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Activity Report
2007-2008
Safety
Control
Contents
Comfort
Faiveley S.A.
Limited Liability Company with a Management Board and a Supervisory Board
with a share capital of €12,529,585.
Carrefour Pleyel, 143, boulevard Anatole - France
FR-93285 Saint-Denis Cedex - France
Tel.: +33 (0) 1 48 13 65 00
Fax: +33 (0) 1 48 13 65 54
www.faiveley.com
E-mail : [email protected]
Design & Production: Keima • Photos credits: G. Liesse, C. Recoura, P. Sordoillet, A. Hauptmann – Library media Faiveley, D.R., X
Service
For all the trains in the world
Profile/Key Figures
01
The Chairman’s message
02
Significant events
04
Safety
08
Control
12
Comfort
14
Service
16
Human Resources
18
Research and Development
20
Faiveley and
its Shareholders
22
Legal Structure
24
PANORAMA
A complete
offer with high
technical added
value
Today, the Faiveley group,
a pioneer in the railway industry
and the creator of the pantograph,
boasts the world’s most
comprehensive expertise in
supplying all fundamental systems
and components for rolling stock.
Its unique product offer, combined
with a wide range of operating
services, is entirely dedicated to
reliability, safety and comfort.
From energy capture in high-speed
trains to platform screen doors,
Faiveley designs complete turnkey
solutions with high technical
added value for constructors and
operators. Its experience, combined
with a highly complementary range
of skills and know-how, are key
assets in propelling Faiveley to
the very top in performance and
competitive edge.
ELECTROMECHANICS
ELECTRONICS
ÉLECTROMÉCANIQUE
HIGH VOLTAGE SWITCHING
ENERGY CONVERTORS
AIR CONDITIONING
ELECTRONICS
ON-BOARD
ELECTRONICS
ELECTROMECHANICS
BRAKES
COUPLERS
DOORS (ACCESS, INTERIOR.....)
DISCS AND BRAKING SYSTEMS
COUPLERS
FAIVELEY
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ACTIVITY
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2007/2008
01
Faiveley is a key
player in the field
of railway equipment
and systems
An international company,
of French origin, with locations
on all continents, the Group counts
nearly 4,000 employees, including
more than 2,000 engineers, and
generates sales of €692.9 million,
of which 75% are outside of France.
The Group's exclusive focus on the
railway sector sets it apart from its
competitors. Its industrial capacity
and renowned expertise in both
engineering and project management
are highlighted through its
complete and innovative offering of
products and services. Faiveley is a
partner for the world’s largest
operators and constructors, and
supports its customers in all their
business needs with proven and
standardized solutions designed to
be adapted on a local level to highly
specific needs.
z
€693 million
z
€1 billion
Sales
Order Book
z 4,000
Employees
z 40
Sites worldwide
z 20
Countries worldwide
02
CHAIRMAN’S
MESSAGE
“
Faiveley provides
access to cutting-edge
technology
for each of
its customers
– no matter what
their size.”
FAIVELEY
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ACTIVITY
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2007/2008
Further reason for optimism is in
the determination, the devotion
and the skills of our teams. Our
workforce’s dedication should be
acknowledged and saluted.
Throughout the world, the railway industry
continues to grow rapidly, spurred by the public
and private sectors’ current investments. Faiveley
knows how to take advantage of this climate.
The Group’s vitality is clear, with sales up by
11.8% and a roster of orders that totaled more
than one billion euros at the end of our fiscal year.
Operating margins remain robust, allowing us to
respond to our customers’ increasing demands
with continually improved reliability, quality
and cost.
We have made major investments in tools and
working methods that will help to increase our
efficiency and a great deal of energy has been
mobilized for the “Moving Forward” ERP project,
which will be deployed fully over the next three
years.
By the end of the 2007-2008 fiscal year, our
economic performance allowed the Group to
reduce our debt to nearly zero. There is no doubt
that Faiveley has all of the resources it needs
to accelerate growth and continue expanding
internationally.
Throughout the world, across our
40 different sites located in 20
countries, the Group continues to
grow efficiently with both new
and returning customers.
Our engineers in research
and engineering and our project
managers innovate to find
technical solutions adapted
to new configurations
in both original and renovated
equipment. Moreover,
the Group has been adept in
making strategic acquisitions that
give us the up-to-the minute
technology we need to provide
equipment and service offers that
are more integrated, highperformance and competitive
than ever before. In addition to
China, Eastern Europe, India and
Australia all offer great potential
for organic growth.
Faiveley provides access to
cutting edge technology and
dedicated equipment for each of
its customers – no matter what
their size. The growth of highspeed trains, the liberalization of
transport networks, the European
freight programs, and the world’s
growing awareness that
sustainable development is an
urgent priority, all offer the Group
an excellent outlook for growth.
Finally, our shareholders’
thorough understanding of the
work we do, their unflagging
support, and their renewed
confidence in the strategy we are
implementing, all provide strong
encouragement to bring the
Faiveley Group to new levels of
performance – both in terms of
market and of results.
Robert Joyeux
Chairman, Management Board
of Faiveley S.A.
