Mitas the leading tyre manufacturer
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1 Subsidiaries and production facilities 15 sales organisations, 3 plants in the Czech Republic, 1 plant in Serbia, 1 plant in Slovenia, 1 plant in USA Mitas the leading tyre manufacturer Andrew Mabin, Marketing and sales director October 6 th, 2015 Page 2 Mitas tyre Division Revenues 2014 Mitas tyre Division Key Facts Revenues EUR, million # 2 agricultural tyre mfg. in Europe 33,16% share of market in Europe (ETRMA 2014). Every 3rd agricultural tyre sold in Europe by European manufacturers is produced by Mitas # 1 harvester tyre manufacturer in Europe * Mitas revenues influenced by two factors: Revenues EUR, million * Close to 50% of harvesters in Europe are fitted with tyres produced by Mitas 25% share of market on tractors manufactured in Europe Unstable EUR exchange rates Decrease in production of Original Equipment Manufacturers Every 4th tractor produced in Europe is fitted with tyres produced by Mitas Page 3 Page 4
2 Mitas Brands Strategy Executing the Brand Transition Launch of Mitas Premium Mitas & Cultor: own brands Continental: Licensed (Ag only) Mitas acquired the Ag business unit from Continental in 2004 Trademark license agreement to produce Continental tyres ends 2019 Launch of Mitas Premium Building equity in an own premium brand Mitas Deploying two tier brand strategy: Mitas & Cultor Focusing on tyres for modern and highhorsepower machines Page 6 Mitas Premium OEM launch Timing in Europe Sales of agricultural tyres in Tons Continental and Mitas Since January 2015 Mitas Premium replaced all Continental branded tyres on new agricultural machinery produced by leading original equipment manufacturers Mitas Premium tyre line consists of rebranded Continental tyres and new products developed solely under Mitas brand Year Total(Mitas + Continental) BG Page 7 Page 8
3 Mitas Premium Replacement launch Following on the successful launch of Mitas Premium in OEM we will now be introducing this range in the replacement market Mitas Premium tyres are switching Continental for replacement market Significantly improved warranty conditions Mitas Premium radial agricultural tyres have the same technical characteristics and the same product name (e.g. AC65) as Continental radial agricultural tyres. One major difference though will be warranty conditions. NEW: Mitas is offering the best warranty conditions on the market: 6 years from date of production general warranty Free replacement if fault occurs during first 24 months Field Hazard warranty for first 36 months Starting from January 2016 on all Mitas Premium tyres. Terms and conditions apply. Page 9 Page 10 Mitas innovations - AirCell Mitas AirCell (Fendt VarioGrip Pro) received Agritechnica Gold Medal Mitas innovations and concepts Mitas started a cooperation with Fendt on the AirCell development 7 years ago AirCell is an integral part of the VarioGrip Pro along with pressure regulation system Idea of the inner tyre was originally patented in Other major manufacturers try to develop working solutions but only Mitas & Fendt succeded Page 12
4 Mitas innovations - Mitas position among tyre/track solutions Footprint and traction force of Mitas and rubber tracks are superior to those of traditional pneumatic tyres Mitas received EIMA Technical Innovation award SFT AC 70 T (IF technology) (Standard) Mitas aim is to measure and compare characteristics of Mitas and tracks Track Page 13 HC2000 (VF technology) Page 14 - Galileo Wheel Under The Hood Mitas goals for future development Avishay Novoplanski Cofounder and CTO Galileo Wheel Ltd. Israel 2016 goals: vs. Rubber tracks comparison - Field and lab measurements on footprint, traction force, etc. Announcement of new sizes and further development - Key sizes which should be developed as a priority 2017 goals: Evaluation of performance, pricing and market launch - Mitas aim is to have all data needed for decision over market launch available latest by the end of 2017 Page 15 16
5 The classic dilemma Track vs. Wheel
