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

Tofas Turk Otomobil Fabrikasi A.s — Tofaş Türk Otomobil Fabrikası A.Ş. — 9M 2024 Earnings Presentation

37 slides from Tofas Turk Otomobil Fabrikasi A.s's earnings presentation, November 2024

  1. Slide 1: Webcast Presentation: 30.09.2024 Financial Results

    WEBCAST PRESENTATION 30.09.2024 Financial Results 1

  2. Slide 2: Agenda

    AGENDA • Key Highlights • Signing of New Manufacturing Contract • Production & Shipments • Domestic Market • Export • Financial Performance & Investments • Outlook 2

  3. Slide 3: Key Highlights

    KEY HIGHLIGHTS • Weak set of results in 9M24 stemmed from; i. poor local market performance due to high competition, ii. lower capacity utilization and, iii. negative impact of IAS29 from high net monetary position. • Industrial net cash position of c.TRY17bn well-positions the company for ongoing o

  4. Slide 4: Agenda

    AGENDA • Key Highlights • Signing of New Manufacturing Contract • Production & Shipments • Domestic Market • Export • Financial Performance & Investments • Outlook 4

  5. Slide 5: Signing of New Manufacturing Contract

    SIGNING OF NEW MANUFACTURING CONTRACT ▪ Within the scope of Heads of Agreement on March 1st, 2023; Tofaş has signed a manufacturing agreement with Stellantis Europe granting us the right to produce in Turkey the new vehicle model “K0”’s light commercial vehicle and “combi” versions in multi-energy p

  6. Slide 6: Agenda

    AGENDA • Key Highlights • Signing of New Manufacturing Contract • Production & Shipments • Domestic Market • Export • Financial Performance & Investments • Outlook 6

  7. Slide 7: Turkish Automotive Industry & Tofaş Production

    PRODUCTION Turkish Automotive Industry & Tofaş Turkish Automotive Production Tofaş Production 19.4%19.5% 18.1%17.9% 18.2% -34% 16.1% 16.8% 16.6% 16.2%16.3% y/y 14.8% 13.4% -60% 1,468K 174K 1,276K 1,353K 11.5% y/y 1,074K 1,001K 922K 962K 115K 649K 735K 707K 65K 56K 367K 377K 51K 39K 303K 20K 3Q23 4Q2

  8. Slide 8: Shipments

    SHIPMENTS Tofaş Total Shipment Units -30% y/y Dom.: -29% -45% y/y Exp.: -33% 190K Dom.: -31% Exp.: -84% 42K 133K 28K 72K 58K 59K 147K 18K 42K 15K 17K 32K 105K 9K 2K 43K 54K 42K 33K 30K 3Q23 4Q23 1Q24 2Q24 3Q24 9M23 9M24 Domestic Export • Total unit shipments of Tofaş declined by c.30%, reaching to 1

  9. Slide 9: Shipment Volumes by Business

    SHIPMENTS Tofaş Shipment Volumes by Business 48.8K 9.6K 36.6% 39.2K 33.8% 37.4% DOMESTIC + EXPORT = TOTAL 65.7K 18.8K 62.6% 84.5K 66.2% 63.4% PC LCV PC LCV PC LCV • The most notable change was observed in the share of LCV in domestic business, which inched up by c.7pp y/y to 37.4% in 9M24. 9

  10. Slide 10: Agenda

    AGENDA • Key Highlights • Signing of New Manufacturing Contract • Production & Shipments • Domestic Market • Export • Financial Performance & Investments • Outlook 10

  11. Slide 11: Domestic LV Market

    DOMESTIC LV MARKET Segment Evolution 3Q24 Domestic LV Market TOTAL: 271.911 (-10% y/y) PC: 212.318 (-10% y/y) 857.6K 849.9K LCV: 59.593 (-8% y/y) 666.9K 675.3K 2Q24 Domestic LV Market TOTAL: 282.5K (-12% y/y) PC: 229.6K (-10% y/y) 520.5K LCV: 52.9K (-19% y/y) 399.2K -8% -1% +1% y/y y/y y/y 190.7K 17

  12. Slide 12: Domestic LV Market: PC & LCV Retail Sales Monthly

    DOMESTIC LV MARKET PC & LCV Retail Sales - Monthly 158.7K 112.5K 115.2K 115.0K 111.4K 111.4K 109.8K 106.2K 106.0K 103.9K 101.4K 100.3K 97.7K 96.8K 94.0K 92.0K 90.1K 87.7K 82.3K 81.1K 80.7K 79.7K 75.9K 65.2K 65.2K 64.3K 62.1K 60.0K 52.2K 50.9K 49.7K 48.3K 38.1K 0.0K Jan Feb Mar Apr May Jun Jul Aug Se

  13. Slide 13: Tofaş Domestic LV Market Performance

    TOFAŞ DOMESTIC LV MARKET PERFORMANCE Segment Evolution (Retail) -29% y/y 146.8K -36% y/y 101.6K 104.4K 99.0K -13% 66.6K 65.1K y/y 45.1K 39.3K 32.4K Passenger Cars Light Commercial Vehicles Total Source: Tofaş 9M22 9M23 9M24 13

