Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Q3 2020 Earnings Presentation
34 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Feb 3, 2021
Slide 1: Investor Presentation February 2021
Investor Presentation February 2021 Date of the last update: 03.02.2021
Slide 2: Corporate Structure
Corporate Structure Established in 50,000 The oldest continuously manufacturing company of tractors Turkish automotive industry 1954 annual production capacity* Shareholder Structure Plants & Facilities Koç Holding A,Ş, Founded in 1926, Koç Holding has become not only one of the largest and most suc
Slide 3: TürkTraktör
TürkTraktör Continuously increasing export penetration. POSITION within CNH INDUSTRIAL Turkey’s biggest and the most diversified The only design and main production center of tractor exporter New Holland TD and Case IH JX series tractors in the world The only production center of Utility Light serie
Slide 4: Investment Highlights
Investment Highlights Leading tractor manufacturer with diversified product range Good shareholder returns • The largest tractor producer in • Given priority to maintain Turkey with 50K tractor capacity Sustainable growth and to grow profitability • Tractor market leader for the last • Vertically in
Slide 5: TürkTraktör at a Glance
TürkTraktör at a Glance Tractor Manufacturing Units Local Tractor Sales Units* 33,053 36,648 17,315 10,791 22,213 46,031 48,302 34,114 22,745 34,337 4,072 3,159 2016 2017 2018 2019 2020 2021/1 2016 2017 2018 2019 2020 2021/1 Total Revenue (mio TL) Gross Profit (mio TL) 3,103 3,443 4,215 3,909 3,806
Slide 6: Growth of Shareholder Value
Growth of Shareholder Value Dividend Yield Earnings per Share 4.50 6.75 4.81 6.93 6.01 2.10 2014 2015 2016 2017 2018 2020 2015 2016 2017 2018 2019 2020/9 Dividend / Net Profit Dividend Yield (%) Foreign Ownership in Free Float (%) Commitment to Corporate Governance 74.80% 73.85% 65.21% 59.12% *Separ
Slide 7: Brands & Products
Brands & Products Tractors (43HP-380HP) Construction Equipment Compact Line Agricultural Equipment Tractors (55HP-380HP) Construction Equipment Compact Line Agricultural Equipment Heavy Line Tractors (55HP-65HP) Agricultural Equipment 7
Slide 8: Market Positioning of Brands
Market Positioning of Brands *Market leader for 14 years in a row *Targeting professional * ~42%* market share farmers *The largest dealer network * ~7%* market share *Full territory coverage *Wide customer portfolio *Utilizing New Holland AG network capability in NH compact line products *Heavy lin
Slide 9: Network
Network Network at a Glance KIRKLARELİ BARTIN İSTANBUL SİNOP EDİRNE KASTAMONU TEKİRDAĞ ZONGULDAK ARTVİN ARDAHAN KARABÜK SAMSUN KOCAELİ RİZE DÜZCE TRABZON YALOVA ORDU SAKARYA AMASYA GİRESUN KARS BOLU ÇANKIRI ÇORUM TOKAT ÇANAKKALE BURSA BİLECİK GÜMÜŞHANE BAYBURT IĞDIR KIRIKKALE ERZURUM AĞRI BALIKESİR
Slide 10: Turkey - Agriculture Sector
Turkey - Agriculture Sector *High agricultural population *Low productivity *Stabilized government support to the sector *Higher inputs costs *Giving rise to professional farming *One of the lowest mechanization levels in Europe Turkey - Agricultural Equipment Sector Transformation of agriculture Al
Slide 11: Turkey - Agriculture Sector (source: World Bank & TURKSTAT)
