AMA Group
Business Plan 2014 – 2018 Summary
San Martino in Rio, January 2014
Executive Summary
Summary
Main activity:
The supply of
components for
Off Highway
Vehicles ( Ag
Machines,
Earthmoving
Machines, Garden
Machines)
Observation
AMA Group has been active in the Ag Machines business since 1967. In that year Mr. Luciano
Malavolti, founder of the company and President, focused the business on the spare parts and
components for AG Machines, Earth Moving Machines and Garden Machines. The AMA Group
mission « Moving the world with our components>> correctly represents that we serve over
80,000 customers in 90 different countries, with an assortment of more than 100,000 standard
items for After Market Customers and 13 different lines of products for OEM’s with an
organization in 18 countries.
Product:
Components for
OEM (Original
Equipment
Manufacturers)
& After Market
Customers
As the activity is quite complex, the portfolio is
wide; the After Market and OEM types of
customer are different, AMA Group is organized
in five “Business Unit” focused on specific
products:





BU Ag Components
BU Cabin & Electric
BU Seats & Steering Wheels
BU Fluid Power
BU Garden
This division of the group in 5 business units has helped the management in focusing the
attention on the customers needs, has created easy and quick relations between customers and
the group, especially when the themes are technical and specific.
Strictly confidential
-2-
Executive Summary
Summary
Market:
The OEM & AM are
driven by different
growing rates. The
OEM is growing
faster than the
After Market.
The domestic
market is
shrinking a little
while the export is
enlarging.
Observation
In 2013 the OEM business (Original Equipment Manufacturers) and After Market (AM) increased
by 9% and 12% compared with 2012. The OEM Business in the AMA Group had a compound
annual growth rate (CARG) in the period 2010-2013 of 10.6%, while for the period 2014-2018
we estimate a CAGR of 8.5%. For the After Market in the period 2010-2013 the AMA group had
a CAGR of 4.6% while for the period 2014-2018 we estimate a CAGR of 6.6%. In 2013 in Italy
the market was in recession while the business in export increased.
Competition:
In the OEM business there are many competitors and the AMA Group has a 3% market share.
Not high in both
market, OEM &
AM, but with
different level of
concentration
To the contrary in the AM (farmer and repair shop) the market leaders in each country have a
Strictly confidential
high share of the market . In the After Market Business (focusing on garden products) the
number of players (among them AMA) is not so high but there are a lot of small players.
-3-
Executive Summary
Summary
Highlights:
General improving
of all the ratio. In
particular the net
financial debt to
EBITDA is 4,5 in
the 2013
Observation
In 2010 AMA Group rescheduled its debt position , this was necesseted by the economic crisis
of 2008-2009. Since that period AMA has increased the sales and the margins,
reduced
debt,
his
and
net
financial
increased
the
Equity. In 2013 all the ratios
improved even though if the
group
made
important
investiments.
High Lights
Sales
Growth rate
EBITDA
2011
2012
E 2013
136.576.036
129.187.955
136.749.530
18,41%
-5,41%
5,85%
15.066.001
(% vdp)
11,03%
Net Financial Debt
Net Financial Debt/Equity
Net Financial Debt/EBITDA
76.068.462
3,53
5,05
14.350.739
11,11%
67.390.567
2,78
4,70
14.342.558
10,49%
65.078.071
2,29
4,54
As a consequence of all the work done to enter as supplier to in the biggest international
Outlook :
Due to the
efficiency benefits
of investments of
over 14 mln. € we
estimate an
increase of sales
and of margins.
players in Off highway business and to the orders already in hand for the period 2014 and
2015, we estimate a good growth for the near future.
