Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Q3 2016 Earnings Presentation
25 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, September 2016
Slide 1: Investor Presentation September 2016
Investor Presentation September 2016
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 CNHI Turkey’s biggest and the most diversified tractor The only design and main production center of New exporter. Holland TDD and Case IH JX series tractors in the world The only production center of Utilit
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: Sustainable Growth
Sustainable Growth Tractor Manufacturing Units Local Tractor Sales Units 28.348 40.630 39.574 38.530 45.823 47.536 46.031 19.388 30.268 25.058 24.091 29.550 32.535 33.053 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 Total Revenue (mio TL) Gross Profit (mio TL) 1.193 1.801 1.
Slide 6: Growth of Shareholder Value
Growth of Shareholder Value Stock Performance (31.12.2013=100) Earnings per Share 5,24 4,89 4,81 5,03 5,17 31.12.2013 2014 2015 2016/9 2012 2013 2014 2015 2016/9 BIST - 100 TTRAK Foreign Ownership in Free Float (%) 81,18% 78,13% Commitment to Corporate Governance *Separate CEO and Chairman roles *In
Slide 7: Brands & Products
Brands & Products Tractors (48HP-380HP) Construction Equipment Compact Line Agricultural Equipment Tractors (55HP-380HP) Construction Equipment Compact Line Agricultural Equipment Heavy Line Tractors Agricultural Equipment 7
Slide 8: Market Positioning of the Brands
Market Positioning of the Brands *Market leader for 9 years in a row *Targeting professional *Having ~45% 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 & w
Slide 9: 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 10: Turkey - Agriculture Sector (source : tarim.gov.tr)
Turkey - Agriculture Sector (source : tarim.gov.tr) Turkey’s Agriculture Sector with Numbers Targets of Turkish Agriculture Sector Turkey’s agricultural economy in the world for 2023 2023 Turkey’s agricultural economy in Europe agricultural income share of the agricultural industry over the GDP agri
Slide 11: Turkey - Agriculture Sector (source : tarim.gov.tr)
Turkey - Agriculture Sector (source : tarim.gov.tr) Government Support in Turkey (billion TL) 12.8 11.6 10.0 9.1 2014 2015 2016 2017 budget figures (not approved yet) Resources allocated to agriculture for 2016, including agricultural loan interest support given by Ziraat Bank, has been announced as
Slide 12: Turkey - Agriculture Sector (source : tarim.gov.tr)
Turkey - Agriculture Sector (source : tarim.gov.tr) According to the National Agriculture Project announced on October, 2016; Agricultural supports will be collectively million hectare of land in total is planning to be paid to farmers twice a year. payment on April-May consolidated until in the see
Slide 13: Turkey vs. EU - Agriculture Sector
Turkey vs. EU - Agriculture Sector (source : tarim.gov.tr & EUROSTAT) EUROPEAN UNION Arable land Meadows Permanent crop 178 million ha total agricultural land 11 million agricultural holdings – average land size 16 ha per farm TURKEY Arable land Meadows Permanent crop 39 million ha total agricultura
Slide 14: Highlights of Tractor Market (source : TARMAKBİR)
Highlights of Tractor Market (source : TARMAKBİR) Average working time of Mechanical life Mechanical life Ratio of the a tractor of a tractor of a tractor tractors >24 (hours/year) (hours) (year) years Tractor unit per Equipment unit Agricultural land per Tractor HP per 1000 hectare per tractor trac
