COMMITMENT

ALU DIE-CASTING | GM, TOYOTA & BRM

2.8 BUNDLE AWARDING PROJECT
10.04.2024
 01 Competitive Landscape

02 TCO Overview

03 Commercial Picture

04 Awarding Premises

05 Negotiation Design

AGENDA 06 Awarding Commitment

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Competitive Landscape Supplier released
More clarification needed
Supplier not released

Lifetime
Packages Boda Ruichu Wuxi CRBC Proturbo Presmak
Volume *
Heat Sink Volume A $ 3.7 Mio.

Heat Sink Volume B $ 2.4 Mio.

End Shield Volume A $ 24.5 Mio.

End Shield Volume B $ 14.4 Mio.

BRM 2.8 $ 30.2 Mio.

TOTAL $ 75.2 Mio.

* Piece price incl. LTA‘s, does not include tooling

Additional restrictions:
 Bundling of specific part numbers due to tooling synergies will be considered in the final nomination
 No further restrictions
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Comparison Price Overview
Identification of best supplier per component

Best supplier
Leading supplier
Best supplier comparison Distance 2nd to
Packages Volume Project Target price* Distance to target comp. price
commercially* price (incl. 1st CP [%]
[commercially]
Bonus/Penalty)
F00M.712.093-03 A HS BRM 2.8 VW $ 6.9 Mio. $ 5.1 Mio. $ -1.8 Mio. [-26%] $ 6.0 Mio. Boda [Boda] $ 0.7 Mio. [12%]
F00M677986 A DES HD (V1) GM $ 5.0 Mio. $ 4.5 Mio. $ -0.5 Mio. [-11%] $ 5.5 Mio. Boda [Boda] $ 0.1 Mio. [2%]
Proturbo
1005.871.039 B DES ST78-M GM $ 4.8 Mio. $ 4.2 Mio. $ -0.6 Mio. [-12%] $ 4.8 Mio. $ 0.6 Mio. [12%]
[Proturbo]

F00M.787.267-01 A DES BRM 2.8 VW $ 6.0 Mio. $ 3.9 Mio. $ -2.1 Mio. [-34%] $ 4.6 Mio. Boda [Boda] $ 0.2 Mio. [5%]

T1XX HD (V8/V9) - GM B Bundle $ 5.7 Mio. $ 3.8 Mio. ** $ -1.9 Mio. [-33%] $ 5.4 Mio. CRBC [CRBC] $ 1.9 Mio. [36%]

F00M787316-02 A DES BRM 2.8 VW $ 4.1 Mio. $ 3.8 Mio. $ -0.3 Mio. [-6%] $ 4.6 Mio. Boda [Boda] $ 0.1 Mio. [2%]

T1XX HD (V7) - GM B Bundle $ 5.5 Mio. $ 3.7 Mio. ** $ -1.8 Mio. [-33%] $ 4.5 Mio. CRBC [CRBC] $ 6.4 Mio. [40%]
F00M.712.090-02 A HS BRM 2.8 VW $ 4.7 Mio. $ 3.4 Mio. $ -1.3 Mio. [-26%] $ 4.0 Mio. Boda [Boda] $ 0.5 Mio. [14%]

F00M.787.783 A SRES BRM 2.8 VW $ 4.0 Mio. $ 3.4 Mio. $ -0.6 Mio. [-12%] $ 4.0 Mio. Ruichu [Ruichu] $ 0.1 Mio. [3%]

F00M.712.032 A HS BRM 2.8 AMI $ 4.4 Mio. $ 3.4 Mio. $ -1.0 Mio. [-23%] $ 4.2 Mio. CRBC [Boda] $ 0.2 Mio. [5%]
Others $ 48.0 Mio. $ 35.9 Mio. $ -12.1 Mio. [-25%]
TOTAL $ 99.0 Mio. $ 75.2 Mio. $ -23.8 Mio. Boda 30%; Ruichu 16%; Wuxi 2%; CRBC 42%; Proturbo 9%

* Piece price incl. LTA‘s, does not include tooling and logistics; ** approximation, final clarification for tooling synergies with suppliers pending
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Commercial Picture BR Scope
Text = under review by SEG

