Zsolt Harsányi Vice-President of CLIMMAR Hungary

My professional career

Agricultural Mechanical Engineer 1 year at a state enterprise company as a service engineer At 1991 set an own business – AXIÁL Ltd. – as an entrepreneur Member of the MEGFOSZ’s presidency since 1998 Vice-president of CLIMMAR since 2002

1991-2011.

Motto of AXIÁL Ltd.

“Service is more important than profit, profit is not the goal, but the result of service.” (Henry Ford)

OWNER: HARSÁNYI FAMILY

Profile of AXIÁL Ltd.

•

Sale of agricultural and construction machines

•

Supplying spare parts for agricultural and construction machines

•

Repair of agricultural and construction machines

Employee number of AXIÁL 31. 08. 2011

15

premises

550

employees

320

pcs own vehicles

13 million

kms/year

Completeness can be fullfilled only with us

Subsidiary in Hungary More than 200 pcs machines!

ANNUAL RENTAL AGREEMENT!

Our Suppliers

AXIAL’s total turnover of 1991-2010

Source by Axiál

AXIÁL’s turnover in 2010

132,4 m€

Source by Axiál

50 LE< Tractor sales in Hungary related to western brands in 2010

In Hungary: 519 pcs

AXIÁL 26 % 134 pcs

Source: Dr. Nagy Béla SZIE, Gödöllő and by Axiál

pcs Harvester machine sales of Axial In Hungary: 66 pcs 41% 27 pcs

Source by Axiál

Sale of agricultural telescopic loaders in Hungary in 2010 In Hungary: 110 pcs 40 % 44 pcs

Source: Dr. Nagy Béla SZIE, Gödöllő and Axiál

Construction department 2010 20% 40 % TARGET:

• •

PRODUCT RANGE ENLARGEMENT STRENGTHEN OUR POSITION

Used machine situation of 2010 Turnover 16 m € 76 % (729 pcs) domestic sales

Sparepart sales in 2010

68 m€

Dominant market share!

21 451 partners!

Service in the foreground

Party of five

Machine - Spareparts - Service - Financial Services – Machine rentals

A Our foreign subsidiaries

OSIRON

SK UA Szombathely SLO HR YU RO

6 premises 86 employees

Slovakia

1994.

12 premises 83 emloyees

Romania

2003.

Axiál in the agricultural production

2700 ha in Beled

10 300 kgs milk/2010/lactation/700 cows

Axiál in the agricultural production

7000 ha and 2000 sows in Hódmezővásárhely

9 350 kgs milk/2010/lactation/1500 cows

Hungarian Agriculture

2,5 % GDP 4,5 million hectares plough-land 10 million inhabitants 170 000 employees in agriculture of this Gross branch average income in 2010: 21.000,- RUB Foreign trade balance of Hungarian agriculture: + 1-2 billion €/year Territorial financial aid: 170,- €/ha

Hungarian sugar industry

-

1990 12 pcs sugar works

400.000 t sugar/year/86.000 ha

-

2011 1 pc sugar works

100.000 t sugar/year/14.000 ha

Hungarian agricultural machine investments in nominal values 1991-2010

Prognostic Source: Dr. Hajdú József FVM MGI, Gödöllő and by Axiál

pcs 50 LE< Tractor sales in Hungary related to western brands in 2000-2010

Source: Dr. Nagy Béla SZIE, Gödöllő and by Axiál

+ 1-2000 pcs Belarus/year

Harvester machine sales in Hungary 1998-2010

Source: Dr. Nagy Béla SZIE, Gödöllő and by Axiál

Agricultural machine organizations in Hungary

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MACHINE MANUFACTURING : MEGOSZ National Union of Agricultural Machines

-

MACHINE DISTRIBUTION: MEGFOSZ National Union of Agricultural Tools and Machine Distributors

MEGOSZ

Type: Year of formation: labour civil organization 1991 Number of members : 22 businesses Website: www.mezogepgyartok.hu

Official paper of the Union:

MEGOSZ

Aims of the organization: - professional representation of interests - Increasing the social judgement of research, development, manufacturing and distribution of agricultural machine branch in its all verticum - Harmonizing of interests

MEGFOSZ

Type: labour civil organization Year of formation: 1999.

