INVESTOR PRESENTATION March 2013 AN AFFILIATE OF THE TURKISH - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION March 2013 AN AFFILIATE OF THE TURKISH - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION March 2013 AN AFFILIATE OF THE TURKISH AGRICULTURAL CREDIT COOPERATIVIES Gbre Fabrikalar T.A. Date of Establishment 25.12.1952 Share Capital 83.500.000TL Listing Istanbul Stock Exchange Ticker Symbol GUBRF 2

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AN AFFILIATE OF THE TURKISH AGRICULTURAL CREDIT COOPERATIVIES

March 2013

INVESTOR PRESENTATION

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2 2 Gübre Fabrikaları T.A.Ş

Date of Establishment 25.12.1952 Share Capital 83.500.000TL Listing Istanbul Stock Exchange Ticker Symbol GUBRF

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GÜBRE FABRİKALARI T.A.Ş

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OWNERSHIP STRUCTURE

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

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THE CENTRAL UNION OF TURKISH AGRICULTURAL CREDIT COOPERATIVES

  • Leading agricultural cooperatives
  • Founded in 1863
  • 6.000 employees
  • 19 Subsidiaries
  • Support farmers’ various

procurement needs all the way from fertilizers to tractors

Strategic Relationship with Gübretaş Procure all fertilizer needs

  • f its partners from

Gübretaş with the exclusive agreement

16 Regional Unions 1.676 Cooperatives 1.100.000 Farmer Partners 3.000.000 Total Farmers

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CURRENT BUSINESS

TURKEY

  • Compound Fertilizer Production
  • Liquid Fertilizer Production
  • Marketer of fertilizer
  • Pesticide Production
  • Shipping

IRAN

  • Feedstock Production
  • Fertilizer Production

Gübretaş Razi Petrochemical

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TURKISH FERTILIZER OUTLOOK

  • Scarcity of main nutrients:

Nitrogen (N) Phosphorus (P) Potassium (K)

  • Dependency on raw

material rich countries

Main Drivers Feedstock Scarcity Growth Potential

Fertilizer (nutrient based) use per hectare of arable land for selected countries

  • Turkey: 80 kg
  • Greece: 144 kg
  • UK: 208 kg
  • Germany: 160 kg
  • USA: 103 kg
  • Fertilizer Prices
  • Agricultural Product

Prices

  • General Financial

Conditions

  • Farmers’ Purchasing

Power

  • Irrigation
  • Weather Conditions
  • Goverment’s

Agricultural Policies

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FERTILIZER PRICES

250 500 750 1.000 1.250

World Fertilizer Prices (FOB US$ / Ton)

DAP (Tunisia) UREA (Black Sea) AN (Black Sea) SULPHUR (Middle East) AMMONIA (Middle East)
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MARKET OVERVIEW

5.094 5.175 5.199 5.367 5.148 4.129 5.263 4.968 4.766 5.340 3.318 3.192 3.158 3.133 3.113 2.961 2.878 3.400 3.750 3.661 2.126 2.710 2.478 2.661 2.377 2.078 3.007 2.177 2.242 2.086 1.000 2.000 3.000 4.000 5.000 6.000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Turkish Fertilizer Sector (1.000tons)

Consumption Production Import

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OPERATIONS IN TURKEY

Yarımca 140.000t Samsun 30.000t Tekirdağ 40.000t İzmir 62.000t İskenderun 119.000t R P F W Antalya Diyarbakır W F W R R P W R W R R

: Production Facility : Port : Warehouse : Regional Sale Office

F P W R Ankara R

import

sale production

  • 2 Ports
  • 5 Warehouses
  • 7 Regional Sale Offices
  • 2.720 dealer
  • 391.000 ton Warehouse Capacity
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PRODUCTS

SOLID LIQUID POWDER SPECIAL 130 Type of Products

Products - General Use

AN TSP 15.15.15 CAN MAP 15.15.15 ZN CAN GR PS GR 15.15.15 S AS PATENT KALI 15.15.15 ZNS URE 20.20.0 15.15.10 2ZNS URE GR 20.20.0 ZN 13.18.25 2MG

Products - Specific Use

13.24.12 (Corn) 23.12.9 (Sunflower) 13.25.5 (Crop) 10.25.20 (Potato) 12.30.12 (Sugar beet) 25.5.10 (Tea) 10.25.5 (Crop) 15.20.10 (Paddy) 25.5.0 (Tea)

