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

Turk Traktor Ve Ziraat Makineleri A.s — Q1 2015 Earnings Presentation

48 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, March 2015

  1. Slide 1: Investor Presentation March 2015

    INVESTOR PRESENTATION MARCH 2015

  2. Slide 2: Company Profile

    1 COMPANY PROFILE Ankara Plant Güvercin Yolu No: 111-112 Gazi Ankara Turkey Erenler 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 – Sales & Afte

  3. Slide 3: In the World and in Turkey: Agenda

    2 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  4. 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

  5. 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 23,9 million industry over hectare

  6. 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

  7. Slide 7: Agriculture Sector in Turkey

    6 AGRICULTURE SECTOR IN TURKEY 0% 70,0 8,4% 0% 61,8 60,0 62,0 0% 8,3% 61,7 60,7 57,1  While the contribution of 0% 51,0 8,0% 7,9% 7,4% 50,0 agriculture to National Income was 51,0 billion 7,1% 0% 40,0 0% dollar in 2009, it has 30,0 reached to 57,1 billion 0% 0% 20,0 dollar in 2014. 0% 10,0 0% 0% 0,

  8. Slide 8: Agriculture Sector in Turkey

    7 AGRICULTURE SECTOR IN TURKEY Agricultural Export (Billion $) 18,8 17,7 15,3 15,9 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 2013 2014  In 2014, Turkey’s agricultural export reached to 18,8 billion dollars consisting of 17,8 billion dollar for foo

  9. Slide 9: Agriculture Sector in Turkey

    8 AGRICULTURE SECTOR IN TURKEY Turkey, located at the most favorable climate zone in geographical terms, has NUT adequate natural resources. Turkey has CHERRY the capacity to support the agricultural FIG BLACK CHERRY industry with her increasing population APRICOT QUINCE CHESTNUT and purchasing powe

  10. 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

  11. 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

  12. 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

  13. Slide 13: Turkish Tractor Park & Renewal Potential

    12 TURKISH TRACTOR PARK & RENEWAL POTENTIAL  Reference to TURKSTAT data, there are 1.626.938 units of tractors in Turkish tractor App. park. The average of the park is over 25. Mechanical Life 20-22  There are 747.333 tractors over 25 years. Years Total Average Tractor Park 1.626.938 Age >25 units

  14. 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

  15. Slide 15: Resources Allocated to Agriculture in Turkey

    14 RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY 2015* Agricultural Support Payment 10 billion TL Resources Allocated to Agriculture 14,7 billion TL Agricultural Support Payment 9,5 billion TL 2014 Resources Allocated to Agriculture 14,2 billion TL 2013 Agricultural Support Payment 8,7 billion TL Res

  16. Slide 16: Resources Allocated to Agriculture in Turkey

    15 RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY Resources Allocated to Agriculture (million TL) GDP (million TL) 2014 14.200 2014 1.749.782 2013 15.000 2013 1.561.510 2012 15.000 2012 1.416.817 2011 8.900 2011 1.294.893 Ratio in GDP 1,06% 0,96% 0,81% 0,69% 2011 2012 2013 2014 Source : General Direct

  17. 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 1 payment details of all banks and follow ~25% OF THE VALUE OF THE TRACTOR IS PAID the interest rates, IN CASH OR TRADE-IN DEAL IS PREPARED hel

  18. Slide 18: Agenda: Tractor Market

    17 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  19. Slide 19: Turkey in Worldwide Tractor Market

    18 TURKEY in WORLDWIDE TRACTOR MARKET 1.600 Turkey 1.400 Other Countries 1.200 Pakistan 1.000 India 800 China 600 Latin America 400 Europe 200 North America 0 2009 2010 2011 2012 2013 2014 2014/2 2015/2 WORL D T RACT OR MARKET Units in Thousand 2009 2010 2011 2012 2013 2014 2 0 1 4 /2 2 0 1 5 /2 Nor

  20. 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

  21. Slide 21: Tractor Market in Turkey

    20 TRACTOR MARKET in TURKEY 70.000 60.341 59.459 60.000 52.286 50.318 50.000 42.033 39.571 40.000 36.036 33.989 34.525 34.541 unit 30.000 27.022 25.030 20.155 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 2014/5 2014 2015/5 Source :

