2012 - Tümosan

 2
COMPANY PROFILE
• 
TUMOSAN manufactures diesel engine and tractors in a closed area
of 93.000
m2
on its own property of 1.6 million
m2.
•  It has the biggest manufacturing capacity in Turkey.
•  Engine manufacturing capacity: 75.000 items/year-three shifts.
•  Conform with the European Union emission standard Stage III-A.
•  3 Cylinder engines are; 50 – 85 HP.
2012
Net Sales
TL 291.6 Mn
EBITDA
TL 39,2 Mn
Net Income
TL 29.5 Mn
EBITDA margin
13,4%
•  4 Cylinder engines are; 75 – 115 HP.
•  Tractor manufacturing capacity: 45.000/year-three shifts.
•  Tractors between 50 – 115 HP with 3 and 4 cylinders.
2013
Net Sales
TL 445.1 Mn
EBITDA
TL 79,5 Mn
Net Income
TL 62.1 Mn
EBITDA margin
18%
3
OWNERSHIP STRUCTURE
Before IPO
3% 3% 3% 3% 3% 7% 78% Ereğli Teks1l Turizm San. Ve Tiç. A.Ş. Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Free Float Other Partner
Capital (TL)
Share in
Capital (%)
Ereğli Tekstil Turizm San. ve Tic. A.Ş.
82.090.905
78.18 %
Muzaffer ALBAYRAK
6.586.381
6.27 %
Bayram ALBAYRAK
3.264.543
3.11 %
Nuri ALBAYRAK
3.264.543
3.11 %
Kazım ALBAYRAK
3.264.543
3.11 %
Mustafa ALBAYRAK
3.264.543
3.11 %
Ahmet ALBAYRAK
3.264.543
3.11 %
Hedef Girişim Sermayesi Yatırım Ortaklığı A.Ş.
-
-
Free Float
-
-
105.000.000
100 %
TOTAL
TL 105mn
Capital Before IPO
4
OWNERSHIP STRUCTURE
Post IPO
Capital (TL)
Share in
Capital (%)
78.321.127,654
68,10 %
Muzaffer ALBAYRAK
2.000.000,00
1,74 %
Bayram ALBAYRAK
2.000.000,00
1,74 %
Nuri ALBAYRAK
2.000.000,00
1,74 %
Kazım ALBAYRAK
2.000.000,00
1,74 %
Mustafa ALBAYRAK
2.000.000,00
1,74 %
Ahmet ALBAYRAK
2.000.000,00
1,74 %
Hedef Girişim Sermayesi Yatırım Ortaklığı A.Ş.
2.000.000,00
1,74 %
Free Float
22.678.872,35
19,72 %
TOTAL
115.000.000,00
100,00 %
Partner
19% Ereğli Tekstil Turizm San. ve Tic. A.Ş.
2% 2% 2% 2% 2% 2% 1% 68% Ereğli Teks1l Turizm San. Ve Tiç. A.Ş. Muzaffer ALBAYRAK Bayram ALBAYRAK Nuri ALBAYRAK Kazım ALBAYRAK Mustafa ALBAYRAK Ahmet ALBAYRAK Hedef Girişim Sermayesi YaUrım Ortaklığı A.Ş. Free Float Other TL 115mn
Capital Post IPO
5
MILESTONES – BEFORE PRIVATISATION
6
MILESTONES – AFTER PRIVATISATION
7
MILESTONES – WAY AHEAD
8
DEALER AND SERVICE NETWORK
104 DEALERS AND 367 AUTHORIZIED SERVICES LOCATED IN 65 CITIES.
9
DEALER AND SERVICE NETWORK
13 DEALERS ABROAD.
10
RESEARCH AND DEVELOPMENT
TÜMOSAN Research and
Development Center has
been active in ITU
Teknopark / ISTANBUL.
Test Laboratories are
Test facilities are located
located in KONYA.
in KONYA.
11
RESEARCH AND DEVELOPMENT
Completed Projects
Ongoing Projects
•  4 Valve 4 cylinder 125 HP
and 4 valve 6 cylinder
135 – 175 HP engine.
•  32x32 Gear Box.
•  LPG – CNG Engine.
•  16x16 Full Powershift
•  115 HP Tractor.
•  4WD Front Axle.
•  16x16 Gear Box.
•  Stage III-A and
Stage III-B Diesel Engine.
Transmission.
•  Stage IV 6 cylinder new
generation engine.
•  Cotton Picker.
•  ECU - TCU
•  Sprayer.