03
04
SIGNIFICANT
EVENTS
Key
Events
Southern
Exposure
On December 7, 2007, Faiveley’s
acquisition of Integrian opened up new
possibilities in the field of on-board
electronics (passenger information
systems, train locator systems). The
Group’s offering in video surveillance,
event recording (black boxes), driver
vigilance and driver aid equipment has
been added to and strengthened. The
acquisition of these strategic assets will
also help Faiveley anticipate growth in
the rail industry both in Europe and in
the Asia-Pacific region.
China: Presence
strengthened
in the compressor
market
In December 2007, Shi Jia Zhuang Jia
Xiang Precision Machinery co. Ltd, which
is based 250 km (155 miles) southwest
of Beijing in the province of Hebei,
is specialized in the production and
development of compressors for the rail
market. With more than 70 employees,
the company is a major presence on the
Chinese market in the metro, EMU and
locomotives sectors. Faiveley acquired a
50% stake in the company on
December 20, 2007, which will allow
the Group to benefit from the latest
developments of a range of products on
the cutting edge of technology while
gaining access to highly competitive
production costs.
The coupler
of the year
On July 1, 2007, Faiveley
reinforces its international
presence and created a joint
venture with the Chinese Group,
Datong Electric Locomotive Co.
This 50/50 joint venture is
dedicated to manufacturing
couplers. Situated in the North
of Shanxi, 400 km from Beijing,
this new site is well equipped to
successfully supply the
demanding Chinese market and
anticipate its strong potential
growth: Faiveley’s
comprehensive expertise and
Datong’s capacity to reduce
production costs. A first order
had already been taken in
September 2007 for €2.3m.
FAIVELEY
A model centre
of excellence
Sanding
goes gold
January 2, 2008, Germany: the Remshield
factory, which produced braking systems, had
reached a saturation point. Its 260 employees,
spread out across six ageing buildings on several
different floors, needed a more operational work
setting. They found one just 40 km (25 miles)
away, in Witten. This new centre of excellence
for Bogies, Brakes and Couplers was designed
to use a flow-oriented floor plan and to optimize
industrial excellence, and it is a model for
performance. With lowered costs and improved
productivity, profitability and internal
communications, Witten will play a principal role
in Faiveley’s business growth, particularly in
Germany.
On January 8, 2008,
Faiveley acquired a 75%
stake in the German
company Nowe
Streugeräte, recognized as
the most innovative sanding
systems’ specialist on the
market. With this
acquisition, Faiveley is set
to respond to its
customers’ growing
demand for complete
braking systems that
include sanding, a key
safety feature. In addition,
it brings Faiveley new
opportunities on the
German market.
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ACTIVITY
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2007/2008
Number one
in the world
for high-energy
braking
Faiveley began negotiations to
acquire Carbone Lorraine’s sintered
braking materials business (finalized
April 1, 2008), completing the
Group’s offering in braking systems.
The addition of this highly
specialized technical skill for discs
and braking materials will bring topflight braking system technologies
to customers around the world,
optimizing energy management and
reducing use-related costs.
05
06
PANORAMA
Safety
Control
Comfort
Service
THE PROJECT MANAGER GUARANTEES CUSTOMER SATISFACTION
More than ever, our customers are seeking complete solutions that are specifically adapted to their needs, and Faiveley
has organised project management across the board to respond to this demand. The method is based on exchanging
information between the various departments with complementary expertise, in order to anticipate the projects’ needs
early on and co-ordinate all of the products and systems. Each customer has a dedicated manager at their service to
provide support at all times, anticipate needs and organize resources. This customer-manager relationship is Faiveley’s
pledge of performance and flexibility, ensuring that lead times and costs are kept to a minimum. At the same time, it
creates synergy among the various centres of excellence and production sites likely to be involved in a given project wherever they may be in the world.
FAIVELEY
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ACTIVITY
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2007/2008
07
08
SAFETY
Making Security
a Priority
In all areas of security, from managing energy to processing images and sound,
from on-board systems to platform doors and gates, Faiveley stands out thanks
to its wide expertise and its capacity to innovate; It’s a world leader for these
products and systems. This year the Group has, once again, progressed in all of
its markets.
FAIVELEY
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ACTIVITY
REPORT
200,000 doors in service
around the world
Business surged by 21% for on-board doors,
which continued to experience strong organic
growth. In both France and China, major
contracts have been signed in the High Speed
market. Throughout the world, Faiveley is
profiting from the growing use of metros, and the
Group was selected by Bombardier for the Delhi
Metro and by Alstom for the Istanbul metro.
The Group has also been successful in Spain
for its regional intercity and CIVIA 3 trains, and in
France for the SNCF’s TER and AGC trains. The
technological added value of Faiveley’s
equipment is often what makes the difference. A
new high-speed door, which can withstand 9,000
Pascals of pressure, has a highly placed
mechanism that allows both inflatable and static
seals to be installed on the frame. Installation
time has thus been slashed by 50%. Another
innovation is the extra flat step for regional trains,
which features integrated passenger-detection
functions.
Reinforced production facilities
to respond to demand
Faiveley acquired ESPAS in 2007, adding its
know-how to the Group’s offering which is unique
in the field of door control panels. This skill set
enlarges a production capacity that boasts five
production sites across the world in France,
Spain, the United States, Brazil and China. 600
specialists work in door manufacturing. The
Shanghai centre where the Group has made
major investments in order to produce at lower
costs, counts 100 employees, including 17
engineers, and boasts an ultramodern 6,000 m2
factory space.