Turkey - Agriculture Sector (source : World Bank & TURKSTAT) Turkey’s Agriculture Sector with Numbers Turkey’s agricultural economy in the world (2019 numbers) Turkey’s agricultural economy in Europe (2019 numbers) share of the agricultural industry over the GDP (2020 3Q)* share in the total employm
Slide 12: Turkey - Agriculture Sector (source: www.sbb.gov.tr)
Turkey - Agriculture Sector (source : www.sbb.gov.tr) Government Support in Turkey (billion TL) It has been announced that the government has allocated for agriculture support in 2021. 12
Slide 13: Supports Provided within the scope of Agricultural Policies
Supports Provided within the scope of Agricultural Policies (source: www.sbb.gov.tr) Breakdown of resources allocated to agriculture in 2021 budget has been announced as 24.0 billion TL (9% increase) for agricultural support, 12.1 billion TL (137% increase) for investment loans and 8.3 billion TL (3
Slide 14: Ziraat Bank Agricultural Loans
Ziraat Bank Agricultural Loans Tractor Loan - Credit limit 250,000 TL FEB Interests are Subsided at 25% for the Interests are Subsided at 50% up to 2018 75,000 TL Loan remaining amount above 75,000 TL Loan (was 50,000 TL before Feb 2018 ) (was 50,000 TL before Feb 2018 ) • Ziraat Bank increased its
Slide 15: TürkTraktör Finance - All Financial Solutions Under a Single Roof
TürkTraktör Finance - All Financial Solutions Under a Single Roof • First in Turkish agriculture sector • Aimed to enable farmers to have new tractors through the alternative financial solution and to support the increase of mechanization and modernization of agriculture • Covers tractor, equipment
Slide 16: Highlights of Tractor Market
Highlights of Tractor Market (source : TARMAKBİR) Average working time of Mechanical life Ratio of the a tractor of a tractor Tractors older tractors >24 (hours/year) (hours) than 35 years years Average Tractor Average Farm Size(Ha) Power (HP) Turkey EU Turkey EU 7.6 16.6 65+ 100+ 16
Slide 17: Global Tractor Market
Global Tractor Market (thousand unit) (Source: Systematics) North America South America* Europe Turkey was the 4th biggest tractor market in 262 270 249 288 147 153 137 130 the world in the 68 57 53 53 first eleven months 2018 2019 2019/11 2020/11 2018 2019 2019/11 2020/11 2018 2019 2019/11 2020/11
Slide 18: Turkish Tractor Market
Turkish Tractor Market Tractor Production (units) Market Share of TürkTraktör Source : Tarmakbir Source : TURKSTAT 72,032 66,615 66,915 48% 49% 49% 47% 45% 48,302 50,417 43% 47,689 47,536 46,031 2015 2016 2017 2018 2019 2020 29,539 34,114 34,337 22,745 19,079 20,884 23,730 13,575 16,080 6,794 2015 2
Slide 19: Turkish Tractor Market
Turkish Tractor Market Turkish Tractor Market (units) Tractor Park in Turkey (mio units) Source : TURKSTAT Source : TURKSTAT 66,775 70,205 72,949 48,044 25,839 48,270 1.63 1.69 1.76 1.84 1.88 1.91 1.96 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Turkish Tractor Market (units) Tr
Slide 20: Sales of TürkTraktör
Sales of TürkTraktör Tractor Sales (units) 49,613 12,203 34,937 *Domestic tractor sales increased by 105% in 2020. 32,157 26,110 12,553 *In 2020 export tractor sales decreased by 17% 14,502 comparing to 2019. 15,207 37,590* 17,655* 22,384* 10,903* 2017 2018 2019 2020 Combine Sales (units) Local Expo
Slide 21: Operational Results
TiirkTraktor COS Operational Results
Slide 22: Income Statement
