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

Tofas Turk Otomobil Fabrikasi A.s — Tofaş Türk Otomobil Fabrikası A.Ş. — FY2017 Earnings Presentation

42 slides from Tofas Turk Otomobil Fabrikasi A.s's earnings presentation, Feb 2, 2018

  1. Slide 1: Tofaş 31.12.2017 Results Webcast Presentation

    TOFAŞ 31.12.2017 RESULTS WEBCAST PRESENTATION 02.02.2018

  2. Slide 2: Agenda

    AGENDA  Highlights  Turkish Automotive Industry  Production  Domestic Market Developments  Tofaş Domestic Market Performance  Export Markets & Tofaş Performance  Financial Performance  Investments  Expectations 2

  3. Slide 3: Highlights

    HIGHLIGHTS  Tofaş concluded FY17 on a high note, with all-time-record Net Revenues of TL17.5B, EBITDA of TL 2.0B and Consolidated Net Profit of TL 1.3B.  Tofaş achieved the highest production volume in the history of Turkish Automotive Industry, manufacturing 384k units in FY17.  In 2017 Fiat cli

  4. Slide 4: Turkish Automotive Industry

    TURKISH AUTOMOTIVE INDUSTRY Turkish Auto Production - Cumulative Turkish Auto Exports - Cumulative 25.6% 25.8% 24.5% 24.5% 2,000,000 units 25.0% 22.9% 23.0% 23.0% 25.0% 22.1% 2,000,000 22.1% 1,800,000 21.5% 21.0% 20.3% 1,673,664 1,600,000 20.0% 20.0% 1,485,927 1,332,794 1,500,000 1,400,000 1,223,838

  5. Slide 5: Tofaş Production

    TOFAŞ PRODUCTION Tofaş Production Volume - Quarterly Tofaş Production Volume - Cumulative units units 125,000 118,651 400,000 383,491 384,174 102,859 104,920 103,249 350,000 100,000 93,763 82,878 82,242 300,000 280,925 79,103 264,840 75,000 250,000 198,683 200,000 181,962 50,000 150,000 79,103 93,76

  6. Slide 6: Domestic Market Segment Evolution

    DOMESTIC MARKET SEGMENT EVOLUTION -2.8% +1,4% ‘000 units +3,2% -4.5% 968.0 983.7 956.2 756.9 725.6 722.8 2.9% 242.4 226.8 233.4 Source: ODD Passenger Cars Light Commercial Vehicles Total 2015 December YTD 2016 December YTD 2017 December YTD 6

  7. Slide 7: Total Domestic Market

    TOTAL DOMESTIC MARKET PC & LCV MONTHLY RETAIL SALES ‘000 units 156 142 136 122 92 101 92 94 92 8383 85 82 85 86 84 84 82 83 83 85 74 76 72 73 6468 71 64 55 5347 59 35 3335 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: ODD 2015 2016 2017  Total domestic market retail sales showed a decline

  8. Slide 8: Tofaş Domestic Sales

    TOFAŞ DOMESTIC SALES PC & LCV MONTHLY RETAIL SALES ‘000 units 22 18.6 17 14 10.9 12.4 11 10.5 11.0 11.3 11 10 9 9.6 10 9.5 9 10 9 10 9.8 10.0 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 122.8 k units in FY

  9. Slide 9: Fiat Domestic Market Share

    FIAT DOMESTIC MARKET SHARE PASSENGER CARS MARKET SHARES  Big jump of Tofaş market share. Including Premium brands YTD December 2017 is 15.7% 2017 December YTD 8.9% vs. 7.3% in 2016. 12.4%  92.3% of Tofaş domestic sales come from locally manufactured vehicles and this is 8.5% 6.8% 6.2% the highest

  10. Slide 10: Fiat Domestic Market Share: Light Commercial Vehicles

    FIAT DOMESTIC MARKET SHARE LIGHT COMMERCIAL VEHICLES MARKET SHARES 2017 December YTD  Fiat confirms its leadership in CDV segment 30.5%  Successful launch of Fiorino 1.4 gasoline 25.1% 11.9% 7.2% 4.5% 3.9% FORD FIAT VW RENAULT PEUGEOT MERCEDES Source: ODD 30.1% 2016 December YTD 23.7% 14.5% 6.7% 4

