Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — 9M 2022 Earnings Presentation
31 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Oct 27, 2022
Slide 1: TürkTraktör
27.10.2022 TÜRKTRAKTÖR
Slide 2: Agenda
AGENDA BUSINESS RESULTS Tractor Agricultural and Construction Equipment 2022 Expectations Financial Results 2
Slide 3: TürkTraktör's Position within CNHI
TÜRKTRAKTÖR’S POSITION WITHIN CNHI The only design and production center of New Holland TDD 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 tracto
Slide 4: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Rainfall Agricultural Sector & Input Costs & Consumer Trend Agricultural Production Product Prices Support Programs Financing 4
Slide 5: Rainfall Trend
RAINFALL TREND Cumulative Rainfall Rainfall Analysis 18% increase Comparison with last year (Oct.21-Sep.22 vs. Oct.20-Sep.21) 4% Decrease from the seasonal normal Regional Comparison Oct 21-Sep 22 Oct 20-Sep 21 Normal Between October 2021 - Sep 2022 cumulative rainfall increased by 18% compared to t
Slide 6: Turkish Agriculture Sector
TURKISH AGRICULTURE SECTOR 6
Slide 7: Turkish Agriculture Sector
TURKISH AGRICULTURE SECTOR Turkey’s agricultural14. economy in (2021 numbers) Turkey’s agricultural2. economy in (2021 numbers) Share in GDP 5.5% (2022 2Q numbers) Share in Total Employment 16.0% (2022 2Q numbers) the World Europe 12 month average Agricultural Production 2021 – 2022 1. Estimate (mil
Slide 8: Product Prices and Input Cost Development
PRODUCT PRICES AND INPUT COST DEVELOPMENT The increase in product prices was above the inflation rate. Agricultural Input Cost Development According the Agricultural Input Price Index, costs in the Aug Aug 22 vs Dec 20 2022 increased by 171% compared to Dec 2020. The prices indicated an increase bet
Slide 9: Agricultural Support Program in Turkey
AGRICULTURAL SUPPORT PROGRAM IN TURKEY 9
Slide 10: Agricultural Support Program in Turkey
AGRICULTURAL SUPPORT PROGRAM IN TURKEY Agricultural Support Payments s e crea i n 6 % 8 The budget of 29.0 billion TL announced for 2022 increased to 39.2 billion TL in total with the additional resources announced at the beginning of July. Draft budget for 2023 was announced as 54.0 billion TL. 10
Slide 11: Consumer Finance
CONSUMER FINANCE TiirkTraktér Golecege Hagintat. eA Kay TiirkTraktor 6 ghd
Slide 12: Consumer Finance
CONSUMER FINANCE Interest Rates The subsidy decision for agricultural loans for locally produced tractors (%50) is valid until the end of 2023. Ziraat Bank is in a competitive position with a post-subsidy 18% 17.4% interest rate of 5.6%. 17% 16.2% 15% 14.6% Ziraat Bank loan usage is more than 65%. 1
Slide 13: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Agricultural Sector & Input Costs & Consumer Rainfall Trend Agricultural Production Product Prices Support Programs Financing 13
Slide 14: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Agricultural Sector & Input Costs & Consumer Rainfall Trend Agricultural Production Product Prices Support Programs Financing • After the difficult 9 • According to the • Although Agricultural • In 2023, 54.0 billion TL • Ziraat continues to months in terms of agricultur
Slide 15: Turkish Tractor Market & TürkTraktör
TURKISH TRACTOR MARKET & TÜRKTRAKTÖR Turkish Tractor Market (unit) Market Share of TürkTraktör Source: TURKSTAT Source: TURKSTAT Total TürkTraktör 51.2% 53.4% 49.4% 42.9% 45.4% 43.8% !"#$ !"#% !"!" !"!# !"!#&% !"!!&% Market Market 2021/9 2022/9 Position Position Turkish tractor market decrease by 1%
Slide 16: Global Tractor Market and Export
GLOBAL TRACTOR MARKET AND EXPORT 16
Slide 17: Global Tractor Market
GLOBAL TRACTOR MARKET Total Tractor Market (thousand unit) Our important export markets grew by 16% in 2021. Our export markets are expected to close 2022 similar to 2021. 2022 2020 2021 Forecast Turkey is the world’s 4th largest tractor market according to 2021 Important Export total tractor sales.
