Ford Otomotiv Sanayi A.s. · BIST:FROTO

Ford Otomotiv Sanayi A.s — Investor Presentation (October 2010)

45 slides from Ford Otomotiv Sanayi A.s's investor presentation, October 2010

  1. Slide 1: Investor Presentation October 2010

    INVESTOR PRESENTATION October 2010

  2. Slide 2: Agenda

    Agenda • Ford Otosan Overview • Turkish Automotive Industry Overview • Competitive Advantages • Key Operating Data • ISE Performance 2

  3. Slide 3: Ford Otosan Overview

    Investor Presentation October 2010 FORD OTOSAN OVERVIEW

  4. Slide 4: Company Overview

    Company Overview Mfg. & Assy. Facilities Kocaeli Assembly Inonu Powertrain and Cargo Assembly Parts Distribution Kartal Engineering Facility Gebze Blue Collar Employees 6,480+ White Collar Employees 1,710+ Ownership 41% Ford Motor Company 41% Koc Holding 18% Publicly-owned 2009 Net Sales $ 3.7 Billi

  5. Slide 5: A Brief History

    A Brief History • 1928 – Vehbi Koc assigned as Ankara Ford dealer • 1959 – Otosan founded as Ford assembler in Turkey • 1966 – First passenger car (Anadol) production in Turkey • 1967 – Production of Transit minibus launched • 1975 – Transit van and pick-up added to range • 1977 – License agreement

  6. Slide 6: Achievements

    Achievements 2nd biggest Turkish exporter company in 2009 Domestic Market Leader for the 8th consecutive year As of year-end, market share improvement in all segments “Truck of the Year ” Award in North America One of the most profitable and highest dividend paying companies in Đstanbul Stock Exchan

  7. Slide 7: Plant Locations

    Plant Locations İnönü Plant - 1981 Parts Distribution Center 1998 Kocaeli Plant - 2001 7

  8. Slide 8: Plants

    • Plants Kocaeli Plant Best Ford Brand Assembly Plant in Europe (*) since 2002 • Transit & Transit Connect production • Sea front location, integrated pier/terminal covering ISO ISO exports & BU imports 9001 14001 • 320,000 units annual production capacity İnönü Plant Best Ford Powerplant Plant Worl

  9. Slide 9: Facilities

    • Facilities Kartal Parts Distribution Centre • Parts Operations, Warranty, Field Operations, Dealer Training and Customer Relations Center are located at this site Gebze Engineering Facility • Engineering services for Ford Otosan and Ford of Europe’s Product Development Centres • 430+ Engineers Cap

  10. Slide 10: Transit

    Transit Domestic Market Leader in 2009: 36.3% market share 72K units exported in 2009 International Van of the Year 2007 Award 10

  11. Slide 11: Transit Connect

    Transit Connect Domestic Market Share in 2009: 22.8% 57K units exported in 2009 Exports to North America 11

  12. Slide 12: 12

    12

  13. Slide 13: Cargo

    Cargo Domestic Market Share in 2009: 17.3% Exported to various markets 13

  14. Slide 14: A Full Line of Cars

    A Full Line of Cars 3rd in the Domestic Market in 2009: 9.0% market share 14

  15. Slide 15: Turkish Automotive Industry Overview

    Investor Presentation October 2010 TURKISH AUTOMOTIVE INDUSTRY OVERVIEW

  16. Slide 16: Domestic Automotive Industry

    Domestic Automotive Industry 9M 2009 / 9M 2010 Automotive Industry Automotive Industry 500 483 800 450 432 741 766 %12 400 668 633 574 350 600 (000) Units 524 (000) Units 300 393 250 400 Ford Otosan 200 Domestic Sales 203 177 150 200 100 64 %17 75 50 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

  17. Slide 17: 2010 Outlook

    2010 Outlook 2010 Market Outlook 800 749 Market Share Forecast for 2010 FY 600 574 30% 16.0 % (000) Units Ford Otosan 400 Domestic Sales 200 37% 119 87 0 2009 2010F 2009 2010F Ford Otosan Others Car Light Commercial Vehicle Medium Commercial Vehicle Heavy Commercial Vehicle 17

  18. Slide 18: Ford Otosan Market Share

    Ford Otosan Market Share 20% 18% 17.0% 17.1% 16.8% 16.0% Transit 15.3% 15.5% 16% Connect 14% 14.7% 15.1% 11.9% 13.7% Jumbo 12% 11.3% New 9.4% 9.6% 10% Escort 11.2% Cargo 9.6% Transit 8% 7.2% Focus 6% 4.0% 4% 5.0% 2% VE 83 0% 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0F '9 '9 '9 '9 '9 '9 '9 '0 '0 '0 '0 '0 '0

