Tofas Turk Otomobil Fabrikasi A.s. · BIST:TOASO

Tofas Turk Otomobil Fabrikasi A.s — Tofaş Türk Otomobil Fabrikası A.Ş. — Investor Presentation (August 2017)

58 slides from Tofas Turk Otomobil Fabrikasi A.s's investor presentation, August 2017

  1. Slide 1: Tofaş Investor Presentation

    TOFAŞ INVESTOR PRESENTATION 2017/08 1

  2. Slide 2: Company Overview

    COMPANY OVERVIEW Shareholder Structure Fiat Auto S.p.A. Koç Holding A.Ş. Free Float 24% • Founded in 1968 as a JV by Koç Holding 38% A.Ş & FCA (Fiat Chrysler Automobiles) • Listed in Istanbul & Luxembourg stock exchanges; 24.3% of outstanding shares in free float with 87% foreign ownership. 38% 2

  3. Slide 3: Strengths

    STRENGTHS STRENGTHS Presence in Various 2nd Largest R&D Markets inc. Only manufacturer Take-or-Pay Golden Plant Level in capability of FCA in that produces both Guarantees in WCM (EMEA, North & Europe LCV and PC Exports South America) MANUFACTURING FOR 7 DIFFERENT BRANDS 3

  4. Slide 4: Location

    LOCATION HEADQUARTERS ISTANBUL PRODUCTION AND R&D - BURSA - 1,5 hrs driving distance to Istanbul 4

  5. Slide 5: Plant Overview

    PLANT OVERVIEW IN PRODUCTION SINCE 1970 PROTOTYPES SUSPENSIONS R&D SUPPLY CHAIN ASSEMBLY DIES PRODUCTION PRESS SHOP SHOP SPARE BODY PARTS PAINT SHOP SHOP GOLDEN PLANT LEVEL AREA CAPACITY PRODUCTION WORKFORCE Total : 933.832 m² 450.000* vehicles/year 2015 FY: 278.252 units (2 Blue Collar :7.937 Cover

  6. Slide 6: R&D at Tofaş

    R&D AT TOFAŞ Tofaş R&D Center •Established : 1994 •Office Area : 6.140 m2 •Lab. Area : 10.420 m2 •WC/BC : 458/115* *2016 FY average Scope of Activities • Vehicle Engineering • Product Engineering • Vehicle Integration • Cost Engineering • Homologation • IPR Management 6

  7. Slide 7: R&D at Tofaş

    R&D AT TOFAŞ Body Design Interior Design E&E Design Engine Systems Chassis and Vehicle Integration Vehicle Dynamics & Testing 7

  8. Slide 8: R&D at Tofaş

    R&D AT TOFAŞ Republic of Turkey Science, Industry & Technology Ministry R&D Centers Rewarding Ceremony, October 2015 3rd Place in “Most Successful R&D Center» all Industries 1st Place in «Most Successful R&D Center in Automotive Industry» 1st Place in “Project Spending Intensity” Criteria 1st Place

  9. Slide 9: World Class Manufacturing

    WORLD CLASS MANUFACTURING WCM (World Class Manufacturing) is a methodology to improve the competitiveness in the production area in a systematic way. It focuses on Occupational Safety, Quality, Cost, Delivery and Environment and aims to reach “Zero” in each: Zero occupational and environmental accid

  10. Slide 10: Manufactured Models

    MANUFACTURED MODELS CURRENT CURRENT MODELS MODELS DOBLO 1-Panorama 2-Cargo 3-Combi ONGOING PROJECTS NEW PROJECTS 572 Different Body Types FIORINO 1-Panorama SOP: 03/2016 2-Cargo ONGOING PROJECTS 3-Combi 338 Different Body Types LINEA Best Selling PC of 2015 2 Body Types 2016 SOP: 28.09.2015 SOP: 28.

