43 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, 2016
Slide 1: TÜRKTRAKTÖR Investor Presentation 2015
TÜRKTRAKTÖR INVESTOR PRESENTATION 2015 1
Slide 2: TÜRKTRAKTÖR
TÜRKTRAKTÖR Established in 1954 The oldest continuously manufacturer company of Turkish automotive industry The biggest tractor manufacturer in Turkey Export to more than 130 countries The first R&D center of Turkey in its sector Uninterruptedly market leader for 9 years The widest product range and
Slide 3: Agenda
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 3
Slide 4: Company Profile: Shareholder Structure
COMPANY PROFILE Shareholder Structure Koç Holding A.Ş. 37,5 one of the strongest holdings of 37,5 CNH Turkey possessing a leading role in Koç Holding % Industrial NV different sectors, such as energy, A.Ş. % % automotive, durable consumer goods and finance CNH Industrial NV global leader in the
Slide 5: Company Profile: Quality Certificates
COMPANY PROFILE Quality Certificates ISO 10002 ISO 50001 Energy Customer Satisfaction TS ISO/IEC 27001 Information Security Management System & and Customer ISO 14064 Greenhouse Complaint Management System Certificate Gas Emissions Management Reduction Standard Certificate BS OHSAS 18001 Occupationa
Slide 6: Locations
LOCATIONS Annual Production Capacity 50.000 units of tractors (in 2 shifts) Erenler Plant Ankara Plant Akyurt Warehouse İzmir CE Facility Ostim CE Facility 6
Slide 7: Products
PRODUCTS Manufactured Tractors 48 T480S 50 – 65 TTB * Only for export market 50 – 65 TT4 New / upgraded product 50 – 72 TT 50 - 72 TTJ 55 – 75 56S HP 55 - 75 Utility Light* 65 – 80 TDS 65 – 88 TD4B 65 – 110 TDD 75 – 110 TD Delta 85 – 115 Utility Medium* 112 – 132 TR6 Imported Tractors T4 78 – 97 T5
Slide 8: Products
PRODUCTS Manufactured Tractors 55 – 75 JXC New / upgraded product 55 – 75 Utility Light* *For both local and export markets ** Only for export market HP 65 – 88 JXB 65 – 110 JX 85 – 115 Utility Medium** Imported Tractors Quantum N 78 – 97 Farmall U – 107 – 114 Farmall U Pro HP MAXXUM – 110 – 140 MAX
Slide 9: Products (Agricultural Equipment)
PRODUCTS (Agricultural Equipment) Combine Sales (units) COMBINES LARGE SQUARE SMALL SQUARE ROUND BALERS BALERS BALERS 651 SELF PROPELLED 391 FORAGE NEW HOLLAND SPRAYERS 315 HARVESTERS CORN HEADERS MOWER 2013 2014 2015 OLIVE – GRAPE PEDROTTİ GRAIN HARVESTERS DRIERS CONDITIONERS PNEUMATIC PNEUMATIC PR
Slide 10: Products (Construction Equipment)
PRODUCTS (Construction Equipment) SKID STEER LOADERS COMPACT LINE TRACTOR LOADER BACKHOE MINI EXCAVATORS TELEHANDLERS CRAWLER EXCAVATORS HEAVY LINE WHEEL LOADERS 10
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES Position within CNHI The only design center and the main production plant for New Holland TD range and Case IH JX series tractors in the world The only manufacturing center of Utility Light series tractors and transmissions The only manufacturing and engineering center of CNHI
Slide 12: Agenda
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 12
Slide 13: Global Tractor Market
GLOBAL TRACTOR MARKET (source: systematics; thousand units) North America Europe (3%) China (9%) 236 (3%) 174 (19%) 229 229 159 153 346 282 298 2013 2014 2015 2013 2014 2015 Turkey 2013 2014 2015 India (4%) (19%) 59 67 53 612 587 478 Others Turkey is the 2013 2014 2015 2013 2014 2015 4th (15%) (8%)
Slide 14: Export Penetration
EXPORT PENETRATION Continuously increasing export penetration, Turkey’s biggest and the most diversified tractor exporter 1979 2013 2015 Turkey’s first first export 2014 exporting over 133 tractor export to Japan over thousand of tractors 15 thousand cumulatively of tractors exported in a year 133.4
Slide 15: Agenda
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 15
Slide 16: Agriculture Sector in Turkey
