Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — TürkTraktör — FY2014 Earnings Presentation
43 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Feb 17, 2015
Slide 1: Türktraktör Analyst Meeting Presentation
TÜRKTRAKTÖR ANALİST TOPLANTISI Analyst Meeting Presentation 17 February 2015
Slide 2: Agenda
AGENDA 1 TÜRKTRAKTÖR AT A GLANCE HIGHLIGHTS IN 2014 2014 YEAR PERFORMANCE • GLOBAL MARKETS AND TÜRKTRAKTÖR PERFORMANCE • LOCAL MARKET AND TÜRKTRAKTÖR PERFORMANCE • SALES FINANCIAL RESULTS
Slide 3: TürkTraktör at a Glance
TürkTraktör at a Glance 2 The oldest continuously manufacturer company of Turkish automotive industry The biggest tractor manufacturer in Turkey Export to more than 130 countries Annual production capacity of 50.000 tractors* together with Ankara and Erenler Plants The first R&D center of
Slide 4: TürkTraktör at a Glance
TürkTraktör at a Glance 3 ISO 9001 Total Quality Management System Certificate ISO 27001 Information Security Management System Certificate ISO 10002 Customer Complaints Management System Certificate – being the first certified company in the sector ISO 50001 Energy Management System Certifi
Slide 5: TürkTraktör at a Glance
TürkTraktör at a Glance 4 Worldwide engineering center and the main production center for New Holland TDD, Case IH JX and Utility Medium series tractors The sole manufacturing center of Utility Light series tractors and transmissions The only manufacturing and engineering center of CNHI for TD
Slide 6: Wide Product Range – Tractor Series Sold to Local Market
Wide Product Range – Tractor Series Sold to Local Market 5 Puma / T7000 & AC T8 Magnum > 140 HP Puma 120-140 HP Maxxum / T6000 CVX TR6 T6 AC T5 Hi-Lo / T5 FARMALL U / Maxxum CVX 110 HP Electro- FARMALL U 105 HP Command PRO JXU T5000 98 HP 95 HP TDD DELTA T4 Quantum 88 HP F/N/V N TDD JX 80 HP 78 HP T
Slide 7: Wide Product Range – Tractor Series Sold to Export Market
Wide Product Range – Tractor Series Sold to Export Market 6 120-140 HP 115 HP TR 6 110 HP 105 HP Utility Utility 98 HP Medium Medium 95 HP 88 HP TDD JX 85 HP (HC*) (HC*) TDD JX 80 HP TDF Straddle Straddle 78 HP (Narrow Orchard) 75 HP 72 HP Utility Utility T3F Light Light 65 HP New Steyr TT (Compact
Slide 8: Export Penetration
Export Penetration 7 Continuously increasingly export penetration, Turkey’s biggest and the most diversified tractor exporter. WHERE AREN’T WE , YET? Afghanistan Bangladesh Benin Burkina Faso Cambodia Guinea Kyrgyzstan Laos Nepal Niger Tajikistan
Slide 9: 2015 Tractor of the Year Award
2015 Tractor of the Year Award 8 TürkTraktör won one of the most prestigious awards in the agricultural sector, Tractor of the Year 2015 - Best of Specialized with the New Holland TTJ series orchard-vineyard tractors manufactured in- house.
Slide 10: Agenda: Highlights in 2014
AGENDA 9 TÜRKTRAKTÖR AT A GLANCE HIGHLIGHTS IN 2014 2014 YEAR PERFORMANCE • GLOBAL MARKETS AND TÜRKTRAKTÖR PERFORMANCE • LOCAL MARKET AND TÜRKTRAKTÖR PERFORMANCE • SALES FINANCIAL RESULTS
Slide 11: Highlights in 2014 – Erenler Plant
Highlights in 2014 – Erenler Plant 10 Opening: 17.06.2014 One of the biggest and the most modern factory in Europe Assembly lines, paint shop and quality control laboratories 68.613 m2 covered area and total 396.443 m2 area 4 moving assembly lines First robotized paint shop in its sector
Slide 12: Highlights in 2014 – Erenler Plant
Highlights in 2014 – Erenler Plant 11 Erenler Plant supports eco-friendly production not only low energy and water consumption but also getting the most out of the sunlight with “green building” concept. Erenler Plant deserved to receive GOLD level of LEED certificate by the USA Green Building Counc
Slide 13: Highlights in 2014 – 1st in Energy Efficiency
Highlights in 2014 – 1st in Energy Efficiency 12 TürkTraktör is rewarded for its energy optimization scheme implemented both in its offices and production centers with the 1st prize in “Energy Efficient Industrial Facility” (EVET) category of the “Energy Efficiency Project in Industry Competition” (
Slide 14: Highlights in 2014 – 1st R&D Center
Highlights in 2014 – 1st R&D Center 13 In the 3rd Private Sector R&D Centers Summit organized by the Ministry of Science, Industry and Technology, TürkTraktör won the first prize in the automotive sector amongst many national R&D Centers.
