Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — H1 2021 Earnings Presentation
34 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, August 2021
Slide 1: Analyst Presentation
Gpkoc > @ ANALYST PRESENTATION TiirkTraktér
Slide 2: Agenda
AGENDA ‘O) Business Results © Tractor © Agricultural and Construction Equipment © 2021 Expectations ‘O) Financial Results Gkog TiirkTraktor sn
Slide 3: Business Results
@Kog BUSINESS RESULTS AGRICULTURAL EQUIPMENT& CONSTRUCTION EQUIPMENT TRACTOR TiirkTraktér
Slide 4: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS “Prices Gkog TiirkTraktér sn
Slide 5: 3 471 347 371 326 317 265
5 705 619 636 625 584 535 555 545 572 524 500 516 465 481 473 471 347 371 326 317 265
Slide 6: Kor TiirkTraktir oi
Kor TiirkTraktir oi
Slide 7: Turkish Agriculture Sector
TURKISH AGRICULTURE SECTOR Turkey’s Turkey’s Share in % share in the 1) agricultural . | agricultural : GDP total 0 ECONOMY IN (2020 numbers) ECONOMY I (520 numbers) (2021 10 numbers) ae ct (2021 an numbers) the World Europe 12 Month Average Agricultural Production 2020-2021 1. forecast (million ton
Slide 8: May vs May, Dec vs May
8 May 20 vs May 21 Dec 20 vs May 21
Slide 9: Emission Transition
EMISSION TRANSITION ( ) . Affected Current Validity 2021 2022 Affected Product Regulation pemianrs Date ar 2 4 TMR* All Models 01.07.2021 (OM) | SOHP<P<75HP 01.07.2021 WOW Tractor Emission (Tier 4) 4 75HP<P<150 HP 01.10.2021 W Emission (Tier 5) | All Models 01.01.2023 ) | Combine Emission (Tier 5) |
Slide 10: Agricultural Support Programs in Turkey
AGRICULTURAL SUPPORT PROGRAMS IN TURKEY . G~akor TiirkTraktér
Slide 11: Agricultural Support Programs in Turkey
AGRICULTURAL SUPPORT PROGRAMS IN TURKEY * Agricultural Support Payments 9 24.0 cnc A 22.0 17.0 14.5 mG 12.8 : if - 2015 2016 2017 2018 2019 2020 2021 Budget The agricultural support budget for 2021 is announced as 24 billion TL. The Investment Budget was increased by 137% to 12.1 billion TL, of whic
Slide 12: Agricultural Support Programs in Turkey
AGRICULTURAL SUPPORT PROGRAMS IN TURKEY ” Breakdown of Agricultural Support Payments Direct Agricultural Support 2018 2019 2020 % 20218 = % oie ee 8 Area Based Agricultural Supports 3,852 4,439 5,287 24.1 5,199 21.7 -1.7% - Fuel 1,900 2,390 2,901 13.2 2,724 11.4 -6.1% - Fertilizer 553 566 840 3.8 78
Slide 13: TürkTraktör
13 TiirkTraktir
Slide 14: Agricultural Loans
AGRICULTURAL LOANS * Interest Rates The subsidy decision for agricultural loans for locally 4 ¥ Ziraat Bankasi produced tractors (50%) is valid until the end of 2022. 18% 17.4% 17% Although the interest rate of Ziraat bank after the subsidy increased from 4.5% to 8.5%, it is still well below the mar
Slide 15: Local Market Sector Dynamics
In October 2020 — June 2021 period, cumulative rainfall decreases 23% compared to same period last year. GKoc LOCAL MARKET SECTOR DYNAMICS ¢ According to the 1st crop production forecast announced by TURKSTAT, crop production is only expected to be 1.4 % lower than last year. ¢ Although Agricultural
Slide 16: Turkish Tractor Market and TürkTraktör's Position
TURKISH TRACTOR MARKET AND TURKTRAKTOR’S POSITION i Turkish Tractor Market (unit) (@) Market Share of TiirkTraktor (Source: Turkstat) a Total na eo COC=~S~S~S~S* m TurkTraktor N g © a4 © @ - 2017 2019 2020 2020/6 2021/6 2017 2018 2019 2020 2020/6 2021/6 2020/6 | Position at the Market] 2021/6 |Posit
Slide 17: Global Tractor Market and Export
GLOBAL TRACTOR MARKET AND EXPORT TiirkTraktér
Slide 18: Global Tractor Market
Total Global Market (thousand unit) GLOBAL TRACTOR MARKET - 2021 | 2020 | 2021 om 2019 | 2020 Forecast} May | May Important Export Markets 504 | 535 | 629 195 | 257 HM North America | 270 | 316 | 375 | 117 | 149 Europe 153 | 148 | 165 54 | 70 Other Bisel 71 89 24 | 38 © india 694 | 807 | 858 | 219 |
Slide 19: Export
EXPORT 8 Tractor Export from Turkey (unit) “> TiirkTraktor’s __ <> _TiirkTraktor’s Export (unit) ‘Source: Tarmakbir =Total 14,502 15,207 TurkTraktor is an international player that exports to more than 130 countries. 80% of exports are made to North American and European markets. In the first six mo
