Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Investor Presentation (June 2014)
48 slides from Turk Traktor Ve Ziraat Makineleri A.s's investor presentation, June 2014
Slide 1: Investor Presentation June 2014
INVESTOR PRESENTATION JUNE 2014
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
Slide 3: Agenda
2 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
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
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
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
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
Slide 8: Agriculture Sector in Turkey
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
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
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
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
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
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
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
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
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
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
Slide 18: Agenda
17 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 19: Turkey in Worldwide Tractor Market
18 TURKEY in WORLDWIDE TRACTOR MARKET 1.600 Turkey 1.400 Other Countries 1.200 1.000 Pakistan 800 India 600 China 400 Europe 200 North America 0 2006 2007 2008 2009 2010 2011 2012 2013 2014/3 WORLD TRACTOR MARKET Units in Thousand 2006 2007 2008 2009 2010 2011 2012 2013 2014/3 North America 239 242
Slide 20: Tractor Market in Turkey
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
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 34.362 unit 29.917 30.000 27.022 20.000 18.639 13.758 10.587 10.000 8.127 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/8 2013 2014/8 Source : TURKSTAT
Slide 22: Tractor Market in Turkey
21 TRACTOR MARKET in TURKEY 35.000 60% 52,0% 51,5% 50,3% 50,4% 50,0% 30.000 49,9% 48,4% 48,4% 50% 46,0% 25.000 37,7% 40% 33,6% 20.000 30,6% 30,2% Unit 28,5% 28,5% 27,0% 30% 25,8% 24,9% 15.000 22,7% 21,0% 21,4% 21,5% 23,5% 22,2% 20% 16,5% 21,1% 10.000 16,3% 10% 5.000 13.011 15.886 13.497 14.469 17.18
Slide 23: Tractor Market in Turkey
22 TRACTOR MARKET in TURKEY Tractor Sales @ 2013/8 Tractor Sales @ 2014/8 Import Import Products NH + CIH Products NH + CIH 6.403 14.469 7.388 17.188 Other Local Other Local Manufacturers Manufacturers 9.045 9.786 Market Share @ 2013/8 Market Share @ 2014/8 Market Share @ Last 12 Months NH + CIH NH
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
Slide 25: Agenda
24 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 26: Competitive Advantages
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
Slide 27: Competitive Advantages
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
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
Slide 29: Agenda
28 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
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
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
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
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
Slide 34: Construction Equipment
CONSTRUCTION EQUIPMENT SKID STEER LOADERS BACKHOE LOADERS COMPACT WHEEL LOADERS WHEEL LOADERS MINI EXCAVATORS CRAWLER EXCAVATORS TELEHANDLERS
Slide 35: Agenda
33 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 36: Operational Results
34 OPERATIONAL RESULTS Tractor Sales Units 14. 565 14. 402 7. 873 7. 712 7. 079 25. 597 24. 624 15. 935 14. 545 11. 968 2012/6 2013/6 2014/6 2012/F Y 2013/F Y Local Sales Export Sales 2014/6 Local Sales (units) 2014/6 Export Sales (units) NH Local Case IH Export 12.967 1.662 89% 22% Case IH Local 1.
Slide 37: Operational Results
35 OPERATIONAL RESULTS MANUFACTURING UNITS TRANSMISSION EXPORT UNITS 2012/6 2013/6 2014/6 2012 2013 Tractor Transmission
Slide 38: Operational Results: Market Leader in Agricultural Equipment
36 OPERATIONAL RESULTS MARKET LEADER IN AGRICULTURAL EQUIPMENT SECTOR C ombine Sales Units 2014/6 177 2013/6 615 2012/6 341
Slide 39: Financial & Operational Performance
37 FINANCIAL & OPERATIONAL PERFORMANCE million EUR 2012/6 2013/6 2014/6 2012/FY 2013/FY Revenue 523 439 460 839 741 Gross Profit 112 94 88 180 161 Operating Profit 82 66 58 125 111 Profit Before Tax 88 64 58 135 109 Net Profit 74 54 49 114 95 EBITDA 85 71 63 133 119 Revenue @ 2013/6 (million Eur) Re
Slide 40: Financial & Operational Performance
38 FINANCIAL & OPERATIONAL PERFORMANCE Profitability Ratios 21,5% 21,4% 21,4% 21,7% 19,1% 16,3% 16,1% 15,9% 16,1% 15,6% 15,1% 14,9% 14,9% 14,1% 13,8% 13,6% 12,4% 12,7% 12,9% 10,7% 2012/6 2013/6 2014/6 2012/FY 2013/FY Gross Margin Operating Margin EBITDA Margin Net Margin Re turn o n Equity & Return
Slide 41: Financial & Operational Performance
39 FINANCIAL & OPERATIONAL PERFORMANCE million EUR 2012/6 2013/6 2014/6 2012/FY 2013/FY Total Assets 617 554 622 561 509 Current Assets 535 447 445 470 370 Non-Current Assets 82 108 177 92 139 Total Liabilities 617 554 622 561 509 Short Term Liabilities 300 231 282 186 131 Long Term Liabilities 69 8
Slide 42: Financial & Operational Performance
40 FINANCIAL & OPERATIONAL PERFORMANCE Liquidity Ratios 2,8 2,5 1,9 1,9 1,8 1,7 1,6 1,4 1,4 1,0 2012/6 2013/6 2014/6 2012/FY 2013/FY Current Ratio Quick Ratio
Slide 43: Financial & Operational Performance
41 FINANCIAL & OPERATIONAL PERFORMANCE Net Working Capital 215 206 mln € 168 172 160 2012/6 2013/6 2014/6 2012/F Y 2013/F Y C APEX 63, 53 mln € 31, 70 32, 02 19, 10 9, 71 2012/6 2013/6 2014/6 2012/F Y 2013/F Y
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% 10% 8% 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
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 30.06.2013 BIST 100 31.07.2013 TTRAK 31.08.2013 30.09.2013 31.10.2013 31.12.2012 =100 30.11.2013 31.12.2013 31.01.2014 TTF Values 28.02.2014 BORSA ISTANBUL & TTRAK INDEX 31.03.2014 30.04.2014 31.05.2014 30.06.2014 % 0,4 %
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
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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