  11. Slide 11: Fiat Domestic Market Share: PC + LCV Combined

    FIAT DOMESTIC MARKET SHARE MARKET SHARES PC + LCV COMBINED  YTD December 2017, Fiat market share is 12.6% up by 1.8pps YoY, climbing from 2nd 2017 December YTD position from 4th in the market. 13.6% 12.6% 12.3% 11.6% 5.5% 5.1% RENAULT FIAT VW FORD HYUNDAI DACIA Source: ODD 2016 December YTD 13.7% 1

  12. Slide 12: Tofaş Exports

    TOFAS TURK OTOMOBILFABRIKASIA.S. TOFAS EXPORTS @@ OFF

  13. Slide 13: Tofaş Exports Segment Evolution

    TOFAŞ EXPORTS SEGMENT EVOLUTION -3.1% +1,4% ‘000 units 279.4 270.7 +3,2% 9.9% -16.2% 173.7 153.5 139.6 141.8 139.9 117.2 31.9 Passenger Cars Light Commercial Vehicles Total 2015 December YTD 2016 December YTD 2017 December YTD 13

  14. Slide 14: Tofaş Monthly Export Volumes

    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 24.4 23.8 23.8 24.1 22.7 22.4 22.3 19.8 21.0 21,3 19.7 19.2 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 9.2 5.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 2017  YTD

  15. Slide 15: European Markets

    EUROPEAN MARKETS Total European PC Market Total European LCV Market units units 5.7% 5.2 % 4,500,000 600,000 4,000,000 2.7% 500,000 7.1% 3,500,000 -5.7% -3.6% 3,000,000 400,000 2,500,000 4.7% 7.9% 4.9% 300,000 2,000,000 -3.4% 15.5% 1,500,000 7.7% 200,000 1,000,000 100,000 500,000 0 0 Rest of Europe

  16. Slide 16: Export Markets Sales Breakdown

    EXPORT MARKETS SALES BREAKDOWN 2016 FY 2017 FY (Total Units:280k) (Total Units:271k) Mexico; 1.8% Other; 2.2% MENA; 4.0% Mexico; 1.7% Other; 3.5% USA & Canada; 6.5% MENA; 5.4% USA & Canada; 4.7% Rest of Europe; Italy; 37.6% 12.0% Italy; 37.8% Rest of Europe; 9.0% Poland; 5.1% Belgium; 3.7% Belgium;

  17. Slide 17: Tofaş Shipments

    TOFAŞ SHIPMENTS PC&LCV QUARTERLY BREAKDOWN 000 units 392 393 123.5 106.2 106.5 105.6 97.0 83.7 84.4 78.6 83.9 64.0 76.0 75.0 78.6 53.3 58.3 61.3 39.6 41.6 30.2 31.5 31.1 20.3 22.4 18.5 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Export Domestic  Tofaş 2017 shipments remained fla

  18. Slide 18: Shipments by Business

    SHIPMENTS BY BUSINESS 2017 YTD December Domestic Exports LCV PC LCV PC 118.7 152.1 59.2 63.6 44% 56% 48% 52% Total PC LCV PC LCV LCV PC 177.9 215.6 45% 55% 18 PC LCV

  19. Slide 19: Shipments by Model

    SHIPMENTS BY MODEL 2017 YTD December units 2017 YTD 2016 YTD Δ 2017 YTD 2016 YTD Δ Exports Domestic Market Linea 0 355 -355 Linea 8,436 7,298 1,138 Tipo Sedan 30,473 45,998 -15,525 Egea Sedan 42,873 34,796 8,077 Tipo HB & SW 98,191 65,108 33,083 Egea HB & SW 4,361 4,153 208 Doblo 0 5,236 -5,236 New

  20. Slide 20: Financial Performance

    FINANCIAL PERFORMANCE OS Qos z TOFAS TURK OTOMOBILFABRIKASIA.S.

  21. Slide 21: 2017 Dec. YTD Financial Highlights

    2017 DEC. YTD FINANCIAL HIGHLIGHTS SHIPMENTS (‘000 units) REVENUES (MTL) 2017 YTD 271 123 Total: 394k 2017 YTD 11,888 5,580 Total: 17,468 %0 %23 2016 YTD 280 112 Total: 392k 2016 YTD 9,839 4,397 Total: 14,236 0 100 200 300 400 500 0 5,000 10,000 15,000 20,000 Export Domestic Export Domestic EBITDA (

  22. Slide 22: Tofaş Revenues

    TOFAŞ REVENUES M TL 17,468 14,236 6,000 5,067 5,000 4,756 4,499 4,098 3,804 4,000 3,652 3.112 3,131 3,000 2,716 3,197 3,128 2,519 3,228 2,401 2,000 2,218 1,905 1,000 1,936 1,559 1,371 1,403 810 1,133 894 870 0 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Local Export • YTD Decembe

