Engine and Tractor Presentation for Investors 2013
Legal Warning CONFIDENTIAL • This presentation is prepared by the Investor Relations Department of TÜMOSAN Engine and Tractor Industry Inc. It shall not be used as a marketing document on no account. • It is forbidden to misuse the presentation. Otherwise, TÜMOSAN Engine and Tractor Industry Inc. refuses responsibility for any legal and penal obligations that may arise. • This presentation and its content are confidential. It is strictly forbidden to reproduce, copy and disclose to third persons even in part under no circumstances. • Although the expectations reflected in this presentation are considered logical, these expectations might be effected by possible changes in various factors and assumptions and thus, there might be significant differences between the obtained results and expectations. • TÜMOSAN, its top executives, managers, employees and any other person shall not be held responsible for the damages that may arise from utilization of this presentation. 1 Presentation for Investors June 2013
ALBA YRAK Group
Group • Albayrak Groupcarries on its operations that began in 1952 in construction industry with more than 20 companies that are active in 6 differentindustries listed below. Service • Beginning its garbage collection b u si n e s s during the « g a rb a g e cri si s» of 1992 in İstanbul, Albayrak Group is the biggest company in Garbage Co l l e c ti o n and Waste M a n a g e me n t fields with 830 v eh i cl e s and 5 .50 0 personnel. In a d di tio n i t ca rri e s on i t s waste management b u si n e ss in Iraq an d Pakistan with 400 v e hi cl e s an d 7.000 personnel. Apart from garbage collection, i t has b ee n providing se rvi ce s such as me te r reading, invoicing, maintenance opening- closing to institutions like İSKİ, TEDAŞ, İGDAŞ as of 1995. Albayrak Group provides services in service industry with more than 13 thousand personnel. Undertaking and Real Estate • Growing rapidlydue to the fast momentum of urbanization in Turkeyduring 50s, AlbayrakGroup hasrecently completed importantprojects which include İstanbul Taksim metro and many housing projects. Logistics • First business apart from construction industry was personnel transportation business commenced in 1982.Albayrak Groupis one of the biggest inner city service companies in the country today with a vehicle fleet of 2.500 cars • Albayrak Group'sCar Rental Company, established in1995 serves to private sectora n d publicinstitutions with 1.500 cars and minibuses today. • Trabzon Portwhich was acquired through privatization has a handling capacity of 5 million tons per year and it has been managed by Albayrak Group as of 2003. 3 Presentation for Investors June 2013
Group Industry •Ereğli Tekstil which was established by Sümerbank in 1937 was acquired by the Group in 1997 throughprivatization and modernized . Theplant carries on its business in anindoor area of 46.500 square metersand has a daily production capacity of fabric and 12.000 kg thread today . •Balıkesir Paper Factorywhich was acquired through privatizationin 2003 was only modernized dueto legal process and it will have a production capacity of 200 tons of paper per year with an investment of 30 million € . • Facilities of Tümosan which was acquired through privatization in 2005 are built on an area of 1.6 millionsquare meters in Konya, 93 thousand of which are indoor area and it has an annual production capacity of45.000 tractors and 75.000 diesel engines in three shifts. • Kademe company went into action in Konya, in 2012 to produce on-vehicle equipment and street sweeping vehicles. • TÜMOSAN Döküm is located in Konya, in the same region with tractorand engine production facilities and it covers an area of 100.000 square meters,11.000 square meters of which is indoor area. Media • Albayrak Groupincludes Yeni Şafak Newspaper which began its publication life in 1995 and TV Net television which has been broadcasting as of 2007. Tourism • Birun Otelcilik within Albayrak Group runstableland tourism facilities composed ofmountain huts built in Kümbet Village Koç Tableland at an altitude of 2.300 meters. • Moreover the group plans todevelop holiday village projectson tourism areas that it owns in Marmaris and Didim. 4 Presentation for Investors June 2013
Agriculture in the World and in Turkey