High Lights
Sales
Growth rate
EBITDA
(% vdp)
Net Financial Debt
Net Financial Debt/Equity
Net Financial Debt/EBITDA
Strictly confidential
E2014
E2015
E2016
E2017
E2018
151.608.470
167.908.320
181.553.410
192.969.691
204.697.900
10,9%
18.289.550
12,1%
68.908.659
2,29
3,77
10,8%
23.131.581
13,8%
70.436.124
2,05
3,05
8,1%
26.797.981
14,8%
64.318.348
1,56
2,40
6,3%
29.446.082
15,3%
56.006.578
1,12
1,90
6,1%
31.987.388
15,6%
45.988.739
0,75
1,44
-4-
AMA Group: Highlights
AMA SpA Shareholders
24,18%
115
110
24,98%
24,95%
100
2010
Malavolti Luciano
Malavolti Alessandro
77
PEOPLE
129
130
120
137
137
140
25,89%
AMA Group: 880 People
(31/12/2013)
Sales(€/mln)
2011
2012
E 2013
803
PEOPPLE
Carnevali Lena
Malavolti Isabella
DIVISIONI PRODUTTIVE
Board of Directors
Name
Office
Malavolti Luciano
President
Malavolti Alessandro
Vice President
C.E.O.
Malavolti Isabella
Director
Resp. for the Planning
Of the production
Medici Nicoletta
Ernesto Farioli
Strictly confidential
Director
Resp. for Organization,
HR & IT
Director
Resp. for the Facility Manag.
& Security
Sales by Area
Nord America
5%
America
Centrale e
America del
Sud
5%
Asia
2%
564
FILIALI DISTRIBUTIVE
AMA People by Country
Africa &
Medio
Oriente
2%
179
124
Europa
86%
Italia
India
Europa
7
6
Cina
Stati Uniti
-5-
AMA Group : History
Before
‘90
‘90
1967: AMA Spa was founded; 1983: ISI Srl was acquired; 1985: Agrifer Srl was founded;
1987: Imel Srl & Formplast Srl were founded; 1988: Sara Srl was acquired.
1990: Seat Srl was founded; 1994: Merger of AMA-Agrifer; 1996: Seat Plastic was purchased; 1997:
AMA South America office was opened; 1999: Danitrading (DK) was founded; 1999: AMA India was
founded; 1999: AMA France was founded.
From
2000
to 2004
From
2005
to 2009
From
2010
to present
Strictly confidential
2001: AMA Ireland & Agrishop Norway were founded; 2001: Stampotecnica Srl was acquired;
2002: Okoprofi was founded; 2003: Pertex was acquired; 2004: AMA Composites Srl & AMA
España were founded; AMA Portugal was acquired; AMA Cardin Srl, AMA Slovakia & AMA UK were
founded; Kratos Srl was acquired; merger of AMA-ISI-IMEL.
2006: AMA USA, AMA Shanghai, AMA Deutschland, AMA Instruments were founded; Prama Snc was
acquired; 2007: AMA Romania, AMA Czech, AMA Adriatic, AMA Cabins were founded, Gibi Car Srl was
acquired; 2008: Nuova Azzimondi and Friggeri Srl were acquired; AMA Poland & AMA Turkey were
founded; 2009: AMA France was closed, AMA Deutschland and Agrishop Norway were sold.
2010: Merger of AMA – AMA Holding-AMA Cardin & Merger of Seat-Gibi Car; 2012: The Cuba Office was
opened; Merger of AMA Ireland-AMA UK; 2013: AMA Russia was founded.
-6-
AMA Group: MANUFACTURING PLANTS in Italy & in the World
MANUFACTURING PLANT – ITALY
AMA – San Martino in Rio (RE)
SEAT – Campagnola Emilia (RE) - GIBICAR Division – Campagnola Emilia (RE)
IMEL Division – Piacenza, San Martino in Rio (RE)
PERTEX Division – Crevalcore (BO)
AMA Cabins – Campogalliano (MO) - AMA COMPOSITES – Campogalliano (MO)
ISI Division – San Martino in Rio (RE) - KRATOS – San Martino in Rio (RE)
LO SNODO – Rolo (RE)
CARDAN Division – Casoli (CH)
NAF – Quattro Castella (RE) - SARA Division – Collepepe (PG)
MANUFACTURING PLANTS – WORLDWIDE
AMA
AMA
AMA
AMA
ADRIATIC – Sarajevo (BIH)
SHANGHAI – Shanghai (RC)
USA – Indianapolis (IN) USA
INDIA – Ludhiana (IND)
Strictly confidential
-7-
AMA Group: LOGISTIC PLANTS in Italy & in the World
LOGISTIC PLANTS– WORLDWIDE
AMA
AMA
AMA
AMA
AMA
AMA
AMA
CZECH– Batnovice (CZR)
SLOVAKIA – Ladomerska (SK)
ESPAÑA – Zaragoza (E)
IRELAND & UK – Cavan (IRL)
RUSSIA– Krasnodar (RU)
PORTUGAL – Alfena (P)
ADRIATIC – Sarajevo (BIH)
AMA TURKEY – Istanbul (TR)
AMA SUD AMERICA Office – Montevideo (U)
CUBA Office – Havana (C)
UCRAINA Office – Kiev (UA)
LOGISTIC PLANT– ITALY
AMA – Prato di Correggio (RE)
Strictly confidential
-8-
AMA GROUP: Group structure
Ama S.p.A.
