Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — FY2017 Earnings Presentation
38 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Feb 13, 2018
Slide 1: Analyst Meeting
1 Analyst Meeting February 13th , 2018
Slide 2: TürkTraktör at a Glance
2 TürkTraktör at a Glance The market leader +3000 Owns the Biggest tractor producer successively for employees first Exports to of Turkey and also 11th R&D center in +130 Europe by volume year its industry countries since 1979 64 years of experience The widest product range Annual production and dea
Slide 3: Export Penetration
3 Export Penetration WHERE AREN’T WE, YET… Tajikistan Nepal Guinea Bangladesh Niger Burkina Faso Benin Since 1979, app. 160 thousand of tractors exported Continuously increasing export penetration, Turkey’s biggest and the most diversified tractor exporter Kyrgyzstan has been added to current
Slide 4: Wide Product Range
4 Wide Product Range Tractor Series Sold to Local Market 120-140 HP TR6 110 HP TR5 105 HP JXC 97 HP TT4 TR5 95 HP TD 88 HP DELTA TDD JX 80 HP 78 HP TD4B* JXB 75 HP T 480B TDS 72 HP 56S JXC*** 65 HP TT4** TT TTJ* 55 HP TTB* 50 HP 48 HP T 480S T 480B* LOCAL 4 New Launch New Holland *Speciality Case IH
Slide 5: Wide Product Range
5 Wide Product Range Imported Tractor Series Sold to Local Market Puma / Puma CVX Maxxum Tier 4B T7000 & Optum Magnum Tier 3 & Tier 4A & T7 Tier 4B T7 HD T8 AC** / AC** CVX CVX > 140 HP Tier 4B Maxxum CVX T6 AC** Maxxum Standart T6000 Maxxum Tier 4A / Tier 4A & Tier 4B Tier 4B Tier 4B 120-140 HP T6
Slide 6: Wide Product Range
6 Wide Product Range Tractor Series Sold to Export Market TDF 115 HP 110 HP 105 HP Utility Utility 98 HP Medium Medium 95 HP TDD (HC*) JX (HC*) 88 HP TDF** (Narrow TDD JX 85 HP Orchard) 80 HP Straddle Straddle 78 HP 75 HP 72 HP Utility Utility T3F Light Light 65 HP Utility 1 (Compact Light 55 HP Orc
Slide 7: Highlights of 2017
7 Highlights of 2017 • Bond issuance; each worth 75 million TL issued; first with 3-year term on 07.04.2017, Local Sales (units) Total Sales (units) and then with 2-year term on 26.04.2017. 12% • Being a first in Turkey in its sector, TürkTraktör 7% Finance emerged with the idea to offer 'all financ
Slide 8: Important Developments in 2017
8 Important Developments in 2017 All Financial Solutions Under a Single Roof OCT TürkTraktör Finance 2017 Common in automotive sector but first in agriculture sector It is aimed to enable farmers to have state-of-the art tractors through the alternative financial solution Covers tractor, equip
Slide 9: Market Share Evolution
9 Market Share Evolution (source : TURKSTAT) Continuing to strengthen core business Being the market leader for 19 years of the last 31 years Maintaining this leadership for 11 years in a row New Holland Case IH 52,0% 51,5% 50,3% 50,4% 48,4% 49,9% 49,4% 49,3% 3,0% 3,7% 48,1% 46,5% 2,5% 3,8% 4,3%
Slide 10: Digital Transformation Studies in 2017
10 Digital Transformation Studies in 2017 By integrating digital transformation into all of our processes from production to design, from customer relations to after sales, we ensure that both our company, employees, customers and dealers are more in accord with the new age. Mobile CRM Training vide
Slide 11: Digital Transformation Studies in 2017
11 Digital Transformation Studies in 2017 Mobile Assistant Precision Farming Systems Predictive Maintenance Application Using the precision farming Increase in the efficiency of the A unique mobile platform technologies, especially in large- machines, energy saving and for farmers that provides scal
Slide 12: Tier 4 Engine Production Started
12 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. • Being ready to st
Slide 13: Global Tractor Sales Volume
13 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 14: Local Production & Export
14 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 15: Supports Provided within the scope of Agricultural Policies
15 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 loans & 4,7 billion TL is for
Slide 16: Stable Agricultural Financial Support
16 Stable Agricultural Financial Support (source : www.ziraatbank.com.tr) When the agricultural loans provided by Ziraat Bank evaluated; 40% of the portfolio constitutes of investment loans, 60% constitutes of working capital loans. Agricultural mechanization loans especially the loans for tract
