Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — 9M 2012 Earnings Presentation
48 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, September 2012
Slide 1: Investor Presentation September 2012
INVESTOR PRESENTATION SEPTEMBER 2012
Slide 2: Company Profile
1 COMPANY PROFILE Factory Güvercin Yolu No: 111-112 Gazi Ankara Turkey Spare Part Warehouse & Logistic Büğdüz Mahallesi No: 286 Akyurt Ankara Turkey Annual Production Capacity 35.000 units of tractors & 25.000 units of engines (In case of working in single shift for 5 days a week as per the Chambers
Slide 3: Agenda: Agricultural Sector, Tractor Market, Advantages, Products, Results
2 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 4: Main Factors Affecting the World Agricultural Industry
3 MAIN FACTORS AFFECTING THE WORLD AGRICULTURAL INDUSTRY Major impact of drought and climate changes on the industry due to global warming Increase in food prices in parallel to the increase in the world’s population Decrease in available water supply in the world Worldwide agricultural commodities
Slide 5: Agriculture Sector in Turkey
4 AGRICULTURE SECTOR IN TURKEY 3 million Rich soil structure, agricultural Turkey's total holdings, arable lands and land area 78 million favorable climate the average land hectare size 6 hectares conditions per farm Agricultural Share of the Land Size agricultural 24,4 million industry over hectare
Slide 6: Land Consolidation
5 LAND CONSOLIDATION The land consolidation studies have gained importance against the problem of small scale agricultural holdings which is the leading problem within the structural problems in the agricultural sector in Turkey. While 450 thousand hectare land in total was consolidated in Turkey be
Slide 7: Agriculture Sector in Turkey
6 AGRICULTURE SECTOR IN TURKEY 8,8% Turkish agricultural sector 7,2% 61,7 62,7 has grown in 7 out of last 8 56,4 51,0 years becoming the 5,3% locomotive sector for 49,5 2,8% 45,0 4,3% 43,5 Turkish economy. 3,6% 37,0 2,4% 1,4% 30,2-2,0% 23,7 While the contribution of agriculture to National -6,7% Inc
Slide 8: Agriculture Sector in Turkey
7 AGRICULTURE SECTOR IN TURKEY Agricultural Export (Billion $) 15,3 12,7 11,5 11,2 9,8 8,3 8,6 6,5 5,3 4,0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 In 2011, Turkey is a net exporter on foreign trade for live animals and food products with surplus of 5.4 billion dollars.(*) Turkey has taken
Slide 9: Agriculture Sector in Turkey
8 AGRICULTURE SECTOR IN TURKEY Turkey, located at the most favorable climate zone in geographical terms, has adequate natural NUT resources. Turkey has the capacity to support the SOUR CHERRY agricultural industry with her increasing population APRICOT and purchasing power. Turkey, in particular tha
Slide 10: Agricultural Crop Map of Turkey
9 AGRICULTURE SECTOR IN TURKEY AGRICULTURAL CROP MAP OF TURKEY 1 2 3 4 5 Fruits & Tea Vegetables & Fruits Vegetables Arable Crops & Vegetables & Fruits Arable Crops
Slide 11: Agriculture Sector in Turkey
10 AGRICULTURE SECTOR IN TURKEY Favorable ecological conditions and climate for agricultural production ￫Tarımsal üretim için uygun ekolojik koşullar ve iklim Government incentives granted for agricultural investments ￫Tarım sektöründeki yatırımlar için sağlanan devlet destekleri Increased recent in
Slide 12: Turkish Tractor Park & Renewal Potential
11 TURKISH TRACTOR PARK & RENEWAL POTENTIAL Use of obsolete tractors in the Turkish market not only increases the cost of the enterprises but also results in productivity loss by 25%. More than half million tractors are required to be renewed due to invalid specifications. Use of high capacity agric
Slide 13: Turkish Tractor Park & Renewal Potential
12 TURKISH TRACTOR PARK & RENEWAL POTENTIAL Reference to TURKSTAT data, there are 1.445.128 units of tractors in Turkish tractor App. park. The average of the park is 23,2. Mechanical Life 20-22 There are 704.626 tractors over 25 years. The Years average of those is 34,8. Total Average 1.445.128 Age
Slide 14: Agricultural Mechanization
13 AGRICULTURAL MECHANIZATION The rate of equipment use in Turkish agriculture is lower than the tractor use rate; the number of equipment per tractor and also the qualities of such equipment are far behind the levels of the developed countries. Capital requirement for the OPERATING acquisition and
Slide 15: Resources Allocated to Agriculture in Turkey
14 RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY 2013 Agricultural Support Payment 8,9 billion TL BUDGET* Resources Allocated to Agriculture 13,6 billion TL 2012 Agricultural Support Payment 7,2 billion TL Resources Allocated to Agriculture 11 billion TL Agricultural Support Payment 7,8 billion TL 20
Slide 16: Resources Allocated to Agriculture in Turkey
15 RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY Ratio in GDP 0, 791% 0, 763% 0, 756% 0, 741% 2002 2008 2010 2011 Source : General Directorate of Agricultural Production and Development
Slide 17: Resources Allocated to Agriculture in Turkey
16 RESOURCES ALLOCATED TO AGRICULTURE IN TURKEY SU PPORT P AYMENTS in 2010 (thousand TL) S UPPORT P AYMENTS in 2011 (thousand TL) Livestock Support Livestock Support 1.727.529 Deficiency 1.192.617 26% Payment Support 22% Deficiency 2.071.451 Payment Support 38% 2.503.427 Other Other 37% 474.583 286.