Thanks to the standardization of its range of
operators and important engineering resources
throughout the world, Faiveley is able to adapt its
systems to fit each one of its customer’s needs.
This key business advantage has allowed the
Group to strengthen its market share in Western
Europe, extend its activity in Asia, the Americas,
and Turkey, and to enter the Eastern European
market.
Complete solutions for energy
capture and control
Faiveley pantographs fit the needs of any constructor,
anywhere in the world. This year, the principal car
builders have chosen Faiveley’s pantographs for the NAT
project in the Paris region, the Istanbul and New Delhi
metros, for Alstom’s new generation electric multiple
units and for those in Lithuania. Bringing together its
know-how in the field of energy capture – proven by the
world speed record, performed with a CX Faiveley
pantograph (574.8 km/h) – and energy conversion, the
Group has reinforced its presence in the North American
market with an important contract for General Electric
locomotives. Faiveley continued to penetrate the Central
and Eastern European market by supplying
electromechanical products and systems to the railways
in Slovakia, Poland, Czech Republic and other Baltic
countries.
Making strides in innovation
to reach new markets
For the last two years, Faiveley has been investing
heavily to develop and perfect equipment specially
adapted to withstand low temperatures for the Russian
market (-50°C). The first contracts for such equipment
were signed in Saint Petersburg in 2007. The Group’s
expertise, combined with the newly enlarged production
capacity it gained with the acquisition of Lekov in the
Czech Republic, means it can maintain its technological
edge while scaling back costs. In order to bring added
value to its clients, Faiveley now proposed its ‘Pegase’
solution, which reduces the space required on the roof
by half. This approach enables the aero-acoustic
performance of high speed trains to be significantly
improved.
Faiveley manufactured its first pantograph on American
soil, in order to improve customer proximity.
2007/2008
09
10
SAFETY
“
Our greatest
accomplishment this year has been
our execution of Beijing’s
Olympic metro line 10,
which required the installation of
1,700 platform screen doors
in under 18 months.”
Ulysse Wutz,
Director
“Platform Doors & Gates”
The world leader in platform screen doors
Designing and manufacturing platform screen
doors requires similar skills to those needed to
produce on-board access doors. Consequently,
Faiveley accompanies its customers to install
platform screen doors to provide more safety and
comfort than ever before. In 2007, Faiveley
decided to develop a dedicated team of over 150
staff members to meet growing demands on the
international market. The majority are present in
Asia, where Faiveley has five sites in Hong Kong,
Shanghaï, Beijing, Guangzhou and Bangkok.
Although the Asian market is the most significant
(all new metro lines are being systematically
equipped), the Group is pursuing an offensive
strategy across all continents. Its industrial
presence in France (Saint Denis and Tours) and in
Spain (Tarragona) allows the company to respond
to all calls for tender from Europe, South America
to the Middle East.
No more accidents and many more
advantages
A platform screen door is the perfect answer to
safety concerns because it renders accidents
impossible and means that lines can be operated
without interruption. The train station environment
is cleaner and the passenger’s perception of
travelling is changing. In addition, the platform
can accommodate more passengers. Rising from
the ground to the ceiling, Faiveley’s platform
screen doors isolate the platform, allowing fresh
air to circulate and thus reducing heating and air
conditioning costs. These considerable
advantages explain their worldwide success.
Faiveley has won two new
contracts in continental China, a
fifth contract in Shanghai and a
first contract in Sichuan for the
Chengdu subway system. In
Europe, the addition of a second
contract for Seville’s light rail
reinforces its leading position in
the Iberian peninsula. Despite
complex geographical challenges,
the successfully installed hillside
subway stations in Lausanne will
be inaugurated in September
2008, indicating what’s yet to
come. Thanks to a targetted
marketing and business plan
based on a wide offering that
covers all the markets (light and
heavy rail, high speed trains,
platform screen doors, automatic
platform gates and tramways with
or without drivers), Faiveley has
taken a significant leap ahead of
the competition and intends to
maintain its position.
A complete offer for on-board
electronics’ systems
In 2007, Faiveley extended its
offering in electronic products
through two major acquisitions:
ESPAS, which produces safety
equipment, dynamic line maps,
and automatic station
announcement systems and
Integrian Australia, formerly
Innovonics, which develop onboard passenger information
systems and audio
communications with integrated
video surveillance. With these
additions to the Group, Faiveley
has propelled itself to the cutting
edge of the field globally. These
acquisitions mean the Group now
has three centres of excellence
entirely dedicated to on-board
electronics, two in France, in La
Ville-aux-Dames and Montlouissur-Loire (Touraine region); and
one in Melbourne, Australia. The
latter is a strategic site for growth
in the Asia-Pacific region and for
deploying Faiveley’s new
passenger information activity.