  14. Slide 14: Fiat Brand Domestic LV Market Performance

    FIAT BRAND DOMESTIC LV MARKET PERFORMANCE PC & LCV Combined Market Share 9M24 9M23 16.6% 11.9%10.8% 10.4% 9.1% 8.1% 7.4% 7.5% 6.9% 6.4% 5.6% 5.6% 5.1% 5.0% 4.9% 4.8% 5.2% 4.9% 4.1% 3.8% Source: ODD • Fiat brand maintained its domestic LV market leadership, with a market share of 11.9% in 9M24 (down

  15. Slide 15: Fiat Brand: Light Commercial Vehicle Market Share

    FIAT BRAND DOMESTIC LV MARKET PERFORMANCE Light Commercial Vehicle Market Share 9M24 9M23 29.8% 27.2% 23.7% 22.4% 9.0% 7.6% 7.2% 6.9% 7.0% 6.6% 6.3% 5.7% 6.4% 5.0% 3.9% 4.6% 3.2% 3.1% FORD FIAT VW PEUGEOT RENAULT CITROEN OPEL MERCEDES TOYOTA FORD FIAT PEUGEOT CITROEN RENAULT VW OPEL TOYOTA MERCEDES

  16. Slide 16: Fiat Brand: Passenger Car Market Share

    FIAT BRAND DOMESTIC LV MARKET PERFORMANCE Passenger Car Market Share 9M24 9M23 14.6% 11.9% 11.3% 9.2% 7.8% 7.1% 7.0% 6.8% 6.7% 5.8% 5.3% 5.2% 5.6% 4.8% 4.7% 4.7% 4.6% 4.5% 3.9% 4.0% 3.7% Source: ODD • Fiat brand moved down to second position in local PC market with a market share of 9.2% in 9M24 (do

  17. Slide 17: Agenda

    AGENDA • Key Highlights • Signing of New Manufacturing Contract • Production & Shipments • Domestic Market • Export • Financial Performance & Investments • Outlook 17

  18. Slide 18: European Market: PC & LCV Registrations

    EUROPEAN MARKET PC & LCV Registrations PC Market (EU + UK) – 9M24 LCV Market (EU + UK) – 9M24 Total European Total European +0.6% y/y +8.6% +7.5% y/y +0.6% PC Market LCV Market 3,000,000 +5.8% -1.0% 400,000 446K 2,936K 2,919K +3.4% 411K +4.3% +8.2% 2,000,000 -1.8% +2.9% 2,138K 2,116K +16.7% +7.3% 28

  19. Slide 19: Tofaş Exports

    TOFAŞ EXPORTS Segment Evolution (9M24) -33% -34% 42.4K 28.5K 28.5K -31% 18.8K 13.9K 9.6K Passenger Cars Light Commercial Vehicles Total 9M23 9M24 • In 9M24, Tofaş export volumes slided by c.33% y/y, reaching to c.29K units. • Phase-out of MCV production and import vehicle ban at an export market (i.

  20. Slide 20: Tofaş Exports: Monthly Volumes

    10.1K 3.1K Jan 4.0K 9.1K 4.4K Feb 6.4K 8.5K 5.9K Mar 6.4K 8.7K 4.2K Apr 4.3K 11.5K TOFAŞ EXPORTS 5.7K May Export Volumes - Monthly 3.5K 2022 10.3K 4.0K Jun 1.4K 2023 9.2K 5.7K Jul 1.0K 5.7K 2024 3.4K Aug 0.2K 14.1K 6.0K Sep 1.3K 13.6K 7.4K Oct 15.5K 6.1K Nov 5.1K 4.6K Dec 20

  21. Slide 21: Tofaş Exports: Regional Breakdown

    TOFAŞ EXPORTS Regional Breakdown 9M24 9M23 Italy Italy France 5.7% Germany 4.5% Germany Spain 35.6% Spain 36.2% Total units: Total units: Portugal 38.6% 39.1% 28.5K Rest of 42.4K Rest of Europe Europe N. America MENA 1.6% 4.2% 2.1% 3.3% 4.7% 3.6% 7.3%2.8% MENA 10.7% Other Other 21

  22. Slide 22: Shipment Volumes by Model

    SHIPMENTS Tofaş Shipment Volumes by Model Exports 9M24 9M23 Δ Domestic 9M24 9M23 Δ Tipo 18.831 28.501 -9.670 Egea 61.551 96.600 -35.049 Sedan 11.773 13.457 -1.684 Sedan 42.782 63.976 -21.194 H/B and S/W 145 13.915 -13.770 H/B and S/W 970 400 570 Cross 6.913 1.129 5.784 Cross 17.799 32.224 -14.445 Do

