Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — FY2019 Earnings Presentation
41 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Feb 11, 2020
Slide 1: TürkTraktör 2019
@pokog TurkTrakior - . ne 4 Z2U19 TiirkTraktor
Slide 2: TürkTraktör at a Glance
TurkTraktor at a Glance 2 Financial Services © First in Turkish agriculiure sector © Covers tractor, equipment and construction equipment businesses. TiirkTraktor mae Finans Engine / Transmission Production suitable for Tier IHILIV emission levels High added value with transmission and axle product?
Slide 3: Corporate Structure
Corporate Structure Wide Product Range for Every Type of Need We offer innovative and technological solutions in many different segments with our orchard and field-type tractors, technological agricultural equipment, construction and agriculture machines that offer ‘superior performance and efficenc
Slide 4: TürkTraktör at a Glance
TürkTraktör at a Glance 77% of Total tractor production in Turkey 90% of Total tractor export in Turkey 930,000+ 22,500+ 500,000+ 13,500+ 180,000+ 15,000+
Slide 5: Plants & Facilities
Plants & Facilities Ankara Plant Engine and transmission manufacturing center Opening: 25.06.1954 Total Area: 257,325 m2 Ankara CE Facility Opening: 30.10.2014 Total area : 9,784 m2 GP Koc Erenler Plant Paintshop and assembly processes Opening : 17.06.2014 Total Area :402,162 m2 izmir CE Facility Op
Slide 6: Global Tractor Sales Volume
Global Tractor Sales Volume 6 Source: systematics, a thousand units
Slide 7: 2019 Precipitation Trend and Yield
2019 Precipitation Trend and Yield 7 • In 2019, the production amounts of grain and (Mio ton) Production 2018 2019 other crops, vegetables and fruits are increased by 1.4%, 3.5% and 0.3% compared 62.9 63.8 to the previous year. • Considering the production amounts of 30.0 31.1 22.3 22.3 important pr
Slide 8: Turkey - Agriculture Sector
Turkey - Agriculture Sector / Source: www.sbb.gov.tr 8 • It has been announced that the government has allocated 22.0 billion TL budget for agriculture support in 2020. • Support for diesel and fertilizer support amounts, which are among the main input costs, increased by 30% and 59% compared to pre
Slide 9: Ziraat Bank Agricultural Loans
Ziraat Bank Agricultural Loans 9
Slide 10: Historical Data of Turkish Market
Historical Data of Turkish Market 10 Period Market Avg. of 20 years 39,319 Avg. of 10 years 54,224 Avg. of 5 years 56,762 5 Year Average Tractor Park in 10 Year Average Turkey 2012 Drought 20 Year Average 2018-2019 Financial Uncertanity Ratio of the tractors >24 2009 Global Crisis years
Slide 11: What was our agenda when we started 2019?
What was our agenda when we started 2019? 11 1 2 Leader in Growth in Domestic Export 3 Market We continue to invest for new products 4 Cost 5 Strong Management Cash & Productivity Position
Slide 12: 1- Growth in Export
1- Growth in Export 12 50% 31% EU NAFTA AMEA 2019 - Total: 15,207 ANZ LATAM 80% of our exports are made to North American and European markets.
Slide 13: 2- Leader in Domestic Market
2- Leader in Domestic Market 13 Turkish Tractor Market TürkTraktör Market Share 72,949 Other Manufacturers /Importers TürkTraktör 48,044 25,839 35,982 20,616 11,734 2017 2018 2019 Leader in the shrinking market with a 45% market share
Slide 14: 3- We continue to launch new products
3- We continue to launch new products 14
Slide 15: 4- Our Other Important Priorities in 2019
4- Our Other Important Priorities in 2019 15
Slide 16: Highlights from Our Anniversary
Highlights from Our th Anniversary 16
Slide 17: Highlights from Our Anniversary
Highlights from Our th Anniversary 17
Slide 18: Highlights from Our Anniversary
Yılımızda Highlights Öne from Çıkanlar Our th Anniversary 18 18
Slide 19: Highlights from Our Anniversary
Highlights from Our th Anniversary 19
Slide 20: Corporate Social Responsibility Projects Certificates & Awards
Corporate Social Certificates & Awards 20 Responsibility Projects
Slide 21: What was our agenda when we started 2019?
What was our agenda when we started 2019? 21 1 2 Leader in Growth in Domestic Export 3 We continue Market to invest for new products 4 Cost 5 Strong Management Cash & Productivity Position
Slide 22: 2020 Agenda
2020 Agenda.. 22 1 2 Leader in Growth in Domestic Export Market Construction Equipment 3 4 Cost We continue Management to invest for & Productivity new products
Slide 23: We started to produce construction equipment locally
We started to produce 23 We are the distributor of New Holland and Case construction equipment locally branded construction equipment since 2013 and in 2020 we started to produce New Holland and Case branded TLB’s(Tractor Loader Backhoe) in our Ankara Factory by using latest technology.