Perfectly adapted products
for the railway environment
Railways are Faiveley’s specialty,
and the Group’s high-level
expertise is essential in a highly
specialized domain where
catenaries make electrical and
electromagnetic fields critical. Its
electronic driver aid systems
(speed measurement, driver
vigilance devices, black boxes,
signal readers and other related
automatic security devices), video
surveillance systems (on-board
and exterior-mounted cameras),
and passenger information
systems (audio and video) are all
designed to withstand even the
harshest conditions.
In order to benefit from the most
advanced technologies, systems
are optimized on a continual
basis. The XEBRA video recorder,
FAIVELEY
which is used on many buses and tramways, is
now available in an MPEG4 version (compressed
format). It may soon be coupled with a fireproof
black box capable of recording the tracks and
signals for the driver, but also for recording inside
buses and trams in case of arson. Following the
testing process, this new product, dubbed
XEFIRE is being industrialized, and should go on
the market in July 2008. The new on-board
signal reader, updated by ESPAS, now reads,
decodes and processes signal information in a
secured format. For example, it can inform a train
with the required level of security on which side
of the next platform it will arrive. A first order was
taken in France for new electrical multiple units
for the Paris Region, and numerous applications
are possible for networks equipped with this type
of signal. The constructor EDI Rail has adopted
the latest driver vigilance system for the new
generation of double deck train sets in the
Sydney network. Katium systems, for their part,
have been optimized this year to make them
even more reliable and easy to maintain and they
have already been selected by SNCB, the
Belgian rail network, to replace the auxiliary
converters on its electrical multiple units.
This capacity to innovate has allowed Faiveley to
more than double orders compared to the
previous financial year (€75 million). Major orders
include new NAT electrical multiple units in the
Paris region for Bombardier; KTX2 high speed
train sets for Hyundaï-Rotem; the Véolia bus
networks in the Paris region; and the Kéolis bus
network in Lyons, Amiens, Calais and Le Mans.
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ACTIVITY
REPORT
2007/2008
11
12
CONTROL
Combining
Performance & Reliability
Faiveley’s expertise in braking
and coupler systems means
it can provide a complete
offering. Solutions are
customer driven and boast
high added value along with
increased performance,
safety and comfort. Faiveley
also provides maintenance
throughout its systems’
life-cycles.
Strategic repositioning
and a larger product range
In response to high demand across all continents,
Faiveley has bolstered its position in the brakes and
couplers field by reinforcing its industrial capacities
and widening its product offering. Faiveley is present
in 5 market segments, high speed market,
locomotives, mass transit (metro), Light Railway
Vehicles (LRV) and freight cars.
Faiveley is a technical leader in high speed braking
thanks to the performance of its systems. Our
Eurotrol (Electronic Brake Valves) is widely accepted
by Alstom, Bombardier and Siemens as the market
reference for locomotives worldwide from Europe
through to the Middle East and Asia. Recent
successes in Budapest, Istanbul and in Shanghai
prove that Faiveley has set a new industry standard
with its EPAC (Electro-Pneumatic Brake Control)
solution for the mass transit market, which is easy to
FAIVELEY
install, innovative and cost competitive. In the Light Railway
Vehicule (LRV) segment, Faiveley has again brought a new
generation and easy to install system to the market. The freight
market has doubled over the last few years, showing excellent
opportunities for Faiveley who has signed a number of major
contracts over the year.
Faiveley grows in China
Faiveley is determined to be a leader on the Asian market and
is strengthening its presence there through strategic
acquisitions. The Group bolstered its position in the couplers
market through the creation of a joint venture with Datong. The
acquisition of Shi Jia Zhuang Jia Xiang Precision Machinery
Company, Ltd., which is specialized in railway compressors,
has catapulted the Group to the highest level of expertise and
engineering in this field. These new businesses bring important
growth capacity to Faiveley, not only for the Chinese market
but also worldwide. Faiveley has recently been awarded a
strategic brake contract for the Shanghai metro system.
Faiveley increases
market share in India
Faiveley is the leading supplier in the Indian railway brake and
coupler market; a market which is growing quickly. Many Indian
cities are planning new metro systems and Faiveley has
inaugurated its new factory in the Himachal Pradesh region to
continue supplying innovative solutions.
New contracts in Europe
In 2007, Faiveley clinched major brake and couplers’ contracts
in Eastern Europe, a highly robust market, including the metro
lines in Budapest and Istanbul. Faiveley is delivering couplers
for Siemens for Velaro Russia, Citytrain and Railjet. In the
United Kingdom, Faiveley was selected to equip Hitachi highspeed trains. These new contracts continue to strengthen
Faiveley’s position in Europe, where extensive growth is
expected in the years to come.
Outlook for the future
Faiveley provides a broad range of innovations within the
brakes and couplers field. New oil free solutions in the
compressor area and new modular braking systems will be
introduced in the year to come. The growing markets of India,
China, the US and Russia will provide new opportunities for
Faiveley’s state of the art solutions.
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ACTIVITY
REPORT
2007/2008
13
14
COMFORT
Improving
the Quality of life
With five dedicated production
centREs and 100 highly qualified
engineers and technicians,
Faiveley is the world’s global
reference for railway air
conditioning systems. The Group
has over 30 years’ experience in
the field, allowing it to
constantly perfect its
solutions, and to adapt them to
any type of rolling stock.
