Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — FY2020 Earnings Presentation
37 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Feb 11, 2021
Slide 1: Evaluation of 2020
TiirkTraktir | o/-2 EVALUATION OF 2020
Slide 2: Agenda
AGENDA When Starting 2020 BUSINESS RESULTS TRACTOR CONSTRUCTION EQUIPMENT & AG. EQUIPMENT 2021 EXPECTATIONS FINANCIAL RESULTS
Slide 3: Business Results
BUSINESS RESULTS CONSTRUCTION TRACTOR EQUIPMENT & AG.EQUIPMENT
Slide 4: Tractor
TRACTOR LOCAL MARKET EXPORT PRODUCTION EVALUATION MARKET STATUS
Slide 5: Local Market Sector Dynamics
Local Market Sector Dynamics Agricultural Input Costs Government Consumer Rainfall Production and Product Support Financing Trend Prices
Slide 6: Rainfall Trend
In 2020, rains were 4% below seasonal normal. Rainfall Trend Although the yield was not adversely affected by it. Comparison with the Last Year's Rainfall (October 2019 - September 2020) Cumulative Rainfall (mm) 677 574 Seasonal Normal -18% -4% 553 October 2018 October 2019 September 2019 September
Slide 7: Agricultural Production
Agricultural Production Agricultural production increased by 6% in 2020 compared to the previous year. Agricultural Production 2019-2020 (million ton) 6% Increase 124.1 117.2 69.3 9% Increase 63.8 31.1 31.2 22.3 23.6 Grain and other crops Vegetables Fruit, beverage and spice plants Total Source: TUR
Slide 8: Product Prices and Input Cost Development
Product prices in 2020 was Product Prices and Input Cost Development generally above expectations. According to the Agricultural Input Price Index published by TURKSTAT, costs in the November 2020 increased by 14% compared to the beginning of the year. Agricultural Product Prices Agricultural Input
Slide 9: Government Support
Agricultural support budget for 2021 was 24 billion TL. Government Support Agricultural investment budget was increased by 137% to 12.1 billion TL and 8.5 billion TL of this was allocated to irrigation projects. Agricultural Investment (Billion TL) Agricultural Support (Billion TL) 12.1 24.0 10.1 22
Slide 10: Consumer Financing
The subsidy decision for agricultural loans for locally Consumer Financing produced tractors (50%) is valid until the end of 2022. Although the interest rate of Ziraat bank after the subsidy increased from 4.5% to 8.5%,it is still well below the market. Ziraat Bank loan usage is above 65%. Loan Inte
Slide 11: Local Market Sector Dynamics
Local Market Sector Dynamics Agricultural Input Costs Government Consumer Rainfall Production and Product Support Financing Trend Prices
Slide 12: Overview of 2021 Market Dynamics
Overview of 2021 Market Dynamics With the January rains, it is moving in a more positive direction compared to the autumn. Indicators indicate that yields in agricultural products will progress similarly to 2020. Considering the price increases in the world, the market prices of agricultural product
Slide 13: Local Market Evaluation
Turkish Tractor Market grew by 87% in 2020 YoY. Local Market Evaluation 2021 TIV expectation: 53,000- 59,000 70,205 72,949 2021 Local Tractor Sales Expectation*: 26,000-29,500 66,775 60,341 59,449 While New Holland continues to be the 59,000 50,318 52,286 1st brand in 2020, Case IH has risen to 48,2
Slide 14: Global Tractor Market
Our main export markets grew by an average of 7%. Global Tractor Market Turkey is the world’s 4th largest tractor market according to 2020/11 total tractor sales. In 2021, the world tractor market's size is Total Global Market (Thousand Units) expected to be between 1.6-1.7 million. 2020 2019 Foreca
