COMPANY PROFILE
• TUMOSAN manufactures diesel engine and tractors in a closed area
of 93.000 m2 on its own property of 1.6 million m2.
• It has the biggest manufacturing capacity in Turkey.
• Engine manufacturing capacity: 75.000 items/year-three shifts.
• Conform with the European Union emission standard Stage III-A.
• 3 Cylinder engines are; 50 – 85 HP.
• 4 Cylinder engines are; 75 – 115 HP.
• Tractor manufacturing capacity: 45.000/year-three shifts.
• Tractors between 50 – 115 HP with 3 and 4 cylinders.
2012
Net Sales
TL 291.6 Mn
EBITDA
TL 39,2 Mn
Net Income
TL 29.5 Mn
EBITDA margin13,4%
2013
Net Sales
TL 445.1 Mn
EBITDA
TL 79,5 Mn
Net Income
TL 62.1 Mn
EBITDA margin18%
OWNERSHIP STRUCTURE
78% 7% 3% 3% 3% 3% 3%Ereğli Teks1l Turizm San. Ve Tiç. A.Ş. Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Other
Before IPO
Partner Capital (TL) Share in
Capital (%)
Ereğli Tekstil Turizm San. ve Tic. A.Ş. 82.090.905 78.18 %
Muzaffer ALBAYRAK 6.586.381 6.27 % Bayram ALBAYRAK 3.264.543 3.11 % Nuri ALBAYRAK 3.264.543 3.11 % Kazım ALBAYRAK 3.264.543 3.11 % Mustafa ALBAYRAK 3.264.543 3.11 % Ahmet ALBAYRAK 3.264.543 3.11 %
Hedef Girişim Sermayesi Yatırım Ortaklığı A.Ş. - -
Free Float - -
TOTAL 105.000.000 100 %
TL 105mn
Capital Before IPO
OWNERSHIP STRUCTURE 1Q14
68% 1% 2% 2% 2% 2% 2% 2% 20%Ereğli Teks1l Turizm San. Ve Tiç. A.Ş. Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK
Post IPO
Partner Capital (TL) Share in
Capital (%)
Ereğli Tekstil Turizm San. ve Tic. A.Ş. 78.321.127,65 68,10 %
Muzaffer ALBAYRAK 2.000.000,00 1,74 % Bayram ALBAYRAK 2.000.000,00 1,74 % Nuri ALBAYRAK 2.000.000,00 1,74 % Kazım ALBAYRAK 2.000.000,00 1,74 % Mustafa ALBAYRAK 2.000.000,00 1,74 % Ahmet ALBAYRAK 2.000.000,00 1,74 %
Hedef Girişim Sermayesi Yatırım Ortaklığı A.Ş. 1.500.000,00 1,30 %
Free Float 23.178.872,35 20,16 %
TOTAL 115.000.000,00 100,00 %
DEALER AND SERVICE NETWORK
RESEARCH AND DEVELOPMENT
TÜMOSAN Research and Development Center has
been active in ITU Teknopark / ISTANBUL.
Test facilities are located in KONYA.
Laboratories are located in KONYA.
• 4 Valve 4 cylinder 125 HP
and 4 valve 6 cylinder 135 – 175 HP engine. • 32x32 Gear Box.
• LPG – CNG Engine.
• 16x16 Full Powershift
Transmission.
• Stage IV 6 cylinder new
generation engine. • Cotton Picker.
• ECU - TCU
• Sprayer.
RESEARCH AND DEVELOPMENT
• 115 HP Tractor.
• 4WD Front Axle.
• 16x16 Gear Box.
• Stage III-A and
Stage III-B Diesel Engine.
R&D EXPENDITURE BREAKDOWN
Projects, Million TL 2014 2015 2016 4 Valve Engine 2,6 2,0 2,8 32x32 Gear Box 0,3 16x16 F.P. Transmission 0,4 Lpg / Cng 0,3 0,7Stage IV Engine %50 of Total Cost 2,6 1,2 0,7
Cotton Pick %50 of Total Cost 0,8 0,9 0,4
Sprayer %50 of Total Cost 0,6 0,6 1,5
ECU – TCU Design 0,8 1,3 1,8
AGRICULTURAL SECTOR
• 24.5 million hectares of the existing 38 million agricultural land is being cultivated.
• Turkey is amongst the first 15 countries in the world with the size of cultivated agricultural land.
• The number of holdings decreased 4 to 2.3 million.
• Avarege land size of holdings increased from 4.7 to 7 hectares.
6% 10% 18% 31% 18% 11% 5%
Land Distribution
Agricultural Holdings
AGRICULTURAL SECTOR
• As of the year 2012, the Agricultural Gross Domestic Product (AGDP) is 8.2 % of the total GDP with
62.5 billion $.