  23. Slide 23: Gross Profit

    GROSS PROFIT 2,026 M TL 1,448 13.8% 700 14.0% 600 11.1% 11.6% 10.2% 10.3% 10.4% 12.0% 500 9.8% 9.8% 10.0% 400 8.0% 699 300 6.0% 200 486 467 440 357 420 4.0% 302 304 100 2.0% 0 0.0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Gross Profit Gross Profit % YTD December 2017 Gross Pro

  24. Slide 24: Operating Profit

    OPERATING PROFIT 1,305 M TL 844 8.9% 500 9.0% 450 7.5% 8.0% 400 5.9% 6.7% 6.5% 6.1% 6.1% 5.7% 7.0% 350 6.0% 300 5.0% 250 200 453 4.0% 150 3.0% 280 276 285 100 221 176 292 2.0% 166 1.0% 50 0 0.0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Operating Profit Operating Margin • YTD D

  25. Slide 25: EBITDA

    EBITDA M TL 2,002 1,366 12.8% 700 12.0% 10.6% 10.2% 12.0% 600 10.2% 9.6% 9.9% 9.1% 500 8.0% 400 300 649 200 433 435 458 4.0% 351 307 460 100 276 0 0.0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 EBITDA EBITDA % • YTD December 2017 EBITDA climbed to TL 2.0B with an increase of +4

  26. Slide 26: Profit Before Tax

    PROFIT BEFORE TAX 1,229 M TL 798 8.6% 450 400 7.2% 8.0% 6.4% 6.4% 350 5.6% 300 5.4% 5.3% 5.5% 250 200 438 4.0% 150 260 231 272 100 173 198 166 289 50 0 0.0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 PBT PBT Margin • Profit Before Tax surged by +54.1% Y-o-Y in FY17, amounting to

  27. Slide 27: Net Profit

    NET PROFIT 1,283 M TL 970 8.9% 8.4% 450 7.5% 400 6.6% 6.7% 6.4% 6.9% 8.0% 350 5.9% 300 250 200 424 4.0% 150 281 312 284 240 239 262 100 210 50 0 0.0% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Net Profit Net Profit margin • 2017 YTD Net Profit grew by +32.2% Y-o-Y, reaching 1,28

  28. Slide 28: 2017 YTD Income Statement

    2017 YTD INCOME STATEMENT TL Million 31.12.2017 31.12.2016 Δ% Net Sales 17,468 14,236 22.7% Gross Profit 2,026 1,448 40.0% Operating Profit 1,305 844 54.8% EBITDA 2,002 1,366 46.5% Profit Before Tax 1,229 798 54.1% Net Profit 1,283 970 32.2% Gross Margin % 11.6% 10.2% 1.4pp Operating Margin % 7.5% 5

  29. Slide 29: Return on Equity

    RETURN ON EQUITY 39.2% 34.4% 35.0% 27.7% FY14 FY15 FY16 FY17 RoE improvement continues in FY17, reaching a solid 39.2% * Values are calculated in TL terms. 29

  30. Slide 30: Balance Sheet – Assets (million TL)

    BALANCE SHEET – ASSETS (million TL) Current Assets 31.12.2017 31.12.2016 Δ Cash and Cash Equivalents 3,239 2,383 856 Inventory 1,056 920 135 Trade Receivables 1,765 1,363 402 S.T. Consumer Financing Loans 1,339 1,382 -42 Other Current Assets 327 208 119 Non-current Assets 31.12.2017 31.12.2016 Δ Fix

  31. Slide 31: Balance Sheet – Liabilities (million TL)

    BALANCE SHEET – LIABILITIES (million TL) Current Liabilities 31.12.2017 31.12.2016 Δ Short-term Financial Liabilities 680 408 272 S.T. Portion Of L.T. Financial Liabilities 1,900 1,629 271 Trade Payables 3,866 3,366 499 Other Current Liabilities 399 307 92 Non-current Liabilities And Equity 31.12.20

  32. Slide 32: Financial Position

    FINANCIAL POSITION EUR million 31.12.2017 30.09.2017 30.06.2017 31.03.2017 31.12.2016 30.09.2016 Financial Assets 717 744 539 714 642 506 KFK - Consumer Loans Granted 562 540 541 553 601 634 KFK – Financial Liabilities 557 511 505 530 597 607 Tofaş Financial Liabilities 730 869 701 740 755 853 Net F

