Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK

Turk Traktor Ve Ziraat Makineleri A.s — FY2018 Earnings Presentation

39 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Feb 12, 2019

  1. Slide 1: TurkTraktor 2018 Financial Results

    @prkoc TurkTraktor 2018 Financial Results VivhkTakior clebratiny OF YOUN / TiirkTraktér S2

  2. Slide 2: TurkTraktor celebrating 65 years!

    TurkTraktor celebrating 65 years! The company guiding modern agriculture today and in the future As the most deep-rooted and experienced manufacturer of the Turkish tractor market, we always own the country's agriculture and farmers and carry out activities that will shape the future of the sector.

  3. Slide 3: Corporate Structure

    Corporate Structure Wide Product Range for Every Type of Need We offer innovative and technological solutions in many different segments with our orchard and field-type tractors, technological agricultural equipment, construction and agriculture machines that offer superior performance and efficienc

  4. Slide 4: Plants & Facilities

    Plants & Facilities Ankara Plant Ostim - Ankara CE Facility Akyurt - Ankara Warehouse Engine and transmission manufacturing center Opening : 30.10.2014 Opening : 01.04.2010 Opening : 25.06.1954 Total Area : 6.200 m2 Total Area : 20.820 m2 Total Area : 257.325 m2 Erenler Plant izmir CE Facility istan

  5. Slide 5: TurkTraktor at a Glance

    TurkTraktor at a Glance Until Today In 2018 909.000 + ‘Tractors Produced 520.000+ Engines Produced ~ 2500 employees 1 67 .000+ Tractors Exported int wey The widest product range and of Turkey ' eke TiirkTraktor CS 34.000+ Tractors Produced 30.500+ Engines Produced 14.000+ Tractors Exported *Working

  6. Slide 6: Wide Product Range

    Wide Product Range About 10 new farming equipments launched in 2018 @koc * 127HP and 141HP versions of ries were launched. + Designed for the TT4 series, The FL 3.5 Master Model front loader and the latest representative of the economy segment, the T450 $/B series became the new face of orchard and

  7. Slide 7: Wide Product Range / Tractor Series Sold to Local Market

    Wide Product Range / Tractor Series Sold to Local Market 4sHP | | ‘50-72 HP 70-110 HP 110-141HP , 55-75 HP 65-88 HP a ote ve eh , i CPXE) N ° or © a0 * £2 65-72HP = 70-110 HP 105-114 HP. 50-65 HP S0-72HP | Te 55 -75HP ° ry f : < ! Gee es | 65-88 HP 70-110 HP TDD/TOD JX Max Tasosye™ | Tagos* T4g0B* |

  8. Slide 8: Wide Product Range / Imported Tractor Series Sold to Local Market

    Wide Product Range / imported Tractor Series Sold to Local Market 116-145 HP. 116-145 HP 99-114 HP Farmall C Te/T6 AC™* Maxumy Maxxum Tier 4a Tier 4B ae @prkoc 280-380 HP. 140-240 HP ‘ 271-200 HP 280-380 HP 116-145 HP. THAT AC* Optum Cvx Magnum CVX Pun D Tier 4B ee a8 Tier 4B Tier 4B *Heavy Duty **A

  9. Slide 9: Wide Product Range / Tractor Series Sold to Export Market

    Wide Product Range / Tractor Series Sold to Export Market 85-115 HP 85-115 HP) Utility | Utility TD4F* (Nanow | top Light* | Light" Orchard) mm New Holland x *High Clearance mm Case H! “Stage Ill B © ser “The new export models in Utility Light segment with Tier4 engines @kor TiirkTraktér CS

  10. Slide 10: Global Tractor Sales Volume

    Global Tractor Sales Volume North America 6% & Europe AY 2016 2017 2017/1 2018/11 2018/11 vs Ulke Units % Units % Units % Units % 2017/11 = nda 565 40% 656 43% 617 44% 737 51% 19% = North America 233 16% 246 16% 227 16% 241 17% 6% = China 259 18% 198 18% 183 13% | 135 9% 26% = Pakistan 43 3% 6 4% 61

  11. Slide 11: New Registration of Tractors

    New Registration of Tractors (nis- source: TurKstan & : Jan Feb Mar 81Q m2Q m3Q m4Q @nor TiirkTraktér CS Apr -36% 7,064 J May June 2017 July Aug § 2018 Sep Oct Nov Dec

  12. Slide 12: Fertilizer Price Index

    FE RT I LI Z E R PRI CE I NDE X 300 250 200 150 100 2014 2015 2016 2017 2018 Fertilizer 153 187 172 189 274