75%
Ama Ireland
56%
Ama Composites
S.r.l.
Ama Shanghai
100%
Agristore Italia S.r.l.
100%
75%
Ama Espana
75%
Lo Snodo S.r.l.
Ama Kratos S.r.l.
67,5%
Agristore Modena
S.r.l.
51%
45%
Dani Trading
S.r.l.
Agristore SARA
S.rl.l
85%
Agristore Piacenza
S.rl.l
10%
75%
Ama Portugal
90%
Seat S.r.l.
Ama RO
95,55%
Gardenstore
Novellara S.r.l.
85%
70%
Ama Slovakia
75%
Seat Plastic S.r.l.
Ama Poland
80%
Agristore OLEA
S.r.l.
90%
80%
Ama Adriatic
Ama Turkey
72,5%
Agristore Klv S.r.l.
50,1%
80%
Ama Czech
Ama India
Enterprise PVT
75%
20%
Elco S.r.l.
Oekoprofi
67,5%
62,5% Azzimondi e Friggeri
AMA Russia
Strictly confidential
51,0%
Consolidated
Companies
Not Consolidated
Companies
-9-
AMA Group: Business Units Structure
BUSINESS UNIT
2013 Sales
Companies / DIVISION
Production
People
3P linkages (P)
Cardan shafts (P)
Soil working parts(P)
Parts for
Engine/Trasmission (T)
Various Agri parts (T)
Agri Hardware (T)
69,2 mil €
AMA div. Agri, AMA div. Consumer,
AMA div. Technic, AMA div. Sara,
AMA div. Cardan AMA India Ltd, AMA
Shanghai Ltd, Lo Snodo Srl, Seat
Plastic, NAF Srl
320
Cabin & Electric
Wirings (P)
Instruments (P)
Complete Cabins (P)
Panneling (P)
Steering Shafts and
Column assembly (P)
33,3 mil €
AMA div. IMEL, AMA div. IMEL PC,
AMA div. Cabin, AMA Composites Srl,
AMA div. Pertex, AMA div.
Instruments, AMA Adriatic doo wiring
div.
166
Seats and
Steering Wheels
Driver Seats (P)
Passenger Seats (P)
17,9 mil €
Seat Srl, AMA Adriatic doo Seats div.
77
Fluid Power
Fluid power cylinder (P)
Other fluid power
components (T)
19,7 mil €
AMA div. ISI, AMA Kratos Srl, AMA
Refluid div., AMA Adriatic doo Hydr.
div.
75
Gardening
Garden Machines (P)
Spare parts for Garden
Machines (T)
16,0 mil €
AMA Garden div.
14
Agri Components
Strictly confidential
Products
- 10 -
AMA Group : Matrix Products / Markets
BUSINESS UNIT
Products
AGRI Machines
components
Customers/
COMMERCIAL
Network
Cabins & Electric
Seats & Steering Wheels
Fluid Power
Gardening
Strictly confidential
AFTER MARKET
Customers
Dealer Italy
Dealer Export
Agristore Shops
Wholesalers
OEM Customers
Agri Machines
Earth Moving Machines
Fork Lifts
Special Machines
- 11 -
Business Plan: Group Balance Sheet
Action Plan: Investment period 2014-2018
During the period 2014-2018 investments of around €
14 MM will be made:
Distribuzione
Investimenti
Investments
11%
22%
11%
11%
45%
2014
2015
2016
2017
2018
The investments directly made in order to support the
foreign branches represent only in a figurative way a
minority in comparison with the Italian’s ones. Indeed,
part of those investments are directed to the foreign
market served by AMA branches.