Number of members: 65 businesses The three biggest businesses: 2/3 parts of circulation

Tractor statistics made by MEGFOSZ

It gived by the members: - type of the machine - postal code - HP

Situation in Hungary

-

Supplying members with information Exhibiton organize Lobby Our aim is uppositioning of Hungarian agricultural machine service

We are learning from CLIMMAR

The next annual congress of CLIMMAR is in autumn

Future of the agricultural motorization Increasing power

Future of the agricultural motorization RTK – GPS

Future of the agricultural motorization Engine emission change Future of the mechanization: TIER 4 engine

Future of the agricultural motorization SCR

Future of the agricultural motorization Elektronics To operate the advances in technology

Concentration

The 5 biggest manufacturer give 90 %of harvesters and 80 % of tractors produced in the World

Future of the agricultural motorization It needs more and more educated operators and service

CLIMMAR is an international organization organizing national associations which are engaged in agricultural motorization

Allemagne Autriche Belgique Danemark

Espagne

Finlande France

Grèce

Hongrie Suisse

Source: Climmar Congress Beijing 2008 by Gilbert Daverdisse

CLIMMAR was created in 1953

Irlande Italie Luxembourg Pays Bas Portugal Royaume Uni Suède

Contacts with

Tchéquie USA

Source: Climmar Congress Cracow 2010.

Model D CLIMMAR The European association of Agriculture and Garden-Machinery Dealers and Service companies:

figures & ratios for average dealer and member 2007/08

Members Contact No Contact

CLIMMAR OBJECTIVES



to make the profession known



to defend our interests



to inform the members



to quote the second-hand machines



to train the managers



to negociate with unions and management



to promote the dealerships



to let our messages be known



Involvement in training

Dealers and Reparateurs of Agricultural Machinery in Europe 2008: 23.300 Companies DK 0,7% E 17,2% D 16,7% CZ 1,5% CH 3,6% B 1,7% A 2,4% S 0,6% Source: Climmar Congress Cracow 2010.

Model D F 19,3% PL 11,2% P 2,8% GB 4,3% NL HUN 4,1% I 9,4% L 0,1% IRL 1,2% 3,0% LV 0,2%

Employees in agriculture-machinery companies (dealers and reparateurs) in Europe 2008: 200.800 F 17,4% E 15,4% GB 10,0% HUN 2,3% DK 1,7% D 16,4% CZ 0,3% CH 3,3% Source: Climmar Congress Cracow 2010.

Model D B S 0,6% A 1,7% 2,1% PL 8,2% NL P 2,2% 2,5% I IRL 13,9% 1,5% L 0,1%

National turnover of the agriculture machinery companies (dealers and reparateurs) in Europe 2007: 36.2oo.ooo.ooo EURO F 18,0% GB 20,7% E 11,1% DK 3,9% D 14,9% Source: Climmar Congress Cracow 2010.

Model D CZ 0,1% CH 2,0% B 1,7% A 2,0% S 2,3% PL 5,5% P 4,0% NL 4,8% L 0,2% IRL 0,8% HUN 1,2% I 6,9%

Source: Climmar Congress Cracow 2010.

Model D

Employees per company / Beschäftigte pro Betrieb 2007

500 450 400 350 300 250 200 150 100 50 0 Source: Climmar Congress Cracow 2010.

Model D

Turnover per employee / Umsatz pro Beschäftigtem 2007

Brut and net wages of an average master / Brutto- und Nettojahresgehalt von Meistern 2008

60000 50000 40000 30000 20000 10000 0 A B CH CZ D DK F GB I Nettogehalt 22379 37270 19576 25500 25887 27000 29400 Bruttogehalt 34890 43062 43847 14000 33752 56100 32359 36000 41100 IRL L NL 34500 P PL S CLIMM AR 12231 18708 24217 17955 28903 34706 Source: Climmar Congress Cracow 2010.

Model D

Invoice hour tariff of workers and masters / Verrechnungssätze von Gesellen und Meistern 2008

70 60 50 40 30 20 10 0 Tarif worker Tarif master A 46 52 Source: Climmar Congress Cracow 2010.

Model D B 32 43 CH 55 60 D 42,7 46,1 DK 52,8 58,4 F 35 45 GB 54 54 I 35 45 IRL 40 50 L 41 42,5 NL 45 45 S 56 62 CLIMMAR 43 48,2

The World 2008

Data of German HAG Congress:

German hourly rate of service in the agriculture:

average: 41,9 €/h

(between 38,0 – 45,5 €/h)

-

German hourly rate of service in the car industry:

average: 56,5 €/h

(between 49,75 – 76,00 €/h)

Wage of workers and salesmen / Gehälter in Lager und Verkauf 2008

70000 60000 50000 40000 30000 20000 10000 0 A B CH CZ D Parts-man 26399 24117 salesman (basic money) 13440 salesmen (rest) 1% Umsatz 0,3% Source: Climmar Congress Cracow 2010.

Model D 39234 62000 13200 18200 20-30% 11% Marge 29295 29515 10% DK F GB I NL 42780 50880 21271 25200 11200 30000 30000 25500 25500 15% marge 1-1,5% 27800 32100 PL 12272 11400 0,8% S CLIMMAR 27742 26551 28704

2300 1800 1300

A-dealers: Turnover per machinery-salesman / A-Händler: Umsatz pro Maschinenverkäufer 2007

800 300 Source: Climmar Congress Cracow 2010.

