TOFAŞ INVESTOR PRESENTATION
March 2021 AGENDA
• Company Overview • 2020 Performance • Key Highlights • Production & Shipments • Domestic Market • Export • Financial Performance • Investments • Outlook
Sınıflandırma: Genel; Classification: Public PAGE 2 COMPANY OVERVIEW Shareholder Structure
1968 - 2020
Founded in 1968 as a JV by Koç Holding & FCA (Fiat Chrysler Automobiles)
2018 marked the 50th anniversary of the collaboration between Koç Holding & FCA Free float 24.3% of outstanding shares in free float 37,85% 37,85% 24,3% with ~62% foreign ownership.
Sınıflandırma: Genel; Classification: Public PAGE 3 COMPANY OVERVIEW Main Strengths
MAIN STRENGTHS
2nd Largest Only Turkish World Class Presence in Take-or-Pay R&D Capability Manufacturer Manufacturing EMEA, NAFTA Guarantee in of FCA in that produces Gold Level & LATAM Exports Europe both PC & LCV
Manufacturing for 4 Different Brands with 5 Different Car Lines
Sınıflandırma: Genel; Classification: Public PAGE 4 COMPANY OVERVIEW Location
Istanbul
Bursa Headquarters in Istanbul Production and R&D in Bursa 1,5 hour driving distance
Sınıflandırma: Genel; Classification: Public PAGE 5 COMPANY OVERVIEW Plant Structure
PROTOTYPES SUSPENSIONS R&D SUPPLY CHAIN ASSEMBLY DIE PRODUCTION SHOP PRESS SHOP SPARE PARTS PAINT SHOP BODY SHOP
Area Capacity Production Workforce Total: 933.832 m² 400.000 vehicles/year 2019 FY: 264,196 units Blue Collar : 5,403 Covered: 352.477 m² with 3 shifts labor 2020 FY: 250,630 units White Collar : 1,540 Total : 6,913 *as of Dec’20
Sınıflandırma: Genel; Classification: Public PAGE 6 COMPANY OVERVIEW R&D
Body Design
Interior Design
E&E Design
Engine Systems
Chassis & Vehicle Dynamics
Vehicle Integration & Testing
Sınıflandırma: Genel; Classification: Public PAGE 7 COMPANY OVERVIEW R&D
TOFAŞ R&D CENTER Established : 1994 Office Area : 6,140 sqm Laboratory Area : 10,420 sqm Office/Field Employees : 457/82* *average
Sınıflandırma: Genel; Classification: Public PAGE 8 COMPANY OVERVIEW R&D
THE MOST RANKED FIRST IN SUCCESSFUL R&D R&D SPENDINGS CENTER IN THE IN TURKEY1 AUTOMOTIVE 2015 / 2016 / SECTOR2 2017 2015 / 2016
THE THIRD MOST RANKED FIRST IN SUCCESSFUL PROJECT CAPACITY R&D CENTER IN CRITERIA2 ALL SECTORS2 2015 2015 / 2016
1 European Commission Joint Research Center 2 Republic of Turkey Science, Industry & Technology Ministry
Sınıflandırma: Genel; Classification: Public PAGE 9 COMPANY OVERVIEW World Class Manufacturing (WCM)
WCM (World Class Manufacturing) is a methodology to improve competitiveness in 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 accident, zero quality defect, zero waste and loss.
WORLD In order to improve the production standards to the world class level, FIAT started the WCM Program in 2006 and by now the program is extended to 213 FIAT - Chrysler CLASS plants and 400 supplier plants. MANUFACTURING
Tofas improved its WCM rating to 81 from 77 during WCM review late 2019. This successful performance means that Tofaş achieved the top score among automotive plants under WCM umbrella.
Sınıflandırma: Genel; Classification: Public PAGE 10 COMPANY OVERVIEW Production Model Portfolio
FIAT EGEA / TIPO / DODGE NEON DOBLO FIORINO
Best Selling PC of 1. Panorama 2016, 2017, 2018 & 2. Cargo 2019 in Turkey 3. Combi 572 Different 338 Different Body Types Body Types
RAM PROMASTER CITY FIAT EGEA / TIPO FIAT EGEA / TIPO USA & CANADA
Hatchback Station Wagon
Sınıflandırma: Genel; Classification: Public PAGE 11 COMPANY OVERVIEW Doblo - RAM Promaster City
Produced for 4 different brands as Fiat Doblo, RAM ProMaster City, Opel & Vauxhall Combo
Best selling vehicle of its segment in domestic market.
