barloworld equipment – iberia · barloworld equipment – iberia viktor salzmann ceo barloworld...
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Barloworld Equipment – Iberia
Viktor Salzmann
CEO Barloworld Equipment Iberia and
Barloworld Power
25 March 2013
2
…Where is the Bottom ….?
3
Our strategic framework
Powering toward 2015³
Customer Satisfaction I Cash Flow I Expense Base I Pins Dcal
4
KEY FACTS
• Machine market is down < 90% from 2007 peak
• Revenue reduced by 52% since 2007 peak, with gross margin reduced from €178m to € 74m
• PINS doubled in region since 2006
• Product Support market share increased by 10%
• Drastic headcount reduction by > 40%; 992 people
• Restructuring cost of € 42m over past 4 years
Customers now feel the difference owning Caterpillar equipment
5
Industry trend – Iberia (units)
22 982
10 059
4 620 3 996
2 964 2 225
6 895
0
5 000
10 000
15 000
20 000
25 000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
6
Rental integration
254
224
191
77
33 18
0
50
100
150
200
250
300
2008 2009 2010 2011 Mar-12 May-12
• Back office integration in dealer
• Dealer commercial network used
• 100% Dealer product support
• 100% CAT machines
Rental fleet = from €120m to €22m
2013 Target Operational profit = € 200k
7
1979 2 093
1990 2 110
1997 1 311
2007 1 814
2012 1 135
0
500
1 000
1 500
2 000
2 500
1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
Number of employees: Spain
Headcount evolution – Spain
• Headcount across the Iberian region has been reduced by 992 employees > 40%
• Technical capabilities have been maintained
• Group now at the lowest headcount level since incorporation into the Barloworld group in
1992
8
Headcount evolution – Spain
8.63%
16.18%
14.98%
8.69%
8.63%
12.46%
12.92%
11.21%
6.17%
2.82%
11.42%
8.93%
11.34%
14.56%
18.18%
18.42%
10.62%
1.45%
61-65
56-60
51-55
46-50
41-45
36-40
31-35
26-30
18-25
Employee age distribution
09/2006 Estimate 09/2012
9
Excellence on product support delivery
Gold
Platinum
10
Maintaining technical capacity
2 ZAHID (Saudii Arabia)
3 Months, since Jan 13
2 BWEQUIPAMENTOS (Angola)
12 Months
21 BW
EQUIPAMENTOS (Mozambique)
6 Months, since Nov 12
18
BWEQUIPMENT (Middelburg, SA)
6 Months
9 BWEQUIPMENT (Boksburg, SA)
6 Months
13
BWEQUIPMENT (Kuruman, SA)
6 Months Mar13
2 PON (Norway)
9 Months, since Sep 12
7 BWEQUIPMENT (Kathu, SA)
6 Months
2 IMCA (Dominican Republic)
12 Months
76 TECHNICIANS
2 MOTA (Mozambique)
6 Months
Spain
Portugal
16 TECHNICIANS
7 MOTA (Malawi) - 12 Months
7 MOTA/BAW (Malawi)
6 Months
In destination
Upcoming
11
Retain and increase customer loyalty and preference
Fleet deals outside Spain – 274 units US$366m
8.0 8.2
8.0 8.1
8.2 8.1
8.0
7.6
8.0
7.7 7.8
8.0
8.6
8.3
6.5
7.0
7.5
8.0
8.5
9.0
2006 2007 2008 2009 2010 2011 2012
Customer satisfaction
EAME FSA
26% 28% 27% 30% 29%
50% 41%
53% 56% 52% 51% 57%
45% 54%
21% 16% 21% 20% 14% 5% 5%
0%
20%
40%
60%
80%
100%
2006 2007 2008 2009 2010 2011 2012
Customer loyalty
% Loyal % Vulnerable % At Risk
12
Organic growth: Used equipment
28 45
62 91
126
164 179 193
219 242
273 290
34 53
0
50
100
150
200
250
300
350
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
CCUE/DCUE progress
2006 2007 2008 2009 2010 2011 2012
5,9 4.6
7.1
11.9 11,1
0
10
20
30
40
50
60
70
0
2
4
6
8
10
12
14
2008 2009 2010 2011 PLAN 22012
Millions
SALES GP (%) ROTATION
• Double Certified units in 3 years
• Double margin in 3 years (6% to 12%)
• All branches with Certified areas
• Rotation from 2 turns to 3
• Awareness on used equipment
Madrid Lisbon
Barcelona Coruña
2008 2009 2010 2011 2012
13
Organic growth: Mytractor – virtual company
• > €1m sales per month
• 5 000 visits per month
• Beq, Cuesi and BM have utilised the platform
• 263 machines sold in one year
• 44 countries have bought from us
• 1 400 new solid contacts
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Iberia sales €m
Actual Plan Prior year
Barloworld Equipment – Iberia
Questions?