  33. Slide 33: Working Capital

    WORKING CAPITAL EUR million 31.12.2017 30.09.2017 30.06.2017 31.03.2017 31.12.2016 30.09.2016 Trade Receivables 391 343 479 334 367 390 Inventory 234 257 273 249 248 324 Other Receivables 72 27 44 58 56 43 Trade Payables 856 721 935 913 907 731 Other Liabilities 58 116 109 177 58 92 Net Working Capi

  34. Slide 34: Investments

    INVESTMENTS EUR million 2017 2016 2015 2014 Structural 31 55 32 19 Linea 0 - - 2 Minicargo 13 15 15 24 Doblo & RAM ProMaster City 24 30 56 169 Egea/Tipo Sedan, HB & SW 89 252 275 116 Total 157 352 377 330 • Over € 1.2B investments in the last four years • Egea/Tipo Project investments were completed

  35. Slide 35: Expectations

    EXPECTATIONS 2018 FY expectations are as follows:  Domestic light vehicle market (PC+LCV): 930k÷950k units  Tofaş domestic retail sales: 110k÷120k units  Export shipments: 270k÷290k units  Expected production volume: 370k÷390k units  Investments: € 150÷170M 35

  36. Slide 36: Appendices

    GAKoc APPENDICES OO Gr sz TOFAS TURK OTOMOBIL FABRIKASIA.S. 33 FCA

  37. Slide 37: Special Consumption Tax Change

    SPECIAL CONSUMPTION TAX CHANGE PASSENGER CARS Engine Pre-tax Price Total Tax SCT displacement (cm3) Range (SCT+VAT 18%) < TL 46,000 45% 71% <1600 TL46,000 – 80,000 50% 77% > TL80,000 60% 89% < TL114,000 100% 136% 1600-1999 > TL114,000 110% 148% >2000 regardless of price 160% 207%  Pre-tax prices we

  38. Slide 38: Monthly PC Market Shares

    FIAT DOMESTIC MARKET SHARE MONTHLY PC MARKET SHARES 18.0 17.0 15.7 15.9 16.8 16.3 16.0 15.7 16.3 15.5 15.8 14.9 14.7 14.0 14.1 14.1 13.5 12.1 12.4 12.7 13.0 12.0 11.2 11.9 11.5 10.9 9.9 11.3 10.0 9.9 9.1 8.7 8.4 9.2 9.0 8.2 8.3 8.0 7.8 8.0 8.4 6.3 7.7 7.4 7.0 6.8 6.8 7.2 7.1 7.1 6.6 6.3 6.2 6.5 6.4

  39. Slide 39: Monthly LCV Market Share

    FIAT DOMESTIC MARKET SHARE MONTHLY LCV MARKET SHARE 40.0 35.0 32.1 33.7 30.9 28.9 30.0 30.9 29.3 33.2 29.0 28.4 30.0 28.9 26.1 26.2 25.6 26.9 25.0 23.3 23.7 27.3 26.9 24.2 25.9 26.0 22.5 19.3 20.0 15.0 13.1 12.7 13.6 12.9 11.9 13.4 11.7 11.9 13.0 13.0 10.0 7.5 7.8 10.9 9.0 5.4 5.8 7.3 6.9 6.5 6.3 8.

  40. Slide 40: Monthly PC + LCV Combined

    FIAT DOMESTIC MARKET SHARE MONTHLY PC + LCV COMBINED 14.6 13.8 13.8 13.6 14.1 14.3 13.9 14.0 14.0 13.8 13.0 13.7 12.7 12.8 13.1 13.6 12.8 13.4 12.8 12.7 12.7 13.1 12.2 12.5 13.3 12.8 12.0 12.9 12.0 12.6 12.4 12.0 11.8 12.2 11.1 11.3 12.0 12.0 12.1 11.4 11.1 12.1 11.4 10.5 11.9 11.0 10.5 10.9 10.9 10

  41. Slide 41: Contacts

    CONTACTS INSTITUTIONAL INVESTOR RELATIONS Erman Tütüncüoğlu Financial Risk & Investor Relations Manager T: +90 212 275 3390 / 2751 F: +90 212 216 4028 : erman.tutuncuoglu@tofas.com.tr : Büyükdere Caddesi, No:145 , Tofaş Han, 34394, Zincirlikuyu / ISTANBUL TURKEY

  42. Slide 42: 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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