Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — H1 2018 Earnings Presentation
26 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, October 2018
Slide 1: Investor Presentation October 2018
Investor Presentation October 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: Where aren't we yet
TürkTraktör WHERE AREN’T WE YET… Continuously increasing export penetration, POSITION within CNH INDUSTRIAL 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
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 29.473 14.860 2012 2013 2014 2015 2016 2017 2018/9 2012 2013 2014 2015 2016 2017 2018/9 Total Revenue (mio TL) Gross Profit (mio TL) 1.974 2.17
Slide 6: Growth of Shareholder Value
Growth of Shareholder Value Dividend Yield Earnings per Share 115% 117% 107% 94% 75% 68% 7% 10% 8% 7% 6% 8% 5.24 4.89 4.81 6.93 6.01 2.56 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018/6 Dividend / Net Profit Dividend Yield (%) Foreign Ownership in Free Float (%) 75.91% Commitment to Co
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: Government Support
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: TürkTraktör Finance - All Financial Solutions Under a Single Roof
TürkTraktör Finance - All Financial Solutions Under a Single Roof • First in Turkish agriculture sector • Aimed to enable farmers to have new tractors through the alternative financial solution and to support the increase of mechanization and modernization of agriculture • Covers tractor, equipment
Slide 15: 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 16: Global Tractor Market
Global Tractor Market (thousand units) (source: Systematics) North America South America Europe Turkey is the 5th 233 246 167 181 66 60 43 145 163 96 92 60 41 biggest market in 2016 2017 2017/8 2018/8 2016 2017 2017/8 2018/8 2016 2017 2017/8 2018/8 the world in terms of annually sold tractor units.
Slide 17: 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% 45% 48.302 48.302 45.823 47.536 46.031 38.679 38.530 39.574 2012 2013 2014 2015 2016 2017 2018/8 27.752 20.884 23.730 1
Slide 18: 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 33.423 1,52 1,57 1,63 1,69 1,76 1,84 1,87 2012 2013 2014 2015 2016 2017 2018/8 2012 2013 2014 2015 2016 2017 2018/8 Turkish
Slide 19: Sales of TürkTraktör
Sales of TürkTraktör Tractor Sales (units) 49.613 46.230 12.023 12.625 *Domestic tractor sales decreased by 30% in 2018/6. 24.908 *Export tractor sales increased by 4% comparing to 2017/6. 37.590 6.049 19.421 33.605 6.298 18.859 13.123 2016 2017 2017/6 2018/6 Combine Sales (units) Local Export 316 3
Slide 20: Income Statement
Income Statement (mio TL) 2016 2017 ∆ 2017/6 2018/6 ∆ - Domestic Sales 2,469 3,086 25% 1,496 1,389 -7% - Export Sales 974 1,129 16% 556 736 32% Total Sales Revenue 3.443 4.215 22% 2,052 2,125 4% Gross Profit 742 731 -2% 343 374 9% Net Operating Income 455 423 -7% 199 206 3% Profit Before Tax 388 351
Slide 21: Profitability
Profitability (%) 2016 2017 ∆ 2017/6 2018/6 ∆ Gross Profit Margin 21.6 17.3 -4.3 pp 16.7 17.6 0.9 pp Operating Profit Margin 13.2 10.0 -3.2 pp 9.7 9.7 0.0 pp Net Profit Margin 10.7 7.6 -3.1 pp 6.7 6.4 -0.3 pp EBITDA Margin 14.9 11.7 -3.2 pp 11.3 11.6 0.3 pp Gross Operating Net EBITDA Gross Operating
Slide 22: Gross Profit to EBITDA Flow
Gross Profit to EBITDA Flow (mio TL) as of 30.06.2018 374 168 310 374 65 4 40 246 206 141 137 Gross Opex Operating Other & Profit Taxation Net Income Depreciation EBITDA Profit Income Financial Before Expenses Tax 22
Slide 23: Debt Profile & Financial Ratios
Debt Profile & Financial Ratios (mio TL) 2016 2017 ∆ 2017/6 2018/6 ∆ - Cash & Cash Equivalents 228 442 93% 460 155 -66% - Total Financial Debt 948 1,127 19% 1,244 1,555 25% Net Financial Position (720) (685) -5% -784 -1,400 79% Current Ratio 2.0 1.8 -0.2 pp 1.9 1.9 0.0 pp Quick Ratio 1.3 1.3 -0.02 p
Slide 24: Working Capital
Working Capital (mio TL) 1.106 654 713 647 832 813 651 738 955 556 566 472 -494 -562 -725 -681 2016 2017 2017/6 2018/6 Trade Payables (net) Inventories Trade Receivables (net) 24
Slide 25: 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 26: Investor Relations Contact
Investor Relations Contact Marco VOTTA Ahmet CANBEYLI Ahmet DİNÇ CEO CFO Investor Relations Team Leader +90 312 2332001 +90 312 2332003 +90 312 2332502 marcov@turktraktor.com.tr ahmet.canbeyli@turktraktor.com.tr Ahmet.dinc@turktraktor.com.tr investorrelations@turktraktor.com.tr
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