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PRODUCTION FLOW CHART

  • AMMONIA
  • UREA
  • AS
  • PHOSPHATE ROCK
  • S.ACID
  • F.ACID
  • POTASSIUM

TSP

185.000 ton/year

NPK 1

200.000 ton/year

NPK 2

300.000 ton/year

PRODUCTION CTION CAPACITY CITY: :

685.00 .000 TON/Y

/YEAR

YARIMCA PRODUCTION FACILITIES

Liquid Fertilizer Production 25.000 ton/year

  • TSP
  • 20.20.0
  • 20.20.0.ZN
  • 15.15.15
  • 15.15.15.ZN
  • 12.30.12
  • 13.24.12

Main Products Main Inputs

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MARKET SHARE

898 1.204 1.238 1.354 1.371 1.120 1.394 1.449 1.532 1.538 1.600 18% 23% 24% 25% 27% 27% 26% 29% 32% 29% 30% 200 400 600 800 1.000 1.200 1.400 1.600 1.800 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Gübretaş Sales ('000tons)

GÜBRETAŞ Market Share %

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PRODUCTION & CUR

422 499 506 463 514 515 348 510 529 481 511 48% 57% 58% 53% 75% 75% 51% 74% 77% 70% 75% 100 200 300 400 500 600 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Gübretaş Production ('000tons)

GÜBRETAŞ Capacity Utilisation Rate

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RAZI PETROCHEMICAL CO.

  • Established in 1968
  • The largest fertilizer complex
  • Producer of Ammonia, Urea,

Sulphur, Sulphuric Acid, Phosphoric Acid and DAP.

  • Located near the Mahsahr city

located at The Khuzestan province

  • f Iran.
  • Advantage of sour and sweet

natural gas

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RAZI PETROCHEMICAL CO.

  • The consortium led by

Gübretaş purchased 95.62%

  • f Razi Petrochemical Co.

shares from Iranian Privatization Organization in 2008(approximately 656 million USD).

  • Gübretaş has 48,88% stake

in Razi Petrochemical Co.

  • 3 members out of 5 at the

board.

  • Full consolidation
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RAZI PETROCHEMICAL CO.

SOUR GAS AMMONIA UREA SWEET GAS

FEEDSTOCK FERTILIZER RAW MATERIAL FERTILIZER

SULPHUR DAP PHOSPHATE ROCK SULPHURIC ACID PHOSPHORIC ACID

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RAZI PETROCHEMICAL CO.

PRODUCTION CAPACITY

Plant

Number

  • f Plant

Capacity (tons) Ammonia 3 1.336.000 Urea 1 594.000 DAP 2 450.000 Sulphuric Acid 2 627.000 Phosphoric Acid 1 255.000 Sulphur Granul. 1 508.000 Total 10 3.770.000

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RAZI PETROCHEMICAL CO.

1.548 1.816 1.999 1.552 1.855 1.315 1.486 1.632 1.313 1.505

500 1.000 1.500 2.000 2.500 2009 2010 2011 2012 2013E

Production-Sales (1.000tons)

Production Sales

55% 70% 55% 64% 83% 78% 75% 69% 76% 52% 58% 57% 69%

40% 60% 80% 100% 2009 2010 2011 2012 2013E

Capacity Utilization Rate

AMMONIA SULPHUR UREA

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RAZI PETROCHEMICAL CO.-2012

AMMONIA 47% SULPHURIC ACID 7% UREA 22% SULPHUR 23%

PRODUCTION

AMMONIA 48% SULPHURIC ACID 7% UREA 18% SULPHUR 24% DAP 0,12%

SALES

Export 77% Domestic 23%

SALES COMPOSITION

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RAZI PETROCHEMICAL CO.

Production Estimates (Ton)

Product CUR 2013E Ammonia 64% 850.000 Urea 76% 450.000 Sulphur 69% 350.000 Sulphuric Acid 28% 175.000 DAP 7% 30.000 Total 49% 1.855.000

Sales Estimates (Ton)

Product 2013E Ammonia 560.000 Urea 450.000 Sulphur 290.000 Sulphuric Acid 175.000 DAP 30.000 Total 1.505.000

Sales Price Assumptions (US$/Ton)

Product 2013E Ammonia (CIF) 580 Urea (FOB) 287 Sulphur (FOB) 140 Sulphuric Acid (FOB) 60 DAP (FOB) 550

Sales Revenues (US$/Mil)

Product 2013E Ammonia 325 Urea 129 Sulphur 41 Sulphuric Acid 11 DAP 17 Total 521

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RAZI PETROCHEMICAL CO.