Additional
Evaluation criteria Boda Ruichu Wuxi CRBC Proturbo
Comments
Consignment stock + payment terms +7.21% +7.21% +7.21% +0.28% +1.23% Variable B/P
Logistic costs +18.5% +18.5% +18.5% +0.0% +0.0%
Experience with family product ES -0.25% 0.0% -0.5% -0.5% -0.5%
Experience with family product HS 0.0% -0.25% 0.0% -0.5% -0.5%
Experience with family product BRM 0.0% 0.0% 0.0% 0.0% 0.0%
Commercial potentials -1.0% -1.0% -0.5% 0.0% 0.0% Variable in BC
Delivery performance +0.06% +0.77% +0.58% +0.45% +1.09%
Quality performance +0.18% +0.55% +0.55% +0.91% +0.55%
Payment tooling tbc tbc tbc tbc tbc Variable B/P
Duty costs (applies to Toyota scope
50% on tooling only 50% on tooling only 50% on tooling only 0.0% 0.0%
only)
TOTAL incl. logistic costs* + 24.7% + 25.8% + 25.8% + 1.2% + 1.9% >< 24.6%
Excl. logistic costs* +6.2% +7.3% +7.3% +1.2% +1.9% >< 6.1%

 Suppliers will be informed that a Bonus/Penalty evaluation is used. Actual Bonus/Penalty values will be
communicated as an overall evaluation towards suppliers.
 Bonus: Negative, Penalty: Positive
* Duty costs not considered here
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Commercial Picture MX Scope
Text = under review by SEG

Additional
Evaluation criteria Boda Ruichu Wuxi CRBC Proturbo
Comments
Consignment stock + payment terms +7.21% +7.21% +7.21% +6.38% +6.38% Variable B/P
Logistic costs +11.5% +11.5% +11.5% +12.5% +12.5%
Experience with family product ES -0.25% 0.0% -0.5% -0.5% -0.5%
Experience with family product HS 0.0% -0.25% 0.0% -0.5% -0.5%
Experience with family product BRM 0.0% 0.0% 0.0% 0.0% 0.0%
Commercial potentials -1.0% -1.0% -0.5% 0.0% 0.0% Variable in BC
Delivery performance +0.06% +0.77% +0.58% +0.45% +1.09%
Quality performance +0.18% +0.55% +0.55% +0.91% +0.55%
Payment tooling tbc tbc tbc tbc tbc Variable B/P
TOTAL incl. logistic costs + 17.7% + 18.8% + 18.8% + 19.2% + 19.5% >< 1.8%
Exkl. logistic costs +6.2% +7.3% +7.3% +6.7% +7.0% >< 1.1%

 Suppliers will be informed that a Bonus/Penalty evaluation is used. Actual Bonus/Penalty values will be
communicated as an overall evaluation towards suppliers.
 Bonus: Negative, Penalty: Positive

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Commercial Picture EU Scope
Text = under review by SEG

Additional
Evaluation criteria Boda Ruichu Wuxi CRBC Proturbo
Comments
Consignment stock + payment terms 0.0% 0.0% 0.0% 0.0% 0.0% Variable B/P
Logistic costs +12.0% +12.0% +12.0% +16.0% +16.0%
Experience with family product ES 0.0% 0.0% 0.0% 0.0% 0.0%
Experience with family product HS 0.0% 0.0% 0.0% 0.0% 0.0%
Experience with family product BRM -0.25% -0.5% 0.0% +0.5% +0.5%
Commercial potentials -1.0% -1.0% -0.5% 0.0% 0.0% Variable in BC
Delivery performance +0.06% +0.77% +0.58% +0.45% +1.09%
Quality performance +0.18% +0.55% +0.55% +0.91% +0.55%
Payment tooling tbc tbc tbc tbc tbc Variable B/P
TOTAL incl. logistic costs + 11.0% + 11.8% + 12.6% + 17.9% + 18.1% >< 7.1%
Exkl. logistic costs -1.0% -0,2% +0.6% +1.9% +2.4% >< 3.4%

 Suppliers will be informed that a Bonus/Penalty evaluation is used. Actual Bonus/Penalty values will be
communicated as an overall evaluation towards suppliers.
 Bonus: Negative, Penalty: Positive

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Variable Bonus/Penalty Text = under review by SEG

