Professional Documents
Culture Documents
AGRICULTURE MACHINERY
INDUSTRY!
HOW TO MAINTAIN POSITION AS AN IMPORTANT GLOBAL PLAYER IN THE
AGRICULTURE MACHINERY INDUSTRY!
16.02.2015!
ICA-Agricultural Machinery!
1!
Executive summary!
16.02.2015!
ICA-Agricultural Machinery!
2!
Agenda!
2)!
4)!
3)!
Competitive
analysis!
Industry analysis!
?
Scenario !
analysis!
16.02.2015!
2)!
3)!
Industry Analysis
of Kenya!
ICA-Agricultural Machinery!
4)!
3!
16.02.2015!
ICA-Agricultural Machinery!
4!
Definition of Industry!
PESTEL Analysis!
Future Trends!
Millionen!
Population evolution!
10000!
9000!
8000!
7000!
6000!
5000!
4000!
3000!
2000!
1000!
0!
1500!
Chart Title!
+81%!
470
260
Years!
1700!
1900!
2100!
2010
2050
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ICA-Agricultural Machinery!
5!
Definition of Industry!
PESTEL Analysis!
Solutions!
Increase yield!
High quality seeds and
fertilizers can
substantially increase
yield/ha !
Mechanization level in
developing countries is
very low. Mechanization
would increase yield!
Mechanization level
comparison!
(unit of tractor/1000
farmers)!
70-150%!
USA!
German
y!
Brazil!
2010
2050
Future Trends!
1586!
1018!
61!
Africa!
5!
China!
3!
Sources: VDMA, Freedonia, FAO, CIA World Fact Book, Oliver Whyman Analysis!
16.02.2015!
ICA-Agricultural Machinery!
6!
Definition of Industry!
PESTEL Analysis!
Equipment
type!
Harvesting
machines!
Haying
machinery!
Farm
tractors!
Planting &
fertilizing!
Future Trends!
Plow &
cultivating!
Others (incl.
spraying)!
Spare parts
&
attachments!
Example!
Size in $B
(2008)!
30
25
20
15
10
5
0
Farm
Tractors
Harves3ng
Machinery
Others
For easier comparison: A prerequisite for being regarded as a competitor in the analysis is that the
firm at least offers either tractors, harvesting machines or both!
Tractors and Harvesting machines are core products for the largest agricultural machinery companies!
Companies that produce tractors and harvesting machines often have a similar product portfolio!
The two segments counts for almost 45% of the total market in terms of sales (2008)!
Sources: VDMA, Freedonia, FAO, CIA World Fact Book, Oliver Whyman Analysis!
16.02.2015!
ICA-Agricultural Machinery!
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Definition of Industry!
PESTEL Analysis!
Farm Tractors!
Harvesting Machinery!
Planting & Fertilizing!
Haying Machinery!
Plowing & Cultivating!
Others!
Future Trends!
Geographical regions!
60 % Established markets with CAGR 4 % (2009-2012)!
40 % Emerging markets with CAGR 8 % (2009-2012)!
The market size of harvesting machinery is a good indicator
of the level of mechanization!
20 % of total market in Established markets!
5 % of total market in China and India!
China!
Established markets:
60%!
India!
CIS!
Latin
RoW!
America!
Emerging markets
and others: 40%!
Established markets!
Defined as US, Europe & Japan!
Emerging markets!
Defined as BRIC countries (Brazil, Russia, India and
China), Latin America & Africa!
Sources: VDMA, Freedonia, FAO, CIA World Fact Book, Oliver Whyman Analysis!
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ICA-Agricultural Machinery!
8!
PESTEL Drivers!
Farm Cash
Receipts!
Governmental
Support!
Definition of Industry!
PESTEL Analysis!
Future Trends!
Impact on demand!
Established Markets!
Emerging Markets!
Financial Services!
Farm Size!
Fragmented landscape:!
Consolidation still not observable!
Technology &
Environment!
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ICA-Agricultural Machinery!
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Trend!
Definition of Industry!
PESTEL Analysis!
Established markets!
Farmers has yield pressure in order to make a
Larger and
specialized
equipment!
Exhaust
emissions
legislation!
