLOL]HWXUERFKDUJLQJVSDULQJO\LQ1RUWK$PHULFDDQGZLOO
LQVWHDGIRFXVRQK\EULGV
Weighted Average
40.0
North America
Toyota
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
'LVSODFHPHQW OEM vs Regional
Displacement
7R\RWDFORVHO\PDWFKHVWKHUHVWRIWKHLQGXVWU\LIQRWDOLWWOHORZHUZLWKDYHUDJH 3.5
HQJLQHVL]H,WZLOOVORZO\WUHQGGRZQZDUGDV7R\RWDEHJLQVWRXWLOL]HGRZQVL]LQJ
DQGWXUERFKDUJLQJVWUDWHJLHVLQWKHORQJHUWHUP7R\RWD
VHQJLQHSRUWIROLRUHPDLQV 3.0
FRQVWDQWDVLWFRQWLQXHVZLWKYDULRXVK\EULGWHFKQRORJLHV
Weighted Avearage
2.5
Displacement
2.0
7R\RWD
North America
1.5
Toyota
1.0
0.5
0.0
2017
2018
2019
2020
2021
2022
2023
2024
80.0%
Market Share
Toyota Alum
North America Alum
60.0% North America Iron
North America CGI
North America Alum/Magnesium
40.0% Toyota Alum/Magnesium
Toyota CGI
Toyota Iron
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
Weighted Average
LQVWHDGIRFXVRQK\EULGV 100.0
80.0
North America
60.0
Toyota
40.0
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
&\OLQGHUV OEM vs Regional
Cylinders
7R\RWD
VSURGXFWPL[SXWVLWMXVWRYHUDKDOIF\OLQGHUVK\RIWKH1RUWK$PHULFDQ 6.0
DYHUDJH7KLVJDSLVHURGLQJDVWKHPDUNHWGRZQVL]HVDQG7R\RWDFRQWLQXHVZLWK
LWVFXUUHQWRIIHULQJV7R\RWDDOUHDG\XVHVDKLJKYROXPHRIDQGF\OLQGHU
HQJLQHVVRXQOHVVLWFKRRVHVWRH[LWWKHWUXFNPDUNHWFRPSOHWHO\WKLVWUHQGLVQ
W
Number of Cylinders
OLNHO\WRFKDQJH
Weighted Average
4.0
North America
Toyota
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
$VSLUDWLRQ OEM vs Regional
Aspiration
7R\RWDKDVEHHQVORZHUWRXWLOL]HWXUERFKDUJHGHQJLQHVWKDQVRPHRILWV 120.0%
FRPSHWLWRUVEXWLWZLOOEHODXQFKLQJWKUHHQHZF\OLQGHUHQJLQHVDURXQG
100.0%
7R\RWD
80.0%
Market Share
Toyota Natural
60.0% North America Turbo
North America Natural
Toyota Turbo
40.0% North America Super
Toyota Super
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
Market Share
7R\RWDKDVDGGHGWKH5$9K\EULGHOHFWULFYHKLFOHWRLWVK\EULGOLQHXS7KHYHKLFOH
LVVLPLODUWRWKH/H[XV1;KXVLQJD/F\OLQGHUHQJLQHDQGHOHFWULFPRWRU 6.0% Toyota Hybrid-Full
North America Hybrid-Full
RQWKHUHDUD[OHWRSURYLGHPRUHDFFHOHUDWLRQZKLOHLPSURYLQJIXHOHFRQRP\ North America Hybrid-Mild
4.0% Toyota Hybrid-Mild
2017
2018
2019
2020
2021
2022
2023
2024
'LUHFW,QMHFWLRQ OEM vs Regional
Direct Injection