  13. Slide 13: Precipitation Trend and Yield

    Precipitation Trend and Yield ———— = Porras ‘TR Precipitation Trend, 2018 100 2018 10 20182Q 201830 2018 4Q @ Realized Rainfall (mm) IB Normal Rainfall (mm) @akKer TiirkTraktér 6 The decline in wheat cultivated areas, unexpected rainfall and high input costs despite the low intervention prices decre

  14. Slide 14: Supports Provided within the scope of Agricultural Policies

    Supports Provided within the scope of Agricultural Policies Breakdown of Agricultural Support Budget (mio TL) Agricuttural Supports 2017 2018 % Budget (B) % 2018 vs 2019 (B) Area Based Agricuttural Supports 3,006 3,892 27% 4,322 26 11% - Fuel 700 1,900 13% 2,090 12 10% ~ Fertiizer 805 553 4% 564 3 0

  15. Slide 15: Ziraat Bank Agricultural Loans

    Ziraat Bank Agricultural Loans * In case the tractor at 10 and +10 year: g owned for 5 years is a must) is renewed, the payment terms may be extended for 96 months. * It is obliged that the loan application directly made by the customer. © In case the tractor under 4 years is renewed the loan amount

  16. Slide 16: Highlights of Tractor Market

    Highlights of Tractor Market 1.900.000 Total tractor parks Tractor unit per 1000 hectare @koc 24 Average age of tractor park 540.000 Tractor 35 years and over Equipment unit per Agricultural land per tractor tractor (hectare) re ioe, . Her —~ 5 Cele Ie = Turkey = EU = Turkey = EU 5 10 26 11 TiirkTra

  17. Slide 17: Local Production & Export

    Local Production & Export © TirkTraktér (| Other Manufacturers TuirkTraktor covers 72% of the total pro- duction in Turkey where 47,689 tractors were manufactured in 2018. Other Exporters 1.400 %9 ‘TurkTraktor 14.502 I J %91 © TirkTraktor Mi Other Exporters TurkTrakt6r alone covers 91% of total expo

  18. Slide 18: Market Share Evolution

    Market Share Evolution & I New Holland a Case IH 48 %AQ AB %49 Continuing to strengthen core business Being the market leader Maintaining this leadership for 20 years of the last 32 years for 12 years in a row @akee TiirkTraktér CS *Source TUIK

  19. Slide 19: Network Summary

    Network Summary* e Widely distriouted and close to customer Financially strong ~150 spare parts e Wide customer portfolio (NHand CASE IH) “As of 31.12.2018 @aakog TiirkTraktér CS en

  20. Slide 20: TurkTraktor Finans

    TurkTraktor Finans All transactions are completed at the dealer Covers tractor, equipment location without having and construction equipment need to go to bank businesses branch and obligations such as documents, formalities, etc. existing GY in other loan procedures are minimized Aimed to enable fa

  21. Slide 21: My Tractor is Safe

    My Tractor is Safe Our farmers who purchase both brand new and second hand Traktorlim tractors with “My Tractor is Safe” will be able to receive insurance Giiven d e services via this platform. Geko TiirkTraktér CS cni

  22. Slide 22: Social Responsibility Projects

    Social Responsibility Projects Ferien ‘Mucizeleri Conscious Farmer, Safe Miracles of Sprouts TuirkTraktér Agricultural Agriculture 6200+ students and their Machinery Labs 15.000+ people has taken families has taken 4 cties 330 graduates. safe driving education. gender equality education. @ TisKGAN @

  23. Slide 23: Operational Results

    Operational Results TiirkTraktér CO

  24. Slide 24: Tractor and Engine Production

    Tractor 5% 46,031 48,302 -29% 34,114 2016 2017 2018 Engine 4% 37,038 38,620 -20% 30,914 2016 2017 2018

  25. Slide 25: Breakdown of Tractor Sales

    Breakdown of Tractor Sales Locally Imported Manufactured Tractors Tractors (99 HP – 380 HP) (43 HP – 141 HP) 2% 98% Locally Manufactured Tractors Tractors sold to Export Market Tractors sold to (48 HP – 115 HP) Local Market (43 HP – 141 HP) 46% 54%

  26. Slide 26: Tractor and Combine Sales

    Tractor 46,230 7% 49,613 -35% 12,023 12,625 32,157 14,502 21% 33,605 37,590 17,655 -53% 2016 2017 2018 Combine 4% -8% 316 328 302 2016 2017 2018

  27. Slide 27: Quarterly Tractor Sales, Local and Export

    49,613 -35% 12,023 32,157 14,502 21% 37,590 11,751 13,157 11,727 12,978 10,648 -53% 3,038 2,755 8,773 3,011 3,219 2,828 6,699 6,037 17,655 3,470 8,740 10,119 8,508 10,223 7,820 4,024 4,180 5,303 2,013 2,519 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20183Q 20184Q 2017 2018 Local Export

