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

Turk Traktor Ve Ziraat Makineleri A.s — FY2023 Earnings Presentation

44 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Apr 26, 2024

  1. Slide 1: Investor Presentation

    GAKos > @ INVESTOR PRESENTATION 26.04.2024 TiirkTraktir7©... CNH

  2. Slide 2: Disclaimer

    DISCLAIMER With the Capital Markets Board of Turkey’s Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 inflationary accounting provisions. Ac

  3. Slide 3: Corporate Structure

    CORPORATE STRUCTURE © : Total 2,938 employees** 2,195 shop-floor employee | 54,000 units 743 office employee tractor production capacity* Established in 1954 Shareholder Structure (OVO) Koc Founded in 1926, Kog Holding is BORSA _ Free Float CNH CNH Industrial is a one of the leading Y Turkey's large

  4. Slide 4: Plants & Facilities

    GAKog Ankara Factory Engine, Transmission and Axle Manufacturing Center CE Manufacturing Center Opening : 25.06.1954 Indoor Area : 82,000 m? Total Area : 257,325 m? Izmir CE Facility Opening : 18.09.2014 Indoor Area : 3,157 m? Total Area : 6,396 m? PLANTS & FACILITIES Erenler Factory Paint shop and

  5. Slide 5: Position within CNH Industrial

    Position within CNH Industrial The only design and production center of New Holland TD and Case IH JX series tractors in the world The only production center of New Generation Utility Medium series tractors and transmissions in the world The only production center of Utility Light series tractors an

  6. Slide 6: Investment Highlights

    INVESTMENT HIGHLIGHTS ° 1 Leading tractor manufacturer with diversified product range o ros The largest tractor producer in Turkey with 54K tractor capacity Sustainable growth Good shareholder returns Tractor market leader for the last consecutive 17 years Vertically integrated operation 4 Has long-

  7. Slide 7: TürkTraktör at a Glance

    TURKTRAKTOR AT A GLANCE é Tractor ____@_Tractor Manufacturing (unit) ____@_Tractor Manufacturing (unit) © Total Tractor Sales (unit mlmport Tractor mDomestic Tractor +m Export 51,423 48,560 ay 61g Pe, 51,865 44,531 4 625 ry 179 aa 14,212 13,699 2021 2022 2023 ES CJ 2021 2022 2023 2023/3 2024/3 Total

  8. Slide 8: Value Created for Our Shareholders

    VALUE CREATED FOR OUR SHAREHOLDERS d @ Foreign Ownership in Free Float (%) #4 Stock Chart 5 5 z 250 5 8 5 Fe eRERhe rs 5 ESOS, 0 FE LEFE ILE SGP FF FPL IF LL LL SS SESE EEE EEE EEE SE SE SPX FFX KK KK KX SX Xk SX MK —TirkTraktér —BIST- 100 —BIST-30 —BIST - MESY 2 Earnings per Share 156.2 80.8 2022,

  9. Slide 9: Tractor

    TRACTOR * TiirkTrakt6r has continued to be the first choice of farmers WY NEW HOLLAND as the uninterrupted market pene in the Turkish tractor Local Tractors (48HP-1 4SHP) > market for the lest 17 years, with the broadest sales and Import Tractors (116HP-380HP) after-sales service network of New Holl

  10. Slide 10: Construction Equipment

    GA Koc CONSTRUCTION EQUIPMENT , > * TiirkTrakt6r, which stepped into the construction 4q CASE CONSTRUCTION 2g CONSTRUCTION - ipment industry in 201 he distributor of n ; Light Construction Equipment equipment industry in 20 CSU eo 0 ee d Light Construction Equipment New Holland branded construction

  11. Slide 11: Agricultural Equipment

    GAkoe AGRICULTURAL EQUIPMENT 4 QY NEW HOLLAND | x | ae Agricultural Equipment — Equipment Vv ¢ Agricultural equipment covers a wide range of actively used products in all processes, starting with tillage, planting, spraying, fertilizing, and then harvesting and transporting. + In the agricultural eq

  12. Slide 12: Market Position of Our Brands

    MARKET POSITION OF OUR BRANDS y Q% NEW HOLLAND + Market leader for 17 years in a row * 38.9%* market share + The largest dealer network covering all regions « Wide customer portfolio * Targeting professional farmers * 11.3%* market share UME VLHOLY ¢ Weare strengthening our position in the construct

  13. Slide 13: Sales and Service Network Map

    13 BARTIN KIRKLARELİ KASTAMONU SİNOP İSTANBUL EDİRNE ZONGULDAK KARABÜK ARTVİN SAMSUN ARDAHAN TEKİRDAĞ KOCAELİ DÜZCE RİZE ORDU TRABZON YALOVA SAKARYA AMASYA GİRESUN BOLU ÇANKIRI KARS ÇORUM TOKAT BAYBURT BİLECİK GÜMÜŞHANE ÇANAKKALE BURSA ERZURUM IĞDIR KIRIKKALE ANKARA ERZİNCAN BALIKESİR YOZGAT ESKİŞEH