 Suppliers will be able to improve specific bonus/penalty within the awarding process
Consignment stock Payment terms Bonus/Penalty CN to Bonus/Penalty BR to MX Bonus/Penalty BR to BR
Topic
BR/MX
Rejection 90 days 7.21% Penalty 6.38% Penalty tbc
Consignme
Rejection 120 days 4,65% Penalty 3.80% Penalty tbc
nt stock &
Rejection 150 days 2.56% Penalty 1.21% Penalty ± 0% Penalty
payment
Acceptance with SEG warehouse management 90 days ± 0% Penalty ± 0% Penalty ± 0% Penalty
terms
Acceptance 90 days ± 0% Penalty ± 0% Penalty ± 0% Penalty

Topic Evaluation OTP + APN Bonus/Penalty

1% -1% Bonus
Each percentage point improvement in the OTP & APN will result in an
3% -3% Bonus
Commercial potentials improvement in the overall business case and will be rewarded by SEG in
5% (=SEG target) -5% Bonus
the form of an additional percentage point bonus
6% -6% Bonus

Topic Feedback supplier Bonus/Penalty

• 50% of the tool costs paid by separate PO (state PPAP release timing 2025) and 50% of the remaining -1.0% Bonus
costs amortized in part price (SOP+12 months)
Tooling
• 100% payment with PPAP release (state PPAP release timing 2025) ± 0% Penalty
• Rejection of 100% payment with PPAP release or later +1.0% Penalty

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Variable Bonus/Penalty - Decisions needed

Open Topics Status Decision

5 options as outlined on
What options should we offer suppliers with regard to consignment stock? Closed
previous page

What should the malus be for tooling? Closed 1.5%

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Awarding Premisses

When deciding on a negotiation approach the following awarding premises are considered:
 The winner(s) of the competitive negotiation will get a binding Nomination Letter for GM, Toyota & BRM 2.8 Bundle awarding.
 The awarding decision is based on the Total Value of Ownership including Bonus/Penalty to guarantee a holistic evaluation. This
also implies that a supplier, who is not leading in commercial offer can be the winner.
 Suppliers will be allowed to increase individual price positions up to the "target price level“, as long as they confirm or improve
their comparison price level.
 Previous offers form a fallback option for the market design. In the worst case, a nomination is made based on the best offer
approved by the committee.
 All suppliers are approved and eligible for nomination according to the competitive landscape and the individual Bonus/Penalty
evaluation.
 An awarding of the total scope to one suppliers is possible without restrictions.
 Commercial potentials (Synergy effects & Quick Savings) are considered in the business case evaluation.
 There is no direct flow of funds to the evaluating process partner due to the Bonus/Penalty assessment.

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 Negotiation Design
Phase 1.1
Direct nomination and direct final
qualification opportunity
Time/Place 17.04.2024 // E-Mail
Participants All feasible suppliers
▪ Suppliers will receive information about SEG
targets for all single items and bundles
▪ All suppliers are requested to hand in an offer
update for all feasible scopes incl. a feedback on
which single items/bundles they would like to win
▪ Suppliers are further requested to give feedback
with regard to the variable B/P topics
▪ In the offer update suppliers will be able to
increase individual price positions in order to
improve their commercial potentials offer
Process ▪ The commercial potential offer will be decisive for
a direct nomination and the qualification for
Phase 2:
▪ ≥5% CP → direct nomination of all
single items and bundles where the
supplier leads in comparison price
▪ ≥3% CP → qualification for Phase 2
▪ For all items which are not awarded in Phase 1.1
the following applies: Only those suppliers among
the TOP 2 and/or below the target qualify for the
respective scope for further Phases
Potential awarding of major/partial scope
Result Qualification decision for Phase 1.2 and Phase 2
Ranking for Phase 2
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Phase 1.2
Direct awarding of all scopes with C-
sample date 06/24
18.04.2024 // E-Mail
All feasible suppliers
▪ Suppliers simultaneously receive comparison price
offers for a total bundle including all scopes with
C-sample date 06/24
▪ Offers can either be accepted or declined by each
supplier
▪ For each package & bundle, the following applies:
▪ If only one supplier accepts an offered price step,
this supplier is immediately and irrevocably
nominated for this bundle
▪ If more than one suppliers accept the same price
step a tie occurs. The supplier with the higher
commercial potential offer will immediately and
irrevocably be nominated
▪ If all suppliers decline the offer, the comparison
price level will be increased, and the same rules
apply
▪ The winner of Phase 1.2 will qualify for Phase 2,
independent of the outcome of Phase 1.1
Irrevocable awarding of scope with C-sample date
06/24
Phase 2
Direct awarding opportunity
preferred scope
18./19.04.2024 // E-Mail
All qualified suppliers from Phase 1.1 & Phase 1.2
▪ SEG will conduct individual sequential meetings
with those suppliers, that have qualified in Phase
1.1 or 1.2 through a competitive offer
▪ SEG will first approach the supplier with the
highest commercial potentials offer in Phase 1.1
▪ For the individual meetings SEG prepares bundles
and respective comparison price offers for these
bundles considering the preferences of suppliers
they provided together with the offer update in
Phase 1.1
▪ SEG will then prepare multiple offer options for
each supplier
▪ If a supplier accepts one of these offers, he is
immediately and irrevocably nominated for this
scope
▪ If a supplier declines all of the offers, the supplier
will have no further chance in Phase 2 to be
nominated and SEG will approach the supplier
with the next best commercial potentials offer in
Phase 1.1 which has qualified for Phase 2, and the
same rules apply
Potential awarding of major/partial scope
Optional
Phase 3
Awarding of remaining scope
19./22.04.2023 // E-Mail
All qualified suppliers from Phase 1
▪ Only in the case that not all scopes have been
awarded in previous Phases, SEG will conduct
Phase 3 as a final opportunity for suppliers to win
the remaining single items or bundles
▪ Phase 3 will be conducted in 3 Rounds:
▪ Round 1: 10:00 am CET
▪ Round 2: 2:00 pm CET
▪ Round 3: 5:00 pm CET
▪ In each round suppliers are requested to hand in
an offer update for all remaining scopes they are
qualified for
▪ Suppliers will receive individual feedback from SEG
about the competitiveness of their offer on single
item or bundle level in the form of % distance to
1st Best supplier according to comparison price
level
▪ In Round 3 SEG will make the final nomination
decision and will nominate the best supplier
according to comparison price level for each single
item and bundle
Irrevocable awarding of remaining scope
Negotiation Design - Decisions needed

