Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Investor Presentation (2014)
47 slides from Turk Traktor Ve Ziraat Makineleri A.s's investor presentation, 2014
Slide 1: Investor Presentation 2013
INVESTOR PRESENTATION 2013
Slide 2: Company Profile
1 COMPANY PROFILE Factory Güvercin Yolu No: 111-112 Gazi Ankara Turkey Spare Part Warehouse & Logistic Büğdüz Mahallesi No: 286 Akyurt Ankara Turkey Annual Production Capacity 35.000 units of tractors & 25.000 units of engines (In case of working in double shifts for 5 days a week as per the Chamber
Slide 3: In the World and in Turkey
2 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 4: Main Factors Affecting the World Agricultural Industry
3 MAIN FACTORS AFFECTING THE WORLD AGRICULTURAL INDUSTRY Major impact of drought and climate changes on the industry due to global warming Increase in food prices in parallel to the increase in the world’s population Decrease in available water supply in the world Worldwide agricultural comm
Slide 5: Agriculture Sector in Turkey
4 AGRICULTURE SECTOR IN TURKEY 3 million Rich soil structure, agricultural Turkey's total holdings, arable lands and land area 78 million favorable climate the average land hectare size 6 hectares conditions per farm Agricultural Share of the Land Size agricultural 23,8 million industry over hectare
Slide 6: Land Consolidation
5 LAND CONSOLIDATION The land consolidation studies have gained importance against the problem of small scale agricultural holdings which is the leading problem within the structural problems in the agricultural sector in Turkey. While 450 thousand hectare land in total was consolidated in Turke
Slide 7: Agriculture Sector in Turkey
6 AGRICULTURE SECTOR IN TURKEY 70,0 Turkish agricultural sector 10,0% 8,8% 7,2% 8,0% has grown in 7 out of last 8 60,0 61,8 6,0% years becoming the 61,7 62,5 50,0 56,4 51,0 6,1% 4,0% locomotive sector for 40,0 2,8% 45,0 43,5 49,5 4,3% Turkish economy. 3,6% 3,5% 2,0% 2,4% 37,0 0,0% 30,0 1,4% Whil
Slide 8: Agriculture Sector in Turkey
7 AGRICULTURE SECTOR IN TURKEY Agricultural Export (Billion $) 15,3 16,0 12,7 11,5 11,2 9,8 8,3 8,6 6,5 5,3 4,0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 In 2012, Turkey’s agricultural export reached to 16 billion dollars consisting of 15 billion dollar for foodstuffs export and 1 bil
Slide 9: Agriculture Sector in Turkey
8 AGRICULTURE SECTOR IN TURKEY Turkey, located at the most favorable climate zone in geographical terms, has adequate natural NUT resources. Turkey has the capacity to support the FIG agricultural industry with her increasing population APRICOT and purchasing power. Turkey, in particular thanks CHER
Slide 10: Agricultural Crop Map of Turkey
9 AGRICULTURE SECTOR IN TURKEY AGRICULTURAL CROP MAP OF TURKEY 1 2 3 4 Fruits - vegetables , sunflower, olive, Cereal, legume, sugar beet tobacco, creal, nut, sugar beet 5 Tea, nut, corn, tobacco, hemp, rice, Fruits - vegetables, tobacco, olive, cotton, fruits - vegetables citrus, rice, opium poppy
Slide 11: Agriculture Sector in Turkey
10 AGRICULTURE SECTOR IN TURKEY Favorable ecological conditions and climate for agricultural production ￫Tarımsal üretim için uygun ekolojik koşullar ve iklim Government incentives granted for agricultural investments ￫Tarım sektöründeki yatırımlar için sağlanan devlet destekleri Increased rec
