TOFAŞ INVESTOR PRESENTATION AGENDA
• Company Overview • 2019 Performance • Key Highlights • Production & Shipments • Domestic Market • Export • Financial Performance • Investments • Outlook
Sınıflandırma: Genel; Classification: Public PAGE 2 COMPANY OVERVIEW Shareholder Structure
1968 - 2018
Founded in 1968 as a JV by Koç Holding & FCA (Fiat Chrysler Automobiles)
2018 marks 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 ~80% 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 2017 FY: 384,198 units Blue Collar : 5,192 Covered: 352.477 m² with 3 shifts labor 2018 FY: 301,750 units White Collar : 1,607 Total : 6,799 *as of Sep’19
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 achieved a level 4 rating in its “quality control” score, thereby boosting its WCM rating to 77. This successful performance means that Tofaş retains its position among the top three plants in the FCA system to reach Gold Level.
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 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
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 2021. Contract size for RAM ProMaster City: minimum of 175.000 units.
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 was going to be produced until 2021 with a take or pay allocation of 35K units per annum. Recently extended the contract for additional three years with a facelift investment of around EUR20mn PSA has discontinued production at the end of 2017, which is not included in this figure.
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 three years in a row in 2016 & 2017 & 2018 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. Recent prolongation of the contract until 2024 - end with a facelift investment of USD 225mn. Production of facelifted versions is expected to begin in 4Q20. 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
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. Domestic LV market leader for 4 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. Recent prolongation of contract until 2024-end. SOP: Hatchback production started in April 2016 - Station Wagon production started in July 2016. Station Wagon 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 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 17 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 18 • Company Overview • 2019 Performance • Key Highlights • Production & Shipments • Domestic Market • Export • Financial Performance • Investments • Outlook
Sınıflandırma: Genel; Classification: Public PAGE 19 KEY HIGHLIGHTS
Strong profitability with 80bps expansion in PBT margin reaching to 7.7% in 2019. Healthy cash conversion with operating cash flow at ~2.5x net income last year.
Accomplished domestic light vehicle market leadership with sizable market share gains in 2019. Fiat was the only brand registering volume growth in passenger car market, thanks to sustained leading position of Egea.
Tofas plant achieved the highest score in World Class Manufacturing (i.e. quality, cost, delivery, safety, environment) among 400 plants under WCM umbrella within FCA universe in Dec’19.
The extension of MCV (mini cargo vehicle) contract for three years until the end of 2024.
Egea/Tipo facelift investment is on track with the production of new versions expected to begin in 4Q20.
Sınıflandırma: Genel; Classification: Public PAGE 20 • Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 21 PRODUCTION Turkish Automotive Industry & Tofaş
Turkish Automotive Production (2019) Tofaş Production (2019)
302K 19,5% 17,9% 18,0% 18,1% 264K 15,6% 1.550K 1.461K +13.9% (YoY change) 1.057K 735K 65K 76K 74K 362K 56K 59K
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019
Source: OSD Turkey Tofaş %
In 2019, total Turkish motor vehicle production declined by 5.7% YoY to 1.46mn units. Tofaş constituted 18.1% of the industry with a production of 264.2K units in 2019 (down 12.4% YoY). 4Q19 production volume of Tofas resumed growth at 13.9% YoY, reaching to 73.7K units (3Q19: -5%; 2Q19: -17% YoY; 1Q19: -33% YoY). Tofaş 2019 production mix; PC: 55% and LCV: 45% vs. 49% PC and 51% LCV in 2018.
Sınıflandırma: Genel; Classification: Public PAGE 22 SHIPMENTS Tofaş Total Shipment Units
312K
271K
244K +8% 194K (YoY growth)
71K 76K 77K 59K 60K 44K 51K 58K 44K 48K 68K 77K 33K 21K 15K 17K 12K 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019
Domestic Export
Total unit shipments of Tofaş recovered by 8% YoY in 4Q19, reaching to 77K units (3Q19: -3% YoY; 2Q19: -17% YoY), with a full year slide of 13% at 271K units (vs. -19% in 9M19). Sizable acceleration in domestic volume growth was the main driver of total volume recovery.
