Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Q1 2012 Earnings Presentation
43 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, March 2012
Slide 1: Investor Presentation March 2012
INVESTOR PRESENTATION MARCH 2012
Slide 2: Company Profile
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 single shift for 5 days a week as per the Chambers o
Slide 3: Agenda: Agricultural Sector, Tractor Market, Advantages, Products, Results
In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 4: Main Factors Affecting the World Agricultural Industry
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 commodities tr
Slide 5: Agriculture Sector in Turkey
AGRICULTURE SECTOR IN TURKEY Average land size The major industry 25% of total with the product employment in Turkey 57 decare EU 170 decare branding trend Turkey in global USA >1.000 decare competition Rich soil structure, Share of the arable lands and agricultural favorable climate industry over c
Slide 6: Agriculture Sector in Turkey
AGRICULTURE SECTOR IN TURKEY Turkey, located at the most favorable climate zone in geographical terms, has adequate natural NUT FIG resources. Turkey has the capacity to support the APRICOT agricultural industry with her increasing population CHERRY and purchasing power. Turkey, in particular thanks
Slide 7: Agriculture Sector in Turkey
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 recent inter
Slide 8: Turkish Tractor Park & Renewal Potential
TURKISH TRACTOR PARK & RENEWAL POTENTIAL Use of obsolete tractors in the Turkish market not only increases the cost of the enterprises but also App. results in productivity loss by 25%. Mechanical Life More than half million tractors are required to be 20-22 renewed due to invalid specifications. Ye
Slide 9: Agricultural Mechanization
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 ope
Slide 10: Resources Allocated to Agriculture in Turkey
RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY 2008 2010 2011 2012 BUDGET Agricultural Agricultural Support Support Payment Payment Agricultural Agricultural 5,1 billion TL 5,4 billion TL Support Payment Support Payment 6,3 billion TL 7,2 billion TL Agricultural Loan Agricultural Loan Interest Support
Slide 11: Resources Allocated to Agriculture in Turkey
RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY Resources Allocated to Agriculture (million TL) GDP (million TL) 2010 8. 429 2010 1. 105.101 2008 7. 180 2008 950.098 2002 2. 772 2002 350.476 Ratio in GDP 0, 791% 0, 763% 0,756% 2002 2008 2010 Source : General Directorate of Agricultural Production and D
Slide 12: Resources Allocated to Agriculture in Turkey
RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY SUPPORT PAYMENTS in 2008 (thousand TL) SUPPORT PAYMENTS in 2010 (thousand TL) Livestock Support Livestock Support Deficiency Deficiency 1.308.257 1.192.617 Payment Support Payment Support 26% 22% 1.646.502 2.071.451 32% 38% Other Other 215.214 286.156 4%
Slide 13: Consumer Finance
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 farmer
Slide 14: Tractor Market
In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 15: Turkey in Worldwide Tractor Market
TURKEY in WORLDWIDE TRACTOR MARKET WORL D TRACT OR MARKET Units in Thousand 2006 2007 2008 2009 2010 2011 North America 239 242 226 179 188 188 Europe 178 186 198 164 151 174 Latin America 44 61 83 69 83 80 China 202 178 180 271 295 340 India 318 310 308 361 457 537 Pakistan 50 55 55 68 68 52 Other
