Strategic and Competitive Advantages

Competitive Advantages

Randon has the following competitive advantages:

Market Position, Leadership and Global Reference
  • Randon, a global provider of transportation and logistics solutions, is focused on sectors of Brazil´s economy with important relevance in the global scenario, such as the ones of the primary sector (agribusiness and mining) and the industrial sectors;

  • The Company has important position in the markets in which it operates. Randon Implementos and Frasle, for instance, are among the world’s largest manufacturers in their respective markets and are market leaders in Latin America and Brazil;

  • All of the group’s other companies are important players in the Brazilian market, being the leader supplier of most of the items commercialized in the market;

  • The Company’s prominent position in its market segments, combined with its excellent brand recognition and the quality of its products, make it a benchmark in these areas, allowing it to influence market trends, increase profitability and find new markets abroad.

Market Diversification
  • Randon operates in the market of trailer and semi-trailers, rail freight cars, specialty vehicles, autoparts and financial services, exporting its products to over a hundred countries.
  • The Company’s products target different segments, including automakers and the auto parts aftermarket (auto parts and automotive systems) and end customer (trailers, railcars and specialty vehicles) markets.
  • The Company is not dependent on a single client segment or specific sector of the economy to perform, as its assembly line is structured to rapidly and flexibly change the product mix to meet the needs of those segments and sectors presenting the highest consumption potential.
High Level of Manufacturing Integration within the Company
  • Randon subsidiaries produce the main components needed to manufacture the Company’s products.
  • The integration between the Company and its subsidiaries provides synergies with excellent gains in productivity, process optimization, cost reduction and independence in equipment production.
  • Accordingly, the Company has the technological command of the greater part of its production chain. The bulk of the Company’s operations are located in Caxias do Sul, providing the Company with cost and logistic savings.
Parceiros Estratégicos de Classe Mundial
  • A Randon possui desde longa data associações com a Meritor (parceira da Randon na Master) e com a Jost Werke (parceira da Randon na Jost), que são empresas líderes mundiais em seus respectivos mercados de atuação;

  • Essas parcerias permitem o desenvolvimento conjunto de tecnologias de ponta, além de proporcionar um canal para a distribuição de seus produtos no mercado externo.

World-Class Strategic Partners
  • Randon has long-term partnerships established with Meritor (partner of Randon at Master) and with Jost Werke (partner of Randon at Jost), both world leaders in their respective markets.

  • These partnerships enable the transfer of state-of-the-art technology

  • to the Company, and guarantee a broad distribution channel for its products in the export market.

Cash Flow Generation Capacity and Financial Structure
  • Historically, Randon has recorded consistent cash flow generation, which allows a better debt control and the possibility to execute the investments needed to ensure sustained growth and the perpetuation of the business.

Qualified Management and Staff
  • Randon is managed by a team with many years of experience in the sectors where the Company operates.

  • The core management team has been with the Company for at least twenty years.

  • The Company invests regularly in the development of its human resources through a wide variety of training, technical and management courses with the objective of developing and retaining qualified personnel.

Strategy

The key elements of Randon’s strategy are:

Maintain leadership position in the Brazilian market
  • Randon plans to reach and maintain at least 30% of market share in the commercial trailer market.

  • The Company invests constantly on production optimization, reducing production bottlenecks, and improving industrial processes;

  • Randon also looks for expanding and modernizing its distribution network, as well as strengthening its image in Brazil as a distinguished player in road transport solutions.

Internationalization
  • To expand internationalization initiatives is one of Randon’s main goals, as the company sees in the foreign market great opportunities for business development;

  • Randon already has international presence and operates through its industrial plants in Argentina, the United States and China, as well through warehouses, international commercial offices and strategic partners in the African Continent.

Technological Innovation
  • The development and recognition of Randon brand as synonym of quality and better performance has only become possible due to the company’s technological innovation mindset.

  • The Company believes that developing processes and products through its own research team, transferring technology from partners and acquiring the latest technology from third parties leads to improvements in terms of quality, cost reductions and the production of goods with higher value added.

Diversification of the Product Portfolio
  • Randon has a wide variety of products, which allows a better diversification in its product portfolio as well as flexibility in its assembly line.
  • This characteristic allows the company to take advantage of market opportunities arising from the development of specific sectors of the economy, as well as to mitigate risks resulting from slowdowns in other sectors.
Strengthening its Relationship with Brazil´s auto industry
  • Randon plans to strengthen its relationship with local automakers, offering top quality and reliable products at competitive prices;

  • Narrowing these ties provides an opportunity to supply products to the plants of these manufacturers located outside Brazil as well as serve as reference for new businesses.

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