Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — TürkTraktör — Q3 2015 Earnings Presentation
43 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, September 2015
Slide 1: TürkTraktör Investor Presentation September 2015
TÜRKTRAKTÖR INVESTOR PRESENTATION SEPTEMBER 2015 1
Slide 2: TürkTraktör at a glance
TÜRKTRAKTÖR Established in 1954 The oldest continuously manufacturer company of Turkish automotive industry The biggest tractor manufacturer in Turkey Export to more than 130 countries The first R&D center of Turkey in its sector Uninterruptedly market leader for 8 years The widest product range and
Slide 3: Agenda
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 3
Slide 4: Company Profile: Shareholder Structure
COMPANY PROFILE Shareholder Structure Koç Holding A.Ş. 37,5 one of the strongest holdings of 37,5 CNH Turkey possessing a leading role in Koç Holding % Industrial NV different sectors, such as energy, A.Ş. % % automotive, durable consumer goods and finance CNH Industrial NV global leader in the
Slide 5: Company Profile: Quality Certificates
COMPANY PROFILE Quality Certificates ISO 10002 ISO 50001 Energy Customer Satisfaction TS ISO/IEC 27001 Information Security Management System & and Customer ISO 14064 Greenhouse Complaint Management System Certificate Gas Emissions Management Reduction Standard Certificate BS OHSAS 18001 Occupationa
Slide 6: Locations
LOCATIONS Annual Production Capacity 50.000 units of tractors (in 2 shifts) Erenler Plant Ankara Plant Akyurt Warehouse İzmir CE Facility Ostim CE Facility 6
Slide 7: Products: Manufactured and Imported Tractors (TT/TD)
PRODUCTS Manufactured Tractors 48 T480S 50 – 65 TTB * Only for export market 50 – 72 TT New / upgraded product 50 - 72 TTJ 55 – 75 56S 55 - 75 Utility Light* HP 65 – 80 TDS 65 – 88 TD4B 65 – 110 TDD 75 – 110 TD Delta 85 – 115 Utility Medium* 112 – 132 TR6 Imported Tractors 78 – 97 T4 T5 EC – 107 – 1
Slide 8: Products: Manufactured and Imported Tractors (JXC)
PRODUCTS Manufactured Tractors 55 – 75 JXC New / upgraded product 55 – 75 Utility Light* *For both local and export markets ** Only for export market HP 65 – 88 JXB 65 – 110 JX 85 – 115 Utility Medium** Imported Tractors Farmall 107 – 114 U & Pro MAXXUM – 110 – 140 MAXXUM CVX HP 131 – 215 PUMA 185 –
Slide 9: Products (Agricultural Equipment)
PRODUCTS (Agricultural Equipment) Combine Sales (units) COMBINES LARGE SQUARE SMALL SQUARE ROUND BALERS BALERS BALERS 651 SELF PROPELLED 391 FORAGE NEW HOLLAND SPRAYERS 313 293 HARVESTERS CORN HEADERS 2013 2014 2014/9 2015/9 OLIVE – GRAPE PEDROTTİ GRAIN MOWER HARVESTERS DRIERS CONDITIONERS PNEUMATIC
Slide 10: Products (Construction Equipment)
PRODUCTS (Construction Equipment) SKID STEER LOADERS COMPACT LINE TRACTOR LOADER BACKHOE MINI EXCAVATORS TELEHANDLERS CRAWLER EXCAVATORS HEAVY LINE WHEEL LOADERS 10
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES Position within CNHI The only design center and the main production plant for New Holland TD range and Case IH JX series tractors in the world The only manufacturing center of Utility Light series tractors and transmissions The only manufacturing and engineering center of CNHI
Slide 12: Agenda: World Tractor Market
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 12
Slide 13: Global Tractor Market
GLOBAL TRACTOR MARKET (source: systematics; thousand units) North America Europe (2%) (9%) (7%) China 236 229 174 159 (19%) 216 211 143 134 346 282 270 277 2013 2014 2014/11 2015/11 2013 2014 2014/11 2015/11 Turkey India 2013 2014 2014/11 2015/11 (4%) 59 (20%) 59 53 52 612 587 559 450 Others Turkey
Slide 14: Export Penetration
EXPORT PENETRATION Continuously increasing export penetration, Turkey’s biggest and the most diversified tractor exporter 1979 2013 2015/9 Turkey’s first first export 2014 exporting over 120 tractor export to Japan over thousand of tractors 15 thousand cumulatively of tractors exported in a year 124
Slide 15: Agenda: Agriculture Sector in Turkey