  14. Slide 14: Sales and Service Network Map

    14 BARTIN KIRKLARELİ KASTAMONU SİNOP İSTANBUL EDİRNE ZONGULDAK KARABÜK ARTVİN SAMSUN ARDAHAN TEKİRDAĞ KOCAELİ DÜZCE RİZE ORDU TRABZON YALOVA SAKARYA AMASYA GİRESUN BOLU ÇANKIRI KARS ÇORUM TOKAT BAYBURT BİLECİK GÜMÜŞHANE ÇANAKKALE BURSA ERZURUM IĞDIR KIRIKKALE ANKARA ERZİNCAN BALIKESİR YOZGAT ESKİŞEH

  15. Slide 15: Koç TürkTraktör CNH

    15 Koc TiirkTraktor c CNH

  16. Slide 16: Turkish Agriculture Sector

    TURKISH AGRICULTURE SECTOR y Turkey’s Turkey’s Share in 29 Share in 1 4. 6 0, agricultural agricultural = GDP 1 0 the total 0 economy in (2022 a ECONOMY IN (5099 numbers) (2023 numbers) employment (2023 numbers) the World Europe SE a 6.2% increase Agricultural Production 2022-2023 (million ton) m 20

  17. Slide 17: Agricultural Support Programs in Turkey

    AGRICULTURAL SUPPORT PROGRAMS IN TURKEY ? TiirkTraktir7©...

  18. Slide 18: Agricultural Support Programs in Turkey

    AGRICULTURAL SUPPORT PROGRAMS IN TURKEY , Agricultural Support Payments ¢eitiont) “> 91.6 Ps 23.0 - se i | li _ Agricultural Investment Supports ition.) Investment Supports (ition 11) dt Ae 6 25.1 124 54 54 — 2019 2020 2021 2022 2023 + Agricultural support payments include items such as fuel, fertil

  19. Slide 19: Consumer Finance

    CONSUMER FINANCE 2s, § 2 s = =

  20. Slide 20: Consumer Finance

    CONSUMER FINANCE y Interest Rates * Ziraat Bank is in a competitive position with a post-subsidy 4 <4 Ziraat Bankasi interest rate of 29.4%. 58.8% Ziraat Bank loan usage was 69.0% as of 2023. 4 Peas 22.5% wee 18am 710% 4 79% 68% 6.3% 56% 50% Financing Distribution of TiirkTraktér's Sales Dec21 Aug22

  21. Slide 21: TürkTraktör Finance

    TURKTRAKTOR FINANCE TurkTraktor ges Finans TiirkTraktir7©...

  22. Slide 22: TürkTraktör Finance

    TURKTRAKTOR FINANCE B “SL First in the Turkish agriculture sector |, Aimed to enable farmers to have new tractors through the ¥, alternative financial solution and to support the increase of Y mechanization and modernization of agriculture All Financial Solutions TiirkTraktor Undera mam Finans Singl

  23. Slide 23: Highlights of Turkish Tractor Market

    HIGHLIGHTS OF TURKISH TRACTOR MARKET GAKog TiirkTraktér7.... CNH

  24. Slide 24: Highlights of Turkish Tractor Market

    Total Tractor HIGHLIGHTS OF TURKISH TRACTOR MARKET Tractors older than 35 years 48% : Ratio of the Actively used tractors >24 Tractor years GA Kos Turkey was the 4" biggest tractor market in the world in the 2023 *Source: Association of Turkish Insurance and Reinsurance Companies TiirkTraktér7©....

  25. Slide 25: Global Tractor Market

    GLOBAL TRACTOR MARKET i f \ \ —— 1 inn ia = \V a 4 _ “= eZ) — f S— TiirkTraktir7©...

  26. Slide 26: Global Tractor Market

    GLOBAL TRACTOR MARKET , Total Global Market (thousand unit) 6m 2071 | 2022 | 2023 | 2024 Important Export prec 620 551 507 481 WF North America 351 302 278 263 @ Europe 172 157 153 145 Other 97 93 75 73 india 904 912 915 880 @ china 224 281 220 225 Turkey 64 67 78 60-68 © Brazil 53 52 49 44 @ Pakist

  27. Slide 27: Tractor Export from Turkey

    “&-Tractor Export from Turkey* (unit 22,472 20,148 20,511 | 6,176 17,095 2021 2022 2023 _s ‘Source: Tarmakbir Total =m TiirkTraktor 16,016 6,090 | 5,411 “ff “8: TiirkTraktor’s Export (unit aki decrease 16,176 17005 16,016 12% decrease | 058 SN 4,460 2021 2022 2023 CI 2024/3 » TiirkTraktér’s Share in

