PRESENTATION February 2015 A SUBSIDIARY OF THE TURKISH - PowerPoint PPT Presentation

INVESTOR PRESENTATION February 2015 A SUBSIDIARY OF THE TURKISH AGRICULTURAL CREDIT COOPERATIVIES

Gübre Fabrikaları T.A.Ş Date of Establishment 25.12.1952 Paid Capital 334.000.000TL Listing Borsa Istanbul (BIST) Ticker Symbol GUBRF 2

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OWNERSHIP STRUCTURE Main Shareholder - The Central Union of Turkish Agricultural Credit Cooperatives Public Shares 24,05% 75,95% 4

THE CENTRAL UNION OF TURKISH AGRICULTURAL CREDIT COOPERATIVES Strategic Relationship • Leading agricultural cooperatives with Gübretaş • Founded in 1863 TACC procures all fertilizer 16 needs of its partners from • 10.000 employees Regional Gübretaş with the Unions exclusive agreement • 19 Subsidiaries 1.820 Cooperatives • S upport farmers’ various procurement needs all 1.100.000 the way from Farmer Partners fertilizers to tractors 2.200.000 Total Registered Farmers 5

CURRENT BUSINESS Gübretaş Razi Petrochemical TURKEY • Solid Fertilizer Production and Sales IRAN • Liquid and Powder Fertilizer • Fertilizer Raw Production and Sales Materials ’ Production • Fertilizer Production 6

TURKISH FERTILIZER OUTLOOK Main Drivers Lack of Fertilizers Growth Potential • Lack of main nutrients: • Fertilizer Prices Fertilizer (nutrient based) • Agricultural Product Nitrogen (N) use per hectare of arable Prices land for some countries Phosphate (P) • General Financial Potassium (K) • Turkey: 92 kg Conditions • Greece: 153 kg • Depends on raw material • Farmers’ Purchasing • UK: 252 kg rich countries Power • Germany: 211 kg • Irrigation • USA: 120 kg • Weather Conditions • World Average: 116 • Goverment’s Agricultural Policies 7

FERTILIZER PRICES World Fertilizer Prices (FOB US$ / Ton) 750 500 250 0 DAP (Tunusia) UREA (Black Sea) SULPHUR (Middle East) AN (Black Sea) AMMONIA (Middle East) 8

MARKET OVERVIEW Turkish Fertilizer Sector (1.000tons) 7.000 5.814 6.000 5.500 5.472 5.367 5.340 5.263 5.199 5.175 5.148 4.968 4.766 5.000 4.129 4.000 3.750 3.661 4.000 3.577 3.548 3.400 3.192 3.158 3.133 3.113 2.961 2.878 3.000 3.167 3.007 2.934 2.800 2.710 2.661 2.478 2.000 2.377 2.242 2.078 2.086 2.177 1.000 543 499 500 316 276 287 221 195 208 182 149 23 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E Consumption Production Import Export 9

OPERATIONS IN TURKEY Tekirdağ 30.000t import Samsun F W P W R W R 30.000t Yarımca 121.000t R Ankara İzmir 65.000t F W R Diyarbakır İskenderun R 119.000t Antalya production sale P W R R F : Production Facility • 2 Ports P : Port • 5 Logistics Centers W : Warehouse • 7 Regional Offices R • 2.915 dealers : Regional Office • 365.000 tons Warehouse Capacity 10 10

PRODUCTS Products – General Use AN DAP SOLID LIQUID POWDER SPECIAL CAN TSP CAN GR 20.20.0 AS 20.20.0 ZN UREA 15.15.15 UREA GR 15.15.15 ZN Products - Specific Use 13.24.12+10SO3+ZN 23.12.9+ZN (Corn) (Sunflower) 10.25.20+20SO3+ZN 12.30.12 (Potato) (Sugar beet) 15.20.10+1,5ZN 10.25.5+5CaO+15SO3 (Paddy) (Crop) 18.9.15+2MGO+10SO3 13.18.15+2MGO (Citrus) (Sugar Beet) 177 Type of Products 13.25.5+10SO3+0,5ZN 25.05.10 (Wheat) (Tea) 20.20.10+5(SO3)+Zn 20.12.15 and 18.16.15 (Paddy) (Hazelnut) 11 11

PRODUCTION FLOW CHART YARIMCA PRODUCTION FACILITIES Main Inputs Main Products • TSP • AMMONIA • 20.20.0 • UREA • 20.20.0.ZN • AS • 15.15.15 • PHOSPHATE ROCK • 15.15.15.ZN • SULPHURIC ACID • 13.24.12 • PHOSPHORIC ACID • 13.25.5 • POTASSIUM • 23.12.9 Liquid Fertilizer TSP NPK 1 NPK 2 NPK 1A NPK 1B PRODUCTION CTION CAPACITY CITY: : Production 185.000 200.000 300.000 250.000 250.000 985.00 5.000 TON/YE /YEAR 25.000 ton/year ton/year ton/year ton/year ton/year ton/year NPK1A and NPK1B will be launched in April 2015 and NPK1 will be deactivated. 12 12

MARKET SHARE Gübretaş Sales (1.000tons) 100% 2.000.000 1.800 90% 1.740 1.651 80% 1.538 1.532 1.448 1.500.000 1.391 1.371 70% 1.354 1.238 1.204 60% 1.120 50% 1.000.000 40% 33% 32% 32% 29% 28,5% 28,2% 27% 27% 26% 25% 30% 24% 23% 500.000 20% 10% 0 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E GÜBRETAŞ Market Share 13 13