1.1mn units of production within 2009-2020. 1.25mn total units are planned to be produced until the end of 2022.
Doblo is the first vehicle produced by Tofas that is exported to North America market under RAM brand, with the model name RAM PROMASTER CITY. Production started at October 2014, shipments will continue until the end of 2022.
Production for Opel Combo phased out at the end of 2018.
Sınıflandırma: Genel; Classification: Public PAGE 12 COMPANY OVERVIEW Mini Cargo - Fiorino
New FIAT Fiorino is launched in 2016 which to be produced until 2021 with a take or pay allocation of 35K units per year. Three year extension of the contract until the end of 2024 with a facelift investment of around EUR20mn
Sınıflandırma: Genel; Classification: Public PAGE 13 COMPANY OVERVIEW Fiat Egea / Tipo / Dodge Neon
World Premiere of Fiat Egea was made at Istanbul Autoshow, in May 2015. SOP was in September 2015, retail sales started in November 2015. Best selling vehicle in the Turkish Market four years in a row in 2016 & 2017 & 2018 & 2019 Marketed as Fiat Tipo in European markets, and Dodge Neon in Mexico. A minimum of 580.000 units planned to be manufactured between 2015 to 2023. Prolongation of the contract until 2024-end with a facelift investment of USD 225mn. Production of facelifted and expanded portfolio with an additional cross- over version has begun in Oct’20. 1/3 of the production is allocated for export markets. Investment Incentive received for the project. Competing in the largest segment of automotive market in Turkey.
Sınıflandırma: Genel; Classification: Public PAGE 14 COMPANY OVERVIEW Fiat Egea / Tipo - Sedan
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. Domestic PC market leader for five years in a row
Sınıflandırma: Genel; Classification: Public PAGE 15 COMPANY OVERVIEW Fiat Egea / Tipo - Hatchback & Station Wagon
Hatchback Two new models are developed on the same platform of the Egea Sedan. 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. Signed the prolongation of contract until 2024-end in 2019. SOP: Hatchback production started in April 2016 - Station Wagon production started in July 2016. Station Wagon The vast majority of the capacity is allocated for export markets. The Project is included in our investment incentive document. Together with sedan investment, 1,45 million new vehicles to be produced in the following years.
Sınıflandırma: Genel; Classification: Public PAGE 16 COMPANY OVERVIEW Fiat Egea / Tipo - R Cross
New cross-over body type a new addition to the facelifted New technology and comfort PC portfolio (sedan, h/b, s/w) packages Height: +56 mm vs. hatchback New engine: 1 lt gasoline, 3 cylinder, 100 HP Commercial launch in Dec’20 in Europe and late Jan’21 in Turkey.
Sınıflandırma: Genel; Classification: Public PAGE 17 COMPANY OVERVIEW Brands & Products - Wide product range with 6 brands
Doblo Fiorino Egea Sedan Egea HB Egea SW LOCAL PRODUCTION
500 500 X 500 L Punto Panda 124 Spider
Scudo Ducato Ducato Ducato Fullback
Giulietta 4C 4C Spider Giulia Stelvio
IMPORTED VEHICLES Renegade Cherokee G. Cherokee Wrangler New Compass
Ghibli Levante Quattroporte
488 California GTC4 Lusso
Sınıflandırma: Genel; Classification: Public PAGE 18 COMPANY OVERVIEW Dealer Network 73 Dealers - 102 Sales Points & 127 Service Points 1 Ferrari, 4 Maserati, 17 Alfa Romeo & Jeep Dealers
Kırklareli Bartın Sinop Kastamonu Tekirdağ İstanbul Zonguldak Artvin Ardahan Samsun Edirne Kocaeli Karabük Rize Düzce Ordu Trabzon Sakarya Amasya Giresun Yalova Bolu Çankırı Çorum Gümüşhane Kars Çanakkale Tokat Bayburt Bursa Bilecik Erzurum Iğdır Ankara Balıkesir Eskişehir Kırıkkale Yozgat Erzincan Ağrı Sivas Kütahya Kırşehir Tunceli Bingöl Muş Manisa Afyon Uşak Nevşehir Kayseri Malatya Elazığ Van İzmir Bitlis Konya Aksaray Diyarbakır Aydın Isparta Maraş Siirt Denizli Niğde Batman Adıyaman Hakkari Burdur Şırnak Muğla Adana Osmaniye Mardin Antalya Karaman Antep Şanlıurfa Kilis Mersin Hatay
Sınıflandırma: Genel; Classification: Public PAGE 19 • Company Overview • 2020 Performance • Key Highlights • Production & Shipments • Domestic Market • Export • Financial Performance • Investments • Outlook
Sınıflandırma: Genel; Classification: Public PAGE 20 KEY HIGHLIGHTS
Robust set of financial results with 26% y/y PBT (profit before tax) growth and 7.8% PBT margin in 2020 thanks to outstanding performance in domestic market supported by our agile organization during challenging operating environment due to Covid-19.
