Berco Company Profile 2014 Berco History u u
Berco Company Profile 2014
Berco History u u u 1918 Vezio Bertoni opened up a little repair shop 1920 -1930 Bertoni expanded his business, trasforming it into a workshop together with two partners Roberto Cotti and Edomondo Michelini: Birth of the BERCO brand (BERtoni and COtti) 1977 Death of Vezio Bertoni; his son Gianni surrendered 50% of the shares to Hoesch AG (owner of O&K). Berco employees nearly 2, 700. u u 1986 Hoesch AG became 100% Berco owner. 1987 - Reorganization of the company - Opening to OEM’s Volume growth, starting from 60, 000 tons, through a large investment program. u 1989 - Acquisition of Fiat owned Simmel (Castelfranco V. to), later (1992) Berco 2. u 1991 - Krupp takes over Hoesch Berco Company Profile 2014 2
Berco History u u 1995 - Creation of Berco of America mainly to serve North American OEMs. 1998 - Acquisition of Forging Shops Fils (Turin), that became Berco 3 to secure forged parts for further growth up to 200, 000 tons. - Berco Deutschland start up (Former TEG Berco dealer). u 1998 - Merger between Thyssen and Krupp: Berco entrance into Thyssen. Krupp Technologies. u 2000 - Berco Brazil (Sao Paolo) start up. u 2006 - Berco UK (Newcastle) start up. u 2007 - Acquisition of Forteq Imola for welding and fabricated structures: Creation of the new Berco Track System Division. u 2008 - Berco Shanghai (Lingang Free Trade Zone) start up as Logistic and Trading center. - Berco of Bulgaria start up. - Berco India (Hyderabad): Incorporation of Berco India and start of construction of a Local Factory u 2009 - Berco Shanghai (Lingang Central Industrial Area): start of Manufacturing Operation in China. u 2010 - Berco India (Hyderabad) start up of Logistic, Assembly and Sales u 2011 - Berco Brazil: opening new Hortolandia plant Berco Company Profile 2014 3
Undercarriage Product Line 5 Divisions - The Widest Undercarriage Choice BMU Mini&Utilities Undercarriage BMR Medium Range Berco Company Profile 2014 4 BMP Mining Products BTS Complete Track System BSD Special Devices
Berco products and application examples The widest undercarriage choice addressing major global megatrends Mining Products 80 -300 ton Medium Range 7 -80 ton CTL + Mini 1 -6 ton CTS Branch focus Mining Custom solutions for e. g. o paving, milling mach. o Compact track loaders o UC for dozers Construction Housing Chain pitch: 216 -317 mm o UC for excavators Chain pitch: 260 -400 mm o Full range of Components o UC for dozers Infrastructure Chain pitch: 140 -216 mm o UC for excavators Chain pitch: 140 -260 mm for steel and rubber belt versions Food CTL = Compact Track loader, CTS = Complete Track Systems, UC = Undercarriage Berco Company Profile 2014 5 Custom solutions for e. g. o Mulchers, harvesters o Underwater pipe-layers o CTS for asphalt paving machines
Berco: Undercarriage components for crawler machines Products Applications Excavators Construction/Housing Dozers Mining / Energy Harvesting Agricultural / Food Paving machines Infrasctructure/Mobility Rollers Track chains and shoes Idlers and sprockets Complete track systems Berco Company Profile 2014 6
Berco: Highlights Customized products Competitve advanatages • One-stop-shop from engineering to field service • The largest worldwide independent manufacturer of undercarriage components • Engineering and design of original OEM - products • 30 automatic forging lines including a 32. 000 tons spindle press (largest press world-wide for undercarriage components) • After market spare parts for the full range of crawlers • Warehousing, logistics, assembly, painting and just in time service through foreign affiliated companies in the most important markets close to customers • Agricultural • Construction • Earth moving Construction/ Housing Berco Company Profile 2014 7 • Intensive Research and Development Mining / Energy Food Infrastructure/Mobility
Berco Group - Fiscal Year 12/13 Berco Group Sales: Euro 379 Mio 2777 employees Undercarriage OEM Division Aftermarket Division (132)* Berco of America Waukesha (WI) Greensboro (NC) Seattle (WA) Las Vegas (NV) Kilgore (TX) Berco Bulgaria Berco Germany (Apriltzi) (22)* (54)* Berco China Berco. Sul (Brasile) (Shanghai)(84)* Berco India (Hyderabad)(51)* (61)* Berco UK (28)* *: Employees Berco Company Profile 2014 8 Dealer
