Legal Warning CONFIDENTIAL This presentation is prepared by the - - PowerPoint PPT Presentation

legal warning
SMART_READER_LITE
LIVE PREVIEW

Legal Warning CONFIDENTIAL This presentation is prepared by the - - PowerPoint PPT Presentation

Engine and Tractor Presentation for Investors 2013 Legal Warning CONFIDENTIAL This presentation is prepared by the Investor Relations Department of TMOSAN Engine and Tractor Industry Inc. It shall not be used as a marketing document on no


slide-1
SLIDE 1

Presentation for Investors

2013

Engine and Tractor

slide-2
SLIDE 2

1

Presentation for Investors June 2013

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.

Legal Warning

slide-3
SLIDE 3

ALBA YRAK Group

slide-4
SLIDE 4

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»

  • f 1992 in İstanbul, Albayrak Group is the biggest company in

Garbage Co l l e c ti

  • n

and Waste M a n a g e me n t fields with 830 v eh i cl e s and 5 .50

  • 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
  • f 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

slide-5
SLIDE 5

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 enginesin 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.

Group

4

Presentation for Investors June 2013

slide-6
SLIDE 6

Agriculture in the World and in Turkey

slide-7
SLIDE 7

Number of Establishments 2.300.000 10.000.000 Average Establishment Size (Ha) 6.8 17.4 Total Agricultural Land (million ha) 26 163 Share ofAgriculture in G N P (%) 8 1.9 WheatYield (kg/da) 265 570 GDP per capita inagriculture ($) 3.602 9.286 Number of Tractors 1.500.000 15.000.000 TractorOwnership of Establishments (%) 65 150 AveragePower of Tractors (HP) 60 100

Agriculturein Turkey and EU

6

Presentation for Investors June 2013

slide-8
SLIDE 8

Products that rank first: Products that rank second: Products that rank third: Products that rank fourth: Products that rank fifth: Products that rank sixth: Products that rank seventh: Products that rank eighth: Manyproducts of Turkey are among the top 10 in world production. Hazelnut, Apricot,Fig, Cherry, Sour Cherry,Quince, Poppy, Watermelon, Melon, Strawberry, Leek, Honey vetch Lentil, Apple, Cucumber, Green Pepper, Green Beans, Chestnut Pistachio Lentil, Apple, Cucumber, Green Pepper, Green Beans, Chestnut Pistachio Tomato, Mandarin, Spinach, Walnut, Chickpea, Wax Sugar Beet, Tea, Eggplant, Olive Grape, Onion, Peach, Safflower Pear, Lemon,Grapefruit, Barley, Cotton, Oat, Almond, Mutton

Agriculture in Turkey

7

Presentation for Investors June 2013

slide-9
SLIDE 9

AGRICULTURAL SECTOR - GENERAL OVERVIEW

  • There is 38 million hectares of agricultural land in Turkey. Our country is among the first 15 countries in the world

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%.

  • While agriculturalsector constituted approximately 45% of total employment in 90s, today

this rate is only 26% with total employment of 6.1 million people in agricultural

sector.

  • There aremore than 2.3 million establishments in the sector. While37.2% of these establishments
  • nlydeal with plant production, therest is dealing withboth plant and animal production.
  • While the share of agricultural products was 3.7% of of the foreign trade in 2011, thecompound

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:

Hazelnut (1), Watermelon (2), Sugar Beet (4), Tomato (4),M a nd arin (4), Barley (6), Grape (6), Wheat (10).

TUİK

8

Presentation for Investors June 2013

Agricultural Production in Turkey

Agricultural Production Million $ Agricultural Production GDP Share %

Agricultural Land in Turkey Million Ha

Meadow Pasture 14.6 Cultivated 15.7 Fallowing 4.0 Vegetable Gardens 0.8 Vineyard 0.5 Other Fruits 1.8 Olive Tree 0.8

slide-10
SLIDE 10
  • Whengeneral agricultural structure of Turkey is compared with developed countries, fragmented

land structure limitedestablishment size, lack of input grab attention.

  • While average establishment size in our countryisaround6.8 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%.

  • As a result offragmented land structure and high number of establishments in proportion to agricultural

land in the country, 83% of the current establishments carry on their business on lands smaller than 10 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

the average establishment size via consolidation by rehabilitating theexisting structure as priority issues.

AGRICULTURAL ESTABLISHMENTS

Source: Tarmakbir, TSI, Ministry of Food Agriculture and Livestock *Data of2011 and 2012 are compiled from estimated data of Farmer Registration System and TSI . Source: TSI, Eurostat

9

Presentation for Investors June 2013

Agricultural Establishments

Number of Establishments Million Size of Establishment Ha

Land Distribution Based on Agricultural Establishments

slide-11
SLIDE 11

AGRICULTURAL ESTABLISHMENTS

  • As the econo

mic development level of countries increase, population dealing with agriculture decreases. In USA the rate of agricultural employment is around 1-1.5%, in European Union it is 5 .5

  • 6

.0 % but it is around 26% in Turkey.

  • Working times and agricultural employment decreasein fields and meeting the

increasing needs of growing population necessitates productivity increase in agriculture. The mostsignificant result of this is that practices based on labor give way to practices based on mechanization.

  • The biggest obstacle that productivity growth and mechanization meet is that

the establishments are composed of small and fragmented lands. By combining fragmented smallscale agricultural land parcels, the number of establishments is decreased and average establishment size is increased.

  • Legal regulationsin Turkey prevented fragmentation of agricultural lands below 20 decares which

were fragmented down to 1 decare earlier. In addition, land consolidation works are in progress in priority regions.

  • In conjunction with the increase in trends for protection of human health and natural resources

like land, water and air, mass production commenced in field agriculture, establishments are being specialized and technological standards became higher.