Fiat brand solidified its domestic light vehicle market leadership position with sustained market share gains (up 1.9pp y/y), reaching to 17.8% in 2020, notably ahead of competition.
Successful launch of the facelifted versions of Tipo/Egea family with a new cross-over body-type addition to the product portfolio, which had received strong initial interest.
Existing scrap incentive schemes, which were introduced late 3Q20, at our main export markets provide a notable recovery potential, despite the ongoing challenges stemming from Covid-19 in Europe.
Smooth completion of the merger between FCA-PSA with the formation of Stellantis, effective as of Jan’21, which will have a significant scale with a wider global footprint.
Sınıflandırma: Genel; Classification: Public PAGE 21 • Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 22 PRODUCTION Turkish Automotive Industry & Tofaş
Turkish Automotive Production Tofaş Production
19,5% 18,8% 19,3% 264K 17,9% 18,0% 18,1% 17,2% 251K 15,6% 16,3% 1.550K 1.461K +22% 1.298K (y/y growth) 1.057K 854K 735K 90K 519K 74K 76K 362K 341K 59K 26K
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 4Q19 1Q20 2Q20 3Q20 4Q20 2019 2020
Source: OSD Turkey Tofaş %
In 2020, total Turkish motor vehicle production declined by 11% y/y to 1.3mn units. Tofaş constituted 19.3% of the industry with a production of 250.6K units in 2020 (up 1.2pp y/y). 4Q20 production volume of Tofas expanded by 22% y/y, reaching to 90.1K units. Tofaş 2020 production mix; PC: 61%; LCV: 39% vs. 55% PC; 45% LCV in 2019.
Sınıflandırma: Genel; Classification: Public PAGE 23 SHIPMENTS Tofaş Total Shipment Units
-4% 271K 259K +20% (y/y growth) 118K 194K
92K 77K 80K 56K 30K 40K 142K 44K 31K 39K 77K 8K 50K 52K 33K 17K 23K 4Q19 1Q20 2Q20 3Q20 4Q20 2019 2020 Domestic Export
Total unit shipments of Tofaş ascended by 20% y/y in 4Q20, reaching to 92K units with a full year shipment of 259K units (down -4% y/y). Sustained robust growth in domestic shipments coupled with ongoing sequential recovery in export volumes were the main drivers of this performance.
Sınıflandırma: Genel; Classification: Public PAGE 24 SHIPMENTS Tofaş Shipment Volumes by Business
44,2K 31,2% 100,6K 56,4K 38,8% DOMESTIC + 47,8% EXPORT 61,5K = TOTAL 52,2% 158,9K 97,4K 61,2% 68,8%
PC LCV PC LCV PC LCV
In 2020, the most notable change in shipment mix was in domestic volumes with 6.4pp y/y increase (i.e normalization) in LCV mix recovering back to 31% of domestic shipments.
Sınıflandırma: Genel; Classification: Public PAGE 25 • Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 26 DOMESTIC LV MARKET Segment Evolution
4Q20 Domestic LV Market TOTAL: 279.2K (+41% y/y) PC: 221.4K (+40% y/y) LCV: 57.7K (+48% y/y) 772,8K 3Q20 Domestic LV Market
610,1K TOTAL: 239.6K (+178% y/y) 620,9K PC: 185.1K (+156% y/y) LCV: 54.5K (+291% y/y) 486,3K 479,1K
387,3K +61% +77%
+58% 162,7K 134,6K 91,8K
Passenger Cars Light Commercial Vehicles Total
2018 2019 2020 Source: OSD
Sınıflandırma: Genel; Classification: Public PAGE 27 DOMESTIC LV MARKET PC & LCV Retail Sales - Monthly 104,3K 95,0K 90,5K 90,6K 87,4K 79,9K 77,7K 76,3K 72,8K 71,1K 71,0K 61,5K 58,2K 58,2K 52,7K 51,0K 50,1K 49,2K 49,1K 47,0K 47,1K 42,7K 42,0K 35,1K 34,3K 33,0K 32,2K 31,0K 27,3K 26,2K 26,5K 24,9K 23,0K 21,6K 17,9K 14,4K Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2019 2020 Source: OSD
Total domestic market retail sales surged by 61.3% y/y, reaching to 772.8K units in 2020. Following a temporary hiccup due to Covid-19 domestiv LV demand has begun to recover in June thanks to i. unleash of pent-up on the back of ii. lower loan rates and, iii. growing e-commerce penetration.
