Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Investor Presentation (September 2011)
61 slides from Turk Traktor Ve Ziraat Makineleri A.s's investor presentation, September 2011
Slide 1: Investors Presentation September 2011
Türk Traktör Investors Presentation September 2011
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: Türk Traktör
Türk Traktör TÜRK TRAKTÖR Türk Traktör was established in 1954 The production facility, Sales & Marketing offices are located in Ankara on 272,800 m2 land, with a covered area of 78,716 m2 Training & After sales facilities & warehouses are located around Turkey (i.e. Ankara, Đzmir, Urfa, Çorlu..etc)
Slide 4: 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 4
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 HOLDĐNG A.Ş. Turkey’s largest conglomer
Slide 6: History
1954 Established as a public company with the name of Minneapolis Moline Turk Traktor veZiraat Makineleri AS. GA Koc Turk Traktor HISTORY The first tractor production in Turkey. 1955 1962 Egemak takes over the Fiat Tractors exclusive distributorship: in Turkey. Egemak starts to sell tractors produce
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 Richness in variety of products World leadership in many vegetable and fruit products 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 Rank
Slide 11: Turkish Agriculture: Agricultural Production
Türk Traktör TURKISH AGRICULTURE AGRICULTURAL PRODUCTION: 35 billion € = 10% EU-27 60% France 11
Slide 12: Turkish Agriculture
ĐŞLETME 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: Turkey in Worldwide Tractor Market
Türk Traktör TURKEY IN WORLDWIDE TRACTOR MARKET Units 2005 2006 2007 2008 2009 2010 World Market 981.374 1.125.405 1.123.954 1.138.969 1.174.942 1.334.521 TURKEY rank 4 5 5 9 10 6 In Thousand Units 2005 2006 2007 2008 2009 2010 North America 246 239 242 226 179 188 Europe 169 178 186 198 164 151 Lat
Slide 14: Growth Potential in Turkey
Türk Traktör GROWTH POTENTIAL IN TURKEY 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 rate
Slide 15: 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 16: Tractor Ownership Status
ĐŞLETME 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 ! 16
Slide 17: Tractor Park in Turkey
Türk Traktör TRACTOR PARK IN TURKEY TOTAL 1.358.577 Units There are 1.3 million tractors in the Turkish market and 43% of them above 25 years, consuming more fuel, releasing more carbon to environment, have higher maintenance costs. Old tractor usage causes 25% of productivity losses which increase
Slide 18: Tractor Park in Turkey
ĐŞLETME YAPISI Türk Traktör TRACTOR PARK IN TURKEY 1,3 million tractors in Turkish tractor park 780K are 1-24 years 578K are 25 and over 25 and over 1 - 24 578.232 years old units 780.345 units 43% 57% 18
Slide 19: Machinery Intensity
ĐŞLETME YAPISI Türk Traktör MACHINERY INTENSITY 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 Ti
Slide 20: Tractor Market in Turkey
Türk Traktör TRACTOR MARKET IN TURKEY 60.000 Purchases for investment purpose 54.731 Đzmit 53.922 earthquake in the high inflation environment 49.297 Increase in 50.000 interest rates by 40% 43.706 Economical crisis + 42.033 major 40.437 Economical crisis 39.571 devaluation 40.000 + strong 35.837 de
Slide 21: Tractor Market in Turkey
Türk Traktör TRACTOR MARKET IN TURKEY Turkish tractor market contracted by 49% due to economic crisis in 2009 compared to 2008. Crisis influence on the tractor sector was much more than average since farmers lost income in the last 3 years due to drought. Drought problem caused yield loses especiall
Slide 22: Tractor Market in Turkey - Competition
Türk Traktör TRACTOR MARKET IN TURKEY - COMPETITION In 2001, there were only 4 brands in domestic market but as of 2010 36 brands (33 in 2009) compete in the market. Domestic tractor market was almost a duopoly (TTF and UZEL) commanding a total market share of app. 70% up to 2007. Almost every major
Slide 23: Tractor Market in Turkey - Competition
Türk Traktör TRACTOR MARKET IN TURKEY - COMPETITION 4 20 28 37 33 36 2001 2006 2007 2008 2009 2010 NH NH NH NH NH NH MF MF MF MF MF MF Tumosan NH (Harman) NH (Harman) NH (Harman) NH (Harman) NH (Harman) Basak Tumosan Tumosan Tumosan Tumosan Tumosan Basak Basak Basak Basak Basak Universal Universal U
Slide 24: Tractor Market in Turkey - Competition