AGRICULTURE SECTOR in TURKEY (source: www.tarim.gov.tr) Turkey's total land area 3 million agricultural holdings Total agricultural land 78 the average land size 6 ha per farm 24 8% million ha Permanent million hectare crop 38% meadows 21,1% 7,1% of total employment Average land size 23%59 54% of to
Slide 17: Agriculture in Turkey
AGRICULTURE in TURKEY (source: www.tarim.gov.tr) Economic size of Turkish agriculture Turkey exported has risen to 7th 1.663 kind of agricultural rank in the products to world and all over the world 1st in Europe Agricultural Export (billion $) 18,7 17,7 15,2 15,9 12,7 2010 2011 2012 2013 2014 17
Slide 18: Legal Arrangements
LEGAL ARRANGEMENTS (source: www.tarim.gov.tr) For preventing the fragmentation of agricultural land “Indivisible Parcel Size” - It prevents the fragmentation of special product lands and marginal agricultural lands to less than 2 hectares, cultivated agricultural lands to less than 0,5 hectare and
Slide 19: Government Support and Subsidies in Turkey
GOVERNMENT SUPPORT and SUBSIDIES in TURKEY (source: www.tarim.gov.tr) 2014 2015* 2016* RESOURCES ALLOCATED TO AGRICULTURE (billion TL) (including Agricultural Loan Interest Support – Ziraat Bank) 14.2 14.7 14.4 Support (billion TL) 2014 2015* 2016* Deficiency Payment Support 2.7 3.1 na Livestock Sup
Slide 20: Agriculture Sector in Turkey
AGRICULTURE SECTOR in TURKEY (source: www.tarim.gov.tr) located at the most favorable climate zone in geographical terms, having the capacity to support the agricultural industry with increasing population and purchasing power Major Exported Products having the potential to produce a variety o
Slide 21: Crop Production in Turkey
CROP PRODUCTION in TURKEY (source: www.tuik.gov.tr) Production (million tons) Barley Production 27% Wheat Production 19% Potato Production 14% 66 59 Rice Production 11% Production for selected goods (million tons) 29 30 17 18 2014 2015 Cereals and Other Crops Vegetables Fruits Lentil Production 5% 2
Slide 22: Agricultural Crop Map of Turkey
AGRICULTURAL CROP MAP of TURKEY (source: www.tarim.gov.tr) Black Sea Marmara Tea Hemp Fruits - Vegetables Nut Rice Sunflower Corn Tobacco Olive Fruits - Vegetables Tobacco Nut Eastern Anatolia Sugar Beet Cereal Legume Apricot Tobacco Sugar Beet Aegean Tobacco Olive Cotton Citrus Southeast Rice Anato
Slide 23: Agenda
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 23
Slide 24: Tractor Park in Turkey
TRACTOR PARK in TURKEY (Source : TURKSTAT) total average age 1.626.938 >25 units of tractors 25-39 years <25 years 544.936 units 879.605 units 33% 54% 40+ years 202.397 units 12% average horse app. mechanical life 20-22 power 70HP years 24
Slide 25: Market & TürkTraktör
MARKET & TÜRKTRAKTÖR For the last 8 years one out of every two tractors have been manufactured by TürkTraktör. New Holland brand is the leader with a market share of 43% * Case IH brand, launched in the domestic market in 2007, has a market share of 4% * The widest product range The widest dealer ne
Slide 26: Tractor Market in Turkey
TRACTOR MARKET in TURKEY (units & market share %) 80.000 60,00% 52,73% 52,00% 50,67% 70.000 50,30% 50,40% 49,40% 48,12% 49,90% 48,40% 47,13% 51,50% 44,91% 60.00042,39% 42,12% 37,70% 40,00% 50.000 40,48% 34,22% 34,49% 40.000 66.775 60.341 59.449 52.286 30.000 50.318 20,00% 42.033 39.571 36.036 34.525
Slide 27: Tractor Market in Turkey
TRACTOR MARKET in TURKEY (Source : TURKSTAT) Turkish Tractor Market (units) 8.472 7.120 2.319 1.743 2.160 1.769 3.608 3.993 2015/2 2016/2 NH + CIH Other Local Manufacturers Import Products Market Share 50,7% 47,1% TürkTraktör maintains its 24,8% 27,4% 24,5% 25,5% leadership for 9 2015/2 2016/2 years
Slide 28: Agenda
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 28
Slide 29: Sales Performance