6 Standard Aspect Ratio, Comfort, and Side Stability A highprofile provides a smoother ride, at the expense of side stability and accurate steering A lowprofile provides accurate steering and good side stability at the expense of ride comfort and shock 3 Psi Ref 12 Psi
7 Lateral Stiffness Standard Tyre The Pneumatic Envelope All pneumatic tyres are either bias ply (diagonal) or radial They can roughly be described as a revolved U shape profile TheEnvelope (CupWheel) envelope by definition does not define it s max mathematical volume Should pressure increases The envelope will give
8 Air Pressure Vs Rolling Circumference Ride Comfort Calculating the rolling circumference is based on the loaded radius the distance between the wheel center and the ground The bigger the load the smaller the radius and the smaller the rolling circumference Rolling circumference = π X 2 X r stat. Mitas provides a smoother ride, comfort, improved work quality, and reduced machine wear Bigger footprint Better load distribution Greater traction The Tyre Improved stiffness matrices Increased safety Integral run-flat capability Higher efficiency Smoother ride Mitas Technical advantages Karel Štefek, Product Development Manager October 6 th, 2015 A track with no undercarriage
9 concept advantages Construction Innovative concept developed in cooperation between Mitas and Galileo Wheel Ltd. Larger footprint Gentle ground handling with lower and improved pressure distribution on the ground with reduced soil compaction Manufacturing Produced on same machines and curing presses as conventional tyres Same raw materials used as in conventional tyres production Greater tractive force Improved productivity and lower operational costs thanks to higher traction and power transfer to the ground Efficiency Mounted on standard rims available in the market. No additional costs Better lateral stability Superb handling and safety even at lower inflation pressure. Improved ride comfort Page 33 Page 34 development 3 sizes of developed so far: 280/70 R18 480/65 R28 600/65 R38 Mitas field measurements From lab test to field measurements Field tests of 28 and 38 in Europe Examining how the product runs out of R&D laboratories Head to head comparison of with standard, IF and VF tyres Pull bar tests (tractive force), footprint tests, ride comfort tests performs standard day to day field work Location: Rosovice, Czech Republic John Deere 6150R tractor July 2015 Page 35
10 480/65R28 testing results 600/65R38 testing results Inflation pressure 480/65 R28 IF480/65 R28 VF480/65 R28 480/65 R Footprint 480/65 R28 IF480/65 R28 VF480/65 R28 480/65 R Inflation pressure 600/65 R38 IF600/65 R38 VF600/65 R38 600/65 R Footprint 600/65 R38 IF600/65 R38 VF600/65 R38 600/65 R38 overall footprint: +56% over standard tyre +33% over IF tyre +25% over VF tyre Measurements done by Research Institute of Agricultural Engineering, p.r.i. Page /65R28 IF480/65R28 VF480/65R28 480/65R28 overall footprint: +62% over standard tyre +36% over IF tyre +19% over VF tyre Measurements done by Research Institute of Agricultural Engineering, p.r.i. Page /65R38 IF600/65R38 VF600/65R38 600/65R38 larger footprint benefits tractive force test results Larger footprint benefits: better traction improved fuel economy minimized soil compaction reduced ground pressure 480/65 R28 VF tyre Std. tyre IF tyre 480/65R28 tractive force: +12% over standard tyre +9% over IF tyre +2% over VF tyre A larger footprint of Mitas represents a larger contact area with the ground for increased traction and improved power transfer to the ground. 600/65 R38 VF tyre Std. tyre IF tyre 600/65R38 tractive force: +26% over standard tyre +17% over IF tyre +14% over VF tyre Page 39 Page 40 Tractive force at slippage 15% on hard dry soil Source: Research Institute of Agricultural Engineering, p.r.i.
11 tractive force advantages Greater tractive force produces: Less slippage Fuel savings Increased field capacity Improved ride live demo Tests we will see today: Tractive force - cultivation Lateral stability Ride comfort Greater tractive force of Mitas results in more traction and less slippage, producing a fuel savings and improve tyre and machine performance. Tractive force test - cultivation Page 41 Page 42
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