Sınıflandırma: Genel; Classification: Public PAGE 23 SHIPMENTS Tofaş Shipment Volumes by Business – 2019
19,1K 24,8% 106,0K 86,9K 39,1% 44,8% DOMESTIC + EXPORT 107,2K = TOTAL 55,2% 165,3K 60,9% 58,0K 75,2%
PC LCV PC LCV PC LCV
In 2019, the most notable change in shipment mix was observed in domestic volumes with ~13pp YoY increase in passenger car mix reaching to 75% of domestic shipments, mainly attributable to the incentive scheme, which was in place last year.
Sınıflandırma: Genel; Classification: Public PAGE 24 SHIPMENTS Tofaş Shipment Volumes by Model
Exports 2019 2018 Δ Domestic Market 2019 2018 Δ
Linea - 1.461 -1.461
Tipo Sedan 23.160 24.600 -1.440 Egea Sedan 51.567 32.985 18.582
Tipo HB & SW 70.041 89.578 -19.537 Egea HB & SW 3.071 2.403 668
Doblo 56.058 65.077 -9.019 Doblo 9.519 11.709 -2.190 Cargo/Combi 51.282 56.691 -5.409 Cargo/Combi 9.155 10.802 -1.647 Panaroma 4.776 8.386 -3.610 Panaroma 364 907 -543
GM (Opel, Vauxhaul) - 11.956 -11.956
RAM Promaster City 11.340 15.774 -4.434
MCV Fiat 33.504 36.811 -3.307 Fiorino 8.239 13.170 -4.931 Cargo/Combi 24.292 26.012 -1.720 Cargo/Combi 7.960 12.287 -4.327 Panaroma 9.212 10.799 -1.587 Panaroma 364 883 -519
Others 42 37 5 Imported Vehicles 4.783 5.938 -1.155
Exports Total 194.145 243.833 -49.688 Domestic Total 77.179 67.666 9.513
Total Shipments 271.324 311.499 -40.175
Sınıflandırma: Genel; Classification: Public PAGE 25 • Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 26 DOMESTIC MARKET Segment Evolution (12M)
4Q19 Domestic LV Market 956,2K TOTAL: 197.8K (+26% YoY) PC: 72.3K (+26% YoY) LCV: 13.9K (+16% YoY) -22,8% 722,8K 3Q19 Domestic LV Market -20,4% 620,9K TOTAL: 86.2K (-22% YoY) PC: 72.3K (-17% YoY) 486,3K LCV: 13.9K (-41% YoY) 479,1K
387,3K -31,8%
233,4K
134,6K 91,8K
Passenger Cars Light Commercial Vehicles Total
2017 2018 2019 Source: OSD
Sınıflandırma: Genel; Classification: Public PAGE 27 DOMESTIC MARKET PC & LCV Retail Sales - Monthly 90,5K 136,2K 100,9K 58,2K 91,8K 85,4K 83,7K 82,3K 77,7K 76,3K 76,0K 49,1K 73,8K 72,8K 72,5K 71,4K 71,1K 42,0K 58,2K 52,7K 51,0K 49,2K 47,0K 47,0K 42,7K 35,3K 35,1K 34,3K 33,0K 31,0K 26,2K 24,9K 14,4K 17,9K 23,0K 21,6K
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017 2018 2019 Source: OSD
Total domestic market retail sales declined by 22.8% YoY, reaching to 479.1K units in 2019. Domestiv LV demand has begun to recover in September thanks to i. declining loan rates on the back of stabilising macro conditions and, ii. pent-up demand.
Sınıflandırma: Genel; Classification: Public PAGE 28 TOFAS DOMESTIC MARKET PERFORMANCE Segment Evolution (Retail)
4Q19 Domestic Retail LV 122,8K Shipments TOTAL: 34.6K (+62% YoY) PC: 25.1K (+74% YoY) LCV: 9.5K (+37% YoY)
78,7K 72,8K 64,1K 59,6K 58,7K +8% 44,4K -33%
+34% 28,4K
19,1K
Passenger Cars Light Commercial Vehicles Total
2017 2018 2019 Source: OSD
Sınıflandırma: Genel; Classification: Public PAGE 29 TOFAŞ DOMESTIC MARKET PERFORMANCE PC & LCV Retail Sales - Monthly 19,0K 18,6K 12,4K 12,3K 11,3K 11,0K 10,9K 10,5K 9,8K 9,7K 9,6K 10,0K 9,5K 8,8K 8,7K 8,4K 8,1K 6,8K 6,4K 6,3K 6,0K 5,9K 5,7K 5,4K 5,3K 5,3K 5,1K 2,1K 1,8K 4,3K 4,0K 3,9K 3,4K 3,1K 2,2K 2,6K
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017 2018 2019 Source: OSD
Tofaş domestic retail sales notably outperformed total domestic LV demand with 8% YoY growth in 2019 vs. 23% contraction in domestic LV demand last year.
