Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — Investor Presentation (February 2018)
25 slides from Turk Traktor Ve Ziraat Makineleri A.s's investor presentation, February 2018
Slide 1: Investor Presentation February 2018
Investor Presentation February 2018
Slide 2: Corporate Structure
Corporate Structure Established in 50.000 tractors The oldest continuously manufacturing company of 1954 annual production capacity* Turkish automotive industry Plants & Facilities Shareholder Structure Koç Holding A.Ş. Founded in 1926, Koç Holding has become not only one of the largest and most suc
Slide 3: TürkTraktör
TürkTraktör WHERE AREN’T WE YET… Continuously increasing export penetration, POSITION within CNHI 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
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 • Sustainable d
Slide 5: Sustainable Growth
Sustainable Growth Tractor Manufacturing Units Local Tractor Sales Units 39.574 38.530 45.823 47.536 46.031 48.302 25.058 24.091 29.550 32.535 33.053 36.648 4.052 2.007 2012 2013 2014 2015 2016 2017 2018/1 2012 2013 2014 2015 2016 2017 2018/1 Total Revenue (mio TL) Gross Profit (mio TL) 1.801 1.974
Slide 6: Growth of Shareholder Value
Growth of Shareholder Value Stock Performance (31.12.2014=100) Earnings per Share 5,24 4,89 4,81 5,03 6,93 4,06 31.12.2014 2015 2016 30.09.2017 2012 2013 2014 2015 2016 2017/9 BIST - 100 TTRAK Foreign Ownership in Free Float (%) %83,88 Commitment to Corporate Governance %75,74 *Separate CEO and Chai
Slide 7: Brands & Products
Brands & Products Tractors (48HP-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 the Brands
Market Positioning of the Brands *Market leader for 11 years in a row *Targeting professional *Having ~44%* market share farmers *The largest dealer network *Having ~5%* market share *Full territory coverage *Continuously expand in local market since 2007 *Proximity to customers *Strengthen dealers
Slide 9: Turkey - Agriculture Sector
Turkey - Agriculture Sector *Demand to outstrip production *Low productivity vs. good yield *High agricultural population (25%) *Higher inputs costs *Stabilized government support to the sector *One of the lowest mechanization levels in *Giving rise to professional farming Europe Turkey - Agricultur
Slide 10: Turkey - Agriculture Sector
Turkey - Agriculture Sector (source : tarim.gov.tr & TURKSTAT) Turkey’s Agriculture Sector with Numbers Targets of Turkish Agriculture Sector Turkey’s agricultural economy in the world for 2023 2023 Turkey’s agricultural economy in Europe agricultural income share of the agricultural industry over t
Slide 11: Turkey - Agriculture Sector
Turkey - Agriculture Sector (source : tarim.gov.tr) Government Support in Turkey (billion TL) 14.8 12.8 11.6 9.1 10.0 2014 2015 2016 2017 2018 budget figures It has been announced that the government has allocated budget for agriculture in 2018. of total budget of the year 2017 (12.8 billion TL) has
Slide 12: Turkey - Agriculture Sector
Turkey - Agriculture Sector (source : tarim.gov.tr) According to the National Agriculture Project announced on October, 2016; Agricultural supports will be collectively million hectare of land in total is planning to be paid to farmers twice a year. payment on April-May consolidated until in the see
Slide 13: Turkey vs. EU - Agriculture Sector
Turkey vs. EU - Agriculture Sector (source : tarim.gov.tr & EUROSTAT) EUROPEAN UNION Arable land Permanent crops 115 million ha total agricultural land 11 million agricultural holdings – average land size 10 ha per farm TURKEY Arable land Permanent crops 24 million ha total agricultural land 3 milli
Slide 14: Highlights of Tractor Market
Highlights of Tractor Market (source : TARMAKBİR) Average working time of Mechanical life Mechanical life Ratio of the a tractor of a tractor of a tractor tractors >24 (hours/year) (hours) (year) years Tractor unit per Equipment unit Agricultural land per Tractor HP per 1000 hectare per tractor trac
Slide 15: Global Tractor Market
Global Tractor Market (thousand units) (source: Systematics) North America South America Europe Turkey is the 4th 229 233 214 227 63 61 152 145 131 134 60 54 biggest market in 2015 2016 2016/11 2017/11 2015 2016 2016/11 2017/11 2015 2016 2016/11 2017/11 the world in terms of annually sold tractor un
Slide 16: Turkish Tractor Market
Turkish Tractor Market Tractor Production (units) Market Share of TürkTraktör Source : Tarmakbir Source : TURKSTAT 72.032 66.615 66.915 62.250 64.342 56.407 53.982 50% 50% 49% 48% 49% 48% 48.302 47% 40.630 45.823 47.536 46.031 38.530 39.574 2011 2012 2013 2014 2015 2016 2017 21.620 20.884 23.730 14.
