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Presentation of Analyst October 2013

ENGINE and TRACTOR

Presentation of Analyst, October 2013

CONFIDENTIAL

• This presentation

is prepared by TÜMOSAN Engine and T ractor Industry Inc., Department of I nvestor Relations to inform the analysts It shall not be used as a marketing document.

• It is forbidden to use the presentation for purposes other than those specified here. TÜMOSAN Engine

and T ractor Industry Inc. refuses responsibility for all kinds of legal and penal liabilities to arise from opposite acts.

• This presentation and its content are confidential. It is forbidden to reproduce and copy the presentation even in part and share it with

third persons under no circumstances for purposes other than those intended.

• Although it is considered that the expectations reflected in this presentation are reasonable, these expectations

might be effected by the changes in various factors and assumptions and differences might occur between

the real results obtained and expectations.

• TÜMOSAN, senior staff, managers, employees or any other person cannot be held responsible for damages arising from utilization of

this presentation.

Legal Warning

Presentation of Analyst, October 2013

ALBA YRAK Group

• Albayrak Group carries on its activitiy that began in 1952 in construction Industry with more than 20 companies that are active

in 6 different industries listed below .

• 1. Service
• Beginning its garbage collection business during the «garbage crisis» of 1992 in İstanbul, A

lb ay rak Group is the bigge st c

• m

p a n y i n G a r b a g e Co l e ct i

• n

and Waste Management fields wi th 8 3 v e h i cl e s and 5.500 personnel. In addition it carries on its waste management business in Iraq and Pakistan with 400 vehicles and more than 7.000 personnel. Apart from garbage collection, it has been providing services such as meter 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.

• 2. Contracting and

Real Estate

• Growing rapidly due to the fast momentum of urbanization in Turkey during 50s Albayrak Group has recently completed important

projects which include İstanbul Taksim Metro, Topkapı Merkez Evleri Housing Construction, İzmir Mavişehir Housing Construction, Sarıyer Çayırbaşı Highway Tunnel Construction, Trabzon Akyazı Sports Complex Construction, and Metrobus Road Construction in Pakistan. Ongoing projects of the group include hospital constructions in Somalia, Urla county of İzmir and Sivas, Kartal- Kaynarca Metro Construction and a 33.000 spectator-capacity Stadium Construction in Kocaeli .

• 3. Logistics
• First business apart from construction industry was personnel transportation business commenced in 1982.Albayrak Group is
• ne of the biggest inner city service companies in the country today.
• Albayrak Group's Car Rental Company established in 1995 serves to private sector and public institutionswith 1.500 cars and

minibuses today.

• Trabzon Port which 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.

Albayrak Group

Presentation of Analyst, October 2013

• 4. Industry
• Ereğli Tekstil which was established by Sümerbank in 1937 was acquired by the Group in 1997 throughprivatization and

modernized . The plant carrieson its business in an indoor area of 46.500 square meters and has a daily production capacity of 18.000 meters of fabric and 12.000 kg of thread today .

• Balıkesir Paper Factory which was acquired through privatization in 2003 was only modernized due to legal process and it will

have a production capacity of 200 tons paper per year with an investment of 30 million € . The factory will use waste paper as raw material and will be put into service in 2014.

• Facilities of Tümosan which was acquired throughprivatization in 2005 are builtonan area of 1,6 milyon squaremeters in Konya, 93

thousand square meters of which are indoor area and it has an annual production capacity of 45.000 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 tractor and engine production facilities and it covers an area of

100.000 m2 11.000 m2 of which is indoor area and its annual capacity casting is 20.000 tons Capacity increase works will continue with investments to be made.

• 5. Media
• Albayrak Groupincludes Yeni Şafak Newspaper which began its publication life in 1995 and TV Net television which has been

broadcasting as of 2007.

• 6. Tourism
• Birun Otelcilik within Albayrak Group runs tableland tourism facilities composed of mountain huts built in Kümbet Village

Koç Tableland at a distance of approximately 60 km to Giresun at an altitude of 2.300 meters.

• Moreover the group maintains its operationsto develop holiday villages projects on tourism areas that it owns in Marmaris and

Didim.

Albayrak Group

Presentation of Analyst, October 2013

Presentation of Analyst, October 2013

Agricultural Sector - General View

Agricultural Sector - General View

Agricultural Production in Turkey

• With 24,5 million hectares of cultivated agricultural area, Turkey is among the top 15 countries in the world.
• As of 2012 Agricultural Gross Domestic Product (GDP) was $ 62.5 billion and 8.2% of total GDP. In terms of agricultural capacity Turkey

ranks first in Europe and fifth in the world.

