Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — FY2017 Earnings Presentation
31 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Feb 13, 2018
Slide 1: Press Meeting
1 Press Meeting Feb 13th, 2018
Slide 2: TürkTraktör at a Glance
2 TürkTraktör at a Glance The market leader Biggest tractor producer of successively for 11th Turkey and also Europe by year volume Annual production capacity of 50.000 tractors* Owns the first R&D center in its industry Turkey’s first tractor 64 years of experience manufacturer and exporter Exports
Slide 3: Position within
3 Position within The only design and main production The only production center of Utility center of New Holland TD and Case IH JX Light series tractors and transmissions in series tractors in the world the world The only production and engineering “ The main production center of S8000 center for T
Slide 4: Export Penetration: Where Aren't We, Yet
4 Export Penetration WHERE AREN’T WE, YET… Guinea, Burkina, Faso, Benin, Niger, Tajikistan, Nepal, Bangladesh
Slide 5: Widest Product Range
5 Widest Product Range Local production of tractors with a widest range of hp from 48 to 138 9 new product launches in 2017 A broad range of tractors and equipment covers many different business lines such as orchard, livestock, combine harvester, agricultural contracting etc. + 3000 variant
Slide 6: Continuously 11th year at Market Leadership
Continuously 11th year at Market Leadership 6 (resource: TÜİK) Strengthening in our main core business…. Last 31 years, 19 times market leader Consecutive market leader for 11 years 49,9% 52,0% 51,5% 50,3% 50,4% 48,4% 3,0% 3,7% 49,4% 48,1% 49,3% 2,5% 3,8% 4,3% 4,9% 46,5% 5,4% 5,0% 5,3% 5,0% 38,1
Slide 7: 2017 Highlights: Record at Production and Sales
7 2017 Highlights Total Production (units) Local Sales (units) Total Sales (units) %-3 %5 %12 %7 46.031 49.613 37.590 47.536 48.302 47.124 33.605 46.230 33.002 2015 2016 2017 2015 2016 2017 2015 2016 2017 • Record at Production and Sales By the end of 2017, records are achieved at production with 48
Slide 8: 2017 Highlights: All Financial Solutions Under a Single Roof
8 2017 Highlights All Financial Solutions Under a Single Roof TürkTraktör Finance It is an alternative financial solution that aims the support of increasing and the reach to state-of- the art tractors Common in automotive sector but first in agriculture sector Very convenient and practical cr
Slide 9: 2017 Highlights: Conscious Farmers, Technological Future
2017 Highlights 9 Conscious Farmers, Technological Future Digital transformation is essential for the future of agriculture and farming in Turkey. We are constantly working on our customer relationship channels, our products, our production processes in order to catch the future and make the product
Slide 10: 2017 Highlights: Conscious Farmers, Technological Future
2017 Highlights 10 Conscious Farmers, Technological Future Mobile Application for CRM A personal mobile tool available for the entire dealer sales force to manage customer’s data and plan the field activity. Service Appointment System An appointment system for our customers to arrange their repair a
Slide 11: 2017 Highlights: Tier 4 Engine Production Started
2017 Highlights 11 Tier 4 Engine Production Started • Following the studies of engineers at TürkTraktör R&D Center for 5 years, tractor engines complying with Tier 4 emission standards have been developed to offer much higher torque and power capability with the same fuel consumption to farmers. • B
Slide 12: Global Tractor Sales Volume
12 Global Tractor Sales Volume (source : Systematics, thousand units) Pakistan 54% North America Europe China 6% 3% -25% India TURKEY 15% 5% In thousand 2015 2016 2016/11 2017/11 2017/11 vs units Units % Units % Units % Units % 2016/11 India 484 35% 565 40% 534 40% 617 44% 15% China 298 22% 259 18%
Slide 13: Local Production & Export
13 Local Production & Export (source : TARMAKBİR) Local Production in 2017 (units) Exportation in 2017 (units) Other Other TürkTraktör Manufacturers TürkTraktör Exporters 12.023 23.730 48.302 1.798 87% 33% 67% 13% TürkTraktör covers 67% of the total TürkTraktör alone covers 87% of total production i
Slide 14: Supports Provided within the scope of Agricultural Policies
14 Supports Provided within the scope of Agricultural Policies (source www.tarim.gov.tr) Resources allocated to agriculture and in 2018 budget has been announced as 29,6 billion TL (of which 14,8 billion TL is for agricultural support & 10,1 billion TL is for investment & 4,7 billion TL is for agric