Source: Tarmakbir, TSI, Ministry of Food Agriculture and Livestock

Selected Indicators Turkey European Union Cultivated Area 16 Million ha 240 Million ha Number of Agricultural Establishments 2.3 Million 13.7 Million Average Establishment Size 6.8 ha 17.5 ha Agricultural Population 30% 6% Share of Agriculture in Employment 26% 6%

Number of

Equipment per Tractor 5.2 10 Average Tractor Power 60 HP >100 HP Ratio of 4WD Tractors 20% 90%

10

Presentation for Investors June 2013

slide-12
SLIDE 12

Tractor Market

in the World and in

Turkey

slide-13
SLIDE 13
  • Tractor segment ranks first with a share of 30% in world agricultural

machinery m arket the value of whic h is 70 70 million dollars.

  • China and India which are on the top in the rankings of population, cultivated agricultural

land and agricultural economy are also leaders in the world tractor market size.

  • While 1.5 million tractors were sold in the world in 2011, approximately 65% of this sales were

made in China and India.

  • Turkeybecame the 4 t h biggest tractor market in the world in 2011 after China, India and USA.

Turkey ranks fifth in the world according to estimated data for 2012.

  • Nutrition need is increasing in parallel with population growth in the world. In spite of the increase

in establishment size in the world, the horizontal employment, particularly in developed countries increases agricultural productivity but also increases the need for tractors and also necessitates replacing the existing tractors with tractors having higher engine power.

WORLD MARKET

Source: Tarmakbir, Agrievolution Tractor Producing Country Market Va lu e Million $ Deere & Co USA 33.6 Kubota Cerp. Japan 12.7 CNH Global N.V. The Netherlands 10.6 Mahindra & Mahindra India 10.2 UnitedTractors TBK Indonesia 8.7 Agco Corp. USA 4.5 Bucher Industries S witzerland 1.9

12

Presentation for Investors June 2013

World Tractor Market 2011

India 41% Other 15% USA 11% China 23% Turkey 4% Japan 3% Brazil 3%

slide-14
SLIDE 14

Total number of tractor sales, 2012 Average of last 20 years (1993- 2012) Traffic Registry at the end of May 2013 : 51.032 : 34.366 : 19.611

TURKISH MARKET, 1993 - 2012

Source: Tarmakbir, Agrievolution,TUİK

  • Turkish agricultural production value in the World exceeded

62 billion US Dollars,

  • Agricultural supports continue.
  • Credit conditions of Ziraat Bank are better than previous year.
  • Interest ofprivate banks in agricultural credits increased and

competition of the banks created a credit environment for the benefit of farmers.

  • Climatic conditions affected agriculture positively throughout the

country.

  • Crops are high.

MARKET INDICATORS FOR 2013

13

Presentation for Investors June 2013

Num ber Year

slide-15
SLIDE 15
  • 350.000 tractors have been added to the pool in the last

decade.

  • Tractor stock increased to 1.500.000 from 1.150.000.
  • Number of brands in tractor market reached to 35 today

from 8.

  • Averagetractor power was increased by 20% in the last

decade.

  • The rate of 2WD tractors increased sevenfold.

DEVELOPMENTS IN TRACTOR SECTOR

Source: Tarmakbir, TSI, Company

14

Presentation for Investors June 2013

Ratio of 4WD Average HP

slide-16
SLIDE 16
  • Sales ofcab over tractors tripled compared to previous years.
  • 50%of the tractors sold are cab over tractors.
  • In vineyard and orchard segment,tractor sales increased 3.5 fold in

comparison to previous years.

DEVELOPMENTS IN TRACTOR SECTOR

Source: Tarmakbir, TSI, Company

15

Presentation for Investors June 2013

Ratio of Vineyard an Orchard Tractors

Ratio of Cab-Over Tractors

slide-17
SLIDE 17
  • Turkey's General agricultural structure in developed countries compared; fragmented land

structure, limitedestablishment size, lack of input grab attention.

  • In terms of land size, agricultural establishments are intensified in the range of 2-

5hectares with 31%.

  • Asa result of fragmented land structure and high number of establishments in proportion to

available agricultural land in the country, 83% of the current establishments operate on lands smaller than 10 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

the average establishment size via consolidation by rehabilitating theexisting structure as priority issues.

TRACTOR POOL

Source: Tarmakbir, TSI, FAO, Company

16

Presentation for Investors June 2013

Regional Distribution of Turkey's Tractor Pool

Turkey's Tractor Pool 2012

Southeastern Anatolia 7% Northeastern Anatolia 4 % East of Central Anatolia 3% Eastern Black Sea 1% W est Anatolia 8% Central Anatolia 9% Eastern Marmara 10% W estern Marmara 12% W estern Black Sea 13% Mediterranean 13% Aegean 20% Under 10 Years of Age 302.647 21% 10-25 Years of Age 459.055 31% Age 25 and Above 704.506 48%

slide-18
SLIDE 18

TRACTOR POOL IN THE WORLD

Source: Tarmakbir, TSI, FAO, Company

17

Presentation for Investors June 2013 TOTAL

27.625.076

Rankin g Country Tractor Parla (Number) % 1 USA 4.760.000 17 2

India

2.528.122 9 3

Japan

2.028.000 7 4

Italy

1.680.000 6 S

Turkey

1.500.000 5 6

Poland

1.371.340 5 7

France

1.364.000 5 8

China

945.421 4 9

Germany

944.000 3 10

Spain

943.000 3 11

Brazil

806.000 3 12

Canada

732.000 3 13

Russia

586.000 2 14

England

500.000 2 15

Ukraine

390.000 1 16

Austria

330.000 1 17

Mexico

324.000 1 18

Serbia

324.038 1 19

Pakistan

320.500 1 20

Australia

315.000 1 20.060.403 80

Other s 46% USA 17% India 9% Japan 7% Italy 6% France 5% Turkey 5%

slide-19
SLIDE 19
  • According to the data

for the first 5 months of 2013, with 15.05% of Market Share TÜMOSAN ranks second in the sector.

  • TSI datafor TÜMOSAN in 5/2012 are below.