Slide 17: Ziraat Bank Agricultural Loans
17 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 18: The National Energy Efficiency Action Plan
18 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 19: Using Old Combines
19 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 20: Using Tractors Expired Useful Lives
20 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 Increase noise emission damages human health and causes decrease in
Slide 21: 2017 Important Developments
21 2017 Important Developments Import Tax Additional importation tax applied for complete tractors, engines, drivelines, JAN components that are imported from non-EU countries and from the countries that 2017 have no FTA with Turkey. Additional tax rate; • Tractors – 21,0% • Engine for tractors – 16
Slide 22: New Registration of Tractors
22 New Registration of Tractors (units – source : TURKSTAT) 5% 4% 70.205 72.949 66.775 2% 22.547 3% 22.065 21.511 -4% 13.912 11% 15.473 14.486 2% 18.664 3% 19.208 18.209 24% 15.564 1% 15.721 12.569 2015 2016 2017 1st quarter 2nd quarter 3rd quarter 4th quarter
Slide 23: Tractor Market in Turkey
23 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 24: Operational Performance – Production
24 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 25: Operational Performance – Sales
25 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 26: Breakdown of Tractor Sales
26 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 27: Total Sales Units
27 Total Sales Units %7 49.613 46.230 %-5 12.023 12.625 %12 37.590 33.605 12.550 12.269 12.212 11.751 13.157 11.727 12.978 3.580 3.322 9.199 3.165 3.011 3.038 3.219 2.755 2.558 8.970 8.947 6.641 9.047 8.740 10.119 8.508 10.223 20161Q 20162Q 20163Q 20164Q 20171Q 20172Q 20173Q 20174Q 2016 2017 Local E
Slide 28: Total Sales Revenue
28 Total Sales Revenue (mio TL) 22% 4.215 16% 3.443 1.129 974 25% 1.153 3.086 886 938 940 961 1.091 1.009 2.469 680 265 272 280 292 269 262 284 180 861 617 676 500 675 677 819 729 20161Q 20162Q 20163Q 20164Q 20171Q 20172Q 20173Q 20174Q 2016 2017 Local Export
Slide 29: Profitability
29 Profitability (mio TL) 800 23,4% 22,6% -2% 25,0% 700 20,4% 20,2% 21,6% 17,5% 18,2% 17,7% 17,3% 20,0% 600 16,0% 500 15,0% 400 742 731 10,0% 300 200 5,0% 100 181 190 159 213 168 175 184 204 0 0,0% 20161Q 20162Q 20163Q 20164Q 20171Q 20172Q 20173Q 20174Q 2016 2017 Gross Profit Gross Profit Margin
Slide 30: Profitability
30 Profitability (mio TL) 600 -4% 18,0% 16,3% 14,7% 14,9% 14,2% 14,7% 16,0% 500 14,0% 11,6% 11,1% 12,1% 11,9% 11,7% 400 12,0% 10,0% 300 8,0% 512 492 200 6,0% 4,0% 100 126 138 111 138 112 121 123 137 2,0% 0 0,0% 20161Q 20162Q 20163Q 20164Q 20171Q 20172Q 20173Q 20174Q 2016 2017 EBITDA EBITDA Margin
Slide 31: Profitability
31 Profitability (mio TL) 450 -10% 14,0% 400 11,1% 11,5% 11,2% 11,2% 11,3% 12,0% 350 8,9% 9,1% 10,0% 300 8,1% 8,3% 250 7,1% 8,0% 200 388 6,0% 351 150 4,0% 100 2,0% 50 99 108 76 106 88 90 105 68 0 0,0% 20161Q 20162Q 20163Q 20164Q 20171Q 20172Q 20173Q 20174Q 2016 2017 Profit Before Tax Profit Before T
Slide 32: Profitability
32 Profitability (mio TL) 400 -13% 16,0% 14,3% 350 14,0% 300 10,7% 12,0% 10,0% 250 9,1% 9,1% 9,0% 10,0% 7,6% 7,8% 7,6% 200 8,0% 5,8% 370 150 321 6,0% 100 4,0% 134 104 50 80 62 94 83 79 2,0% 55 0 0,0% 20161Q 20162Q 20163Q 20164Q 20171Q 20172Q 20173Q 20174Q 2016 2017 Net Profit Net Profit Margin
Slide 33: Working Capital
33 Working Capital (mio TL) 2015 2016 2017 1.600 21,0% 656 716 441 18,4% 19,0% 1.100 566 17,4% 556 518 15,7% 17,0% 600 654 815 15,0% 476 100 13,0% -552 -494 -400 -725 11,0% -900 Trade Receivables Inventories 9,0% Trade Payables Net Working Capital*/Revenue *The figures are 12 months average.
Slide 34: Net Financial Position
34 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 35: Net Financial Position / EBITDA
35 Net Financial Position / EBITDA 2015 2016 2017 0 0,00 -100 -0,20 -200 -0,40 -429 -300 -0,60 -720 -685 -400 -0,80 a -500 -1,00 -600 -1,03 -1,20 -700 -1,40 -1,40 -1,38 -800 -1,60 Net Financial Position NFP / EBITDA
Slide 36: High Profitability Ratios
36 High Profitability Ratios 62% 50% 39% 17% 13% 12% 2015 2016 2017 RoA RoE *The figures are 12 months average.
Slide 37: 2.1 billion TL dividend
37 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 38: Analyst Meeting
38 Analyst Meeting February 13th , 2018
Türk Traktör ve Ziraat Makineleri A.Ş. — FY2017 Earnings Presentation on 6ix