36 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Feb 12, 2016
Slide 1: Press Meeting Presentation 12 February 2016
PRESS MEETING PRESENTATION 12 FEBRUARY 2016
Slide 2: Agenda
Agenda TürkTraktör at a glance Global & Local markets Highlights in 2015 Financial results TürkTraktör performance 2
Slide 3: TürkTraktör at a Glance
TürkTraktör at a Glance The biggest tractor TürkTraktör; The Pride of Turkey manufacturer in 1 Turkey 8 The oldest continuously manufacturer More than 60 years company of Turkish 2 of experience automotive industry The first R&D Uninterruptedly center of market leader Turkey in its 7 for 9 years 3 s
Slide 4: TürkTraktör at a Glance: Manufacturing at international standards
TürkTraktör at a Glance Manufacturing at international standards ISO 10002 ISO 14064 Greenhouse Gas Customer Satisfaction Emissions Reduction TS ISO/IEC 27001 and Customer Standard and ISO 50001 Information Security Complaint Management Energy Management Management System Certificate System Certific
Slide 5: TürkTraktör at a Glance
TürkTraktör at a Glance The only design center and the main production plant of 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 for TD driveline ser
Slide 6: Wide Product Range – Tractor Series Sold to Local Market
Wide Product Range – Tractor Series Sold to Local Market > 140 HP Puma / T7000 & AC** T8 AC** Magnum CVX 120-140 HP Maxxum / T6000 Puma CVX TR6 T6 AC** T5 Hi-Lo / FARMALL U / Maxxum CVX 110 HP T5 Electro - FARMALL U 105 HP Command PRO 98 HP 95 HP TD DELTA T4 88 HP TDD JX Quantum N F/N/V 80 HP 78 HP
Slide 7: Wide Product Range – Tractor Series Sold to Export Market
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 85 HP TDD JX 80 HP TDF* Straddle Straddle 78 HP (Narrow Orchard) 75 HP 72 HP Utility Utility T3F Light Light 65 HP Utility (Compact Light 55 HP Orchard)
Slide 8: Export Penetration
Export Penetration Continuously increasing export penetration, Turkey’s tractor exporter. Tajikistan Kyrgyzstan Nepal Niger Laos Guinea Benin Cambodia Burkina Faso Bangladesh 8
Slide 9: Agenda
Agenda TürkTraktör at a glance Global & Local markets Highlights in 2015 Financial results TürkTraktör performance 9
Slide 10: Highlights in 2015
Highlights in 2015 As of 2015; 780.000th tractor manufactured 733.798 781.334 649.445 687.975 569.241 609.871 1954-2010 2011 2012 2013 2014 2015 As of 2015; 133.000th tractor exported 133.402 119.280 103.414 89.012 74.447 64.847 1979-2010 2011 2012 2013 2014 2015 10
Slide 11: Highlights in 2015
Highlights in 2015 Production Units Sales Units Revenue have reached to record level Gross Profit Operating Profit EBITDA In December 2015, 50.000th tractor has been manufactured in the first year of Erenler Plant 11
Slide 12: Highlights in 2015
Highlights in 2015 TürkTraktör, as the company having exported the greatest volume in the category of "Machinery and Components", was awarded the first prize by TİM. TürkTraktör CEO Marco Votta named as Second Best- Performing CEO in a research conducted by Harvard Business Review in corporation wit
Slide 13: Highlights in 2015
Highlights in 2015 Special Award from SATSO for the employment generated in Sakarya through Erenler Plant 2014 Annual Report prepared especially for the 60th anniversary of TürkTraktör received the two international awards from ARC and Creativity. TürkTraktör rose to the 24th place on the ISO 500 li
Slide 14: Agenda
Agenda TürkTraktör at a glance Global & Local markets Highlights in 2015 Financial results TürkTraktör performance 14
Slide 15: World Tractor Market
World Tractor Market (Source : Systematics (thousand units)) -7% -9% 1.614 1.494 1.400 1.278 TOTAL 53 59 52 59 42 35 33 14% 37 World’s growth 65 56 53 36 Turkey’s growth 93 80 74 75 TURKEY 174 159 143 134 Pakistan 229 236 216 211 Brazil Others 346 282 270 277 Europe North America China 612 587 559 4
Slide 16: Tractor Production in Turkey (units)
Tractor Production in Turkey (units) (Source: TARMAKBİR) 4% 64.342 66.615 56.407 18.519 3% 19.079 17.877 45.823 4% 47.536 38.530 2013 2014 2015 TürkTraktör Others 16
Slide 17: Tractor Production in Turkey: TürkTraktör covers 91% of exports
Tractor Production in Turkey (units) (Source: TARMAKBİR) TürkTraktör 47.536 TürkTraktör alone covers 91% 71% of total exportation from Turkey where 15.464 tractors exported. Others TürkTraktör 19.079 14.122 29% 91% TürkTraktör covers 71% of the total production in Turkey where 66.615 tractors were m
Slide 18: Tractor Market in Turkey – Sales (units)
Tractor Market in Turkey – Sales (units) (Source: TURKSTAT Traffic Registration, 2015) TürkTraktör maintains its leadership by having 48.1% market share. 9.2 billion TL of 48,4% 49,4% 48,1% agricultural supports paid in the 66.775 11 months of 2015 59.459 40,0% Ziraat Bank’s 52.286 interest rate 34.