  11. Slide 11: Minicargo

    MINICARGO New FIAT Fiorino is launched in 2016 to be produced until 2021 with a total project capacity of 260.000. In addition to this capacity, PSA will also continue with the original version of MCV model with 16.000 units/year in 2016 and 2017. 11

  12. Slide 12: Doblo

    DOBLO Produced for 4 different brands as Fiat Doblo, RAM ProMaster City, Opel & Vauxhall Combo Most selling vehicle of its segment in domestic market Doblo is the first vehicle produced by Tofas that is exported to North America market under RAM RAM PROMASTER CITY brand, with the model name RAM PROM

  13. Slide 13: Doblo USA (RAM ProMaster City)

    DOBLO USA (RAM ProMaster City) Vehicle is sold under the name «RAM Promaster City», completing the LCV product line up of FCA US together with «Ram Promaster» (Ducato) Currently best performing vehicle in terms of warranty claims in the US market among FCA US vehicles. Green Car Journal has named th

  14. Slide 14: Fiat Linea

    FIAT LINEA Positioned at the B Sedan segment of local passenger car market The most selling passenger car in local market in 2015 FY.. 14

  15. Slide 15: Fiat Egea / Tipo / Dodge Neon

    FIAT EGEA / TIPO / DODGE NEON SEDAN World Premiere of Fiat Egea was made at Istanbul Autoshow, in May ‘15. SOP: September ‘15, retail sales started in November ’15. Best selling vehicle in Turkish Maket in 2016 with 35k units Marketed as Fiat Tipo in European markets, and Dodge Neon in Mexico. A min

  16. Slide 16: Fiat Egea / Tipo

    FIAT EGEA / TIPO SEDAN The new Fiat Egea (Tipo) model manufactured by Tofaş received Autobest's “The Best Buy Car of Europe in 2016”. Main criteria was value for Money. The model was voted by an international jury panel of 26 motoring journalists from 26 different European countries 16

  17. Slide 17: Fiat Egea/Tipo Hatchback & Station Wagon

    FIAT EGEA/TIPO HATCHBACK & STATION WAGON Two new models to be developed on the same platform of the Egea project. Both vehicles’ world premiers took place at Geneva Autoshow on March 1st, 2016. Total of 700.000 units planned to be manufactured between Q2 2016 to 2023. SOP: HB production started in A

  18. Slide 18: Domestic Market

    OO Que sk TOFAS TURK OTOMOBILFABRIKASIA.S.

  19. Slide 19: 2016 Brands & Products

    2016 BRANDS & PRODUCTS Wide product range with 6 brands Doblo Fiorino Linea Egea SD Egea HB Egea SW PRODUCED VEHICLES 500 500X 500L Punto Panda 124 Spider IMPORTED VEHICLES Ducato Fullback Scudo Giulietta 4C 4C Spider Giulia Stelvio Soon Soon Renegade Cherokee G. Cherokee Wrangler New Compass Soon G

  20. Slide 20: Dealer Network

    DEALER NETWORK The majority of Tofaş' dealership network are integrated 3S service points, which means that customers can find sales, services and spare parts at a single location. Tofaş dealerships also offer insurance and financing services. Tofaş has 74 FIAT dealerships in Turkey, in addition to

  21. Slide 21: Highlights

    HIGHLIGHTS  In H1 2017, Tofaş achieved the largest production volume in the history of Turkish Automotive Industry with 199k units.  YTD June Exports reached historical record level of 154k units.  Tofaş reached highest H1 Net Revenue with 8,6 B TL and Net Profit with 574M TL.  Fiat Egea is the

  22. Slide 22: Turkish Automotive Industry

    TURKISH AUTOMOTIVE INDUSTRY Turkish Auto Production - Cumulative Turkish Auto Exports - Cumulative 25,1% 25,6% 25,8% 24,3% 24,5% 24,5% 1.800.000 1600000 units 25,0% 22,9% 25,0% 22,1% 22,1% 21,5% 1.600.000 1.485.927 1400000 1.400.000 20,0% 20,0% 1200000 1.141.382 1.200.000 1.033.225 1000000 15,0% 1.0