TRACTOR POOL

Source: Tarmakbir, TSI, Company Source: Tarmakbir, TSI, Company

TSI SALES FIGURES 2012/5 2013/5

Tumosan Sales (Sales Volume)

3014 2925

General Total Sales (Total Sales)

21.545 19.611

Market Share (Market Share)

12.91% 15.05%

18

Presentation for Investors June 2013

Monthly TSI Figures for 2013/5

Jan.13 Feb.13 Mar.13 Apr.13 May13

slide-20
SLIDE 20

Years 30.06.09 31.12.09 30.06.10 31.12.10 30.06.11 31.12.11 31.03.12 30.06.12 31.12.12 31.03.13 30.06.13

Tümosan Sales (Number )

1.668 725 1.888 4.891 4.961 10.337 2.079 3.672 6.735 1.892 4.315

Sales Revenue s (Million TL)

  • 59
  • 181.1

196 411.4 86.1 148.3 291.6 90.2 207.1

Source: Sales to Dealers by Company Source: Tarmakbir, Company

  • When the data for 2013/6 are viewed, TÜMOSAN increased

its sales-to-dealers figure above the previous year's figure. Increase in Sales Figures started in March when Credit rates of Ziraat Bank became clearer and

the same momentum continued later on.

TÜMOSAN (Company ) PRODUCT ION SALES 2012/6 3.302 3.672 2013/6 4.180 4.315

19

Presentation for Investors June 2013

slide-21
SLIDE 21

Short Term

  • In conjunction with the scrappage incentive expected to commence, sales are

expected to exceed 60 thousand tractors per year .

  • Since 2013 is election year, it corroborates the expectation that agricultural subsidies will not

decrease during the following 2 years.

  • If economicstability continues, loan interests will still be low.
  • As a continuation of the practices of law that impose the obligation to make environmentally-

conscious production, using European Union Emission Standard Stag e IV engines will be mandatory in 2015. Due toconsolidation of Medium-

Long Term

  • Lands, agricultural establishments grow and mechanization increases .
  • As a result of population growth, increasing the agricultural production becomes a necessity

and thus industrial agriculture gradually gains more importance.

  • Due to the old age of the current tractor pool the need of renewal increases every passing year.
  • Resources allocated for agriculture by the state are being stabilized.
  • Farmers prefer to buy high technology tractors with higher horse power.
  • Only 28% of agricultural

establishmentshave their own tractors.

  • Foreign producers may use Turkey as a production base as in automotive sector.
  • Through development of subsidiary industry, cheaper and quality production would be

possible.

MOVERS AND SHAKERS OF DEMAND

20

Presentation for Investors June 2013

slide-22
SLIDE 22
  • Brand
  • Specifications of main components such as

engineand transmission.

  • Affordable price for farmers
  • Deep-seated secondary market
  • Fuel economy
  • Strongrelationship between the Dealer and

Farmer

  • Being domestic product
  • Widespread service network
  • Easily available and cheap spare parts
  • Place in market as a status symbol
  • Having the horse power and traction suitable for rough terrain

and equipment to be used.

FACTORS EFFECTING TRACTOR PREFERENCE

21

Presentation for Investors June 2013

slide-23
SLIDE 23
  • At Home
  • Brand perception to be created with high quality and performance models at affordable

prices.

  • High fuel economy and performance
  • Sales network composed of financially

strong people who are familiar with

tractor trade and respected in the region.

  • Prevalence that would influence brand awareness and perception.
  • Authentic engine, transmission and tractor design – production capability
  • Export
  • Making the brand perception and awareness in Turkey to be attraction grabbing at global

scale.

  • Determining the target market accurately
  • Procurement of the

technology and quality sufficiency sought in the products to be sold in target market.

  • Efficient sales, marketing an after sales service strategies:
  • Cooperating withreputable companies in the country to exportwhich are experienced in

agricultural machinery and financially strong and establishing sales and after sales network

  • r
  • Acquiring a reputable company

in target market and penetrate into the market with existing sales and after sales service network

22

Presentation for Investors June 2013

SUCCESS CRITERIA IN MARKET

slide-24
SLIDE 24

MARKET OPERATION

23

Presentation for Investors June 2013 Production Purchase Guarantee at 75%

  • f Tractor Insurance Price

Lien Credit Credit Facility Request Farmer Agricultural Establishmen t Tractor Sales Taking Back the Old Tractor as Down Payment Sales to Dealers

slide-25
SLIDE 25
slide-26
SLIDE 26

TÜMOSAN Before Privatization

25

Presentation for Investors June 2013 1976

Tümosan was established as a Public Economic Enterprise with participation of Mechanical and

Chemical Industry Corporation (MKEK), Turkish Agricultural Equipment Institution (TZDK), Şekerbank, Türkiye Denizcilik Bank and Turkish State Industry and Workers Investment Bank for the purpose of producing tr a c tor s and diesel engines for light- duty vehicles, trucks and heavy trucks. 1977 For the production of tractors and diesel engines, a licence agreement was signed with Italian FIAT company and the licence was obtained to produce 3, 4 and 6 cylinder diesel engines in the range of 49-142 HP and 8 types of tractors. 1981 Engine assembly and test workshop built in Konya and engine production commenced. 1983 Tractor assembly workshop was completed and tractor production commenced. 1986 Tractor mechanics workshop was complete ted. 1987 Investment for production lines of motor block, cylinder head an main bearing cap was completed and production of domestic engine commenced. 1987 – 1992 Licence agreement with FIAT company was expired in 1988 and Tümosan continued to produce diesel engines and tractors under its own brand in the following years. Tractor production was ceased between 1987-1992 and only engines were produced. 1993

recommenced.

slide-27
SLIDE 27

Head office: Yeşilköy Mahallesi, Atatürk Cad. No:10/2 İstanbul Dünya Ticaret Merkezi A3 Blok Kat:8, 34149, Bakırköy- İstanbul Factory: Büyükkayacık Mahallesi Aksaray Çevre Yolu Caddesi No:7/1 Selçuklu/Konya/Türkiye

  • Tümosandiesel engines and tractors in Konya in an indoor area of 93 thousand square meters built
  • n its own land covering 1.6 million square meters
  • Having the biggest capacity of production under one roof in Turkey, the Company has the potential of

increasing the capacity if needed on the current complex without making additional investment in land.

  • Engine production capacity: 75.000/Year-three shifts, Tractor production capacity: 45.000/year- three shifts.
  • A total of 202 models in 10 series and under 22 main models in the range of 50-105 HP as Field,

Vineyard-Orchard, single traction, dual traction, cab-over and taut.