  28. Slide 28: Quarterly Revenue, Local and Export

    4,215 -7% 3,909 1,129 68% 1,893 3,086 -35% 961 1,091 1,009 1,153 1,048 1,077 876 908 272 280 292 310 426 2,016 284 578 579 677 819 729 861 738 651 298 329 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20183Q 20184Q 2017 2018 Local Export

  29. Slide 29: Gross Profit and Margin

    -2% 731 717 21.1% 17.5% 18.2% 17.7% 18.8% 17.4% 17.3% 18.3% 16.0% 16.4% 168 175 184 204 172 202 185 158 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20183Q 20184Q 2017 2018 Gross Profit Gross Profit Margin

  30. Slide 30: Operating Profit and Margin

    -3% 423 411 13.7% 9.9% 10.5% 10.3% 11.5% 10.5% 9.5% 9.4% 10.0% 7.9% 95 104 106 118 124 120 82 85 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20183Q 20184Q 2017 2018 Operating Profit Operating Profit Margin

  31. Slide 31: EBITDA and EBITDA Margin

    1% 498 492 16.2% 12.1% 11.9% 13.5% 12.1% 11.7% 12.7% 11.6% 11.1% 9.7% 112 121 123 136 144 142 110 102 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20183Q 20184Q 2017 2018 EBITDA EBITDA Margin

  32. Slide 32: Profit Before Tax and Margin

    -27% 351 8.1% 8.9% 9.1% 9.1% 8.3% 256 7.1% 7.9% 6.5% 5.2% 3.7% 88 90 105 86 83 68 55 32 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20183Q 20184Q 2017 2018 Profit Before Tax Profit Before Tax Margin

  33. Slide 33: Net Profit and Margin

    -25% 321 9.0% 8.2% 240 7.6% 7.8% 7.5% 7.6% 5.8% 5.4% 6.1% 3.3% 83 79 104 81 55 56 74 29 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20183Q 20184Q 2017 2018 Net Profit Net Profit Margin

  34. Slide 34: Working Capital

    2017 1Q 2017 2Q 2017 3Q 2017 4Q 2018 1Q 2018 2Q 2018 3Q 2018 4Q 1,106 1,194 842 1,021 849 647 648 654 20.6% 25.0% 955 20.0% 820 16.9% 19.9% 566 1,122 593 535 1,085 472 15.1% 17.6% 16.1% 837 737 769 813 832 832 593 449 -581 -562 -521 -513 -656 -725 -681 -810 Trade Receivables (net)** Inventories Trad

  35. Slide 35: Cash and Borrowings

    2017 1Q 2017 2Q 2017 3Q 2017 4Q 2018 1Q 2018 2Q 2018 3Q 2018 4Q -784 -746 -685 -826 -1,551 -1,360 390 460 501 442 -1,152 -1,400 413 327 92 155 20% -247 20% -253 22% -271 24% -271 15% -182 23% 17% 26% -350 -328 -470 80% 80% 78% 76% 85% -969 -991 -977 -856 -1,063 77% 83% 74% -1,205 -1,549 -1,303 Cash

  36. Slide 36: Net Financial Position

    2017 1Q 2017 2Q 2017 3Q 2017 4Q 2018 1Q 2018 2Q 2018 3Q 2018 4Q -784 -746 -685 -826 -1,152 -1,400 -1,360 -1,551 -1.39 -1.65 -1.62 -1.51 -2.39 -2.77 -2.95 -2.73 Net Financial Position NFP / EBITDA

  37. Slide 37: Dividend (mio TL)

    Dividend (mio TL) Since listed in the stock exchange market, TürkTraktör paid the total amount of TL 2.4 billion dividend between 2004 - 2018. 375 115% 117% 107% 100% 101% 110% 325 94% 300 300 300 300 87% 275 83% 90% 250 94% 72% 75% 225 68% 70% 200 200 54% 175 150 50% 40% 125 107 94 94 26% 30% 75 50

  38. Slide 38: 2019 Expectations

    Our expectations for the year 2019 are as follows. Turkish Tractor Industry Volume 33,000 – 38,000 units TürkTraktör Local Tractor Sales* 15,500 – 18,000 units Tractor Exports 14,000 – 15,000 units CAPEX 200 – 250 Million TL

  39. Slide 39: Thank you!

    Thank you!

Türk Traktör ve Ziraat Makineleri A.Ş. — FY2018 Earnings Presentation on 6ix