Slide 12: Turkish Tractor Park & Renewal Potential
11 TURKISH TRACTOR PARK & RENEWAL POTENTIAL Use of obsolete tractors in the Turkish market not only increases the cost of the enterprises but also results in productivity loss by 25%. More than half million tractors are required to be renewed due to invalid specifications. Use of high capacity
Slide 13: Turkish Tractor Park & Renewal Potential
12 TURKISH TRACTOR PARK & RENEWAL POTENTIAL Reference to TURKSTAT data, there are 1.466.208 units of tractors in Turkish tractor App. park. The average of the park is 23. Mechanical Life 20-22 There are 735.487 tractors over 25 years. The Years average of those is 35. Total Average 1.466.208 Age
Slide 14: Agricultural Mechanization
13 AGRICULTURAL MECHANIZATION The rate of equipment use in Turkish agriculture is lower than the tractor use rate; the number of equipment per tractor and also the qualities of such equipment are far behind the levels of the developed countries. Capital requirement for the OPERATING acquisition and
Slide 15: Resources Allocated to Agriculture in Turkey
14 RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY 2014 Agricultural Support Payment 9,7 billion TL BUDGET* Resources Allocated to Agriculture 14,2 billion TL Agricultural Support Payment 9 billion TL 2013 Resources Allocated to Agriculture 15 billion TL 2012 Agricultural Support Payment 7,6 billion TL
Slide 16: Resources Allocated to Agriculture in Turkey
15 RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY Resources Allocated to Agriculture (million TL) GDP (million TL) 2012 15.000 2012 1.416.817 2011 9.600 2011 1.294.893 2010 8.429 2010 1.105.101 2008 7.180 2008 950.098 2002 2.772 2002 350.476 Ratio in GDP 1,059% 0,791% 0,756% 0,763% 0,741% 2002 2008 20
Slide 17: Consumer Finance
16 CONSUMER FINANCE In Turkey, 90% of the farmers buy the tractors through bank loans. TRACTOR SALES The dealer, should TÜRK TRAKTÖR DEALER have the current payment details of all banks and follow ~ 25% OF THE VALUE OF THE TRACTOR IS the interest rates, PAID IN CASH OR TRADE-IN DEAL IS help the farm
Slide 18: In the World and in Turkey
17 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 19: Turkey in Worldwide Tractor Market
18 TURKEY in WORLDWIDE TRACTOR MARKET 1.600 Turkey 1.400 Other Countries 1.200 Pakistan 1.000 India 800 China 600 Latin America 400 Europe 200 North America 0 2006 2007 2008 2009 2010 2011 2012/11 2012 2013/11 WORL D T RACT OR MARKET Units in Thousand 2006 2007 2008 2009 2010 2011 2 0 1 2 /1 1 2012
Slide 20: Tractor Market in Turkey
19 TRACTOR MARKET in TURKEY Ihlas Kubota Farmtrac Mahindra McCormick Claas SuperStar Deutz Fendt LS Kioti Ferrari In the Turkish Branson market under Foton Erkunt NH fierce competition (Harman) Landini In 2001 four brands circumstances, were competing in the TürkTraktör is the Uzel Yağmur market, wh
Slide 21: Tractor Market in Turkey
20 TRACTOR MARKET in TURKEY 70.000 60.341 60.000 52.286 50.318 50.000 42.033 39.571 40.000 36.036 33.989 34.525 34.541 unit 30.000 27.022 20.000 18.639 13.758 10.587 10.000 8.127 2.161 2.169 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/1 2013 2014/1 Source : TURKSTAT