  23. Slide 23: Tofaş Production

    TOFAŞ PRODUCTION Tofaş Production Volume - Quarterly Tofaş Production Volume - Cumulative units units 125.000 118.651 400.000 383.491 102.859 104.920 350.000 100.000 93.763 82.878 300.000 264.840 75.000 250.000 198.683 200.000 181.962 50.000 150.000 93.763 100.000 25.000 50.000 0 0 2016 Q2 2016 Q3 2

  24. Slide 24: Annual Production

    ANNUAL PRODUCTION PRODUCTION – ANNUAL 2015 2016 2017 MCV (Fiat, PSA) 90 82 LINEA 35 8 DOBLO 8 5 400-430k NEW DOBLO (Fiat, GM, Ram) 133 138 EGEA/TIPO FAMILY 12 150 TOTAL (k units) 278 383 400-430 24

  25. Slide 25: Special Consumption Tax Change

    SPECIAL CONSUMPTION TAX CHANGE PASSENGER CARS Previous Regulation New Price Regulation Change Engine displacement Total Tax Total Tax SCT Pre-tax Price Range SCT D MSRP (cm3) (SCT+VAT 18%) (SCT+VAT 18%) < 40.000TL 45% 71% 0,0% <1600 45% 71% 40.000 - 70.000TL 50% 77% 3,4% > 70.000TL 60% 89% 10,3% < 1

  26. Slide 26: Domestic Market: Segment Evolution

    DOMESTIC MARKET SEGMENT EVOLUTION -8,6% +1,4% units 438.817 -9,6% +3,2 % 401.158 338.482 305.924 -5,1% 100.335 95.234 Passenger Cars Light Commercial Vehicles Total 2016 June YTD 2017 June YTD 26

  27. Slide 27: Total Domestic Market

    TOTAL DOMESTIC MARKET PC & LCV MONTHLY RETAIL SALES 000 units 156 142 122 92 94 92 8383 85 82 85 86 84 84 83 83 85 74 76 72 59 64 68 64 55 5347 35 3335 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 2017  Total domestic market retail sales showed a decline of -8,6% y-o-y and resulted as

  28. Slide 28: Tofaş Domestic Market

    TOFAŞ DOMESTIC MARKET PC & LCV MONTHLY RETAIL SALES 000 units 22 17 14 11 10,5 10,9 11 10 9 9,6 10 9,5 9 10 9 10 9 9 8 8 7 7 7 6 5,4 6 7 4 4 4,0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 2017  Tofaş local market retail sales totalized 48,9 k units in the first half of 2017.  Despit

  29. Slide 29: Fiat Domestic Market Share

    FIAT DOMESTIC MARKET SHARE CUMULATIVE PC MARKET SHARES  Tofaş market share including Premium brands in 2017 June YTD is 9,1% 2017 June YTD 15,9%  Fiat has the highest local sales from 12,0% production ratio with 92,3% 8,7% 7,4% 6,1% 6,1%  Egea is the best seller among passenger cars of H1’17 with

  30. Slide 30: Fiat Domestic Market Share: Monthly PC

    FIAT DOMESTIC MARKET SHARE MONTHLY PC MARKET SHARES 18,0 17,0 15,7 15,9 16,8 16,0 15,7 14,0 14,9 14,1 12,1 12,4 12,0 11,9 11,5 10,9 9,9 10,0 8,7 9,9 8,2 8,3 8,4 8,0 7,7 6,3 7,4 7,1 6,8 6,6 6,0 7,2 6,6 6,1 6,1 5,6 4,0 4,8 2,0 0,0 January February March April May June Fiat Renault VW Hyundai Opel 30

  31. Slide 31: Fiat Domestic Market Share: Cumulative LCV

    FIAT DOMESTIC MARKET SHARE CUMULATIVE LCV MARKET SHARES  Fiat confirms its leadership in CDV segment 29,9% 2017 June YTD 23,2% 12,7% 6,5% 4,9% 4,0% FORD FIAT VW RENAULT CITROEN MERCEDES 29,7% 2016 June YTD 23,3% 15,5% 6,3% 4,6% 3,5% FORD FIAT VW RENAULT PEUGEOT CITROEN 31

