Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — H1 2022 Earnings Presentation
31 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Aug 2, 2022
Slide 1: TürkTraktör Investor Meeting 02.08.2022
02.08.2022 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 Rainfall Agricultural Sector & Input Costs & Consumer Trend Agricultural Production Product Prices Support Programs Financing 3
Slide 4: Rainfall Trend
RAINFALL TREND Cumulative Rainfall Rainfall Analysis 28% increase Comparison with last year (Oct. 21-Jun.22 vs. Oct.20-Jun.21) 2% Decrease from the seasonal normal Regional Comparison Oct 21-Jun 22 Oct 20-Jun 21 Normal Between October 2021 - June 2022 cumulative rainfall increased by 28% compared to
Slide 5: Turkish Agriculture Sector
TURKISH AGRICULTURE SECTOR 5
Slide 6: Turkish Agriculture Sector
TURKISH AGRICULTURE SECTOR Turkey’s agricultural14. economy in (2021 numbers) Turkey’s agricultural2. economy in (2021 numbers) Share in GDP 5.7% (2022 1Q numbers) Share in Total Employment 16.1% (2022 1Q numbers) the World Europe 12 month average Agricultural Production 2021 – 2022 1. Estimate (mil
Slide 7: 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 May May 22 vs Dec 20 2022 increased by 144% compared to Dec 2020. The prices indicated an increase bet
Slide 8: Agricultural Support Program in Turkey
AGRICULTURAL SUPPORT PROGRAM IN TURKEY 8
Slide 9: Agricultural Support Program in Turkey
AGRICULTURAL SUPPORT PROGRAM IN TURKEY Agricultural Support Payments s e rea in c 0 % 7 The budget of 29.0 billion TL announced for 2022 increased to 39.2 billion TL in total with the additional resources announced at the beginning of July. In addition, the agricultural investment budget increased f
Slide 10: Consumer Finance
CONSUMER FINANCE TiirkTraktér Golecege Hagintat. eA Kay TiirkTraktor SNH
Slide 11: Consumer Finance
CONSUMER FINANCE Interest Rates The subsidy decision for agricultural loans for locally produced tractors (%50) is valid until the end of 2023. 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 more than 60%. 1
Slide 12: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Agricultural Sector & Input Costs & Consumer Rainfall Trend Agricultural Production Product Prices Support Programs Financing 12
Slide 13: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Agricultural Sector & Input Costs & Consumer Rainfall Trend Agricultural Production Product Prices Support Programs Financing • After the difficult 9 • According to the • Although Agricultural • In 2022, with the • Ziraat continues to months in terms of agricultural prod
Slide 14: Turkish Tractor Market & TürkTraktör
TURKISH TRACTOR MARKET & TÜRKTRAKTÖR Turkish Tractor Market (unit) Market Share of TürkTraktör Source: TURKSTAT Source: TURKSTAT Total TürkTraktör 54.9% 49.4% 51.2% 45.4% 46.6% 42.9% !"#$ !"#% !"!" !"!# !"!#&' !"!!&' Market Market 2021/6 2022/6 Position Position Turkish tractor market decrease by 8%
Slide 15: Global Tractor Market and Export
GLOBAL TRACTOR MARKET AND EXPORT 15
Slide 16: Global Tractor Market
GLOBAL TRACTOR MARKET Total Tractor Market (thousand unit) Our important export markets grew by 16% in 2021. Our export markets are expected to close the 2022 similar to 2021. 2022 2020 2021 Forecast Turkey is the world’s 4th largest tractor market according to 2021 Important Export total tractor sa
Slide 17: Export
EXPORT Tractor Export from Turkey (unit) TürkTraktör’s Export (unit) Source: Tarmakbir ()*+, (-./(.+/*0. 9% increase * Record TürkTraktör is an international player that exports to more than 130 countries. 80% exports are made to North American and European markets. Our export figure reached a recor
Slide 18: New Export Products
NEW EXPORT PRODUCTS Investments for a new transmission family were completed this year and production activities were started. Trial production of New Generation Utility Medium tractors, the first product in which the new transmission family is used, has been completed and exports will begin in Augu
Slide 19: Production Status
TiirkTraktor Koc TiirkTraktor SN
Slide 20: Tractor Production in Turkey & TürkTraktör
TRACTOR PRODUCTION IN TURKEY & TÜRKTRAKTÖR Tractor Production of Turkey (unit) TürkTraktör’s Production (unit) Source: Tarmakbir ()*+, (-./(.+/*0. 13% decrease TürkTraktör’s Share in Local Production In 2022/6, TürkTraktör produced 22,155 tractors and met 67% 77% of the total production in Turkey, w
Slide 21: Agricultural & Construction Equipment
AGRICULTURAL&CONSTRUCTION EQUIPMENT 21
Slide 22: Non-Tractor Revenue
NON-TRACTOR REVENUE Non-Tractor Revenue In the first six months of 2022, non-tractor revenue increased by 64% compared to the previous year and its share in total revenue realized as 21%. Construction Equipment Construction equipment sales volumes and revenue increased by 6% and 114% respectively co
Slide 23: 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: 600 - 800 million TL *Sales to the dealers included imported tractors 23
Slide 24: Financial Results
\ a FINANCIAL RESULTS Ne SN
Slide 25: 2022 6M Highlights
2022 6M HIGHLIGHTS TL 8,881 M Revenue, TL 1,634 M Gross Profit, 18.4% TL -192 M Free Cash Flow, +59% YoY +58% YoY TL 857 M YoY decrease • Total tractor volume -15% • Tier 4 emission introduction • Adverse change in working capital supporting • Non-tractor revenue +64%, • Export profitability 2022 pr
Slide 26: Income Statement
INCOME STATEMENT (Million TL) 2020 2021 2021/6 2022/6 Change - Domestic Sales 3,930 7,929 3,929 5,740 46% - Export Sales 2,313 3,715 1,647 3,141 91% Total Sales Revenue 6,243 11,644 5,576 8,881 59% Gross Pro t 1,308 2,133 1,035 1,634 58% 21.0% 18.3% 18.6% 18.4% -0.2 pp Net Operating Income 928 1,573
Slide 27: Financial Performance (million TL)
FINANCIAL PERFORMANCE (million TL) Gross Pro t EBITDA 6.)7789.):;* 6.)7789.):;*8<+.=;> EBITDA EBITDA Margin 19.2% 15.7% 18.7% 15.3% 18.4% 18.6% 15% 14.9% 18.1% 14.3% 16.6% 13.4% PBT Net Pro t 9?( 9?(8<+.=;> Net Pro t Net Pro t Margin 15.7% 13.1% 12.9% 13.5% 13% 13.7% 12% 10% 10.8% 9.9% 9% 9% 27 fi f
Slide 28: Cash Flow & Debt Maturity Profile
CASH FLOW&DEBT MATURITY PROFILE Cash Flow&Net Cash Change (million TL) 2021 4Q 2022 2Q 1,303 1,194 1,200 1,811 301 -192 443 -24 Turnover Days&Working Capital (million TL) Liquidity&Debt Maturity Pro le (million TL & €) 2021 4Q 2022 2Q Turnover Days TL Euro 71 66 26 60 15 23 46 3 28 fi
Slide 29: Net Financial Position (million TL)
NET FINANCIAL POSITION (million TL) Net Financial Position NFP / EBITDA 0.56 0.13 0.21 0.19 0.25 -0.01 -0.40 -0.85 -0.73 -0.94 29
Slide 30: 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 31: 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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