I. Overview key figures 08/09 - 12/13 – Berco Group Sales (mill. €) 08/09 Actual 09/10 Actual 10/11 Actual 11/12 Actual 12/13 Actual Workforce 08/09 Actual Berco Company Profile 2014 9 09/10 Actual 10/11 Actual 11/12 Actual 12/13 Actual
II. Sales breakdown (Berco Group) by geographical area (Mio Euro) Variation vs. previous year (%) FY 11/12 vs. FY 10/11, FY 12/13 forecast Breakdown by main areas FY 10/11 FY 11/12 FY 12/13 Berco Company Profile 2014 10
II. Sales breakdown by business segment/product range (%) FY 10/11 FY 11/12 FY 12/13 Berco Company Profile 2014 11
Berco: Undercarriage components for crawler machines Sales by regions Others South America Asia Germany 4% 6 % 7% 8% 36 % 39 % NAFTA FY 12/13 Main customers 1 % 1, 6 % 0, 8 % 3, 3% 16, 6 % Others 23, 4 % 08, 5 % 5, 6 % 27, 4 % After Market FY 12/13 Berco Company Profile 2014 12 0, 8% 5, 5 % 5, 1 % Other Europe
Berco Production Plants in Italy Castelfranco Copparo Berco Company Profile 2014 13
Berco Production Plants in Italy BERCO 1: HEADQUARTERS Copparo (FE) Area: 550, 000 m 2 (300, 000 m 2 under roof) 1. 630 employees as at April 30 th , 2014 Ref. HQ SD D C R F TS S Berco Company Profile 2014 14 Activity Headquarter Track Frames / Special Devices Forging Dies Chains Rollers Hot Forging / Heat treatment Track shoes Shipping Finished Goods % on total capacity 100 100 80 80 70 100
Berco Production Plants in Italy Berco 2: Castelfranco Veneto - TV Area: 65, 000 m 2 (35, 000 m 2 under roof) 300 employees as at April 30 th, 2014 Berco Company Profile 2014 15
Berco abroad locations 12 affiliated companies for manufacturing and distribution, 429 employees (as of Jan 30 th 2014) Berco Deutschland Berco UK Berco of America 27 Eomployees Durham 54 Eomployees Ennepetal 135 Employees Berco Bulgaria - Waukesha (WI) - Greensboro (NC) - Seattle (WA) - Las Vegas (NV) - Kilgore (TX) 27 Employees Berco China Apriltzi Berco S. p. A 79 Employees 2. 249 Employees - Shanghai Hyderabad Berco India 48 Employees Hortolandia Berco. Sul 59 Employees Headquarter/Italian factories Subsidiaries/Manufacturing Logistic centers Berco Company Profile 2014 16
Berco Global Footprint – Strategies and measures by region RUSSIA NORTH AMERICA (Bo. A) Concept Phase Localization of components o local assembly and local purchasing and manufacturing EUROPE Capacity Adaption (Berco S. p. A. ) o Ready to follow OEMs as soon as they start local production o Aftermarket already supplied by Berco Deutschland o Break-Even reduction o process optimization SOUTH AMERICA (Bercosul) Localization of components o local assembly and local purchasing and manufacturing o special focus on sugar cane and rice harvesters Berco Company Profile 2014 17 ASIA (China and India) Expansion o Capacity expansion and ramp-up of local production o Increasing market share
Strategic components supplied to the abroad affiliates: Berco Deutschland – Ennepetal Germany § Location: Ennepetal Germany § Number of Employees: 54 Berco Deutschland Berco Company Profile 2014
Strategic components supplied to the abroad affiliates Berco UK – Spennymoor (UK) § Location: Spennymoor (Near Newcastle) § Number of Employees: 27 Berco UK Berco Company Profile 2014
Strategic components supplied to the abroad affiliates Berco of America § Location: USA § Number of Employees: 135 Berco of America - Milwaukee (WI) - Greensboro (NC) - Seattle (WA) - Las Vegas (NV) - Kilgore (TX) Berco Company Profile 2014
Berco (Shanghai) Undercarriage Overview of activities in Asia Pacific § Location: Lingang, Pudong, Shanghai 60 km South-East from city centre § Incorporation: BSU, Trading – 2008 BST, Manufacturing - 2009 § Number of Employees: 79 § Total Area: 23, 142 m 2 § Covered Area: 14, 567 m 2 (offices 690 m 2) Berco Company Profile 2014
Berco Undercarriages (India) Pvt. Ltd. Overview of activities in Asia Pacific Berco Undercarriages India, Hyderabad, Andhra Pradesh § SOP: Assembly and Manufacture of Undercarriage part for Construction Equipment Industry (OE and AM) § # Employees: 48 § Covered area: 10. 000 m 2 Berco Company Profile 2014