Share of Agricultur al Production in GDP 8,2%-‐2012 12 10 8 6 4 2 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Share of Agricultural Production in GDP %

24 30 37 45 43 49 56 51 62⇥62 63 70 60 50 40 30 20 10 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Agricultural Production Mr $

Presentation of Analyst, October 2013

Source: Tarmakbir, TSI, Ministry of Food Agriculture and Livestock *Source: Food and Agriculture Organization of the United Nations (FAO), TUİK (Turkish Statistical Institute) *Source: Food and Agriculture Organization of the United Nations (FAO), TUİK

Selected Indicators Turkey European Union 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 HP

67 hp

>100 HP

Agricultural Establishments

• There aremore than 2,3 millionactive establishments in the sector.
• In terms of acreageagricultural establishments are intensified in the range of 2-5 hectares with the ratio of 31%.
• Agricultural lands of establishments are fragmented. 45% of the total cultivated land has 4 – 9 fragments. Only 11% of the lands is in
• ne piece.

Source: Tarmakbir, TSI, Ministry of Food Agriculture and Livestock *2011 and 2012 data are compiled from National RegisTL of Farmers System and estimated data of TUİK. Source: TUİK, Eurostat

Presentation of Analyst, October 2013

Agricultural Establishments

Number of Establishments Min Size of Establishment Ha

Land Distribution

Turkish Market 1993 - 2013

Total number of tractor sales, 2012 Average of last 20 years (1993- 2012) 2013 End of July traffic registry : 51.032 : 34.366 : 27.539

Source: Tarmakbir, Agrievolution,TUİK

• Agricultural supports continue.
• Credit conditions of Ziraat Bank are better than previous year.
• Privatebanks' interest in agricultural credits increased and

competition between the banks created a credit environment in favor of farmers.

• Climatic conditions affected agriculture positively throughout the

country.

• Crops are high.

MARKET INDICATORS FOR 2013

Presentation of Analyst, October 2013

Num ber Year

• During the last decade average HP of tractors increased by 20% and average HP of tractors sold reached to 70 HP.
• Tandem drive tractors ratio showed a sevenfold increase and ratio of 4WD increased to 65%.
• Sales of cab-over tractors was tripled as compared to previous years and 50% of the tractors sold are cab-over

tractors.

• The increase in vineyard an orchard segment is three and a half times more.

Developments in Tractor Sector (2003-2013)

Presentation of Analyst, October 2013

Ratio of Vineyard an Orchard Tractors Ratio of Cab-Over Tractors Ratio of 4WD Average HP

Tractor Pool

• Total tractor pool is 1,500,000 tractors.
• When regional distribution of tractor pool is examined, it is seen that Aegean, Mediterranean,

Western Black Sea and Western Marmara regions take place near the top. Highest number of tractors in use are in Manisa province. (70.000 tractors).

• Distribution of approximately 750.000 tractors older than 25 years is as follows;
• 25-29 years ; 23 % id est 172.500
• 30-34 years ; 17 % id est 127.500
• 35-39 years ; 37 % id est 277.500
• +40 years ⇥ ; 23% id est 172,500
• Upon enactment of scrap law a total of 750 thousand tractors, over 25 years old, 110 thousand of

which are registered but non-operative may be scrapped.

Source: Tarmakbir, TSI, FAO, Company

Presentation of Analyst, October 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%

Tractor Market

TSI Figures 2013 / 07

• According to TSI data for the first 7 months of 2013 TÜMOSAN, is ranked as second in the

sector with a market share of 15 %.

Source: TSI,

TSI SALES FIGURES 2012/7 2013/7

Tümosan Sales (Sales Volume)

4.009 4.061

Grand Total of Sales (Total Sales)

30.058 27.539

Market Share (Market Share)

13.33% 15%

Grand Total of Sales (Total Sales), 27.539 Tümosan Sales (Sales Volume) 4.061 Market Share (Market Share), 15%

2013/7 Monthly TSI Figures

Tümosan Sales (Sales Volume), 4.009

Presentation of Analyst, October 2013

Grand Total of Sales (Total Sales), 30.058 Market Share (Market Share), 13.33%

2012/7 Monthly TSI Figures

TÜMOSAN Sales Volume

According to 2013/9 monthly data of TÜMOSAN sales volume is increased by 33 % compared to previous year.