Sınıflandırma: Genel; Classification: Public PAGE 28 TOFAS DOMESTIC LV MARKET PERFORMANCE Segment Evolution (Retail)
142,0K
97,0K
78,7K 72,8K +136% 59,6K +80% 44,4K 45,0K
+63% 28,4K 19,1K
Passenger Cars Light Commercial Vehicles Total
2018 2019 2020 Source: OSD
Sınıflandırma: Genel; Classification: Public PAGE 29 TOFAŞ DOMESTIC LV MARKET PERFORMANCE PC & LCV Retail Sales - Monthly 19,7K 19,0K 17,9K 17,7K 14,9K 14,3K 13,8K 12,4K 12,3K 9,7K 8,8K 8,7K 8,4K 8,1K 7,4K 6,8K 6,4K 6,3K 6,2K 6,0K 5,9K 5,7K 5,3K 5,3K 5,3K 5,1K 4,3K 3,9K 2,1K 3,1K 3,4K 2,6K 3,4K 3,6K 2,2K 1,8K Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2019 2020 Source: OSD
Tofaş domestic retail sales had substantially outperformed total domestic LV demand in 2020.
Sınıflandırma: Genel; Classification: Public PAGE 30 FIAT BRAND DOMESTIC LV MARKET PERFORMANCE Passenger Car Market Share
2020 2019
16,2% 15,7% 15,1% 14,8%
10,0% 8,6% 6,4% 6,0% 6,0% 5,9% 6,0% 4,5% 5,1% 4,5% 3,6%
RENAULT FIAT VW TOYOTA PEUGEOT HYUNDAI DACIA RENAULT FIAT VW TOYOTAPEUGEOT OPEL FORD CITROEN Source: ODD Source: ODD
Passenger car market share of Fiat brand further expanded by 0.3pp y/y on top of 6.2pp y/y improvement in 2019, reaching to 15,1% in 2020. Fiat Egea maintained its market leadership (5 years in a row), supported by its improved value proposition as a local PC and solid track record in the market.
Sınıflandırma: Genel; Classification: Public PAGE 31 FIAT BRAND DOMESTIC LV MARKET PERFORMANCE Light Commercial Vehicle Market Share
2020 2019
39,9%
34,2% 27,6%
20,8%
10,5% 7,4% 6,3% 5,5% 4,7% 4,4% 3,2% 3,2% 3,0% 3,5%
FORD FIAT VW PEUGEOT CITROEN MERCEDES DACIA FORD FIAT VW PEUGEOT MERCEDES RENAULT CITROEN Source: ODD Source: ODD
In 2020, domestic LCV market share of Fiat brand recovered substantially by 6.8pp y/y to 27.6%. This was mainly due to normalization with the expiry of scrap incentives as well as better competitive position as a local producer.
Sınıflandırma: Genel; Classification: Public PAGE 32 FIAT BRAND DOMESTIC LV MARKET PERFORMANCE PC & LCV Combined Market Share
2020 2019
17,8% 15,9% 13,1% 13,6% 12,0% 10,1% 9,8% 8,4% 6,0% 5,7% 5,2% 5,1% 5,0% 4,4% 3,6% 4,2% 3,7%
FIAT RENAULT FORD VW PEUGEOT TOYOTA OPEL CITROEN FIAT RENAULT VW FORD PEUGEOTTOYOTAHYUNDAI DACIA OPEL Source: ODD Source: ODD
Fiat brand solidified its market leadership position with 17.8% market share, up 1.9pp y/y in 2020. Tofaş market share including premium brands expanded by 2pp y/y to 18.4%. Combined market share of Stellantis (FCA + PSA) had reched to 32.1% in 2020 (vs. 29.2% in 2019)
Sınıflandırma: Genel; Classification: Public PAGE 33 • Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 34 EUROPEAN MARKET PC & LCV Registrations
PC Market (EU + UK) LCV Market (EU + UK)
Total European -21.5% -24,3% y/y Total European -18,0% y/y PC Market -19.2% LCV Market -19.1% -16.1% 636K 4.498K -20.0% -29,4% -12.2%
-25.5% 514K 478K 3.607K
3.530K -27.9% -26.5%
-32,4% 401K -14.7% 366K 2.918K 305K 293K 2.311K 268K 2.214K 215K 1.916K 187K 1.650K 1.631K 158K 160K 1.381K 1.258K 851K Rest of FRANCE UK GERMANY SPAIN ITALY Rest of GERMANY UK FRANCE ITALY SPAIN Europe 2019 2020 Europe 2019 2020 Source: ACEA Source: ACEA European (EU + UK) PC market plunged by 24% y/y in 2020, due to lockdowns related with Covid-19. Among major markets, Spain fared the worst while Germany fared relatively better. The introduction of scrap incentives in 3Q20 partially supported demand. LCV markets were also weak in EU, down 18% y/y in 2020, faring slightly better than PC demand partly attributable to higher e-commerce activity. The pace of contraction had slowed down in 2H of the year while all the major markets in EU were in negative territory in 2020.