  22. Slide 22: Tractor Market in Turkey

    21 TRACTOR MARKET in TURKEY 35.000 60% 52,0% 51,5% 50,3% 50,4% 49,7% 49,6% 30.000 49,9% 49,4% 48,4% 50% 46,0% 25.000 37,7% 40% 33,6% 20.000 30,6% 29,9% 28,5% Unit 28,3% 27,0% 30% 25,8% 24,9% 25,3% 15.000 22,7% 22,3% 21,0% 25,1% 23,5% 20% 22,2% 16,5% 21,1% 10.000 20,5% 16,3% 10% 5.000 13.497 13.011 1

  23. Slide 23: Tractor Market in Turkey

    22 TRACTOR MARKET in TURKEY Tractor Sales @ 2014/5 Tractor Sales @ 2015/5 Import Import Products NH + CIH Products NH + CIH 4.122 10.014 6.339 12.411 Other Local Other Local Manufacturers Manufacturers 6.019 6.280 Market Share @ 2014/5 Market Share @ 2015/5 Market Share @ Last 12 Months NH + CIH NH

  24. Slide 24: Market & TürkTraktör

    23 MARKET & TÜRKTRAKTÖR For the last 8 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

  25. Slide 25: Agenda: Competitive Advantages

    24 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  26. Slide 26: Competitive Advantages: Strong Shareholder

    25 COMPETITIVE ADVANTAGES Koç Holding CNHI A.Ş. 61 37,50% 37,50% Public Other Quotation 0,05% 24,95% 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

  27. Slide 27: Competitive Advantages: Manufacturing

    26 COMPETITIVE ADVANTAGES  Being the first in Turkey  R&D center accredited by  Export to over 130 concerning flexible the Ministry of Industry on countries all over the manufacturing lines that 03 September 2009 world via global network enables co-use of  Worldwide main of CNHI, such as, US, au

  28. 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

  29. Slide 29: Agenda: Products

    28 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  30. Slide 30: Manufactured Products (Tractor)

    29 MANUFACTURED PRODUCTS (TRACTOR) Series T480S T480 2WD T480 4WD 48 HP 48 HP TT 50 55 65 75 * Only for export market 50 HP 55 HP 65 HP 72HP 56s 55 65 75 New Product 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 TDD Delta 75 90 100 110

  31. Slide 31: Imported Products (Tractor)

    30 IMPORTED PRODUCTS (TRACTOR) Series TCF TC25F TC30F TC70F 22 HP 25 HP 66 HP T4 T4.75 F-N-V T4.85 F T4.95 F 78 HP 88 HP 97 HP T5000 T5050 T5060 T5070 New Product 96 HP 106 HP 113 HP T5.105 T5.115 T5 EC 107 HP 114 HP T6020 T6050 T6060 T6070 T6080 T6090 T6000 112 HP 127 HP 132 HP 141 HP 155 HP 165 HP

  32. Slide 32: Products (Tractor)

    31 PRODUCTS (TRACTOR) Series JXC 55 65 75 Manufactured 55 HP 65 HP 75 HP Utility Light* 55 65 75 *For both local and export markets Manufactured 55 HP 65 HP 75 HP ** Only for export market Utility Medium** 85 95 105 115 Manufactured 85 HP 95 HP 105 HP 115 HP JX 70 75 80 90 100 110 Manufactured 65 HP

  33. Slide 33: Agricultural Equipment

    32 AGRICULTURAL EQUIPMENT COMBINES COTTON PICKERS SQUARE BALERS SELF PROPELLED SPRAYERS SELF PROPELLED FORAGE HARVESTERS PNEUMATIC PLANTERS ROUND BALERS SPRAYERS PNEUMATIC PLANTERS SOIL TILLAGE EQUIPMENTS

  34. Slide 34: Construction Equipment

    33 CONSTRUCTION EQUIPMENT SKID STEER LOADERS BACKHOE LOADERS COMPACT WHEEL LOADERS WHEEL LOADERS MINI EXCAVATORS CRAWLER EXCAVATORS TELEHANDLERS

  35. Slide 35: Agenda: Operational Results

    34 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results

  36. Slide 36: Operational Results: Tractor Sales Units

    35 OPERATIONAL RESULTS Tractor Sales Units 15. 866 14. 402 30. 027 24. 624 3. 681 3. 387 3. 313 5. 354 6. 710 7. 866 2013/3 2014/3 2015/3 2013/FY 2014/FY Local Sales Export Sales NH Local 2015/3 Local Sales (units) 2015/3 Export Sales (units) 7.040 Case IH Export 89% 488 13% Case IH Local 721 9% Cas

