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

Turk Traktor Ve Ziraat Makineleri A.s — Q1 2014 Earnings Presentation

48 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, March 2014

  1. Slide 1: Investor Presentation March 2014

    INVESTOR PRESENTATION MARCH 2014

  2. Slide 2: Company Profile

    1 COMPANY PROFILE Ankara Plant Güvercin Yolu No: 111-112 Gazi Ankara Turkey Sakarya Assembly Plant Bekirpaşa Mahallesi Kozluk Caddesi No:130 Erenler Sakarya Turkey Akyurt Warehouse – Spare Part Warehouse & Logistic Büğdüz Mahallesi No: 286/2-4 06750 Akyurt Ankara Turkey Branches: Akyurt Branch – Sal

  3. Slide 3: Agenda: Agricultural Sector, Tractor Market, Advantages, Products, Results

    2 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  4. Slide 4: Main Factors Affecting the World Agricultural Industry

    3 MAIN FACTORS AFFECTING THE WORLD AGRICULTURAL INDUSTRY  Major impact of drought and climate changes on the industry due to global warming  Increase in food prices in parallel to the increase in the world’s population  Decrease in available water supply in the world  Worldwide agricultural comm

  5. Slide 5: Agriculture Sector in Turkey

    4 AGRICULTURE SECTOR IN TURKEY 3 million Rich soil structure, agricultural Turkey's total holdings, arable lands and land area 78 million favorable climate the average land hectare size 6 hectares conditions per farm Agricultural Share of the Land Size agricultural 23,8 million industry over hectare

  6. Slide 6: Land Consolidation

    5 LAND CONSOLIDATION  The land consolidation studies have gained importance against the problem of small scale agricultural holdings which is the leading problem within the structural problems in the agricultural sector in Turkey.  While 450 thousand hectare land in total was consolidated in Turke

  7. Slide 7: Agriculture Sector in Turkey

    6 AGRICULTURE SECTOR IN TURKEY 70,0  Turkish agricultural sector 10,0% 8,8% 7,2% 8,0% has grown in 7 out of last 8 60,0 61,8 6,0% years becoming the 61,7 62,5 50,0 56,4 51,0 6,1% 4,0% locomotive sector for 40,0 2,8% 45,0 43,5 49,5 4,3% Turkish economy. 3,6% 3,5% 2,0% 2,4% 37,0 0,0% 30,0 1,4%  Whil

  8. Slide 8: Agriculture Sector in Turkey: Agricultural Export

    7 AGRICULTURE SECTOR IN TURKEY Agricultural Export (Billion $) 15,3 16,0 12,7 11,5 11,2 9,8 8,3 8,6 6,5 5,3 4,0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012  In 2012, Turkey’s agricultural export reached to 16 billion dollars consisting of 15 billion dollar for foodstuffs export and 1 bil

  9. Slide 9: Agriculture Sector in Turkey

    8 AGRICULTURE SECTOR IN TURKEY Turkey, located at the most favorable climate zone in geographical terms, has adequate natural NUT resources. Turkey has the capacity to support the FIG agricultural industry with her increasing population APRICOT BLACK CHERRY and purchasing power. Turkey, in particula

  10. Slide 10: Agricultural Crop Map of Turkey

    9 AGRICULTURE SECTOR IN TURKEY AGRICULTURAL CROP MAP OF TURKEY 1 2 3 Fruits - vegetables , sunflower, olive, 4 Cereal, legume, sugar beet tobacco, creal, nut, sugar beet Fruits - vegetables, tobacco, olive, cotton, 5 Tea, nut, corn, tobacco, hemp, rice, fruits - vegetables citrus, rice, opium poppy

  11. Slide 11: Agriculture Sector in Turkey

    10 AGRICULTURE SECTOR IN TURKEY  Favorable ecological conditions and climate for agricultural production ￫Tarımsal üretim için uygun ekolojik koşullar ve iklim  Government incentives granted for agricultural investments ￫Tarım sektöründeki yatırımlar için sağlanan devlet destekleri  Increased rec

  12. Slide 12: Turkish Tractor Park & Renewal Potential

    11 TURKISH TRACTOR PARK & RENEWAL POTENTIAL  Use of obsolete tractors in the Turkish market not only increases the cost of the enterprises but also results in productivity loss by 25%.  More than half million tractors are required to be renewed due to invalid specifications.  Use of high capacity