Slide 19: Tractor Market in Turkey
Tractor Market in Turkey Average Tractor Horse Power Tractor Park in Turkey Average age of 1.626.938 tractor tractors in the park 70,0 park 65,1 68,5 58,3 60,4 >25 Tractors 1995 2000 2005 2010 2015 > 25 years 4WD Tractor Ratio in Turkey 2010 Mechanization (equipment / tractor) 60,7% 12.000 kg 4.200
Slide 20: Factors that Effecting the Market
Factors that Effecting the Market Seasonal Precipitation of Turkey (mm) (source: www.mgm.gov.tr) 210 169 175 168 182 157 141 159 134 83 85 60 Spring Summer Autumn Winter Seasonal Avg. 2014 2015 Production of crops (mio tons) (source : TURKSTAT) 28,6 29,6 22,6 19,0 17,1 17,8 6,3 8,0 Vegetables Wheat
Slide 21: Factors that Effecting the Market: Prices
Factors that Effecting the Market (Source: TURKSTAT, January 2011=100) Prices 180,00 180,00 Diesel (cost index/litre) Agricultural Pesticide (cost index/kg) 160,00 160,00 140,00 140,00 120,00 120,00 100,00 100,00 80,00 80,00 60,00 60,00 40,00 40,00 20,00 20,00 0,00 0,00 Apr Apr Apr Apr Apr Jan Jan J
Slide 22: Factors that Effecting the Market: Government Subsidies & Supports
Factors that Effecting the Market Government Subsidies & Supports 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 Support
Slide 23: Factors that Effecting the Market
Factors that Effecting the Market 0% 18 16% 0% 15% 16 0% 13% 14 0% 0% 11% 11% 12 0% 10 0% 8% 0% 50% 50% 50% 50% 6% 0% 0% 25% 4% 0% 2% 2011 2012 2013 2014 2015 Subsidized Rate Interest Rate 340 mio € 250 230 mio € mio € 2014 2015 2016 23
Slide 24: Agenda
Agenda TürkTraktör at a glance Global & Local markets Highlights in 2015 Financial results TürkTraktör performance 24
Slide 25: TürkTraktör Sales Performance – Tractor (units)
TürkTraktör Sales Performance – Tractor (units) 3% 45.893 47.124 39.026 -11% 14.122 15.866 14.402 10% 30.027 33.002 24.624 2013 2014 2015 Local Sales Export Sales 25
Slide 26: CE Sector in Turkey
CE Sector in Turkey (Source: İMDER – Monthly Market Data) World’s 11th biggest CE market Europe’s 4th biggest CE market Increased by 5% 6,5 billion $ sector volume Manufacturers represent 40% of total sector 26
Slide 27: Agenda
Agenda TürkTraktör at a glance Global & Local markets Highlights in 2015 Financial results TürkTraktör performance 27
Slide 28: Total Sales Revenue (mio TL)
Total Sales Revenue (mio TL) 14% 3.103 2.723 2.175 0,5% 938 934 690 21% 2.164 1.790 1.485 2013 2014 2015 Local Export 28
Slide 29: Profitability (mio TL)
Profitability (mio TL) 605 416 257 Gross Profit EBITDA Net Profit 19,5% 13,4% 8,3% Gross Margin EBITDA Margin Net Margin 29
Slide 30: Working Capital (mio TL)
Working Capital (mio TL) 2013 2014 2015 441 448 470 476 461 363 413 436 518 -306 -449 -552 Inventories Trade Receivables (net) Trade Payables (net) 30
Slide 31: Net Financial Position (mio TL)
Net Financial Position (mio TL) 2013 2014 2015 -389 -429 -139 209 269 244 4% -15 33% -217 31% -207 96% -334 67% -442 69% -466 Cash and Cash Equivalents ST Financial Liabilities LT Financial Liabilities 31
Slide 32: High Profitability Ratios
High Profitability Ratios 38% 37% 39% 19% 14% 13% 2013 2014 2015 RoA RoE 32
Slide 33: Dividend (mio TL)
Dividend (mio TL) TürkTraktör which paid the total amount of 300 million TL dividend in 2015, is amongst the companies paid highest dividend in BIST. 350 115% 107% 110% 300 90% 250 75% 70% 200 50% 150 300 300 30% 100 200 50 10% 7% 10% 8% 0 -10% 2013 2014 2015 Dividend Yield Dividend /Net profit 33
Slide 34: Stock Performance (31.12.2012=100)
31.12.2012 12.03.2013 22.05.2013 01.08.2013 11.10.2013 11.02.2016 Closing Price 31.12.2012 Closing Price BİST 100 21.12.2013 02.03.2014 69,30 TL 58,25 TL 12.05.2014 22.07.2014 BİST 30 01.10.2014 Stock Performance (31.12.2012=100) 11.12.2014 20.02.2015 -9% -12% BİST 30 BİST 100 02.05.2015 12.07.2015
Slide 35: 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 36: Question & Answer
QUESTION & ANSWER