Türk Traktör TRACTOR MARKET IN TURKEY - COMPETITION The share of import tractor has increased from 1% to 20% from 2001 to 2009 and decreased to 14% in the first 8 months of 2011 (17% in 2010). 2011/8 20.849 2.389 11.395 5.804 2010 18.565 2.388 8.989 6.094 2010/8 9.344 1.185 4.796 3.335 2009 7.148 83
Slide 25: Türk Traktör in Domestic Market
Türk Traktör TÜRK TRAKTÖR IN DOMESTIC MARKET 2010 TRACTOR SALES 2011/8 TRACTOR SALES 6.094 5.804 17% 14% 18.565 20.849 51% 52% 8.989 25% 11.395 28% 2.389 2.388 6% 7% NH + CIH MF Other Local Producers Other Importers NH + CIH MF Other Local Producers Other Importers Company has a strong dealer networ
Slide 26: Consumer Financing
Türk Traktör CONSUMER FINANCING In Turkey, 90% of the farmers buy the tractors through bank loans. TRACTOR SALES The dealer, should have the current TÜRK TRAKTÖR DEALER 1 payment details of all banks and follow the interest rates, help ~25% OF THE VALUE OF THE TRACTOR IS the farmer to choose PAID IN
Slide 27: 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 27
Slide 28: Manufacturing Technology
Türk Traktör MANUFACTURING TECHNOLOGY 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 flexibi
Slide 29: Manufacturing Technology
Türk Traktör MANUFACTURING TECHNOLOGY Paintshop Engine Assembly Line 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. Coupled with automated thermal processing, painting and assembly
Slide 30: R&D Activities
Türk Traktör R & D ACTIVITIES Component Test Laboratory Front Hood Latching and Durability Test Suspended Pedal Endurance Test AVL Chassis Dynamometer Engine Test System Quick Prototyping Bump Tests Field Tests 30
Slide 31: Product Line - Locally Manufactured Tractors
Türk Traktör PRODUCT LINE – LOCALLY MANUFACTURED TRACTORS A) LOCALLY MANUFACTURED TRACTORS 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). JX tractors are exporte
Slide 32: The Main Locally Manufactured Tractors
Türk Traktör THE MAIN LOCALLY MANUFACTURED TRACTORS TT SERIES 56 SERIES TD SERIES JX SERIES 32
Slide 33: The Speciality Tractors
Türk Traktör THE SPECIALITY TRACTORS TT Narrow TT Orchard We aim to manufacture the most We aimproducts suitable to manufacture the most for our customers. suitable products for our customers. TD Narrow TD Straddle TD High Clearance JX Straddle JX High Clearance We therefore design and produce speci
Slide 34: Product Line - Imported Tractors
Türk Traktör PRODUCT LINE – IMPORTED TRACTORS B) IMPORTED TRACTORS – NH BRAND New Holland brand tractors in the range of 35-303 HP for the local market. SALES AS OF 30.09.2011 TC / T 3000 0 unit TN / T4000 54 units TL / T5000 317 units TS-TM / T6000 110 units TM / T7000 - T8000 22 units 35 HP 60 HP
Slide 35: The Main Imported Tractors
Türk Traktör THE MAIN IMPORTED TRACTORS T3000 SERIES T4000 SERIES T5000 SERIES T6000 SERIES T7000 SERIES T8000 SERIES 35
Slide 36: Product Line - Imported Tractors (Case IH)
Türk Traktör PRODUCT LINE – IMPORTED TRACTORS C) IMPORTED TRACTORS - CASE IH BRAND Other brand of the Company, launched in the domestic market in September 2007. Market share reached 3,03% at the end of 2009 and 3,68% as of 2010. SALES AS OF 30.09.2011 JX *14.393 units JXU 45 units MAXXUM - CVX 32 u
Slide 37: The Main Case IH Tractors
Türk Traktör THE MAIN CASE IH TRACTORS MAXXUM SERIES PUMA SERIES CVX SERIES MAGNUM SERIES 37
Slide 38: Product Line - Agricultural Machinery (Imported)
Türk Traktör PRODUCT LINE – AGRICULTURAL MACHINERY (IMPORTED) D) AGRICULTURAL MACHINERY Main imported products are combine harvesters, cotton pickers, balers & other plant equipment. AGRICULTURAL MACHINERY SALES UNITS 2011/9 600 526 500 400 335 300 216 200 100 0 Combine Harvesters Balers Others* * o
Slide 39: Product Line - Agricultural Machinery (Imported)
Türk Traktör PRODUCT LINE – AGRICULTURAL MACHINERY (IMPORTED) 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 Ba
Slide 40: Product Line - Agricultural Machinery (Imported)
Türk Traktör PRODUCT LINE – AGRICULTURAL MACHINERY (IMPORTED) Case IH 420 - 620 IH AFX Combine Harvesters 4-5-6-rows Cotton Pickers AFX 2377 – AFX 2388 Case IH 2022 40 Case IH SPX 3320 2-rows Cotton Pickers Self-Propelled Sprayers
Slide 41: Other Manufactured Products
Türk Traktör OTHER MANUFACTURED PRODUCTS TRANSMISSION ENGINE From a product content point of view, the two most important components of any tractor are the engine and, even more so, the driveline. Türk Traktör is the only plant within the CNH world to manufacture both the engine and the transmission