Years 30.06.09 31.12.09 30.06.10 31.12.10 30.06.11 31.12.11 30.06.12 30.06.13 30.09.12 31.12.12 30.09.13

Tümosan Sales (Number )

725 1.668 1.888 4.891 4.961 10.337 3.672 4.315 4.760 6.735 6.315

Sales Revenu es (Million TL)

• ‐

59

• ‐

181.1 196 411.4 148.3 207.1 * 291.6 *

Source: Company Sales to Dealers

TÜMOSAN (Corporation Data) 2012/9 2013/9 PRODUCTION 4.397 6.470 SALES 4.760 6.315

4.760 6.315

4.000 3.000 2.000 1.000 5.000 6.000 7.000

2013/9

2012/9⇥2013/9

Presentation of Analyst, October 2013

33 % Increase

2012/9

Tümosan Sales Data

Presentation of Analyst, October 2013

Movers and Shakers of Demand

Short Term

• scrappage incentive may increase annual sales more than 65 thousand.
• 2014 and following election period will effect agricultural support positively.
• Economicstability will create suitable credit conditions.
• As of the end of 2015 using European Union Emission Standard Stage IV engines shall be

mandatory and it will shape the future of domestic industry.

Medium – Long Term

• Consolidation of lands will increase the mechanization of growing agricultural establishments.

It will cause the farmers to head towards tractors with higher horse power and higher technology.

• Increased population and necessity of increase in production increases the importance of industrial

agriculture.

• The old age of tractor poolincreases the need of renewal every year .
• Resources allocated for agriculture by the state are being stabilized.
• Percentage of tractors which is 28% of agricultural establishments will increase.
• Development of subsidiary tractor Industry will provide the opportunity to manufacture cheaper and

quality products.

Prominent Factors in Selection

• f a Tractor
• Brand
• Performance of main components such as engine and

transmission

• Affordable price for farmers
• Depth of secondary market
• Fuel economy
• A strong relationship between Dealer and Farmer, possibility of

credit and prefinance

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

land and the equipment to be used

Presentation of Analyst, October 2013

• At Home
• Perception of high quality and durable tractor brand at an affordable price
• High fuel economy and performance
• Financially strong sales network composed of experienced tractor dealers who

are respectful persons in the region

• Authentic engine, transmission and tractor design – production capability
• Export
• Bringing perception and awareness of brand in Turkey to attention grabbing

level on a global scale

• Positioning suitable product in target market
• Cooperation with financially strong, experienced and respected companies in

target market

Presentation of Analyst, October 2013

Criteria for Success in Market

Market Forces

Presentation of Analyst, October 2013 Production Purchase Guarantee at 75% of Tractor Insurance Price Lien Credit Credit Facility Request Farmer Agricultural Establishment Tractor Sales Taking Back the Old Tractor as Down Payment Sales to Dealers

1976 Tümosan is established with participation of Makina ve Kimya Endüstrisi Kurumu (MKEK), Türkiye Zirai

Donatım Kurumu (TZDK), Şekerbank, Türkiye Denizcilik Bankası ve Devlet Sanayi ve İşçi Yatırım Bankası as a Public Economic Enterprise to produce tractors and diesel engines for light duty trucks, trucks and heavy trucks.

1977 For production of tractors and diesel engines a licence agreement was signed with Italian FIAT company and a licence to produce 3, 4 and 6 cylinder diesel engines and 8 Gp tractors was obtained . 1981 Engine assembly and test workshop was completed in Konya and engine production commenced. 1983 Tractor assembly workshop was completed and tractor production commenced. 1986 Tractor mechanics workshop was completed. 1987 Investment in production lines for engine block, cylinder head and main bearing cap was completed and production of domestic engines commenced. 1987 – 1992 Licence agreement signed with FIAT Company expired in 1988 and Tümosan continued to produce diesel engines and tractors under its own brand in the advancing years. Tractor production was ceased between the years of 1987-1992 and only engines were produced. 1993 Tractor production was recommenced. 1998 It was included in the scope of privatization. 2000 Privatization tender was completed but since the acquiring companies didn't concluded the contracts the tender was not awarded. 2004 At the end of second privatization tender it was acquired by Alçelik, one of the companies within Albayrak Group.

Presentation of Analyst, October 2013

TÜMOSAN Before Privatization

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

• Tümosan produces diesel engines and tractors in Konya, on its own area covering 1.6 million square

meters, 93 thousand square meters of which is indoor space.

