INVESTOR PRESENTATION SEPTEMBER 2014

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INVESTOR PRESENTATION SEPTEMBER 2014

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Company Profile

LARGEST MANUFACTURING

CAPACITY IN TURKEY.

TUMOSAN manufactures diesel engine and tractors

in a closed area of 93.000 m2_{on its own}

property of 1.6 million m2_.

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.

Company Profile

2012

NET SALES TL291.6 Mn NET INCOME TL29.5 Mn EBITDA TL 39,2 Mn EBITDA MARGIN

2013

NET SALES TL 445.1 Mn NET INCOME TL 62.1 Mn EBITDA TL 79,5 Mn EBITDA MARGIN 13,4% 18%

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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

105 mn

CAPITAL

BEFORE IPO Ownership Structure Company Profile BEFORE IPO Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK 78% 7% 3%_3% 3% 3% 3% 3%

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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 %

Ownership Structure

Company Profile

POST IPO

Partner Capital (TL) _{Capital (%)}Share in

Ereğli Tekstil Turizm San. ve Tic. A.Ş. 77.285.492,15 67,20 %

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 24.214.507,85 21,06 % TOTAL 115.000.000,00 100,00 % Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Nuri ALBAYRAK Free Float Bayram ALBAYRAK 67.20% 21.06% 1.74% 1.74% 1.74% 1.74% 1.74% 1.30%

POST IPO

TL 115 mn

CAPITAL

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Milestones – Before Privatisation

Company Profile

1976

TUMOSAN has been founded as a State Economic Enterprise.

1983

The tractor assembly commenced.

1987

Engine production commenced.

1986

The tractor and engine mechanical workshop was completed.

1989

The licence agreement with FIAT terminated.

1993

Tractor production re-started.

2004

Albayrak Group takeover through privatization.

1977

A licence agreement has been signed with the FIAT Company

1981

Engine assembly commenced.

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Milestones – After Privatisation

Company Profile

2005

Commencement Engine-Tractor Production 1 October 2007 65 - 74 - 82 HP

2009

Introduction of Stage III - A Engine.

2011

Production of 16x16 gearbox.

2010

Production of 4WD axle.

2012

IPO

2013

Tractor with 105 HP.

2014

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Tractor with 115 HP Acqusition of %70 of Faundry shares.

2014

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2006

Introduction of new models with Stage-II engines.

2008

Expansion of engine rage to 50 - 95 HP.

Altay Battle Tank Powerpack.

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Milestones - Way Ahead

Company Profile

2014/11

Transaxle with powershift. Engine with 4 valves. Introduction of tractor with 125 HP.

2015

Production of

6 cylinder diesel engine. 32x32 Gearbox

Transaxle with power shuttle

2017

Production of new generation 4-6 cylinder diesel engines 200 HP Loader - Backhoe Loader

2016

Cotton Picker Sprayer

2018

Harvester

2014

/9

Acqusition of %30 of Faundry shares.

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Dealers and Services Network

114 Dealers and 384 authorized services located in 65 cities.

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Dealers and Services Network

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Research and Development

Company Profile TUMOSAN

Research and Development Center has been active in

ITU Teknopark / ISTANBUL.

Test facilities are Located in KONYA.

Laboratories are located in KONYA.

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Research and Development

Company Profile

•  115 HP Tractor. •  4WD Front Axle. •  16x16 Gear Box. •  Stage III-A and

Stage III-B Diesel Engine.

Completed Projects

•  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.

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R&D Expenditure Breakdown

Company Profile

Projects, Million TL 2014 2015 2016 2017

4 Valve 4 Cylinder Diesel Engine 0,7 -

4 Valve 6 Cylinder Diesel Engine 1,6 2,0 2,8 -

32x32 Gear Box 0,7 0,8 - -

Transaxle with Power Shuttle 0,4 - - -

Lpg / Cng Engine 0,3 0,4 0,4 -

Stage IV 6 Cylinder 2,6 1,5 2,7 1,1

Cotton Picker 0,8 0,9 1,4

Sprayer 0,6 0,6 1,5 -

ECU – TCU Design 0,8 1,3 1,8 -

Telehandler - 1,1 1,7 1,2

Backhoe Loader - 0,3 1,9 1,4

Loader - 0 0,7 1

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15 6% 10% 18% 31% 18% 11% 5% 6% 10% 18% 31% 18% 11% 5% Agricultural Sector 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 1991 2001 2012 0.0 0.0 2.0 4.0 0.5 1.0 2.5 5.0 1.0 2.0 3.0 6.0 4.0 8.0 1.5 3.0 3.5 7.0 4.5

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Agricultural Sector

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) $

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17 Subsides Agricultural Sector

50 %

of the credit interest is subsidized.