Slide 15: Export
Export TürkTraktör is an international player which exports to more than 130 countries. 80% of our exports are goes to North America and European markets. 40% 40% 2021 export expectation: 13,500-15,000 Europe North America Our Tractor Export (Unit) 15,207 14,122 14,502 15,000 12,625 12,553 13,500 12
Slide 16: Total Sales Units (Tractors)
Total Sales Units (Tractors) 49,613 47,124 46,230 39,500- 45,893 44,500 12,023 34% Increase 40,753 40,162 39,026 14,122 12,625 15,866 9,600 34,937 32,157 29,602 14,565 14,402 26,110 12,553 9,600 14,502 15,207 20,002 31,153 25,597 24,624 30,027 33,002 33,605 37.590 17,655 10,903 22,384 2010 2011 2012
Slide 17: Tractor Production (Unit)
Tractor Production (Unit) 47,536 48,302 45,823 46,031 51% Increase 40,630 39,574 12,172 38,530 14,187 12,248 16,220 10,141 34,114 34,337 14,567 14,160 14,409 12,523 22,745 36,130 30,489 29,603 33,349 33,783 15,028 25,007 24,370 19,705 21,814 7,717 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Do
Slide 18: Construction Equipment & Ag. Equipment
CONSTRUCTION EQUIPMENT & AG. EQUIPMENT
Slide 19: Domestic Production in Construction Equipment
An Important Player of the Market with We have a wide range of construction equipment "Domestic Production" in Construction products that appeal to different applications in the field Equipment! For the first time, we are domestically producing backhoe loader products of two well-established global
Slide 20: Growth in Agricultural Equipment Sales
The combine market started to recover rapidly in 2020. Growth in Agricultural Equipment Sales In 2020, sales of agricultural equipment other than combines increased by 74% compared to the previous year. Combine Sales (Units) 302 221% Increase 212 66 2018 2019 2020
Slide 21: 2021 TürkTraktör Expectations
2021 TÜRKTRAKTÖR EXPECTATIONS
Slide 22: 2021 Priorities
2021 We aim to maintain our leading position in the domestic market and continue our rapid growth with the CaseIH brand. Exports are expected to rise to 13.5-15 thousand levels. With the support of local backhoe loaders, the construction equipment market will continue to grow rapidly. By speeding up
Slide 23: We Continue to Invest in R&D
We Continue to Invest to R&D Precision Farming Autoguidance Tractors Tier V Transition in Europe Tier IV Transition in Turkey Legislation Affected Effective Date 2020 2021 Products 1 2 3 4 1 2 3 4 TMR* All Models 01.04.2021 37kW<P<56kW 01.04.2021 Emission Level 56kW<P<130kW 01.10.2021 * Europe will
Slide 24: Expectations
Expectations Local Market 59,000 53,000 Our expectations for the year 2021 are as follows: 48,270 Turkish Tractor Industry Volume 53,000- 59,000 units TürkTraktör: Local Tractor Sales* 26,000-29,500 units Export Tractor Exports 13,500-15,000 units 15,000 12,553 13,500 CAPEX 250-320 Mio TL 23,843 202
Slide 25: Financial
@Akoc TuirkTraktir | 4
Slide 26: Income Statement (mio TL)
Income Statement (mio TL) 2018 2019 2020 2020 vs 2019 - Domestic Sales 2,016 1,648 3,930 138% - Export Sales 1,893 2,158 2,313 7% Total Sales Revenue 3,909 3,806 6,243 64% Gross Profit 717 549 1,308 138% 18.3% 14.4% 21.0% 6.6 pp Operating Profit 411 248 928 275% 10.5% 6.5% 14.9% 8.4 pp Profit Before
Slide 27: Total Sales Revenue (mio TL)