Sınıflandırma: Genel; Classification: Public PAGE 35 TOFAŞ EXPORTS Segment Evolution - 2020
243,8K -39%
194,1K -43% -35% 133,4K 117,9K 107,2K 110,5K 86,9K
61,5K 56,4K
Passenger Cars Light Commercial Vehicles Total
2018 2019 2020 In 2020, Tofaş export volumes contracted by 39% y/y mainly stemming from lock-downs related with Covid-19. However; the contraction has eased notably in 4Q20 with export volumes resuming y/y growth in November, on the back of introduction of scrap incentives coupled with easing of lock-downs in Europe.
Sınıflandırma: Genel; Classification: Public PAGE 36 TOFAŞ EXPORTS Export Volumes - Monthly 28,2K 26,2K 24,0K 23,5K 23,4K 22,9K 21,1K 21,0K 20,4K 19,6K 19,5K 19,4K 19,0K 17,9K 17,9K 17,9K 15,8K 15,6K 15,5K 15,3K 15,2K 13,9K 13,5K 13,2K 12,3K 11,3K 11,0K 10,9K 10,6K 10,2K 9,3K 6,8K 5,6K 1,9K 5,3K 0,7K
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2019 2020
Sınıflandırma: Genel; Classification: Public PAGE 37 TOFAŞ EXPORTS Volume Breakdown
2020 Italy 2019 Italy France France
Spain Spain 5,7% 4,6% Poland 6,8% Poland 13,2% 5,6% 32,3% Germany 35,2% Germany
8,8% Total units: Portugal 12,4% Total units: Portugal
118K UK 194K UK 2,6% 9,6% Rest of Europe Rest of Europe 4,9% 6,6% 1,6% 3,0% N. America 5,8% 8,5% N. America 6,4% 5,4% 7,4% 7,1% 6,5% MENA MENA
Other Other
Sınıflandırma: Genel; Classification: Public PAGE 38 SHIPMENTS Tofaş Shipment Volumes by Model
Exports 2020 2019 Δ Domestic Market 2020 2019 Δ
Tipo 60.840 93.201 -32.361 Egea 90.494 54.638 35.856 Sedan 19.153 23.160 -4.007 Sedan 79.371 51.567 27.804 Hatchback 25.982 42.822 -16.840 Hatchback 10.012 2.742 7.270 Station wagon 15.705 27.219 -11.514 Station wagon 1.111 329 782
Doblo 33.387 56.058 -22.671 Doblo 23.952 9.519 14.433
RAM Promaster City 10.324 11.340 -1.016 MCV 13.335 33.505 -20.170 Fiorino 16.867 8.239 8.628 Others 17 42 -25 Imported Vehicles 10.263 4.783 5.480 Exports Total 117.903 194.145 -76.242 Domestic Total 141.576 77.179 64.397
TOTAL SHIPMENTS 259.479 271.324 -11.845
Sınıflandırma: Genel; Classification: Public PAGE 39 • Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 40 FINANCIAL PERFORMANCE Financial Highlights (2020)
Shipments - Units Revenue - mn TL
2020 118K 142K 259K 2020 10.821 12.736 -4% +25%
2019 194K 77K 271K 2019 13.301 5.596 18.897
Export Domestic Export Domestic
EBITDA - mn TL Profit Before Tax - mn TL
2020 3.026 2020 1.831 +22% +26%
2019 2.480 2019 1.457
Sınıflandırma: Genel; Classification: Public PAGE 41 FINANCIAL PERFORMANCE Revenue (mn TL)
+68% y/y revenue growth Domestic: +113%; Export: +33%
9.198
6.860 4.100 5.289 5.468 2.538 4.447 3.981 4.159 3.077 3.051 4.034 3.041 3.171 5.097 3.019 1.142 4.323 2.391 1.909 963 1.255 987 1.407 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Domestic Export
In 4Q20, consolidated revenue of Tofas further accelerated to 68% YoY to a quarterly all-time high level of 9.2bn TL driven by resumption of export revenue growth and sustained robust domestic market performance. Export revenue growth was driven by stabilization of volumes coupled with stronger EUR/TRY while domestic revenue maintained its strong momentum. Overall, 2020 consolidated revenue growth stood at 25% mainly owing to outstanding performance in domestic LV market with disciplined pricing.
