Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Q2 2019 Earnings Presentation
28 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Oct 18, 2019
Slide 1: Investor Presentation October 2019
Investor Presentation October 2019 Date of Last Update: 18.10.2019
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: Where Aren't We Yet
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 • Vertically in
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 15,695 6,809 2013 2014 2015 2016 2017 2018 2019/9 2013 2014 2015 2016 2017 2018 2019/9 Total Revenue (mio TL) Gross Profit (mio TL) 2,175
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% 4.89 4.81 6.93 4.50 6.01 0.40 2013 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2019/6 Dividend / Net Profit Dividend Yield (%) Foreign Ownership in Free Float (%) Commitment to Corporate
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 ~6%* market share *Full territory coverage *Continuously expand in local market since 2007 *Wide customer portfolio *Utilizing New Holl
Slide 9: Network
Network Network at a Glance KIRKLARELİ BARTIN İSTANBUL SİNOP EDİRNE KASTAMONU TEKİRDAĞ ZONGULDAK ARTVİN ARDAHAN KARABÜK SAMSUN KOCAELİ RİZE DÜZCE TRABZON YALOVA ORDU SAKARYA AMASYA GİRESUN KARS BOLU ÇANKIRI ÇORUM TOKAT ÇANAKKALE BURSA BİLECİK GÜMÜŞHANE BAYBURT IĞDIR KIRIKKALE ERZURUM AĞRI BALIKESİR
Slide 10: Turkey - Agriculture Sector
Turkey - Agriculture Sector *High agricultural population *Low productivity *Stabilized government support to the sector *Higher inputs costs *Giving rise to professional farming *One of the lowest mechanization levels in Europe Turkey - Agricultural Equipment Sector Transformation of agriculture Al
Slide 11: Turkey - Agriculture Sector (source: World Bank & TURKSTAT)
Turkey - Agriculture Sector (source : World Bank & TURKSTAT) Turkey’s Agriculture Sector with Numbers Turkey’s agricultural economy in the world (2018 numbers) Turkey’s agricultural economy in Europe (2018 numbers) share of the agricultural industry over the GDP (2019 1H numbers) share in the total
Slide 12: Turkey - Agriculture Sector (source: tarim.gov.tr)
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 FEB Subsidy level 25% for the remaining Subsidy level 50% up to 75,000 TL 2018 (50,000 TL updated to 75,000 TL) amount of the bank loan above 75,000 TL of bank loan (50,000 TL updated to 75,000 TL) (interest rate remains same) (in
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 unit) (Source: Systematics) North America South America** Europe Turkey is the 4th* 246 262 181 186 163 147 93 101 biggest market in 66 65 43 37 2017 2018 2018/8 2019/8 2017 2018 2018/8 2019/8 2017 2018 2018/8 2019/8 the Europe in terms of annually sold tractor units.
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 48% 49% 49% 56,407 48% 47% 48,302 47,689 45% 43% 45,823 47,536 46,031 38,530 2013 2014 2015 2016 2017 2018 2019/8 34,114 20,658 17,877 18,519 19,079 20,884 2
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 1.90 52,286 59,449 70,205 14,015 2013 2014 2015 2016 2017 2018 2019/8 2013 2014 2015 2016 2017 2018 2019/8 Turkish Tractor M
Slide 21: Sales of TürkTraktör
Sales of TürkTraktör Tractor Sales (units) 49,613 12,023 32,157 *Domestic tractor sales decreased by 67% in 2019/6 YoY. 14,502 *In 2019/6 export tractor sales increased by 20% 37,590 19,421 comparing to 2018/6. 6,298 11,912 17,655 7,562 13,123 4,350 2017 2018 2018/6 2019/6 Combine Sales (units) Loca
Slide 22: Income Statement
Income Statement (mio TL) 2017 2018 ∆ 2018/6 2019/6 ∆ - Domestic Sales 3,086 2,016 -35% 1,389 672 -52% - Export Sales 1,129 1,893 68% 736 1,068 45% Total Sales Revenue 4,215 3,909 -7% 2,125 1,740 -18% Gross Profit 731 717 -2% 374 223 -40% Net Operating Income 423 411 -3% 206 79 -62% Profit Before Ta
Slide 23: Profitability
Profitability (%) 2017 2018 ∆ 2018/6 2019/6 ∆ Gross Profit Margin 17.3 18.3 1.0 pp 17.6 12.8 -4.8 pp Operating Profit Margin 10.0 10.5 0.5 pp 9.7 4.6 -5.1 pp Net Profit Margin 7.6 6.1 -1.5 pp 6.4 1.2 -5.2 pp EBITDA Margin 11.7 12.7 1.0 pp 11.6 8.2 -3.4 pp Gross Operating EBITDA Gross Net Net EBITDA
Slide 24: Gross Profit to EBITDA Flow (mio TL)
Gross Profit to EBITDA Flow (mio TL) as of 30.06.2019 144 223 155 64 143 32 60 21 79 19 -2 21 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) 2017 2018 ∆ 2018/6 2019/6 ∆ - Cash & Cash Equivalents 442 413 -7% 155 828 435% - Total Financial Debt 1,127 1,773 57% 1,555 1,983 28% Net Financial Position -685 -1,360 98% -1,400 -1,155 -18% Current Ratio 1.8 2.0 0.2 pp 1.9 1.3 -0.6 pp Quick Ratio 1.3 1.0 -0
Slide 26: Working Capital (mio TL)
Working Capital (mio TL) 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2000 1,106 1,194 1,077 820 842 %28,8 1,021 %28,4 1500 820 955 1.122 %25,0 920 1000 1.085 823 %20,6 500 832 %16,9 %15,1 832 593 637 538 449 0 -521 -513 -480 -541 -810 -681 -500 -1000 Trade Receivables (net)** Inventories %5,0 Tr
Slide 27: Expectations
Expectations Our expectations for the year 2019 are as follows.* Turkish Tractor Industry Volume 24,000 – 29,000 units TürkTraktör Local Tractor Sales** 11,500 – 14,000 units Tractor Exports 14,250 – 15,250 units CAPEX 150 – 200 million TL ** Sales to the dealers included imported tractors *In the f
Slide 28: Investor Relations Contact
Investor Relations Contact Ahmet CANBEYLİ Ahmet DİNÇ Sıla AKÇAY CFO Investor Relations Team Leader Investor Relations Senior Spe. +90 312 2332003 +90 312 2332502 +90 312 2332504 Ahmet.Canbeyli@turktraktor.com.tr Ahmet.Dinc@turktraktor.com.tr Sila.Akcay@turktraktor.com.tr investorrelations@turktrakto
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