Slide 16: In the Turkish Market Under Fierce Competition
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, where
Slide 17: Tractor Market in Turkey
TRACTOR MARKET in TURKEY 70.000 60.341 60.000 50.000 42.033 39.571 40.000 34.525 34.541 36.036 33.989 unit 30.000 27.022 25.518 21.545 18.639 20.000 13.758 10.587 10.000 8.127 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011/5 2011 2012/5 Source : TURKSTAT
Slide 18: Tractor Market in Turkey
TRACTOR MARKET in TURKEY 35.000 60% 52,0% 51, 5% 49, 8% 50,3% 30.000 49, 9% 49, 9% 50% 46,0% 25.000 37,7% 40% 33,6% 20.000 28, 6% 28, 5% 28,5% Unit Uni 30% 25, 8% 24,9% 15.000 22,2% 23,5% 21,6% 20% 16, 5% 16,3% 21,1% 10.000 21,6% 10% 5.000 12.706 13.011 15.886 13.497 8.985 18.565 30.365 17.221 12.75
Slide 19: Tractor Market in Turkey
TRACTOR MARKET in TURKEY Tractor Sales @ 2011/5 2011/5 Tractor Sales @ 2012/5 2012/5 Import Import Products NH + CIH Products NH + CIH 5.502 12.706 4.661 10.753 Other Local Manufacturers Other Local 7.310 Manufacturers 6.131 Market Share @ 2011/5 2011/5 Market Share @ 2012 2012/5 Market Share @ Last
Slide 20: Market & TürkTraktör
MARKET & TÜRKTRAKTÖR For the last five years one out of every two tractors have been manufactured by TürkTraktör.. TürkTraktör In the tractor market, New Holland brand is the leader with a market share of 46% 46 %*. 2007,, has a market share of Case IH brand, launched in the domestic market in 2007
Slide 21: Competitive Advantages
In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 22: Competitive Advantages: Strong Shareholder
COMPETITIVE ADVANTAGES CNH Koç Holding 37,50% 57 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 57 YEARS first time in Turkey and has S
Slide 23: Competitive Advantages: Manufacturing
COMPETITIVE ADVANTAGES Being the first in Turkey R&D center accredited Export to over 90 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 CNH, such as, US, LARGE SCALE EXPORT automatic m
Slide 24: Management Strategy
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-favorable c
Slide 25: Products
In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 26: Manufactured Products (Tractor)
MANUFACTURED PRODUCTS (TRACTOR) Series T480 2WD T480 4WD T480 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 65 75 80 90 100 TDD 69 HP 75 HP 83 HP 88 HP 98 HP TTB 50 55 65 50 HP 55 HP 65 HP TDB 65 75 80 65 HP 72 HP 80 HP New Product
Slide 27: Imported Products (Tractor)
IMPORTED PRODUCTS (TRACTOR) Series T3010 T3040 T3000 38 HP 55 HP T4000 T4030 De. F- F-N-V T4040F T4050F 78 HP 88 HP 97 HP T5040 T5050 T5060 T5000 86 HP 96 HP 106 HP T6020 T6040 T6060 T6080 T6000 112 HP 121 HP 132 HP 155 HP T7030 T7040 T7060 T7070 T7000 167 HP 182 HP 213 HP 225 HP T8.300 T8.360 T8.39
Slide 28: Products (Tractor)
PRODUCTS (TRACTOR) Series 70 75 80 90 100 JX Pro 80 HP Manufactured 65 HP 75 HP 88 HP 98 HP JXU 85 95 105 Imported 86 HP 96 HP 106 HP MAXXUM 100 110 130 140 Imported 101 HP 112 HP 132 HP 141 HP PUMA CVX PUMA 125 140 155 165 180 210 225 Imported 126 HP 141 HP 155 HP 167 HP 182 HP 213 HP 225 HP CVX 14
Slide 29: Imported Agricultural Equipment
IMPORTED AGRICULTURAL EQUIPMENT COMBINES COMBINES SQUARE BALERS COTTON PICKERS SELF PROPELLED FORAGE HARVESTERS SELF PROPELLED SPRAYERS PLANTERS PNEUMATIC PLANTERS ROUND BALERS SPRAYERS
Slide 30: Operational Results
