tl - Tümosan

INVESTOR PRESENTATION
MAY 2014
2
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.
2012
Net Sales
TL 291.6 Mn
EBITDA
TL 39,2 Mn
Net Income
TL 29.5 Mn
EBITDA margin
13,4%
•  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.
2013
Net Sales
TL 445.1 Mn
EBITDA
TL 79,5 Mn
Net Income
TL 62.1 Mn
EBITDA margin
18%
3
OWNERSHIP STRUCTURE
Before IPO
3% 3% 3% 3% 3% 7% 78% Ereğli Teks1l Turizm San. Ve Tiç. A.Ş. Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Free Float Other 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
-
-
105.000.000
100 %
TOTAL
TL 105mn
Capital Before IPO
4
OWNERSHIP STRUCTURE 1Q14
Post IPO
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 %
Partner
20% 2% 2% 2% 2% 2% 2% 1% 68% Ereğli Teks1l Turizm San. Ve Tiç. A.Ş. Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Hedef Girişim Sermayesi YaUrım Ortaklığı A.Ş. Free Float Other TL 115mn
Capital Post IPO
5
MILESTONES – BEFORE PRIVATISATION
6
MILESTONES – AFTER PRIVATISATION
7
MILESTONES – WAY AHEAD
8
DEALER AND SERVICE NETWORK
114 DEALERS AND 384 AUTHORIZIED SERVICES LOCATED IN 65 CITIES.
9
DEALER AND SERVICE NETWORK
15 DEALERS ABROAD.
10
RESEARCH AND DEVELOPMENT
TÜMOSAN Research and
Development Center has
been active in ITU
Teknopark / ISTANBUL.
Laboratories are located
in KONYA.
Test facilities are located
in KONYA.
11
RESEARCH AND DEVELOPMENT
Completed Projects
Ongoing 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
•  115 HP Tractor.
•  4WD Front Axle.
•  16x16 Gear Box.
•  Stage III-A and
Stage III-B Diesel Engine.
Transmission.
•  Stage IV 6 cylinder new
generation engine.
•  Cotton Picker.
•  ECU - TCU
•  Sprayer.
12
R&D EXPENDITURE BREAKDOWN
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
0,7
Stage 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
Total
7,6
7,7
7,2
Projects, Million TL
13
AGRICULTURAL SECTOR
14
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.
Agricultural Holdings
Land Distribution
31%
18%
18%
11%
10%
6%
5%
15
AGRICULTURAL SECTOR
•  As of the year 2012, the Agricultural Gross Domestic Product (AGDP) is 8.2 % of the total GDP with
62.5 billion $.
• 
In terms of agricultural economy, Turkey ranks first of Europe and seventh of the world as of 2012.
Agricultural Produc.on ($ Bl) 70
60
50
40
30
20
10
0
45
24
30
37
43
49
56
62
62
63
51
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
16
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.
Anticipated scrap incentive plan.
17
COMPARISON OF TR & EU AGRICULTURAL SECTOR
Chosen Indicators
Turkey
EU
6.8 Ha
17.5 Ha
Agricultural Employment
26 %
6%
Average Tractor Power
70 HP
> 100 HP
4WD Tractor Rates
65 %
95%
23
10
Size of Holdings
Average Tractor Age
18
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
secure success in the market.
19
TRACTOR MARKET
20
TRACTOR MARKET OF TURKEY
2012 - 2014 TUMOSAN Sales
2012 – 2014 Tractor Market
2012 / 3 2013 / 3 2013 2014 / 3 53803 51033 60000 2012 8626 50000 6953 40000 30000 8693 20000 10766 9070 1361 1271 1527 10000 0 2012 / 3 2012 2012 / 3 2012 2013 / 3 2013 / 3 2013 2013 2014 / 3 2014 / 3 2012 / 3 2012 TUMOSAN
2013 / 3 TUMOSAN
2013 2014 / 3 TUMOSAN
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
21
TRACTOR MARKET OF TURKEY
53,922 60,304 53,803 54,731 49,297 43,706 34,589 24,951 51,033 42,033 34,525 33,989 36,576 34,541 24,241 22,954 16,639 10,587 9,571 14,000 8,127 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 AVERAGE 35.706 TRACTORS
22
DEVELOPMENTS IN TRACTOR SECTOR 1993 - 2013
Vineyard & Orchard
Tractors
10% 5% 75% 65% 3.5 fold increased in
vineyard orchard segment. 0% 70% 70% 65% 40% 20% 2%
Average HP
80% 60% 7%
0% 4WD Tractors
60% 9% 7 fold increase in 4WD,
reached 65%.
