Forum Zmieniamy Polski Przemysł 2012

Remi Le Grand

Hitachi Construction Machinery (Europe) N.V.

10 February 2012 - Warsaw

Global sales of construction equipment 2000-2015*

Source: Off-Highway Research

• Construction machinery market is a good economic indicator

• The sector recovers after difficult economic crisis period

Global Sales by region Crawler Excavators*

Source: Off-Highway Research

Changing structure of demand 2005-2015*

Source: Off-Highway Research

• The highest growth markets outside Europe: China, India

Market trend – Accum 12 months rolling (Poland shipments)

0

100

200

300

400

500

600

700

Mini

Crawler (>6t & over)

Wheel Exca (>6t & over)

Total Exca >6t

Wheel Loader 0>80hp

Wheel Loader 80>500hp

Total Wheel Loader

375

205146

338

436

566 (130%)

519 (138%)

302 (131%)

568 (168%)

206 (141%)

November 2010 & 2011

231 264 (129%)

315 (138%)

229

Source: CECE

Units

• Polish markets on the rise fuelled by the large road infrastructure projects• What is the future ahead of construction companies: railways?

Financing- new trends

• Machine financing - OEM based financing

* Growing rapidly* Easier terms then bank

financing - Flexibility

>> Lower down payments >> Customer approval for

financing

* Incentives to purchase - Marketing events >> Discounts

>> Prizes

- Receivables risk* Less credit-worthy customer &

More lenient terms

Conclusions

Think new markets• look for new markets domestically;• look for geographical expansion: BRIC, Middle East and Africa;• expand in large potential segments: eco-related• participate in the market consolidation.

Think new solutions• develop differentiating technological solutions and capabilities;• deliver key value proposition to the customer;• new financial schemes (leasing for clients in construction machinery as an example).

Think two steps ahead!

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