1. Zsolt Harsányi Vice-President of CLIMMAR Hungary Zsolt Harsányi Vice-President of CLIMMAR Hungary

2. My professional career Agricultural Mechanical Engineer 1 year at a state enterprise company as a service engineer At 1991 set an own business – AXIÁL Ltd. – as an entrepreneur Member of the MEGFOSZ’s presidency since 1998 Vice-president of CLIMMAR since 2002

3. 1991-2011.

4. “Service is more important than profit, profit is not the goal, but the result of service.” (Henry Ford) Motto of AXIÁL Ltd.

5. OWNER: HARSÁNYI FAMILY

6. Profile of AXIÁL Ltd. Supplying spare parts for agricultural and construction machines Sale of agricultural and construction machines Repair of agricultural and construction machines

7. 15 premises 550 employees Employee number of AXIÁL 31. 08. 2011 320 pcs own vehicles 13 million kms/year

8. From one hand! 9 premises 9 premises Completeness can be fullfilled only with us

9. Subsidiary in Hungary More than 200 pcs machines! ANNUAL RENTAL AGREEMENT!

10. Our Suppliers

11. AXIAL’s total turnover of 1991-2010 Source by Axiál

12. AXIÁL’s turnover in 2010 132,4 m€ Source by Axiál

13. AXIÁL 26 % In Hungary: 519 pcs 50 LE< Tractor sales in Hungary related to western brands in 2010 134 pcs Source: Dr. Nagy Béla SZIE, Gödöllő and by Axiál

14. 41% Harvester machine sales of Axial 27 pcs pcs In Hungary: 66 pcs Source by Axiál

15. 40 % In Hungary: 110 pcs 44 pcs Sale of agricultural telescopic loaders in Hungary in 2010 Source: Dr. Nagy Béla SZIE, Gödöllő and Axiál

16. PRODUCT RANGE ENLARGEMENT STRENGTHEN OUR POSITION 20% TARGET: 40 % Construction department 2010

17. Turnover 16 m€ 76 % (729 pcs) domestic sales Used machine situation of 2010

18. 68 m€ Dominant market share! Dominant market share! 21 451 partners! Sparepart sales in 2010

19. Service in the foreground Party of five Machine - Spareparts - Service - Financial Services – Machine rentals

20. RO YU HR SK A SLO Szombathely OSIRON UA Our foreign subsidiaries

21. Slovakia 6 premises 86 employees 6 premises 86 employees 1994.

22. Romania 12 premises 83 emloyees 12 premises 83 emloyees 2003.

23. 2700 ha in Beled Axiál in the agricultural production 10 300 kgs milk/2010/lactation/700 cows

24. 7000 ha and 2000 sows in Hódmezővásárhely 9 350 kgs milk/2010/lactation/1500 cows Axiál in the agricultural production

26. Hungarian Agriculture 2,5 % GDP 4,5 million hectares plough-land 10 million inhabitants 170 000 employees in agriculture of this Gross branch average income in 2010: 21.000,- RUB Foreign trade balance of Hungarian agriculture: + 1-2 billion €/year Territorial financial aid: 170,- €/ha

27. Hungarian sugar industry -1990 12 pcs sugar works 400.000 t sugar/year/86.000 ha -2011 1 pc sugar works 100.000 t sugar/year/14.000 ha

28. Hungarian agricultural machine investments in nominal values 1991-2010 Source: Dr. Hajdú József FVM MGI, Gödöllő and by Axiál Prognostic

29. pcs Source: Dr. Nagy Béla SZIE, Gödöllő and by Axiál 50 LE< Tractor sales in Hungary related to western brands in 2000-2010 + 1-2000 pcs Belarus/year

30. Harvester machine sales in Hungary 1998-2010 Source: Dr. Nagy Béla SZIE, Gödöllő and by Axiál

31. -MACHINE MANUFACTURING : MEGOSZ National Union of Agricultural Machines -MACHINE DISTRIBUTION: MEGFOSZ National Union of Agricultural Tools- and Machine Distributors Agricultural machine organizations in Hungary

32. MEGOSZ Type: labour civil organization Year of formation: 1991 Number of members :22 businesses Website:www.mezogepgyartok.hu Official paper of the Union:

33. MEGOSZ Aims of the organization: - professional representation of interests - Increasing the social judgement of research, development, manufacturing and distribution of agricultural machine branch in its all verticum - Harmonizing of interests

34. MEGFOSZ The three biggest businesses: 2/3 parts of circulation Type: labour civil organization Year of formation: 1999. Number of members:65 businesses

35. Tractor statistics made by MEGFOSZ It gived by the members: - type of the machine - postal code - HP

36. Situation in Hungary -Supplying members with information -Exhibiton organize -Lobby Our aim is uppositioning of Hungarian agricultural machine service