7R\RWDVLJQLILFDQWO\ODJVWKHWUHQGIRU',DGRSWLRQ 100%
&XUUHQWO\WKHUHDUHQR7R\RWDHQJLQHVEXLOWLQ1RUWK$PHULFDWKDWHPSOR\',EXW
WKH/9ZLOODGRSWLWLQ 80%
Market Share
60%
Toyota
40% North America
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
9DULDEOH9DOYH7LPLQJ OEM vs Regional
Variable Valve Timing
$OO7R\RWD1RUWK$PHULFDEXLOWHQJLQHVDUHILWWHGZLWK997 120%
7KHQH[WJHQHUDWLRQ997V\VWHPLVH[SHFWHGWREHFRQWLQXRXVO\YDULDEOHIRUERWK 100%
YDOYHOLIWDQGGXUDWLRQ
80%
Market Share
60%
7R\RWD
Toyota
North America
40%
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
9ROXPHV
$QQXDOL]HG
800
/9'2+&9
Thousands
3ODWIRUP
400
200
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
*5LVWKH9JDVROLQHHQJLQHSODWIRUPIRU7R\RWD,WLQFOXGHV/9DQG/9HQJLQHV
3ODWIRUP6QDSVKRW
7RS9HKLFOH 7R\RWD7R\RWD7DFRPD$
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >/&9@
9ROXPH
7R\RWD7R\RWD+LJKODQGHU
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
%>3&@
7R\RWD7R\RWD+LJKODQGHU
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
$>3&@
7R\RWD7R\RWD6LHQQD%
0D[3RZHUKS 0D[7RUTXH1P
>3&@
7R\RWD7R\RWD6LHQQD/
0D[3RZHUN: 9DOYHV&\OLQGHU
>3&@
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV %XIIDOR:9
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP *HRUJHWRZQ.<
)XHO6\VWHP ',0), &RQILJXUDWLRQ 9 +XQWVYLOOH$/
)XHO7\SH *$6 7RWDO9DOYHV
7R\RWD
$VSLUDWLRQ 1$
/D\RXW ))7)5/
$QQXDOL]HG
9ROXPH
*5*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
7R\RWD/H[XV(6%>
3&@
7R\RWD/H[XV5;$>
3&@
7R\RWD/H[XV5;$>
3&@
7R\RWD7R\RWD$YDORQ$
>3&@
7R\RWD7R\RWD$YDORQ%
>3&@
7R\RWD7R\RWD&DPU\%
7R\RWD
>3&@
7R\RWD7R\RWD&DPU\$
>3&@
7R\RWD7R\RWD+LJKODQGHU
$>3&@
7R\RWD7R\RWD+LJKODQGHU
%>3&@
7R\RWD7R\RWD6LHQQD%
>3&@
7R\RWD7R\RWD6LHQQD/
>3&@
7R\RWD7R\RWD7DFRPD$
>/&9@
7R\RWD7R\RWD7DFRPD$
>/&9@
7R\RWD7R\RWD9HQ]D/>
3&@
/9'2+&9
7R\RWD7R\RWD7XQGUD$
>/&9@
9ROXPHV
$QQXDOL]HG
9ROXPH
%XIIDOR:98QLWHG6WDWHV
7R\RWD
/9'2+&9
*HRUJHWRZQ.<8QLWHG
6WDWHV7R\RWD
/9'2+&9
+XQWVYLOOH$/8QLWHG6WDWHV
7R\RWD
/9'2+&9
/9'2+&9
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/9'2+&9
*57RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&9
7R\RWD/H[XV(6%>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
7R\RWD/H[XV5;$>3&@ $GG (QJLQH$SSOLFDWLRQ