In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 31: Operational Results: Tractor Sales Units
OPERATIONAL RESULTS T ractor Sales Units 12.000 10.000 3 . 42 1 8.000 1. 212 6.000 10.905 4.000 2. 7 9 9 7. 244 8.456 7 . 48 4 2.000 5.667 2. 8 6 8 0 2010/3 2011/3 2012/3 Local Sales Export Sales NH Local Local Sales Export Sales 6.757 Case IH Export 90,3% 1.086 Case IH Local 32% 630 8,4% NH Export
Slide 32: Operational Results: Manufacturing and Transmission Units
OPERATIONAL RESULTS MANUFACTURING UNITS 2010/3 5. 830 2011/3 81% TRANSMISSION SALES UNITS 2010/3 8. 446 2012/3 1. 336 89% 12. 177 19% 2011/3 1.422 90% 1.305 1. 063 11% 2012/3 1.071 1. 327 10% Tractor Transmission 2010/3 2011/3 2012/3
Slide 33: Market Leader in Agricultural Equipment Sector
OPERATIONAL RESULTS MARKET LEADER IN AGRICULTURAL EQUIPMENT SECTOR Combine Sales Units 2012/3 189 2011/3 243 2010/3 91 2009/3 50
Slide 34: Financial & Operational Performance
FINANCIAL & OPERATIONAL PERFORMANCE million EU R 2010/3 2011/3 2012/3 R evenue 117 179 226 Gross Profit 27 52 47 Operating Profit 20 42 33 Profit Before Tax 15 59 32 N et Profit 12 34 27 EBI TD A 21 44 35 Revenue @ 2011/3 (million Eur) Revenue @ 2012/3 2012/3 (million Eur) Export Revenue Export Reve
Slide 35: Financial & Operational Performance: Profitability Ratios
FINANCIAL & OPERATIONAL PERFORMANCE Profitability Ratios @ 2012/3 2012/3 Net Margin 12% EBITDA Margin 15% Operating Margin 15% Gross Margin 21% 0% 5% 10% 15% 20% 25% R e turn on Equity & Return on Asset 20% 19% 15% 10% 10% 8% 8% 4% 5% 3% 0% 2010/3 2011/3 2012/3 RoE RoA
Slide 36: Financial & Operational Performance
FINANCIAL & OPERATIONAL PERFORMANCE million E U R 2010/3 2011/3 2012/3 T otal A ssets 364 443 608 C urrent A ssets 286 371 533 N on-C urrent A ssets 78 72 75 T otal Liabilities 364 443 608 S hort T erm Liabilities 122 250 259 Long T erm Liabilities 90 14 70 E quity 152 180 279 N e t F inancial Posit
Slide 37: Financial & Operational Performance: Liquidity
FINANCIAL & OPERATIONAL PERFORMANCE Liquidity Liquidity Ratios 2, 3 2, 1 1, 8 1, 5 1, 5 1, 2 2010/3 2011/3 2012/3 Current Ratio Quick Ratio
Slide 38: Financial & Operational Performance: Working Capital and Capex
FINANCIAL & OPERATIONAL PERFORMANCE N e t Working Capital 250 233 200 211 mln € 150 100 95 50 0 2010/3 2011/3 2012/3 C APEX 5 4 3, 88 3 mln € 2 1 1, 60 0, 90 0 2010/3 2011/3 2012/3
Slide 39: Dividend
DIVIDEND 250 120% 100% 101% 94% 100% 200 83% 72% 80% 150 60% 100 200 40% 40% 26 % 150 50 107 94 15% 94 14% 20% 8% 10, 5% 9, 9% 13% 12, 25 17, 08 0 2% 0% 2006* 2007* 2008* 2009* 2010* 2011* 2012** Dividend (mln TL) % Dividend Yield (%) * Share closing price as of dividend payment date have been used
Slide 40: Istanbul Stock Exchange & TTRAK Index
100 150 200 250 300 350 400 450 500 50 31.12.2010 31.01.2011 28.02.2011 31.03.2011 IMKB-100 30.04.2011 31.05.2011 İMKB 100 TTRAK 30.06.2011 31.07.2011 31.08.2011 31.12.2010 =100 30.09.2011 31.10.2011 TTF Values 30.11.2011 31.12.2011 31.01.2012 ISTANBUL STOCK EXCHANGE & TTRAK INDEX 29.02.2012 31.03.2
Slide 41: Contact
CONTACT Marco VOTTA Memet KAMBER İlkiz KARAGULLU CEO CFO Investor Relations +90 312 2332001 +90 312 2332003 +90 312 2332502 marcov@turktraktor.com.tr memetk@turktraktor.com.tr ilkizk@turktraktor.com.tr
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: NG
NG
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