After sales
business!
Future Trends!
Emerging markets!
Not a major driver in the next decades. Customer
needs are very fragmented. Mass market demands
low-end affordable machinery. !
Markets are fragmented and thus the demand for
large and specialized machinery is low. Must
increase machinery level and consolidation before
this will become a future trend!
Still relatively low significance of emission
standards. !
Increasing yield pressure puts pressure on the
parts business. Important with reliable low-end
equipment.!
Sources: VDMA, Freedonia, FAO, CIA World Fact Book, Oliver Whyman Analysis (slide 16 report)!
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ICA-Agricultural Machinery!
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INDUSTRY ANALYSIS!
Overview of Players!
Porters five forces!
16.02.2015!
Intensity of Rivalry!
Bargaining power of buyers !
Bargaining power of suppliers!
Threat of new entrants and substitutes !
ICA-Agricultural Machinery!
11!
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Intensity of rivalry!
ICA-Agricultural Machinery!
Threat of substitutes!
12!
Intensity of rivalry!
Threat of substitutes!
AGCO Corp!
CLAAS!
CNH Global!
Deere & Co!
Kubota Corp!
Mahindra & Mahindra!
SAME Deutz-Fahr!
Other!
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ICA-Agricultural Machinery!
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Intensity of rivalry!
Threat of substitutes!
The global incumbents face competition from adaptive local players in many markets. !
Nevertheless, to which grade a global player is willing to adapt its products to local needs, is highly
dependent on how much that player is willing to give up economies of scale!
Local players!
Global incumbents!
Adaptation!
Proprietary technology!
Knowledge of specific
topologies and farming!
Superior service !
Financing options!
Customer knowledge!
Economies of scale!
A general rule: The smaller the machines, the more intense is the rivalry.!
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ICA-Agricultural Machinery!
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Intensity of rivalry!
USA!
Threat of substitutes!
China!
Well-established firms: Deere, Iseki, Kubota,
Yanmar, CNH, Mahindra & Mahindra!
Other
US market: !
Oligopoly and moderate market growth!
Chinese market: !
Global incumbents compete with local
players!
Sources: Financial reports of all the agricultural machinery industries, Bloomberg, FAO!
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ICA-Agricultural Machinery!
15!
Intensity of rivalry!
Dealer!
Many dealers!
The more low-end
machinery (less
differentiation), the
increased bargaining
power, due to easier
comparison!
No threat of vertical
integration!
Contractor!
Established markets: !
!Low/moderate bargaining power of buyers!
Emerging markets: !
!The financial constraints of farmers lead to
!moderate/high bargaining power of buyers!
Threat of substitutes!
Sources: VDMA, Freedonia, FAO, CIA World Fact Book, Oliver Whyman Analysis!
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ICA-Agricultural Machinery!
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Intensity of rivalry!
Threat of substitutes!
For the high-end segment and specific products, supplier power is high
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ICA-Agricultural Machinery!
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Intensity of rivalry!
Threat of substitutes!
Economies of scale!
New entrant will find it difficult to meet the capital requirements needed to enter and will have
trouble differentiating themselves on price due to economies of scale !
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ICA-Agricultural Machinery!
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Intensity of rivalry!
Switching costs!
No!
38%!
Yes!
62%!
Threat of substitutes!
M&A activities!
New entrants will also have trouble with capturing market share due to network effects and
customer loyalty. If a new entrant is well performing they face the threat of being acquired by the
large players in the industry!
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ICA-Agricultural Machinery!
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Threat of substitutes!
Overview of Players!
Industry Analysis!
Intensity of rivalry!
Direct substitutes!
Human capital !
Agricultural tools!
Not relevant even if the cost
is lower: they are not efficient
compare to machinery
(increase from 60 to 70q/ha
in France from 1989 to 2005
through mechanization)!
Threat of substitutes!
Indirect substitutes!
Robots!
Higher threats of classical
machinery, they are however
already integrated in some
AMCs!
Because the industry is related to food production, the threats of substitutes are very low!
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ICA-Agricultural Machinery!
20!
Intensity of rivalry!
Threat of substitutes!
Supplier power is
moderate!