  13. Slide 13: Turkish Tractor Park & Renewal Potential

    12 TURKISH TRACTOR PARK & RENEWAL POTENTIAL  Reference to TURKSTAT data, there are 1.466.208 units of tractors in Turkish tractor App. Mechanical park. The average of the park is 23. Life 20-22  There are 735.487 tractors over 25 years. The Years average of those is 35. Total Average 1.466.208 Age

  14. Slide 14: Agricultural Mechanization

    13 AGRICULTURAL MECHANIZATION The rate of equipment use in Turkish agriculture is lower than the tractor use rate; the number of equipment per tractor and also the qualities of such equipment are far behind the levels of the developed countries. Capital requirement for the OPERATING acquisition and

  15. Slide 15: Resources Allocated to Agriculture in Turkey

    14 RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY 2014 Agricultural Support Payment 9,7 billion TL BUDGET* Resources Allocated to Agriculture 14,2 billion TL Agricultural Support Payment 9 billion TL 2013 Resources Allocated to Agriculture 15 billion TL 2012 Agricultural Support Payment 7,6 billion TL

  16. Slide 16: Resources Allocated to Agriculture in Turkey

    15 RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY Resources Allocated to Agriculture (million TL) GDP (million TL) 2012 15.000 2012 1.416.817 2011 9.600 2011 1.294.893 2010 8.429 2010 1.105.101 2008 7.180 2008 950.098 2002 2.772 2002 350.476 Ratio in GDP 1,059% 0,791% 0,756% 0,763% 0,741% 2002 2008 20

  17. Slide 17: Consumer Finance

    16 CONSUMER FINANCE In Turkey, 90% of the farmers buy the tractors through bank loans. TRACTOR SALES The dealer, should TÜRK TRAKTÖR DEALER have the current payment details of all banks and follow ~ 25% OF THE VALUE OF THE TRACTOR IS the interest rates, PAID IN CASH OR TRADE-IN DEAL IS help the farm

  18. Slide 18: Agenda: Tractor Market

    17 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  19. Slide 19: Turkey in Worldwide Tractor Market

    18 TURKEY in WORLDWIDE TRACTOR MARKET 1.600 Turkey 1.400 Other Countries 1.200 Pakistan 1.000 India 800 China 600 Latin America 400 Europe 200 North America 0 2006 2007 2008 2009 2010 2011 2012 2013 WOR L D T R A C T OR MA R K E T Units in Thousand 2006 2007 2008 2009 2010 2011 2012 2013 North Ameri

  20. Slide 20: Tractor Market in Turkey: Fierce Competition

    19 TRACTOR MARKET in TURKEY Ihlas Kubota Farmtrac Mahindra McCormick Claas SuperStar Deutz Fendt LS Kioti Ferrari Branson In the Turkish Foton Erkunt NH market under (Harman) Landini In 2001 four brands fierce competition were competing in the circumstances, Uzel Yağmur market, whereas today there a

  21. Slide 21: Tractor Market in Turkey

    20 TRACTOR MARKET in TURKEY 70.000 60.341 60.000 52.286 50.318 50.000 42.033 39.571 40.000 36.036 33.989 34.525 34.541 unit 30.000 27.022 20.155 20.000 18.639 18.799 13.758 10.587 10.000 8.127 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/5 2013 2014/5 Source : TURKSTAT

  22. Slide 22: Tractor Market in Turkey: Market Share

    21 TRACTOR MARKET in TURKEY 35.000 60% 52,0% 51,5% 50,3% 50,4% 49,7% 30.000 49,9% 48,4% 48,4% 50% 46,0% 25.000 37,7% 40% 33,6% 20.000 30,6% 30,3% 29,9% Unit 28,5% 27,0% 30% 25,8% 24,9% 15.000 22,7% 21,0% 21,3% 20,5% 23,5% 22,2% 20% 16,5% 21,1% 10.000 16,3% 10% 5.000 13.011 15.886 13.497 10.014 25.34

  23. Slide 23: Tractor Market in Turkey: Sales and Share

    22 TRACTOR MARKET in TURKEY Tractor Sales @ 2013/5 Tractor Sales @ 2014/5 Import Import Products NH + CIH Products NH + CIH 4.001 9.096 4.122 10.014 Other Local Other Local Manufacturers Manufacturers 5.702 6.019 Market Share @ 2013/5 Market Share @ 2014/5 Market Share @ Last 12 Months NH + CIH NH +