Slide 15: Agenda: 2014 Year Performance
AGENDA 14 TÜRKTRAKTÖR AT A GLANCE HIGHLIGHTS IN 2014 2014 YEAR PERFORMANCE • GLOBAL MARKETS AND TÜRKTRAKTÖR PERFORMANCE • LOCAL MARKET AND TÜRKTRAKTÖR PERFORMANCE • SALES FINANCIAL RESULTS
Slide 16: World Tractor Market
World Tractor Market (Source : Systematics (thousand units)) 15 2012 2013 2014 India 524 India 612 India 587 China 324 China 346 China 282 N. America 211 N. America 229 N. America 236 Pakistan 64 Brazil 65 TURKEY 59 Brazil 56 TURKEY 53 Brazil 56 TURKEY 49 Pakistan 42 Pakistan 35 Europe 173 Europe 17
Slide 17: Tractor Production in Turkey
Tractor Production in Turkey (Source: TARMAKBİR) 16 64.342 %14 53.982 56.407 18.519 14.408 17.877 +%4 39.574 45.823 38.530 +%19 2012 2013 2014 TürkTraktör Others
Slide 18: Tractor Production in Turkey
Tractor Production in Turkey (Source: TARMAKBİR) 17 TürkTraktör 45.823 TürkTraktör covers 71% of the total 71% production in Turkey where 64.342 tractors were manufactured in 2014. Others 18.519 29% TürkTraktör 15.866 TürkTraktör solely covers 90% of total 90% exportation from Turkey where 17.555 tr
Slide 19: Tractor Market in Turkey – Sales
Tractor Market in Turkey – Sales (Source: TURKSTAT Traffic Registration, 2014) 18 TürkTraktör maintains its leadership by having 49.4% market share. %14 59.459 50.318 52.286 +%12 30.088 24.974 26.958 25.344 25.328 +%16 29.371 2012 2013 2014 TürkTraktör Others
Slide 20: Market in 2014
Market in 2014 19 Agricultural supports reached to 9.5 billion TL in 2014. Total 64.342 tractors manufactured with 14% increase* Total 59.459 tractors sold with 14% increase ** The reasons behind this increase in the market; • High crop prices • Low cost loan availability • Instrument for Pr
Slide 21: TürkTraktör Production Performance - 700.000th Tractor
TürkTraktör Production Performance - 700.000th Tractor 20 Manufacturing its 700.000th tractor in 2014, TürkTraktör manufactured 815 tractors in 1955. 733.391 609.464 Tractor Manufaturing Units (Cumulative) 402.608 120.017 815 1.835 1955 1960 1980 2000 2011 2014
Slide 22: TürkTraktör Production Performance – Production Record
TürkTraktör Production Performance – Production Record 21 45.823 %19 40.630 39.574 38.530 28.348 14.309 2009 2010 2011 2012 2013 2014
Slide 23: TürkTraktör Sales Performance - Tractor
TürkTraktör Sales Performance - Tractor 22 %18 45.893 40.162 39.026 15.866 14.565 +%10 14.402 +%22 30.027 25.597 24.624 2012 2013 2014 Local Sales Export Sales
Slide 24: TürkTraktör Sales Performance – Tractor Sales Record
TürkTraktör Sales Performance – Tractor Sales Record 23 %18 45.893 40.753 40.162 39.026 28.940 15.754 2009 2010 2011 2012 2013 2014
Slide 25: TürkTraktör Sales Performance – Export Record
TürkTraktör Sales Performance – Export Record 24 %10 15.866 14.565 14.402 8.938 9.600 8.808 2009 2010 2011 2012 2013 2014
Slide 26: TürkTraktör Export Performance - 100.000th Exported Tractor
TürkTraktör Export Performance - 100.000th Exported Tractor 25 Starting export business in 2002, TürkTraktör exported its 100.000th tractor in 2014. 113.969 83.701 Export Sales Units (Cumulative) 69.136 41.790 17.020 678 2002 2004 2008 2011 2012 2014
Slide 27: Construction Equipment Sector in Turkey
Construction Equipment Sector in Turkey (Source: İMDER – Monthly Market Data) World’s 11th Current Situation in the market : biggest CE market Contracted by 14% Europe’s 4th Main reasons; biggest CE market Delays in the projects of the big contractors, 6,5 billion $ Difficulty in allowances, s
Slide 28: Construction Equipment Sector in Turkey
Construction Equipment Sector in Turkey (Source: İMDER – Monthly Market Data) 10.568 10.983 %14 9.397 5.256 5.406 -%6 4.917 5.162 5.727 -%22 4.480 2012 2013 2014 Heavy Line Compact Line
Slide 29: Construction Equipment Business
Construction Equipment Business 28 For adding a new dimension to its corporate development TürkTraktör entered the construction equipment market. Construction Equipment Facility IZMIR Opened: September 18, 2014 Total Area: 6,000 m2 Construction Equipment Facility ANKARA Opened: October 30, 2014 To
Slide 30: Combine Sales (units)
Combine Sales (units) 29 651 %40 432 391 2012 2013 2014 The combine demand brought forward in 2013 thus combine market contracted in line with the expectations in 2014.