Sınıflandırma: Genel; Classification: Public PAGE 30 FIAT BRAND DOMESTIC MARKET PERFORMANCE Passenger Car Market Share
2019 2018
15,8% 15,7% 14,8%
10,0% 10,2% 8,6% 6,6% 6,3% 6,0% 6,0% 5,9% 5,3%
RENAULT FIAT VW TOYOTA PEUGEOT HYUNDAI RENAULT VW FIAT HYUNDAI TOYOTA DACIA Source: ODD Source: ODD
Passenger car market share of Fiat brand surged by 6.2pp YoY, reaching to 14,8% in 2019. Fiat Egea maintained its market leadership (4 years in a row), supported by its improved value proposition as a local PC, incentives and solid track record. Fiat was the only brand that registered YoY volume growth in domestic PC market in 2019.
Sınıflandırma: Genel; Classification: Public PAGE 31 FIAT BRAND DOMESTIC MARKET PERFORMANCE Light Commercial Vehicle Market Share
2019 2018
34,2%
31,0% 20,8% 21,1%
10,5% 12,7% 6,3% 5,5% 6,6% 5,9% 4,7% 3,9%
FORD FIAT VW PEUGEOT MERCEDES RENAULT FORD FIAT VW RENAULT MERCEDES PEUGEOT Source: ODD Source: ODD
In 2019, domestic LCV market share of Fiat brand was flattish YoY (down 30bps), at 20.8%. Domestic LCV market share had started recover in 2H19, post the expiry of SCT incentives (June 30, 2019),
Sınıflandırma: Genel; Classification: Public PAGE 32 FIAT BRAND DOMESTIC MARKET PERFORMANCE PC & LCV Combined Market Share
2019 2018
15,9% 13,6% 13,8% 11,3% 10,8% 10,5% 10,1% 9,8%
6,0% 5,1% 5,0% 5,5% 5,4%
FIAT RENAULT VW FORD PEUGEOT TOYOTA HYUNDAI RENAULT FIAT VW FORD TOYOTA HYUNDAI Source: ODD Source: ODD
Fiat brand had substantially improved its market share with 4.6pp YoY increase, reaching to 15.9% in 2019. Tofaş market share including premium brands expanded by 4.6pp YoY to 16.4% 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 - 2019
EU PC Market EU LCV Market
-1,9% Total European +1,2% YoY Total European +2,8% YoY PC Market +0.6% LCV Market +5.0% +4,5% 638K 634K 4.498K 4.416K +2.4% -2,4% 1,9% +6,9% 3.607K 0.3% 478K +0,3% 3.436K 458K -4,8% +3.2% 366K 357K 305K 2.367K 2.311K 285K 2.214K 2.173K 1.916K 1.911K 215K 215K 187K 181K 1.321K 1.258K
Rest of GERMANY UK FRANCE ITALY SPAIN Rest of FRANCE UK GERMANY SPAIN ITALY Europe 2018 2019 Europe 2018 2019
Source: ACEA Source: ACEA
European PC market ascended by 1.2% YoY in 2019, thanks to robust growth in 4Q19. Germany, France and Italy deviated positively from other main markets last year. LCV markets remained healthy in EU, up 2.8% YoY in 2019, following a temporary hiccup post WLTP emission testing regime (effective Sep’19). All the major markets in EU posted growth in 2019.
Sınıflandırma: Genel; Classification: Public PAGE 35 TOFAŞ EXPORTS Segment Evolution - 2019
270,8K -20,4% 243,8K
194,1K -21,3% -19,6% 152,1K 133,4K 118,7K 107,2K 110,5K 86,9K
Passenger Cars Light Commercial Vehicles Total
2017 2018 2019 In 2019, Tofaş export volume contraction slightly decelerated to 20% YoY at 194K units (vs. 22% YoY decline in 9M19). The YoY slide was 16% excluding Opel/Vauxhall agreement. In addition to the ongoing shift in consumer preferences, 4Q19 export shipments were also negatively impacted from market reallocation in order to meet strong domestic demand. Export volume mix remained stable YoY with PC: 45% and LCV: 55% in 2019.