  24. Slide 24: Market & TürkTraktör

    23 MARKET & TÜRKTRAKTÖR For the last 6 years one out of every two tractors have been manufactured by TürkTraktör. In the tractor market, New Holland brand is the leader with a market share of 45%*. Case IH brand, launched in the domestic market in 2007, has a market share of 5%*.  The widest produc

  25. Slide 25: Agenda: Competitive Advantages

    24 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  26. Slide 26: Competitive Advantages: Strong Shareholder, Dealer Network

    25 COMPETITIVE ADVANTAGES Koç Holding CNHI A.Ş. 60 37,50% 37,50% Public Quotation Other 24,93% 0,07% TürkTraktör, manufactured KOÇ HOLDİNG A.Ş.  Strong distribution and exported tractors for the One of the strongest network throughout WIDEST DEALER NETWORK  EXPERIENCE OF 60 YEARS first time in Tur

  27. Slide 27: Competitive Advantages: Manufacturing, R&D, Exports

    26 COMPETITIVE ADVANTAGES  Being the first in Turkey  R&D center accredited  Export to over 130 concerning flexible by the Ministry of countries all over the manufacturing lines that Industry on 03 world via global network enables co-use of September 2009 of CNHI, such as, US, automatic LARGE SCA

  28. Slide 28: Management Strategy

    27 MANAGEMENT STRATEGY  TürkTraktör tries to go head to head with international manufacturers from the same segment. TürkTraktör follows the developments in the world market and keeps track of innovations in the sector.  TürkTraktör has an objective on a preferential basis to protect its cost-favo

  29. Slide 29: Agenda: Products

    28 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  30. Slide 30: Manufactured Products (Tractor)

    29 MANUFACTURED PRODUCTS (TRACTOR) Series T480 T480 2WD T480 4WD 48 HP 48 HP TT 50 55 65 75 50 HP 55 HP 65 HP 72HP 56s 55 65 75 55 HP 65 HP 75 HP TDS 65 75 80 65 HP 72 HP 80 HP TDD 65 75 80 90 100 110 65 HP 75 HP 83 HP 88 HP 98 HP 110 HP TTB 50 55 65 50 HP 55 HP 65 HP TDB 65 75 80 65 HP 72 HP 80 HP

  31. Slide 31: Imported Products (Tractor)

    30 IMPORTED PRODUCTS (TRACTOR) Series T3000 T3010 T3040 38 HP 55 HP T4000 T4030 De. F-N-V T4040F T4050F 78 HP 88 HP 97 HP T5000 T5050 T5060 T5070 96 HP 106 HP 113 HP T6000 T6020 T6050 T6060 T6070 T6080 T6090 112 HP 127 HP 132 HP 141 HP 155 HP 165 HP T7000 T7040 T7060 T7070 182 HP 213 HP 225 HP T8 T8

  32. Slide 32: Products (Tractor)

    31 PRODUCTS (TRACTOR) Series JXC 55 65 75 Manufactured 55 HP 65 HP 75 HP Utility Light* 55 65 75 Manufactured 55 HP 65 HP 75 HP JX 70 75 80 90 100 110 Manufactured 65 HP 75 HP 80 HP 88 HP 98 HP 110 HP JXU 95 105 115 Imported 96 HP 106 HP 113 HP MAXXUM 110 130 140 Imported 112 HP 132 HP 141 HP PUMA C

  33. Slide 33: Agricultural Equipment

    32 AGRICULTURAL EQUIPMENT COMBINES COMBINES COTTON PICKERS SQUARE BALERS SELF PROPELLED SPRAYERS SELF PROPELLED FORAGE HARVESTERS PNEUMATIC PLANTERS ROUND BALERS SPRAYERS PNEUMATIC PLANTERS SOIL TILLAGE EQUIPMENTS

  34. Slide 34: Construction Equipment

    CONSTRUCTION EQUIPMENT SKID STEER LOADERS BACKHOE LOADERS COMPACT WHEEL LOADERS WHEEL LOADERS MINI EXCAVATORS CRAWLER EXCAVATORS TELEHANDLERS

  35. Slide 35: Agenda: Operational Results

    33 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  36. Slide 36: Operational Results: Tractor Sales Units

    34 OPERATIONAL RESULTS Tractor Sales Units 14. 565 14. 402 25. 597 24. 624 3. 421 3. 313 3. 387 7. 484 5. 354 6. 710 2012/3 2013/3 2014/3 2012/F Y 2013/F Y Local Sales Export Sales 2014/3 Local Sales (units) 2014/3 Export Sales (units) NH Local Case IH Export 6.009 767 90% 23% Case IH Local 617 9% C