Mostly low supplier power
due to a large number of
suppliers!
High-end products that
require engineering skills
has larger bargaining power
(Motor pumps, GPS etc.)!
Rivalry is
moderate!
Moderate in
established markets!
Moderate/High in
emerging markets!
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ICA-Agricultural Machinery!
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COMPETITIVE ANALYSIS!
Strategic groups!
Firms analysis: What do certain market leaders do good?!
Future key factors for competitive success for market leaders!
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ICA-Agricultural Machinery!
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ICA-Agricultural Machinery!
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Size is crucial!
Strategic groups!
Competitive Analysis!
16.00!
Revenue!
14.00!
Companies able
to ensure a large
geographic
coverage can
usually enjoy
better margins.!
12.00!
Profit margin!
Kubota Corp!
10.00!
Mahindra &!
Mahindra!
CLAAS!
8.00!
The Economies of
Scale holds
within the high
revenues interval,
but not in general.!
AGCO!
6.00!
CNH Global!
Escorts!
4.00!
2.00!
First Tractor Co
Ltd(YTO)!
0.00!
0!
1!
2!
3!
4!
5!
6!
16.02.2015!
ICA-Agricultural Machinery!
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Size is crucial!
Strategic groups!
Competitive Analysis!
4.00!
Profit margin!
CLAAS
3.50!
Deere & Co
CNH Global
Companies able
to enter the high
end market can
usually enjoy
better margins.!
3.00!
AGCO
Corp
2.50!
First
Tractor
Co
Ltd
(YTO)
A wider product
range product
range usually
increases
margins, too.!
2.00!
Iseki
&
Co
Ltd
1.50!
Kubota
Corp
Dae
Dong
Industrial
Co
Ltd
Escorts
1.00!
Mahindra
&
Mahindra
0.50!
0.00!
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
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ICA-Agricultural Machinery!
25!
Market leaders
Firms!
High revenues and
Deere & Co!
margins in general!
AGCO!
Great global coverage!
CNH Global!
Wide product range (i.e.
(SAME Deutz-Fahr)
full-liners)!
High-end machinery!
Firms!
Mahindra &
Mahindra!
Kubota!
Specialists
Firms!
Iseki!
First Tractor
Company Ltd.!
Dae Dong Industrial
Escorts!
Firms!
Claas
To ensure that the market leaders outperform the other strategic groups in emerging markets, the
key factors for future competitive success within this group must be considered. This is done by
analysing what certain players within this group have done good. !
16.02.2015!
ICA-Agricultural Machinery!
26!
Deere!
10!
AGCO!
5!
CNH!
0!
-5!
2008!
2010!
2011!
2012!
Financial leverage !
(Assets over Equity)!
2009!
10!
8!
6!
Deere!
4!
AGCO!
2!
CNH!
0!
2008!
2009!
2010!
2011!
2012!
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ICA-Agricultural Machinery!
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CNH!
0!
2008!
2009!
2010!
2011!
2012!
AGCO!
5000!
Deere!
10000!
12!
10!
8!
Deere!
6!
AGCO!
4!
CNH!
2!
0!
2008!
2009!
2010!
2011!
2012!
16.02.2015!
ICA-Agricultural Machinery!
28!
What are the key factors for market leaders to ensure competitive success
in the future? !
Strategic groups!
Competitive Analysis!
Increase Revenues!
Continue to position early in
future market growth regions
(e.g. emerging markets)!
Focus on adaption !
Consider the price sensitivity of
customers in those markets!
Offer financing options!
M&A activity or strategic
partnerships to speed up local
adaption!
Revenues
16.02.2015!
Supplier segmentation to
leverage from knowledge or buy
cheaper!
Profit
Costs
ICA-Agricultural Machinery!
Centralization of distribution
centers, sales and service
centers!
Elimination of duplicate support
activities (e.g. HR, Legal)!
Decrease working capital!
SCENARIO ANALYSIS!
16.02.2015!
ICA-Agricultural Machinery!
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Type!
Impact-Probability-Analysis!
Key factor!
Raw material price volatility!
Why important?!
Cost driver in machinery!
Productivity decreases!