2014-2018
Società/
Divisione
fCompany/Division
AMA Spa
AMA Composites Srl
Lo Snodo Srl
Kratos Srl
Nuova Azzimondi e Friggeri Srl
Seat Srl
Seat Plastic Srl
AMA India
AMA Ireland
AMA Portugal
AMA Espana
AMA Usa
AMA Turkey
AMA Shanghai
AMA Adriatic
AMA Poland
AMA Czech
AMA Slovakia
AMA Romania
AMA Russia
Oekoprofi
Totale
Strictly confidential
Totale
%
5.129.500
36,8%
780.000
5,6%
205.000
1,5%
365.000
2,6%
1.670.000
12,0%
1.840.000
13,2%
700.000
5,0%
770.000
5,5%
285.000
2,0%
75.000
0,5%
500.000
3,6%
30.000
0,2%
1.295.000
9,3%
50.000
0,4%
250.000
1,8%
13.944.500
100,0%
- 12 -
Industrial Plan: International Development Strategies

Strategies on international markets
controlled by foreign branches:
Presence on the international markets
 India
 China
 Bosnia
 Turkey e Middle East
 Brazil e Latin America
 Russia and ex Soviet republics

Strategies on international markets
uncontrolled:
 Japan and South Korea
 Africa
Strictly confidential
- 13 -
Business Plan: Highlights
Highlights
2011
Value of Production
E2013
E2014
E2015
E2016
E2017
E2018
136.576.036 129.187.955 136.749.530 151.608.470 167.908.320 181.553.410 192.969.691 204.697.900
Growth rate
EBITDA
(%vop)
Net Income
(%vop)
Highlights
2012
18,41%
-5,41%
5,85%
10,90%
10,80%
8,10%
6,30%
6,10%
15.066.001
14.350.739
14.342.558
18.289.550
23.131.581
26.797.981
29.446.082
31.987.388
11,03%
11,11%
10,49%
12,10%
13,80%
14,80%
15,30%
15,60%
5.120.046
2.946.958
2.599.768
3.899.140
6.729.841
9.262.056
11.400.897
13.983.216
3,75%
2,28%
1,90%
2,57%
4,01%
5,10%
5,91%
6,83%
Valore
dellaof
produzione
Value
Production
Ebitda
250.000.000
35.000.000
30.000.000
200.000.000
25.000.000
150.000.000
20.000.000
15.000.000
100.000.000
10.000.000
50.000.000
5.000.000
2011
Strictly confidential
2012
E 2013 E2014
E2015
E2016
E2017 E2018
2011
2012
E 2013
E2014
E2015
E2016
E2017
E2018
- 14 -
Business Plan: Main Ratios
Main Ratios
Highlights
2011
2012
E2013
E2014
E2015
E2016
E2017
E2018
PFN/PN
3,53
2,78
2,29
2,29
2,05
1,56
1,12
0,75
PFN/EBITDA
5,05
4,70
4,54
3,77
3,05
2,40
1,90
1,44
PFN / PN
PFN / EBITDA
4,00
6,00
5,50
5,00
4,50
4,00
3,50
3,00
2,50
2,00
1,50
1,00
0,50
0,00
3,50
3,00
2,50
2,00
1,50
1,00
0,50
0,00
2011
Strictly confidential
2012
E 2013
E2014
E2015
E2016
E2017
E2018
2011
2012
E 2013
E2014
E2015
E2016
E2017
E2018
- 15 -
Business Plan: Group Income Statement
Area
Personnel
costs
5 years plan
The following chart shows the trend of the number of employees from 2014 to 2018.
In this 5 years period AMA expect to hire 242 new people, of which 183 direct and 55 indirect
Economic Assumptions
workers.
Strictly confidential
Years
2014
2015
2016
2017
2018
Direct Labor
Indirect Labor
Total
653
319
972
714
334
1048
769
344
1113
804
358
1162
840
374
1214
- 16 -