Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Türk Traktör — Investor Presentation (June 2009)
56 slides from Turk Traktor Ve Ziraat Makineleri A.s's investor presentation, June 2009
Slide 1: Investors Presentation June 2009
Türk Traktör Investors Presentation June/2009
Slide 2: Contents
Türk Traktör CONTENTS Türk Traktör – A Profile The Domestic Market Technology & Products CNH and The Export The Business Model Financials and Other Data Contacts 2
Slide 3: Contents
Türk Traktör CONTENTS Türk Traktör – A Profile The Domestic Market Technology & Products CNH and The Export The Business Model Financials and Other Data Contacts 3
Slide 4: Türk Traktör
Türk Traktör TÜRK TRAKTÖR Ø Türk Traktör was established in 1954 Ø The production facility, Sales & Marketing offices are located in Ankara on 282,800 m2 land, with a covered area of 82,126 m2 Ø Training & After sales facilities & warehouses are located around Turkey (i.e. Ankara, İzmir, Urfa, Çorlu
Slide 5: Shareholders
Türk Traktör SHAREHOLDERS Türk Traktör is a joint venture of Koç Group, the largest industrial conglomerate of Turkey, and CNH, one of the top farm equipment manufacturers worldwide. Koç Holding and CNH have equal control on the management of Türk Traktör. KOÇ HOLDİNG A.Ş. Ø Operates in the energy,
Slide 6: Koç History
Turk Traktor GA Koc HISTORY . Oracle The company’s Applications ERP name is changed production to""Turk Traktor modules are vache implemented. Egemak starts MakineleriA.S,” to sall tractors rae moses Manufacturi The first tractor Tork Traktor abissiest sone oduction in Fi exported for the mF Furey.
Slide 7: Contents
Türk Traktör CONTENTS Türk Traktör – A Profile The Domestic Market Technology & Products CNH and The Export The Business Model Financials and Other Data Contacts 7
Slide 8: Turkey: Main Indicators
Türk Traktör TURKEY : MAIN INDICATORS USA EU TURKEY TOTAL POPULATION (Million) 272 374 72 AGRICULTURAL POPULATION (Million) 6,6 18,5 24 AGRICULTURAL POPULATION RATIO (%) 2,4 4,9 33 AGRICULTURE SHARE IN GNP (%) 1,7 1,9 11 AGRICULTURE SHARE IN EMPLOYEMENT (%) 2,8 5 29 8
Slide 9: Turkish Agriculture: Cultivated Area
Türk Traktör TURKISH AGRICULTURE CULTIVATED AREA: 26,6 million ha = • 1.7% of total cultivated area in the world • 24% of EU- EU-27 • 137% of France 9
Slide 10: Turkish Agriculture
Türk Traktör TURKISH AGRICULTURE Ø Richness in variety of products Ø World leadership in many vegetable and fruit products Ø Important positions in the world rank for many kinds of crops (28 crops in the top ten, 15 crops in the top five, 6 crops in the top three and 4 crops in the first rank) World
Slide 11: Turkish Agriculture: Agricultural Production
Türk Traktör TURKISH AGRICULTURE AGRICULTURAL PRODUCTION: 35 billion € = 10% EU-27 60% France 11
Slide 12: Turkish Agriculture
İŞLETME YAPISI Türk Traktör TURKISH AGRICULTURE In spite of having big agro-ecological potential, the productivity and competitiveness are still low in Turkish agriculture mainly due to: * unsuitable farm structure - small size, low income * high agricultural population – more than 30% of the total
Slide 13: Tractor Ownership Status
İŞLETME YAPISI Türk Traktör TRACTOR OWNERSHIP STATUS Total : 3.075.515 agricultural holdings 3.021.190 have land 98% 968.982 have tractor 31,5% 68,5 % do not have tractor yet ! 13
Slide 14: Tractor Park in Turkey
Türk Traktör TRACTOR PARK IN TURKEY TOTAL 1.327.334 Units Ø More than half a million tractors are ready to be replaced because of their obsolete features. Average HP 58 HP Ø Old tractor usage causes 25% of productivity losses which increase cost of holdings. Ø Given the direct link between HP & mech
Slide 15: Machinery Intensity
İŞLETME YAPISI Türk Traktör MACHINERY INTENSITY Ø Machinery intensity rate, compared to tractor usage rate, is very low in Turkey. Number of implements per tractor and the specifications of the machinery are quite behind the values of developed countries. Mold Board Ploughs Cultivators Disc Harrows
Slide 16: Agricultural Subsidies in Turkey
Türk Traktör AGRICULTURAL SUBSIDIES IN TURKEY Subsidies paid by the government are categorized into 5 groups: 1. Area Based Subsidies By a certain value per ha, which is subject to change year by year. Topics are “Direct Income Support”, “Diesel Support” and “Fertilizer Support”. 2. Deficit Payment
Slide 17: Growth Potential in Turkey
Türk Traktör GROWTH POTENTIAL IN TURKEY Ø Economic Development Domestic tractor sales have a tendency to move in line with the performance of the economy, but growing faster than GDP itself. The Turkish economy is estimated to grow 5% per annum in the coming years by OECD. Declining real interest ra