  • Konya where the facilities are locatedhas some advantages; i) It is close to Mediterranean,

Southeastern Anatolia and Central Anatolia where 35% of tractor demand is generated ii) it is at the junction of highways and railways iii) it has the biggest share of Company's material acquisition at home with 20%.

TÜMOSAN COMPANY PROFILE

BIST CODE-TMSN

26

Presentation for Investors June 2013

slide-28
SLIDE 28

TÜMOSAN COMPANY PROFILE

BIST CODE-TMSN

Issued Capital TL 115.000.000 UpperLimit of Registered Capital TL 500.000.000 Average Number of Personnel 30.06.2013 White Collar 121 Blue Collar 276 Total 397

27

Presentation for Investors June 2013

slide-29
SLIDE 29
  • While Tümosan was providing service with 48 authorized dealers in Turkey in 2009, today it reaches all around Turkey with its widespread

authorized dealers network at 101 points in 65 provinces under 11 regional directorates as of 30.06.2013.

  • In order to met the needs of growing tractor market, it is aimed to implement 3S (sales, service, spare parts) concept at sales and after-sales points and

further increase service quality.

  • Sales performances and stocks of dealers are weekly followed by regional directorates and head office.
  • Timing is very important in agricultural sector and after sales services play an important role in brand preference. Tümosan has a network composed of 400

authorized service stations throughout the country.

  • All authorized services attend to periodic trainings and trainings for new models at the factory and they are certified.
  • Common objective of Tümosan employees is quality production that would fulfill expectations of customers and continuous change to get down to a fine
  • part. Tümosan has various important certificates that enable it to ensure the quality of products. These are Production Qualification Certificate and

Quality Compliance Certificate. It received Laboratory Quality Competence Certificate from Turkish Standards Institute for quality control. Tümosanalso has TS-EN-ISO 9002 and AQAP 120 quality assurance certificates.

28

Presentation for Investors June 2013

TÜMOSAN

slide-30
SLIDE 30

Diesel Engine Production

  • Tümosan is the first diesel engine producer in Turkey and it has been producing them since

1981 without interruption . 170 thousanddiesel engines have been produced in total in the last 3 decades.

  • The following diesel engines in accord with European Union emission standard III-A are

being produced. 3 cylinder; 50-55-65-75-85 HP 4 cylinder; 75-85-95-105-110-115-125 hp

Tümosan Diesel Engines

  • can also be used for generators and general industrial applications.
  • They are powerful and high performance.
  • Their fuel economy is improved.
  • They have a long service interval of 500 hours.
  • Their level of noise and vibration are low.
  • Their standard guarantee periodis two years.

Advantages provided by Diesel Engine Production to Tümosan

  • They are produced at a lower cost as compared to imported engines.
  • In conjunction with Turkey's involvement in Stage IV emission standard in 2015, price advantage in

reference to imported engines wh i ch i s a ro u n d € 1,000 today is expected to increase further .

  • In tractor production, supply of quality, uninterrupted and most importantly improvable engines is
  • f capital importance .

TÜMOSANDIESEL ENGINE PRODUCTION

Product Production Capacity (Number/Year ) Singl e Shift Three Shifts Diesel Engine 25.000 75.000 Engine Block 30.000 90.000 Cylinder Head 30.000 90.000 Main ⇥ Bearing Cap 159.300 477.000 29

Presentation for Investors June 2013

slide-31
SLIDE 31

Phase I: Design

  • By virtue of the investments made after privatization, domestic design capability is improved within the

scope of R&D and virtual design of new models are now completed in 6 months.

  • Design works to develop and improve existing models continue incessantly .

Phase II: Prototype Production and Tests

  • Technical drawings and details related to all parts and components prepared by design team are shared with

suppliers at home and abroad.

  • The samples are prepared according to determined standards by Tümosan and suppliers.
  • Samples received from suppliers are used to produce the prototype that represents mass production in

the prototype workshop.

  • All tests are completed with prototype and required legal approvals are obtained

Phase III: Mass Production

  • Massproduction capacity is annually 15.000 in single shift and 45.000 in three shifts.
  • 3 and 4 cylinder 2WD and 4WD tractors are produced in the range of 50 – 115 HP.
  • Production lines are composed of CNC benches capable of flexible production and transfer benches for

standard production.

  • Lean production that aspires increasing the productivity in production lines is implemented together with

consultants .

TÜMOSAN TRACTOR PRODUCTION

30

Presentation for Investors June 2013

slide-32
SLIDE 32

Tractor Series Horse Hp Cylinder 2WD 4WD Engine Em ission Sales P rice Range Model Differences Vine yards and Orcha rds 4200 50-55 3  Stage III 36.100 115.000.00 41.300 115.000.00 5.200 55-65-75-85 3   Stage III 52.000 115.000.00 69.200 115.000.00 Field 4000 50-55 3  Stage III 35.500 115.000.00 40.500 115.000.00 4100 50-55 3  Stage III 35.800 115.000.00 40.800 115.000.00 6000 55-65 3   Stage III 50.700 115.000.00 64.300 115.000.00 6100 55-65 3   Stage III 51.700 115.000.00 TL 67.300 7000 75-85 3   Stage III 55.000 115.000.00 73.100 115.000.00 7100 75-85 3   Stage III 58.700 115.000.00 74.200 115.000.00 8000 75-85-95 4   Stage III 58.000 115.000.00 81.000 115.000.00 8095 - 4WD 8100 75-85-95-10 5 4   Stage III 65.500 115.000.00 92.000 115.000.00 8195 - 4WD ⇥ 8105 - 4WD

31

Presentation for Investors June 2013

TÜMOSAN TRACTOR PORTFOLIO

slide-33
SLIDE 33
  • TÜMOSAN R & D Center has been carrying on its operations as of February 2013 in the work area

created in İTÜ Technopark in three main fields as vehicle design, transmission and diesel engine .

  • Optimization works for production of new generation diesel engine in conformity with European

Union Emission Standard Stage IV are in progress.

  • TUBİTAKsupported R&D studies for 115 - 125 HP tractors which arenotproduced inTurkeyare completed

andthey will beput upfor saleas of September 2013.