Slide 17: Growth of Turkish Tractor Market
Growth of Turkish Tractor Market Turkish Tractor Market (units) Tractor Park in Turkey (mio units) Source : TURKSTAT Source : TURKSTAT 60.341 50.318 52.286 59.449 66.775 70.205 72.949 1,46 1,52 1,57 1,63 1,69 1,76 1,84 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 Turkish Tra
Slide 18: Sales of TürkTraktör
Sales of TürkTraktör Tractor Sales (units) 47.124 46.230 14.122 12.625 36.635 *Domestic tractor sales increased by 11% in 2017/9. 34.018 9.268 *Export tractor sales decreased by 2% comparing to 9.460 same period of 2016. 33.002 33.605 27.367 24.558 2015 2016 2016/9 2017/9 Combine Sales (units) Local
Slide 19: Income Statement
Income Statement (mio TL) 2015 2016 ∆ 2016/9 2017/9 ∆ - Domestic Sales 2.164 2.469 14% 1.794 2.225 24% - Export Sales 939 974 4% 710 837 18% Total Sales Revenue 3.103 3.443 11% 2.504 3.062 22% Gross Profit 605 742 23% 529 527 -0,5% Net Operating Income 364 455 25% 333 305 -8% Profit Before Tax 302 3
Slide 20: Profitability
Profitability (%) 2015 2016 ∆ 2016/9 2017/9 ∆ Gross Profit Margin 19,5 21,6 2,1 pp 21,1 17,2 -3,9 pp Operating Profit Margin 11,7 13,2 1,5 pp 13,3 10,0 -3,3 pp Net Profit Margin 8,3 10,7 2,4 pp 11,0 7,1 -3,9 pp EBITDA Margin 13,4 14,9 1,5 pp 14,9 11,6 -3,3 pp Gross Operating Net EBITDA Gross Operati
Slide 21: Gross Profit to EBITDA Flow
Gross Profit to EBITDA Flow (mio TL) as of 30.09.2017 374 310 222 59 29 527 50 305 355 246 217 Gross Opex Operating Other & Profit Taxation Net Income Depreciation EBITDA Profit Income Financial Before Expenses Tax 21
Slide 22: Debt Profile & Financial Ratios
Debt Profile & Financial Ratios (mio TL) 2015 2016 ∆ 2016/9 2017/9 ∆ - Cash & Cash Equivalents 244 228 -6% 112 501 346% - Total Financial Debt 673 948 41% 957 1.247 30% Net Financial Position (429) (720) 68% (844) (746) -12% Current Ratio 1,6 2,0 0,4 pp 2,1 1,9 -0,2 pp Quick Ratio 1,0 1,3 0,3 pp 1,2
Slide 23: Working Capital
Working Capital (mio TL) 651 716 777 441 654 557 772 476 518 556 586 535 -494 -367 -552 -656 2015 2016 2016/9 2017/9 Trade Payables (net) Inventories Trade Receivables (net) 23
Slide 24: Dividend Payments
Dividend Payments Total TL 2.1 billion was distributed as dividend to the shareholders between 2004 – 2017. 50 140% 300 300 300 00 120% 117% 107% 250 100% 101% 115% 50 94% 100% 87% 200 200 83% 00 80% 150 75% 72% 50 68% 60% 107 54% 94 94 40% 00 40% 50 47 26% 50 15% 14% 20% 13% 17 10% 10% 10% 12 16% 7
Slide 25: Investor Relations Contact
Investor Relations Contact Marco VOTTA Ahmet CANBEYLI Ilkiz KARAGULLU CEO CFO Investor Relations Manager +90 312 2332001 +90 312 2332003 +90 312 2332502 marcov@turktraktor.com.tr ahmet.canbeyli@turktraktor.com.tr ilkizk@turktraktor.com.tr investorrelations@turktraktor.com.tr
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