Ford Otomotiv Sanayi A.S.

Ford Otomotiv Sanayi A.Ş.

Ford Otomotiv Sanayi A.Ş. (Ford Otosan) is incorporated and domiciled in Turkey and manufactures, assembles and sells motor vehicles, primarily commercial vehicles, imports and sells passenger cars and manufactures and imports and sells spare parts of those vehicles. Ford Otosan was established in 1959 and presently operates as a joint venture between Ford Motor Company and the Koç Group of Companies. The company is listed on the Borsa İstanbul (BIST), where 17.89% of its shares are currently quoted. The capital structure can be seen below (Amounts are expressed in Turkish Lira):

Shareholders Paid-in Capital Percentage

Koç Holding A.Ş. 134,953,357 38.46%

Vehbi Koç Vakfı 3,558,449 1.01%

Koç Holding Emekli Yardım Sandığı Vakfı 3,259,202 0.93%

Temel Ticaret A.S. 2,355,885 0.67%

Total Koç Group 144,126,893 41.07%

Ford Motor Company 143,997,037 41.04%

Other (Publicly Held) 62,786,070 17.89%

Total 350,910,000 100.00%

I. Financial Analysis of the Company

• Horizontal Analysis for the Balance Sheet

The year-end financial statements of 2015 and 2014 are analyzed in order to understand financial situation of the company. Balance sheet of Ford Otosan for the years 2015 and 2014 are as below:

31.12.2015 31.12.2014 Change Change (%)

Current assets 4,030,872,065 2,958,148,243 1,072,723,822 36%

Cash and cash equivalents 980,361,277 577,458,259 402,903,018 70%

Trade receivables 1,783,732,386 1,605,733,707 177,998,679 11%

Trade receivables from related parties 1,003,541,568 929,539,320 74,002,248 8%

Trade receivables from third parties 780,190,818 676,194,387 103,996,431 15%

Other receivables 181,984 230,474 -48,490 -21%

Inventories 1,000,159,224 585,077,396 415,081,828 71%

Prepaid expenses 35,126,704 29,890,515 5,236,189 18%

Assets related to current year tax 231,310,490 159,757,892 71,552,598 45%

Non-current assets 4,397,340,093 4,277,244,552 120,095,541 3%

Trade