  32. Slide 32: Fiat Domestic Market Share: Monthly LCV

    FIAT DOMESTIC MARKET SHARE MONTHLY LCV MARKET SHARE 35,0 30,9 32,1 29,0 28,4 28,9 30,0 30,0 26,2 25,0 23,3 24,2 23,7 22,5 19,3 20,0 15,0 13,1 12,9 11,7 12,7 13,0 13,0 10,0 5,4 5,8 7,3 6,9 6,5 6,7 5,0 5,6 2,3 5,8 6,3 4,5 4,6 0,0 January February March April May June Fiat Ford VW Renault Citroen 32

  33. Slide 33: Fiat Domestic Market Share: PC + LCV Combined

    FIAT DOMESTIC MARKET SHARE CUMULATIVE MARKET SHARES PC + LCV COMBINED  June YTD, Tofaş market share including 2017 June YTD 13,7% Premium brands is 12,4%. 12,2% 12,1% 11,7% 6,0% 5,0% RENAULT VW FIAT FORD HYUNDAI DACIA 2016 June YTD 13,5% 13,4% 11,6% 10,6% 5,5% 5,4% VW RENAULT FORD FIAT OPEL HYUNDAI

  34. Slide 34: Fiat Domestic Market Share: Monthly PC + LCV

    FIAT DOMESTIC MARKET SHARE MONTHLY PC + LCV COMBINED 15,0 14,6 13,8 13,8 13,6 14,0 13,8 13,0 12,7 13,0 12,8 12,7 12,8 13,1 12,2 12,5 12,0 12,0 12,2 11,1 12,1 11,3 11,0 12,1 11,1 11,0 11,9 10,9 10,9 10,0 9,0 8,0 7,0 6,2 6,0 6,7 6,4 6,1 5,5 5,7 5,0 January February March April May June Fiat Ford VW Re

  35. Slide 35: Tofaş Exports

    TOFAS TURK OTOMOBILFABRIKASIA.S. TOFAS EXPORTS @@ OFF

  36. Slide 36: Tofaş Exports

    TOFAŞ EXPORTS Tofaş Monthly Export Volumes 000 units 29,8 29,0 28,8 28,4 27,1 27,2 25,8 26,7 25,1 23,8 23,8 24,1 22,7 21,0 21,3 19,8 18,3 17,2 14,7 16,4 16,8 15,2 13,8 14,7 14,8 14,9 14,3 14,9 11,2 5,5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 2017  Tofaş exports grew by 14,3% Y-o-Y

  37. Slide 37: European Markets

    EUROPEAN MARKETS Total European PC Market Total European LCV Market units units 300.000 2.500.000 7,6% 5,8 % 250.000 3,1% 2.000.000 7,6% -5,0% -1,3% 200.000 1.500.000 3,0% 8,9% 150.000 5,2% 1.000.000 5,1% 7,1% 100.000 18,2% 500.000 50.000 0 0 Rest of Europe GERMANY UK FRANCE ITALY SPAIN Rest of Euro

  38. Slide 38: Export Markets

    EXPORT MARKETS 2016 FY 2017 June YTD (Total Units:280k) (Total Units:154k) Mexico; 1,8% MENA; 2,7% Mexico; 1,4% Other; 1,9% USA & Canada; Other; 2,2% USA & Canada; 6,5% MENA; 5,4% 3,3% Rest of Europe; Rest of Europe; 12,0% Italy; 37,8% 10,9% Italy; 39,8% Poland; 5,5% Belgium; 3,7% Belgium; 4,5% Fran

  39. Slide 39: Tofaş Shipments

    TOFAŞ SHIPMENTS PC&LCV QUARTERLY BREAKDOWN 000 units 204 185 123,5 106,5 106,2 97,0 78,6 83,7 83,9 76,0 75,0 78,6 58,3 61,3 39,6 31,5 30,2 22,4 20,3 18,5 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 Export Domestic  Tofaş H1’17 shipments increased by +10,1% Y-o-Y, reaching 203,5 k units.  Q2’17

