Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Investor Presentation (April 2018)
31 slides from Turk Traktor Ve Ziraat Makineleri A.s's investor presentation, April 2018
Slide 1: Investor Presentation April 2018
Investor Presentation April 2018
Slide 2: Corporate Structure
Corporate Structure Established in 50.000 tractors The oldest continuously manufacturing company of 1954 annual production capacity* Turkish automotive industry Plants & Facilities Shareholder Structure Koç Holding A.Ş. Founded in 1926, Koç Holding has become not only one of the largest and most suc
Slide 3: TürkTraktör
TürkTraktör WHERE AREN’T WE YET… Continuously increasing export penetration, POSITION within CNHI Turkey’s biggest and the most diversified The only design and main production center of tractor exporter. New Holland TD and Case IH JX series tractors in the world The only production center of Utility
Slide 4: Investment Highlights
Investment Highlights Leading tractor manufacturer with diversified product range Good shareholder returns • The largest tractor producer in • Given priority to maintain Turkey with 50K tractor capacity Sustainable growth and to grow profitability • Tractor market leader for the last • Sustainable d
Slide 5: Sustainable Growth
Sustainable Growth Tractor Manufacturing Units Local Tractor Sales Units 39.574 38.530 45.823 47.536 46.031 48.302 25.058 24.091 29.550 32.535 33.053 36.648 12.777 7.696 2012 2013 2014 2015 2016 2017 2018/3 2012 2013 2014 2015 2016 2017 2018/3 Total Revenue (mio TL) Gross Profit (mio TL) 1.974 2.175
Slide 6: Growth of Shareholder Value
Growth of Shareholder Value Stock Performance (31.12.2014=100) Earnings per Share 5,24 4,89 4,81 6,93 6,01 31.12.2014 2015 2016 31.12.2017 2013 2014 2015 2016 2017 BIST - 100 TTRAK Foreign Ownership in Free Float (%) %83,88 Commitment to Corporate Governance %75,74 *Separate CEO and Chairman roles *
Slide 7: Brands & Products
Brands & Products Tractors (48HP-380HP) Construction Equipment Compact Line Agricultural Equipment Tractors (55HP-380HP) Construction Equipment Compact Line Agricultural Equipment Heavy Line Tractors (55HP-65HP) Agricultural Equipment 7
Slide 8: Market Positioning of the Brands
Market Positioning of the Brands *Market leader for 11 years in a row *Targeting professional *Having ~40%* market share farmers *The largest dealer network *Having ~5%* market share *Full territory coverage *Continuously expand in local market since 2007 *Proximity to customers *Strengthen dealers
Slide 9: Turkey - Agriculture Sector
Turkey - Agriculture Sector *Demand to outstrip production *Low productivity vs. good yield *High agricultural population (25%) *Higher inputs costs *Stabilized government support to the sector *One of the lowest mechanization levels in *Giving rise to professional farming Europe Turkey - Agricultur
Slide 10: Turkey - Agriculture Sector
Turkey - Agriculture Sector (source : tarim.gov.tr & TURKSTAT) Turkey’s Agriculture Sector with Numbers Targets of Turkish Agriculture Sector Turkey’s agricultural economy in the world for 2023 2023 Turkey’s agricultural economy in Europe agricultural income share of the agricultural industry over t
Slide 11: Turkey - Agriculture Sector
Turkey - Agriculture Sector (source : tarim.gov.tr) Government Support in Turkey (billion TL) 14.8 12.8 11.5 9.1 10.0 2014 2015 2016 2017 2018 budget figures It has been announced that the government has allocated budget for agriculture in 2018. 11
Slide 12: Supports Provided within the scope of Agricultural Policies
Supports Provided within the scope of Agricultural Policies (source: www.tarim.gov.tr) Resources allocated to agriculture and in 2018 budget has been announced as 29,6 billion TL (of which 14,8 billion TL is for agricultural support & 10,1 billion TL is for investment loans & 4,7 billion TL is for a
Slide 13: Ziraat Bank Agricultural Loans
Ziraat Bank Agricultural Loans Tractor Loan - Credit limit 250.000 TL JAN 2017 Subsidy level 50% Subsidy level 25% for the remaining up to 50.000 TL (same as 2016) amount of the bank loan of bank loan above 50.000 TL (same as 2016) • In case the tractor at 10 and +10 years (being owned for 5 years i
Slide 14: Important Developments in 2017
Important Developments in 2017 All Financial Solutions Under a Single Roof OCT TürkTraktör Finance 2017 Common in automotive sector but first in agriculture sector It is aimed to enable farmers to have state-of-the art tractors through the alternative financial solution Covers tractor, equipme
Slide 15: The National Energy Efficiency Action Plan
The National Energy Efficiency Action Plan The National Energy Efficiency Action Plan (2017 – 2023) including 6-action plan for increasing energy efficiency in agricultural sector has been approved and published at Official Gazette dated 02.01.2018. Encouragement of the Renewal of Tractors and Combi
Slide 16: Using Old Combines