7R\RWD
7R\RWD/H[XV5;$>3&@ $GG 9HKLFOH/LIHF\FOH
7R\RWD7R\RWD&DPU\%>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
7R\RWD7R\RWD7DFRPD$>/&9@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
9ROXPHV
$QQXDOL]HG
140
120
/9'2+&/
100
3ODWIRUP
Thousands
80
60
40
20
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
:HDUHMXVWEHJLQQLQJWROHDUQDERXWWKH1HZ15HQJLQHSODWIRUP&XUUHQWO\ZHIRUHFDVWWKDWWKHWZRGLVSODFHPHQWVZLOOEH/DQG/7KHUHZLOOEHK\EULG
WXUERFKDUJHGDQGQDWXUDOO\DVSLUDWHGYHUVLRQVRIWKH/HQJLQHDQGQRK\EULGYHUVLRQRIWKH/HQJLQH
3ODWIRUP6QDSVKRW
7RS9HKLFOH 7R\RWD7R\RWD5$9%
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >3&@
9ROXPH
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
0D[3RZHUKS 0D[7RUTXH1P
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV %XIIDOR:9
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP ', &RQILJXUDWLRQ /
)XHO7\SH *$6 7RWDO9DOYHV
$VSLUDWLRQ 7&,
/D\RXW ))7
7R\RWD
$QQXDOL]HG
9ROXPH
1HZ15
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
7R\RWD7R\RWD5$9%
>3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
7R\RWD
9ROXPH
%XIIDOR:98QLWHG6WDWHV
7R\RWD
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
1HZ157RWDO
)LQDODVVHPEO\RSHUDWLRQVDW/RQJ%HDFKHVVHQWLDOO\FRQVLVWRIHQJLQHGUHVVRSHUDWLRQVLQFOXGLQJWKHDGGLWLRQRIH[WHUQDOSXPSVEHOWVKRVHVHWF7KHUHDUHQR
PDFKLQLQJRUFXELQJRSHUDWLRQVSHUIRUPHGDW/RQJ%HDFK
3ODWIRUP6QDSVKRW
7R\RWD
$QQXDOL]HG
9ROXPH
75*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
)RUHFDVW9DULDQFH
7R\RWD
9ROXPHV
$QQXDOL]HG
200
/9'2+&9
Thousands
3ODWIRUP
100
50
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7R\RWD
V85SODWIRUPFRQVLVWVRIWZRHQJLQHVIRUWKH1RUWK$PHULFDQPDUNHWD/'2+&9DQGD/'2+&97KH/9ZDVUHSODFHGHQWLUHO\E\WKHQHZ/
9IRUWUXFNVDQGIXOOVL]H689V
6RPHRI7R\RWD
V9VFDQUXQRQ(WRJDLQIXHOHFRQRP\FUHGLWVEXWZHVHHWKH(SXVKEHJLQQLQJWRIDGHLQWKLVFRXQWU\
3ODWIRUP6QDSVKRW
7RS9HKLFOH 7R\RWD7R\RWD7XQGUD$
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ />/&9@
9ROXPH
7R\RWD7R\RWD7XQGUD$
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
>/&9@
7R\RWD7R\RWD6HTXRLD/
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
>3&@
7R\RWD7R\RWD6HTXRLD/
0D[3RZHUKS 0D[7RUTXH1P
>3&@