Slide 18: Tractor Market in Turkey
Türk Traktör TRACTOR MARKET IN TURKEY Purchases for investment purpose Improvement in 60000 Increase in in the high inflation long term retail interest rates enviroment 53.922 54.731 financing by 40% 50000 49.297 42.033 43.706 39.571 40000 34.525 34.541 31.589 33.989 28.770 29.110 30000 21.725 24.95
Slide 19: Tractor Market in Turkey - Competition
Türk Traktör TRACTOR MARKET IN TURKEY - COMPETITION 19
Slide 20: Tractor Market in Turkey - Competition
Türk Traktör TRACTOR MARKET IN TURKEY - COMPETITION Ø In 2001, there were only 4 brands in domestic market but now 37 brands compete in the market. Ø Domestic tractor market was almost a duopoly (TTF and UZEL) commanding a total market share of 68.7% in 2007. Ø Almost every major player in the tract
Slide 21: Türk Traktör in Domestic Market
Türk Traktör TÜRK TRAKTÖR IN DOMESTIC MARKET 2008 TRACTORSALES 2009/6 TRACTOR SALES 4.459 1.176 17% 21% 5.224 13.497 3.004 19% 50% 1.241 54% 22% 3.842 179 14% 3% NH + CIH MF Other Local Producers Other Importers NH + CIH MF Other Local Producers Other Importers Ø Company has a strong dealer network;
Slide 22: Contents
Türk Traktör CONTENTS Türk Traktör – A Profile The Domestic Market Technology & Products CNH and The Export The Business Model Financials and Other Data Contacts 22
Slide 23: Manufacturing Technology
Türk Traktör MANUFACTURING TECHNOLOGY Ø Türk Traktör is the first in Turkey to make extensive use of Flexible Manufacturing Systems (FMS), which employs sophisticated control systems and robotized manufacturing units for its production. This approach grants to the factory a very high degree of flexi
Slide 24: Manufacturing Technology
Türk Traktör MANUFACTURING TECHNOLOGY Paintshop Engine Assembly Line Ø Invested over USD 100 million in the previous decade, Türk Traktör features an in-house engine production unit as well as one of the most modern paintshops in Turkey. Ø Coupled with automated thermal processing, painting and asse
Slide 25: R&D Activities
Türk Traktör R & D ACTIVITIES Ø Component Test Laboratory Ø Front Hood Latching and Durability Test Ø Suspended Pedal Endurance Test Ø AVL Chassis Dynamometer Ø Engine Test System Ø Quick Prototyping Ø Bump Tests Ø Field Tests 25
Slide 26: Product Line – Locally Manufactured Tractors
Türk Traktör PRODUCT LINE – LOCALLY MANUFACTURED TRACTORS A) LOCALLY MANUFACTURED TRACTORS Ø 3 tractor series that the Company manufactures locally are TT (small, launched in 2004), 56 (medium, launched in 1989), TD/JX (bigger, launched in 2002 domestically and in 2003 abroad). Ø JX tractors are exp
Slide 27: The Main Locally Manufactured Tractors
Türk Traktör THE MAIN LOCALLY MANUFACTURED TRACTORS TT SERIES 56 SERIES TD SERIES JX SERIES 27
Slide 28: The Speciality Tractors
Türk Traktör THE SPECIALITY TRACTORS TT Narrow TT Orchard Ø We aim to manufacture the most suitable products for our customers. TD Narrow TD Straddle TD High Clearance JX Straddle JX High Clearance Ø We therefore design and produce special purpose versions of our tractors to cater for all the main s
Slide 29: Product Line – Imported Tractors NH Brand
Türk Traktör PRODUCT LINE – IMPORTED TRACTORS B) IMPORTED TRACTORS – NH BRAND Ø New Holland brand tractors in the range of 35-270 HP for the local market. 29
Slide 30: The Main Imported Tractors
Türk Traktör THE MAIN IMPORTED TRACTORS T3000 SERIES T4000 SERIES T5000 SERIES T6000 SERIES T7000 SERIES T8000 SERIES 30
Slide 31: Product Line – Imported Tractors Case IH Brand
Türk Traktör PRODUCT LINE – IMPORTED TRACTORS C) IMPORTED TRACTORS - CASE IH BRAND Ø Other brand of the Company, launched in the domestic market in September 2007 Ø Sales volume reached 669 units at the end of 2008 (representing 2,48% in the total TIV) 31
Slide 32: The Main Case IH Tractors
Türk Traktör THE MAIN CASE IH TRACTORS MAXXUM SERIES PUMA SERIES CVX SERIES MAGNUM SERIES 32
Slide 33: Product Line – Agricultural Machinery
Türk Traktör PRODUCT LINE – AGRICULTURAL MACHINERY D) AGRICULTURAL MACHINERY Ø Main products are combine harvesters, cotton pickers, balers & other plant equipment. 33
Slide 34: Product Line – Agricultural Machinery
Türk Traktör PRODUCT LINE – AGRICULTURAL MACHINERY New Holland New Holland Self- Self- New Holland Self- Self- New Holland Berthoud Sprayer Propelled Forage Propelled Grape- Grape-Olive Telehandlers Attachments Combine Harvesters Harvesters Harvesters New Holland Balers New Holland Big Balers New Ho
Slide 35: Product Line – Agricultural Machinery