Factors that
could threaten
demand for the Diets switches from meat to seafood!
industry output !
Population growth not as expected!
We analyse what impact and probability these factors have to decide whether to investigate further!
http://www.pcmag.com/article2/0,2817,2419277,00.asp&utm_source=feedly!
http://moneymorning.com/2013/02/12/two-reasons-to-expect-greater-volatility-in-oil-prices/!
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ICA-Agricultural Machinery!
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Impact-Probability-Analysis!
Impact-probability-plot!
Register of threats!
10
9
High
Threat 8
Threat 7
7
Impact
Threat 5
5
4
Threat 4
Threat 1
Threat
6
Threat
2
2
Low
1
Threat 3
0
0
Low
2
4
5
6
Probability
High
8
9
10
No threat combines high impact with high probability, and we conclude that major changes in the
industry from external factors are unlikely. !
http://www.un.org/esa/population/publications/longrange2/WorldPop2300final.pdf!
http://moneymorning.com/2013/02/12/two-reasons-to-expect-greater-volatility-in-oil-prices/!
http://newsfeed.time.com/2013/01/11/overcrowding-nah-the-worlds-population-may-actually-be-declining/!
16.02.2015!
ICA-Agricultural Machinery!
32!
2)!
4)!
3)!
Competitive
analysis!
Industry analysis!
?
Scenario !
analysis!
16.02.2015!
6)!
7)!
8)!
Industry Analysis
of Kenya!
ICA-Agricultural Machinery!
Strategy for !
entering Kenya!
33!
16.02.2015!
potential?!
ICA-Agricultural Machinery!
34!
Indicator!
African comparison!
Brazil!
Russia!
India!
China!
SS Africa!
Agricultural
preconditions!
59 million ha of arable
123 million ha of arable
land.!
land. Consolidated
Increasing consolidation!
agricultural sector!
Productivity/
Mechanization!
Relatively high
Low productivity despite
productivity and
high mechanization level
mechanization level (61)!
(96)!
Relatively low
High productivity despite Very low mechanization
mechanization level (6)! lowest emerging market
level, high potential
Low productivity!
mechanization level (3)!
growth!
Medium due to
balanced ratio of
population to utilized
land!
Strong, due to
imbalance between
population and utilized
land!
Sub Saharan Africa seems to be the final frontier with huge arable land and low mechanization
level. The potential for an increase in mechanization might be large and are depending on external
factors. !
Sources: VDMA, Freedonia, FAO, CIA World Fact Book, Oliver Whyman Analysis!
16.02.2015!
ICA-Agricultural Machinery!
35!
African comparison!
Economic!
Huge potential growth rate (based
on potential growth for agricultural
goods of 50% to 68% by 2030)!
More than 50% of the population
work in agriculture manually !
Political!
Instability in some countries
Growing commitment for some
governments encouraged by
international development
programmes!
Technological!
Lack of technological knowledge !
Lack of infrastructure
(transportation, irrigation,
electricity)!
Social!
Fast growing population!
Education and training
needed for the use of new
technological material!
Small-scale farming!
Environmental!
Holds around 60% of the worlds
remaining uncultivated land.
Environmental circumstances
allows for two seasons of crop
per year. Global warming
increases yield pressure.!
Legal!
Problems with property rights,
Farmers usually rent land from the
government. In many countries
women are not allowed to own land.!
Sources: FAO, CIA World Fact Book, IMF reports (Regional Economic Outlook: Sub-Saharan Africa, Oct 2012)!
16.02.2015!
ICA-Agricultural Machinery!
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African comparison!
Region I!
Ghana!
Cte dIvoire!
Nigeria!
Cameroon!
Angola!
Ethiopia!
Kenya!
Tanzania!
Region II!
Higher political stability!
Vast investments from abroad in practically all
the countries during the last decade!
Higher increase in the Human Development
index the last couple of years!
Mozambique!
Madagascar!
Region II stands out as the most promising region. To decide which country to enter, we need
to compare agricultural demand drivers and PESTEL factors for the countries in region II!
Sources: Four lessons for transforming African agriculture, McKinsey Quarterly, April 2011, FAO Statistics 2012!
16.02.2015!