Sınıflandırma: Genel; Classification: Public PAGE 42 FINANCIAL PERFORMANCE Profitability (mn TL)
Gross Profit Operating Profit In 2020, gross margin expanded 0.4pp y/y at 13.6%. Higher domestic mix and 16,2% pricing discipline were the main drivers 10,9% 13,3% 13,4% 12,7% 13,0% 9,4% 9,7% for the improvement despite the 8,8% 8,5% operational challenges due to Covid- 1.237 895 19. 890 694 648 592 495 463 391 332 Operating profit margin enhanced by 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 0.5pp y/y reaching to 9.6% in 2020, in parallel to gross margin improvement Gross Profit Gross Margin Operating Profit Operating Margin
EBITDA Profit Before Tax In 2020, PBT margin was slightly better (up 0.1pp y/y) at 7.8%. 17,8% 9,5% 13,5% 8,2% 7,8% 8,0% 12,2% 7,0% 11,3% 12,1%
1.191 644 550 773 448 665 599 542 346 291
4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20
EBITDA EBITDA Margin PBT PBT Margin
Sınıflandırma: Genel; Classification: Public PAGE 43 FINANCIAL PERFORMANCE Net Profit (mn TL)
9,5% 7,6% 8,2% 7,8% 7,8% 7,4% 6,9%
1.784 1.482
639 450 510 346 288
4Q19 1Q20 2Q20 3Q20 4Q20 2019 2020
Net Profit Net Profit margin
4Q20 net profit surged by 42% y/y at 639mn TL, all-time high quarterly level while full year growth was realized at 20% y/y, with a bottom-line of 1.8bnTL.
Sınıflandırma: Genel; Classification: Public PAGE 44 FINANCIAL PERFORMANCE Income Statement
mn TL 2019 2020 Δ
Net Sales 18.897 23.557 +24.7% Gross Profit 2.499 3.214 +28.6% Operating Profit 1,720 2,267 +31,8% EBITDA 2,480 3,026 +22.0% Profit Before Tax 1,457 1,831 25.7% Net Profit 1,482 1,784 20.4% Gross Margin % 13,2% 13,6% +0,4pp Operating Margin % 9.1% 9.6% +0.5pp EBITDA % 13,1% 12,8% -0.3pp Profit Before Tax Margin % 7.7% 7.8% +0.1pp Net Margin % 7,8% 7,6% -0.2pp
Sınıflandırma: Genel; Classification: Public PAGE 45 FINANCIAL PERFORMANCE Balance Sheet - Assets & Liabilities (mn TL)
Current Assets 31.12.2020 31.12.2019 Δ Current Liabilities 31.12.2020 31.12.2019 Δ
Cash and Cash Equivalents 4.251 2.826 1.425 Short-term Financial Liabilities 50 25 25
Inventory 1.524 749 775 S.T. Portion of L.T. Financial 2.777 1.822 955 Liabilities Trade Receivables 5.493 2.145 3.348 Trade Payables 7.484 3.885 3.599 S.T. Consumer Financing Loans 1.400 1.088 312
Other Current Assets 173 162 11 Other Current Liabilities 570 395 175
Non-Current Assets 31.12.2020 31.12.2019 Δ Non-Current Liabilities 31.12.2020 31.12.2019 Δ
Fixed Assets 2.037 2.122 -85 Long-term Financial Liabilities 3.863 2.104 1.759 Intangible Assets 1.880 1.659 221 Other Long-term Liabilities 264 249 15 L.T. Consumer Financing Loans 1.460 929 531
Other Non-current Assets 1.257 1.140 117 Sh. Equity 4.469 4.329 140
Total Assets 19.476 12.809 6.667 Total Equity & Liabilities 19.476 12.809 6.667
Sınıflandırma: Genel; Classification: Public PAGE 46 FINANCIAL PERFORMANCE Financial Position & Working Capital (mn EUR)
Financial Position Dec’20 Sep’20 Jun’20 Dec’19 Sep’19 Jun’19 Dec’18 Financial Assets 472 440 270 425 367 472 396 KFK -Consumer Loans Granted 317 262 254 303 280 304 380 KFK – Financial Liabilities 310 260 238 271 279 312 377 Tofaş Financial Liabilities 430 526 501 320 427 449 525 Net Financial Position 49 -83 -215 137 -59 15 -125 of which: Factoring - - - 20 64 54 84
Financial position remains robust following temporary hiccup from Covid-19 during the year.
