Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — H1 2018 Earnings Presentation
32 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Aug 7, 2018
Slide 1: Analyst Meeting
1 Analyst Meeting August 7th , 2018
Slide 2: TürkTraktör at a Glance
2 TürkTraktör at a Glance Owns the ~3000 first Biggest tractor producer The market leader employees R&D center in of Turkey and also 11 its industry Exports to Europe by volume years in a row in Turkey 130+ countries since 1979 64 years of experience The widest product range Annual production and de
Slide 3: Export Penetration
3 Export Penetration WHERE AREN’T WE, YET… Tajikistan Nepal Guinea Bangladesh Niger Burkina Faso Benin Since 1979, app. 160 thousand of tractors exported Continuously increasing export business, Turkey’s biggest and the most diversified tractor exporter There are only 7 agricultural markets wh
Slide 4: Wide Product Range
4 Wide Product Range Tractor Series Sold to Local Market 120-140 HP TR6 110 HP TR5 105 HP 97 HP 95 HP TD DELTA 88 HP TDD** JX** 80 HP 78 HP TD4B* JXB 75 HP TDS 72 HP 56S JXC** 65 HP TT4*** TT TTJ* 55 HP TTB* 50 HP 48 HP T 480S T 480B* LOCAL New Holland *Specialty Case IH **Models with front-loader *
Slide 5: Wide Product Range
5 Wide Product Range Imported Tractor Series Sold to Local Market Puma / Puma CVX Maxxum Tier 4B T7000 & Optum Magnum Tier 3 & Tier 4A & T7 Tier 4B T7 HD T8 AC** / AC** CVX CVX > 140 HP Tier 4B Maxxum CVX T6 AC** Maxxum Standart T6000 Maxxum Tier 4A / Tier 4A & Tier 4B Tier 4B Tier 4B 120-140 HP T6
Slide 6: Wide Product Range
6 Wide Product Range Tractor Series Sold to Export Market 115 HP 110 HP 105 HP Utility Utility 98 HP Medium Medium 95 HP TDD (HC*) JX (HC*) 88 HP TDF** (Narrow TDD JX 85 HP Orchard) 80 HP Straddle Straddle 78 HP 75 HP 72 HP Utility Utility T3F Light Light 65 HP Utility (Compact Light 55 HP Orchard)
Slide 7: Global Tractor Sales Volume
7 Global Tractor Sales Volume (source : Systematics, thousand units) Pakistan 17% North America Europe China -8% -5% -25% India TURKEY 31% -18% In thousand 2016 2017 2017/5 2018/5 2018/5 vs units Units % Units % Units % Units % 2017/5 India 565 40% 656 43% 230 38% 301 46% 31% North America 233 16% 2
Slide 8: New Registration of Tractors
8 New Registration of Tractors (units – source : TURKSTAT) -13% -24% -36% -16% 7.064 10% -42% 6.784 6.777 5.891 5.360 5.171 4.967 4.535 4.355 4.164 3.977 4% 72.949 3.128 70.205 2% 22.547 22.065 January February March April May June 2017 2018 13.912 11% 15.473 34.929 -22% 27.244 18.664 3% 19.208 19.2
Slide 9: Supports Provided within the scope of Agricultural Policies
9 Supports Provided within the scope of Agricultural Policies Resources allocated to agriculture and in 2018 budget has been announced as 29,6 billion TL (of which 14,8 billion TL is for agricultural support & 10,1 billion TL is for investment loans & 4,7 billion TL is for agricultural loans). Break
Slide 10: Ziraat Bank Agricultural Loans
10 Ziraat Bank Agricultural Loans Tractor Loan - Credit limit 250.000 TL JAN 2017 Subsidy level 50% Subsidy level 25% for the remaining up to 50.000 TL (same as 2016) amount of the bank loan of bank loan above 50.000 TL (same as 2016) • In case the tractor at 10 and +10 years (being owned for 5 year
Slide 11: Market Share Evolution
11 Market Share Evolution (source : TURKSTAT) Continuing to strengthen core business Being the market leader for 19 years of the last 31 years Maintaining this leadership for 11 years in a row New Holland Case IH 51,9% 51,5% 50,3% 50,4% 48,4% 49,4% 48,1% 49,3% 3,0% 3,7% 3,7% 46,5% 45,8% 4,3% 4,9
Slide 12: Tractor Market in Turkey
12 Tractor Market in Turkey (units) (source : TURKSTAT) 2017/6 – Total 34.929 units tractor 2018/6 – Total 27.244 units tractor TürkTraktör TürkTraktör Biggest Competitor Biggest Competitor 12.480 18.142 4.019 2.479 45.8% 51.9% 11.5% 9.1% Other Other Manufacturers Manufacturers 4.806 5.410 13.8% 19.