Slide 18: Consumer Finance
17 CONSUMER FINANCE The dealer, should have the current payment details of all banks and follow the interest rates, help the farmer to choose the most suitable bank and to duly prepare the required documents. TürkTraktör dealer network consist of individually established enterprises. Generally, the
Slide 19: Agenda: Tractor Market
18 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 20: Turkey in Worldwide Tractor Market
19 TURKEY in WORLDWIDE TRACTOR MARKET WO R L D T R A C T O R M A R K E T Units in Thousand 2006 2007 2008 2009 2010 2011 2 0 1 2 /1 0 North America 239 242 226 179 188 188 185 Europe 178 186 198 164 151 174 144 Latin America 44 61 83 69 83 80 63 China 202 178 180 271 295 340 300 India 318 310 308 36
Slide 21: In the Turkish Market Under Fierce Competition
20 TRACTOR MARKET in TURKEY Ihlas Kubota Farmtrac Mahindra McCormick Claas SuperStar Deutz Fendt LS Kioti Ferrari In the Turkish Branson Erkunt market under Foton NH fierce competition (Harman) Landini In 2001 four brands circumstances, were competing in the TürkTraktör is the Uzel Yağmur market, wh
Slide 22: Tractor Market in Turkey
21 TRACTOR MARKET in TURKEY 70.000 60.341 60.000 55.349 50.000 45.561 42.033 39.571 40.000 36.036 unit 33.989 34.525 34.541 30.000 27.022 20.000 18.639 13.758 10.587 10.000 8.127 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011/11 2011 2012/11 Source : TURKSTAT
Slide 23: Tractor Market in Turkey
22 TRACTOR MARKET in TURKEY Source : TURKSTAT
Slide 24: Tractor Market in Turkey
23 TRACTOR MARKET in TURKEY Source : TURKSTAT
Slide 25: Market & TürkTraktör
24 MARKET & TÜRKTRAKTÖR For the last five years one out of every two tractors have been manufactured by TürkTraktör.. TürkTraktör In the tractor market, New Holland brand is the leader with a market share of 47% 47 % *. 2007,, has a market share of Case IH brand, launched in the domestic market in 2
Slide 26: Agenda: Competitive Advantages
25 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 27: Competitive Advantages: Shareholder, Experience, Dealer Network
26 COMPETITIVE ADVANTAGES 57 TürkTraktör, manufactured KOÇ HOLDİNG A.Ş. Strong distribution and exported tractors for the WIDEST DEALER NETWORK One of the strongest network throughout EXPERIENCE OF 57 YEARS first time in Turkey and has STRONG SHAREHOLDER holdings of Turkey Turkey with 100 New an exp
Slide 28: Competitive Advantages: Manufacturing, R&D, Export
27 COMPETITIVE ADVANTAGES Being the first in Turkey R&D center accredited Export to over 90 concerning flexible by the Ministry of countries all over the manufacturing lines that Industry on 03 world via global network enables co-use of September 2009 of CNH, such as, US, LARGE SCALE EXPORT automati
Slide 29: Management Strategy
28 MANAGEMENT STRATEGY TürkTraktör tries to go head to head with international manufacturers from the same segment. TürkTraktör follows the developments in the world market and keeps track of innovations in the sector. TürkTraktör has an objective on a preferential basis to protect its cost-favorabl
Slide 30: Agenda: Products
29 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 31: Manufactured Products (Tractor)
30 MANUFACTURED PRODUCTS (TRACTOR) Series T480 2WD T480 4WD T480 48 HP 48 HP TT 50 55 65 75 50 HP 55 HP 65 HP 72HP 56s 55 65 75 55 HP 65 HP 75 HP TDS 65 75 80 65 HP 72 HP 80 HP 65 75 80 90 100 110 TDD 65 HP 75 HP 83 HP 88 HP 98 HP 110 HP TTB 50 55 65 50 HP 55 HP 65 HP TDB 65 75 80 65 HP 72 HP 80 HP
Slide 32: Imported Products (Tractor)
31 IMPORTED PRODUCTS (TRACTOR) Series T3010 T3040 T3000 38 HP 55 HP T4000 T4030 De. F- F - N -V T4040F T4050F 78 HP 88 HP 97 HP T5050 T5060 T5070 T5000 96 HP 106 HP 113 HP T6020 T6050 T6060 T6070 T6080 T6090 T6000 112 HP 127 HP 132 HP 141 HP 155 HP 165 HP T7040 T7060 T7070 T7000 182 HP 213 HP 225 HP