Slide 22: Tractor Market in Turkey
21 TRACTOR MARKET in TURKEY 35.000 60% 52,0% 52,6% 51,5% 50,3% 50,4% 30.000 49,9% 48,4% 50% 46,0% 44,9% 25.000 37,7% 40% 33,6% 33,7% 20.000 30,6% Unit 28,5% 27,0% 27,8% 30% 25,8% 24,9% 15.000 22,7% 21,5% 21,0% 19,7% 23,5% 22,2% 20% 16,5% 21,1% 10.000 16,3% 10% 5.000 1.136 13.011 15.886 13.497 25.344
Slide 23: Tractor Market in Turkey
22 TRACTOR MARKET in TURKEY Tractor Sales @ 2013/1 Tractor Sales @ 2014/1 Import Import Products Products NH + CIH NH + CIH 425 466 973 1.136 Other Local Manufacturers Other Local 600 Manufacturers 730 Market Share @ 2013/1 Market Share @ 2014/1 Market Share @ Last 12 Months NH + CIH 52,6% NH + CIH
Slide 24: Market & TürkTraktör
23 MARKET & TÜRKTRAKTÖR For the last 6 years one out of every two tractors have been manufactured by TürkTraktör. In the tractor market, New Holland brand is the leader with a market share of 41%*. Case IH brand, launched in the domestic market in 2007, has a market share of 4%*. The widest produc
Slide 25: In the World and in Turkey
24 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 26: Competitive Advantages
25 COMPETITIVE ADVANTAGES Koç Holding CNHI A.Ş. 60 37,50% 37,50% Public Quotation Other 24,93% 0,07% TürkTraktör, manufactured KOÇ HOLDİNG A.Ş. Strong distribution and exported tractors for the WIDEST DEALER NETWORK One of the strongest network throughout EXPERIENCE OF 60 YEARS first time in Tur
Slide 27: Competitive Advantages
26 COMPETITIVE ADVANTAGES Being the first in Turkey R&D center accredited Export to over 130 concerning flexible by the Ministry of countries all over the manufacturing lines that Industry on 03 world via global network enables co-use of September 2009 of CNHI, such as, US, LARGE SCALE EXPORT
Slide 28: Management Strategy
27 MANAGEMENT STRATEGY TürkTraktör tries to go head to head with international manufacturers from the same segment. TürkTraktör follows the developments in the world market and keeps track of innovations in the sector. TürkTraktör has an objective on a preferential basis to protect its cost-favo
Slide 29: In the World and in Turkey
28 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 30: Manufactured Products (Tractor)
29 MANUFACTURED PRODUCTS (TRACTOR) Series T480 T480 2WD T480 4WD 48 HP 48 HP TT 50 55 65 75 50 HP 55 HP 65 HP 72HP 56s 55 65 75 55 HP 65 HP 75 HP TDS 65 75 80 65 HP 72 HP 80 HP TDD 65 75 80 90 100 110 65 HP 75 HP 83 HP 88 HP 98 HP 110 HP TTB 50 55 65 50 HP 55 HP 65 HP TDB 65 75 80 65 HP 72 HP 80 HP
Slide 31: Imported Products (Tractor)
30 IMPORTED PRODUCTS (TRACTOR) Series T3000 T3010 T3040 38 HP 55 HP T4000 T4030 De. F-N-V T4040F T4050F 78 HP 88 HP 97 HP T5000 T5050 T5060 T5070 96 HP 106 HP 113 HP T6000 T6020 T6050 T6060 T6070 T6080 T6090 112 HP 127 HP 132 HP 141 HP 155 HP 165 HP T7000 T7040 T7060 T7070 182 HP 213 HP 225 HP T8 T8
Slide 32: Products (Tractor)
31 PRODUCTS (TRACTOR) Series JXC 55 65 75 Manufactured 55 HP 65 HP 75 HP Utility Light* 55 65 75 Manufactured 55 HP 65 HP 75 HP JX 70 75 80 90 100 110 Manufactured 65 HP 75 HP 80 HP 88 HP 98 HP 110 HP JXU 95 105 115 Imported 96 HP 106 HP 113 HP MAXXUM 110 130 140 Imported 112 HP 132 HP 141 HP PUMA C
Slide 33: Agricultural Equipment