  • Prototype and certificationworks onalternative products developedwithintent toincrease the market

sharein 50 HP tractor segment where the competition is high are in progress. Since the model year is shifted to the beginning of new year, sales will commence as of the beginning of 2014 within the scope of new models.

  • In order to gain advantage against domestic producers through improvements of current products;
  • 16 + 16 Gear Box is being used
  • Hydraulic lift withlifting capacity of 6000 kg is put into use
  • The project to use 12 x 12 gearbox instead of 12 x 3 gearbox used in classic model tractors is

carried out.

TÜMOSANPRODUCT DEVELOPMENT

32

Presentation for Investors June 2013

slide-34
SLIDE 34

Cotton Picking Machine

  • Cotton cultivation area are shifted toSoutheastern Anatolia Region with Southeastern Anatolia Project (GAP).
  • More than 30.000 establishments
  • f 100 ha and below need their own medium scale self-propelled

cotton picking machines.

  • Field tests of the first prototype based on concept design are being made.
  • The application made at the end of 2012 for TUBİTAK support is approved and right now it is under

scrutiny.

  • Massproduction is planned to commence at the end of 2014.
  • Domestic target market is establishments of 100 ha and below and export potential is high.

Spraying Machine

  • Due to the ban imposed on aerial spraying in May 2006, land spraying became

mandatory.

  • Although the number of equipment used for ground spraying rapidly increases, there is no suitable haulage

vehicle .

  • Since the cost of imported haulage vehicles is high, the need for locally produced haulage vehicles

increasingly continues.

  • Concept designis completed. Infrastructure(engine, transmission) developed for Cotton Picking Machine

will be used.

  • It is planned to commence mass production at the end of 2014.

Telehandler

  • Concept design works are in progress.

TÜMOSANPRODUCT DEVELOPMENT

33

Presentation for Investors June 2013

slide-35
SLIDE 35
  • Having the design and production technologies of engine and transmission elements

which are some of the most important components of tractors,

  • Increasing number of Tümosan brand tractors year by year and strengthening secondary market,
  • Havingthe widest domestic product range in Turkey,
  • Being the onlyproducer of 3 cylinder, 85 HP engines in Turkey,
  • Selling quality

products at affordable prices,

  • Strong position in production of 115 HP and above tractors,
  • Confidence provided to consumers with domestic production,
  • Capability to produces engines with low fuel consumption,
  • High performance tractors,
  • Supplying cheap spare parts easily,
  • Widespread service network.

PARTICULARS THATPROVIDED COMPETITIVE ADVANTAGE TO TÜMOSAN

34

Presentation for Investors June 2013

slide-36
SLIDE 36
  • Tümosan, which had produced a total of 10.046 tractors in 18 years from the first year of production

to its privatization in 2004, produced and sold more than 10 thousand tractors in 2011 only.

  • Prototype and certification works on alternative products developed with intent to increase the

market share in tractor segment of below 50 HP where the competition is high are in progress. Since the model year is shifted to the beginning of new year, sales will commence as of the beginning of 2014 within the scope of new models.

  • Product launchof the first product in tractor segment of 110 HP and above which is composed of

imported products as they are not produced in Turkey will be in September 2013. Competitive advantagewill be gained due to the price advantage as compared to imported products.

  • As of2012 and 2013/5, Tümosan is the market leader in 90-99 HP segment and 100-109 HP segment

in terms of sales at home and abroad.

DISTRIBUTION OFTÜMOSAN SALES IN TERMS OF SEGMENTS

35

Presentation for Investors June 2013

slide-37
SLIDE 37

Below tableshows the market shares of Tümosan based on Horse Power.

DISTRIBUTION OFTÜMOSAN SALES IN TERMS OF SEGMENTS

Source: Tarmakbir, TSI, FAO, Company

  • TÜMOSANmaintains its market share leadership with 33.96% in 90-99 HP segment with 8095

and 8195 models.

  • TÜMOSANis the leader in 100-109 HP segment with model 8105 and has a market share of 43

%.

YEAR/ HORSE POWER (HP) < 50 50-

  • 59 60-
  • 69 70-
  • 79 80-
  • 89 90-
  • 99 100-
  • 109

2011 2% 7% 8% 29% 19% 44%

2012 4% 11% 7% 26% 16% 32% 10% 2013 / 6

7% 9% 24% 28% 34% 43%

36

Presentation for Investors June 2013

slide-38
SLIDE 38

While reaching to 60% of Turkey with 48 authorized dealers in 2009, today Tümosan can reach all over Turkey through its widespread authorized dealer network composed of 101 dealers in 65

provinces under 11 regional directorates.

  • In Turkish market dealers buy the old tractors when a new tractor is purchased. Therefore

Tümosan prefers financially strong candidates among from those dealing with tractor trade when selecting authorized dealers.

  • In order to meet the increasing needs of growing tractor market it is aimed to apply «3S

(sales, service, spa re parts) co ncept at sales and after sales points and further increase

the service quality.

  • Production planning is shaped by obtaining estimates from dealers regarding the tractor sales in terms of models for subsequent year.
  • As of 2013 quota based premium system is applied and efficiency of production and sales is ensured.
  • Sales performances and stocks of dealers are weekly followed by regional directorates and head office.
  • Repair period is very important in agricultural sector and after sales services play an important role in brand preference.
  • Tümosan has a service network composed of 367 service points all around the country.
  • All authorized services attend to periodic trainings fornew models at the factory and they are certified.
  • Upon increase of the number of Tümosan tractors in the market, spare parts sales which has a high profitability rate will also increase.

TÜMOSANSALES: DEALER AND SERVICE STATION NETWORK

in 11 provinces 13 dealers in 11 provinces 26 dealers in 8 province s 14 dealers in 8 provinc es 13 dealers in 8 province s 10 dealers in 7 provinc es 10 dealers in 12 province s 15 dealers

37

Presentation for Investors June 2013

slide-39
SLIDE 39
  • Tümosan has been organizing many events within the scope of corporate identity

and brand awareness works that it intensified in recent years.

