Built Around You
Franco Fenoglio
Lingotto - November 8 & 9, 2006
New Holland Construction Brand Heritage MISSION: New Holland is a Global Full Liner with a key position in the Construction Equipment market and manufactures Productive, Durable and Safe Equipment in order to support customers to develop their business
VISION: Customer Needs and Profitability are our main drivers, Dealers are our partners and Service is the main driver to build the Customer and Dealer Loyalty and Trust
1876
Lingotto - November 8 & 9, 2006
2006
2
Customer Base and Global Presence Key Customer Segments
NH Position
Contractors
Strong in small landscape contractors in North America and in large general contractors in EU and Latin America
Site Specific
Relevant presence in large quarry and demolition in EU, in Brazil mining and in farm and forestry activity in North and Latin America Significant growth opportunity through dealer rental fleets
Rental
Sales by Region Heavy Equipment LAR 13%
ROW 10%
Light Equipment
NA 32%
LAR 5%
Europe 29% Europe 45%
Lingotto - November 8 & 9, 2006
ROW 8%
NA 57%
3
New Holland Construction: a Full Line Manufacturer 12 Product Families 80 Base Models Over 600 Configurations
PRODUCTIVITY
DURABILITY
SAFETY
Exceed customers’ performance expectations:
Protect customer’s capital investment:
Secure operator safety and respect the environment:
•Consumption efficiency
•Components and systems quality
•Comfort, visibility, stability
•Digging force
•Production and assembly quality
•Energy source diversification
•Cycle time
•Easy maintenance
•Noise reduction
•Dynamic stability
Lingotto - November 8 & 9, 2006
•Consumption efficiency
4
Key Actions for Growth
• Product Portfolio Enhancement • Brand Building • Customer Focus • Distribution Network Development
Lingotto - November 8 & 9, 2006
5
Product Portfolio Enhancement
70% of products renewed and/ or refreshed by 2010
Extensions of key product lines
•SSL new Cab •CHEX reduced fuel consumption •All product lines: increased serviceability
•WL 230B/300B •SSL and CTL 175 •MHEX 1.8T SR
Lingotto - November 8 & 9, 2006
6
Product Enhancement: Crawler Excavators New series Crawler Excavators +15% increased productivity -5% fuel consumption
Productivity per hour (m3/h) NH B128F： H
HITACHI ZX200-3： H/P
210
NH B128F： S
NH B128F： H
207
HITACHI ZX200-3： P
25,4
HITACHI ZX200-3： H/P
193 150
Fuel consumption (l/h)
233
25,7
NH B128F： S
200
21,6
250 3
(m /hr) HITACHI ZX200-3： P
25,9
10
Development of Hybrid Excavator prototype: Reduction of fuel consumption and Co2 emissions by 40% compared with the current model
30
Base mechanism of Hybrid system
Boom cylinder
Arm cylinder Control
Engine
valve Bucket cylinder
Engine assist Hydraulic pump motor & Power generator
回路 圧 油 Travel motor
＋ －
Battery
Lingotto - November 8 & 9, 2006
20
Reduction unit
Electric swing motor
Reduction unit
7
Brand Power
Europe
Awareness – Image – Market Share 105
Caterpillar (11.0%)
Awareness
100 95
Hitachi (4.4%) Komatsu (7.9%)
Bobcat (5.7%)
90
Volvo (9.3%) ‘08
85 80
New Holland (4.3%)
‘07 JCB (13.1%)
‘06
75
‘05
Declic zone
70 7.2
7.4
Source: Research International & Off-Highway
Lingotto - November 8 & 9, 2006
7.6
7.8
8
8.2
8.4
Image
Mkt % 8
Brand Power
Awareness – Image – Market Share
North America
105
Awareness
Caterpillar (22.7%)
100
Bobcat (15.5%) New Holland (5.7%)
95
‘05
90
‘06
‘08 ‘07
John Deere (13.9%) Komatsu (6.5%)
Volvo (3.6%)
85
Declic zone 80 7
7.2
7.4
7.6
7.8
8
8.2
8.4
8.6
8.8
Image
Mkt %
Source: Research International & Off-Highway
Lingotto - November 8 & 9, 2006
9
Brand Building: Exhibition Example
Innovation Area •Hybrid excavator •E 215 LC Multifunction •E 150 Blade Runner
Intermat - Paris
•2,500 sq. meters •13 machines on show •Over 15,000 contacts
Lingotto - November 8 & 9, 2006
10
Brand Building: Press Activity PR Trade Press Activities: •World of Concrete – Las Vegas 40 editors and publishers in attendance at the press conference •Intermat – Paris 60 journalists from all over the world participating at the press conference
Free Editorial Coverage: •300 clips in nine months (Jan-Sep 2006) Lingotto - November 8 & 9, 2006
11
Customer Focus Continue establishing direct relationship with the customers, in partnership with our dealer network • Key Account Meetings & Opinion Leader Visits • Customer events: open days, demos, plant tours, generating thousands of contacts • Customers personally exposed to the top management of New Holland • Customer contacts during new dealer premise opening • Weekly meetings by dealers/locations with customers and potential end-users, held by local management
Lingotto - November 8 & 9, 2006
12
Customer Focus: Services Product Support
Enhance Service and Customer Satisfaction through professional after-market support
Financial Packages
Sustain Dealer growth and support retail customer financing through tailored Financial Solutions
• Service & Maintenance Programs • Extended Warranty Plans • Ad hoc training for parts & technical dealers employees
• Capital Loans • Used Equipment Finance • Rent-toRent/Buy/Sell • Subsidized Leasing
Lingotto - November 8 & 9, 2006
13
Distribution Network Development Increase NH Brand “share of wallet” in NA from current 30-40% to 50-60% by 2010
•Timely and quality product launches •Brand continuity and trust •Product competitiveness
•Dealer Standards execution
Enhance dealer quality
•Dealers personnel training •Uptime customer support •Service excellence programs
Increase territory coverage
•Progressive coverage of high opportunity markets: Middle East, Russia, Asia Pacific •Improved coverage of north of Latin America •Increased density for Light Equipment distribution
Lingotto - November 8 & 9, 2006
14
New Holland Construction Growth Plans by 2010
• Grow revenues at 12% yearly average (+20,000 units)
• Double operating profit percentage on revenues
• Increase market share by 4 pts
Lingotto - November 8 & 9, 2006
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