37. We are learning from CLIMMAR The next annual congress of CLIMMAR is in autumn

38. Increasing power Future of the agricultural motorization Future of the agricultural motorization

39. RTK – GPS Future of the agricultural motorization Future of the agricultural motorization

40. Future of the mechanization: TIER 4 engine Engine emission change Future of the agricultural motorization Future of the agricultural motorization

41. SCR Future of the agricultural motorization Future of the agricultural motorization

42. Elektronics To operate the advances in technology Future of the agricultural motorization Future of the agricultural motorization

43. Concentration The 5 biggest manufacturer give 90 %of harvesters and 80 % of tractors produced in the World

44. It needs more and more educated operators and service Future of the agricultural motorization Future of the agricultural motorization

45. CLIMMAR is an international organization organizing national associations which are engaged in agricultural motorization CLIMMAR is an international organization organizing national associations which are engaged in agricultural motorization

46. Allemagne Autriche Danemark Grèce Espagne Finlande France Irlande Italie Luxembourg Pays Bas Portugal Royaume Uni Suède Belgique Hongrie Suisse Tchéquie CLIMMAR was created in 1953 USA Contacts with Source: Climmar Congress Beijing 2008 by Gilbert Daverdisse

47. CLIMMAR The European association of Agriculture and Garden-Machinery Dealers and Service- companies: figures & ratios for average dealer and member 2007/08 Members Contact No Contact Source: Climmar Congress Cracow 2010. Model D

48. CLIMMAR OBJECTIVES  to make the profession known  to defend our interests  to inform the members  to quote the second-hand machines  to train the managers  to negociate with unions and management  to promote the dealerships  to let our messages be known  Involvement in training

50. Source: Climmar Congress Cracow 2010. Model D

57. Data of German HAG Congress: - German hourly rate of service in the agriculture: average: 41,9 €/h (between 38,0 – 45,5 €/h) - German hourly rate of service in the car industry: average: 56,5 €/h (between 49,75 – 76,00 €/h) Data of German HAG Congress: - German hourly rate of service in the agriculture: average: 41,9 €/h (between 38,0 – 45,5 €/h) - German hourly rate of service in the car industry: average: 56,5 €/h (between 49,75 – 76,00 €/h) The World 2008

58. Source: Climmar Congress Cracow 2010. Model D

59. * means not A-dealers, but average dealers Source: Climmar Congress Cracow 2010. Model D

60. * means not A-dealers, but average dealers Source: Climmar Congress Cracow 2010. Model D

66. EUROPEAN DEALERS APPRECIATE THEIR TRACTOR OPERATORS enquiry 2010

67. 5 COUNTRIES 947 ANSWERS DENMARK GERMANY FRANCE UNITED KINGDOM SWITZERLAND 120 286 295 133 113

68. 947 ANSWERS CASE CLAAS DEUTZ FENDT JOHN DEERE MASSEY FER. MC CORMICK NEW HOLLAND SAME VALTRA 9 17 12 14 0 24 2 16 24 26 43 29 44 35 12 34 17 22 16 8 17 9 21 13 0 22 7 0 35 25 21 44 42 16 41 9 27 11 19 8 12 29 21 9 16 0 8 95 105 83 152 125 37 137 35 73

69. -Representative’s power of ligitation settlements -Respect of autonomy -Readability and realism of strategie -Possibility of negotiating sales objectives -Manufacturer-dealer relations -Total relation -Profitability help -Willingness to improve weak points -Overall rancking Consideration of the dealer’s evaluation

70. -Answers by branch -After sales / Guarantees -Answers by productions -Computer services -Advertising and product support -The men -Procedures and terms of payment -Respect of undertaken commitments -Training -Availlability of managers and directors Consideration of the dealer’s evaluation

71. One of the evaluations

72. BRAND RESULTS SEND TO MANUFACTURERS

73. WHAT CLIMMAR DECIDED Each country decides what it publishes for its own results CLIMMAR does not publish countries results CLIMMAR publishes only overall results

74. Suggestion To be multi-faceted The World has to eat more. Machine - Spareparts - Service - Financial Services – Machine rentals

75. - Aspire to full range of machines - Organize good service and finance it - Your service be payed by the customer and by the manufacturer - Reprezent your interest jointly - Contact with Russian manufacturers If you don’t do these it will cost more Our own instance… Suggestion

76. This prezentation: http://www.axial.hu/CLIMMAR http://www.axial.hu/CLIMMAR Web side of AXIÁL Ltd.:www.axial.huwww.axial.hu My e-mail address: harsanyi@axial.hu My mobile phone: 00 36 30 9530 324

77. Zsolt Harsányi Vice-President of CLIMMAR Zsolt Harsányi Vice-President of CLIMMAR