• Having the biggestcapacity ofhave capacity 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 units/year-three shifts Tractor production capacity: 45.000 units/year-three

shifts,

• A total of 202 models under 22 main models in 10 series in the range of 50-105 HP for fields and Field-Orchard

as one drive, two drive,with cabin and canopy.

• Konya where the facilities are located has 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 in country with 20% .

BIST CODE-TMSN

TÜMOSAN Company Profile

Presentation of Analyst, October 2013

Issued Capital TL 115.000.000 Upper Limit of Registered Capital TL 500.000.000

Average Number of Personnel 30.09.2013 White Collar 121 Blue Collar 286 Total 407

• While Tümosan, was providing services with 48 authorized dealers in Turkey in 2009 today it reaches all over Turkey with its widespread network composed
• f 104 dealers in 65 provinces under 11 regional

directorates .

• In order to meet the increasing needs of growing tractor market it is aimed to implement 3S concept (Sales, Service, Spare Parts) in sales and after sales

points and increase the service quality further.

• 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 certificates that ensure quality of the products . These are; Production Sufficiency Certificate and Quality Conformity Certificate.

Laboratory obtained the quality competence certificate from Turkish Standards Institute for quality control. Tümosan also has TS-EN-ISO 9002 and AQAP 120 quality assurance certificates.

TÜMOSAN

Presentation of Analyst, October 2013

Diesel Engine Production

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

themsince 1981 without interruption. During last three decades it produced 170 thousand diesel engines.

• 3 cylinder 50-55-65-75-85 HP and 4 cylinder 75-85-95-

105-110-115-125 HP diesel engines in compliance with European Union Emission Standard Stage III-A are being produced.

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

• It provides competitive advantage because they are produced at a lower cost compared to

import engines.

• Quality, continuous and most importantly, improvable engine supply is very important in

tractor production.

TÜMOSAN Diesel Engine Production

Product Production Capacity (Units/Year) Single 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

Presentation of Analyst, October 2013

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 current models continue without interruption.

Phase II: Prototype Production and Tests

• Technical drawings and details in reference 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.
• The tractor representing the mass production is produced at prototype workshop in conformity with

samples received from suppliers for tests .

• 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.

• Implementation of lean production to increase productivity is performed together with

consultants.

TÜMOSAN Tractor Production

Presentation of Analyst, October 2013

TÜMOSAN Tractor Portfolio

Tractor Series Horse Hp Cylinder 2WD 4WD Engine Emissio n Price Range Vineyard and Orchids 4200 50-55 3  Stage III TL 36.100 TL 41.300 5.200 5 5

• ‐6

5

• ‐7

5

• ‐85

3   Stage III TL 52.000 TL 69.200 Field 4000 50-55 3  Stage III TL 35.500 TL 40,500 4100 50-55 3  Stage III TL 35,800 TL 40,800 6000 55-‐65 3   Stage III TL 50.700 TL 64.300 6100 55-‐65 3   Stage III TL 51.700 TL 67.300 7000 75-85 3   Stage III TL 55.000 TL 73.100 7100 75-85 3   Stage III TL 58.700 TL 74.200 8000 7 5

• 8

5

• 95

4   Stage III TL 58.000 TL 81.000 8100 7 5

• 8

5

• 95
• 105

4   Stage III TL 65.500 TL 92.000 9100 115 -

• 125

4  Stage III

Presentation of Analyst, October 2013

• R&D Center of TÜMOSAN has been carrying on its operations at the work space established in İTÜ

Technoparksince February 2013 in three main fields, namely 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 being maintained.

• R&Dworks of 115 - 125 HP tractors which are not produced in Turkey supported by TUBİTAK are

completed and they will be put up for sale.

• 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
• 12 x 12 gear boxes are being used instead of 12 x 3 gear boxes used in classic model tractors

previously i .

Engine

Projects Supported by TUBİTAK

• European Union Emission Standard Stage III Diesel Engine Project.
• Projects for reducing noise level, developing LPG and CNG fueled engine, producing 6 cylinder

engine, powershift transmission design and production are ongoing.

• Stage IV : Optimization works regarding compliance with European Union Stage IV emission standard

are still on .

Transmission - Gear Box

• 4WD Front axle
• 16x16 Full PowerShift

TÜMOSAN R&D Works

Presentation of Analyst, October 2013

TÜMOSAN R&D Works

Cotton Picking Machine

• Cotton cultivation area are shifted toSoutheastern Anatolia Region with Southeastern Anatolia Project

(GAP).