  40. Slide 40: Shipments by Business

    SHIPMENTS BY BUSINESS H1 2017 Domestic Exports LCV; 59,4k; LCV; 22,3k; 39% PC; 94,1k; 45% PC; 27,7k; 61% 55% Total PC LCV PC LCV LCV; 81,7k; 40% PC; 121,8k; 60% 40 PC LCV

  41. Slide 41: Shipments by Model

    SHIPMENTS BY MODEL H1 2017 units 2017 H1 2016 H1 Δ 2017 H1 2016 H1 Δ Exports Domestic Market Linea 0 355 -355 Linea 4.219 3.612 607 Egea 16.223 25.264 -9.041 Egea 17.744 16.043 1.701 Egea Hatchback 37.098 12902 24.196 Egea Hatchback 1.914 1199 715 Egea Station Wagon (F. Tipo) 25.569 25.569 Egea Stat

  42. Slide 42: Financial Performance

    FINANCIAL PERFORMANCE OS Qos z TOFAS TURK OTOMOBILFABRIKASIA.S.

  43. Slide 43: 2017 H1 Financial Highlights

    2017 H1 FINANCIAL HIGHLIGHTS SHIPMENTS (k units) REVENUES (MTL) 2017 H1 154 50 Total: 204k %10 2017 H1 6.356 2.241 Total: 8.597 %26 2016 H1 134 51 Total: 185k 2016 H1 4.424 1.943 Total: 6.368 0 50 100 150 200 250 0 2.000 4.000 6.000 8.000 10.000 Export Domestic Export Domestic EBITDA (MTL) PBT (MTL)

  44. Slide 44: Tofaş Revenues

    TOFAŞ REVENUES M TL 8.597 6.368 5.000 4.756 4.499 4.500 4.098 4.000 3.652 3.500 3.112 3.000 2.716 3.205 3.128 2.500 2.519 3.228 2.000 2.218 1.905 1.500 1.000 1.551 1.371 500 810 1.133 894 870 0 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 Local Export 2017 H1 total revenues grew by a soaring +35,

  45. Slide 45: Gross Profit

    GROSS PROFIT M TL 888 659 500 10,2% 20,0% 10,3% 10,4% 450 11,1% 15,0% 400 9,8% 9,8% 10,0% 350 300 486 467 5,0% 250 420 0,0% 200 -5,0% 357 150 302 304 -10,0% 100 50 -15,0% 0 -20,0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 Gross Profit Gross Profit % 2017 first half Gross Profit grew by +34,8%

  46. Slide 46: Operating Profit

    OPERATING PROFIT 567 M TL 387 300 6,1% 6,1% 5,9% 6,7% 6,5% 10,0% 5,7% 250 5,0% 200 0,0% 292 150 -5,0% 280 276 100 221 -10,0% 166 176 50 -15,0% 0 -20,0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 Operating Profit Operating Margin 2017 H1 Operating Profit climbed to 567 MTL showing a growth of 46

  47. Slide 47: Profit Before Tax

    PROFIT BEFORE TAX M TL 519 371 300 5,5% 14,0% 250 5,6% 10,0% 6,4% 5,4% 5,3% 6,4% 200 6,0% 150 289 2,0% 260 231 -2,0% 100 173 198 166 -6,0% 50 -10,0% 0 -14,0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 PBT PBT Margin Profit Before Tax surged by +39,7% Y-o-Y in the first half of the year, amounti

  48. Slide 48: Net Profit

    NET PROFIT M TL 575 480 300 5,9% 16,0% 6,4% 8,9% 12,0% 250 6,6% 6,7% 6,9% 8,0% 200 4,0% 0,0% 150 281 312 262 -4,0% 240 239 210 100 -8,0% -12,0% 50 -16,0% 0 -20,0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 Net Profit Net Profit margin 2017 H1 Net Profit grew by +19,8% Y-o-Y, reaching 575 MTL. N