Working Capital Dec’20 Sep’20 Jun’20 Dec’19 Sep’19 Jun’19 Dec’18 TradeReceivables 604 484 484 321 348 341 348 Inventory 168 148 152 112 159 165 179 OtherReceivables 19 12 9 24 35 22 42 TradePayables 822 639 499 582 513 659 546 Other Liabilities 32 18 37 30 29 29 32 Net Working Capital -63 -13 109 -155 - -160 -10 of which: Factoring - - 20 64 54 84
Solid net working capital management in 2020 despite the challenging environment due to Covid-19.
Sınıflandırma: Genel; Classification: Public PAGE 47 • Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 48 INVESTMENTS (mn €)
2020 2019 2018 2017
Structural 7 18 29 31
Minicargo 6 12 7 13
Doblo & RAM ProMaster City 11 25 22 24
Egea/Tipo Sedan, HB & SW 85 52 37 89
TOTAL 108 107 95 157
Sınıflandırma: Genel; Classification: Public PAGE 49 AGENDA
• Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 50 OUTLOOK 2021
2021E
Domestic Light Vehicle Market (PC+LCV) 700K-750K units
Tofaş Domestic Retail Sales 120K-135K units
Export Shipments 150K-165K units
Production Volume 265K-290K units
Investments €100 M
Sınıflandırma: Genel; Classification: Public PAGE 51 APPENDICES
Sınıflandırma: Genel; Classification: Public PAGE 52 STELLANTIS DOMESTIC LV (PC & LCV) MARKET SHARE (2020)
PC market share
STELLANTIS 29,8%
PC & LCV market share FCA 16,5% PEUGEOT 6,0% STELLANTIS 32,1% OPEL 3,7% CITROEN 3,6%
FCA 18,4%
PEUGEOT 5,7% LCV market share OPEL 4,4% STELLANTIS 37,1% CITROEN 3,6% FCA Source: ODD 27,6% PEUGEOT 4,4% CITROEN 3,2% OPEL 1,9%
Source: ODD
Sınıflandırma: Genel; Classification: Public PAGE 53 DOMESTIC MARKET SHARE PC Market Shares (Monthly)
21,7% 21,2% 20,2% 19,5% 19,2% 19,3% 18,4% 18,7% 18,7% 17,5% 17,7% 17,0% 17,4% 17,1% 17,4% 16,9% 16,5% 16,1% 16,4% 16,6% 16,2% 16,1% 16,4% 15,7% 15,5% 15,0% 17,4% 15,3% 14,5% 14,2% 14,1% 14,4% 13,9% 13,6% 14,5%13,8% 13,1% 12,7% 12,9% 14,7% 12,9% 12,5% 12,9% 12,8% 11,5% 11,0% 10,4% 10,7% 10,4% 11,9% 9,7% 9,7% 10,0% 9,5% 11,1% 9,2% 9,6% 9,2% 8,9% 8,8% 10,2% 8,3% 8,0% 9,1% 7,7% 8,9% 8,2% 9,2% 9,9% 7,6% 9,3% 9,4% 10,3% 6,6% 6,5% 6,1% 6,0% 6,7% 7,2% 6,0% 5,6% 6,2% 7,0% 7,0% 4,8% 6,3% 6,3% 6,1% 6,5% 6,4% 5,9% 6,7% 5,3% 5,7% 5,5% 5,6% 5,1% 5,0% 6,3% 5,0% 3,1% 5,1% 4,8% 4,9% 4,9% 4,0% 4,9% 4,7% 4,5% 4,0% 4,4% 4,3% 4,2% 3,5% 3,9% 3,5%3,9% 3,0% 3,1%
Jan19 Feb19 Mar19 Apr19 Jun19 Jul19 Aug19 Sep19 Oct19 Nov19 Dec19 Jan20 Feb20 Mar20 Apr20 Jun20 JuL20 Aug20 Sep20 Oct20 Nov20 Dec20 May19 May20
Fiat Renault VW Hyundai Peugeot Toyota
Sınıflandırma: Genel; Classification: Public PAGE 54 DOMESTIC MARKET SHARE LCV Market Shares (Monthly)
43,9% 43,3% 42,4% 42,9% 41,6% 42,1% 41,0% 40,4% 39,3% 38,7%