  • National and international fairs have great importance also in tractor market as well as in every branch of
  • automotive. Tümosan participates in 33 fairs in provinces and counties every year in average.
  • Through field works and service days organized countrywide brand and products are introduced on a one-to-
  • ne basis.
  • Established in 2011, call center provides service 24 hours a day and plays an important role in

increasing after sales service quality and customer satisfaction. In addition, the feedback contribute to

improvement of product and service quality.

TÜMOSANSALES: DEALER AND SERVICE STATION NETWORK

38

Presentation for Investors June 2013

slide-40
SLIDE 40
  • The Research and Development Center which was established within Tümosan to be close to technical and academic

infrastructure and have an easy access to qualified human resources is located in İstanbul since 2004.

  • In order to carry out existing and future projects more efficiently within the scope of university - industry cooperation, R&D Center

was moved to İTÜ TechnoPark in February 2013.

Production of Engine- Gearbox- Transmission

Projects Supported by TUBİTAK

  • European Union Emission Standard Stage III Diesel Engine Project and 16+16 Gearbox Project are completed.
  • Projects of reducing noise level, development of LPG and CNG fueled engine, production of 6 cylinder engine and design

and production of powershift transmission are in progress.

  • Stage IV:Optimization works of the works related to compliance with European Union Stage IV emission standard which will be in effect in

Turkey in 2014 continue.

Tractor Production

Projects Supported by TUBİTAK

  • Projects of 3 and 4 cylinder tractor design and4WD front axle production are among the projects completed in 2010.
  • Within the scope of design and production of 115-125 HP tractor project in progress, 125 HP tractor is in

the production phase.

TÜMOSANR&D WORKS

39

Presentation for Investors June 2013

slide-41
SLIDE 41
  • Agricultural

Sector

  • Turkey has the 7th biggest agricultural economy in the world
  • Average annual growth rate of agricultural sector is 11%
  • Decreasing number of agricultural establishments and increasing average land size
  • Stable and continuous allocation of resources to agriculture.

Tractor Market

  • Marketsize with 40 thousand tractors per year
  • More than 700 thousand old tractors above 25 years of age to be renewed
  • Expectation of more than 50 thousand tractor sales annually in

conjunction with scrappagepage incentive

Tümosan

  • Leapin market share
  • Brand perception getting stronger every year
  • Rapidly growing product portfolio due to high production capability
  • Getting an increased share from the market due to competitive prices of highly

profitable tractors of 100 hp and above and increased profitability

  • Rapid adaptation to changing market conditions
  • Continuously improved production processes and increasing productivity
  • Ability to manage technology
  • Rapid growing because of revenues gained from public offering and increased profitability

due to improvement in supply costs

  • TÜMOSANINVESTMENT

THEME 1

40

Presentation for Investors June 2013

Engine and Tractor

slide-42
SLIDE 42

Financial Statements

slide-43
SLIDE 43

TÜMOSAN SUMMARIZED FINANCIAL INDICATORS

42

Presentation for Investors June 2013 Million TL 2009 2010 2011 2012 2012/3 2013/3 2012/6 2013/6 Sales 59.0 181.1 411.4 292 86 90 148.2 207.1

Change 207% 127%

  • 29%
  • 4.65%
  • 39.71%

Gross Profit 9.4 34.7 90.6 54 18 19 28.3 46.9

Margin 16% 19% 22% 18% 21% 21% 19%

22 %

Real Operating Profit 2.4 22.5 69.1 36 11 18 18.3 32.1

Margin 4% 12% 17% 12% 13% 20% 12% 15%

PBITA 5.0 24.8 72.7 76 16 24 28 48.5

Margin 8% 14% 18% 26% 19%

27 %

19% 23%

Net Profit 0.0 16.3 54.0 30 10 16 14.2 30.1

Margin 0% 9% 13% 10% 12% 18% 10% 15%

slide-44
SLIDE 44

TÜMOSANCOMPARATIVE BALANCE SHEET- ASSETS

43

Presentation for Investors June 2013

Since the Audit Company changed the items in Balance Sheet due to the amendments made in communique data for 2012/6 and 2013/6 will be presented on the next page.

Current Assets, Million TL 2009 2010 2011 2012 2013/3 Cash and Cash Equivalents 0.2 4 .1 0.3 22 0.4 Trade Receivables 2.4 11.9 31.5 52 71.4 Receivables from Related Parties 1.1 5.0 1.0 79.1 84 . 7 Inventories

  • 30. 7

32.2 79.9 67 .3 76 Other Current Assets 4 .5 11.2 20.1 32.3

  • 38. 7

Assets Held For Transfer

  • Total Current Assets

38.9 64.4 132.7 252.7 271.2 Fixed Assets, Million TL 2009 2010 2011 2012 2013/3 Tangible Fixed Assets, Net 35.9 37 .0 82.6 74 .1 73 Intangible Fixed Assets, Net 0.1 1.3 0.5 0.4

  • 0. 7

Investment Properties 1.8

  • 1. 7
  • 1. 7

0.4 0.4 Receivables from Related Parties

  • 61.0
  • Other Fixed Assets

0.1 0.1 0.1 0.4

  • Deferred Tax

4 .6 0.2

  • Total Fixed Assets

42.4 40.3 145.9 75.3 74.1 Total Assets 81.3 104.7 278.6 328 345.3

slide-45
SLIDE 45

TÜMOSANCOMPARATIVE BALANCE SHEET- ASSETS

44

Presentation for Investors June 2013

Current Assets, Million TL 2012 2013/6 Cash and Cash Equivalents 22 35.5 Trade Receivables 52.4 88.8

  • Trade receivables from unrelated parties

52 88.3

  • Trade receivables from related parties

0.4 0.5 Other Receivables

  • 78. 7

0.04

  • Other receivables from related parties
  • 78. 7

0.04 Inventories 67 .3 75.8 Prepaid Expenses 1.1 3.1 AssetsRelated to Current Period Tax

  • 0.01

Other Current Assets 31.2 44 .2 Total Current Assets 252.7 247.6 Fixed Assets, Million TL 2012 2013/6 Other Receivables

  • 3.1
  • Other receivables from related parties
  • 3.1

Investment Properties 0.3 0.3 Tangible Fixed Assets 74 .1 74 .8 Intangible Fixed Assets 0.4 0.5

  • Other Intangible Fixed Assets

0.4 0.5 Other Fixed Assets 0.3 Total Fixed Assets 75.3 78.8 Total Assets 328 326.4

slide-46
SLIDE 46

TÜMOSANCOMPARATIVE BALANCE SHEET-LIABILITIES AND NET DEBT

45

Presentation for Investors June 2013

Since the Audit Company changed the Balance Sheet Items due to the amendments made in

Communique, 2012/6 and 2013/6 data will

be stated in next page.