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV +XQWVYLOOH$/
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP
7R\RWD
$QQXDOL]HG
9ROXPH
85*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&9
7R\RWD7R\RWD7XQGUD$
/>/&9@
/9'2+&9
7R\RWD7R\RWD6HTXRLD/
>3&@
7R\RWD7R\RWD6HTXRLD/
>3&@
7R\RWD7R\RWD7XQGUD$
/>/&9@
7R\RWD
7R\RWD7R\RWD7XQGUD$
>/&9@
3URGXFWLRQE\3ODQW
9ROXPH
+XQWVYLOOH$/8QLWHG6WDWHV
7R\RWD
/9'2+&9
/9'2+&9
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&9
/9'2+&9
857RWDO
(QJLQH'HOWDVE\$SSOLFDWLRQ
/9'2+&9
7R\RWD7R\RWD6HTXRLD/>3&@ $GG (QJLQH$SSOLFDWLRQ
7R\RWD7R\RWD6HTXRLD/>3&@ $GG 9HKLFOH/LIHF\FOH
7R\RWD
9ROXPHV
$QQXDOL]HG
500
400
/9'2+&/
3ODWIRUP
Thousands
300
200
100
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH=5HQJLQHLVWKHEDVH/HQJLQHLQWKH7R\RWD&RUROODDQG0DWUL[:HKDYHMXVWEHJXQWRIRUHFDVWWKHQH[WJHQHUDWLRQ=5HQJLQHZKLFKZLOOKDYHDGLVSODFHPHQWV
RI/DQG/DQGK\EULGDQGWXUERFKDUJHGYHUVLRQV
3ODWIRUP6QDSVKRW
7RS9HKLFOH 7R\RWD7R\RWD&RUROOD$
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ >3&@
9ROXPH
7R\RWD7R\RWD&RUROOD%
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
>3&@
7R\RWD7R\RWD&RUROOD%
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
>3&@
0D[3RZHUKS 0D[7RUTXH1P
0D[3RZHUN: 9DOYHV&\OLQGHU
9DOYHWUDLQ '2+& %ORFN0DWHULDO $OXPLQXP 3ODQWV %XIIDOR:9
9DULDEOH9DOYH7LPLQJ <HV +HDG0DWHULDO $OXPLQXP
)XHO6\VWHP 0), &RQILJXUDWLRQ /
)XHO7\SH *$6 7RWDO9DOYHV
$VSLUDWLRQ 1$
/D\RXW ))7
7R\RWD
$QQXDOL]HG
9ROXPH
=5*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
7R\RWD7R\RWD&RUROOD$
>3&@
7R\RWD7R\RWD&RUROOD%
>3&@
7R\RWD7R\RWD&RUROOD%
>3&@
3URGXFWLRQE\3ODQW
7R\RWD
9ROXPHV
$QQXDOL]HG
9ROXPH
%XIIDOR:98QLWHG6WDWHV
7R\RWD
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
=57RWDO
/9'2+&/
7R\RWD7R\RWD&RUROOD%>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
7R\RWD7R\RWD3ULXV;>3&@ 'URS (QJLQH$SSOLFDWLRQ
7R\RWD7R\RWD3ULXV;>3&@ 'URS 9HKLFOH/LIHF\FOH
7R\RWD
9ROXPHV
$QQXDOL]HG
600
3XHEOD0H[LFR
400 6LODR0H[LFR
Thousands
9RONVZDJHQ7RWDO
200
0
2017
2018
2019
2020
2021
2022
2023
2024
5HJLRQDO6WUDWHJLF+LJKOLJKWV Top Five North America Platforms
Engine Production
$V 9RONVZDJHQ 9: PRYHV SDVW LWV GLHVHO HPLVVLRQV LVVXH HOHFWULILFDWLRQ KDV 0.35