Sınıflandırma: Genel; Classification: Public PAGE 36 TOFAŞ EXPORTS Export Volumes - Monthly 29,8K 29,0K 28,2K 27,1K 26,2K 24,4K 24,1K 24,0K 23,8K 23,5K 23,4K 22,9K 22,4K 22,3K 21,1K 21,0K 20,4K 19,8K 19,7K 19,6K 19,5K 19,4K 19,2K 19,0K 17,9K 17,9K 15,8K 15,6K 15,3K 15,2K 13,2K 11,0K 10,6K 10,2K 9,2K 6,8K
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017 2018 2019
Sınıflandırma: Genel; Classification: Public PAGE 37 TOFAŞ EXPORTS Volume Breakdown
2019 Italy 2018 Italy France France
Spain Spain 4,6% 2,7% 6,8% 4,8% Poland 6,2% Poland 5,6% 35,2% Germany Germany 36,9% 11,8% 12,4% Total units: Portugal Total units: Belgium
194K UK 2,4% 244K UK 2,6% 4,4% Rest of Europe Rest of Europe 4,9% 5,9% 5,8% 8,5% N. America US - Canada 5,6% 9,2% 7,1% 6,5% 10,1% MENA MENA
Other Other
Sınıflandırma: Genel; Classification: Public PAGE 38 • Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 39 FINANCIAL PERFORMANCE Financial Highlights (2019)
Shipments - Units Revenue - mn TL
2019 194K 77K 271K 2019 13.301 5.596 18.897 -13% +2%
2018 244K 68K 311K 2018 14.455 4.148 18.603
Export Domestic Export Domestic
EBITDA - mn TL Profit Before Tax - mn TL
2019 2.480 2019 1.457 -2% +13%
2018 2.533 2018 1.291
Sınıflandırma: Genel; Classification: Public PAGE 40 FINANCIAL PERFORMANCE Revenue - mn TL
+14% YoY revenue growth Domestic: +84%; Export:-12%
5.289 5.468 5.050 4.779 4.441 4.333 3.981 4.159 3.077 4.034 3.846 3.478 3.440 3.691 3.019 3.171
2.391 1.205 1.301 1.255 1.001 642 963 987
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Domestic Export
In 4Q19, consolidated revenue of Tofas grew by 14% YoY (-4% YoY in 3Q19) to 5.5bn TL driven by strong domestic market performance. 4Q19 domestic revenue growth of 84% YoY was driven by robust shipment growth as well as good pricing. Export revenue were negatively impacted by lower volumes. Overall, 2019 consolidated revenue growth stood at 2% owing to recovery in domestic volumes, stronger EUR/TRY and pricing.
Sınıflandırma: Genel; Classification: Public PAGE 41 FINANCIAL PERFORMANCE Profitability - mn TL
Gross Profit Operating Profit In 2019, gross margin was down 0.3pp YoY at 13.2%. Lower LCV mix in domestic market diluted profitability 14,6% 13,7% 13,2% 9,8% 12,7% 12,7% 9,3% 9,1% 9,2% despite strict cost control and 8,5% disciplined pricing in domestic market
654 672 694 463 582 550 406 373 440 381 EBITDA margin slided by 0.5pp YoY to 13.1% in 2019, in parallel to gross 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 margin performance.
Gross Profit Gross Margin Operating Profit Operating Margin In 2019, PBT margin expanded by EBITDA Profit Before Tax 0.8pp YoY, reaching to 7.7% with 13% PBT growth during the same period. 8,1% 8,2% 15,3% 7,9% 13,4% 13,7% 6,5% 12,0% 12,2% 5,8%
419 448 641 637 665 321 609 570 278 268
4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19
EBITDA EBITDA Margin PBT PBT Margin
Sınıflandırma: Genel; Classification: Public PAGE 42 FINANCIAL PERFORMANCE Net Profit - mn TL
7,8% 8,2% 8,2% 7,7% 7,2% 7,2% 6,8%
1.482 1.330
408 450 327 325 298
4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019
Net Profit Net Profit margin
4Q19 net profit surged by 38% YoY at 450 Mn TL with 1.4pp YoY improvement in net margin at 8.2%. In 2019, net profit margin was up 0.6pp YoY, reaching to 7.8% with 11% YoY growth in net profit.