Berco. Sul Ltda. Berco. Sul - Hortolandia Property area: 118. 333, 90 m 2 Area of building cover: 7. 089, 73 m 2 Number of Employees: 59 Main distances: 180 km of Santos Port 115 km of Sao Paulo city 15 km of International Airport Viracopos 115 km of International Airport Guarulhos Main Customers distances: 21 km of Doosan 55 km of Soilmec 55 km of CNH Piracicaba 245 km of Liebherr 417 km of CNH Curitiba 545 km of CNH Contagem Warehouse for: - Assembling & Purchasing for local OEMs - AM & Mining distribution; - Track-Systems for sugar-cane harvesters; - Service activities. Berco Company Profile 2014 23 e
Frames manufacturing in East Europe – Bulgaria Berco Bulgaria - Apriltzi § Location: Apriltzi (Sofia) § Number of Employees: 27 Headquarters Berco Company Profile 2014
Berco Group – Forecast 2013/14 Company Berco (Shanghai) # People Sales* EBIT adj. 81 7. 5 -0. 2 134 146. 7 2. 0 Berco Undercarriages (India) 40 13. 7 -1. 7 BERCO Deutschland Gmb. H 43 21. 1 0. 6 Berco Bulgaria Ltd. 30 0. 1 1, 927 144. 3 -22. 0 Berco. Sul Ltda. 60 15. 2 -0. 9 Berco (UK) Ltd. 27 24. 7 0. 2 2, 337 373. 1 Berco of America Inc. Berco S. p. A. Berco Group * Consolidated ** Included 18. 6 Mio€ push down of Impairment Berco Company Profile 2014 -3. 3 ** [Mio €]
Berco organization: Berco S. p. A. Berco Company Profile 2014 26
Berco organization: ACT BU Undercarriages (CT-UC) CEO Sven Arend CT-UC/SAM Controlling, Accounting & Risk IT Management Operations Logistics Francesco Grenzi S. Arend/M. Seghieri Sandro Lo Gatto Alessandra De Carlo Roberto Favaretto Flavio Blè HR Development Quality Mgmt. Procurement Legal Tech. , Inno. , Sust. Functions CT-UC/TIS CT-UC/HRD Daniele Mingozzi Sales & Marketing Stefania Bottacin CT-UC-NAF CT-UC-BRA CT-UC-IND CT-UC-CHN Berco Company Profile 2014 27 CT-UC/CAR CT-UC/ITM CT-UC/OPS CT-UC/LOG CT-UC/PSM CT-UC/LEX Manufacturing & Process Engin. Supply Chain Mng. Stefano Salatini Barbara Panin Francesco Grenzi Lucio Zonca CT-UC/QAM CT-UC-EUR Business Operating Units COO Luca Baraldi CFO Georg Giovanakis CT-UC/SCM CT-UC/MPE CEO Europe & Ro. W CFO Europe & Ro. W COO Europe & Ro. W Sven Arend Georg Giovanakis Luca Baraldi CEO NAFTA FD NAFTA Amy Reichert Beth Andrews CEO Brazil FD Brazil Marcos Macedo Maria De Santana CEO India FD India Andy Cornforth Raj Kumar Jha CEO China FD China Federico Maurilli Kate Xu
Berco Roadmap 2012/13 2016/17 + Cost & Capital Efficiency Restructuring “Drive”/SAP Purchasing Continuous Enlarge and Reduce improvement develop new headcount and of internal and suppliers new labour external outside agreement Supply chain Italy/EU NWC & Investment Reduce CCC by 50% from 140 d to 70 d Globalization Enlarge network in Africa, SEA Localization Enhance local presence in Brazil and India AM Concept 28 Logistic concept 2. 0 Establish central On line warehouse Portal s and E-Commerce enlarge tracking dealer/age nt network D EBITDA adj. +62 Mio & BCF +6 Mio/a (FY 13 FY 17) Berco Company Profile 2014 = Market development Performance New Company shape Advanced financial performance Pursue market leader strategy
Berco Roadmap -Timetable and milestones for main sub-projects Topic 2014 2015 2016 2017 2018 1. 1 - Restructuring SA 2. 1 - Drive 2. 2 - SAP Board Sponsor LB 1 st wave 2 nd wave GG 3 - Purchasing GG 4 - NWC & Investment 5. 1 - Globalization (Africa) SA 5. 2 - Globalization (SEA) SA 6. 1 - Localization (Brazil) SA 6. 2 - Localization (India) SA 7 - AM Concept SA 8 - Logistic concept 2. 0 LB 26/05/2014 Berco Company Profile 2014 29 SA: Sven Arend GG: Georg Giovanakis LB: Luca Baraldi
Berco Roadmap – Steering / Sponsor committee Steering Committee Sven Arend Luca Baraldi Georg Giovanakis 1. 1 Restructuring 2. 1 DRIVE 2. 2 SAP D. Mingozzi L. Baraldi A. De Carlo 5. Globalization 8. Logistic Concept 3. Purchasing [OEM] G. Sani, [AM] M. Seghieri L. Zonca S. Salatini 6. 1 Localization BRA M. Macedo 6. 2 Localization IND A. Cornforth 7. AM Concept M. Seghieri Berco Company Profile 2014 30
The Competent Partner You Can Rely On Berco Company Profile 2014 31
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