Slide 18: Export
EXPORT Tractor Export from Turkey (unit) TürkTraktör’s Export (unit) Source: Tarmakbir '()*+ ',-.'-*.)/- 10% increase * Record TürkTraktör is an international player that exports to more than 130 countries. 80% exports are made to North American and European markets. Our export figure reached a reco
Slide 19: Production Status
TiirkTraktor Koc TiirkTraktor SN
Slide 20: Tractor Production in Turkey & TürkTraktör
TRACTOR PRODUCTION IN TURKEY & TÜRKTRAKTÖR Tractor Production of Turkey (unit) TürkTraktör’s Production (unit) Source: Tarmakbir '()*+ ',-.'-*.)/- 12% decrease TürkTraktör’s Share in Local Production In 2022/9, TürkTraktör produced 31,166 tractors representing 77% 66% of the total production in Turk
Slide 21: Agricultural & Construction Equipment
AGRICULTURAL&CONSTRUCTION EQUIPMENT 21
Slide 22: Non-Tractor Revenue
NON-TRACTOR REVENUE Non-Tractor Revenue In the first nine months of 2022, non-tractor revenue(equipment, CE, spare part) Combine increased by 103% compared to the previous year and its share in total revenue realized as 22%. Construction Equipment 17% increase 459 393 Construction equipment sales vo
Slide 23: 2022 Expectations
2022 EXPECTATIONS* Turkish Tractor Industry Volume: Total Market 59,500 - 63,500 unit Local Tractor Sales**: 26,500 - 28,500 unit Tractor Exports: 17,250 - 18,250 unit CAPEX: 650 - 800 million TL *Because the market exceeded our expectations, our Turkish tractor market expectation for 2022 increased
Slide 24: Financial Results
\ a FINANCIAL RESULTS Ne SN
Slide 25: 2022 9M Highlights
2022 9M HIGHLIGHTS TL 14,616 M Revenue, TL 2,760 M Gross Profit, 18.9% TL 1,055 M Free Cash Flow, +82% YoY +91% YoY TL 462 M YoY increase • Growth with the contribution from non- • Positive effect from pricing • Strong operating cash flow supporting tractor business areas (+103%), which • Favorable
Slide 26: Income Statement
INCOME STATEMENT (Million TL) 2020 2021 2021/9 2022/9 Change - Domestic Sales 3,930 7,929 5,609 9,662 72% - Export Sales 2,313 3,715 2,434 4,954 104% Total Sales Revenue 6,243 11,644 8,043 14,616 82% Gross Pro t 1,308 2,133 1,443 2,760 91% 21.0% 18.3% 17.9% 18.9% 1.0 pp Net Operating Income 928 1,57
Slide 27: Financial Performance (million TL)
FINANCIAL PERFORMANCE (million TL) Gross Pro t EBITDA 5-(6678-(9:) 5-(6678-(9:)7;*-<:= EBITDA EBITDA Margin 19.6% 16% 19.2% 15.7% 18.7% 15.3% 18.4% 18.6% 15% 14.9% 18.1% 14.3% 16.6% 13.4% PBT Net Pro t 8>' 8>'7;*-<:= Net Pro t Net Pro t Margin 15.7% 13.1% 12.9% 13.5% 13% 13.7% 12.4% 12% 11.4% 10% 10
Slide 28: Cash Flow & Debt Maturity Profile
CASH FLOW&DEBT MATURITY PROFILE 2022/9 Cash Flow&Net Cash Change (million TL) 2022 3Q 2021 4Q 733 1,200 435 1,883 2,223 521 1,055 1,217 Turnover Days&Working Capital (million TL) Liquidity&Debt Maturity Pro le (million TL & €) 2021 4Q 2022 3Q Turnover Days TL Euro 66 67 25 59 17 23 46 3 28 fi
Slide 29: Net Financial Position (million TL)
NET FINANCIAL POSITION (million TL) Net Financial Position NFP / EBITDA 0.56 0.13 0.21 0.19 -0.01 0.25 -0.40 -0.20 -0.85 -0.73 -0.94 29
Slide 30: Dividend (million TL)
DIVIDEND (million TL) Total TL 4.6 billion was distributed as dividend to the shareholders between 2004-2022. 115% 117% 109% 107% 100% 101% 94% 94% 91% 89% 91% 87% 83% 72% 75% 68% 54% 40% 26% 11% 16% 13% 15% 14% 8% 10% 10% 7% 10% 8% 7% 6% 8% 6% 5% 7% 8% 2% Dividend Dividend / Net Pro t Dividend Yiel
Slide 31: 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
Türk Traktör ve Ziraat Makineleri A.Ş. — 9M 2022 Earnings Presentation on 6ix