59% 55% 50% Tractor power has
increased by 20 % close to
70 HP.
23
TRACTOR PARK
704,506
302,647
48%
21%
•  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.
459,055
31%
25 Years ≥ 10 -­‐ 25 Years •  Government has a plan to modernize the park with
a scrap incentive program.
10 Years ≤ 24
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
14,63 %
14,70%
14,18%
Market Share
2012/3
TotalSales
Sales
Total
8.693
8.693
2013/3
Market Share
14,63%
Tümosan
Sales Volume 1.271
Total Sales
9.070
2014/3
Market Share
14,70%
Tümosan
Sales Volume 1.361
Total Sales
10.766
Market Share
14,18%
Tümosan
Sales Volume 1.527
25
HP ASSESSMENT
16,000 45.00% 2013 HP VOLUME 14,000 40.00% 2013 HP Market Share 35.00% 12,000 30.00% 10,000 25.00% 8,000 20.00% 6,000 15.00% 4,000 10.00% 2,000 5.00% 0 0.00% < 50 HP 50-­‐59 HP 60-­‐69 HP 70-­‐79 HP 80-­‐89 HP 90-­‐99 HP 100-­‐109 110-­‐149 HP HP 2013 TUMOSAN < 50 HP 50-­‐59 HP 60-­‐69 HP 70-­‐79 HP 80-­‐89 HP 90-­‐99 HP 100-­‐109 110-­‐149 HP HP 2013 Total 2013 Market Share 2013 TUMOSAN Market Share 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%
100-109 HP
1.960
820
3,64%
41,84%
110-149 HP
3.131
-
5,82%
-
HP
26
TUMOSAN SALES VOLUME (SALES TO DEALERS)
1.892
1,572
%-­‐16,91
2013/03
2014/03
Sales and Production
2013/3
2014/3
%
Sales (Sales to Dealers)
1.892
1.572
-16,91%
Production
1.783
2.565
43,86%
27
TUMOSAN EXPORT VOLUME
129
378% 27
2013/3
EXPORT
2014/3
2013/3
2014/3
%
27
129
378%
28
PUBLIC OFFERING AND FINAL SITUATION
29
FINANCIAL HIGHLIGHTS
Million TL
2013/3
2014/3
Revenues
90.3
83.5
Gross Profit
19.1
14.4
21%
17%
17.7
8.3
19%
9%
18.5
9.6
20%
11%
16.4
6.1
18%
7%
Margin
Operating Profit
Margin
EBITDA
Margin
Net Income
Margin
30
COMPARATIVE BALANCE SHEET
Liquid Assets Mn TL
2013/3
2014/3
Cash and Cash Equivalents
Financial Invest.
Commercial Receivables
0.4
71.4
2.3
0.2
58.2
Commercial Receivables from Non-Affiliates
71.4
57.7
-
0.5
0.13
84.6
76
38.7
271.2
1.1
1.1
135.8
1.3
35.8
234.7
2013/3
2014/3
Other Receivables
Other Receivables from Affiliates
Investment Properties
Tangible Fixed Asset
Intangible Fixed Assets
Other Intangible Fixed Assets
Other Fixed Assets
Total Fixed Assets
0.4
73
0.7
74.1
6
6
0.3
95.6
6.9
108.8
Total Assets
345.3
343.5
Commercial Receivables from Affiliates
Other Receivables
Receivables from Affiliates
Other Receivables from Affiliates
Stocks
Prepaid Expenses
Other Liquid Asset
Total Liquid Assets
Fixed Assets Mn TL
31
COMPARATIVE BALANCE SHEET
Short Term Liabilities , Mn TL
Short Term Loans
2013/3
37.5
2014/3
29.1
-
-
Other Financial Liabilities
Trade Payables
Current Payables to Affiliates
Current Payables to Non-Affiliates
Due from Employee Benefits
Deferred Income
Period Income Tax Liability
Short Term Provisions
66.5
66.5
0.3
4.5
1.6
59.3
59.3
1.2
1.9
2.3
7.8
Short Term Provisions for Employee Benefits
0.3
0.5
0.5
15.7
126.9
2013/3
0.6
1.6
7.3
0.3
101.9
2014/3
2.4
1.6
2.4
1.1
3.3
2013/3
115
26.2
39.4
1.6
4
2014/3
115
13
39.4
-
0.1
0.08
17.8
16.7
215.1
345.3
4
56.4
6.1
3.6
237.6
343.5
Current Portion of Amounts Payable after One Year
Other Short Term Provisions
Other Short Term Liabilities
Total Short Term Liabilities
Long Term Liabilities, Mn TL
Long Term Loans
Long Term Provisions
Long Term Provisions for Employee Benefits
Deferred Tax Liability
Total Long Term Liabilities
Equities, Mn TL
Paid-up Capital
Share Premiums
Fixed Tangible Asset Valuation Fund
Actuarial Gain/Loss Fund from Pension Plan