• More than 30 thousand establishments of 100 ha and below need self-propelled medium-scaled

cotton picking machines.

• Field tests of the first prototype based on concept design are being made.
• The applicationmade at the end of 2012 for TUBİTAK support is approved.
• It isplanned to commence mass production at the end of 2015.
• 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 ground spraying became compulsory .
• Although the number of equipment used for ground spraying rapidly increases, there is no suitable

haulage vehicle .

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

increasingly continues.

• TÜBİTAK support will be followed.
• Concept design is completed.
• It isplanned to commence mass production at the end of 2015.

Telehandler

• Concept design works are in progress.
• Project will be carried out within the scope of TUBİTAK supported R&D works.

Presentation of Analyst, October 2013

Features that⇥provide Competitive Advantage to TÜMOSAN

Presentation of Analyst, October 2013

Owning design and production technologies for engines and transmission elements which are among the most important components of tractors. Having the broadest domestic product range in Turkey.  Supplying high quality products at affordable prices.  Strong position in producing tractors over 115 hp.  Confidence provided to customers through domestic production  High performance tractors. Increased number of TÜMOSAN branded tractors on a yearly basis and strengthening secondary market.  Being the only engine producer in the class of 3 cylinder, 85 hp in Turkey.  Capability of producing engines with low fuel consumption.  Affordable and easily supplied spare parts.  Widespread service network

• From the year of commencing the production to its privatization finalized in 2004, Tümosan produced a total of 10.046 tractors in 18 years and only in 2011 it

produced and sold more than 10 thousand tractors .

• The first product in the segment of tractors above 110 hp which are only imported as they are not produced in Turkey will be launched in November during

Adana Fair . The price advantage against imported products in this segment will provide a competitive advantage.

Distribution of TÜMOSAN⇥Sales on the Basis of Segments

In 90 - 99 HP segment TÜMOSAN is the leader with 33.8 % market share with its 8095 and 819 5

• models. In 100 -

109 HP Segment TÜMOSAN is the leader with 41% market share with model 8105.

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 / 7

• ‐

9.8% 4.7% 23.7% 27.8% 33.8% 41% TÜMOSAN SALES

• ‐

742 243 1110 677 837 400 TOTAL SALES 1298 7560 5080 4679 2435 2479 975

Presentation of Analyst, October 2013

Below table shows Tümosan's Market Shares in terms of Horse Power according to TSI data.

• 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 104 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 planned to apply

«3S (sales, service, spare parts) concept 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 and trainings for new 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.

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

TÜMOSAN Sales:⇥Dealer and⇥Service Network

Presentation of Analyst, October 2013

MarketingEvents of⇥TÜMOSAN

• Tümosan recently has been organizing many events all around the country within the scope of of intensified

works of corporate identity and brand awareness.

• 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.
• The call center established in 2011 provides service for 24 hours a day and plays an important role in

increasing the quality of after sales service and customer satisfaction. Moreover the feedback from customers contributes to the improvement of service quality.

Presentation of Analyst, October 2013

• Agricultural

Sector

• Turkey has the 5th biggest agricultural economy in the wold
• 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

• Annual market size for 50.000 tractors
• More than 700 thousand old tractors above 25 years of age to be renewed
• More than 60 thousand sales per year by virtue of scrappage incentive

Tümosan

• Continuously increasing 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

• TÜMOSAN

Investment⇥Theme 1

Presentation of Analyst, October 2013 ENGINE and TRACTOR

Presentation of Analyst, October 2013

Financial Statements

TÜMOSAN Summarized Financial Indicators

Presentation of Analyst, October 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%

TÜMOSAN Comparative Balance Sheet - Assets

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 Retained Assets 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 Current Assets 0.1 0.1 0.1 0.4

• ‐

Deferred Tax Asset 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

Presentation of Analyst, October 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 Assets in reference 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 Current Assets 0.3 Total Fixed Assets 75.3 78.8 Total Assets ⇥ 328 ⇥ 326,4

Presentation of Analyst, October 2013

TÜMOSAN Comparative Balance Sheet - Assets

TÜMOSAN Comparative Balance Sheet - Assets

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.