WDNHQ RYHU DV WKH EUDQG
V QHZ SRZHUWUDLQ VWUDWHJ\ IRU WKH IXWXUH 7KH DXWRPDNHU
ZDQWVWRODXQFKQHZHOHFWULFDQGSOXJLQK\EULGYHKLFOHVE\7KHFRPSDQ\ 0.3
SODQVWRVXSSRUWWKLVYROXPHE\DOVRDVVLVWLQJLQWKHGHYHORSPHQWRIPRUHHOHFWULF
Production in Millions
FKDUJHUVDQGFUHDWLQJDEDWWHU\IDFWRU\H[SHFWHGWRULYDO7HVOD
V*LJDIDFWRU\ 0.25
$V SURGXFWLRQ WDSHUV RII LQ 3XHEOD 0H[LFR WKH QHZ SODQW LQ 6LODR 0H[LFR LV 0.2
EA113/827/888
UDPSLQJ XS SURGXFWLRQ RI / DQG / ($ JDVROLQH HQJLQHV PRVW RI ZKLFK EA111/211
ZLOO VXSSRUW WKH YHKLFOH SODQW LQ 7HQQHVVHH 8QLWHG 6WDWHV )ROORZLQJ WKH ($ 0.15 EA390/398
EA086/188/189/153
HQJLQH ZLOO EH WKH ($ HQJLQH DOVR EXLOW LQ 6LODR 623 IRU WKDW XSJUDGH LV BOXER H4
DSSUR[LPDWHO\ 0.1
0.05
:H DOVR NQRZ 9: LV SODQQLQJ WR EXLOG / JDVROLQH HQJLQHV IURP WKH ($
SODWIRUPLQ0H[LFR 0
2017
2018
2019
2020
2021
2022
2023
2024
9RONVZDJHQ
$QQXDOL]HG
9ROXPH
9RONVZDJHQ
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
*OREDO(QJLQH&DSDFLW\$QDO\VLV
9ROXPHV
9RONVZDJHQ
0RGXOH&DSDFLW\
0RGXOH8WLOL]DWLRQ
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
4 1RUWK$PHULFD(QJLQH)RUHFDVW
&RS\ULJKW,+6,QF
9RONVZDJHQ$QDO\VLV
1RUWK$PHULFD(QJLQH3ODQW/RFDWLRQV
9RONVZDJHQ
Puebla, MEX
Silao, MEX
0IU9RONVZDJHQ
3XHEOD
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
($ _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0IU9RONVZDJHQ
6LODR
0(; 9ROXPHV
3/$7)250 _ _ _ _ _ _ _ _
($ _ _ _ _ _ _ _ _
($ _ _ _ _ _ _ _ _
7RWDO _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\ _ _ _ _ _ _ _ _
0RGXOH8WLOL]DWLRQ _ _ _ _ _ _ _ _
0RGXOH&DSDFLW\LVWKHFDSDFLW\RIILQDODVVHPEO\WRROLQJLQWKHSODQW
9RONVZDJHQ
100%
80%
Market Share
60% Volkswagen Gas
North America Gas
North America Diesel
40% Volkswagen Diesel
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
3RZHU'HQVLW\ OEM vs Regional
Power Density
:LWKDKLJKSHQHWUDWLRQRIVPDOOHQJLQHV²PDQ\RIWKHPDUHQDWXUDOO\DVSLUDWHG 100.0
/HQJLQHV²9RONVZDJHQ
VSRZHUGHQVLW\LVMXVWEHORZWKHUHJLRQDODYHUDJH
+RZHYHULWZLOOLPSURYHZKHQKLJKHUYROXPHVRI/DQG/WXUERFKDUJHG
($HQJLQHVFRPHRQOLQH 80.0
Volkswagen
40.0 North America
20.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
'LVSODFHPHQW OEM vs Regional
Displacement