Agriculturein Turkey and EU Number of Establishments 2.300.000 10.000.000 Average Establishment Size (Ha) 6.8 17.4 26 163 Total Agricultural Land (million ha) 8 1.9 Share of Agriculture in G N P (%) WheatYield (kg/da) 265 570 3.602 9.286 GDP per capita inagriculture ($) 1.500.000 15.000.000 Number of Tractors TractorOwnership of Establishments 65 150 (%) AveragePower of Tractors (HP) 60 100 6 Presentation for Investors June 2013
Agriculture in Turkey Manyproducts of Turkey are among the top 10 in world production. Hazelnut, Apricot,Fig, Cherry, Sour Cherry,Quince, Poppy, Watermelon, Melon, Products that Strawberry, Leek, Honey vetch rank first: Products that Lentil, Apple, Cucumber, Green Pepper, Green Beans, Chestnut rank second: Pistachio Products that Lentil, Apple, Cucumber, Green Pepper, Green Beans, Chestnut rank third: Pistachio Products that rank Tomato, Mandarin, Spinach, Walnut, Chickpea, Wax fourth: Sugar Beet, Tea, Eggplant, Olive Products that rank fifth: Products that Grape, Onion, Peach, rank sixth: Safflower Pear, Lemon,Grapefruit, Barley, Cotton, Products that Oat, rank seventh: Almond, Mutton Products that rank eighth: 7 Presentation for Investors June 2013
AGRICULTURAL SECTOR - • There is 38 million hectares of agricultural land in Turkey. Our country is among the first 15 countries in the world GENERAL OVERVIEW Agricultural Production in Turkey with24 million hectares of cultivated agricultural land. • As of 2012, Agricultural share of Gross DomesticProduct (GDP) in total GDP is 8.0% with USD 61.8 billion. Turkeyhas the 7th biggest agricultural economy in the world. • Average compound annual growth rate was 11.2% between 2002-2011 and growth rate of GDP in the same periodwas 14.4%. Agricultural Agricultural Production GDP Production Million $ Share % • While agricultural sector constituted approximately 45% of total employment in 90s, today Agricultural Land in Turkey Million Ha this rate is only 26% with total employment of 6.1 million people in agricultural Meadow Cultivated 15.7 Pasture 14.6 sector. • There aremore than 2.3 million establishments in the sector. While37.2% of these establishments onlydeal with plant production, therest is dealing withboth plant and animal production. Olive Tree 0.8 • While the share of agricultural products was 3.7% of of the foreign trade in 2011, thecompound Vineyard 0.5 Fallowing 4.0 Other Fruits Vegetable 1.8 Gardens 0.8 annual growth rate ofagricultural productimport was increased by 20.7% in average per year and the rate of increase was 12% in average per year in export between 2002-2011. • Turkeyis among the top 10 in the world regarding production of many agricultural products: 8 Presentation for Investors June 2013 Hazelnut (1), Watermelon (2), Sugar Beet (4), Tomato (4),M a nd arin (4), Barley (6), Grape (6), Wheat (10). TUİK
AGRICULTURAL Agricultural Establishments • Whengeneral agricultural structure of Turkey is compared with developed countries, fragmented ESTABLISHMENTS land structure limitedestablishment size, lack of input grab attention. • While average establishment size in our country is around6.8 hectares,average establishment size inEuropean Unioncountriesisaround 17.4 hectares. • In terms of land size, agricultural establishments are intensified in the range of 2- 5hectares with 31%. Number of Size of Establishment Ha Establishments • As a result offragmented land structure and high number of establishments in proportion to agricultural Million Land Distribution Based on land in the country, 83% of the current establishments carry on their business on lands smaller than 10 Agricultural Establishments hectares . • In recent yearsfragmented small scale agricultural lands arecompounded and number of establishments decreased but the number of establishments that own a land covering 100 hectares and above is around 4.500. • Agricultural lands of establishments are fragmented. 45% of the total cultivated land has 4 – 9 fragments. Only 11% of the lands is in one piece. • Ministry of Agriculture considers prevention of fragmentation of lands by inheritance and increasing *Data of2011 and 2012 are compiled from estimated data of Farmer Registration the average establishment size via consolidation by rehabilitating theexisting structure as priority Source: Tarmakbir, TSI, Ministry of Food Agriculture System and TSI . Source: TSI, Eurostat and Livestock issues. 9 Presentation for Investors June 2013
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