  49. Slide 49: EBITDA

    EBITDA 895 M TL 627 10,6% 10,2% 400 16,0% 10,2% 9,6% 9,9% 9,1% 12,0% 350 300 8,0% 250 460 4,0% 433 435 0,0% 200 351 -4,0% 150 276 307 -8,0% 100 -12,0% 50 -16,0% 0 -20,0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 EBITDA EBITDA % 2017 H1 EBITDA climbed to 895 MTL with an increase of +42,8% Y-o-Y

  50. Slide 50: 2017 H1 Income Statement

    2017 H1 INCOME STATEMENT TL Million 30.06.2017 30.06.2016 Δ% Net Sales 8.596,8 6.367,8 35,0% Gross Profit 887,6 658,5 34,8% Operating Profit 567,1 387,4 46,4% Profit Before Tax 519,1 371,5 39,7% Net Profit 574,9 479,9 19,8% EBITDA 894,9 626,7 42,8% Gross Margin % 10,3% 10,3% 0,0% Operating Margin %

  51. Slide 51: Balance Sheet – Assets

    BALANCE SHEET – ASSETS (million TL) Current Assets 30.6.2017 31.12.2016 Δ Cash And Cash Equivalents 2.159,0 2.383,2 -224,2 Inventory 1.093,3 920,1 173,1 Trade Receivables 1.918,8 1.361,2 557,6 S.T. Consumer Financing Loans 1.256,9 1.381,9 -125,0 Other Current Assets 175,6 187,8 -12,2 Non-current Ass

  52. Slide 52: Balance Sheet – Liabilities

    BALANCE SHEET – LIABILITIES (million TL) Current Liabilities 30.6.2017 31.12.2016 Δ Short-term Financial Liabilities 108,8 407,7 -298,9 S.T. Portion Of L.T. Financial Liabilities 1.796,1 1.629,2 166,8 Trade Payables 3.743,9 3.355,2 388,7 Other Current Liabilities 532,7 300,0 232,7 Non-current Liabil

  53. Slide 53: Financial Position

    FINANCIAL POSITION EUR million Jun-17 Mar-17 Dec-16 Sep-16 Jun-16 Mar-16 Financial Assets 539 714 642 506 517 739 KFK - Consumer Loans Granted 541 553 601 634 672 637 KFK – Financial Liabilities 496 522 597 607 640 620 Tofaş Financial Liabilities 710 747 755 853 877 898 Net Financial Position -126 -

  54. Slide 54: Working Capital

    WORKING CAPITAL EUR million Jun-17 Mar-17 Dec-16 Sep-16 Jun-16 Mar-16 Trade Receivables 479 334 367 390 509 259 Inventory 273 249 248 324 250 223 Other Receivables 44 58 51 43 43 38 Trade Payables 935 913 904 731 757 599 Other Liabilities 109 177 56 92 99 183 Net Working Capital -248 -449 -295 -66 -

  55. Slide 55: Investments

    INVESTMENTS EUR million 2017 Q2 2017 Q1 2016 2015 2014 2013 Structural 13 17 55 32 19 27 Linea - - - - 2 2 Minicargo 6 2 15 15 24 5 Doblo & RAM ProMaster City 12 5 30 56 169 51 Egea/Tipo Sedan, HB & SW 49 23 252 275 116 10 Total 80 47 352 377 330 95 55

  56. Slide 56: Expectations

    EXPECTATIONS Our 2017 FY expectations are as follows,  Domestic light vehicle market (PC+LCV) is expected to be 920k ÷ 940k units.  Tofaş domestic sales forecasted to be 115k ÷ 125k units.  Export shipments planned to be 300k ÷ 330k units.  Expected production volume is in the range of 400k ÷ 44

  57. Slide 57: Contacts

    CONTACTS INSTITUTIONAL INVESTOR RELATIONS M. Emre Ertürk Investor Relations, Budget, Commercial Control & Risk Manager T: +90 212 275 3390 / 2751 F: +90 212 216 4028 : emre.erturk@tofas.com.tr : Büyükdere Caddesi, No:145 , Tofaş Han, 34394, Zincirlikuyu / ISTANBUL TURKEY

  58. Slide 58: Disclaimer

    DISCLAIMER  This presentation contains forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and

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