50 %

of the cost of orchard tractors are subsidized.

50 %

of the cost of tractors for under developed regions are subsidized.

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Comparison of TR & EU Agricultural Sector

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2014 Outlook

Agricultural Sector Interest rate of agricultural credits and subsidies support sales.

Agricultural output fall 10 % due to adverse weather conditions. Sales numbers will relatively be equal to 2013.

Cost production is higher due to fx based imports & procurement. Competition between local producers cause reduction of the profit.

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Tractor Market of Turkey

Tractor Market

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22 0 10,000 20,000 30,000 40,000 50,000 60,000 2012/9 2012 2013/9 2013 2014/9 37,117 51,032 36,049 53,803 41,566 2012 – 2014 Tractor Market 2012/9 2012 2013/9 2013 2014/9 2012/9 2012 2013/9 2013 2014/9 4,885 6,953 5,368 8,626 5,808 2012-‐2014 TUMOSAN Sales 2012/9 2012 2013/9 2013 2014/9

Tractor Market of Turkey

Tractor Market

2012/9 2012 2013/9 2013 2014/9

Total 37.117 51.032 36.046 53.803 41.566

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Developments in Tractor Sector 1993 - 2013

Tractor Market

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

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Tractor Park

Tractor Market

• 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.

25 years ≥ 10-25 years 10 years ≤

48% 31% 21%

704.506

459.055

302.647

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Sales Volume (Turkish Statical Institute Figures)

Tractor Market

Total Sales

2012 / 6 2013 / 6 2014 / 6

Total Sales Total Sales

Market Share

Market Share Market Share

TUMOSAN

Sales Volume TUMOSANSales Volume TUMOSANSales Volume

13.16% _14.89% 13.97%

4.885 5.368 5.808

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26 HP Assessment Tractor Market 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 HP 2013 HP Market Share

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TUMOSAN Sales Volume (Sales to Dealers)

Tractor Market

6.315

6.015

2013/9 2014/9

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TUMOSAN Export Volume

Tractor Market 101 128% 230 2013/9 2013/9 2013/9 2014/9 % EXPORT 101 230 128%

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Financial Highlights

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Comparative Balance Sheet

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Comparative Balance Sheet

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Comparative Income Table

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FX Exposure

Financial Review

•  22% of the trade payables was FX based.

•  Need exit strategy.

•  With the exception of diesel pump and injectors

localisation is possible. •  4WD axle already localised. •  Transaxle for compact

tractor and hydraulic lift are planned to be localized.

2011

22%

2013

14%

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Local Productions Saving

Financial Review 5.500.000 TL 6.000.000 TL 6.500.000 TL 7.000.000 TL 7.500.000 TL 7.214.426 TL 6.078.514 TL -‐ 16%

COST OF HYDRAULIC LIFT

OTHER COMPANY TUMOSAN

9.000.000 TL 9.500.000 TL 10.000.000 TL 10.500.000 TL 11.000.000 TL 10.708.436 TL 9.851.761 TL -‐ 8%

COST OF TRANSAXLE

OTHER COMPANY TUMOSAN

13.000.000 TL 13.500.000 TL 14.000.000 TL 14.500.000 TL 15.000.000 TL 14.946.618 TL 13.750.887 TL -‐ 8% COST OF FRONT AXLE

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Capex Development Except Casting (TL Mn)

Financial Review 2012 3.4 2013 22.7 2014 3.5 2015 9.5 2016 10.0 2017 11.2 2018 5.2

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Capex Items

Financial Review

• 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.

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Capex Breakdown

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IPO Conditions

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40 Ownership Structure - TD Financial Review Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK 78% 7% 3% 3% 3% 3% 3% 3%

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 %

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Ownership Structure - TD

Financial Review

TUMOSAN 10.000.000 100 %

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42 Tumosan Foundry Financial Review Established in 2012 Employees 33/67 Capacity (T/Y) 8.000/16.000

Cast Alloy Grey Iron

Moulding Automatic-Horizontal

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Turkish Foundry Industry Production (Ton)

REQUIREMENT/COST SAVING JUSTIFIES INVESTMENT

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Income / Profit Expectations

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Strategy Guidance

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