Slide 15: Ziraat Bank Agricultural Loans
15 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 year
Slide 16: The National Energy Efficiency Action Plan
16 The National Energy Efficiency Action Plan The National Energy Efficiency Action Plan (2017 – 2023) including 6-action plan for increasing energy efficiency in agricultural sector has been approved and published at Official Gazette dated 02.01.2018. Encouragement of the Renewal of Tractors and Co
Slide 17: Using Old Combines
17 Using Old Combines (source: TARMAKBİR) Losses from Using Old Combines Increase operating expenses (maintenance, repair, oil, fuel, labor) mechanical life = 3.000 hours Deterioration in quality and crop during harvest season Annual operating time (avg) High exhaust emission values due to exc
Slide 18: Using Tractors Expired Useful Lives
18 Using Tractors Expired Useful Lives (source: TARMAKBİR) Losses from Using Tractors Expired Useful Lives Deterioration in quality and crop Having high production cost per unit due to using low capacity tractor and equipment İncrease noise emission damages human health and causes decrease in
Slide 19: Conscious Farmer, Safe Agriculture Movement
19 Conscious Farmer, Safe Agriculture Movement The statistics for Turkey indicate that 9 accidents occur every day. The number of tractor accidents resulting in death was 245.* Digital Survey Results * TUİK 2016 DATA
Slide 20: Conscious Farmer, Safe Agriculture Movement
20 Conscious Farmer, Safe Agriculture Movement Setting from the huge number of tractor accidents while operating tractors and agricultural equipment is a national problem, we started the "Conscious Farmer Safe Agriculture Movement" to create "safe areas for everyone" towards the end of 2017
Slide 21: Tractor Market in Turkey
21 Tractor Market in Turkey (units) (source : TURKSTAT) 2016 – Total 70.205 units tractor 2017 – Total 72.949 units tractor TürkTraktör TürkTraktör Biggest Competitor Biggest Competitor 35.982 32.671 7.183 8.342 10.2% 49.3% 11.4% 46.5% Other Other Manufacturers Manufacturers 10.197 11.203 14.6% 15.4
Slide 22: Operational Performance – Production
22 Operational Performance – Production (units) Tractor -3% 5% 47.536 46.031 48.302 2015 2016 2017 Engine -2% 4% 37.944 37.038 38.620 2015 2016 2017
Slide 23: Operational Performance – Sales
23 Operational Performance – Sales (units) Tractor Export Sales Local Sales 7% 47.124 49.613 46.230 12.023 -5% 14.122 12.625 33.002 33.605 37.590 12% 2015 2016 2017 Combine 4% 315 316 328 2015 2016 2017
Slide 24: Breakdown of Tractor Sales
24 Breakdown of Tractor Sales Imported Total Sales Tractors in 2017 (78 HP – 380 HP) 49.613 Locally 2% Manufactured tractors Tractors (48 HP – 140 HP) 98% Locally Manufactured Tractors Tractors sold to Export Market Tractors sold to (48 HP – 115 HP) Local Market (48 HP – 140 HP) 25% 75%
Slide 25: Total Sales Revenue
25 Total Sales Revenue (mio TL) %22 4.215 3.443 1.129 3.103 %16 974 939 %25 3.086 2.164 2.469 2015 2016 2017 Local Export
Slide 26: Profitability (mio TL)
26 Profitability (mio TL) 800 %-2 25,0% 21,6% 700 19,5% 20,0% 600 17,3% 500 15,0% 400 742 731 10,0% 300 605 200 5,0% 100 0 0,0% 2015 2016 2017 Gross Profit Gross Profit Margin
Slide 27: Profitability (mio TL)
27 Profitability (mio TL) %-4 600 14,9% 16,0% 13,4% 14,0% 500 11,7% 12,0% 400 10,0% 300 8,0% 512 492 6,0% 200 416 4,0% 100 2,0% 0 0,0% 2015 2016 2017 EBITDA EBITDA Margin
Slide 28: Profitability (mio TL)
28 Profitability (mio TL) 450 11,3% %-10 12,0% 400 9,7% 10,0% 350 8,3% 300 8,0% 250 6,0% 200 388 351 150 302 4,0% 100 2,0% 50 - 0,0% 2015 2016 2017 Profit Before Tax Profit Before Tax Margin
Slide 29: Net Financial Position (mio TL)
29 Net Financial Position (mio TL) 2015 2016 2017 - 685 - 429 - 720 442 244 228 31% -207 20% -188 24% -271 69% -466 80% -760 76% -856 Cash and Cash Equivalents Short Term Borrowings Long Term Borrowings
Slide 30: Dividend (mio TL)
30 Dividend (mio TL) Since listed in the stock exchange market, TürkTraktör paid the total amount of 2.1 billion TL dividend (excluded 2018 dividend proposal). 375 115% 117% 107% 100% 101% 110% 325 94% 300 300 300 300 87% 275 83% 90% 250 94% 72% 75% 225 68% 70% 200 200 54% 175 150 50% 40% 125 107 94
Slide 31: Thank You
CP Koc INDUSTRIAL Biliucli Gt. Porlak-Gelecek--- Thank You
Türk Traktör ve Ziraat Makineleri A.Ş. — FY2017 Earnings Presentation on 6ix