35,4% 36,0% 36,0% 35,7% 35,5% 35,1% 34,4% 34,9% 35,0% 32,8% 31,2% 31,7% 31,8% 30,2% 28,9% 27,6% 28,0% 27,5% 26,3% 26,8% 26,1% 25,5% 25,3% 24,8% 24,4% 23,3% 23,1% 21,2% 20,8% 20,0% 20,2% 20,0% 18,2% 18,0% 17,7% 16,6% 17,1% 15,6% 15,5%
11,7% 11,7% 13,6% 12,2% 10,9% 10,5% 10,9% 9,6% 9,7% 10,1% 10,3% 8,7% 9,5% 7,70% 11,70% 8,50% 8,20% 7,7% 7,4% 8,00% 8,00% 7,3% 6,60% 5,8% 4,90% 4,0% 4,50% 3,3% 7,50%3,6% 3,1% 5,80% 6,40% 5,90% 2,2% 6,10% 5,00% 5,00% 4,80% 1,0% 3,60% 3,60% 3,60% 4,30% 2,30% 2,40% 2,30% Jan19 Feb19 Mar19 Apr19 Jun19 Jul19 Aug19 Sep19 Oct19 Nov19 Dec19 Jan20 Feb20 Mar20 Apr20 Jun20 Jul20 Aug20 Sep20 Oct20 Nov20 Dec20 May19 May20
Fiat Ford VW Renault Peugeot
Sınıflandırma: Genel; Classification: Public PAGE 55 DOMESTIC MARKET SHARE PC & LCV Market Shares (Monthly)
21,9%
20,3% 20,6% 19,4% 19,1% 18,2% 18,1% 17,4% 17,4% 16,6% 16,4% 17,6% 16,3% 17,5% 15,1% 15,4% 15,3% 17,5% 16,8% 16,0% 14,6% 14,2% 16,0% 15,9% 14,2% 16,2% 13,8% 13,7% 15,4% 13,7% 14,9% 13,1% 13,5% 15,0% 14,0% 12,0% 12,5% 12,5% 11,8% 13,9% 14,0% 13,7% 14,0% 11,1% 12,7% 13,1% 11,9% 12,7% 13,1% 11,7% 10,5% 12,7% 11,3% 11,8% 12,2% 12,1% 12,0% 11,6% 11,6% 11,8% 11,2% 11,4% 10,5% 10,3% 10,4% 10,8% 10,3% 10,5% 10,5% 10,3% 9,6% 9,9% 10,7% 9,8% 9,2% 9,5% 9,5% 7,2% 8,7% 8,7% 8,8% 6,1% 8,6% 8,5% 8,4% 8,3% 8,1% 6,4% 8,2% 8,0% 8,1% 8,4% 7,7% 7,5% 7,5% 6,6% 7,1% 7,2% 7,1% 6,6% 6,6% 6,4% 6,3% 6,3% 6,0% 6,1% 6,3% 5,5% 5,7% 5,6% 5,6% 5,7% 5,0% 5,3% 4,6% 4,2% 4,2% 3,8% 3,5% 2,8%
Jan19 Feb19 Mar19 Apr19 Jun19 Jul19 Aug19 Sep19 Oct19 Nov19 Dec19 Jan20 Feb20 Mar20 Apr20 Jun20 Jul20 Aug20 Sep20 Oct20 Nov20 Dec20 May19 May20
Fiat Renault VW Ford Peugeot
Sınıflandırma: Genel; Classification: Public PAGE 56 First in Turkey: Smart Insurance from Fiat
Tofaş & Aksigorta collabarate to create Connect Insurance, which makes a major difference at automotive sector as the first ever application in Turkey
Connect insurance will be sold with car sales
Value Proposition: Drive safe pay less/ pay as you drive; creates additional value for the customer with the obtained information from connect device.
Sınıflandırma: Genel; Classification: Public PAGE 57 CONTACT
INSTITUTIONAL INVESTOR RELATIONS Mehmet A. Ağyüz, CFA Investor Relations and Risk Manager
+90 212 275 3390 / 2751 +90 212 216 4028 [email protected] Büyükdere Caddesi No:145 Tofaş Han 34394 Zincirlikuyu / ISTANBUL - TURKEY
Sınıflandırma: Genel; Classification: Public PAGE 58 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 changes in underlying assumptions that could cause actual results to differ materially. Neither Tofaş nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from use of this presentation.
Sınıflandırma: Genel; Classification: Public PAGE 59