Short Term Liabilities , Mi l li

  • n TL

2009 2010 2011 2012 2013/3 Financial Liabilities 23.1

  • 13. 7

26.1 47 .4 37 .6 Trade Payables 10.3 28.6 85.9 53.9 66.5 Payables to Related Parties 9.5 0.0 0.0 0.0 0.5 Tax Liability for Profit for the Period

  • 2.3

7 .8 4 .5 Debt Provisions 0.8 3.9 5.2 4 .4

  • 1. 7

Provisions Related to Employee Benefits 0.1 0.3 0.3 0.4 0.4 Other Short Term Liabilities 2.9 2.4 3.5 11

  • 15. 7

Total Short Term Liabilities 46.7 48.9 123.2 124.9 126.9 Long Term Liabilities, Million TL 2009 2010 2011 2012 2013/3 Financial Liabilities

  • 5.9

10.2 1.8 0.6 Provisions Related to Employee Benefits 0.6 1.2 1.3 1.6 1.6 Other Long Term Liabilities 1.6

  • 1.8

1.3 1.1 Total Long Term Liabilities 2.2 7.1 13.4 4.7 3.3 Equities, Million TL 2009 2010 2011 2012 2013/3 Paid-In Capital 55.0 56.0 56.0 115.0 115.0 Reserves on Retained Earnings 0.1 0.1 0.1 0.1 0.1 Special Funds 1.0

  • Share Issuance Premiums
  • 26.2

26.2 Tangible Fixed Asset Valuation Fund

  • 39.4

39.4 39.4 Accumulated Losses

  • 23 . 7
  • 23. 6 - 7 . 3
  • 11. 8

17 .8 Net Profit for the Period 0.0 16.3 54 .0 29.6 16.6 Total Equities 32.4 48.7 142 198.5 215.1 Total Liabilities and Equities 81.3 104.7 278.6 328 345.3

slide-47
SLIDE 47

TÜMOSANCOMPARATIVE BALANCE SHEET-LIABILITIES AND NET DEBT

46

Presentation for Investors June 2013

Short Term Liabilities , Million TL 2012 2013/6 Short Term Borrowings 4 .8 12.2 Short Term Portions of Long Term Borrowings 16.6

  • 2. 7

Other Financial Liabilities 25.9 11.8 Trade Payables 53.9 63.2 Trade payables to related parties 0.06 0.02

  • Trade payables to unrelated parties

53.8 63.1 Payables within the Scope of Employee Benefits 1.8 3.8 Deferred Incomes 6 3.6 Tax Liability for Profit for the Period 7 .8 7 .5 Short Term Provisions 4 .8 5.4 Short term Provisions related to employee benefits 0.4 0.5

  • Other short term Provisions

4 .4 4 .9 Other Short Term Liabilities 3.1

  • 11. 7

Total Short Term Liabilities 124.9 121.9 Long Term Liabilities, Million TL 2012 2013/6 Long Term Borrowings 1.8 0.3 Long Term Provisions 1.6 1.8

  • Long term Provisions related to employee benefits

1.6 1.8 Deferred Tax Liability 1.3 0.5 Total Long Term Liabilities 4.7 2.6 Equities, Million TL 2012 2013/6 Paid-In Capital 115 115 Share Premiums 26.2 13.1 Tangible Fixed Assets Evaluation Fund 39.4 39.4 Actuarial Loss/Gain Fund From Retirement Plans 0.3 0.5 Reserves on Retained Earnings 0.08 3.9 Accumulated Losses (12.1)

  • Net Profit for the Period

29.5 30.1 Total Equities 198.5 202 Total Liabilities and Equities 328 326.5

slide-48
SLIDE 48

TÜMOSANCOMPARATIVE INCOME STATEMENT

* It is stated because of the changes made in Income Table Items by Audit Company due to the amendments made in Communique.

47

Presentation for Investors June 2013

Real Operating Incomes, Million TL 2009 2010 2011 2012 2012/3 2013/3 2012/6 2013/6 Sales Revenues 59.0 181.1 411.4 291.6 86.1 90.2 148.3 207 .1 Cost of Sales (-)

  • 49.

6

  • 146.

4 -320. 8

  • 238
  • 68. 4

71.1 120 160.2 Gross Profit 9.4 34.7 90.6 53.6 17.7 19.1 28.3 46.9 Research and Development Expenses

  • 1. 0 -0. 8 -1. 6 -0. 9
  • 0. 2
  • 0. 5
  • 0. 6
  • 1. 1

Marketing and Sales Expenses

  • 3. 6 -8. 9 -15. 9 -12. 9
  • 5. 5
  • 0. 3 - 7 . 6
  • 8. 3

General Administrative Expenses -2. 4 -2. 6 - 4 . 1

  • 5. 3
  • 1. 4
  • 1. 2
  • 2. 8
  • 3. 2

Other Operating Incomes 0.8 1.9 2.3 2

  • 0. 7
  • 0. 7

1.8 7 Other Operating Expenses

  • 0. 6 -0. 2 -2. 6 -0. 4
  • 0. 1
  • 0. 0
  • 0 . 7
  • 9. 2

Operating Profit 2.7 24.2 68.8 36 11.4 17.8 18.3 32.1 Financial Revenues 3.3 2.6 9.4 36.3 3.6 6.6 6.8 19 Financial Expenses

  • 5, 6

6.2. -11. 8 34 . 7

  • 2. 4 - 4 . 3 - 7 . 6
  • 1 4 . 1

Profit Before Tax 0.3 20.6 66.4 37.6 12.6 20.1 17.8 37.2 Tax Expense for the Period

  • -13. 2 - 7 .