12
R&D EXPENDITURE BREAKDOWN
2014
2015
2016
4 Valve Engine
2,6
2,0
2,8
32x32 Gear Box
0,3
16x16 F.P. Transmission
0,4
Lpg / Cng
0,3
0,7
Stage IV Engine %50 of Total Cost
2,6
1,2
0,7
Cotton Pick %50 of Total Cost
0,8
0,9
0,4
Sprayer %50 of Total Cost
0,6
0,6
1,5
ECU – TCU Design
0,8
1,3
1,8
Total
7,6
7,7
7,2
Projects, Million TL
13
AGRICULTURAL SECTOR
14
AGRICULTURAL SECTOR
• 
• 
• 
• 
24.5 million hectares of the existing 38 million agricultural land is being cultivated.
Turkey is amongst the first 15 countries in the world with the size of cultivated agricultural land.
The number of holdings decreased 4 to 2.3 million.
Avarege land size of holdings increased from 4.7 to 7 hectares.
Agricultural Holdings
Land Distribution
31%
18%
18%
11%
10%
6%
5%
15
AGRICULTURAL SECTOR
•  As of the year 2012, the Agricultural Gross Domestic Product (AGDP) is 8.2 % of the total GDP with
62.5 billion $.
• 
In terms of agricultural economy, Turkey ranks first of Europe and seventh of the world as of 2012.
Agricultural Produc.on ($ Bl) 70
60
50
40
30
20
10
0
45
24
30
37
43
49
56
62
62
63
51
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
16
ASSESMENT OF AGRICULTURAL SECTOR
PROS
CONS
Favorable ecological conditions.
High cost of mechanisation due to imports.
Strong direct and indirect subsidies.
Weather sensitive.
Land consolidation.
Credit heavy finance of investment.
Decline of agri employment and number
of holding vs growth of farm size.
Competitive labor cost.
Able Engineering.
R&D subsidies of % 60.
Competitive supplier base.
Anticipated scrap incentive plan.
17
COMPARISON OF TR & EU AGRICULTURAL SECTOR
Chosen Indicators
Turkey
EU
6.8 Ha
17.5 Ha
Agricultural Employment
26 %
6%
Average Tractor Power
70 HP
> 100 HP
4WD Tractor Rates
65 %
95%
23
10
Size of Holdings
Average Tractor Age
18
2014 OUTLOOK
•  Stable interest rate of agricultural credits.
•  Imports decline due to exchange rate.
•  Agricultural output may fall due to adverse weather conditions.
•  Sales numbers are relatively higher then January – February 2013.
•  Political environment may hinder sales and marketing activities.
19
TRACTOR MARKET
20
TRACTOR MARKET OF TURKEY
53,922 60,304 53,803 54,731 49,297 43,706 34,589 24,951 51,033 42,033 34,525 33,989 36,576 34,541 24,241 22,954 16,639 10,587 9,571 14,000 8,127 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 AVERAGE 35.706 TRACTORS
21
DEVELOPMENTS IN TRACTOR SECTOR 1993 - 2013
Vineyard & Orchard
Tractors
10% 5% 75% 65% 3.5 fold increased in
vineyard orchard segment. 0% 70% 70% 65% 40% 20% 2%
Average HP
80% 60% 7%
0% 4WD Tractors
60% 9% 7 fold increase in 4WD,
reached 65%.
59% 55% 50% Tractor power has
increased by 20 % close to
70 HP.
22
TRACTOR PARK
704,506
302,647
48%
21%
•  The size of tractor park is1.500.000.
•  Average age is 23 years.
•  The average age of 704.000 tractor is 34 years old.
459,055
31%
25 Years ≥ 10 -­‐ 25 Years •  Government has a plan to modernize the park with
a scrap incentive program.