  19. Slide 19: Market Shares

    Market Shares September YTD 2010 2009 FY Market Rank Market Rank Share Share Total Automotive Industry 15.5% 1 15.1% 1 Passenger Car 10.7% 2 9.0% 3 LCV 19.9% 2 22.8% 2 MCV 36.4% 1 36.3% 1 Heavy Truck 16.2% 2 17.3% 2 19

  20. Slide 20: Market Share in Total Automotive Industry

    Market Share in Total Automotive Industry September YTD 2010 15.5% FORD 13.5% OTOSAN Market Share 50.3% 12.0% 0.7 Pts. YoY 8.7% Ford Fiat Renault VW Others 20

  21. Slide 21: Market Shares September YTD 2010

    Market Shares September YTD 2010 Passenger Car Light Commercial Vehicle 14.9% 10.6% 10.7% 19.9% 36.2% 8.7% 9.3% 14.1% 20.5% 55.1% Fiat Ford Citroen Hyundai Renault Ford VW Others Peugeot Others 1.5 Pts. YoY 2.9 Pts. YoY 21

  22. Slide 22: Market Shares September YTD 2010

    Market Shares September YTD 2010 Medium Commercial Vehicle Heavy Truck 36.4% 43.3% 5.5% 10.0% 13.6% 16.2% 6.1% 30.5% 38.4% Ford Mitsubishi VW Mercedes Others Mercedes BMC Ford Others 2.3 Pts. YoY 0.6 Pts. YoY 22

  23. Slide 23: Taxes on Vehicles

    Taxes on Vehicles Passenger Cars Commercial Vehicles Engine Size Model VAT* SCT** TOTAL Engine Size Model VAT* SCT** TOTAL Fiesta <3000 cm3 Transit <1600 cm3 Fusion Van Connect 18% 4% 23% Focus 18% 37% 62% C-Max Van Mondeo(1.6) Ranger Minibus 18% 9% 29% 1601- 2000 Mondeo(2.0) 18% 60% 89% Transit >20

  24. Slide 24: Competitive Advantages

    Investor Presentation October 2010 COMPETITIVE ADVANTAGES

  25. Slide 25: Competitive Advantages

    Competitive Advantages Large - Scale Export Program Strong & Committed JV Partner Support Strong Distribution Network Low Cost, Flexible Manufacturing Commercial Vehicle Product Development and Engineering Capabilities Experienced and Skilled Workforce Strong Corporate Governance Activities 25

  26. Slide 26: Large-Scale Export Program

    Large-Scale Export Program 250 4.0 222 219 Export Revenue (US$ Billion) 3.5 Export Volume (000 Units) 3.7 200 185 3.4 164 3.0 141 129 2.5 150 2.4 2.1 2.1 2.0 100 75 1.8 1.5 1.0 1.0 50 0.5 0 0.0 2003 2004 2005 2006 2007 2008 2009 Transit Connect Transit Cargo & Other Export Revenue (US$ Billion) Less

  27. Slide 27: Strong & Committed JV Partner Support

    Strong & Committed JV Partner Support Technological capability Strong and widespread position in the local market Know-How Turkey’s largest and most reputable group 27

  28. Slide 28: Strong Distribution Network

    Strong Distribution Network Sales: 116 After-Sales: 193 Total Dealer: 211 28

  29. Slide 29: Capacity Utilisation Rate

    Kocaeli Plant Capacity Utilisation Rate 350 117% 320 320 320 120% 112% 300 106% Year-end Capacity (000 Units) 300 Capacity Utilisation Rate 104% 250 100% 250 80% 200 200 82% 200 80% 74% 150 140 60% 54% 100 40% 50 0 20% 2003 2004 2005 2006 2007 2008 2009 2010F Year-end Capacity Capacity Utilisation R

  30. Slide 30: Commercial Vehicle Product Development and Engineering Capabilities

    Commercial Vehicle Product Development and Engineering Capabilities Gebze Engineering Facility in Turkey • Ford Otosan is integrated into Ford’s global PD organisation • This facility underlines Ford’s commitment to Turkey as an excellent environment for business and a rich source of well-educated e

  31. Slide 31: Experienced and Skilled Workforce

    Experienced and Skilled Workforce BLUE COLLAR WHITE COLLAR Primary & Secondary Ph.D. Vocational University Others 1% School 9% College 1% High M.Sc. 8% 16 % school 28 % 15 % Technical High B.Sc. - B.A. school 62 % 60 % 31