• In terms of agricultural economy, Turkey ranks first of Europe and seventh of the world as of 2012.
24 30 37 45 43 49 56 51 62 62 63 0 10 20 30 40 50 60 70 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Agricultural Produc.on ($ Bl)
ASSESMENT OF AGRICULTURAL SECTOR
PROS
CONS
Favorable ecological conditions. High cost of mechanization due to imports. Strong direct and indirect subsidies. Weather sensitive.
Land consolidation. Credit heavy finance of investment. Decline of agri employment and number
of holding vs growth of farm size. Competitive labor cost.
Able Engineering.
R&D subsidies of % 60. Competitive supplier base.
COMPARISON OF TR & EU AGRICULTURAL SECTOR
Chosen Indicators Turkey EU
Size of Holdings 6.8 Ha 17.5 Ha
Agricultural Employment 26 % 6 %
Average Tractor Power 70 HP > 100 HP
4WD Tractor Rates 65 % 95%
2014 OUTLOOK
•
Interest rate of agricultural credits and subsidies support sales.
•
Imports may decline due to exchange rate.
•
Agricultural output might fall 10 % due to adverse weather conditions.
•
Sales numbers will relatively be lower than 2013.
•
Expansion of export market
•
Enlargement of dealer&service organisation
•
Not only pricing policy but introduction of new products and innovation will
TRACTOR MARKET OF TURKEY
2012/3 2012 2013/3 2013 2014/3
Total 8.693 51.032 9.070 53.083 10.766
TUMOSAN 1.271 6.953 1.361 8.626 1.527
2012 – 2014 Tractor Market
TUMOSAN TUMOSAN TUMOSAN
2012 / 3 2012 2013 / 3 2013 2014 / 3 1271 6953 1361 8626 1527 2012 - 2014 TUMOSAN Sales 2012 / 3 2012 2013 / 3 2013 2014 / 3 0 10000 20000 30000 40000 50000 60000 2012 / 3 2012 2013 / 3 2013 2014 / 3 8693 51033 9070 53803 10766 2012 / 3 2012 2013 / 3 2013 2014 / 3 2012 – 2014 Tractor Market
34,589 24,951 43,706 49,297 53,922 54,731 22,954 33,989 8,127 10,587 16,639 34,525 9,571 42,033 34,541 24,241 14,000 36,576 60,304 51,033 53,803 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
TRACTOR MARKET OF TURKEY
DEVELOPMENTS IN TRACTOR SECTOR 1993 - 2013
Tractor power has increased by 20 % close to 70 HP. 9% 65% 0% 20% 40% 60% 80% 4WD Tractors 2% 7% 0% 5% 10%
Vineyard & Orchard Tractors 59% 70% 50% 55% 60% 65% 70% 75% Average HP 7 fold increase in 4WD, reached 65%. 3.5 fold increased in
TRACTOR PARK
• The size of tractor park is 1.500.000.
• Average age is 23 years.
• The average age of 704.000 tractor is 34 years old.
• Government has a plan to modernize the park with
a scrap incentive program. 459,055 31% 302,647 21% 704,506 48%
SALES VOLUME (TURKISH STATICAL INSTITUTE FIGURES)
SALES VOLUME (TSI) 2012/3 2013/3 2014/3
TUMOSAN Sales Volume 1.271 1.361 1.527
Total Sales 8.693 9.070 10.766 Market Share 14,63 % 14,70% 14,18% Tümosan Market Share 14,63% Total Sales 8.693 Tümosan Total Sales 9.070 Market Share 14,70% 2013/3 2012/3 2014/3 Market Share 14,18% Total Sales 10.766 Tümosan Sales Volume 1.527 Total Sales 8.693
HP ASSESSMENT
HP 2013 Total 2013 TUMOSAN 2013 Market Share 2013 TUMOSAN Market Share
< 50 HP 4.287 - 7,97% - 50-59 HP 13.972 1.415 25,97% 10,13% 60-69 HP 10.274 782 19,10% 7,61% 70-79 HP 9.642 2.404 17,92% 24,93% 80-89 HP 5.122 1.415 9,52% 27,63% 90-99 HP 5.035 1.790 9,36% 35,55% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 < 50 HP 50-‐59 HP 60-‐69 HP 70-‐79 HP 80-‐89 HP 90-‐99 HP 100-‐109 HP 110-‐149 HP
2013 HP VOLUME
2013 TUMOSAN 2013 Total 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% < 50 HP 50-‐59 HP 60-‐69 HP 70-‐79 HP 80-‐89 HP 90-‐99 HP 100-‐109 HP 110-‐149 HP2013 HP Market Share
