Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Q1 2022 Earnings Presentation
28 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Apr 22, 2022
Slide 1: TürkTraktör Investor Meeting 22.04.2022
22.04.2022 TURKTRAKTOR at Ne
Slide 2: Agenda
AGENDA BUSINESS RESULTS Tractor Agricultural and Construction Equipment 2022 Expectations Financial Results 2
Slide 3: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Agricultural Sector Rainfall Input Costs & Consumer Trend & Agricultural Support Programs Product Prices Financing Production 3
Slide 4: Rainfall Trend
RAINFALL TREND Cumulative Rainfall Rainfall Analysis 25% increase Comparison with last year (Oct. 21-Mar.22 vs. Oct.20-Mar.21) 3% Increase from the seasonal normal Regional Comparison Oct 21-Mar 22 Oct 20-Mar 21 Normal Between October 2021 - March 2022 cumulative rainfall increased by 25% compared t
Slide 5: Product Prices and Input Cost Development
PRODUCT PRICES AND INPUT COST DEVELOPMENT The increase in product prices was above the inflation rate. Agricultural Input Cost Development According the Agricultural Input Price Index, costs in the Feb Feb 22 vs Feb 21 2022 increased by 81% compared to Feb 2021. The prices indicated an increase betw
Slide 6: Agricultural Support Program in Turkey
AGRICULTURAL SUPPORT PROGRAM IN TURKEY 6
Slide 7: Agricultural Support Program in Turkey
AGRICULTURAL SUPPORT PROGRAM IN TURKEY Agricultural Support Payments The agricultural support payments will be 29.0 billion TL (26% increase) in 2022. Agricultural irrigation support was increased from 9 billion TL to 12.3 billion TL (37% increase) 7
Slide 8: Consumer Finance
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Slide 9: Consumer Finance
CONSUMER FINANCE Interest Rates The subsidy decision for agricultural loans for locally produced tractors (%50) is valid until the end of 2022. Ziraat Bank is in a competitive position with a post-subsidy 18% 17.4% interest rate of 7.3%. 17% 16.2% 15% 14.6% Ziraat Bank loan usage is around 60%. 12%
Slide 10: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Agricultural Sector& Agricultural Input Costs & Consumer Rainfall Trend Support Programs Production Product Prices Financing 10
Slide 11: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Agricultural Sector& Input Costs & Consumer Rainfall Trend Agricultural Support Programs Product Prices Financing Production • After the difficult 9 • According to the • Although Agricultural • In 2022, agricultural • Ziraat continues to months in terms of agricultural p
Slide 12: Turkish Tractor Market & TürkTraktör
TURKISH TRACTOR MARKET & TÜRKTRAKTÖR Turkish Tractor Market (unit) Market Share of TürkTraktör Source: TURKSTAT Source: TURKSTAT Total TürkTraktör 56.3% 54.5% 49.4% 51.2% 42.9% 45.4% !"#$ !"#% !"!" !"!# !"!#&' !"!!&' * Expected Market Market 2021/2 2022/2 Position Position Turkish tractor market dec
Slide 13: Global Tractor Market and Export
GLOBAL TRACTOR MARKET AND EXPORT 13
Slide 14: Global Tractor Market
GLOBAL TRACTOR MARKET Total Tractor Market (thousand unit) Our important export markets grew by 15% in 2021. Our export markets are expected to close the 2022 slightly above 2021. 2022 2020 2021 Forecast Turkey is the world’s 4th largest tractor market according to 2021 Important Export total tracto
Slide 15: Export