OPERATING PROFORMA 2013E Production '000 Ton 1.855 Sales '000 Ton 1.505 Revenues US$ Mil. 521 EBITDA US$ Mil. 208 EBITDA Margin

40%

Net Income US$ Mil. 180 Net Income Margin

35%

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2004 - 2013 ECONOMIC PROFILE

Consolidated Income Statement (Million TL)

2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E

Revenues 428 414 481 610 1.412 1.045 1.385 2.276 2.432 2.360 Sales Growth 68%

  • 3%

16% 27% 131%

  • 26%

33% 64% 7%

  • 3%

COG 374 371 421 529 943 930 952 1.582 1.866 1.780 Gross Profit 54 43 60 81 469 115 433 695 566 580 Gross Margin 13% 10% 12% 13% 33% 11% 31% 31% 23% 25% G & A Expenses 36 36 38 42 72 79 104 182 182 204 G & A / Sales 9% 9% 8% 7% 5% 8% 8% 8% 7% 9% EBIT 18 7 22 39 398 36 329 513 384 376 EBIT Margin 4% 2% 5% 6% 28% 3% 24% 23% 16% 16% Net Other Income/Exp. 6 6 7

  • 10

136 78 49 120

  • 62

13 Earnings Before Tax 11 1 15 49 262

  • 42

280 392 446 363 Net Income 7 1 9 39 282

  • 48

245 375 400 355 Net Income Margin 2% 0,3% 2% 6% 20%

  • 5%

18% 16% 16% 15% Adjusted Net Income 7 1 9 39 103

  • 59

120 130 197 190 Adjusted Net Income Margin 2% 0,3% 2% 6% 7%

  • 6%

9% 6% 8% 8% EBITDA 19 8 24 46 449 106 402 606 485 417 EBITDA Margin 4% 2% 5% 8% 32% 10% 29% 27% 20% 18% Adjusted EBITDA 19 8 24 46 238 71 224 316 246 204 Adjusted EBITDA Margin 4% 2% 5% 8% 17% 7% 16% 14% 10% 9%

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NEW INVESTMENT IN YARIMCA

  • NPK/DAP Plant
  • 500.000Ton/Year capacity
  • Ammonia Tank
  • 25.000Ton Capacity
  • 60.000.000€ Capex
  • Launch in April 2014
  • Capacity Increase
  • NPK & DAP Production
  • Liquid Raw Material Usage
  • Cost Advantage
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SUBSIDIARIES

Tarkim Pesticide Company

  • Partnership with Turkish Agricultural

Credit Cooperatives

  • 40% Stake
  • 25.000Ton/year production capacity

RAZİ Petrochemical Negmar Shipping Company

  • 40% Stake
  • 5 Dry Cargo Vessels
  • 3 Ro-Ro Vessels
  • 52 Trucks
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GÜBRETAŞ INVESTMENT THESIS

  • Strong market position and potential to

become a regional market leader

  • TACC strategic relationship
  • A proven management track record
  • Unique assets including dedicated natural

gas

  • Ideal geographic positioning and logistic

capabilities Gübretaş remains well positioned on its way to become a global player

“ ”

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DISCLAIMER

This presentation may contain forward-looking statements within the meaning of securities laws which may by their nature involve risk and uncertainty. All statements that address the firm’s objectives, estimates, predictions, expectations or projections about the future including such statements as the company’s growth, cost reduction and restructuring plans, expenditures and financial results are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those projected in such forward-looking statements and therefore investors should not place undue reliance on them. Gübretaş undertakes no

  • bligation to publicly update or revise any forward-

looking statement, whether as a result of new information, or otherwise.

INVESTOR RELATIONS MANAGEMENT

Phone +90 212 376 50 50 Fax +90 212 288 13 76 Web Site www.gubretas.com.tr E-Mail noner@gubretas.com.tr Address Kasap Sk. No:22 Esentepe 34394 Sisli/Istanbul/Turkiye

Thank You

AN AFFILIATE OF THE TURKISH AGRICULTURAL CREDIT COOPERATIVIES