TUMOSAN SALES VOLUME (SALES TO DEALERS)
Sales and Production 2013/3 2014/3 %
Sales (Sales to Dealers) 1.892 1.572 -16,91%
1.892
1,572
2013/03 2014/03
TUMOSAN EXPORT VOLUME
2013/3 2014/3 % EXPORT 27 129 378% 27 129 2013/3 2014/3 378%
FINANCIAL HIGHLIGHTS
Million TL
2013/3
2014/3
Revenues 90.3 83.5 Gross Profit 19.1 14.4 Margin 21% 17% Operating Profit 17.7 8.3 Margin 19% 9% EBITDA 18.5 9.6 Margin 20% 11% Net Income 16.4 6.1 Margin 18% 7%COMPARATIVE BALANCE SHEET
Liquid Assets Mn TL 2013/3 2014/3
Cash and Cash Equivalents 0.4 2.3
Financial Invest. - 0.2
Commercial Receivables 71.4 58.2
Commercial Receivables from Non-Affiliates 71.4 57.7
Commercial Receivables from Affiliates - 0.5
Other Receivables 0.13 1.1
Receivables from Affiliates 84.6 -
Other Receivables from Affiliates - 1.1
Stocks 76 135.8
Prepaid Expenses - 1.3
Other Liquid Asset 38.7 35.8
Total Liquid Assets 271.2 234.7
Fixed Assets Mn TL 2013/3 2014/3
Other Receivables - 6
Other Receivables from Affiliates - 6
Investment Properties 0.4 0.3
Tangible Fixed Asset 73 95.6
COMPARATIVE BALANCE SHEET
Short Term Liabilities , Mn TL 2013/3 2014/3
Short Term Loans 37.5 29.1
Current Portion of Amounts Payable after One Year - -
Other Financial Liabilities - -
Trade Payables 66.5 59.3
Current Payables to Affiliates - -
Current Payables to Non-Affiliates 66.5 59.3
Due from Employee Benefits 0.3 1.2
Deferred Income - 1.9
Period Income Tax Liability 4.5 2.3
Short Term Provisions 1.6 7.8
Short Term Provisions for Employee Benefits 0.3 0.5
Other Short Term Provisions 0.5 7.3
Other Short Term Liabilities 15.7 0.3
Total Short Term Liabilities 126.9 101.9
Long Term Liabilities, Mn TL 2013/3 2014/3
Long Term Loans 0.6 -
Long Term Provisions 1.6 2.4
Long Term Provisions for Employee Benefits 1.6 2.4
Deferred Tax Liability 1.1 1.6
Total Long Term Liabilities 3.3 4
Equities, Mn TL 2013/3 2014/3
Paid-up Capital 115 115
Share Premiums 26.2 13
Fixed Tangible Asset Valuation Fund 39.4 39.4
Actuarial Gain/Loss Fund from Pension Plan - 0.1
Reserves on Retained Earnings 0.08 4
COMPARATIVE INCOME TABLE
Real Operating Income, Million TL 2013/3 2014/3
Sales Income 90.2 83.4
Sales Expense: (-) -71.1 -69.1
Gross Profit 19.1 14.3
Research and Development Expenses -0.5 -1.5
Marketing and Sales Expenses -0.3 -2.9
Administrative Expenses -1.1 -2
Other Operative Income 0.6 0.8
Other Operative Expenses -0.07 -0.4
Operating Profit 17.7 8.3
Financial Income 6.6 1.2
Financial Expenses -4.3 -1.1
Pretax Profit 20 8.4
Period Tax Expenses -3.8 -2.2
Deferred Tax Income / Expenses 0.2 -0.06
Net Period Income 16.4 6.1
DEBT PROFILE
2012
2013
3.5
21.4
611%
Change in Debt.
• TL 2.4 mn out of TL 3.5DEBT PROFILE OF 2014/3
Cash payment of import to evade 6% extra cost of LC 14 M
Payment For Foundry 14 M
Due Payment Of Bank Loan 1.1 M
FX EXPOSURE
FX Based Trade Payables.
• 22% of the tradepayables is FX based. • Need exit strategy.
• With the exception of
diesel pump and injectors localisation if cheaper. • 4WD axle already
localised.
• Transaxle for compact
tractor will developed.
2011
2013
22%
CAPEX DEVELOPMENT EXPECT CASTING (TL M
N
)
3.4 22.7 3.5 9.5 10,0 11,2 5,2 2012 2013 2014 2015 2016 2017 2018Construc1on took the largest part in 2013 and CNC investment was the second.
Machinery will receive bulk of investment 2014 onward.
CAPEX ITEMS
• Installed tractor production capacity to be increased to 60.000.
• Modernization of paint shop.