Open Topics Status Decision

Awarding timing for critical and none-critical scope Closed

Final nomination for parts
with C-sample date 06/24
by 19.04.
No restriction for non-time
critical parts

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Awarding Commitment

SEG confirms that the awarding decision for ALU Die-Casting GM, Toyota & BRM 2.8 Bundle awarding project will be
determined solely by the structured awarding process. The awarding process will be executed in 100% compliance with
the communicated rules. SEG will not accept any offers from suppliers which are not in line with rules of the structured
awarding process. There will be no additional negotiation / renegotiation after the awarding process.

________________________________________________________ _____________________________________________________
Patrick Schaible, Vice President Purchasing Tito Moura, Purchasing Director Americas

________________________________________________________ _____________________________________________________
Burak Hamurculu, Head of Purchasing Quality Gustavo Sperancin, Purchasing Manager Americas

________________________________________________________
Manuel Quindós Fernández, Project Lead Mateus Hildebrand, Strategic Purchasing Manager

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Open topics (1/2)

Open Topics Responsible Deadline

Schedule the meetings with the suppliers and forward to NAG Manuel / Mateus Today

Provide current overall business volume for each supplier with SEG Manuel / Mateus Today

Update of supplier communication presentation with regard to open topics Manuel / Mateus Today

Provide contractual penalty in case of not meeting the C-sample date Manuel / Mateus Today

Is the business compensation for Proturbo still relevant? If yes, please provide
Mateus Today
the valuation

Provide feedback from suppliers regarding payment of tooling costs Manuel / Mateus Today

Provide feedback regarding B/P consignment stock values for BR suppliers Mateus Today

Provision of missing drawings to CRBC and technical validation of CRBC for part
Manuel / Mateus Today / 17.04.
numbers they have not yet quoted

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Open topics (2/2)

Open Topics Responsible Deadline

Follow-up on lead time confirmation & feasibility study with suppliers Manuel / Mateus Today

Align with suppliers newly aligned bundling strategy Manuel / Mateus Today

Push for confirmation of suppliers regarding bundling of tooling Manuel / Mateus Today

Inform the suppliers regarding changes in part number and specifications (.923
Manuel / Mateus Today
to .855)
Internally align on how to proceed with tooling costs and tool ownership
Manuel / Mateus Today
(100% supplier vs. 70:30 split)

Supplier specific clarifications (e.g. OTP comment Ruichu) Manuel / Mateus Today

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