9RONVZDJHQLVHQGLQJSURGXFWLRQRILWV/DQG/HQJLQHVWKDWDUHEXLOWDWWKH 3.5
3XHEOD0H[LFRSODQWDVLWODXQFKHVWZRQHZHQJLQHVD/DQG/DWWKH
SODQWLQ6LODR0H[LFR 3.0
Weighted Avearage
2.5
Displacement
2.0
North America
1.5
Volkswagen
1.0
0.5
9RONVZDJHQ
0.0
2017
2018
2019
2020
2021
2022
2023
2024
80.0%
Market Share
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
Weighted Average
100.0
Volkswagen
North America
50.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
&\OLQGHUV OEM vs Regional
Cylinders
9RONVZDJHQSURGXFHVDQGF\OLQGHUQDWXUDOO\DVSLUDWHGHQJLQHVLQ1RUWK 6.0
$PHULFDDVZHOODVF\OLQGHUWXUERFKDUJHGJDVROLQHHQJLQHVDQGLVHYDOXDWLQJ
DGGLWLRQDOGLHVHOHQJLQHSURGXFWLRQLQWKHIXWXUH
Number of Cylinders
Weighted Average
4.0
North America
Volkswagen
2.0
0.0
2017
2018
2019
2020
2021
2022
2023
2024
$VSLUDWLRQ OEM vs Regional
Aspiration
9:
VHQJLQHSODWIRUPVWUDWHJ\LVYHU\GHSHQGHQWRQWXUERFKDUJHUWHFKQRORJ\ 120.0%
ZKLFKDOORZVLWWRSURGXFHYDULRXVSRZHUOHYHOVIURPRQHEDVLFSODWIRUP7KLV
VWUDWHJ\KDVEHHQXVHGLQ(XURSHIRUPDQ\\HDUVDQGLVQRZEHFRPLQJDWUHQGLQ
100.0%
1RUWK$PHULFDDVZHOO
80.0%
Market Share
Volkswagen Turbo
60.0% North America Turbo
North America Natural
North America Super
40.0% Volkswagen Natural
9RONVZDJHQ
Volkswagen Super
20.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
Market Share
7KHFRPSDQ\KDVEHFRPHPXFKPRUHDJJUHVVLYHLQHOHFWULILFDWLRQSDUWLFXODUO\ 15.0% Volkswagen Hybrid-Mild
Volkswagen Hybrid-Full
EHFDXVHRIWKHGLHVHOVLWXDWLRQEXWEHFDXVH9:PXVWPHHW&DOLIRUQLD
V]HUR North America Hybrid-Full
HPLVVLRQYHKLFOH=(9PDQGDWHWKURXJKHOHFWULFIXHOFHOODQGSOXJLQK\EULG 10.0% North America Hybrid-Mild
YHKLFOHV0RVWPRGHOVZLOOEHLPSRUWHGXQWLOVDOHVMXVWLI\ORFDOL]HGSURGXFWLRQ
5.0%
0.0%
2017
2018
2019
2020
2021
2022
2023
2024
'LUHFW,QMHFWLRQ OEM vs Regional
Direct Injection
9:LVRQHRIWKHPRVWDJJUHVVLYHPDQXIDFWXUHUVZKHQLWFRPHVWRGLUHFWLQMHFWLRQ 120%
',',ZLOOEHLQFOXGHGRQPRVWLIQRWDOORILWVIXWXUHJDVROLQHHQJLQHV
100%
80%
Market Share
60%
Volkswagen
North America
40%
20%
0%
2017
2018
2019
2020
2021
2022
2023
2024
9DULDEOH9DOYH7LPLQJ OEM vs Regional
Variable Valve Timing
$VWKHROGHU/HQJLQHQHDUVWKHHQGRISURGXFWLRQDOPRVWDOOQHZHU 120%
9RONVZDJHQHQJLQHVZLOOXWLOL]HYDULDEOHYDOYHWLPLQJLQFOXGLQJWKHQHZHU($