PRODUCTION & C.U.R. Gübretaş Production (1.000tons) 1.000.000 100% 900.000 90% 77% 76% 75% 800.000 75% 80% 74% 74% 71% 70% 700.000 70% 58% 57% 600.000 60% 53% 51% 500.000 50% 400.000 40% 695 300.000 30% 529 523 514 515 510 507 499 506 481 463 200.000 20% 348 100.000 10% 0 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E GÜBRETAŞ Capacity Utilisation Rate 14 14

RAZI PETROCHEMICAL CO. • Established in 1968 • The largest fertilizer complex of İran • Producer of Ammonia, Urea, Sulphur, Sulphuric Acid, Phosphoric Acid and DAP • Located near the Mahsahr city at The Khuzestan province of Iran • Advantage of processing both sour and sweet natural gas 15 15

RAZI PETROCHEMICAL CO. • The consortium led by Gübretaş purchased 95.62% of Razi Petrochemical Co. shares from Iranian Privatization Organization in 2008 (656 million USD). • Gübretaş has 48,88% stake in Razi Petrochemical Co. • 3 members out of 5 at the board. • Full consolidation 16 16

RAZI PETROCHEMICAL CO. FERTILIZER RAW FEEDSTOCK FERTILIZER MATERIAL UREA SWEET GAS AMMONIA SULPHUR SOUR GAS SULPHURIC ACID PHOSPHORIC ACID DAP PHOSPHATE (ARYA) ROCK (ARYA) 17 17

RAZI PETROCHEMICAL CO. PRODUCTION CAPACITY Capacity Number of Plant Plant (tons) Ammonia 3 1.336.000 Urea 1 594.000 DAP 2 450.000 Sulphuric Acid 2 627.000 Sulphur Granular 1 508.000 Phosphoric Acid 1 126.000 (ARYA) Total 10 3.641.000 18 18

RAZI PETROCHEMICAL CO. Production-Sales (1.000tons) Capacity Utilization Rate 90% 2.500 82,7% 78,1% 1.990 1.971 80% 76,2% 2.000 1.797 1.713 1.630 71,5% 70,5% 70,1% 1.552 69,1% 1.537 67,3% 70% 1.500 1.632 1.486 62,0% 1.474 58,2% 1.329 1.315 1.309 60% 1.247 55,3% 1.000 58,9% 56,6% 55,1% 50% 500 51,8% 50,5% 51,7% 40% 0 2009 2010 2011 2012 2013 2014 2015E 2009 2010 2011 2012 2013 2014 2015E AMMONIA SULPHUR UREA PRODUCTION SALES Since Razi is fully consolidated with Arya Phosphoric by 2013, the consolidated production and sales figures have been revised from this date. 19 19

RAZI PETROCHEMICAL CO.- 2015 PRODUCTION-Ton SALES-Ton DAP PHOSPORIC AMMONIA AMMONIA 4,27% ACID 45,23% 44,72% 3,60% PHOSPORIC ACID (ARYA) DAP 4,02% 5,77% SULPHUR SULPHURIC 15,83% ACID SULPHUR 4,07% 18,09% SULPHURIC UREA ACID UREA 17,59% 13,07% 23,75% SALES COMPOSITION Domestic 32,10% Export 67,90% 20 20

RAZI PETROCHEMICAL CO. 2015 Production Estimates (Ton) Sales Estimates (Ton) Product CUR 2015E Product 2015E Ammonia 67% 900.000 Ammonia 659.100 Urea 59% 350.000 Urea 350.000 Sulphur 62% 315.000 Sulphur 266.600 Sulphuric Acid 41% 260.000 Sulphuric Acid 60.000 DAP 19% 85.000 DAP 85.000 Phosphoric Acid (ARYA) 63% 80.000 Phosphoric Acid (ARYA) 53.000 Total 55% 1.990.000 Total 1.473.700 21 21

RAZI PETROCHEMICAL CO. 2015 Operations-.000 Tons 2015E Production 1.990 Sales 1.474 Income Statement-Million USD 2015E Revenues 599 EBITDA 172 EBITDA Margin 28% Net Income 172 Net Income Margin 28% Capex 30 22 22

GÜBRETAŞ 2015 CONSOLIDATED Operations-.000 Tons 2015E Production 2.685 Sales 3.274 Income Statement-Million TL 2015E Revenues 3.195 Gross Profit 694 Gross Profit Margin 22% EBIT 442 EBIT Margin 14% EBITDA 521 EBITDA Margin 16% Net Income 423 Net Income Margin 13% Adjusted EBITDA 315 Adjusted EBITDA Margin 10% Adjusted Net Income 203 Adjusted Net Income Margin 6% Capex 190 23 23

NEW INVESTMENT AT YARIMCA FACILITY • NPK/DAP Plant • 500.000 Ton/Year capacity • Ammonia Tank • 25.000 Ton Capacity • 60.000.000 € Capex • Capacity Increase • NPK & DAP Production • Liquid Raw Material Usage • Cost Advantage 24 24

SUBSIDIARIES Negmar Maritime Company Tarkim Pesticide • 40% Stake • Dry Cargo Shipping • Partnership with TACC • LPG Shipping RAZİ • 40% Stake Petrochemical Tarnet Information Technologies • Ro-Ro • Partnership with TACC • Ferry • 17% Stake International Trade Arya Phosphoric İmece Prefabricated Construction Phosphoric Acid Production • Logistics Services • Partnership with TACC • 15% Stake 25 25