Model D * means not A-dealers, but average dealers

400 300 200 700 600

A-dealers: Turnover per partsman / A-Händler: Umsatz pro Lagerist 2007

500 100 0 Source: Climmar Congress Cracow 2010.

Model D * means not A-dealers, but average dealers

3,5 Depreciations in % of turnover / Anteil Abschreibungen am Umsatz in % 2007 3 1 0,5 2,5 2 1,5 0 A Depreciations Source: Climmar Congress Cracow 2010.

Model D 2,2 CH 1,9 D 2,4 DK (A deal.) 0,8 F (a-deal.) 1,1 GB 0,9 L (A-deal.) 0,5 P 1,3 PL 3,4 CLIMMAR 1,6

80 70 60 50 40 Personalcosts in % of turnover and margin / Personalkostenanteil an Umsatz und Spanne in % 2007 30 20 10 0 A CH of turnover 16,1 of margin 76,2 Source: Climmar Congress Cracow 2010.

Model D 35,1 64 D 16,2 59,5 DK (A-deal.) F (A-deal.) GB (A-deal.) L (A-deal.) 11,4 61,8 11,8 55,9 6,7 53,4 12,4 57,7 P 8,9 44,4 PL (A-deal.) 4,3 19,2 CLIMMAR 10 51

80 70 60 50 20 10 40 30 0 A Spanne / Besch.

35,8 Source: Climmar Congress Cracow 2010.

Model D CH 53,8 Margin per employee / Wert Spanne pro Beschäftigtem 2007 D 44,5 F (A-deal.) 69,1 GB 46,8 L (A-deal.) 74,3

7 6 5 4 3 2

turnver rentability and -rate / Umsatzrentabilität und Umsatzrate (%) 2007

(= Ergebnis pro Umsatz und pro CF / percentage of result and CF of turnover) 1 0 A % Ergebnis am Umsatz 0,9 % CF am Umsatz 2,9 Source: Climmar Congress Cracow 2010.

Model D B 6,3 CH 3,6 5,5 D 2,7 5,1 DK (A deal.) 1 1 F (A-deal.) 3,3 4,4 GB (A deal.) 2,9 3,8 L (A-deal.) PL (A-deal.) CLIMMAR 2,1 2,7 3,6 7 2,5 3,9

35 30 25 20 15 10 Own Capital Quota / Eigenkapitalquote (%) 5 0 % A 22 Source: Climmar Congress Cracow 2010.

Model D CH 30 D 31,7 DK (A-deal.) 9,5 I (A-deal.) 30 L (A-deal.) 20 P 15 CLIMMAR 21,5

EUROPEAN DEALERS APPRECIATE THEIR TRACTOR OPERATORS enquiry 2010

5 COUNTRIES 947 ANSWERS

• DENMARK • GERMANY • FRANCE • UNITED KINGDOM • SWITZERLAND • • • • •

120 286 295 133 113

947 ANSWERS

• • • • • • • • • • CASE CLAAS DEUTZ FENDT JOHN DEERE MASSEY FER.

MC CORMICK NEW HOLLAND SAME VALTRA • • • • • • • • • • 9 17 12 12 14 14 0 24 2 16           24 26 43 29 44 35 12 34 17 22           35 35 25 21 44 42 16 41 9 27           11 19 8 12 29 21 9 16 0 8           16 8 17 9 21 13 0 22 7 0           95 105 105 83 152 125 37 137 35 73

Consideration of the dealer’s evaluation

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Representative’s power of ligitation settlements Respect of autonomy Readability and realism of strategie Possibility of negotiating sales objectives Manufacturer-dealer relations Total relation Profitability help Willingness to improve weak points Overall rancking

Consideration of the dealer’s evaluation

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Answers by branch After sales / Guarantees Answers by productions Computer services Advertising and product support The men Procedures and terms of payment Respect of undertaken commitments Training Availlability of managers and directors

One of the evaluations

BRAND RESULTS SEND TO MANUFACTURERS

WHAT CLIMMAR DECIDED

• Each country decides what it publishes for its own results • CLIMMAR does not publish countries results • CLIMMAR publishes only overall results

Suggestion To be multi-faceted

The World has to eat more.

Machine - Spareparts - Service - Financial Services – Machine rentals

Suggestion

- Aspire to full range of machines - Organize good service and finance it - Your service be payed by the customer and by the manufacturer - Reprezent your interest jointly - Contact with Russian manufacturers If you don’t do these it will cost more Our own instance…

This prezentation:

http://www.axial.hu/CLIMMAR

Web side of AXIÁL Ltd.: My e-mail address: My mobile phone: www.axial.hu

[email protected]

00 36 30 9530 324

Zsolt Harsányi Vice-President of CLIMMAR