Standardisation and localisation
keys to customer satisfaction
Faiveley’s air conditioning systems are known throughout
the world for their remarkable reliability, their operational
performance and their ease of maintenance - true technical
prowess, given that producing this kind of equipment requires
multiple skill sets in complex fields like thermodynamics,
mechanics, ventilation, acoustics, electrical engineering
and electronics.
Faiveley’s strength lies in its international production network,
which assures customers all over the world that they will receive
personalized support in line with their business needs.
In addition to sites in Leipzig (Germany), Neuville (France),
Shanghai (China), Sao Paulo (Brazil) and Philadelphia (USA),
the Pilzen site in the Czech Republic was enlarged in 2007.
This investment will allow the Group to respond to robust
European demand with an especially competitive offer. The
Shanghai site, for its part, has been named global centre of
excellence for the design and manufacture of air conditioning
systems for metros. This was a logical choice, given the volume
and growth of the Chinese market, and will mean components
FAIVELEY
can be standardized. Faiveley is well aware of the importance of proximity
to its customers and takes a proactive stance when it comes to founding
companies with local actors. In Israel, for example, a partnership created
in 2007 gives systems produced on-site an identical quality guarantee.
This approach offers another competitive advantage in engineering. Faiveley
is the market’s leader, and can provide different design types and adapt its
systems to any standards. Its complete mastery of air conditioning allows
it to design, test, produce and deliver turnkey solutions of the highest quality,
on time.
Loyal customers
new opportunities
Results for air conditioning were outstanding in 2007-2008, with
sales rising by 20%. In spite of the highly competitive market, orders were
brisk. A number of major orders were made in spring 2007 for delivery
over the financial year.
In China, where Faiveley continues to strengthen its position as number one,
the Group was selected by the Chinese metro manufacturer CBRC for lines
7 and 9 of Shanghai’s Bombardier metro, as well as for the extension of the
Bombardier Sifang EMU250 train. Coming as the third consecutive order
from the Ministry of Railways, it is excellent proof of the final customer’s
satisfaction. The Chinese market’s vigorous growth is a superb opportunity
for Faiveley, which is the only supplier with a presence in all segments:
High Speed Trains, Intercity trains, Metros and Locomotives. It is also
a chance to enter the market in other Asian countries. This year, the Group
made a successful debut on the Korean market, with a first delivery of air
conditioning systems for regional and suburban trains.
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ACTIVITY
REPORT
2007/2008
15
Active participation
in programs for the future
In Europe, Bombardier signed an option
for 161 AGC trains (motor ventilation and air
conditioning). Alstom has placed new orders
for Coradia trains in Germany and Sweden;
Siemens - with whom work on standardization
continues (NAIDA project) - also chose Faiveley
for Desiro regional train in England. And last but
not least, a number of major contracts have been
signed in Turkey (Istanbul Metro), Greece and
Switzerland.
These are all promising successes and proof
of the quality and competitive edge that Faiveley
offers. The Group is set on maintaining its
privileged position in Europe, while continuing
to pursue expansion in emerging markets
(particularly China and India) and in the United
States – for new projects as well as renovations.
“
Passenger
wellbeing is a crucial
business asset.
Today, in a new or
modernized train,
quality air conditioning,
is a must.”
Marc Jammot,
Air Conditioning
Division Director
16
SERVICE
Operating for 30 years…
50 years Guaranteed
Reliability
Faiveley believes that customer service is
more than just distributing products and
spare parts. It requires specific skills and
the Group brings technical added value,
over and above just logistics. This is an
activity that emphasizes proximity and
reactivity to customers in order to respond
effectively to their needs and above all,
anticipate them.
Customer Service sales:
225 million euros (+10%)
160 sales engineers around the world
A range of tailored services
Customer Service supplies certified original
spare parts for the entire range of Faiveley
products as well as disc brakes. It also offers
numerous engineering solutions that help
optimize rolling stock. New private operators,
notably freight operators, require a wide range of
services that cater to their entire network of
operation. At the same time, public operators are
also seeking reliable partnerships. Faiveley
creates personalized services for every situation,
from maintenance and repair to training to 24/7
support, either on site or online. Every customer’s
case will be handled by a dedicated
representative.
FAIVELEY
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ACTIVITY
REPORT
2007/2008
17
Reasonably-priced quality and profit-generating expertise
Despite the extremely high and continually rising level of competition in the
discs market, Faiveley has been able to maintain its market share. Our
customers recognize the reliability of the original spare parts. At the same
time, the Group is developing its offering of services and has set up a team
of six engineers as part of its new strategy. These major business efforts
have propelled the services activity sector into double-digit growth. Since
the liberalization of the European railway market, both private and public
operators are increasingly focused on operation management, which opens
up new opportunities for equipment suppliers. By lowering maintenance
costs and increasing the availability of rolling stock, Faiveley ensures that
these sectors see growth in their operating margins.
The advantages of predictive maintenance
Faiveley has put into place a system of predictive maintenance that is much
more effective than preventative maintenance (e.g., weekly system checkups in depot) and corrective maintenance (client-requested intervention). It
allows for remote surveillance of system conditions and detection of even
the slightest sign of disrepair. The chosen intelligence system, Teldis, is one
of Customer Service’s most innovative offerings and is a basic feature of all
new equipment and may also be installed on existing equipment.