Income Statement (mio TL) 2018 2019 ∆ 2019/9 2020/9 ∆ - Domestic Sales 2,016 1,648 -18% 1,059 2,223 110% - Export Sales 1,893 2,158 -14% 1,664 1,580 -5% Total Sales Revenue 3,909 3,806 -3% 2,723 3,803 40% Gross Profit 717 549 -23% 363 743 105% Net Operating Income 411 248 -40% 150 490 228% Profit Be
Slide 23: Profitability
Profitability 22.4% 21.1% 18.8% 18.0% 17.4% 17.2% 16.9% 16.4% 13.8% 14.2% 363 11.7% 202 185 186 201 172 158 127 140 96 179 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q Gross Profit Gross Profit Margin 23
Slide 24: Profitability
Profitability 19.1% 16.2% 13.5% 13.6% 12.1% 11.9% 12.1% 311 9.7% 10.0% 10.4% 6.2% 144 142 129 145 133 102 110 92 102 51 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q EBITDA EBITDA Margin 24
Slide 25: Profitability
Profitability 12.3% 8.2% 7.5% 7.7% 7.1% 6.3% 199 5.4% 3.3% 2.3% 84 77 1.5% 68 56 0.9% 81 29 74 22 8 14 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q Net Profit Net Profit Margin 25
Slide 26: Profitability
Profitability (%) 2018 2019 ∆ 2019/9 2020/9 ∆ Gross Profit Margin 18.3 14.4 -3.9 pp 13.3 19.5 6.2 pp Operating Profit Margin 10.5 6.5 -4.0 pp 5.5 12.9 7.4 pp Net Profit Margin 6.1 2.9 -3.2 pp 1.6 9.5 7.9 pp EBITDA Margin 12.7 9.8 -2.9 pp 9.0 15.5 6.5 pp Net Gross Operating Margin EBITDA Gross Operat
Slide 27: Gross Profit to EBITDA Flow (mio TL)
Gross Profit to EBITDA Flow (mio TL) as of 30.09.2020 253 99 75 743 55 589 490 32 415 360 Gross Opex Operating Other & Profit Tax Income Net Income Depreciation EBITDA Profit Income Financial Before Expenses Tax 27
Slide 28: Debt Profile & Financial Ratios
Debt Profile & Financial Ratios (mio TL) 2018 2019 ∆ 2019/9 2020/9 ∆ - Cash & Cash Equivalents 413 747 81% 617 1,412 129% - Total Financial Debt 1,773 1,396 -21% 1,516 1,320 -13% Net Financial Position (1,360) (649) -52% (899) 92 -110% Current Ratio 2.0 1.8 -2 pp 1.4 1.7 3 pp Quick Ratio 1.0 1.2 2 p
Slide 29: Net Debt/ EBITDA
Net Debt/ EBITDA 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 92 0.13 -395 -476 -649 -899 -1,153 -1,155 -0.85 -0.94 -1,400 -1,360 -1,465 -1,550 -1.74 -2.77 -2.39 -2.53 -2.95 -2.73 -2.92 -3.28 Net Financial Position NFP / EBITDA 29
Slide 30: Working Capital (mio TL)
Working Capital (mio TL) 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2020 1Q 2020 2Q 2020 3Q 2000 1,106 1,194 842 1,021 1,077 1500 955 28.4% 820 645 140 820 1,122 490 238 483 1000 28.8% 20.0% 25.0% 24.8% 549 554 708 20.6% 920 823 15.1% 16.9% 1,085 672 632 10.9% 500 14.0% 832 832
Slide 31: Dividend Payments
Dividend Payments Total TL 2.5 billion was distributed as dividend to the shareholders between 2004 – 2020. Dividend (mio TL) Dividend / Net Profit Dividend Yield (%) 31
Slide 32: Expectations
Expectations Our expectations for the year 2020 are as follows.* Turkish Tractor Industry Volume 46,000 – 49,000 units TürkTraktör Local Tractor Sales** 22,000 – 23,500 units Tractor Exports 11,500 – 12,500 units CAPEX 200 – 240 million TL ** Sales to the dealers included imported tractors *The mark
Slide 33: 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
Slide 34: Investor Relations Contact
Investor Relations Contact Ahmet DİNÇ Sıla AKÇAY Investor Relations Team Leader Investor Relations Leader Specialist +90 312 2332502 +90 312 2332504 Ahmet.Dinc@turktraktor.com.tr Sila.Akcay@turktraktor.com.tr investorrelations@turktraktor.com.tr
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