INVESTOR PRESENTATION SEPTEMBER 2014

Transcription

1 INVESTOR PRESENTATION SEPTEMBER

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3 Company Profile LARGEST MANUFACTURING CAPACITY IN TURKEY. TUMOSAN manufactures diesel engine and tractors in a closed area of m 2 on its own property of 1.6 million m 2. Engine manufacturing capacity: items/year-three shifts. Conform with the European Union emission standard Stage III-A. 3 Cylinder engines are; HP. 4 Cylinder engines are; HP. Tractor manufacturing capacity: /year-three shifts. Tractors between HP with 3 and 4 cylinders NET SALES TL Mn NET INCOME TL 29.5 Mn 2013 NET SALES TL Mn NET INCOME TL 62.1 Mn EBITDA TL 39,2 Mn EBITDA MARGIN 13,4% EBITDA TL 79,5 Mn EBITDA MARGIN 18% Company Profile 3

4 Ownership Structure 7% BEFORE IPO 78% 3% 3% 3% 3% 3% 3% Muzaffer ALBAYRAK Bayram ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Nuri ALBAYRAK Partner Capital (TL) Share in Capital (%) Ereğli Tekstil Turizm San. ve Tic. A.Ş % Muzaffer ALBAYRAK % Bayram ALBAYRAK % Nuri ALBAYRAK % Kazım ALBAYRAK % Mustafa ALBAYRAK % Ahmet ALBAYRAK % Hedef Girişim Sermayesi Yatırım Ortaklığı A.Ş. - - Free Float - - TOTAL % TL 105 mn CAPITAL BEFORE IPO Company Profile 4

5 Ownership Structure 21.06% POST IPO 67.20% 1.74% 1.74% 1.74% 1.74% 1.74% 1.30% Free Float Bayram ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Nuri ALBAYRAK Partner Share in Partner Capital Capital (TL) (TL) Share Capital in (%) (%) Ereğli Tekstil Turizm San. San. ve Tic. ve A.Ş. Tic. A.Ş , ,20 % % Muzaffer ALBAYRAK , ,74 % % Bayram ALBAYRAK Bayram ALBAYRAK , ,74 % % Nuri ALBAYRAK Nuri ALBAYRAK , % 1,74 % Kazım ALBAYRAK % Kazım ALBAYRAK ,00 1,74 % Mustafa ALBAYRAK % Mustafa ALBAYRAK ,00 1,74 % Ahmet ALBAYRAK % Hedef Ahmet Girişim ALBAYRAK Sermayesi Yatırım Ortaklığı A.Ş ,00-1,74 % - Free Hedef Float Girişim Sermayesi Yatırım Ortaklığı A.Ş ,00-1,30 - % TOTAL Free Float , ,06 % % TOTAL ,00 100,00 % TL 115 mn CAPITAL POST IPO Company Profile 5

6 Milestones Before Privatisation 1981 Engine assembly commenced TUMOSAN has been founded as a State Economic Enterprise A licence agreement has been signed with the FIAT Company 1986 The tractor and engine mechanical workshop was completed The tractor assembly commenced The licence agreement with FIAT terminated Engine production commenced Albayrak Group takeover through privatization Tractor production re-started. Company Profile 6

7 Milestones After Privatisation 2008 Expansion of engine rage to HP Commencement Engine-Tractor Production 1 October HP 2006 Introduction of new models with Stage-II engines Production of 4WD axle Introduction of Stage III - A Engine IPO 2011 Production of 16x16 gearbox. 2014/3 Tractor with 115 HP Acqusition of %70 of Faundry shares Tractor with 105 HP. 2014/8 Altay Battle Tank Powerpack. Company Profile 7

8 Milestones - Way Ahead 2014/11 Transaxle with powershift. Engine with 4 valves. Introduction of tractor with 125 HP Cotton Picker Sprayer 2018 Harvester 2014/9 Acqusition of %30 of Faundry shares 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 Company Profile 8

9 Dealers and Services Network 114 Dealers and 384 authorized services located in 65 cities. Company Profile 9

10 Dealers and Services Network Company Profile 10

11 Research and Development TUMOSAN Research and Development Center has been active in ITU Teknopark / ISTANBUL. Laboratories are located in KONYA. Test facilities are Located in KONYA. Company Profile 11

12 Research and Development Completed Projects 115 HP Tractor. 4WD Front Axle. 16x16 Gear Box. Stage III-A and Stage III-B Diesel Engine. Ongoing Projects 4 Valve 4 cylinder 125 HP and 4 valve 6 cylinder HP engine. 32x32 Gear Box. LPG CNG Engine. 16x16 Full Powershift Transmission. Stage IV 6 cylinder new generation engine. Cotton Picker. ECU - TCU Sprayer. Company Profile 12

13 R&D Expenditure Breakdown Projects, Million TL 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, 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 Total 8,5 8,9 14,9 4,7 Company Profile 13