Slide 33: Products (Tractor)
32 PRODUCTS (TRACTOR) Series JXC 55 65 75 Manufactured 55 HP 65 HP 75 HP JX 70 75 80 90 100 110 Manufactured 65 HP 75 HP 80 HP 88 HP 98 HP 110 HP JXU 95 105 115 Imported 96 HP 106 HP 113 HP MAXXUM 110 130 140 Imported 112 HP 132 HP 141 HP PUMA CVX 125 140 155 165 180 210 225 PUMA Imported 126 HP 141
Slide 34: Imported Agricultural Equipment
33 IMPORTED AGRICULTURAL EQUIPMENT COMBINES COMBINES SQUARE BALERS COTTON PICKERS SELF PROPELLED FORAGE HARVESTERS SELF PROPELLED SPRAYERS PLANTERS PNEUMATIC PLANTERS ROUND BALERS SPRAYERS
Slide 35: Agenda: Operational Results
34 In the World and in Turkey Agricultural Sector Tractor Market Competitive Advantages Products Operational Results
Slide 36: Operational Results: Tractor Sales Units
35 OPERATIONAL RESULTS T ractor Sales Units 40.753 9. 601 31.563 28.940 29.592 5. 846 10. 958 8. 938 20.347 7. 438 31. 152 23. 746 20. 605 20. 002 12. 909 2010/9 2011/9 2012/9 2010/F Y 2011/F Y Local Sales Export Sales
Slide 37: Operational Results: Manufacturing Units
36 OPERATIONAL RESULTS MANUFACTURING UNITS TRANSMISSION EXPORT UNITS 5.466 4.038 3.644 5.308 4.011 40.630 30.013 32.462 28.348 20.039 2010/9 2011/9 2012/9 2010/FY 2011/FY 2010/9 2010/9 2011/9 2011/9 2012/9 2012/9 2010/FY 2010/FY 2011/FY 2011/FY Tractor Transmission
Slide 38: Market Leader in Agricultural Equipment Sector
37 OPERATIONAL RESULTS MARKET LEADER IN AGRICULTURAL EQUIPMENT SECTOR
Slide 39: Financial & Operational Performance
38 FINANCIAL & OPERATIONAL PERFORMANCE million EUR 2010/9 2011/9 2012/9 2010/FY 2011/FY Revenue 427 524 676 582 737 Gross Profit 109 139 148 156 174 Operating Profit 80 108 105 117 127 Profit Before Tax 72 115 113 109 140 Net Profit 58 93 94 88 114 EBITDA 83 111 111 121 132
Slide 40: Return on Equity & Return on Asset
39 FINANCIAL & OPERATIONAL PERFORMANCE R e turn o n Equity & Return o n Asset 57% 47% 42% 38% 32% 30% 22% 20% 20% 17% 2010 /9 20 11 /9 20 12/9 20 10/F Y 2011 /F Y RoE RoA (*) RoE and RoA figures are calculated on the basis of the last 12 monthly values.
Slide 41: Financial & Operational Performance
40 FINANCIAL & OPERATIONAL PERFORMANCE million EUR 2010/9 2011/9 2012/9 2010/FY 2011/FY Total Assets 397 426 554 432 507 Current Assets 326 365 471 364 437 Non-Current Assets 71 61 83 69 70 Total Liabilities 397 426 554 432 507 Short Term Liabilities 144 179 233 177 204 Long Term Liabilities 49 28 5
Slide 42: Financial & Operational Performance
41 FINANCIAL & OPERATIONAL PERFORMANCE
Slide 43: Net Working Capital and CAPEX
42 FINANCIAL & OPERATIONAL PERFORMANCE N e t Working Capital 25 0 20 0 20 3 15 0 181 162 153 mln € 132 10 0 50 0 20 10 /9 20 11/9 20 12 /9 20 10 /F Y 20 11 /F Y C APEX 35 30 30 , 32 25 20 mln € 15 1 7, 73 1 7, 05 10 5 8, 07 4, 70 0 20 10/9 2011/9 2012/9 2010/F Y 2011/F Y
Slide 44: Dividend
43 DIVIDEND * Share closing price as of dividend payment date have been used to calculate the dividend yield. ** Share closing price as of 16.02.2012 has been used to calculate the dividend yield of 2012. According to the agreement between Koç Holding and CNH Global NV dated 22 April 1998, the Parti
Slide 45: Istanbul Stock Exchange & TTRAK Index
50 100 150 200 250 300 350 400 450 500 44 31.12.2010 31.01.2011 28.02.2011 31.03.2011 30.04.2011 IMKB-100 31.05.2011 30.06.2011 31.07.2011 İMKB 100 31.08.2011 TTRAK 30.09.2011 31.10.2011 30.11.2011 31.12.2010 =100 31.12.2011 31.01.2012 29.02.2012 31.03.2012 TTF Values 30.04.2012 31.05.2012 ISTANBUL
Slide 46: Contact
45 CONTACT Marco VOTTA Memet KAMBER İlkiz KARAGULLU CEO CFO Investor Relations +90 312 2332001 +90 312 2332003 +90 312 2332502 marcov@turktraktor.com.tr memetk@turktraktor.com.tr ilkizk@turktraktor.com.tr
Slide 47: Disclaimer
46 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 an
Slide 48: NG
NG
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