  37. Slide 37: Operational Results: Manufacturing Units, Transmission, Exports

    35 OPERATIONAL RESULTS MANUFACTURING UNITS TRANSMISSION EXPORT UNITS 5.211 3.813 1.422 1.236 1.005 2012/3 2013/3 2014/3 2012 2013 Tractor Transmission

  38. Slide 38: Market Leader in Agricultural Equipment Sector

    36 OPERATIONAL RESULTS MARKET LEADER IN AGRICULTURAL EQUIPMENT SECTOR C ombine Sales Units 2014/3 31 2013/3 321 2012/3 189

  39. Slide 39: Financial & Operational Performance

    37 FINANCIAL & OPERATIONAL PERFORMANCE million EUR 2012/3 2013/3 2014/3 2012/FY 2013/FY Revenue 227 218 198 839 741 Gross Profit 47 45 41 180 161 Operating Profit 33 30 28 125 111 Profit Before Tax 33 31 27 135 109 Net Profit 27 26 23 114 95 EBITDA 35 33 30 133 119 Revenue @ 2013/3 (million Eur) Rev

  40. Slide 40: Financial & Operational Performance: Profitability Ratios

    38 FINANCIAL & OPERATIONAL PERFORMANCE Profitability Ratios 21,4% 21,7% 20,6% 20,5% 20,9% 15,4% 15,9% 16,1% 14,6% 15,1% 15,2% 14,9% 14,9% 14,0% 13,9% 13,6% 12,9% 12,0% 11,9% 11,7% 2012/3 2013/3 2014/3 2012/FY 2013/FY Gross Margin Operating Margin EBITDA Margin Net Margin Re turn o n Equity & Return

  41. Slide 41: Financial & Operational Performance: Balance Sheet

    39 FINANCIAL & OPERATIONAL PERFORMANCE million EUR 2012/3 2013/3 2014/3 2012/FY 2013/FY Total Assets 611 556 561 561 509 Current Assets 535 458 413 470 370 Non-Current Assets 75 98 148 92 139 Total Liabilities 611 556 561 561 509 Short Term Liabilities 260 247 217 186 131 Long Term Liabilities 71 83

  42. Slide 42: Financial & Operational Performance: Liquidity Ratios

    40 FINANCIAL & OPERATIONAL PERFORMANCE Liquidity Ratios 2,8 2,5 2,1 1,9 1,9 1,9 1,7 1,5 1,3 1,2 2012/3 2013/3 2014/3 2012/FY 2013/FY Current Ratio Quick Ratio *The dividend distributed on March in 2013 and on April in 2012.

  43. Slide 43: Net Working Capital and CAPEX

    41 FINANCIAL & OPERATIONAL PERFORMANCE Net Working Capital 186 mln € 175 172 166 160 2012/3 2013/3 2014/3 2012/F Y 2013/F Y C APEX 63, 53 mln € 32, 02 3, 89 10, 77 6, 93 2012/3 2013/3 2014/3 2012/F Y 2013/F Y

  44. Slide 44: Dividend

    42 DIVIDEND 350 120% 107% 100% 101% 300 94% 100% 83% 250 75% 80% 72% 200 60% 300 150 40% 200 200 40% 100 26% 150 107 94 20% 50 94 10% 8% 7% 7% 15% 14% 2% 13% 10% 17, 08 12, 25 0 0% 2006* 2007* 2008* 2009* 2010* 2011* 2012* 2013* 2014** Dividend (mln TL) % Dividend Yield (%) * Share closing price as

  45. Slide 45: Borsa Istanbul & TTRAK Index

    31.12.2012 31.01.2013 43 28.02.2013 31.03.2013 BIST-100 30.04.2013 31.05.2013 BIST 100 30.06.2013 TTRAK 31.07.2013 31.08.2013 31.12.2012 =100 30.09.2013 31.10.2013 TTF Values 30.11.2013 BORSA ISTANBUL & TTRAK INDEX 31.12.2013 31.01.2014 28.02.2014 31.03.2014 % 11 %6 %264

  46. Slide 46: Contact

    44 CONTACT Marco VOTTA Ahmet CANBEYLİ Ilkiz KARAGULLU CEO CFO Investor Relations Supervisor +90 312 2332001 +90 312 2332003 +90 312 2332502 marcov@turktraktor.com.tr ahmet.canbeyli@turktraktor.com.tr ilkizk@turktraktor.com.tr

  47. Slide 47: Disclaimer

    45 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 variables an

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