10 Years ≤ 23
SALES VOLUME (TURKISH STATICAL INSTITUTE FIGURES)
SALES VOLUME (TSI)
2012
2013
TUMOSAN Sales Volume
6.953
8.626
Total Sales
51.033
53.803
13,62 %
16,03 %
Market Share
2012
2013
Market Share
13.62%
Total Sales
Tümosan Sales Volume
6953
Total Sales
Market Share
53.803
16.03%
51.033
Tümosan Sales Volume
8.626
24
HP ASSESSMENT
16,000 45.00% 2013 HP VOLUME 14,000 40.00% 2013 HP Market Share 35.00% 12,000 30.00% 10,000 25.00% 8,000 20.00% 6,000 15.00% 4,000 10.00% 2,000 5.00% 0 0.00% < 50 HP 50-­‐59 HP 60-­‐69 HP 70-­‐79 HP 80-­‐89 HP 90-­‐99 HP 100-­‐109 110-­‐149 HP HP 2013 TUMOSAN < 50 HP 50-­‐59 HP 60-­‐69 HP 70-­‐79 HP 80-­‐89 HP 90-­‐99 HP 100-­‐109 110-­‐149 HP HP 2013 Total 2013 Market Share 2013 TUMOSAN Market Share 2013 Total
2013 TUMOSAN
2013 Market Share
2013 TUMOSAN Market
Share
< 50 HP
4.287
-
7,97%
-
50-59 HP
13.972
1.415
25,97%
10,13%
60-69 HP
10.274
782
19,10%
7,61%
70-79 HP
9.642
2.404
17,92%
24,93%
80-89 HP
5.122
1.415
9,52%
27,63%
90-99 HP
5.035
1.790
9,36%
35,55%
100-109 HP
1.960
820
3,64%
41,84%
110-149 HP
3.131
-
5,82%
-
HP
25
TUMOSAN SALES VOLUME (SALES TO DEALERS)
9,325 6,735 %38,46 2012 2013 Sales and Production
2012
2013
%
Sales (Sales to Dealers)
6.735
9.325
38,46%
Production
6.611
9.166
38,64%
26
PUBLIC OFFERING AND FINAL SITUATION
27
FINANCIAL HIGHLIGHTS
Million TL
2010
2011
2012
2013
Revenues
181.1
411.4
292
445.1
Gross Profit
34.7
90.6
54
97.1
19%
22%
18%
22%
22.5
69.1
36
75.2
12%
17%
12%
17%
24.8
72.7
39.2
79.5
14%
18%
13,4%
18%
16.3
54.0
29.5
62.1
9%
13%
10%
14%
Margin
Operating Profit
Margin
EBITDA
Margin
Net Income
Margin
28
COMPARATIVE BALANCE SHEET
Liquid Assets Mn TL
2012
2013
22
5.3
-
0.2
52.4
53.8
Commercial Receivables from Non-Affiliates
52
53.4
Commercial Receivables from Affiliates
0.4
0.3
Other Receivables
78.7
0.13
Other Receivables from Affiliates
78.7
0.13
Stocks
67.3
96.4
Prepaid Expenses
1.1
2.8
Other Liquid Asset
Total Liquid Assets
31.2
252.7
30.2
188.9
Fixed Assets Mn TL
2012
2013
Other Receivables
-
6
Other Receivables from Affiliates
-
6
Investment Properties
0.3
0.3
Tangible Fixed Asset
72.4
84.2
Intangible Fixed Assets
2.1
7.8
Other Intagible Fixed Assets
0.4
0.4
Other Fixed Assets
0
0.3
Total Fixed Assets
75.3
98.4
Total Assets
328
287.4
Cash and Cash Equivalents
Financial Invest.
Commercial Receivables
29
COMPARATIVE BALANCE SHEET
Short Term Liabilities , Mn TL
2012
2013
Short Term Loans
Current Portion of Amounts Payable after One Year
Other Financial Liabilities
Trade Payables
Current Payables to Affiliates
Current Payables to Non-Affiliates
Due from Employee Benefits
Deferred Income
Period Income Tax Liability
Short Term Provisions
Short Term Provisions for Employee Benefits
Other Short Term Provisions
Other Short Term Liabilities
Total Short Term Liabilities
Long Term Liabilities, Mn TL
Long Term Loans
Long Term Provisions
Long Term Provisions for Employee Benefits
Deferred Tax Liability
Total Long Term Liabilities
Equities, Mn TL
Paid-up Capital
Share Premiums
Fixed Tangible Asset Valuation Fund
Actuarial Gain/Loss Fund from Pension Plan
Reserves on Retained Earnings
Losses from Previous Years
Net Income for the Period
Total Equities
4,8
16,6
25,9
53,9
0,06
53,8
1,8
6
7,8
4,8
0,4
4,4
3,1
124,9
2012
1,8
1,6
1,6
1,3
4,7
2012
115
26,2
39,4
0,3
0,08
(12.1)
29,5
198,5
0,6
2,9
33,3
0,13
33,2
1
1,5
4,3
6,3
0,5
5,8
0,3
50,5
2013
0,4
2
2
1
3,1
2013
115
13
39,4
0,2
3,9
62,063
233,7
328
287,4
Total Liabilities and Equities
30
COMPARATIVE INCOME TABLE
Real Operating Income, Million TL
2012
2013
Sales Income
291,6
445,085
Sales Expense: (-)
-238
-347,9
Gross Profit
53,6
97,1
Research and Development Expenses
-0,9
-1,96
Marketing and Sales Expenses
-12,9
-16,1
Administrative Expenses
-5,3
-4,8
Other Operative Income
2
0,2
Other Operative Expenses
-0,4
36
74,5
Financial Income
Financial Expenses
36,3
34,7
75,2
-6,3
Pretax Profit
37,6
76,8
Period Tax Expenses
-7,8
-14,9
Deferred Tax Income / Expenses
0,1
0,2
Net Period Income
29,6
62,063
Revaluation Fund
*[Actuarial Gain/Loss for Employee Benefits
-
-
Tax Influence
-
-
29,6
61,9
Operating Profit
Total Comprehensive Income
31
DEBT PROFILE
Change in Debt.