  23. Slide 23: Agenda

    AGENDA • Key Highlights • Signing of New Manufacturing Contract • Production & Shipments • Domestic Market • Export • Financial Performance & Investments • Outlook 23

  24. Slide 24: Financial Performance: Financial Highlights

    FINANCIAL PERFORMANCE Financial Highlights Shipments - Units Revenue - mnTL 9M24 28K 105K 133K 9M24 15,838 71,239 87,077 -30% -31% 9M23 25,203 100,302 125,505 9M23 42K 147K 190K Export Domestic Export Domestic EBITDA - mnTL Profit Before Tax - mnTL 9M24 8,530 9M24 4,874 -57% -72% 9M23 19,963 9M23 17

  25. Slide 25: Financial Performance: Income Statement (9M24)

    FINANCIAL PERFORMANCE Income Statement (9M24) TLmn 9M24 9M23 Δ Net Sales 87.077 125.505 -30,6% Gross Profit 11.033 23.231 -52,5% Operating Profit 3.891 16.028 -75,7% EBITDA 8.530 19,978 -57,3% Profit Before Tax 4.874 17.479 -72,1% Net Profit 5.027 13.494 -62,7% Gross Margin % 12,7 18,5 -5,8pp Operat

  26. Slide 26: Financial Performance: Balance Sheet

    FINANCIAL PERFORMANCE Balance Sheet - Assets & Liabilities (TLmn) Current Assets 30.09.24 31.12.23 Δ Current Liabilities 30.09.24 31.12.23 Δ Cash and Cash Equivalents 20.696 33.770 -13.074 Short-term Fin. Liabilities 150 951 -801 Inventory 12.013 13.195 -1.182 S.T. Portion of L.T. Financial 11.680 8

  27. Slide 27: Investments

    INVESTMENTS (EURmn) 9M24 2023 2022 Structural 8 18 12 Minicargo 0.4 2 2 K0 45 8 n/a Egea/Tipo Sedan, HB & SW 12 20 29 TOTAL 65 49 46 27

  28. Slide 28: Agenda

    AGENDA • Key Highlights • Signing of New Manufacturing Contract • Production & Shipments • Domestic Market • Export • Financial Performance & Investments • Outlook 28

  29. Slide 29: Outlook

    OUTLOOK 2024E PREVIOUS NEW Domestic Light Vehicle Market (PC+LCV) 900K–1.1mn units 1mn–1.15mn units Tofaş Domestic Retail Sales 120K - 140K units 130K - 140K units Export Shipments 40K - 50K units 35K - 45K units Production Volume 140K – 160K units 135K – 145K units Investments €150M €150M PBT Margi

  30. Slide 30: Thank You

    TURK OTOMOBIL FABRIKASIA.S. THANK YOU

  31. Slide 31: Appendices

    APPENDICES g3) Jeep @ © De © Opar

  32. Slide 32: Sustainability

    SUSTAINABILITY • In October 2024, we published our 2023 Sustainability report, which provides insights about performance, strategy and progress in environmental, social and governance areas of Tofas. https://www.tofas.com.tr/Surdurulebilirlik/SurdurulebilirlikRaporlari/PublishingImages/entegre/2023-

  33. Slide 33: Financial Performance: Income Statement (3Q24)

    FINANCIAL PERFORMANCE Income Statement (3Q24) TLmn 3Q24 3Q23 Δ Net Sales 21.448 42.520 -49,6% Gross Profit 1.339 7.921 -83,1% Operating Profit -1.061 5.140 n.m EBITDA 266 6.474 -95,9% Profit Before Tax 518 4.940 -89,5% Net Profit 312 3.198 -90,2% Gross Margin % 6,2 18,6 -12,4pp Operating Margin % n.

  34. Slide 34: Heads of Agreement with Stellantis

    HEADS of AGREEMENT with STELLANTIS • According to Heads of Agreement, • Stellantis will allocate a Tofas will purchase 100% of production of the “K0” Stellantis Turkiye Otomotiv model to Tofaş. shares from Stellantis for EUR400mn in cash; subject to • The model is a mid-sized cash/working capital cl

  35. Slide 35: EV Strategy of Stellantis

    STELLANTIS EV Strategy of Stellantis 4 full BEV Platforms STELLANTIS L E V MIX* Up to 2 million Vehicles / Platform / Year EXPECTED T O G R O W FAST STLA SMALL STLA MEDIUM STLA LARGE STLA F R A ME 14% 4% 2021 100% 2030 50% EFFICIENT CITY PREMIUM AWD PERFORMANCE CAPABILITY & NAMEPLATES with LEV MOBIL

  36. Slide 36: Contact

    CONTACT INSTITUTIONAL INVESTOR RELATIONS Mehmet A. Ağyüz, CFA Investor Relations and Risk Manager +90 212 275 3390 / 2751 +90 212 216 4028 mehmet.agyuz@tofas.com.tr Büyükdere Caddesi No:145 Tofaş Han 34394 Zincirlikuyu / ISTANBUL - TURKEY 36

  37. Slide 37: 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 c

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