A market at the height of expansion
Although the latest and most sophisticated equipment obviously require a
high level of maintenance expertise, Faiveley also considers it essential to
update older equipment. It fulfils operators’ needs to modernize their
equipment (whose average life span is above 30 years), by providing a
better level of comfort, safety and reliability for passengers and improved
equipment availability. In 2007 Faiveley won a €15 million contract in France
to replace traditional compressors with oil-free compressors (TGV
Southeast).
In order to respond to rising demand, Customer Service has adopted new
practices. Faiveley has implemented the “Moving Forward” ERP program,
which aims at optimizing processes, the level of internal and external
performance, and the service rate for spare parts, while remaining engaged
in its Supply Chain activity. The company intends to maintain its leading
position in the strategic market segment.
HIGH-PERFORMANCE
BRAKE SYSTEMS
Traditional systems (organic or cast iron) are no longer
able to handle high-speed trains and intense or frequent
braking. Sintered metal brake pads made of carbon alloy
are distinctly superior. They optimize the friction coefficient
and also reduce excessive heating, wear and tear and
noise level. Another advantage is that the brake maintains
its high performance under all conditions. Since its
acquisition in 2008 of Carbone Lorraine’s sintered brake
pads division, Faiveley now not only offers disc brakes, but
also high-performing brake equipment in general
(systems, discs, brake pads). Whether in the original
equipment market or aftermarket, Customer Service is
able to partially or completely optimize a train’s brake
system.
18
HUMAN
RESOURCES
Making
progress together
Faiveley, originally a French company, has
become a global group, in just a few years.
In line with its external growth and its
international expansion, the Group has
entirely restructured its Human Resources
department, with a focus on management
responsibility and local recruiting.
Communication: a tool for performance
To optimize our workforce, track skills and
strengths, and to detect potential, Human
Resources Management has been reinforced at
the highest levels, and systematic exchanges
amongst the Group’s 20 managers have been
put in place. Evaluation sheets allow
management to keep track of individual skills,
attitudes, and performance, and they have been
systematized in order to better determine
opportunities for improvement and to prepare
adapted training programs. This annual meeting
is also a place for people to express their
personal desires in terms of career development
or professional mobility.
Global skills network
75% of the Group’s 4,000 employees work outside of France, on every
continent. Human Resources management’s wide-ranging key intent is to
ensure that the Group’s vision extends to the entire workforce through a
local HR network. Great effort was made this year to establish a more
consistent, unified management style, with synchronized communication
tools to facilitate exchange between employees, internal mobility, and
personal responsibility in management. The choice to nominate a single HR
manager per site embodies our intent to assure that work is carried out
uniformly throughout the Group. Across the world, Faiveley’s Human
Resources directors have now all become autonomous local managers.
They all have an excellent command of the English language and are in
constant communication with the headquarters in Saint Denis, which is
expanding synergies and encouraging the sharing of good practices.
Information circulates on all levels
The Group is constantly evolving and works hard
to keep employees informed. The company
newsletter, One Team One Voice, is published in
four languages and may be downloaded from the
company intranet. It reports news from Faiveley’s
economic, technological and social fronts to the
whole workforce. The implementation of the
European Works Council has facilitated relations
between Management and European labour
representatives, providing the latter with full
transparency and access to all Group results and
projects twice yearly.
“
The Human
Resources’
Department is in
charge of the
Group’s biggest
budget: its workforce.
FAIVELEY
-
ACTIVITY
REPORT
2007/2008
19
Worldwide presence
Optimizing budgets, as
well as ensuring that the
right person is doing the
right job, at the right
time, in the right place
are vital tasks.”
Helen Potter-Balandrau,
Group Human Resources Director
4,000 employees
55% engineers
75% employed
outside of France
• 1 SITE IN NORTH AMERICA, • 1 SITE IN SOUTH AMERICA,
•• 24 SITES IN EUROPE, • 12 SITES IN ASIA AND • 2 SITES IN OCEANIA
NORTH
AMERICA
• Faiveley Transport USA
Exton - USA
SOUTH
AMERICA
Training to win
Centers of excellence are located in Europe,
in order to reap the benefits of competitive
production and engineering resources where
our customers need them.
Our global status requires major training
resources and a number of programs have been
launched: outside of France, European engineers
and sales experts come on-site to share their
expertise, and in France, colleagues from across
the world come together to take part in one to six
month long continuing education programs. All of
the Group’s employees are invited to take English
courses to optimize the Group’s functioning on
an international level.
Rewarding results and sharing
the benefits of growth
Through our Bonus System, bonuses are
calculated 60% on personal goals and 40% on
company or Group goals, depending on the
country and its laws. In 2008, the system was
extended to all management and sales
personnel. Faiveley is a global company rooted in
human values and provides engineers with the
opportunity to express their creativity and take full
personal responsibility.
• Faiveley Transport
do Brasil
Sao Paulo - Brazil
NORTHERN
EUROPE
• Faiveley S.A.