  37. Slide 37: Operational Results: Manufacturing Units

    36 OPERATIONAL RESULTS MANUFACTURING UNITS TRANSMISSION EXPORT UNITS 3.813 2015/3 2014/3 12. 030 10. 915 2.596 92% 2013/3 91% 8. 897 88% 2013/3 1. 168 12% 2014/3 1.236 1. 081 1.005 886 9% 2015/3 1. 009 8% 2013/3 2014/3 2015/3 2013 2014 Tractor Transmission

  38. Slide 38: Market Leader in Agricultural Equipment Sector

    37 OPERATIONAL RESULTS MARKET LEADER IN AGRICULTURAL EQUIPMENT SECTOR Combine Sales Units 2015/3 92 2014/3 31 2013/3 321

  39. Slide 39: Financial & Operational Performance

    38 FINANCIAL & OPERATIONAL PERFORMANCE million EUR 2013/3 2014/3 2015/3 2013/FY 2014/FY Revenue 215 196 250 861 937 Gross Profit 44 41 42 187 168 Operating Profit 30 27 23 129 102 Profit Before Tax 31 26 20 127 101 Net Profit 26 23 16 111 90 EBITDA 33 30 28 138 114 Revenue @ 2014/3 (million Eur) Rev

  40. Slide 40: Financial & Operational Performance: Profitability Ratios

    39 FINANCIAL & OPERATIONAL PERFORMANCE Profitability Ratios 21,7% 20, 5% 20, 9% 18, 0% 16, 9% 16,1% 15,1% 15, 2% 14, 9% 14, 0% 13, 9% 12, 9% 11, 9% 11, 7% 12, 1% 11, 0% 10, 9% 9,4% 9,6% 6, 4% 2013/3 2014/3 2015/3 2013/F Y 2014/F Y Gross Margin Operating Margin EBIT DA Margin Net M argin R e turn o n

  41. Slide 41: Financial & Operational Performance

    40 FINANCIAL & OPERATIONAL PERFORMANCE million EUR 2013/3 2014/3 2015/3 2013/FY 2014/FY Total Assets 549 556 707 509 679 Current Assets 452 409 492 370 468 Non-Current Assets 96 147 215 139 211 Total Liabilities 549 556 707 509 679 Short Term Liabilities 244 215 290 131 262 Long Term Liabilities 82

  42. Slide 42: Liquidity Ratios

    41 FINANCIAL & OPERATIONAL PERFORMANCE Liquidity Ratios 2, 8 1, 9 1, 9 1, 7 1, 8 1, 7 1, 3 1, 2 1, 2 1, 1 2013/3 2014/3 2015/3 2013/FY 2014/FY Current Ratio Quick Ratio

  43. Slide 43: Net Working Capital and CAPEX

    42 FINANCIAL & OPERATIONAL PERFORMANCE Net Working Capital 200 mln € 172 164 160 159 2013/3 2014/3 2015/3 2013/F Y 2014/F Y CAPEX 83, 04 63, 53 mln € 6, 84 10, 67 3, 76 2013/3 2014/3 2015/3 2013/F Y 2014/F Y

  44. Slide 44: Dividend

    43 DIVIDEND 350 120% 107% 100% 101% 300 94% 100% 83% 250 77% 75% 80% 72% 200 60% 300 150 40% 200 200 40% 100 26% 200 150 107 94 20% 50 94 10% 10% 8% 7% 15% 2% 5% 13% 14% 10% 17 12 0 0% 2006* 2007* 2008* 2009* 2010* 2011* 2012* 2013* 2014* 2015** Dividend (mln TL) Dividend / Net Profit Dividend Yield

  45. Slide 45: Borsa Istanbul & TTRAK Index

    31.12.2013 31.01.2014 44 28.02.2014 31.03.2014 BIST-100 30.04.2014 31.05.2014 BIST 100 TTRAK 30.06.2014 31.07.2014 31.08.2014 31.12.2013 =100 30.09.2014 31.10.2014 TTF Values 30.11.2014 BORSA ISTANBUL & TTRAK INDEX 31.12.2014 31.01.2015 28.02.2015 31.03.2015 %19 % 26 %264

  46. Slide 46: Contact

    45 CONTACT Marco VOTTA Ahmet CANBEYLI Ilkiz KARAGULLU CEO CFO Investor Relations Manager +90 312 2332001 +90 312 2332003 +90 312 2332502 marcov@turktraktor.com.tr ahmet.canbeyli@turktraktor.com.tr ilkizk@turktraktor.com.tr

  47. Slide 47: Disclaimer

    46 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

  48. Slide 48: Slide 48

Türk Traktör ve Ziraat Makineleri A.Ş. — Q1 2015 Earnings Presentation on 6ix