Slide 15: Global Tractor Market (thousand units)
Global Tractor Market (thousand units) (source: Systematics) North America South America Europe Turkey is the 4th 236 229 177 178 80 63 159 152 110 111 50 43 biggest market in the world in terms 2014 2015 2015/9 2016/9 2014 2015 2015/9 2016/9 2014 2015 2015/9 2016/9 of annually sold tractor units Au
Slide 16: Turkish Tractor Market
Turkish Tractor Market Tractor Production (units) Market Share of TürkTraktör Source : Tarmakbir Source : TURKSTAT 66.775 60.341 59.449 61.923 52.286 52% 50.318 50% 50% 48% 49% 48% 46% 39.134 40.630 45.823 47.536 42.830 38.530 39.574 2010 2011 2012 2013 2014 2015 2016/11 28.348 21.620 17.877 18.519
Slide 17: Growth of Turkish Tractor Market
Growth of Turkish Tractor Market Turkish Tractor Market (units) Tractor Park in Turkey (mio units) Source : TURKSTAT Source : TURKSTAT 36.036 60.341 50.318 52.286 59.449 66.775 62.602 1,40 1,46 1,52 1,57 1,63 1,69 1,76 2010 2011 2012 2013 2014 2015 2016/11 2010 2011 2012 2013 2014 2015 2016/11 Turki
Slide 18: Sales of TürkTraktör
Sales of TürkTraktör Tractor Sales (units) 45.893 47.124 14.122 36.017 *Domestic tractor sales decreased by 4% in 9 months of 15.866 34.018 2016. 10.378 9.460 *Export tractor sales decreased by 9% comparing to the same period of 2015. 30.027 33.002 25.639 24.558 2014 2015 2015/9 2016/9 Combine Sales
Slide 19: Income Statement
Income Statement (mio TL) 2014 2015 ∆ 2015/9 2016/9 ∆ - Domestic Sales 1.790 2.164 21% 1.662 1.793 8% - Export Sales 934 938 1% 681 710 4% Total Sales Revenue 2.723 3.103 14% 2.343 2.504 7% Gross Profit 489 605 24% 440 529 20% Net Operating Income 297 364 23% 275 333 21% Profit Before Tax 293 302 3%
Slide 20: Profitability
Profitability (%) 2014 2015 ∆ 2015/9 2016/9 ∆ Gross Profit Margin 18,0 19,5 1,5 pp 18,8 21,1 2,3 pp Operating Profit Margin 10,9 11,7 0,8 pp 11,7 13,3 1,6 pp Net Profit Margin 9,6 8,3 -1,3 pp 7,6 11,0 3,4 pp EBITDA Margin 12,1 13,4 1,3 pp 13,2 14,9 1,7 pp Gross Operating Net EBITDA Gross Operating N
Slide 21: Gross Profit to EBITDA Flow (mio TL)
Gross Profit to EBITDA Flow (mio TL) as of 30.09.2016 416 374 310 196 6 41 51 374 529 333 276 282 Gross Opex Operating Other & Profit Taxation Net Income Depreciation EBITDA Profit Income Financial Before Expenses Tax 21
Slide 22: Debt Profile & Financial Ratios
Debt Profile & Financial Ratios (mio TL) 2014 2015 ∆ 2015/9 2016/9 ∆ - Cash & Cash Equivalents 269 244 -9% 248 112 -55% - Total Financial Debt 658 673 2% 803 957 19% Net Financial Position (389) (429) 10% (556) (844) 52% Current Ratio 1,8 1,6 -0,2 pp 1,7 2,1 0,4 pp Quick Ratio 1,2 1,0 -0,2 pp 1,1 1,
Slide 23: Working Capital (mio TL)
Working Capital (mio TL) 600 777 448 441 646 557 476 461 436 518 492 586 -449 -367 -552 -538 2014 2015 2015/9 2016/9 Trade Payables (net) Inventories Trade Receivables (net) 23
Slide 24: Dividend Payments
Dividend Payments According to the JV agreement, the Parties adopted for the Company a “Dividend Policy” that provides, as a matter of principle, for the distribution of dividend to the shareholders in the rate of 60% of the after tax profit. 50 140% 300 300 300 Total 00 120% TL 1.9 billion 100% 101
Slide 25: Investor Relations Contact
Investor Relations 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 investorrelations@turktraktor.com.tr
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