•  Bulk of financial debt in
2012 was FX based.
21.4 •  Financial debt is short
611% term
3.5 2012 2013 •  Cash is held mainly in FX
based deposits to meet
import payments.
32
NET DEBT DYNAMICS
THE FINANCIAL DEBT IS TL BASED.
Maturity Split
Loan Type
%100
%18
In the next seven months
period total of 3.5 mn debt
%72
Long Term
Short Term
Debt Payment
will be paid.
Bank Loan
33
FX EXPOSURE
FX Based Trade Payables.
22% 14% 2011 2013 •  22% of the trade
payables is FX based.
•  Need exit strategy.
•  With the exception of
diesel pump and injectors
localisation if cheaper.
•  4WD axle already
localised.
•  Transaxle for compact
tractor will developed.
34
CAPEX DEVELOPMENT (MN TL)
22.7
9.5
11,2
5,2
3.5
3.4
2012
10,0
2013
2014
2015
2016
2017
2018
Construc1on took the largest part in 2013 and CNC investment was the second. Machinery will receive bulk of investment 2014 onward. 35
CAPEX ITEMS
•  Installed tractor production capacity to be increased to 60.000.
•  Modernization of paint shop.
•  Expansion of Automated Guided Vehicle (AGV) application at assembly and
material handling.
•  Shift from manual to compressed air tools for manpower and energy efficiency.
•  Upgrade of existing machining lines etc...
•  Be prepared to produce new generation diesel engines.
•  Workshop for Harvesters / Material Handling / Construction.
•  Constrution & Maintanence.
36
CAPEX BREAKDOWN
Items
2014
2015
2016
2017
2018
Capacity Increase
1.2
1.2
0.5
0.5
0.5
Upgrade
0.8
0.8
1.0
1.2
1.2
-
5
7
9
3
Workshop
0.3
1.3
1.0
-
-
Construction & Maintenance
1.2
1.2
0.5
0.5
0.5
Total Mn TL
3.5
9.5
10.0
11.2
5.2
Engine Production Line
37
SUMMARY OF FINANCE
TUMOSAN:
•  Has a Sales Income increase by 53% YoY.
•  Has a Net Income increase by 110% YoY.
38
IPO CONDITIONS
Dividend Policy
With the decision made during the 2012 Ordinary Meeting of General Assembly held on 13.05.2013,
26.749.000 TL of the 2012 profit has been distributed.
Dividend distribution from the profit of 2013 and following years is planned.
Bonus Share Distribution
4 % of Bonus Tumosan shares has been distributed to the B group IPO owners, holding the stock for 90
days. A total of 266.641.738 Tümosan shares were transferred to the investors on 06.03.2013.
Sales of Shares Repurchased for Incentive
15.359.006 nominal shares were repurchased by parent company for the first 10 trading days to support
stock price. 7.500.000 shares already to were sold foreign investor.
Financial Performance Guarantee of 2013
Tumosan guaranteed 72.5 mn TL average of EBITDA and Net Income. If not,investors planned to receive
bonus shares at the rate of deviation.Avarege is 70.792 and the deviation is 2.4 %. 537.878 shares
transfert to share holders as of March 13 2014.
39
Focus on local industry.
Meeting requirements of customers.
Minimized capital expenditures.
Short research and development period.
Efficient team with profound expertise.
MARKET DIVERSIFICATION
PRODUCT DIVERSIFICATION
STRATEGY GUIDANCE
41
THANK YOU
FOR FURTHER INFORMATION PLEASE E-MAIL
[email protected]
OR CALL TUMOSAN INVESTOR RELEATIONS AT
+90 212 468 19 00
42