Slide 24: We continue to launch new products
We continue to launch new products 24 ❖ Tier IV Transition in Turkey ❖ Equipment and R&D ❖ Tier V Transition in Europe ❖ Tractor New Product Launches
Slide 25: Operational Results
Operational Results TiirkTraktor 25
Slide 26: Operational Results – Production: Tractor
Operational Results – Production (Units) 27 Tractor 2018 4Q-2019 4Q Change 52% 12,777 2019 3Q-2019 4Q 48,302 -29% Change 25% 10,444 34,114 -33% 7,050 6,252 5,574 5,639 22,745 4,482 4,641 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2017 2018 2019
Slide 27: Operational Results – Production: Engine
Operational Results – Production (Units) 28 Engine 2018 4Q-2019 4Q Change -20% 38,620 2019 3Q-2019 4Q 10,953 -20% Change 34% 30,914 8,780 5,664 -56% 5,517 4,423 3,020 3,311 13,719 2,965 2018 1Q 2018 2Q 2018 3Q 2019 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2017 2018 2019
Slide 28: Breakdown of Tractor Sales
Breakdown of Tractor Sales 29 Total Sales in 2019 26,110 tractors Locally Manufactured Tractors Tractors sold to Tractors sold to Export Market Local Market 99% 58% 42% Imported Tractors 1%
Slide 29: Total Sales Units (tractors)
Total Sales Units (tractors) 30 2018 4Q-2019 4Q 2019 3Q-2019 4Q Export -21% Export -24% 49,613 Local 59% Local 58% Total 9% 12,023 Total 6% -35% 1,065 32,157 -19% 2,828 8,773 21% 26,110 6,886 7,312 6,699 14,502 5% 3,470 6,037 5,898 6,014 37,590 3,302 15,207 4,180 4,009 4,343 -53% 7,820 4,024 3,553 5
Slide 30: Total Sales Revenue (mio TL)
Total Sales Revenue (mio TL) 31 2018 4Q-2019 4Q 2019 3Q-2019 4Q 4,215 Export -15% Export -17% 3,909 3,806 -7% Local 79% Local 52% -3% 1,129 Total 19% Total 10% 68% 2,158 1,048 1,077 1,083 1,893 14% 922 983 876 908 310 426 818 494 579 591 596 3,086 -35% 578 477 -18% 2,016 738 651 1,648 589 298 329 34
Slide 31: Profitability (mio TL) - Gross Profit
Profitability (mio TL) 32 18.3% 21.1% 17.3% 18.8% 14.4% 17.4% 17.2% 16.4% 731 717 14.2% -2% 13.8% 549 11.7% 33% 202 -23% 172 185 186 158 127 140 96 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2017 2018 2019 Gross Profit Gross Profit Margin Gross Profit Gross Profit Margin
Slide 32: Profitability (mio TL) - Operating Profit
Profitability (mio TL) 33 13.7% 10.5% 10.0% 11.5% 9.4% 9.0% 423 411 6.5% 7.9% 7.2% -3% 6.5% -40% 38% 124 248 120 85 2.3% 98 82 71 60 19 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2017 2018 2019 Operating Profit Operating Profit Margin Operating Profit Operating Profit Margin
Slide 33: Profitability (mio TL) - EBITDA
Profitability (mio TL) 34 16.2% 12.7% 11.7% 13.5% 12.1% 11.9% 9.8% 1% 10.0% 10.4% 9.7% 492 498 374 26% 6.2% -25% 144 142 129 102 110 102 92 51 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2017 2018 2019 EBITDA EBITDA Margin EBITDA EBITDA Margin
Slide 34: Profitability (mio TL) - Profit Before Tax
Profitability (mio TL) 35 7.9% 9.1% 8.3% 5.2% 6.1% 3.7% 6.5% 2.4% 1.5% 2.9% -27% 0.6% 351 86 83 175% 66 256 55 109 32 -57% 24 14 5 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2017 2018 2019 Profit Before Tax Profit Before Tax Margin Profit Before Tax Profit Before Tax Margin
Slide 35: Profitability (mio TL) - Net Profit
Profitability (mio TL) 36 8.2% 7.5% 7.6% 6.3% 6.1% 5.4% 2.3% -25% 2.9% 3.3% 68 81 1.5% 74 0.9% 321 209% 240 56 112 29 -53% 14 22 8 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2017 2018 2019 Net Profit Net Profit Margin Net Profit Net Profit Margin
Slide 36: Working Capital (mio TL)
Working Capital (mio TL) 37 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 1,106 1,194 842 1,077 1,021 28.4% 28.8% 24.8% 955 1,122 820 490 820 25.0% 920 645 20.0% 1,085 823 20.6% 672 632 16.9% 15.1% 832 832 593 637 538 487 449 467 -521 -513 -480 -541 -514 -609 -810 -681 Trade Receiv
Slide 37: Net Financial Position (mio TL)
Net Financial Position (mio TL) 38 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q -1,155 -649 -1,465 -899 -1,550 -1,360 828 747 -1,153 -1,400 413 599 617 155 327 92 15% -182 23% -350 17% -328 28% 26% -470 -397 49% -745 52% -1,068 62% -1,126 85% -1,063 77% -1,205 72% -999 83% -1,549
Slide 38: Net Financial Position / EBITDA
Net Financial Position / EBITDA 39 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q -649 -899 -1,153 1,155 -1,400 -1,360 -1,550 -1,465 -1.74 -2.77 -2.39 -2.53 -2.95 -2.73 -2.92 -3.28 Net Financial Position NFP / EBITDA
Slide 39: Dividend
Dividend 40 Total TL 2.4 billion was distributed as dividend to the shareholders between 2004 – 2019 Dividend (mio TL) Dividend / Net Profit Dividend Yield (%) 300 300 300 300 115% 117% 100% 101% 107% 250 94% 94% 83% 87% 200 200 89% 75% 72% 150 68% 54% 107 94 94 100 40% 50 47 26% 16% 13% 15% 14% 17
Slide 40: Expectations
Expectations 40 Our expectations for the year 2020 ara as follows Turkish Tractor Industry Volume 28,000 – 33,000 units TürkTraktör Local Tractor Sales* 12,500 – 15,500 units Tractor Exports 14,000 – 15,500 units CAPEX 175 – 225 million TL *Sales to the dealers included imported tractors
Slide 41: Disclaimer
Disclaimer 41 This presentation does contain forward-looking statements that reflect the Company management’s current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable, they may b
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