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 15
Slide 16: Agriculture Sector in Turkey
AGRICULTURE SECTOR in TURKEY (source: www.tarim.gov.tr) Turkey's total land area 3 million agricultural holdings Total agricultural land 78 the average land size 6 ha per farm 24 8% million ha Permanent million hectare crop 38% meadows 21,1% 7,1% of total employment Average land size 23%59 54% of to
Slide 17: Agriculture in Turkey: Economic size and exports
AGRICULTURE in TURKEY (source: www.tarim.gov.tr) Economic size of Turkish agriculture Turkey exported has risen to 7th 1.663 kind of agricultural rank in the products to world and all over the world 1st in Europe Agricultural Export (billion $) 18,7 17,7 15,2 15,9 12,7 2010 2011 2012 2013 2014 17
Slide 18: Legal Arrangements
LEGAL ARRANGEMENTS (source: www.tarim.gov.tr) For preventing the fragmentation of agricultural land “Indivisible Parcel Size” - It prevents the fragmentation of special product lands and marginal agricultural lands to less than 2 hectares, cultivated agricultural lands to less than 0,5 hectare and
Slide 19: Government Support and Subsidies in Turkey
GOVERNMENT SUPPORT and SUBSIDIES in TURKEY (source: www.tarim.gov.tr) 2013 2014 2015* RESOURCES ALLOCATED TO AGRICULTURE (billion TL) (including Agricultural Loan Interest Support – Ziraat Bank) 15.0 14.2 14.7 Support (billion TL) 2013 2014 2015* Deficiency Payment Support 2.6 2.7 3.1 Livestock Supp
Slide 20: Agriculture Sector in Turkey: Major Exported Products
AGRICULTURE SECTOR in TURKEY (source: www.tarim.gov.tr) located at the most favorable climate zone in geographical terms, having the capacity to support the agricultural industry with increasing population and purchasing power Major Exported Products having the potential to produce a variety o
Slide 21: Crop Production in Turkey
CROP PRODUCTION in TURKEY (source: www.tarim.gov.tr) Production (million tons) Barley Production 27% Wheat Production 18% Potato Production 16% 67 Rice Production 11% 59 Production for selected goods (million tons) 29 30 17 18 2014 2015 Cereals and Other Crops Vegetables Fruits Lentil Production 8%
Slide 22: Agricultural Crop Map of Turkey
AGRICULTURAL CROP MAP of TURKEY (source: www.tarim.gov.tr) Black Sea Marmara Tea Hemp Fruits - Vegetables Nut Rice Sunflower Corn Tobacco Olive Fruits - Vegetables Tobacco Nut Eastern Anatolia Sugar Beet Cereal Legume Apricot Tobacco Sugar Beet Aegean Tobacco Olive Cotton Citrus Southeast Rice Anato
Slide 23: Agenda: Tractor Market in Turkey
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 23
Slide 24: Tractor Park in Turkey
TRACTOR PARK in TURKEY (Source : TURKSTAT) total average age 1.626.938 >25 units of tractors 25-39 years <25 years 544.936 units 879.605 units 33% 54% 40+ years 202.397 units 12% average horse app. mechanical life 20-22 power 70HP years 24
Slide 25: Market & TürkTraktör
MARKET & TÜRKTRAKTÖR For the last 8 years one out of every two tractors have been manufactured by TürkTraktör. New Holland brand is the leader with a market share of 44% * Case IH brand, launched in the domestic market in 2007, has a market share of 5% * The widest product range The widest dealer ne
Slide 26: Tractor Market in Turkey (units & market share)
TRACTOR MARKET in TURKEY (units & market share %) 70.000 60,00% 52,73% 52,00% 50,30% 50,40% 49,40% 49,88% 48,79% 60.000 49,90% 48,40% 51,50% 44,91% 42,39% 42,12% 50.000 37,70% 40,00% 40,48% 34,22% 40.000 34,49% 60.341 59.449 59.211 52.286 30.000 52.032 50.318 42.033 39.571 20,00% 36.036 34.541 34.52
Slide 27: Tractor Market in Turkey: Market Share
TRACTOR MARKET in TURKEY (Source : TURKSTAT) Turkish Tractor Market (units) 59.449 59.211 52.032 13.228 15.699 11.446 16.850 14.624 14.630 29.371 25.956 28.888 2014 2014/11 2015/11 NH + CIH Other Local Manufacturers Import Products Market Share 49,4% 49,9% 48,8% TürkTraktör maintains its 28,3% 28,1%
Slide 28: Agenda: Operational Performance
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 28
Slide 29: Sales Performance
