Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — H1 2017 Earnings Presentation
29 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Jul 31, 2017
Slide 1: Analyst Meeting
1 Analyst Meeting July 31st, 2017
Slide 2: TürkTraktör at a Glance
TürkTraktör at a Glance 2 Established in Market leader for Being the 1954 10 years first being the biggest tractor R&D center of Turkey manufacturer of Turkey in its sector Annual production capacity of 50.000 Export to more than The widest product range and * in 2 shifts tractors* 130 countries dea
Slide 3: Wide Product Range - Local Market Tractors
Wide Product Range 3 Tractor Series Sold to Local Market 120-140 HP TR6 110 HP TR5 105 HP 97 HP 95 HP TD DELTA 88 HP TDD JX 80 HP 78 HP TD4B* JXB 75 HP 72 HP TDS 56S JXC*** 65 HP TT4** TT TTJ* 55 HP TTB* New 50 HP 48 HP 22 HP T 480S LOCAL 3 launch within 2017/1H New Holland *Speciality Case IH **Hea
Slide 4: Wide Product Range - Imported Tractors
Wide Product Range 4 Imported Tractor Series Sold to Local Market Puma / T7000 & Magnum T7 T7 HD T8 AC** Optum CVX > 140 HP Puma CVX AC** CVX Maxxum / Maxxum T6000 120-140 HP T6 AC** Maxxum Standard Farmall U / CVX 110 HP T5 Hi-Lo / Farmall U T5 EC* 105 HP Pro 97 HP Farmall C 95 HP 88 HP Quantum N T
Slide 5: Wide Product Range - Export Market Tractors
Wide Product Range 5 Tractor Series Sold to Export Market 115 HP 110 HP 105 HP Utility Utility 98 HP Medium Medium 95 HP TDD (HC*) JX (HC*) 88 HP TDF** (Narrow TDD JX 85 HP Orchard) 80 HP Straddle Straddle 78 HP 75 HP 72 HP Utility Utility 65 HP Utility T3F Light Light New (Compact 1 launch Light 55
Slide 6: Strategic Focus Area in 2017
Strategic Focus Area in 2017 6 Digital Transformation • Our company, employers, customers and shareholders are more in accord with the new age by integrating the digital into all of our processes from production to customer relations. • We are currently running almost 40 different projects for digit
Slide 7: Export Penetration
Export Penetration 7 WHERE AREN’T WE, YET… Tajikistan Nepal Guinea Bangladesh Niger Continuously Since 1979, Burkina increasing export over Faso Benin penetration, 146 Turkey’s biggest thousand and the most of tractors diversified tractor exported exporter
Slide 8: Highlights of 1H2017
Highlights of 1H2017 8 o Bonds that each worth 75 million TL Local Sales (units) Total Sales (units) issued; first with 3-year term on 07.04.2017, and then with 2-year term on 24.819 24.908 26.04.2017. 17.917 18.859 o TürkTraktör ranked as 25th in the “Turkey’s Top 500 Industrial Enterprises” list a
Slide 9: Breakdown of Tractor Sales
Breakdown of Tractor Sales 9 Imported Total Sales Tractors in 1H2017 (78 HP – 380 HP) 24.908 Locally 2% Manufactured tractors Tractors (48 HP – 140 HP) 98% Locally Manufactured Tractors Tractors sold to Export Market Tractors sold to (48 HP – 115 HP) Local Market (48 HP – 140 HP) 25% 75%
Slide 10: Global Tractor Sales Volume
Global Tractor Sales Volume (source : Systematics, thousand units) 10 Pakistan 63% North America Europe China 7% -1% -16% India TURKEY 14% 3% In thousand 2015 2016 2016/5 2017/5 2017/5 vs units Units % Units % Units % Units % 2016/5 India 484 35% 565 40% 201 34% 230 37% 14% China 298 22% 259 18% 148
Slide 11: Local Production & Export