Total Sales Revenue (mio TL) 6,243 64% 2,440 2,313 7% 733 3,909 3,806 1,624 1,893 1,191 632 2,158 1,083 922 983 988 818 529 3,930 494 419 1,707 591 596 477 2,016 138% 992 1,648 589 662 569 341 331 387 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 2020 4Q 2018 2019 2020 Local Export Local E
Slide 28: Profitability – Gross Profit (mio TL)
Profitability – Gross Profit (mio TL) 22.4% %23.2 21.0% 17.2% 16.9% 18.0% 18.3% 13.8% 14.2% 55% 14.4% 565 1.308 11.7% 138% 363 717 549 186 201 179 127 140 96 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 2020 4Q 2018 2019 2020 Gross Profit Gross Profit Margin Gross Profit Gross Profit Marg
Slide 29: Profitability – Operating Profit (mio TL)
Profitability – Operating Profit (mio TL) 14.9% %17.9 17.2% 10.5% 438 10.2% 928 9.1% 9.3% 57% 6.5% 7.2% 275% 6.5% 279 411 2.3% 110 248 98 101 60 71 19 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 2020 4Q 2018 2019 2020 Operating Profit Operating Profit Margin Operating Profit Operating Pr
Slide 30: Profitability – EBITDA (mio TL)
Profitability – EBITDA (mio TL) 16.9% 19.1% %19.2 12.7% 13.6% 12.1% 9.8% 1,057 11.8% 468 10.0% 10.4% 51% 183% 311 6.2% 498 145 133 374 102 129 92 51 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 2020 4Q 2018 2019 2020 EBITDA EBITDA Margin EBITDA EBITDA Margin
Slide 31: Profitability – Profit Before Tax (mio TL)
Profitability – Profit Before Tax (mio TL) %15.4 %18.8 6.9% 8.3% 6.1% 14.0% 2.5% 83% 1.5% 459 874 0.6% 6.5% 700% 251 256 2.9% 5 14 66 82 82 24 109 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 2020 4Q 2018 2019 2020 PBT PBT Margin PBT PBT Margin
Slide 32: Profitability – Net Profit (mio TL)
Profitability – Net Profit (mio TL) %17.0 12.3% 12.4% 7.1% 7.7% 6.3% 416 776 2.3% 108% 6.1% 0.9% 1.5% 594% 199 2.9% 240 68 84 77 112 8 22 14 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 2020 4Q 2018 2019 2020 Net Profit Net Profit Margin Net Profit Net Profit Margin
Slide 33: Working Capital (mio TL)
Working Capital (mio TL) %25.0 28.4% 28.8% 24.8% 20.0% 871 1,085 920 823 549 554 672 708 632 10.9% 1,021 1,077 14.0% 652 637 820 645 515 449 538 487 467 490 500 561 483 3.4% 238 6.8% 140 45 -513 -480 -541 -514 -609 -632 -811 -1,083 -1,478 Trade Receivables (net)** Inventories Trade Payables (net) Wo
Slide 34: Net Financial Position (mio TL)
Net Financial Position (mio TL) 1,890 1,412 1,120 0.56 828 747 857 0.13 413 599 617 596 92 -397 -648 -395 -351 -344 -248 -470 -649 -476 -745 -899 -1,068 -1,226 -1,155 -1,360 -1,465 -999 -0.85 -0.94 -976 -1,046 -1,303 -771 -867 -982 -1.74 -996 -757 -2.53 -2.73 -2.92 -3.28 Short Term Borrowings Long T
Slide 35: Cash Flow Table
Cash Flow Table Mio TL 2020 Cash and Cash Equivalents 745 at the Beginning of the Period Operating Profit 928 Depreciation 129 Net Working Capital Change 445 Operating Cash Flow 1,502 Investment Cash Flow (130) Net Proceeds/(repayments) (174) of borrowings Net interest received/(paid) (44) Financial
Slide 36: Dividend
Dividend Total TL 2.5 billion was distributed as dividend to the shareholders between 2004 – 2020. Dividend (mio TL) Dividend / Net Profit Dividend Yield (%) 850 115% 117% 107% 109% 100% 101% 94% 94% 87% 89% 83% 72% 75% 68% 54% 40% 300 300 300 300 26% 250 16% 13% 15% 14% 11% 8% 10% 200 200 10% 8% 7%
Slide 37: Disclaimer
Disclaimer This presentation does contain forward-looking statements that reflect the Company management’s current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable, they may be a
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