Slide 31: Agenda: Financial Results
AGENDA 30 TÜRKTRAKTÖR AT A GLANCE HIGHLIGHTS IN 2014 2014 YEAR PERFORMANCE • GLOBAL MARKETS AND TÜRKTRAKTÖR PERFORMANCE • LOCAL MARKET AND TÜRKTRAKTÖR PERFORMANCE • SALES FINANCIAL RESULTS
Slide 32: Total Sales Revenue (million TL)
Total Sales Revenue (million TL) 31 2.723 %25 2.175 934 1.974 +%35 690 611 +%20 1.790 1.363 1.485 2012 2013 2014 Local (Million TL) Export (Million TL)
Slide 33: Profitability (million TL)
Profitability (million TL) 32 500 21,7% 21,0% 480 21,4% 18,0% 460 440 489 472 420 400 422 380 11,0% 2012 2013 2014 Gross profit Gross Margin 360 18,0% 400 13,6% 15,0% 15,9% 16,1% 12,9% 16,0% 350 13,0% 350 14,0% 340 12,1% 300 9,6% 11,0% 12,0% 250 9,0% 330 10,0% 200 7,0% 320 350 8,0% 150 5,0% 6,0% 268
Slide 34: Working Capital (million TL)
Working Capital (million TL) 33 2012 2013 2014 448 470 %5 405 461 363 332 413 436 293 -220 -306 -449 Inventories Trade Receivables (net) Trade Payables (net)
Slide 35: Net Financial Position (million TL)
Net Financial Position (million TL) 34 2012 2013 2014 23 -389 -139 379 209 269 -15 -161 -217 %33 -334 -195 -442 %67 Cash and Cash Equivalents ST Financial Liabilities LT Financial Liabilities
Slide 36: Net Financial Position / EBITDA (million TL)
Net Financial Position / EBITDA (million TL) 35 2012 2013 2014 50 23 0,2 - - -50 0,1 -139 -0,2 -100 -150 -0,4 -0,4 -200 -389 -0,6 -250 -0,8 -300 -1,0 -350 -400 -1,2 -1,2 -450 -1,4 Net Financial Position NFP/EBITDA
Slide 37: Net FX Position / Equity (million TL)
Net FX Position / Equity (million TL) 36 2012 2013 2014 500 14,0 12,0 400 10,0 300 8,0 6,0 200 409 4,0 286 342 2,0 100 -0,8 - - -2,0 -3,9 -4,0 -100 -6,0 -315 -412 -8,0 -200 -414 -10,0 -300 -9,9 -12,0 -14,0 -400 -16,0 -500 -18,0 Total Assets Total Liabilities Net Foreign Currency Liability Position /
Slide 38: Balance Sheet Ratios
Balance Sheet Ratios 37 2,52 2,81 1,79 1,86 1,74 1,20 2012 2013 2014 Quick Ratio Current Ratio
Slide 39: High Profitability Ratios
High Profitability Ratios 38 45% 44% 41% 20% 21% 15% 2012 2013 2014 RoA RoE
Slide 40: Dividend (million TL)
Dividend (million TL) 39 TürkTraktör which paid the total amount of 300 million TL dividend in 2014, is amongst the companies paid highest dividend in BIST. 350 12,0% 9,9% 10,2% 300 10,0% 250 6,6% 8,0% 200 6,0% 150 300 4,0% 100 200 200 50 2,0% 0 0,0% 2012 2013 2014 Dividend Yield
Slide 41: Stock Performance (31.12.2010=100)
31.12.2010 04.02.2011 11.03.2011 15.04.2011 20.05.2011 24.06.2011 29.07.2011 02.09.2011 07.10.2011 11.11.2011 16.12.2011 20.01.2012 24.02.2012 16.02.2015 Closing Price 31.12.2010 Closing Price BİST 100 30.03.2012 04.05.2012 08.06.2012 13.07.2012 17.08.2012 21.09.2012 83,60 TL 23,50 TL 26.10.2012 30.
Slide 42: Disclaimer
Disclaimer 41 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
Slide 43: Question & Answer
TÜRKTRAKTÖR ANALİST TOPLANTISI QUESTION & ANSWER