Local Production & Export (source : TARMAKBİR) 11 Local Production in 1H2017 (units) Exportation in 1H2017 (units) Other Other TürkTraktör Manufacturers TürkTraktör Exporters 6.049 11.408 22.768 915 87% 33% 67% 13% TürkTraktör covers 67% of the total TürkTraktör alone covers 87% of total production
Slide 12: Market Share Evaluation
Market Share Evaluation (source : TURKSTAT) 12 Continuing to strengthen core business Being the market leader for 18 years of the last 30 years Maintaining this leadership for 10 years in a row New Holland Case IH 52,0% 51,5% 50,3% 50,4% 52,2% 49,9% 48,4% 49,4% 48,1% 46,5% 46,9% 38,1% 46,6% 47,8
Slide 13: Market Developments in 1H2017
Market Developments in 1H2017 13 IMPORTATION LEGISLATION: After 01.01.2018, locally produced tractors will be OCTOBER sold as per Turkish emission standards while imported ones will have to be 2016 compliant with EU emission level. ZİRAAT BANK: For the loans up to 50.000 TL, the rate of subsidy leve
Slide 14: Stable Government Support to Agriculture
14 Stable Government Support to Agriculture (source : www.tarim.gov.tr) It has been announced that the government has allocated 12,8 billion TL budget for agriculture in 2017. 10% 11,6 12,8 10,0 3,0 3,2 3,2 2,7 3,3 3,3 3,0 3,0 3,8 1,3 2,1 2,5 Area Based Deficiency Livestock Support Other Agricultura
Slide 15: Tractor Market in Turkey
Tractor Market in Turkey (units) (source : TURKSTAT) 15 2016/5 – Total 28.685 units tractor 2017/5 – Total 29.569 units tractor TürkTraktör TürkTraktör Biggest Competitor Biggest Competitor 15.442 13.447 2.650 3.436 9% 52% 11% 47% Other Other Manufacturers Manufacturers 4.336 4.027 15% 14% Importers
Slide 16: New Registration of Tractors
New Registration of Tractors (units – source : TURKSTAT) 16 66.775 70.205 4Q 4Q 22.065 21.511 3Q 13.912 3Q 14.486 59.449 2Q 18.664 2Q 18.209 28.685 29.569 1Q 12.569 1Q 15.564 2014 2015 2016 2016/5 2017/5
Slide 17: Operational Performance – Production
Operational Performance – Production (units) 17 Tractor -3% 47.536 46.031 -16% 27.170 22.768 2015 2016 2016/6 2017/6 Engine -2% 37.944 37.038 -20% 22.106 17.638 2015 2016 2016/6 2017/6
Slide 18: Operational Performance – Sales
Operational Performance – Sales (units) 18 Tractor Export Sales 47.124 46.230 Local Sales 0,4% 24.819 24.908 -12% 5% Combine 0,3% -9%
Slide 19: Total Sales Revenue
Total Sales Revenue (mio TL) 19 13% 2.052 1.823 5% 1.091 16% 886 938 940 961 680 Local Export
Slide 20: Profitability
Profitability (mio TL) 20 -7%
Slide 21: Profitability
Profitability (mio TL) 21 -12%
Slide 22: Profitability
Profitability (mio TL) 22 -24%
Slide 23: Profitability
Profitability (mio TL) 23 -36%
Slide 24: Working Capital
Working Capital (mio TL) 24 716 620 652 441 *The figures are 12 months average.
Slide 25: Net Financial Position
Net Financial Position (mio TL) 25 - 784 - 429 - 720 - 758 31% 20% 20% 44% 69% 80% 56% 80%
Slide 26: Net Financial Position / EBITDA
Net Financial Position / EBITDA 26 *The figures are cumulative 12 months sum.
Slide 27: High Profitability Ratios
High Profitability Ratios 27 RoA* RoE* *The figures are 12 months average.
Slide 28: Dividend
Dividend (mio TL) 28 Since listed in the stock exchange market, TürkTraktör paid the total amount of 2.1 billion TL dividend.
Slide 29: Analyst Meeting
29 Analyst Meeting July 31st, 2017
Türk Traktör ve Ziraat Makineleri A.Ş. — H1 2017 Earnings Presentation on 6ix