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15 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. Land Distribution % 18% 31% 31% 31% 18% 18% 18% 10% 10% 10% 6% 6% 6% 5% 5% 5% 11% 11% 11% 18% Agricultural Sector 15

16 Agricultural Sector As of the year 2012, the Agricultural Gross Domestic Product (AGDP) is 8.2 % of the total GDP with 62.5 billion $. In terms of agricultural economy, Turkey ranks first of Europe and seventh of the world as of Agricultural Produc.on ($ Bl) Agricultural Sector 16

17 Subsides 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. Agricultural Sector 17

18 Comparison of TR & EU Agricultural Sector Agricultural Sector 18

19 2014 Outlook 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 Cost production is higher due to fx based imports & procurement. Competition between local producers cause reduction of the profit. Agricultural Sector 19

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21 Tractor Market of Turkey AVERAGE TRACTORS. Tractor Market 21

22 Tractor Market of Turkey Tractor Market TUMOSAN Sales 60,000 50,000 40,000 30,000 20,000 10, ,032 53,803 41,566 37,117 36, / / /9 2012/ / /9 8,626 6,953 5,368 5,808 4, / / /9 2012/ / /9 2012/ / /9 Total TUMOSAN Tractor Market 22

23 Developments in Tractor Sector % 5% 0% Vineyard & Orchard Tractors 2% 7% 80% 60% 40% 20% 0% 4WD Tractors 9% 65% 75% 70% 65% 60% 55% 50% Average HP 59% 70% 3.5 fold increased in vineyard orchard segment. 7 fold increase in 4WD, reached 65%. Tractor power has increased by 20 % close to 70 HP. Tractor Market 23

24 Tractor Park The size of tractor park is Average age is 23 years. The average age of tractor is 34 years old. Government has a plan to modernize the park with a scrap incentive program % % 25 years years 10 years % Tractor Market 24

25 Sales Volume (Turkish Statical Institute Figures) 2012 / / / Market Share Market Share Market Share 13.16% 14.89% 13.97% 6 TUMOSAN TUMOSAN TUMOSAN Sales Volume Sales Volume Sales Volume Total Sales Total Sales Total Sales Tractor Market 25

26 HP Assessment HP VOLUME < 50 HP HP HP HP HP HP HP HP 45,00% 40,00% 35,00% 30,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00% 2013 HP Market Share < 50 HP HP HP HP HP HP HP HP 2013 TUMOSAN 2013 Total 2013 Market Share 2013 TUMOSAN Market Share Tractor Market 26

27 TUMOSAN Sales Volume (Sales to Dealers) /9 2014/9 Tractor Market 27

28 TUMOSAN Export Volume % /9 2013/9 2013/9 2014/9 % EXPORT % Tractor Market 28

29 2014 Outlook 29

30 Financial Highlights Financial Review 30

31 Comparative Balance Sheet Financial Review 31

32 Comparative Balance Sheet Financial Review 32

33 Comparative Income Table Financial Review 33

34 FX Exposure FX Based Trade Payables. 22% 14% 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 Financial Review 34

35 Local Productions Saving COST OF FRONT AXLE COST OF HYDRAULIC LIFT TL TL TL TL - 8% TL TL TL TL TL - 16% TL TL TL TL OTHER COMPANY TUMOSAN TL OTHER COMPANY TUMOSAN COST OF TRANSAXLE TL TL TL TL TL TL OTHER COMPANY TUMOSAN - 8% TL Financial Review 35

36 Capex Development Except Casting (TL Mn) Financial Review 36

37 Capex Items Installed tractor production capacity to be increased to 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. Financial Review 37

38 Capex Breakdown Financial Review 38

39 IPO Conditions Financial Review 39

40 Ownership Structure - TD 3% 3% 3% 3% 3% 3% 7% 78% Muzaffer ALBAYRAK Bayram ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Nuri ALBAYRAK Partner Capital (TL) Share in Capital (%) Ahmet ALBAYRAK % Bayram ALBAYRAK % Kazım ALBAYRAK % Nuri ALBAYRAK % Mustafa ALBAYRAK % Muzaffer ALBAYRAK % Ereğli Tekstil Turizm San. ve Tic. A.Ş % TOTAL % Financial Review 40

41 Ownership Structure - TD Partner Capital (TL) Share in Capital (%) TUMOSAN % TOTAL % Financial Review 41

42 Tumosan Foundry Established in 2012 Employees 33/67 Capacity (T/Y) 8.000/ Cast Alloy Grey Iron Moulding Market Value Automatic-Horizontal ,00 TL Financial Review 42

43 Turkish Foundry Industry Production (Ton) REQUIREMENT/COST SAVING JUSTIFIES INVESTMENT Financial Review 43

44 Income / Profit Expectations Financial Review 44

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46 Strategy Guidance Strategy 46

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