HQJLQHVWKDWDUHQRZEXLOWLQ6LODR0H[LFR
100%
80%
Market Share
60%
Volkswagen
North America
40%
20%
9RONVZDJHQ
0%
2017
2018
2019
2020
2021
2022
2023
2024
9RONVZDJHQ
9ROXPHV
$QQXDOL]HG
350
300
/9'2+&/
250
/9'2+&/
Thousands
/9'2+&/
150 3ODWIRUP
100
50
0
2017
2018
2019
2020
2021
2022
2023
2024
3URGXFWLRQ2XWORRN
7KH($SODWIRUPLV9RONVZDJHQ
VKLJKHVWYROXPHUDQJHRIJDVROLQHHQJLQHVIRUWKH1RUWK$PHULFDQPDUNHW
3URGXFWLRQIRUWKHQHZHQJLQHOLQHKDVDOUHDG\VWDUWHGZLWKLQLWLDOFDSDFLW\RIDSSUR[LPDWHO\HQJLQHVSHU\HDUDOWKRXJK9:FRXOGH[SDQGWKDWFDSDFLW\VKRUWO\
7KHUHSODFHPHQWIRU($ZLOOEH($ZLWK623DW6LODRDURXQG7KHHQJLQHFRXOGEHLPSRUWHGIURP(XURSHDQGLQVWDOOHGLQ1RUWK$PHULFD±SURGXFHGYHKLFOHV
DVHDUO\DV
3ODWIRUP6QDSVKRW
7RS9HKLFOH 9RONVZDJHQ9RONVZDJHQ7LJ
9DULDQWV 6SHFLILF7RUTXHOEIW/
$SSOLFDWLRQV%\ XDQ9:>3&@
9ROXPH
9RONVZDJHQ9RONVZDJHQ3D
6SHFLILF3RZHUKS/ 6SHFLILF7RUTXH1P/
VVDW9:>3&@
9RONVZDJHQ9RONVZDJHQ-HWW
6SHFLILF3RZHUN:/ 0D[7RUTXHOEIW
D9:>3&@
9RONVZDJHQ$XGL4$8
0D[3RZHUKS 0D[7RUTXH1P
>3&@
9RONVZDJHQ9RONVZDJHQ*RO
0D[3RZHUN: 9DOYHV&\OLQGHU I6SRUW:DJHQ9:>
3&@
9DOYHWUDLQ '2+&62+& %ORFN0DWHULDO ,URQ 3ODQWV 3XHEOD
9DULDEOH9DOYH7LPLQJ 1R<HV +HDG0DWHULDO $OXPLQXP 6LODR
)XHO6\VWHP ',0), &RQILJXUDWLRQ //
)XHO7\SH *$6*$6( 7RWDO9DOYHV
9RONVZDJHQ
$VSLUDWLRQ 1$7&,7&,(%RRVW
/D\RXW ))/))7
$QQXDOL]HG
9ROXPH
($
*OREDO
3URGXFWLRQ
(XURSH
*UHDWHU&KLQD
-DSDQ.RUHD
0LGGOH
(DVW$IULFD
1RUWK$PHULFD
6RXWK$PHULFD
6RXWK$VLD
3URGXFWLRQE\9HKLFOH$SSOLFDWLRQ
9ROXPHV
$QQXDOL]HG
9ROXPH
/9'2+&/
9RONVZDJHQ9RONVZDJHQ%HHWO
H&RQYHUWLEOH9:>
3&@
9RONVZDJHQ9RONVZDJHQ*ROI
6SRUW:DJHQ9:>
3&@
9RONVZDJHQ9RONVZDJHQ*ROI
9:>3&@
9RONVZDJHQ9RONVZDJHQ-HWWD
9:>3&@
9RONVZDJHQ9RONVZDJHQ3DVV
DW9:>3&@
/9'2+&/
9RONVZDJHQ$XGL$$8
>3&@
9RONVZDJHQ
9RONVZDJHQ$XGL4$8
>3&@
9RONVZDJHQ$XGL4$8
>3&@
9RONVZDJHQ9RONVZDJHQ$WODV
&RXSH9:>3&@
9RONVZDJHQ9RONVZDJHQ$WODV
9:>3&@
9RONVZDJHQ9RONVZDJHQ$WODV
9:>3&@
9RONVZDJHQ9RONVZDJHQ'
0399:&6>3&@
9RONVZDJHQ9RONVZDJHQ-HWWD
9:>3&@
9RONVZDJHQ9RONVZDJHQ3DVV
DW9:>3&@
9RONVZDJHQ9RONVZDJHQ7KDU
X9:>3&@
9ROXPHV
$QQXDOL]HG
9ROXPH
9RONVZDJHQ9RONVZDJHQ7LJX
DQ9:>3&@
9RONVZDJHQ9RONVZDJHQ7LJX
DQ9:>3&@
/962+&/
9RONVZDJHQ9RONVZDJHQ-HWWD
9:>3&@
/9'2+&/
9RONVZDJHQ9RONVZDJHQ-HWWD
9:>3&@
9RONVZDJHQ9RONVZDJHQ3DVV
DW9:>3&@
3URGXFWLRQE\3ODQW
