WELDING AUTOMATION

PRODUCTS MARKETING AND SALES IN BRAZIL

Jarmo Pehkonen

AGENDA Introduction - Problem to be solved Company Macro situation of Brazilian market Theoretical references Market analyse of Pema Conclusions

INTRODUCTION

PROBLEM TO BE SOLVED

How to conquer new emergent market?

Which are the segments to be focused?

What is the Positioning of the Company in the market?

COMPANY – PEMAMEK Established: 1970

Number of personnel: 140

R&D/engineering staff: 60

Net sales 2011: EUR 40 million

Exports: 90% of production world-wide, and 60% of that outside of Europe.

SALES REGIONS

GLOBAL STRATEGIC PARTNERS

WIDE PRODUCT PORTFOLIO

PEMA`S MARKET SEGMENTS1. Engineered Heavy Fabrication2. Mobile Machinery3. Civil Construction4. Ship Building and Offshore5. Industrial Boilers6. Wind Energy7. Process and Nuclear

BRAZILIAN MARKET ANALYSE Pre-sal Oil discoveries are the DRIVER

Sudden increase of steel structure capacity > Brazil became small for the demand.

Local content requirement. Steel structures must be made in BRAZIL.

High labour cost and low productivity

PEMA offers solution to improve fabrication productivity and quality.

INTERNATIONALIZATIONUPPSALA STUDY1. Export sales manager

2. Expatriate sales manager in the target region

3. Local partner company/joint venture

4. Own subsidiary

5. Acquisition of the competitor

SEGMENTATION, TARGETING POSITIONG

DIVIDE MARKET TO SEGMENT

CHOOSE TARGET SEGMENTS

DEFINE POSITIONING OF THE COMPANY

BRAZILIAN MARKET Rough range estimate 100-200 Mreals / year

No exact statistic available

Competitors Esab with partners Koreans Japanese German American

Potential clients Shipyards, various Mobile machinery fabricators, Volvo, Caterpillar, Case

New Holland etc Industrial boilersSimisa, Confab

PEMA BUSINESS MODELS1. PRODUCT SALES through local partner

company. BRL

2. SOLUTIONS SALES. Directly from PEMA´s Finnish legal entity to end user. EURO

AFTER SALES. Contract local service partner. Royalties from service partner to PEMA. End client buys directly from Service partner.

PRODUCT VS SEGMENTS MATRIX – CURRENT SITUATION

PRODUCT VS SOLUTION MATRIX – PROPOSAL – INTERNAL PRODUCT TO SOLUTION RECEIPT

Products 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35Solution

Roller bed tower manufacturing line x x xHead and tailstock production lines x x x x

Robotized welding station for towerdoor frames xMicro Panel line x x x x x x x

Flat panel production line x x xT-Bar fabrication line x x x x x xH-Bar fabrication line x x x x x x

Block production solution x x x x x xProfile processing line x x x x x x

Membrane wallpanel production automation x x x x x x x x x x xWheel loader front frame fabrication cell x x x x x x

Trailer body frame welding cell x x x x x xFully automated welding of crane booms x x x x x x x

SOLUTIONS VS SEGMENTS MATRIX – SOLUTION ”CARDAPIO” FOR THE CLIENTS

Strateric Market Areas, SMA's, industry segments

Engineered Heavy

FabricationMobile

MachineryCivil

ConstructionShipbuilding and offshore

Industrial Boilers Wind Energy

Process and Nuclear

SolutionsRoller bed tower manufacturing line x

Head and tailstock production lines xRobotized welding station for towerdoor frames x

Micro Panel line xFlat panel production line x

T-Bar fabrication line xH-Bar fabrication line x

Block production solution xProfile processing line x

Membrane wallpanel production automation xWheel loader front frame fabrication cell x

Trailer body frame welding cell xFully automated welding of crane booms x

SEGMENT ATTRACVINESS

Strateric Market Areas, SMA's, industry segments

Engineered Heavy

FabricationMobile

MachineryCivil

ConstructionShipbuilding and offshore

Industrial Boilers Wind Energy

Process and Nuclear

Atractiviness, 1 Min, 5 MaxMarket size 4,0 4,0 3,0 5,0 2,0 3,0 1,0Profitability 4,0 3,0 3,0 4,0 5,0 3,0 3,0

Product offering 1, Solution offering 5 3,0 4,0 2,0 5,0 5,0 3,0 3,0Competitors, 5 low, 1 high 2,0 3,0 3,0 3,0 3,0 4,0 3,0

Average 3,3 3,5 2,8 4,3 3,8 3,3 2,5

PEMA POSITIONING

CONCLUSIONS Brazil is promising and potential market PEMA goes to regions –

Internationalization Focus on selected market segments Business models After sales plan

Keep on eye to find correct moment to open own Subsidiary!

THANK YOU!