(headquarters)
Saint-Denis France
• Faiveley Transport
Saint-Denis - France
• Faiveley Transport
Saint-Pierre-des-Corps - France
• Faiveley Transport
La-Ville-aux-Dames - France
• Faiveley Transport Amiens
Amiens - France
• Faiveley Transport NSF
Lille - France
• Espas
Montlouis-sur-Loire - France
• Faiveley Transport
Gennevilliers
Gennevilliers - France
• Faiveley Transport Witten
Witten - Germany
• Faiveley Transport
Leipzig KG
Schkeuditz - Germany
• Nowe
Elze - Germany
• Faiveley Transport
Birkenhead
Birkenhead - UK
• Faiveley Transport
Tamworth
Tamworth - UK
• Faiveley Transport Nordic
AB
Landskrona - Sweden
• Faiveley Transport
Belgium
Zaventem - Belgium
SOUTHERN
EUROPE
• Faiveley Transport
Iberica SA
Tarragone - Spain
• Faiveley Transport
Iberica SA
Madrid - Spain
• Sab Iberica
Madrid - Spain
• Faiveley Transport Verona
Bussolengo - Italy
• Faiveley Transport
Piossasco
Piossasco - Italy
EASTERN
EUROPE
• Faiveley Transport
Polska z.o.o.
Poznan - Poland
• Faiveley Transport Pilzen
s.r.o.
Pilzen - Czech Republic
• Faiveley Transport
Tremosnice s.r.o.
Tremosnice - Czech
Republic
• Lekov a.s.
Blovice - Czech Republic
ASIA
• Shanghai Faiveley Railway
Technology Co. Ltd.
Shanghai - China
• Faiveley Transport Metro
Technology
Shanghai - China
• Faiveley Transport Far East
Hong Kong - China
• Faiveley Transport Beijing
Beijing - China
• Qingdao Faiveley sri
Qingdao - China
• Datong Faiveley Coupler
System Co. Ltd
Datong City - China
• Shijiazhuang Jiaxiang
Precision Machinery Co. Ltd
Shijiazhuang - China
• Faiveley Transport India
Tamil Nadu - India
• Faiveley Transport India
Shimla-Himachal Pradesh India
• Faiveley Transport Korea
Seoul - South Korea
• Faiveley Transport Bangkok
Bangkok - Thailand
• Faiveley Transport Iran
Teheran - Iran
OCEANIA
• Faiveley Transport Australia
Seven Hills - Australia
• Faiveley Transport Australia
Melbourne - Australia
20
RESEARCH
AND
DEVELOPMENT
Innovation and
Technology
To optimize product functionality, increase
reliability and lower costs, Faiveley has
intensified its research and development
efforts in the fields of technical
standardization and indigenization (local
engineering and production). By perfecting
more compact systems that include the full
range of functions, the Group is able to
provide simple, easily adaptable solutions.
Highly sophisticated products
custom made
Faiveley’s technical department is organized into
two departments that collaborate very closely
with one another: the research department
concentrates on designing products and
subsystems, and the engineering department
builds complete systems based on customers’
specific needs. The compatibility of these two
activities means that products can be customized
– even complex ones like doors, which include
five sub-systems: mechanics, locking systems,
door leaf, electronic commands and
waterproofing. Prototypes are built, tested and
perfected with the greatest possible rigor.
FAIVELEY
-
ACTIVITY
REPORT
2007/2008
21
“
The synergy between
research and engineering
A power tool for innovation
Faiveley has 7 centres of excellence around the
world: Saint-Pierre-des-Corps (France), with the
support of Tarragone (Spain) for doors; Amiens
(France), Piossasco (Italy), Witten (Germany) with
the support of Lanskrona for brakes; Leipzig
(Germany) with the support of Plzen (Czech
Republic) for air conditioning; La-Ville-aux-Dames
(France) for electronics systems; and Blovice
(Czech Republic) for pantographs and
electromechanical systems. In addition, the
Shanghai centre (China) designs platform screen
doors with support from Saint Pierre des Corps.
Our engineering teams are present for our
customers throughout the world (Europe, Asia,
North and South America, etc). Their mission is
not only to design systems that respond to
railway constructors’ and operators’ demands,
but to establish related tools, such as maps, user
instructions and maintenance manuals.
Cutting edge braking to go
The C3 standard brake rigging, which went into
service in 2008, covers 80% of the market’s
typical needs. It is lightweight (67 kg, or 150 lbs
with parking brake, as opposed to 116 kg, or
255 lbs for a classic brake rigging) and compact
(345 cm, or 11 feet long instead of 435 cm, or
14 feet), it fits easily between the pneumatic drive
and the brake discs, and it currently offers the
optimal compromise between size and weight
available on the market (for example, a car
equipped with two braking units per wheel shaft).
Other advantages include simplified management
of replacement parts and maintenance and
greater life span.
The new EPAC Lite electro-pneumatic brake
control, which includes all electronic and
pneumatic functions, guarantees the pneumatic
actuator drive for an entire car. It is compact,
economical, easy to install close to bogies, and
has already met with great commercial success
with Alstom. The Buran oil free air compressor is
another innovation: no more oil leaks, pollution
risk or repeated servicing. Time between
maintenance is doubled compared to a classic
compressor. Marketed in 2007 with a 1,000 l/mn
capacity, the Buran was adapted for locomotives
and high speed trains in 2008, and now boasts
capacities of 1,400 to 3,000 l/mn.
enables us to design perfectly
functional products that precisely
meet our customers’ business
objectives.”