Slide 13: Local Production & Export
13 Local Production & Export (source : TARMAKBİR) Local Production in 2018/6 (units) Exportation in 2018/6 (units) Other Other Exporters TürkTraktör Manufacturers TürkTraktör 616 6.298 9.455 23.221 9% 91% 29% 71% TürkTraktör covers 71% of the total TürkTraktör alone covers 91% of total production in
Slide 14: Network Summary
14 Network Summary 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
Slide 15: TürkTraktör Finance - All Financial Solutions Under a Single Roof
15 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, equipme
Slide 16: Awards and Developments
16 Awards and Developments • Held by Ankara Chamber of Commerce (ATO), TürkTraktör received “Best of Ankara Award” by taking its place among the Ankara Companies with the Most Export Volume and listed in ISO 500 with the highest net income. • TürkTraktör got 4 awards by Ankara Chamber of Industry 01
Slide 17: Operational Performance – Production
17 Operational Performance – Production (units) Tractor 5% 46.031 48.302 2% 22.768 23.221 2016 2017 20171H 20181H Engine 4% 37.038 38.620 12% 17.638 19.733 2016 2017 20171H 20181H
Slide 18: Breakdown of Tractor Sales
18 Breakdown of Tractor Sales Imported Total Sales Tractors in 20181H (78 HP – 380 HP) 19.421 Locally 1% Manufactured tractors Tractors (48 HP – 140 HP) 99% Locally Manufactured Tractors Tractors sold to Export Market Tractors sold to (48 HP – 115 HP) Local Market (48 HP – 140 HP) 33% 67%
Slide 19: Operational Performance – Sales
19 Operational Performance – Sales (units) 7% Tractor Export Sales Local Sales 49.613 46.230 12.023 -5% 12.625 -22% 24.908 12% 6.049 19.421 33.605 37.590 6.298 4% 18.859 13.123 -30% 2016 2017 20171H 20181H Combine 4% 15% 316 328 224 258 2016 2017 20171H 20181H
Slide 20: Total Sales Units
20 Total Sales Units -22% 24.908 6.049 19.421 13.157 12.978 6.298 4% 11.751 11.727 10.648 3.038 2.755 8.773 3.011 3.219 2.828 18.859 3.470 13.123 -30% 8.740 10.119 8.508 10.223 7.820 5.303 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20171H 20181H Local Export
Slide 21: Total Sales Revenue
21 Total Sales Revenue (mio TL) 4% 2.125 2.052 556 736 32% 1.091 1.009 1.153 1.048 1.077 961 292 272 280 310 284 426 1.496 1.389 -7% 819 729 861 738 677 651 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20171H 20181H Local Export
Slide 22: Profitability
22 Profitability (mio TL) 600 40,0% 35,0% 500 9% 30,0% 400 25,0% 300 17,5% 18,2% 17,7% 18,8% 20,0% 16,0% 16,4% 16,7% 17,6% 15,0% 200 343 374 10,0% 100 168 175 184 204 172 202 5,0% 0 0,0% 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20171H 20181H Gross Profit Gross Profit Margin
Slide 23: Profitability
23 Profitability (mio TL) 400 18,0% 350 3% 16,0% 300 14,0% 11,5% 12,0% 250 9,9% 10,5% 10,3% 9,5% 9,7% 9,7% 10,0% 200 7,9% 8,0% 150 6,0% 100 199 206 4,0% 50 95 104 106 119 124 82 2,0% 0 0,0% 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20171H 20181H Operating Profit Operating Profit Margin
Slide 24: Profitability
24 Profitability (mio TL) 300 6% 20,0% 250 200 13,4% 15,0% 11,6% 11,1% 12,1% 11,9% 11,3% 11,6% 150 9,7% 10,0% 233 246 100 121 123 137 144 5,0% 50 112 102 0 0,0% 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20171H 20181H EBITDA EBITDA Margin
Slide 25: Profitability
25 Profitability (mio TL) 250 20,0% 18,0% -10% 200 16,0% 14,0% 150 12,0% 8,9% 9,1% 10,0% 8,1% 7,9% 7,6% 100 7,1% 6,6% 8,0% 5,2% 156 6,0% 141 50 88 90 105 86 4,0% 68 55 2,0% 0 0,0% 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20171H 20181H Profit Before Tax Profit Before Tax Margin
Slide 26: Profitability
26 Profitability (mio TL) 200 16,0% 180 14,0% 160 -1% 12,0% 140 120 9,0% 10,0% 7,6% 7,8% 7,5% 100 6,7% 6,4% 8,0% 80 5,8% 5,4% 6,0% 60 138 137 104 4,0% 40 83 79 81 20 55 56 2,0% 0 0,0% 20171Q 20172Q 20173Q 20174Q 20181Q 20182Q 20171H 20181H Net Profit Net Profit Margin
Slide 27: Working Capital
27 Working Capital (mio TL) 2016 2017 20171H 20181H 2000 20,7% 1.106 21,0% 713 19,7% 20,0% 1500 654 18,4% 647 955 19,0% 566 18,0% 1000 556 472 17,0% 16,1% 16,0% 500 651 813 738 832 15,0% 0 14,0% -494 -562 -681 13,0% -500 -725 12,0% 11,0% Trade Receivables Inventories -1000 10,0% Trade Payables Net W
Slide 28: Net Financial Position
28 Net Financial Position (mio TL) 2016 2017 20171H 20181H - 685 - 784 - 720 - 1.400 228 442 460 155 20% -188 24% -271 20% -253 23% -350 80% -760 76% -856 80% -991 77% -1.205 Cash and Cash Equivalents Short Term Borrowings Long Term Borrowings
Slide 29: Net Financial Position / EBITDA
29 Net Financial Position / EBITDA 2016 2017 20171H 20181H 0 0,50 -200 0,00 -400 -720 -685 -784 -0,50 -1,00 -600 -1.400 -1,50 -800 -1,40 -1,39 a -1,63 -2,00 -1000 -2,50 -1200 -3,00 -2,76 -1400 -3,50 -1600 -4,00 Net Financial Position NFP / EBITDA* *The figures are cumulative 12 months sum.
Slide 30: High Profitability Ratios
30 High Profitability Ratios 62% 50% 52% 49% 17% 12% 11% 11% 2016 2017 20171H 20181H RoA* RoE* *The figures are 12 months average for yearly and 6 months average for 1H.
Slide 31: TL 2.4 billion dividend between 2004 - 2018
31 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
Slide 32: Analyst Meeting
32 Analyst Meeting August 7th , 2018
Türk Traktör ve Ziraat Makineleri A.Ş. — H1 2018 Earnings Presentation on 6ix