Slide 42: 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 42
Slide 43: Position within CNH
Türk Traktör POSITION WITHIN CNH Türk Traktör is the only engineering centre in the world for TD/JX Series, within the CNH Group. Responsible for all types of improvement and development activities for these products. The worldwide engineering centre and the main production centre for the transmissi
Slide 44: Position within CNH
Türk Traktör POSITION WITHIN CNH Capable of developing its own manufacturing technologies. 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 succ
Slide 45: Export Tractors
Türk Traktör EXPORT TRACTORS Türk Traktör exports its tractors through CNH’s well established global sales network. 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 of Af
Slide 46: 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 46
Slide 47: Business Model
Türk Traktör BUSINESS MODEL 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. It strives, at the same time, to compete at the highest level with the other internat
Slide 48: Human Resources
Türk Traktör HUMAN RESOURCES Türk Traktör multinational status is reflected by the presence, within its workforce, of specialists with international experience in several different fields. For Türk Traktör, its employees are as valuable as its customers. Among the candidates wishing to work in Türk
Slide 49: 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 49
Slide 50: Türk Traktör Sales
Türk Traktör TÜRK TRAKTÖR SALES TRACTOR TRANSMISSION 24.000 35.000 23.746 33.657 21.000 30.000 24.050 18.000 25.000 15.000 12.909 20.000 12.000 13.847 15.000 9.000 7.438 6.024 5.846 10.000 6.000 4.863 5.000 3.816 3.450 3.000 3.909 0 0 2009/9 2010/9 2011/9 2009/9 2010/9 2011/9 Domestic Sales Export S
Slide 51: Financial Highlights
Türk Traktör FINANCIAL HIGHLIGHTS REVENUE (TL) NET INCOME MARGIN 1.400 21 1.200 1.317 18 18 1.000 15 million TL 800 12 14 843 % 600 9 400 6 200 3 0 0 2010/9 2011/9 2010/9 2011/9 EBITDA (TL) EBITDA (EUR) 300 120 250 279,29 100 111 200 million EUR 80 83 million TL 150 60 164,75 100 40 50 20 0 0 2010/9
Slide 52: Income Statements of 2010/9 & 2011/9
Türk Traktör INCOME STATEMENTS OF 2010/9 & 2011/9 Million Euro 2010/9 % 2011/9 % Total Net Sales 426,84 100% 523,57 100% - Domestic Sales 297,08 427,31 - Export Sales 129,76 96,27 Cost of Sales -318,00 -384,90 Gross Profit 108,84 25,50% 138,67 26,49% Operating Expenses -28,45 -30,79 Net Operating In
Slide 53: Balance Sheets of 2010 & 2011/9
Türk Traktör BALANCE SHEETS OF 2010 & 2011/9 Million Euro 2010 2011/9 2010 2011/9 ASSETS 432,47 426,10 LIABILITIES 432,47 426,10 SHORT TERM LIABILITIES 180,26 178,52 Short Term Borrowings 62,43 41,23 Trade Payables (net) 90,67 105,47 CURRENT ASSETS 360,77 365,08 Due To Related Parties (net) 4,86 3,0
Slide 54: Net Financial Position
Türk Traktör NET FINANCIAL POSITION NET FINANCIAL POSITION Million Euro 2009 2010/9 2010 2011/9 Total Financial Assets 37,35 72,94 121,30 71,82 Total Financial Liabilities 149,17 95,22 82,45 66,50 Net Financial Position -111,82 -22,28 38,85 5,32 CAPEX Million Euro 2009 2010/9 2010 2011/9 CAPEX* 5,08
Slide 55: Financial Performance: Main Ratios
Türk Traktör FINANCIAL PERFORMANCE MAIN RATIOS 2009 2010/9 2010 2011/9 Earnings Per Share (TL) EpS 0,0058 0,0215 0,0337 0,0438 Dividends Per Share (TL)* DpS 0,0032 0,0023 0,0023 0,0281 Book Value Per Share (TL) BVpS 0,06 0,08 0,09 0,10 Net Income (million Euro) 14,33 58,04 87,71 92,88 Market Capital
Slide 56: Hedging Policy
Türk Traktör HEDGING POLICY 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) Aside from achievin
Slide 57: Dividend
Türk Traktör DIVIDEND 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 profi
Slide 58: 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 58
Slide 59: Contacts
Türk Traktör CONTACTS Marco VOTTA General Manager 0090 312 2332001 marcov@turktraktor.com.tr Memet KAMBER Chief Financial Officer 0090 312 2332003 memetk@turktraktor.com.tr Đlkiz KARAGULLU Investor Relations Specialist 0090 312 2332502 ilkizk@turktraktor.com.tr 59
Slide 60: Let's meet on our Website
Türk Traktör Let’s meet on our Website... www.turktraktor.com.tr 60
Slide 61: 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
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