ICA-Agricultural Machinery!
37!
African comparison!
Country!
Arable Land
(1000ha)!
# of
tractors!
Tractors/
arable land!
Fertilizer/
arable land!
Credit rating!
(Fitch)!
C. R. Outlook
(Fitch)!
Infrastructu
re inv.!
Mozambique!
2800!
9400!
3.35!
17.95!
CCC!
negative!
low!
Ethiopia!
13606!
3000!
0.22!
32.20!
CCC!
stable!
high!
Kenya!
5300!
14000!
2.64!
95.44!
B+!
stable!
high!
Madagascar!
37500!
30000!
0.8!
0.99!
BB-!
stable!
high!
Sudan!
20698!
22600!
1.09!
4.0!
CCC!
negative!
middle!
Tanzania!
9600!
6000!
0.625!
9.66!
CCC!
stable!
middle!
The promising countries differ very on each factor. Kenya has overall strong agricultural numbers
and strong credit rating !
16.02.2015!
ICA-Agricultural Machinery!
38!
African comparison!
Competitiveness comparison!
Tanzania
Ethiopia
Innova3on
Business
sophis3ca3on
Madagascar
Ins3tu3ons
5
4
3
2
Mozambique
Kenya *
Infrastructure
Macroeconomic
environment
1
Market
size
Technological
readiness
Financial
market
development
Goods
market
eciency
Labor
market
eciency
By its central position in the region as well as its high ranking compared to neighbouring countries, !
Kenya is the most promising country to entry for an agricultural machinery company.!
Sources: 1US agri equipment giant AGCO explains why it will invest $100 m ion Africa
16.02.2015!
2The
ICA-Agricultural Machinery!
39!
African comparison!
Arable land!
Need for mechanization!
Yield pressure!
Mechanization readiness!
Foreign investments and
global attention!
Government commitment!
Global
16.02.2015!
Hindrances!
Lack of infrastructure
even though highest
among region II!
Mainly small farms!
Training of farmers
to use equipment is
required!
..Analysis..
..Kenya
ICA-Agricultural Machinery!
ICA-Agricultural Machinery!
41!
Customer characteristics!
Bargaining powers!
Threats!
30%!
70%!
CNH!
Others!
The industry is very concentrated with CNH enjoying 70% of the market!
However, they are struggeling with sales due to the level of maturity in the market. !
The state of the market indicates that competition is not a major threat.!
Sources: CMC motors, kmi.co Kenya & John Deere, Tractorcorner, Capitalfm.co.ke!
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Endcustomer!
types!
Customer characteristics!
Bargaining powers!
Hirers!
Farmers!
Number of medium to
large farms !
( < 3 ha ) !
Differences
and farmers
needs!
< 25%!
Threats!
Food crops!
Cash crops!
Diary and
meat!
Cereals!
Pulses!
Roots and tubers!
> 75%!
Tractors will increase
production efficiency of all
crops. !
Other machinery must be
quite specialized. !
There are some differences
but the small farmers (>
75%) have basic needs.!
Land holding!
Farm family labour!
Resources!
Types of animals!
16.02.2015!
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Customer characteristics!
Bargaining powers!
Availability of
substitute
products!
Buyer
concentration!
High!
Moderate!
Low!
Threats!
Bargaining
power of
buyers!
Moderate!
1.
Produce
2.
Assemble!
3.
Export!
Yes!
Little or
no !
No!
16.02.2015!
ICA-Agricultural Machinery!
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Customer characteristics!
Bargaining powers!
Threat of substitutes
1!
Entry
strategy!
Joint
venture!
Acquisitions!
Start from
scratch!
Deals !
with policy
makers and
NGOs!
Education !
and training!
for farmers
and!
local policy
makers!
Trust!
from the
com-!
munity to
increase
productivity!
Threats!
Machinery resale!
Resale of second hand tractors!
enables farmers to get powerful and!
reliable machinery for about half the
price of a new machine !
2!
Manual labor!
Both prices and access to manual
labor is good. Farm animals can also
be a good substitute for Kenyas
many small-farm owners!
3!
Crop substitutes!
Farmers might shift their food crops
to crops that does not!
demand a high level of machinery!