Slide 20: Sales and Production Status
SALES AND PRODUCTION STATUS zs @@koe TiirkTraktor
Slide 21: Tractor Production in Turkey
TRACTOR PRODUCTION IN TURKEY * Tractor Production of Turkey (unit) © TurkTraktor’s Production (unit) ‘Source: Tarmakbir =Total 48,302 wm TirkTraktor 34,114 34,337 i=7) 9 @ 2. B 22,745 SPB 2 i i 282 =oa |G 2 12,357 a LE ee | N N 2017 2018 2019 2020 2020/6 2021/6 2017 2018 2019 2020 2020/6 2021/6 Tiir
Slide 22: Total Tractor Sales of TürkTraktör
TOTAL TRACTOR SALES OF TURKTRAKTOR rok Tractor Sales (unit) © Import mLocal m Export OTotal 34,937 22,213 elo ena g 17,636 12,553 7,298 5 796 7,577 171 28 260 2017 2018 2019 2020 2020/6 2021/6 In the first six months of 2021, total tractor sales increased by 94% compared to last year. In the first s
Slide 23: Construction and Agricultural Equipment
CONSTRUCTION AND AGRICULTURAL EQUIPMENT = Mee ial faa ible bball dad i i Lda ey bli ey A lil Tare aOR ee RN ee vee Cee re Fe eee exon / ”‘TiirkTraktir oni
Slide 24: Construction and Agricultural Equipment
CONSTRUCTION AND AGRICULTURAL EQUIPMENT “ Son. CE Sales (unit) )> In the first six months of 2021, local construction equipment sales increased by 374% compared to (185 ) = Local = Import © Total last year. inf gt 166 In the first six months of 2021, sales of imported construction equipment increase
Slide 25: 2021 Expectations
2021 EXPECTATIONS * Tractor Market > turkish Tractor industry Volume : 58,000 — 64,000 unit > Local Tractor Sales*: 29,000 — 32,500 unit ie ee } Tractor Exports : 14,250 — 15,750 unit TiirkTraktOr > carex: 250 - 320 million TL * Sales to the dealers included imported tractors GA@kag TiirkTraktér oni
Slide 26: Financial Results
@Kog FINANCIAL RESULTS TiirkTraktér
Slide 27: *Including Import Tractors
27 • • • • • • • • • • • • • • • • • • • • • • • • • *Including Import Tractors
Slide 28: Income Statement
(million TL) - Domestic Sales - Export Sales Total Sales Revenue Gross Profit Net Operating Income Profit Before Tax Net Income EBITDA @kKog INCOME STATEMENT 2019 1,648 2,158 3,806 549 14.4% 248 6.5% 109 29% 112 29% 374 9.8% 2020 3,930 2,313 6,243 1,308 21.0% 928 14.9% 874 14.0% 776 12.4% 1,057 16.9
Slide 29: Financial Performance
FINANCIAL PERFORMANCE (nition 1) = Gross Profit ™ Gross Profit — Gross Profit Margin 565 533 202010 2020 20 2020 30 2020 40 2021 10 2021 20 PBT mm PBT —PBT Margin 459 421 82 82 EBITDA mEBITDA —EBITDA Margin 19.1% 202010 2020 20 2020 30 2020 40 2021 10 2021 20 Net Profit = Net Profit —=Net Profit Mar
Slide 30: Cash Flow & Debt Maturity Profile
CASH FLOW & DEBT MATURITY PROFILE Cash Flow & Net Cash Change (mitiion 11) 30 Le tt EBITDA Chg in Working Capital Capex Free Cash Flow Interest and Tax Loan Payment Dividend Net Cash Change Payments Rolling Turnover Days & Working Capital (mition 1) Liquidity & Debt Maturity Profile (mition trzeuro)
Slide 31: Net Financial Position
NET FINANCIAL POSITION (nition 71) = Net Financial Position -NFP / EBITDA -1,465 201910 201920» 201930) 201940» 202010 »= 202020» 202030» 202040 »= 202110 +2021 20 @AKor TiirkTraktor
Slide 32: Working Capital
WORKING CAPITAL (nition 1) “ mTrade Receivables (net)* mlnventories Trade Payables (net) sWorking Capital Working Capital**/Revenue 28.4% 4.8% 2019 10 2019 20 2019 30 2019 40 2020 10 2020 20 2020 30 2020 40 2021 10 2021 20 * 12 Month Average** Excluding Long-Term Receivables Crt TiirkTraktér oni
Slide 33: Dividend
DIVIDEND (nition 71) * Total TL 3.4 billion was distributed as dividend to the shareholders between 2004 — 2021. = Dividend (million TL) Dividend / Net Profit -Dividend Yield (%) 950 115% 117% 87% 107 100 ea | | | cn oon 2006 2007 2008 2009 ono 2011 2012) 2013, 2014) «2015-2016 «2017, «2018 §= 20192
Slide 34: 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
Türk Traktör ve Ziraat Makineleri A.Ş. — H1 2021 Earnings Presentation on 6ix