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

Turk Traktor Ve Ziraat Makineleri A.s — 9M 2020 Earnings Presentation

27 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Oct 27, 2020

  1. Slide 1: Evaluation of 2020 9M

    TiirkTraktér | Pevdpe EVALUATION OF 2020 9M

  2. Slide 2: Input Costs and Product Prices

    Product prices in 2020 was Input Costs and Product Prices generally above expectations. According to the Agricultural Input Price Index published by TURKSTAT, costs in the September 2020 increased by 7% compared to the same month of the previous year. Input Costs Annual Average (2015=100) Agricultur

  3. Slide 3: Government support that has been given in 2020

    Government support that has been given in © Government Support 2020 increased more than the inflation. As of September 2020, 77% of the supports were paid. © Breakdown of Agricultural Support Budget 220 17.0 14.6 a = “ 2018 2019 2020 Compensatory Livestock Area Based a Payment a Support Payment a Ag

  4. Slide 4: Consumer Financing continued

    Consumer Financing continued Ziraat Bank to stand TürkTraktör Finance's share in total sales by the farmer in increased to 11.4%. 2020 with favorable interest rates. Loan Interest Rates 18% 17.4% Financing Distribution of TürkTraktör's Sales 12% 12% 62.2% 9% 55.9% 55.6% Feb. 2018 May 2019 Aug. 2019

  5. Slide 5: Market Evaluation

    TurkishTractors Market grew by 87% in 8M 2020 YoY. Market Evaluation …...Despite this, it remained 22% behind8M 2018. 2020 TIV expectation: 46,000-49,000 72,949 70,205 66,775 2020 Local Tractor Sales*: 22,000-23,500 60,341 59,449 52,286 50,318 48,044 50% 50% 48% 49% 49% 33,423 48% 47% 45% 43% 25,839

  6. Slide 6: Global Tractor Market

    According to 2020 8-month tractor sales Turkey Global Tractor Market was the world's 4th largest tractor market. North America, one of our main export market, has grown by 13%. While the European market shrank by 10%. Pakistan -24% Total Global Market (ThousandUnits) China 2018 2019 2019/8 2020/8 Ch

  7. Slide 7: Export

    Export TürkTraktör is an international player which exports to more than 130 countries. 80% of our exports are goes to North America and European markets. 40% 40% 2020 export expectation: 11,500-12,500 EU NAFTA Our Tractor Export (Unit) AMEA 15,207 14,502 24% Decrease 12,625 12,023 11,905 8,890 ANZ

  8. Slide 8: An Important Player of the Market with Domestic Production in Construction Equipment

    An Important Player of the Market with 2013: Turkey distributor of Case and New "Domestic Production" in Construction Holland brand construction equipment. Equipment! We started to produceconstruction equipment locally in January 2020. #YERLİYERİNDE 112 CE Production in the 9 Month! 7

  9. Slide 9: Growth in Agricultural Equipment Sales

    In the first nine months of 2020, combine sales Growth in Agricultural Equipment Sales increased by 154% compared to the same period of the previous year. Combine Sales (Units) 302 154% Artıș 117 66 46 2018 2019 2019 2020 9M 9M 8

  10. Slide 10: vlog TiirkTraktor | // oni

    vlog TiirkTraktor | // oni

  11. Slide 11: Operational Results – Production: Tractor

    Operational Results – Production (Units) Tractor 29,473 9,251 38% 21,608 7,050 6,953 5,574 5,639 5,404 15,695 4,482 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 2018 9M 2019 9M 2020 9M 10

  12. Slide 12: Operational Results – Production: Engine

    Operational Results – Production (Units) Engine 73% 19,733 7,017 16,110 5,105 4,423 3,988 9,296 2,965 3,020 3,311 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 2018 2019 2020 9M 9M 9M 11

  13. Slide 13: Breakdown of Tractor Sales

    Breakdown of Tractor Sales Total Sales in 9M2020 22,200 tractors Tractors sold to Tractors sold to Export Market Local Market* 40% 60% 8,990 Units 13,210 Units *Locally Manufactured Tractors: 99.4% Imported Tractors: 0.4% 12

  14. Slide 14: Total Sales Units (tractors)

    Total Sales Units (tractors) 25,458 22,200 10,322 18,798 18% 8,990 9,088 11,905 -24% 7,312 7,683 6,886 3,204 5,898 6,014 5,429 15,136 3,302 3,417 13,210 4,343 2,369 92% 3,553 4,009 6,893 5,884 4,010 4,266 2,345 2,005 2,543 3,060 2018 2019 2020 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q