SALES PERFORMANCE Local Sales Total Sales (units) 2014/9 2015/9 18% 45.893 89% 88% 7% 39.026 11% 15.866 33.780 36.017 10% 14.402 10.378 1% 1% 11.950 New Holland Local Case IH Local New Holland + Case IH Import Export Sales 30.027 24.624 25.639 2014/9 2015/9 21.830 82% 86% 18% 14% 2013 2014 2014/9 20
Slide 30: Operational Results
OPERATIONAL RESULTS Total Production (units) 3.698 2013 38.530 19% 2.525 2014 45.823 2.123 2014/9 34.549 Export Transmission (units) 5% 3.813 2.531 2015/9 36.384 2.596 2.544 2.110 Transmission New Holland & Case IH tractors 2013 2014 2014/9 2015/9 30
Slide 31: Construction Equipment Market in Turkey
CONSTRUCTION EQUIPMENT MARKET in TURKEY (source : IMDER) the fastest growing Shares of construction equipment sales in country within last 11th European countries in 2014 (source : www.cece.eu) 8 biggest market in the world years France Russia (after China & India) 14% 8% Turkey 4% 60% Belgium 4th d
Slide 32: Construction Equipment Market in Turkey: Heavy and Compact Line
CONSTRUCTION EQUIPMENT MARKET in TURKEY 10.983 10.568 9.250 9.397 5.256 5.406 7.295 6.692 4.198 4.917 3.937 3.349 5.727 5.052 5.162 4.480 3.343 3.358 2011 2012 2013 2014 2014/9 2015/9 Heavy Line Compact Line 32
Slide 33: Agenda: Financial Performance
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 33
Slide 34: Financial Performance
FINANCIAL PERFORMANCE Million Euro (average exchange rate for related period announced by the Central Bank of Turkey) 2013 2014 2014/9 2015/9 Revenue 861 937 689 791 Gross Profit 187 168 126 149 Operating Profit 129 102 80 93 Profit Before Tax 127 101 78 72 Net Profit 111 90 67 60 EBITDA 138 114 89
Slide 35: Financial Performance: Revenue Split and Margins
FINANCIAL PERFORMANCE 230 € 29% 243 € 35% 561 € 71% 446 € 65% 2014/9 2015/9 Local Revenue Export Revenue 21,7% 18,8% 18,0% 18,2% 16,1% 14,9% 13,2% 12,9% 12,9% 12,1% 11,7% 11,7% 10,9% 9,6% 9,7% 7,6% 2013 2014 2014/9 2015/9 Gross Margin EBITDA Margin Operating Margin Net Margin 35
Slide 36: Financial Performance: Balance Sheet
FINANCIAL PERFORMANCE Million Euro (official exchange rate for related period announced by the Central Bank of Turkey) 2013 2014 2014/9 2015/9 Total Assets 509 679 616 632 Current Assets 370 468 428 444 Non - Current Assets 139 211 188 188 Total Liabilities 509 679 616 632 Short Term Liabilities 131
Slide 37: Financial Performance: Net Financial Position
FINANCIAL PERFORMANCE Net Financial Position (million euro) 2013 2014 2014/9 2015/9 - 138 - 47 - 162 - 183 95 71 72 42 -5 %4 %33 -77 %37 -82 %34 -80 %96 -114 %67 -157 %63 -143 %66 -155 Cash ST Borrowings LT Borrowings 37
Slide 38: Financial Performance: Liquidity Ratios and Capex
FINANCIAL PERFORMANCE Liquidity Ratios 2,8 1,7 1,8 1,8 1,7 1,2 1,2 1,1 2013 2014 2014/9 2015/9 Current Ratio Quick Ratio Capex (million Euro) 83,04 63,53 43,89 17,36 2013 2014 2014/9 2015/9 38
Slide 39: Financial Performance: Working Capital
FINANCIAL PERFORMANCE Working Capital (million Euro) 2013 2014 2014/9 2015/9 211 175 159 160 163 198 189 124 141 155 142 144 -104 -129 -159 -157 Inventories Trade Receivables (net) Trade Payables (net) 39
Slide 40: Dividend
DIVIDEND According to the JV agreement, the Parties adopted for the Company a “Dividend Policy” that provides, as a 50 matter of principle, for the distribution of dividend to the shareholders in the rate of 60% of the after tax 14 profit. 00 115% 12 107% 50 10 00 83% 300 300 75% 80 50 72% 00 60 200
Slide 41: Borsa Istanbul & TTRAK Index
31.12.2012 31.01.2013 28.02.2013 31.03.2013 BIST100 30.04.2013 31.05.2013 30.06.2013 31.07.2013 31.08.2013 5% 26% 30.09.2013 31.10.2013 30.11.2013 31.12.2013 BIST 100 31.01.2014 28.02.2014 31.03.2014 30.04.2014 31.05.2014 30.06.2014 31.07.2014 31.08.2014 30.09.2014 31.10.2014 30.11.2014 31.12.2014 T
Slide 42: Disclaimer
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 and c
Slide 43: TürkTraktör Investor Relations Contacts
TÜRKTRAKTÖR investorrelations@turktraktor.com.tr 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 43