EXPORT Tractor Export from Turkey (unit) TürkTraktör’s Export (unit) Source: Tarmakbir ()*+, (-./(.+/*0. 26% increase * Record TürkTraktör is an international player that exports to more than 130 countries. 80% exports are made to North American and European markets. In 2022/3, our export figure rea
Slide 16: Production Status
PRODUCTION STATUS 16
Slide 17: Tractor Production in Turkey & TürkTraktör
TRACTOR PRODUCTION IN TURKEY & TÜRKTRAKTÖR Tractor Production of Turkey (unit) TürkTraktör’s Production (unit) Source: Tarmakbir Source: TURKSTAT ()*+, (-./(.+/*0. 26% decrease TürkTraktör’s Share in Local Production In 2022/3, TürkTraktör produced 11,427 tractors and met 68% 77% of the total produc
Slide 18: Agricultural & Construction Equipment
AGRICULTURAL&CONSTRUCTION EQUIPMENT 18
Slide 19: Agricultural & Construction Equipment
AGRICULTURAL&CONSTRUCTION EQUIPMENT Agricultural Equipment In the first three months of 2022, non-tractor revenue increased by 31% compared to the previous year. Construction Equipment Construction equipment sales were realized in parallel with the same period of the previous year. 1)2+, 345).* 19
Slide 20: 2022 Expectations
2022 EXPECTATIONS Turkish Tractor Industry Volume: Total Market 53,000 - 59,000 unit Local Tractor Sales*: 26,500 - 30,000 unit Tractor Exports: 16,500 - 18,500 unit CAPEX: 450 - 600 million TL *Sales to the dealers included imported tractors 20
Slide 21: Financial Results
FINANCIAL RESULTS 21
Slide 22: 2022 3M Highlights
2021 3M HIGHLIGHTS TL 3,988 M Revenue, TL 723 M Gross Profit, 18.1% TL 186 M Free Cash Flow, +49% YoY +44% YoY TL 326 M YoY decrease • Total tractor volume -15% • Tier 4 emission introduction • Adverse change in working capital supporting • Non-tractor revenue +31% • Export profitability 2022 produc
Slide 23: Income Statement
INCOME STATEMENT (million TL) 2020 2021 2021/3 2022/3 Deği im - Domestic Sales 3.930 7.929 1.952 2.435 %25 - Export Sales 2.313 3.715 732 1.553 %112 Total Sales Revenue 6.243 11.644 2.684 3.998 %49 Gross Pro t 1,308 2,133 502 723 44% 21.0% 18.3% 18.7% 18.1% -0.6 pp Net Operating Income 928 1,573 382
Slide 24: Financial Performance (million TL)
FINANCIAL PERFORMANCE (million TL) Gross Pro t EBITDA 6.)7789.):;* 6.)7789.):;*8<+.=;> EBITDA EBITDA Margin 22.4% 23.2% 19.1% 19.2% 18.7% 18.4% 19.2% 18.1% 15.7% 15.3% 15% 16.9% 18% 13.6% 13.4% 14.3% 16.6% 12.1% PBT Net Pro t 9?( 9?(8<+.=;> Net Pro t Net Pro t Margin 18.8% 17% 15.4% 15.7% 13.1% 12.9
Slide 25: Cash Flow & Debt Maturity Profile
CASH FLOW&DEBT MATURITY PROFILE Cash Flow&Net Cash Change (million TL) 2022 1Q 2021 4Q 1273 1.200 254 572 132 89 186 170 Turnover Days&Working Capital (million TL) Liquidity&Debt Maturity Pro le (million TL & €) 2021 4Q 2022 1Q Turnover Days TL Euro 70 66 25 52 7 23 46 3 25 fi
Slide 26: Net Financial Position (million TL)
NET FINANCIAL POSITION (million TL) Net Financial Position NFP / EBITDA 0.56 0.13 0.21 0.19 -0.01 0.25 -0.40 -0.85 -0.94 -1.74 -2.53 -2.92 -3.28 26
Slide 27: Dividend (million TL)
DIVIDEND (million TL) Total TL 4.6 billion was distributed as dividend to the shareholders between 2004-2022. 115% 117% 109% 107% 100% 101% 94% 94% 91% 89% 91% 87% 83% 72% 75% 68% 54% 40% 26% 11% 16% 13% 15% 14% 8% 10% 10% 7% 10% 8% 7% 6% 8% 6% 5% 7% 8% 2% Dividend Dividend / Net Pro t Dividend Yiel
Slide 28: 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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