Reserves on Retained Earnings
Losses from Previous Years
Net Income for the Period
Non-Controlling
Total Equities
Total Liabilities and Equities
32
COMPARATIVE INCOME TABLE
2013/3
2014/3
Sales Income
Sales Expense: (-)
Gross Profit
90.2
-71.1
19.1
83.4
-69.1
14.3
Research and Development Expenses
-0.5
-1.5
Marketing and Sales Expenses
Administrative Expenses
Other Operative Income
-0.3
-1.1
0.6
-2.9
-2
0.8
Other Operative Expenses
-0.07
-0.4
Operating Profit
Financial Income
Financial Expenses
17.7
6.6
-4.3
8.3
1.2
-1.1
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
Revaluation Fund
*[Actuarial Gain/Loss for Employee Benefits
0.2
0.06
-
-
16.6
6.1
Real Operating Income, Million TL
Pretax Profit
Tax Influence
Total Comprehensive Income
33
DEBT PROFILE
Change in Debt.
•  TL 2.4 mn out of TL 3.5
mn has been paid out.
21.4 611% 3.5 2012
2013
34
DEBT 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
Total TL Mn
29.1
35
FX EXPOSURE
FX Based Trade Payables.
22% 14% 2011 2013 •  22% of the trade
payables 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.
36
CAPEX DEVELOPMENT EXPECT CASTING (TL MN)
22.7
9.5
11,2
5,2
3.5
3.4
2012
10,0
2013
2014
2015
2016
2017
2018
Construc1on took the largest part in 2013 and CNC investment was the second. Machinery will receive bulk of investment 2014 onward. 37
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.
•  Construction & Maintanence.
38
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
-
5
7
9
3
Workshop
0.3
1.3
1.0
-
-
Construction & Maintenance
1.2
1.2
0.5
0.5
0.5
Total TL Mn
3.5
9.5
10.0
11.2
5.2
Engine Production Line
39
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
transfert to share holders as of March 13 2014.
40
OWNERSHIP STRUCTURE - TD
Before Acquisition
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
TOTAL
10.000.000
100 %
Partner
3% 3% 3% 3% 3% 78% 7% Ereğli Teks1l Turizm San. Ve Tiç. A.Ş. Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Other 41
OWNERSHIP STRUCTURE - TD
After Acquisition
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 %
Partner
8% 3% 3% 3% 3% 3% 7% 70% TUMOSAN Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Ereğli Teks1l Turizm San. Ve Tiç. A.Ş. 42
TUMOSAN FOUNDRY
Established in
2012
Employees
33/67
Capacity (T/Y)
5.000/10.000
Cast Alloy
Grey Iron
Moulding
Automatic-Horizontal
Market Value
21.999.627,00 TL
43
TURKISH FOUNDRY INDUSTRY
INDICATORS
2011
Number of Foundry
1.040
GDP Share of Sector
Sales (€)
0,5
2.500.000.000
Sector Growth Rate
+11
Global Market Share (%)
1.5
Import Ratio in Product (%)
20
Average Net Profit (%)
5-8
44
TURKISH FOUNDRY INDUSTRY PRODUCTION (TON)
Produc.on (Ton) 2,000,000
1,800,000
1,500,000
1,600,000
1,400,000
1,200,000
1,000,000
905,000
800,000
518,000
600,000
400,000
200,000
161,000
217,000
360,000
0
1961
1971
1981
1991
2001
2011
45
TUMOSAN CASTING REQUIREMENT
REQUIREMENT/COST SAVING JUSTIFIES INVESTMENT 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
YEAR
46
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
2018
36.000
151.200.000
10.584.000
47
Focus on local industry.
Meeting requirements of customers.
Minimized capital expenditures.
Short research and development period.
Efficient team with profound expertise.
MARKET DIVERSIFICATION
PRODUCT DIVERSIFICATION
STRATEGY GUIDANCE
49
THANK YOU
FOR FURTHER INFORMATION PLEASE E-MAIL
[email protected]
OR CALL TUMOSAN INVESTOR RELEATIONS AT
+90 212 468 19 00
50