  32. Slide 32: Strong Corporate Governance

    Strong Corporate Governance Transparent Investor Relations Sarbanes-Oxley Compliant Meets Capital Market Board Governance Rules Corporate Disclosure Policy Executive and Audit Committees 32

  33. Slide 33: Key Operating Data

    Investor Presentation October 2010 KEY OPERATING DATA

  34. Slide 34: Production Volume

    Production Volume 400 300 286 258 269 243 242 (000) Units 207 %39 200 173 115 100 0 2003 2004 2005 2006 2007 2008 2009 2010F Light Commercial Vehicle Medium Commercial Vehicle Heavy Truck 34

  35. Slide 35: Wholesales Volume – Domestic / Export

    Wholesales Volume – Domestic / Export 400 350 325 295 298 294 297 300 255 (000) Units 250 %39 214 200 176 150 138 129 100 50 85 121 0 2003 2004 2005 2006 2007 2008 2009 2010F Domestic Export 35

  36. Slide 36: Revenue – Domestic / Export

    Revenue – Domestic / Export 8,000 6,208 6,000 US$ Million 4,640 4,844 4,516 4,142 62% 4,000 3,702 47% 55% 69% 47% 2,109 57% 2,082 2,000 46% 38% 60% 53% 53% 45% 31% 43% 54% 40% 0 2003 2004 2005 2006 2007 2008 2009 2010 H1 Domestic Export 36

  37. Slide 37: EBITDA and EBITDA Margin

    EBITDA and EBITDA Margin 800 15% 13.5% 13.2% 692 700 11.5% 11.1% 12% EBITDA (US$ Million) 559 597 600 10.1% 10.2% 534 11.7% EBITDA Margin 500 535 9% 400 373 300 6% 213 200 3% 100 0 0% 2004 2005 2006 2007 2008 2009 2010 H1 EBITDA EBITDA Margin 37

  38. Slide 38: Operating Profit and Operating Margin

    Operating Profit and Operating Margin 700 9.5% 10% 8.9% 8.7% Operating Profit (US$ Million) 8.8% 600 556 8.7% 8% Operating Margin 500 401 405 424 7.5% 7.0% 6% 400 363 300 258 4% 200 157 2% 100 0 0% 2004 2005 2006 2007 2008 2009 2010 H1 Operating Profit Operating Margin 38

  39. Slide 39: Margin Comparison with Peers at ISE

    Margin Comparison with Peers at ISE 2010 H1 15% 10% 10% 10% 8% 6% 6% 5% 5% 0% Ford Otosan Isuzu Karsan Dogus Tofas -5% -2% -3% -6% -6% -10% -15% -20% Operating Margin EBITDA Margin 39

  40. Slide 40: CAPEX

    CAPEX 200 US$ Million 158 150 136 128 116 110 97 100 55 50 50 0 2003 2004 2005 2006 2007 2008 2009 2010F Capacity Increase New Products Maintenance & Others 40

  41. Slide 41: Istanbul Stock Exchange Performance

    Investor Presentation October 2010 ISTANBUL STOCK EXCHANGE PERFORMANCE

  42. Slide 42: ISE & FROTO Index

    ISE & FROTO Index Ford Otosan ISE-100 900 700 Index 500 300 600% 875% 100 Dec-00 Dec-02 Dec-04 Dec-06 Jan-08 Jul-08 Sep-08 Nov-08 Jan-09 Jul-09 Sep-09 Nov-09 Jan-10 Jul-10 Sep-10 Mar-08 May-08 Mar-09 May-09 Mar-10 May-10 2002 2003 2004 2005 2006 2007 2008 2009 30 Sep. 2010 FROTO Cumulative Change(%)

  43. Slide 43: High Dividend in the Last Years

    High Dividend in the Last Years 2009 Dividend Yield: 12.3% 2008 Dividend Yield: 32.6% 280 $329 Million $320 Million $316 Million $330 Million $260 Million 240 $215 US$ Million $191 $205 200 $176 $168 160 $128 $141 $140 $139 120 $105 80 $60 $55 40 0 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3

  44. Slide 44: 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

  45. Slide 45: Thank you

    Investor Presentation October 2010 Thank you... you... Please visit our website: www.fordotosan.com.tr

Ford Otomotiv Sanayi A.S. (Ford Otosan) — Investor Presentation (October 2010) on 6ix