Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK

Turk Traktor Ve Ziraat Makineleri A.s — FY2016 Earnings Presentation

26 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Feb 13, 2017

  1. Slide 1: Analyst Meeting

    1 Analyst Meeting 13.02.2017

  2. Slide 2: TürkTraktör at a Glance

    2 TürkTraktör at a Glance Established in 1954, market TürkTraktör is currently the biggest tractor manufacturer leader of Turkey export for to more 10 first years R&D than center 130 widest of countries product Turkey range in its 62 annual and sector production years dealer capacity of of network 5

  3. Slide 3: Export Penetration

    3 Export Penetration Continuously increasing export penetration, Turkey’s biggest and the most diversified tractor exporter Kyrgyzstan Tajikistan Nepal Niger Guinea Benin Burkina Faso Bangladesh WHERE AREN’T WE, YET…

  4. Slide 4: Highlights in 2016

    4 Highlights in 2016 800.000th tractor 400.000th engine manufactured. İstanbul Construction Equipment Facilities opened in Gebze. Ankara Plant achieved Bronze status as a result of audits in main production processes carried out with World Class Manufacturing – WCM methodology.

  5. Slide 5: Highlights in 2016 - Awards

    5 Highlights in 2016 - Awards Being an uninterrupted champion of the Machinery Components category since 2012, TürkTraktör, ranked the 27th in the top 1000 exporters list of the Turkish Exporters Assembly (TIM). ERP Transformation Project as one of the biggest and most comprehensive ERP projects of

  6. Slide 6: Highlights in 2016: We keep breaking records

    6 Highlights in 2016 We keep breaking records… 3.443 Total 2.469 974 mio TL Revenue mio TL mio TL 14% 4% 11% 742 2015 mio TL 2016 605 mio TL 512 455 416 mio TL 364 mio TL mio TL 370 mio TL 257 mio TL 23% mio TL 25% 23% %44 Gross Profit Operating Profit EBITDA Net Profit

  7. Slide 7: Breakdown of Tractor Sales

    7 Breakdown of Tractor Sales Total Sales Imported in 2016 Tractors 46.230 Locally (78 HP – 380 HP) tractors Manufactured 1% Tractors (48 HP – 140 HP) 99% Locally Manufactured Tractors Tractors sold to Export Market Tractors sold to (48 HP – 115 HP) Local Market (48 HP – 140 HP) 28% 72%

  8. Slide 8: Turkey's Agriculture Sector Position with Numbers

    8 Turkey Position in the World (source : TURKSTAT & FAO & EUROSTAT) Turkey’s Agriculture Sector Position with Numbers 7th Turkey is placed on the top ranks in the world in terms of the production of crop. Turkey’s agricultural economy in the world WATERMELON 1st NUT PISTACHIO APPLE Turkey’s agricult

  9. Slide 9: Agriculture Sector in Turkey

    9 Agriculture Sector in Turkey (source : TURKSTAT & www.tarim.gov.tr) 2016(9) Share of AG Turkey Agriculture (%) Employment (million) 27.6 5.7 20,5 GDP (billion TL) 1.842 116 6,3 Export (billion $) 104 11.3 10,9 Import (billion $) 146 8.1 5,5 Stable Government Support to Agriculture (billion TL) 10%

  10. Slide 10: Financing the Agricultural Sector

    10 Financing the Agricultural Sector (source : Ziraat Bank) Ziraat Bank’s interest rate subsidy will continue in 2017 up to 50.000 TL of total tractor amount remaining part of total loan amount 50% 25% Ziraat Bank Position in the Sector (mio TL) 000 69% 70% 69% 000 63% 61% 61% 60% 60% 000 000 50% 00

  11. Slide 11: Global Tractor Sales Volume

    11 Global Tractor Sales Volume (source : Systematics, thousand units) Europe North America (4%) (3%) (3%) China 159 152 133 130 (11%) 236 229 211 213 282 298 277 247 2014 2015 2015/11 2016/11 2014 2015 2015/11 2016/11 Turkey 2014 2015 2015/11 2016/11 Others India (12%) 67 63 (17%) 59 59 (5%) 587 534

  12. Slide 12: Tractor Market in Turkey

    12 Tractor Market in Turkey (units) (source : TURKSTAT) Biggest TürkTraktör Competitor TürkTraktör TürkTraktör Biggest Biggest 32.671 7.183 29.371 32.134 Competitor Competitor 47% 10% 49% 48% 8.446 6.800 14% 10% 2014 2015 2016 Other Manufacturers Other Other Importers 7.113 Importers Manufacturers 2

  13. Slide 13: TürkTraktör Share of Domestic Market, Production and Exports

    13 Domestic Market (source : TARMAKBİR) Local Production in 2016 (units) Exportation in 2016 (units) Other Other TürkTraktör TürkTraktör Exporters Manufacturers 12.625 46.031 1.513 20.884 89% 69% 11% 31% TürkTraktör covers 69% of the total TürkTraktör alone covers 89% of production in Turkey where 6