ICA-Agricultural Machinery!
45!
Strategy outline!
Two phase model!
Product portfolio!
16.02.2015!
Entry strategy!
SWOT!
Issues and challenges!
ICA-Agricultural Machinery!
46!
Strategic goals and the traditional strategy for market entry in Kenya!
Strategy outline!
F&Ts strategy!
Product portfolio!
Entry strategy!
Gap! !
Maintain position as
market leader!
Expand market!
Kill competition!
SWOT!
Gap!!
Sales model!
Low end products!
Internal or external
financial solutions!
There is a gap between the goals and what the firm can achieve by entering with the same strategy as the
incumbents. How can F&T fill this gap? !
16.02.2015!
ICA-Agricultural Machinery!
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Strategy outline!
Strategy outline!
F&Ts strategy!
Product portfolio!
Entry strategy!
SWOT!
F&T will ensure a profitable business in Sub-Saharan-Africa by implementing a two-phase strategy with the
aim of gaining market share and making small and mid-size farmers use agriculture machinery.!
Phase I:!
Renting!
Phase II:!
Selling!
16.02.2015!
ICA-Agricultural Machinery!
48!
Renting model !
Strategy outline!
F&Ts strategy!
Product portfolio!
Entry strategy!
Strategy!
SWOT!
Educate farmers!
F&Ts products!
ICA-Agricultural Machinery!
49!
Product portfolio!
Entry strategy!
SWOT!
Engine
size!
(in HP)!
Unit price!
to buy ($)!
Fuel cost
+!
($/h)!
Maintenance +! Depreciation
($/h)!
+!
($/h)!
Overhead
=!
($/h)!
Total costs!
($/h)!
60!
26000!
10,45!
0,33!
3,47!
3,83!
18,08!
105!
80000!
18,30!
1,00!
10,67!
11,79!
41,75!
Based on!
Insurance & housing!
7%!
1%!
# years in use!
12!
0,044!
Price of diesel/gallon!
3,6!
10%!
Salvage value!
36%!
0,06!
Sources: Lazarus, William F. "Machinery cost estimates." University of Minnesota Extension, St. Paul (2009)., http://www.farmdoc.illinois.edu/manage/machinery/machinery_tractors.html !
16.02.2015!
ICA-Agricultural Machinery!
50!
Product portfolio!
Entry strategy!
SWOT!
Possible evolution!
Ren3ng
Selling
16.02.2015!
ICA-Agricultural Machinery!
51!
Product portfolio!
Entry strategy!
1.50
1.00
0.50
-
2012
2014
2016
2018
2020
2022
2024
2026
2028
70000
SWOT!
Renting phase!
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
Sources: FAO stats, Agriculture statistics on www. Nationmaster.com (data for Mexico), http://thepeople.co.ke/story.php?com=41&item=3059#.UYai_0o_iSo!
16.02.2015!
ICA-Agricultural Machinery!
52!
Product Portfolio!
Strategy outline!
F&Ts strategy!
Product portfolio!
Entry strategy!
SWOT!
Tractors
Harvesters
Add-ons
ConservaHon add-ons
30 to 150hp!
Lower range for
small farms!
Higher range for
larger farms or
contractors!
Adapted to local
needs and to local
products!
Coffee!
Sugar cane!
Grain!
Corn!
++!
Seeders!
Ploughs!
Cultivators!
Harrows!
Tractors are the core of the portfolio. To increase efficiency in all steps of farming, !
harvesters, add-ons and conservation parts are included. !
Maintenance and service requires the supply of spare parts.!
16.02.2015!
ICA-Agricultural Machinery!
53!
Entry strategy!
Joint Venture!
M & A!
Pros!
Product portfolio!
Cons!
Pros !
Cons!
Possible to
locate suitable
company!
Work moral in
acquired
company!
Lowest risk!
Must agree on
final assembly!
Use existing
suppliers and
distribution
channels!
Capital
intensive!
Lowest capital
requirements!
Must agree on
Hilti-strategy!
Private
ownership!
Risky!
Problems
during merging
process!
SWOT!
Cons!
Private
ownership!
Time
consuming!