9ROXPHV
$QQXDOL]HG
9ROXPH
3XHEOD0H[LFR9RONVZDJHQ
/9'2+&/
/962+&/
/9'2+&/
6LODR0H[LFR9RONVZDJHQ
/9'2+&/
/9'2+&/
)RUHFDVW9DULDQFH
&XUUHQW4)RUHFDVWYV3ULRU4)RUHFDVW
9RONVZDJHQ
$QQXDOL]HG9ROXPHV
&XUUHQW
&XUUHQW
&KDQJH
&KDQJH
(QJLQH
/9'2+&/
/9'2+&/
/962+&/
/9'2+&/
($7RWDO
/9'2+&/
9RONVZDJHQ9RONVZDJHQ*ROI6SRUW:DJHQ9:>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
9RONVZDJHQ9RONVZDJHQ*ROI9:>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
9RONVZDJHQ9RONVZDJHQ*ROI9:>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
9RONVZDJHQ9RONVZDJHQ-HWWD9:>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
9RONVZDJHQ9RONVZDJHQ-HWWD9:>3&@ 'URS (QJLQH$SSOLFDWLRQ
9RONVZDJHQ9RONVZDJHQ-HWWD9:>3&@ 'URS 9HKLFOH/LIHF\FOH
9RONVZDJHQ9RONVZDJHQ3DVVDW9:>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&/
9RONVZDJHQ9RONVZDJHQ$WODV&RXSH9:>3&@ $GG (QJLQH$SSOLFDWLRQ
9RONVZDJHQ9RONVZDJHQ$WODV&RXSH9:>3&@ $GG 9HKLFOH/LIHF\FOH
9RONVZDJHQ9RONVZDJHQ$WODV&RXSH9:6>3&@ 'URS (QJLQH$SSOLFDWLRQ
9RONVZDJHQ9RONVZDJHQ$WODV&RXSH9:6>3&@ 'URS 9HKLFOH/LIHF\FOH
9RONVZDJHQ9RONVZDJHQ'0399:&6>3&@ $GG (QJLQH$SSOLFDWLRQ
9RONVZDJHQ9RONVZDJHQ'0399:&6>3&@ $GG 9HKLFOH/LIHF\FOH
9RONVZDJHQ9RONVZDJHQ-HWWD9:>3&@ $GG (QJLQH$SSOLFDWLRQ
9RONVZDJHQ9RONVZDJHQ-HWWD9:>3&@ $GG 9HKLFOH/LIHF\FOH
9RONVZDJHQ9RONVZDJHQ3DVVDW9:>3&@ &KDQJH 9HKLFOH9ROXPH,QFUHDVH
9RONVZDJHQ9RONVZDJHQ7KDUX9:>3&@ $GG (QJLQH$SSOLFDWLRQ
9RONVZDJHQ9RONVZDJHQ7KDUX9:>3&@ $GG 9HKLFOH/LIHF\FOH
/962+&/
9RONVZDJHQ9RONVZDJHQ-HWWD9:>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
/9'2+&/
9RONVZDJHQ9RONVZDJHQ-HWWD9:>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
9RONVZDJHQ9RONVZDJHQ-HWWD9:>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
9RONVZDJHQ9RONVZDJHQ3DVVDW9:>3&@ &KDQJH (QJLQH$SSOLFDWLRQ3HUFHQWDJH
9RONVZDJHQ9RONVZDJHQ3DVVDW9:>3&@ &KDQJH 9HKLFOH9ROXPH'HFUHDVH
9RONVZDJHQ
Driveline Module
7 year forecast
10+ years history
Transmission Base
12-year Extension Module
Forecast
12 year forecasts
7 year forecast 10+ years history
10+ years history
Alternative Propulsion
Stand-alone Product
7 year forecast
10+ years history
Forecast Horizon
Automotive Technology
(Infotainment, Advanced Driver Assist,
and more)