Using Old Combines (source: TARMAKBİR) Losses from Using Old Combines Increase operating expenses (maintenance, repair, oil, fuel, labor) mechanical life = 3.000 hours Deterioration in quality and crop during harvest season Annual operating time (avg) High exhaust emission values due to excess
Slide 17: Using Tractors Expired Useful Lives
Using Tractors Expired Useful Lives (source: TARMAKBİR) Losses from Using Tractors Expired Useful Lives Deterioration in quality and crop Having high production cost per unit due to using low capacity tractor and equipment Increase noise emission damages human health and causes decrease in wor
Slide 18: 2017 Important Developments
2017 Important Developments Import Tax Additional importation tax applied for complete tractors, engines, drivelines, JAN components that are imported from non-EU countries and from the countries that 2017 have no FTA with Turkey. Additional tax rate; • Tractors – 21,0% • Engine for tractors – 16,8%
Slide 19: Turkey vs. EU - Agriculture Sector
Turkey vs. EU - Agriculture Sector (source : tarim.gov.tr & EUROSTAT) EUROPEAN UNION Arable land Permanent crops 115 million ha total agricultural land 11 million agricultural holdings – average land size 10 ha per farm TURKEY Arable land Permanent crops 24 million ha total agricultural land 3 milli
Slide 20: Highlights of Tractor Market
Highlights of Tractor Market (source : TARMAKBİR) Average working time of Mechanical life Mechanical life Ratio of the a tractor of a tractor of a tractor tractors >24 (hours/year) (hours) (year) years Tractor unit per Equipment unit Agricultural land per Tractor HP per 1000 hectare per tractor trac
Slide 21: Global Tractor Market
Global Tractor Market (thousand units) (source: Systematics) North America South America Europe Turkey is the 4th 229 233 246 63 66 152 145 163 54 biggest market in 2015 2016 2017 2015 2016 2017 2015 2016 2017 the world in terms of annually sold tractor units Australia Africa Asia India 955 1.010 Ch
Slide 22: Turkish Tractor Market
Turkish Tractor Market Tractor Production (units) Market Share of TürkTraktör Source : Tarmakbir Source : TURKSTAT 72.032 66.615 66.915 64.342 56.407 50% 53.982 49% 49% 48% 48% 47% 48.302 48.302 45% 45.823 47.536 46.031 38.530 39.574 2012 2013 2014 2015 2016 2017 2018/2 5.542 20.884 23.730 4.052 14.
Slide 23: Growth of Turkish Tractor Market
Growth of Turkish Tractor Market Turkish Tractor Market (units) Tractor Park in Turkey (mio units) Source : TURKSTAT Source : TURKSTAT 50.318 52.286 59.449 66.775 70.205 72.949 1,52 1,57 1,63 1,69 1,76 1,84 1,85 8.519 2012 2013 2014 2015 2016 2017 2018/2 2012 2013 2014 2015 2016 2017 2018/2 Turkish
Slide 24: Sales of TürkTraktör
Sales of TürkTraktör Tractor Sales (units) 47.124 49.613 46.230 12.023 *Domestic tractor sales increased by 12% in 2017. 14.122 12.625 *Export tractor sales decreased by 5% comparing to 2016. 33.605 37.590 33.002 2015 2016 2017 Combine Sales (units) Local Export 328 315 316 2015 2016 2017 18
Slide 25: Income Statement
Income Statement (mio TL) 2015 2016 2017 ∆ - Domestic Sales 2,164 2,469 3,086 25% - Export Sales 939 974 1,129 16% Total Sales Revenue 3,103 3,443 4,215 22% Gross Profit 605 742 731 -2% Net Operating Income 364 455 423 -7% Profit Before Tax 302 388 351 -10% Net Income 257 370 321 -13% EBITDA 416 512
Slide 26: Profitability
Profitability (%) 2015 2016 2017 ∆ Gross Profit Margin 19.5 21.6 17.3 -4.3 pp Operating Profit Margin 11.7 13.2 10.0 -3.2 pp Net Profit Margin 8.3 10.7 7.6 -3.1 pp EBITDA Margin 13.4 14.9 11.7 -3.2 pp Gross Operating Net EBITDA Gross Operating Net EBITDA Margin Margin Margin Margin Margin Margin Mar
Slide 27: Gross Profit to EBITDA Flow
Gross Profit to EBITDA Flow (mio TL) as of 31.12.2017 374 308 310 30 72 731 69 492 423 351 321 Gross Opex Operating Other & Profit Taxation Net Income Depreciation EBITDA Profit Income Financial Before Expenses Tax 21
Slide 28: Debt Profile & Financial Ratios
Debt Profile & Financial Ratios (mio TL) 2015 2016 2017 ∆ - Cash & Cash Equivalents 244 228 442 93% - Total Financial Debt 673 948 1.127 19% Net Financial Position (429) (720) (685) -5% Current Ratio 1.6 2.0 1.8 -0.2 pp Quick Ratio 1.0 1.3 1.3 -0.02 pp Current Assets / Total Assets 68% 69% 72% 3 pp
Slide 29: Working Capital
Working Capital (mio TL) 656 716 441 654 815 476 518 556 566 -552 -494 -725 2015 2016 2017 Trade Payables (net) Inventories Trade Receivables (net) 23
Slide 30: Dividend Payments
Dividend Payments Total TL 2.4 billion was distributed as dividend to the shareholders between 2004 – 2018. Dividend (mio TL) 50 140% Dividend / Net Profit Dividend Yield (%) 300 300 300 300 00 120% 117% 107% 250 100% 101% 115% 50 94% 94% 100% 87% 200 200 83% 00 80% 150 75% 72% 50 68% 60% 107 54% 94
Slide 31: Investor Relations Contact
Investor Relations Contact Marco VOTTA Ahmet CANBEYLI Ilkiz KARAGULLU CEO CFO Investor Relations Manager +90 312 2332001 +90 312 2332003 +90 312 2332502 marcov@turktraktor.com.tr ahmet.canbeyli@turktraktor.com.tr ilkizk@turktraktor.com.tr investorrelations@turktraktor.com.tr
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