Dario Barberis,
Group R&D
Director
A new generation of pantographs
Faiveley contributed to the world record for rail
speed (574.8 km/h) with an optimized CX
pantograph. The PEGASE system includes all
components in a single frame. This hallmark
concept provides a complete, economical
solution, reducing the space taken up by the
pantograph on the roof, and may be adapted
to numerous circumstances, including
high-speed trains, locomotives, passenger
trains, tramways and heavy-duty metros
(suburban rail systems).
Faiveley invents individual
energy meters
As networks open up to competition, each train
may soon have its own energy bills. Individual
meter systems, developed and patented by
Faiveley, will be marketed in 2008.
They are usable on either new or renovated
equipment, and may be integrated into
the PEGASE system.
Doors take flight
Faiveley’s latest door designs, conceived for
High-Speed Trains, are wider, yet lighter and
resistant to high-pressure torque. They are
already a reference for reliability and passenger
comfort.
The Group is continuing research into the use
of new composite materials to perfect even
better performing doors.
7 centres of excellence
in the world
More than 600 employees in its technical
department, including more than
100 engineers focusing exclusively on
advanced research
22
FAIVELEY
AND
ITS
SHAREHOLDERS
Strong momentum
for growth
and performance
Responsible corporate governance
One of Faiveley’s core priorities is carrying out its
business in complete transparence, adhering to a
strict code of professional ethics, and in full
compliance with laws, regulations and best
market practices. It is the Group’s intent that
shareholders benefit from company growth and
be fully involved in its plans for the future. Beyond
respecting legal and regulatory provisions,
Faiveley S.A.’s Management Board and
Supervisory Board are committed to acting in the
best interest of all of the Group’s stakeholders,
shareholders, banks, customers, suppliers and
staff alike. Members of the Board of Directors
meet monthly in a steering committee. This
approach is used across the Group’s companies,
at all levels and involves every member of the
workforce.
Regular, complete
and accessible information
Faiveley’s activities, as well as results, strategy and growth
outlook, are presented to institutional investors and analysts
at half yearly presentations and phone conferences.
For individual shareholders, presentations are made at the
General Assembly. Events not included in our regular
publications are shared with the public through specific press
releases and through our website. Our website is updated
constantly, and allows users to track changes in Faiveley
share prices and to consult regulated information as defined
by the European Transparency Directive.
Executive Management Committee
From left to right and from top to bottom
Robert Joyeux
Helen Potter-Balandrau
Marc Chocat
Etienne Haumont
Pierre Sainfort
Dario Barberis
Pierre Le Conte
Chairman, CEO
Human Resources Director
Director of Strategy
Chief Financial Officer
Chief Operating Officer
R&D Director
Technical Director
Dethié Sarr Niang
Jean-Claude Roncin
Marc Jammot
Jean-Pierre Guy
Harald Zinggrebe
Erick Descamps
Thomas Feser
IT Director
Industrial Director
Air Conditioning Director
Electronics Director
Doors Director
Customer Services Director
Brakes & Couplers Director
FAIVELEY
Turbulent times for the stock market
■
The stock market took a precipitous downturn
in August 2007, due largely to the lending and
credit crisis in the subprime loan industry, as well
as to rising oil prices and the increase in the value
of the euro. Market instability had greater impact
on mid-cap companies than it did on CAC-40
companies.
Despite this, the Faiveley share finished the year
above the SBF 250 index share.
-
CONTACT INFORMATION
FOR SHAREHOLDERS
■
Faiveley S.A.
Carrefour Pleyel 143 boulevard
Anatole France
F-93285 Saint-Denis - France
Tel.: +33 (0)1 48 13 65 00
Email: [email protected]
■
FAIVELEY
SHARES
■
SHAREHOLDER
STRUCTURE
32.2%
2.8%
■
■
■
Faiveley Family
Internal Control
Float
CODES
AND INDEXES
ISIN:
Reuters:
Bloomberg:
Indexes:
FR0000053142
FAIP.PA
LEY:FP
SBF 250,
CAC MID&SMALL 190
As of March 31, 2008
Number of shares traded: 12 529 585
Share price:
€37,20
Share capitalization:
€466,10 M
65.0%
Change in Share Price
Share
price base
100
120
100
80
60
07
April
May
June
July
Share price base 100
SBF 250 index base 100
st
Augu
mber October
Septe
ary
8
mber ecember
ary 0 Febru
Nove
D
Janu
h
Marc
April
REPORT
2007/2008
FINANCIAL
CALENDAR
• 01/07/08
• 23/07/08
• 17/09/08
• 22/10/08
• 28/11/08
Faiveley was floated on the Second
Marché of the Paris Stock
Exchange in 1994. Group shares
are traded in Compartment B of
Euronext™ Paris’ Eurolist.
■
ACTIVITY
Annual results 2007-2008
First quarter sales 2008-2009
Shareholders’ General Assembly
Interim sales 2008-2009
Interim results 2008-2009
23
24
Legal
structure at March 31, 2008
FAIVELEY
-
ACTIVITY
REPORT
2007/2008
25