Capital
intensive!
Easy access
to distribution
channels and
suppliers!
Build up
distribution
channels and
relations with
suppliers!
Many possible
partnering
companies!
Build up trust
with authorities
and end
customers!
Joint venture with an existing African firm is the most promising entry strategy. Efforts is needed to
find a suitable, multinational partnering company.!
16.02.2015!
ICA-Agricultural Machinery!
54!
SWOT!
Strategy outline!
F&Ts strategy!
Product portfolio!
Entry strategy!
Strengths!
Threats!
16.02.2015!
Weaknesses!
Opportunities!
SWOT!
ICA-Agricultural Machinery!
55!
Product portfolio!
Entry strategy!
SWOT!
Seasonal demand!
16.02.2015!
ICA-Agricultural Machinery!
56!
Summary!
1) Market & Industry environment:!
16.02.2015!
ICA-Agricultural Machinery!
57!
BACKUP SLIDES!
16.02.2015!
ICA-Agricultural Machinery!
58!
16!
14!
12!
10!
Deere!
8!
AGCO!
Kubota!
6!
CNH!
4!
M&M!
2!
0!
-2!
2008!
2009!
2010!
2011!
2012!
60!
50!
40!
Deere!
30!
AGCO!
Kubota!
20!
CNH!
10!
M&M!
0!
2008!
16.02.2015!
ICA-Agricultural Machinery!
2009!
2010!
2011!
2012!
59!
30!
25!
Deere!
20!
AGCO!
15!
Kubota!
CNH!
10!
M&M!
5!
0!
2008!
2009!
2010!
2011!
2012!
-5!
-10!
16.02.2015!
ICA-Agricultural Machinery!
60!
PROFITABILITY RATIOS!
ROA (in %)!
8!
Deere!
6!
AGCO!
4!
Kubota!
CNH!
2!
M&M!
0!
-2!
2008!
2009!
2010!
2011!
2012!
10!
15!
Deere!
10!
AGCO!
Kubota!
5!
CNH!
M&M!
0!
-5!
2008!
2009!
2010!
2011!
2012!
40!
Deere!
30!
AGCO!
20!
Kubota!
10!
CNH!
M&M!
0!
-10!
2008!
16.02.2015!
2009!
2010!
2011!
2012!
ICA-Agricultural Machinery!
61!
Financial leverage !
(Assets over Equity)!
10!
8!
Deere!
6!
AGCO!
4!
Kubota!
2!
CNH!
0!
M&M!
2008!
16.02.2015!
2009!
2010!
2011!
2012!
EFFICIENCY RATIOS!
25000!
20000!
Deere!
15000!
AGCO!
10000!
Kubota!
CNH!
5000!
ICA-Agricultural Machinery!
M&M!
0!
2008!
2009!
2010!
2011!
2012!
62!
200!
150!
Deere!
AGCO!
100!
Kubota!
CNH!
M&M!
50!
0!
2008!
2009!
2010!
2011!
2012!
-50!
16.02.2015!
ICA-Agricultural Machinery!
63!
TURNOVER!
Inventory turnover (in X)!
12!
10!
8!
Deere!
6!
AGCO!
4!
Kubota!
CNH!
2!
M&M!
0!
16.02.2015!
2008!
2009!
2010!
2011!
2012!
Deere!
4!
AGCO!
Kubota!
2!
CNH!
M&M!
0!
ICA-Agricultural Machinery!
2008!
2009!
2010!
2011!
2012!
64!
2.5
2
Deere
AGCO
1.5
Kubota
CNH
M&M
0.5
0
2008
16.02.2015!
2009
2010
2011
ICA-Agricultural Machinery!
2012
65!
Investment ratios!
10!
8!
Deere!
AGCO!
6!
Kubota!
CNH!
4!
M&M!
2!
0!
2008!
16.02.2015!
2009!
2010!
2011!
ICA-Agricultural Machinery!
2012!
66!
Strategy!
External factors!
TEMP: DELETED!
R!
R!
P!
O!
16.02.2015!
ICA-Agricultural Machinery!
Q!
Capital Invested!
16.02.2015!
ICA-Agricultural Machinery!
68!