SALES PERFORMANCE Local Sales Total Sales (units) 2014 2015 47.124 45.893 3% 89% 88% 18% 39.026 14.122 11% 15.866 10% 14.402 1% 1% New Holland Local Case IH Local New Holland + Case IH Import Export Sales 30.027 33.002 2014 2015 24.624 84% 86% 16% 14% 2013 2014 2015 Local Sales Export Sales New Holl
Slide 30: Operational Results
OPERATIONAL RESULTS Total Production (units) 3.698 2013 38.530 19% 2.525 2014 45.823 Export Transmission (units) 3.388 4% 2015 3.813 3.346 47.536 2.596 Transmission New Holland & Case IH tractors 2013 2014 2015 30
Slide 31: Construction Equipment Market in Turkey
CONSTRUCTION EQUIPMENT MARKET in TURKEY (source : IMDER) the fastest growing Shares of construction equipment sales in country within last 11th European countries in 2014 (source : www.cece.eu) 8 biggest market in the world years France Russia (after China & India) 14% 8% Turkey 4% 60% Belgium 4th d
Slide 32: Construction Equipment Market in Turkey
CONSTRUCTION EQUIPMENT MARKET in TURKEY 10.983 10.568 9.899 9.250 9.397 5.256 5.406 4.198 4.917 5.464 5.727 5.052 5.162 4.480 4.435 2011 2012 2013 2014 2015 Heavy Line Compact Line 32
Slide 33: Agenda
Company Profile World Tractor Market Agriculture Sector in Turkey Tractor Market in Turkey Operational Performance Financial Performance 33
Slide 34: Financial Performance
FINANCIAL PERFORMANCE Million Euro (average exchange rate for related period announced by the Central Bank of Turkey) 2013 2014 2015 Revenue 861 937 1.028 Gross Profit 187 168 200 Operating Profit 129 102 121 Profit Before Tax 127 101 100 Net Profit 111 90 85 EBITDA 138 114 138 2015 Income Statement
Slide 35: Financial Performance
FINANCIAL PERFORMANCE 311 € 30% 321 € 34% 616 € 66% 717 € 70% 2014 2015 Local Revenue Export Revenue 21,7% 19,5% 18,0% 16,1% 14,9% 13,4% 12,9% 12,1% 11,7% 10,9% 9,6% 8,3% 2013 2014 2015 Gross Margin EBITDA Margin Operating Margin Net Margin 35
Slide 36: Financial Performance
FINANCIAL PERFORMANCE Million Euro (official exchange rate for related period announced by the Central Bank of Turkey) 2013 2014 2015 Total Assets 509 679 634 Current Assets 370 468 432 Non - Current Assets 139 211 202 Total Liabilities 509 679 634 Short Term Liabilities 131 262 269 Long Term Liabil
Slide 37: Financial Performance: Net Financial Position
FINANCIAL PERFORMANCE Net Financial Position (million euro) 2013 2014 2015 - 138 - 47 - 135 95 71 77 -5 %4 %33 -77 %31 -65 %96 -114 %69 -147 %67 -157 Cash ST Borrowings LT Borrowings 37
Slide 38: Financial Performance: Liquidity Ratios and Capex
FINANCIAL PERFORMANCE Liquidity Ratios 2,8 1,7 1,8 1,6 1,2 1,0 2013 2014 2015 Current Ratio Quick Ratio 83,04 Capex (million Euro) 63,53 30,66 2013 2014 2015 38
Slide 39: Financial Performance: Working Capital
FINANCIAL PERFORMANCE Working Capital (million Euro) 2013 2014 2015 159 139 160 163 150 124 141 155 163 -104 -159 -174 Inventories Trade Receivables (net) Trade Payables (net) 39
Slide 40: Dividend
DIVIDEND According to the JV agreement, the Parties adopted for the Company a “Dividend Policy” that provides, as a matter of principle, for the distribution of dividend to the shareholders in the rate of 60% of the after tax profit. 50 14 00 115% 117% 12 107% 50 10 00 83% 300 300 300 72% 75% 80 50
Slide 41: Borsa Istanbul & TTRAK Index
31.12.2012 31.01.2013 28.02.2013 31.03.2013 30.04.2013 BIST100 31.05.2013 30.06.2013 31.07.2013 31.08.2013 8% 19% 30.09.2013 31.10.2013 30.11.2013 31.12.2013 31.01.2014 BIST 100 28.02.2014 31.03.2014 30.04.2014 31.05.2014 30.06.2014 31.07.2014 31.08.2014 30.09.2014 31.10.2014 30.11.2014 31.12.2014 3
Slide 42: Disclaimer
DISCLAIMER 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 and c
Slide 43: TÜRKTRAKTÖR Investor Relations contacts
TÜRKTRAKTÖR investorrelations@turktraktor.com.tr Marco VOTTA Ahmet CANBEYLI Ilkiz KARAGULLU CEO CFO Investor Relations Manager +90 312 2332001 +90 312 2332003 +90 312 2332502 marcov@turktraktor.com.tr ahmet.canbeyli@turktraktor.com.tr ilkizk@turktraktor.com.tr 43