• Expansion of Automated Guided Vehicle (AGV) application at assembly and material
handling.
• Shift from manual to compressed air tools for manpower and energy efficiency.
• Upgrade of existing machining lines.
• Be prepared to produce new generation diesel engines.
• Workshop for Harvesters / Material Handling / Construction.
CAPEX BREAKDOWN
Items
2014
2015
2016
2017
2018
Capacity Increase 1.2 1.2 0.5 0.5 0.5
Upgrade 0.8 0.8 1.0 1.2 1.2
Engine Production Line - 5 7 9 3
Workshop 0.3 1.3 1.0 - -
Construction & Maintenance 1.2 1.2 0.5 0.5 0.5
IPO CONDITIONS
Dividend Policy 2013
With the decision made during the 2013 Ordinary Meeting of General Assembly held on 15.05.2013, 17.250.000 TL of the 2013 profit has been distributed as of May 28, 2014.
Bonus Share Distribution
4 % of Bonus Tumosan shares has been distributed to the B group IPO owners, holding the stock for 90 days. A total of 266.641.738 Tümosan shares were transferred to the investors on 06.03.2013.
Sales of Shares Repurchased for Incentive
15.359.006 nominal shares were repurchased by parent company for the first 10 trading days to support stock price. 7.500.000 shares already to were sold foreign investor.
Financial Performance Guarantee of 2013
Tumosan guaranteed 72.5 mn TL average of EBITDA and Net Income. If not,investors planned to receive bonus shares at the rate of deviation. Avarege is 70.792 and the deviation is 2.4 %. 537.878 shares
OWNERSHIP STRUCTURE - TD
78% 7% 3% 3% 3% 3% 3%Ereğli Teks1l Turizm San. Ve Tiç. A.Ş. Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK
Before Acquisition
Partner Capital (TL) Share in
Capital (%) Ahmet ALBAYRAK 311.000 3.11 % Bayram ALBAYRAK 311.000 3.11 % Kazım ALBAYRAK 311.000 3.11 % Nuri ALBAYRAK 311.000 3.11 % Mustafa ALBAYRAK 311.000 3.11 % Muzaffer ALBAYRAK 627.000 6.27 %
Ereğli Tekstil Turizm San. ve Tic. A.Ş. 7.818.000 78.18
OWNERSHIP STRUCTURE - TD
After Acquisition
Partner Capital (TL) Share in
Capital (%) Ahmet ALBAYRAK 311.000 3.11 % Bayram ALBAYRAK 311.000 3.11 % Kazım ALBAYRAK 311.000 3.11 % Nuri ALBAYRAK 311.000 3.11 % Mustafa ALBAYRAK 311.000 3.11 % Muzaffer ALBAYRAK 627.000 6.27 %
Ereğli Tekstil Turizm San. ve Tic. A.Ş. 818.000 8.18 %
TUMOSAN 7.000.000 70 % TOTAL 10.000.000 100 % 70% 7% 3% 3% 3% 3% 3% 8%
TUMOSAN Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK
TUMOSAN FOUNDRY
Established in 2012
Employees 33/67
Capacity (T/Y) 5.000/10.000
Cast Alloy Grey Iron
Moulding Automatic-Horizontal
TURKISH FOUNDRY INDUSTRY
INDICATORS
2011
Number of Foundry 1.040
GDP Share of Sector 0,5
Sales (€) 2.500.000.000
Sector Growth Rate +11
Global Market Share (%) 1.5
Import Ratio in Product (%) 20
TURKISH FOUNDRY INDUSTRY PRODUCTION (TON)
161,000 217,000 360,000 518,000 905,000 1,500,000 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000Produc.on (Ton)
TUMOSAN CASTING REQUIREMENT
YEAR
REQUIREMENT(T/Y)
TRANSPORTATION COST
(TL)
2014 21.622 1.444.100
2015 25.140 1.676.000
2016 28.730 1.915.300
2017 34.796 2.319.700
2018 36.777 2.451.800
INCOME/PROFIT EXPECTATIONS
YEAR
CAPACITY(T/Y)
INCOME(TL)
PROFIT (TL)
2014 6.500 27.300.000 1.911.000
2015 10.000 42.000.000 2.940.000
2016 10.000 42.000.000 2.940.000
2017 35.000 147.000.000 10.290.000
STRATEGY GUIDANCE
PR O D U C T D IVER SI F IC A T ION
Focus on local industry.
Meeting requirements of customers.
Minimized capital expenditures.
Short research and development period.
Efficient team with profound expertise.
MAR K ET D IVER SI F IC A T IO N
THANK YOU
FOR
FURTHER
INFORMATION
PLEASE
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CALL
TUMOSAN
INVESTOR
RELEATIONS
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+90 212 468 19 00