Türk Traktör PRODUCT LINE – AGRICULTURAL MACHINERY Case IH 420 - 620 IH AFX Combine Harvesters 4-5-6-rows Cotton Pickers AFX 2377 – AFX 2388 Case IH 2022 35 Case IH SPX 3320 2-rows Cotton Pickers Self-Propelled Sprayers
Slide 36: Other Manufactured Products
Türk Traktör OTHER MANUFACTURED PRODUCTS TRANSMISSION ENGINE Ø From a product content point of view, the two most important components of any tractor are the engine and, even more so, the driveline. Ø Türk Traktör is the only plant within the CNH world to manufacture both the engine and the transmis
Slide 37: Contents
Türk Traktör CONTENTS Türk Traktör – A Profile The Domestic Market Technology & Products CNH and The Export The Business Model Financials and Other Data Contacts 37
Slide 38: Position within CNH
Türk Traktör POSITION WITHIN CNH Ø Türk Traktör is the only engineering centre in the world for TD/JX Series, within the CNH Group. Ø Responsible for all types of improvement and development activities for these products. Ø The worldwide engineering centre and the sole production centre for the tran
Slide 39: Position within CNH
Türk Traktör POSITION WITHIN CNH Ø Capable of developing its own manufacturing technologies. Ø The moulds, templates, tools and special-purpose benches used in manufacturing are designed and produced within the factory, which was granted the “Circle of Excellence” award by CNH in 2004 following the
Slide 40: Export Tractors
Türk Traktör EXPORT TRACTORS Ø Türk Traktör exports its tractors through CNH’s well established global sales network. Ø The main export product is the TD/JX series, which presents the peculiarity of being sold almost in every market of the world, from the most sophisticated (e.g. USA) to the likes o
Slide 41: Contents
Türk Traktör CONTENTS Türk Traktör – A Profile The Domestic Market Technology & Products CNH and The Export The Business Model Financials and Other Data Contacts 41
Slide 42: Business Model
Türk Traktör BUSINESS MODEL Ø Türk Traktör aims primarily to defend its premium price image and its technological prominence over the other local competitors, continuously investing in R&D and in market intelligence. Ø It strives, at the same time, to compete at the highest level with the other inte
Slide 43: Human Resources
Türk Traktör HUMAN RESOURCES Ø Türk Traktör multinational status is reflected by the presence, within its workforce, of specialists with international experience in several different fields. Ø For Türk Traktör, its employees are as valuable as its customers. Among the candidates wishing to work in T
Slide 44: Contents
Türk Traktör CONTENTS Türk Traktör – A Profile The Domestic Market Technology & Products CNH and The Export The Business Model Financials and Other Data Contacts 44
Slide 45: Türk Traktör Sales
Türk Traktör TÜRK TRAKTÖR SALES 45
Slide 46: Financial Highlights
Türk Traktör FINANCIAL HIGHLIGHTS 46
Slide 47: Income Statements of 2008/6 & 2009/6
Türk Traktör INCOME STATEMENTS OF 2008/6 & 2009/6 47
Slide 48: Balance Sheets of 2008 FY & 2009/6
Türk Traktör BALANCE SHEETS OF 2008 FY & 2009/6 48
Slide 49: Net Financial Position
Türk Traktör NET FINANCIAL POSITION 49
Slide 50: Financial Performance
Türk Traktör FINANCIAL PERFORMANCE 50
Slide 51: Hedging Policy
Türk Traktör HEDGING POLICY Ø Türk Traktör strives to achieve a currency hedging of its industrial and commercial operations by adjusting the purchasing turnover denominated in (or indexed to) Euro in order to match its export turnover (which is almost entirely denominated in Euro) Ø Aside from achi
Slide 52: Dividend
Türk Traktör DIVIDEND Ø According to the agreement between Koç Holding and CNH Global NV dated 22 April 1998, the Parties adopted for the Company a “Dividend Policy” that provides, as a matter of principle, for the distribution of dividends to the shareholders in the rate of 60% of the after tax pro
Slide 53: Contents
Türk Traktör CONTENTS Türk Traktör – A Profile The Domestic Market Technology & Products CNH and The Export The Business Model Financials and Other Data Contacts 53
Slide 54: Contacts
Türk Traktör CONTACTS q Hakkı AKKAN General Manager 0090 312 2110582 akkan@turktraktor.com.tr q Marco VOTTA Chief Financial Officer 0090 312 2110434 marcov@turktraktor.com.tr q Pınar AKYILDIZ Financial Control & Investor Relations Manager 0090 312 2110190 pinarakyildiz@turktraktor.com.tr 54
Slide 55: Let's meet on our Website
Türk Traktör Let’s meet on our Website... www.turktraktor.com.tr 55
Slide 56: Disclaimer
Türk Traktör DISCLAIMER This presentation contains forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of va