• 1. 81111111

Presentation of Analyst, October 2013

Short Term Liabilities , Million 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 in reference 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 in reference 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 Shareholders' 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 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

TÜMOSAN Comparative Balance Sheet - Liabilities and Net Debt

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 Profit Tax Liability for the Period 7.8 7.5 Short Term provisions 4.8 5.4

• ‐Short term provisions in reference 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 in reference 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 Premiums in reference to Shares 26.2 13.1 Tangible Asset Valuation Fund 39.4 39.4 Actuarial Loss/Profit Fund from Pension 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 Presentation of Analyst, October 2013

Real Operating Income, 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 Expense

• -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 Revenues 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
• -14. 1

Profit Before Tax 0.3 20.6 66.4 37.6 12.6 20.1 17.8 37.2 Current Tax Expense

• ‐
• ‐ --13.2
• -7.8
• -2.6
• -3.8
• -4.9
• -8

Deferred Tax Revenue / 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 Tangible 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

Presentation of Analyst, October 2013

TÜMOSAN Comparative Income Table

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

TÜMOSAN Financial ⇥ Tables

Sales of Tümosan Engine and Tractor Industry Inc.

showed 39.71% increase as compared to first halfof previous year and increased from TL148.273.106to TL 207.156.933. 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% .

Presentation of Analyst, October 2013 ENGINE and TRACTOR

Presentation of Analyst, October 2013

Public

Offering and

Latest Status

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 accordancewith 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 accounts of

investors who invested in TMSN shares at Public Offering and kept them in their accounts for 90 days. A total of 266.641,738 TMSN shares were transferred to investors on 06.03.2013.

Bonus Share Distribution

• 5.000.000 shares out of 15.359.006,26 recovered shares within the scope of Public

Offering were sold to Non Resident Investors at TL 5.60 per share on 26.09. 2013. It is planned to sell the remaining shares to Non Resident Investors at a price not less than TL 6.00 per share.

TÜMOSAN Investment⇥Theme 2

Presentation of Analyst, October 2013 ENGINE and TRACTOR

TÜMOSAN Incentives

Incentive Who Will Benefit From Application Details

*Bonus (Additional) Shares Investors Who Acquired Shares Through Public Offering In case the investors keep all or some of the shares they have acquired through public offering in their accounts for 90 days as of the date when their shares are traded at İstanbul Stock Exchange they will gain the right to acquire 4% bonus (additional) group B bearer Tümosan shares to be calculated over the lowest Company share in their accounts at the end of any day within this period of 90 days.

*Bonus (additional) group B Tümosan bearer shares at the rate of 4% were transferred to the accounts of

investors who acquired TMSN shares through Public Offering and keep them in their accounts for 90 days. 266.641,738 TMSN shares in total were transferred to investors. * Daily Stock Subscription All Investors Daily stock subscription for 2 million shares will be entered into the system at the opening session in the morning every day for the first 10 business days including the day when the shares begin to be traded at the public offering price. At the end of 10th business day, stock subscription for 20 million shares in totalwill be entered into the system at the public offering price.

*Within the first 10 days a total of 15.625.648 TMSN shares were recovered by our controlling shareholder

Ereğli Tekstil within the scope of Daily Stock Subscription. Financial Performance Warranty for 2013 All Investors Controlling shareholder of the company, Ereğli Tekstil will distribute bonus shares to compensate the deviation if the average of Profit Before Interest, Taxes, Depreciation and Amortization and Net Profit will be less than TL 72.5 million. Bonus shares will be distributed among the shares traded at the exchange following the announcement of financial statements for 2013. Rate of additional shares to be distributed will be limited to 50 percent. Condition of participation in public offering will not be sought for distribution. Presentation of Analyst, October 2013

* Realized Practices

TÜMOSAN Partnership Structure

Partner Current Capital⇥Before Capital (TL) Share in Capital (%) Capital (TL) Share in Capital (%) Ereğli Tekstil Turizm San. ve Tic. A.Ş. 82.090.905 78.18% 71.000.000,00 (Non- Public) 61.74% 10.359.006,26 (Public) 9.01% 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 19.640.993,74 17.07% TOTAL 105.000.000 100,00% 115.000.000 100,00%

Presentation of Analyst, October 2013

TÜMOSAN İstanbul Stock Exchange - TMSN

TMSN

6.00 5.50 5.00 4.50 4.00 3.50 April 22 2013 May 20 2013⇥June 17 2013 July 15 2013 August 12 2013⇥September 9 2013 June '13 August '13 Octob er '13

Presentation of Analyst, October 2013