  15. Slide 15: Income Statement (mio TL)

    Income Statement (mio TL) 2019 2019/9 2020/9 ∆ - Domestic Sales 1,648 1,059 2,223 110% - Export Sales 2,158 1,664 1,580 -5% Total Sales Revenue 3,806 2,723 3,803 40% Gross Profit 549 363 743 105% Net Operating Income 248 150 490 228% Profit Before Tax 109 43 415 860% Net Income 112 44 360 727% EBITD

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

    Total Sales Revenue (mio TL) 3,803 40% 3,001 1,579 2,723 -5% 1,314 1,624 1,664 1,191 632 110% 1,083 922 983 988 818 529 2,223 494 419 1,687 591 596 477 992 1,059 589 662 569 341 331 387 2018 2019 2020 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 9M 9M 9M Local Export Local Export 15

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

    Profitability – Gross Profit (mio TL) 22.4% 18.6% 19.5% 17.2% 16.9% 18.0% 13.8% 14.2% 104% 13.3% 743 11.7% 363 559 105% 201 363 186 179 127 140 96 2018 2019 2020 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 9M 9M 9M Gross Profit Gross Profit Margin Gross Profit Gross Profit Margin 16

  18. Slide 18: Profitability – Operating Profit (mio TL)

    Profitability – Operating Profit (mio TL) 177% 12.9% 17.2% 10.9% 279 490 10.2% 9.1% 9.3% 5.5% 326 228% 7.2% 6.5% 110 150 2.3% 98 101 60 71 19 2018 2019 2020 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 9M 9M 9M Operating Profit Operating Profit Margin Operating Profit Operating Profit Mar

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

    Profitability – Profit Before Tax (mio TL) %15.4 6.9% 8.3% 6.1% 204% 10.9% 2.5% 1.5% 415 251 0.6% 5.8% 768% 173 1.6% 66 82 82 43 5 14 24 2018 2019 2020 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 9M 9M 9M PBT PBT Margin PBT PBT Margin 18

  20. Slide 20: Profitability – EBITDA (mio TL)

    Profitability – EBITDA (mio TL) 15.5% 19.1% 12.9% 13.6% 311 9.0% 11.8% 12.1% 10.0% 10.4% 132% 589 140% 388 6.2% 129 145 133 245 92 102 51 2018 2019 2020 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 9M 9M 9M EBITDA EBITDA Margin EBITDA EBITDA Margin 19

  21. Slide 21: Profitability – Net Profit (mio TL)

    Profitability – Net Profit (mio TL) 12.3% 9.5% 7.1% 7.7% 6.3% 5.5% 360 199 2.3% 161% 0.9% 1.5% 727% 166 1.6% 84 77 68 44 8 14 22 2018 2019 2020 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 9M 9M 9M Net Profit Net Profit Margin Net Profit Net Profit Margin 20

  22. Slide 22: Working Capital (mio TL)

    Working Capital (mio TL) 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 1,077 820 645 140 28.4% 28.8% 490 238 483 920 823 24.8% 20.0% 672 549 554 708 632 14.0% 637 561 538 487 467 500 515 10.9% 6.8% -480 -541 -514 -609 -632 -811 -1,083 Trade Receivables (net)** Inventories Trade Payables (n

  23. Slide 23: Net Financial Position (mio TL)

    Net Financial Position (mio TL) 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 92 -395 -1,155 -649 -476 -1,465 -899 1,412 1,120 857 599 828 617 747 49% 28% -397 43% 26% -351 26% -344 62% -745 -648 52% -1,068 -1,226 74% 74% 51% 72% -999 57% -982 -976 -771 -867 48% 38% -996 -757 Cash and Cash

  24. Slide 24: Net Financial Position / EBITDA

    Net Financial Position / EBITDA 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 92 0.13 -395 -476 -649 -899 -0.85 -0.94 -1,155 -1,465 -1.74 -2.53 -2.92 -3.28 NFP NFP / EBITDA 23

  25. Slide 25: Dividend

    Dividend Total TL 2.5 billion was distributed as dividend to the shareholders between 2004 – 2020. Dividend (mio TL) Dividend / Net Profit Dividend Yield (%) 24

  26. Slide 26: Expectations

    Expectations Our expectations for the year 2020 are as follows.* Turkish Tractor Industry Volume 46,000 – 49,000 units TürkTraktör Local Tractor Sales** 22,000 – 23,500 units Tractor Exports 11,500 – 12,500 units CAPEX 200 – 240 million TL *The market recovered faster than our expectations, because

  27. Slide 27: Disclaimer

    Disclaimer This presentation does contain forward-looking statements that reflect the Company management’s current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable, they may be a

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