32 AGRICULTURAL EQUIPMENT COMBINES COMBINES COTTON PICKERS SQUARE BALERS SELF PROPELLED SPRAYERS SELF PROPELLED FORAGE HARVESTERS PNEUMATIC PLANTERS ROUND BALERS SPRAYERS PNEUMATIC PLANTERS SOIL TILLAGE EQUIPMENTS
Slide 34: In the World and in Turkey
33 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 35: Operational Results
34 OPERATIONAL RESULTS Tractor Sales Units 9. 601 14. 565 14. 402 31. 152 25. 597 24. 624 2011 2012 2013 Local Sales Export Sales 2013 Local Sales (units) 2013 Export Sales (units) NH Local Case IH Export 21.683 3.016 88% 21% Case IH Local 2.408 10% Case IH Imported NH Imported NH Export 92 441 11.3
Slide 36: Operational Results
35 OPERATIONAL RESULTS MANUFACTURING UNITS TRANSMISSION EXPORT UNITS 2011 2012 2013 Tractor Transmission
Slide 37: Market Leader in Agricultural Equipment Sector
36 OPERATIONAL RESULTS MARKET LEADER IN AGRICULTURAL EQUIPMENT SECTOR
Slide 38: Financial & Operational Performance
37 FINANCIAL & OPERATIONAL PERFORMANCE million EU R 2011 2012 2013 R evenue 737 839 741 Gross Profit 174 180 161 Operating Profit 127 125 111 Profit Before Tax 140 135 109 N et Profit 114 114 95 EBI TD A 132 133 119 Revenue @ 2012 (million Eur) Revenue @ 2013 (million Eur) Local Revenue Local Revenu
Slide 39: Financial & Operational Performance
38 FINANCIAL & OPERATIONAL PERFORMANCE Profitability Ratios 24% 21% 22% 17% 18% 15% 16% 16% 15% 15% 14% 13% 2011 2012 2013 Gross Margin Operating Margin EBITDA Margin Net M argin Re turn o n Equity & Return o n Asset 47% 40% 38% 22% 20% 19% 2011 2012 2013 RoE RoA
Slide 40: Financial & Operational Performance
39 FINANCIAL & OPERATIONAL PERFORMANCE million E U R 2011 2012 2013 Total A ssets 507 561 509 C urrent A ssets 437 470 370 N on-C urrent A ssets 70 92 139 Total Liabilities 507 561 509 S hort Term Liabilities 204 186 131 Long Term Liabilities 59 93 124 E quity 244 282 253 N e t F inancial Position 9
Slide 41: Financial & Operational Performance
40 FINANCIAL & OPERATIONAL PERFORMANCE Liquidity Ratios 2,8 2,5 2,1 1,9 1,7 1,5 2011 2012 2013 Current Ratio Quick Ratio *The dividend distributed on March in 2013 and on April in 2012.
Slide 42: Financial & Operational Performance
41 FINANCIAL & OPERATIONAL PERFORMANCE Ne t Working Capital 172 mln € 160 153 2011 2012 2013 C APEX 63, 53 mln € 30, 32 32, 02 2011 2012 2013
Slide 43: Dividend
42 DIVIDEND * Share closing price as of dividend payment date have been used to calculate the dividend yield. ** Share closing price as of 16.02.2012 has been used to calculate the dividend yield of 2012. According to the agreement between Koç Holding and CNH Industrial NV (old name is CNH Global NV
Slide 44: Borsa Istanbul & TTRAK Index
31.12.2012 43 31.01.2013 28.02.2013 BIST-100 31.03.2013 30.04.2013 BIST 100 TTRAK 31.05.2013 30.06.2013 31.07.2013 31.12.2012 =100 31.08.2013 TTF Values 30.09.2013 BORSA ISTANBUL & TTRAK INDEX 31.10.2013 30.11.2013 31.12.2013 % 13 %6 %264
Slide 45: Contact
44 CONTACT Marco VOTTA Memet KAMBER Ilkiz KARAGULLU CEO CFO Investor Relations Supervisor +90 312 2332001 +90 312 2332003 +90 312 2332502 marcov@turktraktor.com.tr memetk@turktraktor.com.tr ilkizk@turktraktor.com.tr
Slide 46: Disclaimer
45 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 an
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