  14. Slide 14: Operational Performance – Production (units)

    14 Operational Performance – Production (units) Production (tractor - units) -3% 45.823 47.536 46.031 2014 2015 2016 Production (engine - units) -2% 32.939 37.944 37.038 2014 2015 2016

  15. Slide 15: Operational Performance – Sales (units)

    15 Operational Performance – Sales (units) Sales (tractor - units) -2% 45.893 47.124 46.230 15.866 14.122 -11% 12.625 Export Sales Local Sales 30.027 33.002 33.605 2% 2014 2015 2016 Sales (combine - units) 0,1% 391 315 316 2014 2015 2016

  16. Slide 16: Total Sales Revenue (mio TL)

    16 Total Sales Revenue (mio TL) 11% 3.443 3.103 2.723 974 939 933 4% 886 938 940 2.469 798 852 760 2.164 693 262 680 265 1.790 199 269 257 269 214 180 14% 479 599 583 503 617 676 500 675 20151Q 20152Q 20153Q 20154Q 20161Q 20162Q 20163Q 20164Q 2014 2015 2016 Local Export

  17. Slide 17: Profitability (mio TL) – Gross Profit

    17 Profitability (mio TL) 800 23,4% 22,6% 25,0% 21,6% 21,7% 700 20,2% 20,4% 20,2% 18,9% 19,5% 20,0% 600 18,0% 16,9% 500 23% 15,0% 400 742 10,0% 300 605 200 489 5,0% 100 151 172 165 181 190 159 213 117 0 0,0% 20151Q 20152Q 20153Q 20154Q 20161Q 20162Q 20163Q 20164Q 2014 2015 2016 Gross profit Gross Ma

  18. Slide 18: Profitability (mio TL) – EBITDA

    18 Profitability (mio TL) 600 16,3% 14,9% 14,2% 14,7% 14,7% 500 14,1% 13,9% 14,2% 15,0% 13,4% 12,1% 400 11,0% 23% 10,0% 300 512 200 416 331 5,0% 100 113 121 106 126 138 111 138 77 0 0,0% 20151Q 20152Q 20153Q 20154Q 20161Q 20162Q 20163Q 20164Q 2014 2015 2016 EBITDA EBITDA Margin

  19. Slide 19: Profitability (mio TL) – Profit Before Tax

    19 Profitability (mio TL) 450 400 29% 11,6% 11,1% 11,5% 11,2% 11,2% 11,3% 350 10,8% 9,9% 300 9,4% 250 7,9% 9,7% 8,0% 200 388 150 293 302 100 50 79 80 88 99 108 76 106 55 0 0,0% 20151Q 20152Q 20153Q 20154Q 20161Q 20162Q 20163Q 20164Q 2014 2015 2016 Profit Before Tax Profit Before Tax Margin

  20. Slide 20: Profitability (mio TL) – Net Profit

    20 Profitability (mio TL) 400 14,3% 350 44% 10,5% 10,7% 300 10,0% 9,6% 9,1% 9,1% 250 8,6% 7,6% 8,0% 200 6,4% 8,3% 370 150 261 257 100 134 50 68 65 80 80 62 94 0 44 0,0% 20151Q 20152Q 20153Q 20154Q 20161Q 20162Q 20163Q 20164Q 2014 2015 2016 Net Profit Net Margin

  21. Slide 21: Working Capital (mio TL)

    21 Working Capital (mio TL) 2014 2015 2016 2.000 19,0% 20,0% 18,4% 17,4% 1.500 716 448 441 15,0% 1.000 654 476 461 500 10,0% 436 518 556 - -449 -552 -494 5,0% -500 Inventories Trade Receivables (net) -1.000 0,0% Trade Payables (net) Net Working Capital* / Revenue *The figure is 12 months average.

  22. Slide 22: Net Financial Position (mio TL)

    22 Net Financial Position (mio TL) 2014 2015 2016 - 389 - 429 - 720 269 244 228 33% -217 31% -207 20% -188 67% -442 69% -466 80% -760 Cash and Cash Equivalents ST Financial Liabilities LT Financial Liabilities

  23. Slide 23: Net Financial Position / EBITDA

    23 Net Financial Position / EBITDA 2014 2015 2016 0 0,0 2014 2015 2016 -100 -0,5 -200 -389 -429 -300 -1,0 -400 -1,0 -720 -1,2 -1,5 -500 -1,4 -600 -2,0 -700 -800 -2,5 Net Financial Position NFP / EBITDA

  24. Slide 24: High Profitability Ratios

    24 High Profitability Ratios 62% 37% 39% 14% 13% 17% 2014 2015 2016 RoA RoE

  25. Slide 25: Dividend (mio TL)

    25 Dividend (mio TL) Since listed in the stock exchange market, TürkTraktör paid the total amount of 1.9 billion TL dividend. 375 115% 117% 107% 110% 100% 101% 325 94% 300 300 300 87% 90% 275 83% 72% 75% 225 70% 200 200 54% 175 150 50% 40% 125 107 94 94 26% 30% 75 50 47 13% 15% 14% 8% 2% 10% 10% 10%

  26. Slide 26: Analyst Meeting

    26 Analyst Meeting 13.02.2017

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