Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Investor Presentation (April 2019)
29 slides from Turk Traktor Ve Ziraat Makineleri A.s's investor presentation, Apr 12, 2019
Slide 1: Investor Presentation April 2019
Investor Presentation April 2019 Date of Last Update: 12.04.2019
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
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: TürkTraktör at a Glance
TürkTraktör at a Glance Tractor Manufacturing Units Local Tractor Sales Units* 38,530 45,823 47,536 46,031 48,302 34,114 24,091 29,550 32,535 33,053 36,648 17,315 4,482 2,324 2013 2014 2015 2016 2017 2018 2019/3 2013 2014 2015 2016 2017 2018 2019/3 Total Revenue (mio TL) Gross Profit (mio TL) 1,974
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 4.50 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Dividend / Net Profit Dividend Yield (%) Foreign Ownership in Free Float (%) Commitment to Corporate G
Slide 7: Brands & Products
Brands & Products Tractors (43HP-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 12 years in a row *Targeting professional *Having ~39%* 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: Network
Network Network at a Glance 99 NH Tractor Dealer 42 NH / 1 CASE CE* Dealer Our Strengths in Network 30 CASE Tractor Dealer Broadest network in Turkey’s agricultural sector Widely distributed and close to customer ~500 services** Financially strong (NH and CASE IH) Wide customer portfolio ~150 spare
Slide 10: 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 11: Turkey - Agriculture Sector
Turkey - Agriculture Sector (source : tarim.gov.tr & TURKSTAT) Turkey’s Agriculture Sector with Numbers Turkey’s agricultural economy in the world Turkey’s agricultural economy in Europe share of the agricultural industry over the GDP (2018 numbers) share in the total employment (2018 numbers) numbe
Slide 12: Turkey - Agriculture Sector
Turkey - Agriculture Sector (source : tarim.gov.tr) Government Support in Turkey (billion TL) 17.0 14.5 11.5 12.7 9.1 10.0 2014 2015 2016 2017 2018 2019 Budget Figures It has been announced that the government has allocated budget for agriculture support in 2019. 12
Slide 13: Supports Provided within the scope of Agricultural Policies
Supports Provided within the scope of Agricultural Policies (source: www.tarim.gov.tr) Breakdown of resources allocated to agriculture in 2019 budget has been announced as 17.0 billion TL for agricultural support, 5.1 billion TL for investment loans and 5.3 billion TL for agricultural loans. Breakdo
Slide 14: 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 15: 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 16: My Tractor is Safe
My Tractor is Safe • Traffic and insurance operations of our tractors sold through our branches will be carried out under this roof. 16
Slide 17: Highlights of Tractor Market
Highlights of Tractor Market (source : TARMAKBİR) Average working time of Mechanical life Ratio of the a tractor of a tractor Tractors older tractors >24 (hours/year) (hours) than 35 years years Equipment unit Agricultural land per Average Tractor 4WD Traktör Ratio per tractor tractor (hectare) Powe
Slide 18: Global Tractor Market
Global Tractor Market (thousand units) (source: Systematics) North America South America** Europe Turkey is the 5th* 246 262 66 65 163 147 7 7 biggest market in 25 27 17 19 2017 2018 2018/2 2019/2 2017 2018 2018/2 2019/2 2017 2018 2018/2 2019/2 the world in terms of annually sold tractor units. Aust
Slide 19: 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 49% 49% 56,407 48% 48% 47% 48,302 47,689 43% 44% 45,823 47,536 46,031 38,530 2013 2014 2015 2016 2017 2018 2019/2 34,114 3,516 17,877 18,519 19,079 20,884 23
Slide 20: Turkish Tractor Market
Turkish Tractor Market Turkish Tractor Market (units) Tractor Park in Turkey (mio units) Source : TURKSTAT Source : TURKSTAT 66,775 72,949 48,044 1.57 1.63 1.69 1.76 1.84 1.88 1.89 52,286 59,449 70,205 2,683 2013 2014 2015 2016 2017 2018 2019/2 2013 2014 2015 2016 2017 2018 2019/2 Turkish Tractor Ma
Slide 21: Sales of TürkTraktör
Sales of TürkTraktör Tractor Sales (units) 49,613 46,230 12,023 12,625 *Domestic tractor sales decreased by 53% in 2018 32,157 YoY. 14,502 *In 2018 export tractor sales increased by 21% 37,590 comparing to 2017. 33,605 17,655 2016 2017 2018 Combine Sales (units) Local Export 328 316 302 2016 2017 20
Slide 22: Income Statement
Income Statement (mio TL) 2016 2017 2018 ∆ - Domestic Sales 2,469 3,086 2,016 -35% - Export Sales 974 1,129 1,893 68% Total Sales Revenue 3,443 4,215 3,909 -7% Gross Profit 742 731 717 -2% Net Operating Income 455 423 411 -3% Profit Before Tax 388 351 256 -27% Net Income 370 321 240 -25% EBITDA 512
Slide 23: Profitability
Profitability (%) 2016 2017 2018 ∆ Gross Profit Margin 21.6 17.3 18.3 1.0 pp Operating Profit Margin 13.2 10.0 10.5 0.5 pp Net Profit Margin 10.7 7.6 6.1 -1.5 pp EBITDA Margin 14.9 11.7 12.7 1.0 pp Gross Operating Net EBITDA Gross Operating Net EBITDA Margin Margin Margin Margin Margin Margin Margin
Slide 24: Gross Profit to EBITDA Flow
Gross Profit to EBITDA Flow (mio TL) as of 31.12.2018 306 374 310 717 155 16 87 498 411 256 240 Gross Opex Operating Other & Profit Taxation Net Income Depreciation EBITDA Profit Income Financial Before Expenses Tax 24
Slide 25: Debt Profile & Financial Ratios
Debt Profile & Financial Ratios (mio TL) 2016 2017 2018 ∆ - Cash & Cash Equivalents 228 442 413 -7% - Total Financial Debt 948 1,127 1,773 57% Net Financial Position (720) (685) (1,360) 98% Current Ratio 2.0 1.8 2.0 0.2 pp Quick Ratio 1.3 1.3 1.0 -0.3 pp Current Assets / Total Assets 69% 72% 70% -2
Slide 26: Working Capital
Working Capital (mio TL) 2017 1Q 2017 2Q 2017 3Q 2017 4Q 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2.000 1.106 1.194 842 1.021 1.500 849 654 20,6% 25,0% 647 648 955 20,0% 820 16,9% 593 19,9% 566 1,122 1.000 472 535 15,1% 1,085 17,6% 16,1% 500 837 737 769 813 832 832 593 449 - -581 -562 -656 -521 -513 -725 -81
Slide 27: 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 28: Expectations
Expectations Our expectations for the year 2019 are as follows. Turkish Tractor Industry Volume 33,000 – 38,000 units TürkTraktör Local Tractor Sales* 15,500 – 18,000 units Tractor Exports 14,000 – 15,000 units CAPEX 200 – 250 Million TL * Sales to the dealers included imported tractors 28
Slide 29: Investor Relations Contact
Investor Relations Contact Ahmet CANBEYLİ Ahmet DİNÇ CFO Investor Relations Team Leader +90 312 2332003 +90 312 2332502 Ahmet.Canbeyli@turktraktor.com.tr Ahmet.Dinc@turktraktor.com.tr investorrelations@turktraktor.com.tr
Türk Traktör ve Ziraat Makineleri A.Ş. — Investor Presentation (April 2019) on 6ix