Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Investor Presentation (February 2019)
27 slides from Turk Traktor Ve Ziraat Makineleri A.s's investor presentation, Feb 6, 2019
Slide 1: Investor Presentation February 2019
Investor Presentation February 2019 Date of Last Update: 06.02.2019
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
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 • Sustainable d
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 1,008 595 2013 2014 2015 2016 2017 2018 2019/1 2013 2014 2015 2016 2017 2018 2019/1 Total Revenue (mio TL) Gross Profit (mio TL) 1,974 2,1
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% 5.24 4.89 4.81 6.93 6.01 3.11 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018/9 Dividend / Net Profit Dividend Yield (%) Foreign Ownership in Free Float (%) 75.91% Commitment to Co
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 ~38%* 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
Slide 9: Network Summary
Network Summary Network at a Glance 104 NH Tractor Dealer 43 NH / 1 CASE CE* Dealer Our Strengths in Network 32 CASE Tractor Dealer Broadest network in Turkey’s agricultural sector Widely distributed and close to customer +500 services** Financially strong (NH and CASE IH) Wide customer portfolio +1
Slide 10: 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 11: Turkey - Agriculture Sector
Turkey - Agriculture Sector (source : tarim.gov.tr & TURKSTAT) 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 t
Slide 12: Turkey - Agriculture Sector
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 JAN 2017 Subsidy level 50% Subsidy level 25% for the remaining up to 50,000 TL (same as 2016) amount of the bank loan of bank loan above 50,000 TL (same as 2016) • In case the tractor at 10 and +10 years (being owned for 5 years i
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: Highlights of Tractor Market
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 17: Global Tractor Market
Global Tractor Market (thousand units) (source: Systematics) North America South America Europe Turkey is the 5th 233 246 227 241 66 60 60 59 145 163 134 128 60 biggest market in 2016 2017 2017/11 2018/11 2016 2017 2017/11 2018/11 2016 2017 2017/11 2018/11 the world in terms of annually sold tractor
Slide 18: 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 56,407 50% 53,982 49% 49% 48% 48% 47,689 47% 48,302 43% 45,823 47,536 46,031 38,530 39,574 2012 2013 2014 2015 2016 2017 2018 34,114 20,884 23,730 18,519 19,
Slide 19: Turkish Tractor Market
Turkish Tractor Market Turkish Tractor Market (units) Tractor Park in Turkey (mio units) Source : TURKSTAT Source : TURKSTAT 50,318 52,286 59,449 66,775 70,205 72,949 48,044 1.52 1.57 1.63 1.69 1.76 1.84 1.88 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 Turkish Tractor Marke
Slide 20: Sales of TürkTraktör
Sales of TürkTraktör Tractor Sales (units) 49,613 46,230 12,023 12,625 36,635 *Domestic tractor sales decreased by 45% in 2018/9 YoY. 9,628 25,458 *In 2018/9 export tractor sales increased by 11% 33,605 37,590 10,322 comparing to 2017/9. 27,367 15,136 2016 2017 2017/9 2018/9 Combine Sales (units) Lo
Slide 21: Income Statement
Income Statement (mio TL) 2016 2017 ∆ 2017/9 2018/9 ∆ - Domestic Sales 2,469 3,086 25% 2,225 1,687 -24% - Export Sales 974 1,129 16% 837 1,314 57% Total Sales Revenue 3,443 4,215 22% 3,062 3,001 -2% Gross Profit 742 731 -2% 527 559 6% Net Operating Income 455 423 -7% 305 326 7% Profit Before Tax 388
Slide 22: Profitability
Profitability (%) 2016 2017 ∆ 2017/9 2018/9 ∆ Gross Profit Margin 21.6 17.3 -4.3 pp 17.2 18.6 1.4 pp Operating Profit Margin 13.2 10.0 -3.2 pp 10.0 10.9 0.9 pp Net Profit Margin 10.7 7.6 -3.1 pp 7.1 5.5 -1.6 pp EBITDA Margin 14.9 11.7 -3.2 pp 11.6 12.9 1.3 pp Gross Operating Net EBITDA Gross Operati
Slide 23: Gross Profit to EBITDA Flow
Gross Profit to EBITDA Flow (mio TL) as of 30.09.2018 233 374 310 559 153 7 62 388 326 173 166 Gross Opex Operating Other & Profit Taxation Net Income Depreciation EBITDA Profit Income Financial Before Expenses Tax 23
Slide 24: Debt Profile & Financial Ratios
Debt Profile & Financial Ratios (mio TL) 2016 2017 ∆ 2017/9 2018/9 ∆ - Cash & Cash Equivalents 228 442 93% 501 327 -35% - Total Financial Debt 948 1,127 19% 1,247 1,878 51% Net Financial Position (720) (685) -5% (746) (1,551) 108% Current Ratio 2.0 1.8 -0.2 pp 1.9 2.4 0,5 pp Quick Ratio 1.3 1.3 -0.0
Slide 25: Working Capital
Working Capital (mio TL) 1,195 654 713 648 594 813 651 769 1.122 556 566 535 -494 -521 -656 -725 2016 2017 2017/9 2018/9 Trade Payables (net) Inventories Trade Receivables (net) 25
Slide 26: Dividend Payments
Dividend Payments Total TL 2.4 billion was distributed as dividend to the shareholders between 2004 – 2018. Dividend (mio TL) 50 140% Dividend / Net Profit Dividend Yield (%) 300 300 300 300 00 120% 117% 107% 250 100% 101% 115% 50 94% 94% 100% 87% 200 200 83% 00 80% 150 75% 72% 50 68% 60% 107 54% 94
Slide 27: Investor Relations Contact
Investor Relations Contact Ahmet CANBEYLİ Ahmet DİNÇ CFO Investor Relations Team Leader +90 312 2332003 +90 312 2332502 Ahmet.Canbeyli@turktraktor.com.tr Ahmet.Dinc@turktraktor.com.tr investorrelations@turktraktor.com.tr
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