8

  • 2. 6
  • 3. 8 - 4 . 9
  • 8

Deferred Tax Income / Expense

  • 0. 2 - 4 .

4 0.8 0.1 0.1 0.1 1.3 0.8 Net Profit for the Period 0.0 16.3 54.0 29.6 10.1 16.4 14.2 30.1 Financial Fixed Assets Growth Fund *[Actuarial Gain/ Loss Within the Scope of Employee Benefits]

  • 41.4
  • 0.4

0.2 Tax Effect

  • 2. 1
  • 0.5

0.2

  • -0,04
  • 0, 07

Total Comprehensive Income 0.0 16.3 93.3 29.6 10.6 16.6 14.5 30.2

slide-49
SLIDE 49

Sales of Tümosan Engine and Tractor Industry Inc.

When compared to first half of previous year sales escalated from TL 148.273.106to TL 207.156.933 andthe rate of increase is 39.71%. When compared to first half of previous year,its operating profit increased from TL 18.314.212 to’ TL 32,147,302 andthe rate of increase is 75.53%. When compared to first half of the previous year net profit for the period increased from TL 14.251.978 to TL 30,061,703 and the rate of increase is 110.93% .

TÜMOSAN FINANCIAL TABLES

48

Presentation for Investors June 2013

Engine and Tractor

slide-50
SLIDE 50

Public

Offering and

Latest Status

slide-51
SLIDE 51

Dividend Policy

  • Due to the decision taken at Ordinary General Assembly held on 13.05.2013 TL

26.749.000 from the profit of 2012 was distributed in cash on 31.05. 2013.

  • It is planned to pay dividends regularly from the profits of 2013 and subsequent years.

Protocol Made Regarding Receivables from Related Parties

  • In accordance with the protocol made between the Company and related party

partnerships TL 15.764.808,44 of the receivables amounting 82,4 million TL as of 30.09.2012 was paid to our Company on 20. 12. 2012 and TL 77,095,546.76 was paid on 05.06.2013 with the interest specified in the protocol.

Bonus Share Distribution

  • 4% Bonus Group B bearer shares of Tümosan are transferred to the accounts of

investors who invested in TMSN shares from Public Offering and kept them in their accounts for 90days. A total of 266.641,738 TMSN shares were transferred to investors

  • n 06.03.2013.

TÜMOSAN INVESTMENT THEME 2

50

Presentation for Investors June 2013

Engine and Tractor

slide-52
SLIDE 52

TÜMOSAN INCENTIVES

51

Presentation for Investors June 2013 Incentive Who Will Benefit From Application Details *Bonus (Additional) Share Investors Who Invested in Shares from Public Offering In case investors keep all or some company shares they purchased from public offering in their accounts for 90 days as of the date they are traded at İMKB, they will be entitled to receive 4% bonus (additional) Group B bearer shares of Tümosan to be calculated on the basis of the lowest Company share in their account at the end of any day within this period

  • f 90 days.

*Bonus (additional) Group B bearer shares of Tümosan at the rate of 4% are transferred to investors who purchased TMSN shares from Public Offering and kept them in their accounts for 90 days. In total, 266,641.738 TMSN shares are transferred to investors. *Daily Purchase Order Commitment All investors Daily purchase orders for 2 million shares at the public offering price for 10 business days including the date when the shares begin to be traded will be entered into the system in the

  • pening session of stock exchange. At the end of 10th business day purchase order for 20 million

shares at public offering price will be entered to the system. *Within the first 10 days a total of 15.625.648 TMSN shares are purchased back by our controlling shareholder, Ereğli Tekstil within the scope of Daily Purchase Order. Financial Performance Warranty for 2013 All investors Controlling partner of the Company, Ereğli Tekstil will distribute bonus shares to compensate the deviation if the average of FAVÖK and Net Profit for 2013 will be less than TL 72.5 million. Bonusshares will be distributed among all shares traded at the exchange following the announcement of financial statements for 2013. Amount of the additional shares to be distributed will be limited with 50 percent . Condition of being participated in Public Offering will not be sought in distribution.

slide-53
SLIDE 53

PARTNERSHIP STRUCTURE OF TÜMOSAN

52

Presentation for Investors June 2013

Partner Public Offering Proposal Current Capital (TL) Share of Capital (%) Capital (TL) Share of Capital (%) Eregli Tekstil Turizm San. and

  • Tic. A.Ş.

82.090.905 78.18% 71.000.000,00 (Non-public) 61.74% 15.359.006,26 (Public) 13.35% Muzaffer ALBAYRAK 6.586.381 6.27% 2.000.000,00 1.74% Bayram ALBAYRAK 3.264.543 3.11% 2.000.000,00 1.74% Nuri ALBAYRAK 3.264.543 3.11% 2.000.000,00 1.74% Kazım ALBAYRAK 3.264.543 3.11% 2.000.000,00 1.74% Mustafa ALBAYRAK 3.264.543 3.11% 2.000.000,00 1.74% Ahmet ALBAYRAK 3.264.543 3.11% 2.000.000,00 1.74% Hedef Girişim Sermayesi Yatırım Ortaklığı A.Ş. 2.000.000,00 1.74% Other 14.640.993,74 12.73% TOTAL 105.000.000 100,00% 115.000.000 100,00%

slide-54
SLIDE 54

TUMOSAN İSTANBUL STOCK EXCHANGE - TMSN

53

Presentation for Investors June 2013

slide-55
SLIDE 55

TÜMOSAN Engine and Tractor Industry Inc. Head Office ⇥:⇥ Dünya Ticaret Merkezi A3 Blok Kat:8 34149 Yeşilköy / İstanbul Phone⇥:⇥+90(212)468 19 00 Fax⇥:⇥+90(212)465 25 86 Factory⇥:⇥Büyükkayacık Mah. Aksaray Çevre Yolu Cad. No: 7/1 Selçuklu/Konya Phone⇥:⇥+90 (332) 239 05 40 Fax⇥:⇥+90 (332) 239 11 88 E-Mail⇥:⇥info@tumosan.com.tr Web⇥:⇥www.tumosan.com.tr