  28. Slide 28: Production

    PRODUCTION F GAKog TiirkTraktér7.... CNH

  29. Slide 29: Tractor Production in Turkey

    TRACTOR PRODUCTION IN TURKEY Oe Tractor Production of Turkey* (unit) Oke TiirkTraktér’s Production (unit) a 81 frat Total =m TarkTraktér 15% i aS 82,343 79,478 48.560 4A, yo 48,560 44,619 51,423 ya decrease 24,274 13,625 20,985, 5 179 te = 2021 2022 2023 2023/3 2024/3 2021 2022 2023 LJ = * Updated a

  30. Slide 30: Market Position

    30 Market Market 2023 2024/2 Position Position New Holland 27,124 1. 6,547 1. Case IH 7,435 2. 1,901 2.

  31. Slide 31: Sales of TürkTraktör

    31 SALES OF TURKTRAKTOR oh Tractor Sales of TlirkTraktOr (unit > Locally produced tractor sales increased by ae mlmport ™Local ™ Export 30% in 2023. 31,956 eae oo E Import tractor sales increased by 68% in 2023. 16,176 G ; In 2023 export tractor sales decreased Pai by 6% comparing to 2022. 2021 2022

  32. Slide 32: Financial Results

    GAkog FINANCIAL RESULTS yo YY vow ev TiirkTraktir7©... CNH

  33. Slide 33: 2023 Highlights

    TL 58.4 B Revenues, +41% YoY * Total tractor revenue +46% * All-time record tractor sales * Non-tractor revenue +23%, representing 17% of total revenue 2023 HIGHLIGHTS TL 15.6 B Gross Profit, 26.7% +142% YoY * Positive effect from pricing + Favorable product mix * 11.1 pp higher than 2022 33 TL 10.8

  34. Slide 34: Income Statement

    GA Kos (million TL) - Domestic Sales - Export Sales Total Sales Revenue Gross Profit Margin Net Operating Income Margin Profit Before Tax Margin Net Income Margin EBITDA Margin INCOME STATEMENT 2022 27,935 13,462 41,397 6,449 15.6% 3,973 9.6% 4,554 11.0% 4,310 10.4% 4,914 11.9% TiirkTraktir7©... 202

  35. Slide 35: Financial Performance

    15.6% 9.6% 10.4% FINANCIAL PERFORMANCE id Gross Profit Margin Operating Profit Margin Net Profit Margin EBITDA Margin © Gross Profit Margin 20.6% = Operating Profit Margin = Net Profit Margin m EBITDA Margin 2022 2023 TiirkTraktér72... CNH

  36. Slide 36: Gross Profit to EBITDA Flow

    GROSS PROFIT to EBITDA FLOW (nition 7) Gross Profit OPEX Operatig Income Other& Profit Before Tax Financial Expense TiirkTraktir7©... Tax Expense Net Profit 36 Depreciation& Amortization EBITDA CNH

  37. Slide 37: *Turnover days calculated based on year end figures.

    37 *Turnover days calculated based on year end figures.

  38. Slide 38: Debt Profile & Financial Ratios

    GA Kos DEBT PROFILE & FINANCIAL RATIOS (million TL) - Cash & Cash Equivalents - Financial Investments - Total Financial Debt Net Financial Position NFP/EBITDA Current Assets / Total Assets Current Liabilities / Total Liabilities Capex 2022 7,278 91% 1,609 TiirkTraktir7©... 92% 1,736 Change 69% -98%

  39. Slide 39: Net Financial Position

    NET FINANCIAL POSITION (nition 11) = Net Financial Position —NFP / EBITDA 1,560 2022 2023 TiirkTraktir7©... 39 CNH

  40. Slide 40: 2024 Expectations

    2024 EXPECTATIONS y Tractor Market > Turkish Tractor Industry Volume: 60,000 — 68,000 unit > Local Tractor Sales*: 31,000 — 35,000 unit ie ee } Tractor Exports: 14,000 — 15,500 unit TuirkTraktOr > carex: 80-90 mitlions *Sales to the dealers included imported tractors GAKoe TiirkTraktér7... cN4

  41. Slide 41: Appendix

    APPENDIX C244 444445 TiirkTraktir7©... CNH

  42. Slide 42: Without IAS 29 inflationary accounting standards

    42 *Without IAS 29 inflationary accounting standards

  43. Slide 43: Without IAS 29 inflationary accounting standards

    43 *Without IAS 29 inflationary accounting standards

  44. Slide 44: Investor Relations Contact

    INVESTOR RELATIONS CONTACT 3 Sila AKGAY Merig ONARGAN Investor Relations and Sustainability Team Leader Investor Relations Leader Specialist +90 312 2332502 @ +90 312 2332504 Sila. Akcay@turktraktor.com.tr Meric.Onargan@turktraktor.com.tr investorrelations@turktraktor.com.tr @AKog TiirkTraktér7©...

Türk Traktör ve Ziraat Makineleri A.Ş. — FY2023 Earnings Presentation on 6ix