Sınıflandırma: Genel; Classification: Public PAGE 43 FINANCIAL PERFORMANCE Income Statement - 2019
mn TL 2019 2018 Δ
Net Sales 18.897 18.603 +1,6% Gross Profit 2.499 2.516 -0.7% Operating Profit 1,720 1,758 -2,2% EBITDA 2,480 2,533 -2.1% Profit Before Tax 1,457 1,291 12.8% Net Profit 1,482 1,330 11.4% Gross Margin % 13,2% 13,5% -0,3pp Operating Margin % 9.1% 9.4% -0.3pp EBITDA % 13,1% 13,6% -0.5pp Profit Before Tax Margin % 7.7% 6,9% +0.8pp Net Margin% 7,8% 7,2% +0,6pp
Sınıflandırma: Genel; Classification: Public PAGE 44 FINANCIAL PERFORMANCE Balance Sheet - Assets & Liabilities (mn TL)
Current Assets 31.12.2019 31.12.2018 Δ Current Liabilities 31.12.2019 31.12.2018 Δ
Cash and Cash Equivalents 2.826 2.385 441 Short-term Financial Liabilities 25 444 -419
Inventory 749 1.077 -328 S.T. Portion of L.T. Financial 1.822 2.017 -195 Liabilities Trade Receivables 2.145 2.097 48 Trade Payables 3.885 3.294 591 S.T. Consumer Financing Loans 1.088 1.277 -189
Other Current Assets 162 252 -90 Other Current Liabilities 395 343 52
Non-Current Assets 31.12.2019 31.12.2018 Δ Non-Current Liabilities 31.12.2019 31.12.2018 Δ
Fixed Assets 2.122 2.248 -126 Long-term Financial Liabilities 2.104 2.971 -867 Intangible Assets 1.659 1.579 80 Other Long-term Liabilities 249 226 23 L.T. Consumer Financing Loans 929 1.016 -87
Other Non-current Assets 1.140 1.071 69 Sh. Equity 4.329 3.707 622
Total Assets 12.809 13.002 -193 Total Equity & Liabilities 12.809 13.002 -193
Sınıflandırma: Genel; Classification: Public PAGE 45 FINANCIAL PERFORMANCE Financial Position & Working Capital (mn €)
Financial Position Dec’19 Sep’19 Jun’19 Dec’18 Sep’18 Jun’18 Dec’17 Financial Assets 425 367 472 396 385 449 717 KFK -Consumer Loans Granted 303 280 304 380 348 483 562 KFK – Financial Liabilities 271 279 312 377 340 454 557 Tofaş Financial Liabilities 320 427 449 525 637 528 730 Net Financial Position 137 -59 15 -125 -245 -50 -8 of which: Factoring 20 64 54 84 0 133 153
YoY improvement in financial position mainly stemmed from deleveraging with robust operating cash flow generation.
Working Capital Dec’19 Sep’19 Jun’19 Dec’18 Sep’18 Jun’18 Mar’18 TradeReceivables 321 348 341 348 369 361 336 Inventory 112 159 165 179 246 267 229 OtherReceivables 24 35 22 42 78 72 78 TradePayables 582 513 659 546 647 848 824 Other Liabilities 30 29 29 32 35 43 85 Net Working Capital -155 - -160 -10 11 -191 -267 of which: Factoring 20 64 54 84 0 133 210
Solid net working capital management in 2019.
Sınıflandırma: Genel; Classification: Public PAGE 46 • Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 47 INVESTMENTS (mn €)
2019 2018 2017 2016
Structural 18 29 31 55
Minicargo 12 7 13 15
Doblo & RAM ProMaster City 25 22 24 30
Egea/Tipo Sedan, HB & SW 52 37 89 252
TOTAL 107 95 157 352
Sınıflandırma: Genel; Classification: Public PAGE 48 AGENDA
• Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook
Sınıflandırma: Genel; Classification: Public PAGE 49 OUTLOOK 2020
FY20
Domestic Light Vehicle Market (PC+LCV) 560K-600K units
Tofaş Domestic Retail Sales 78K-84K units
Export Shipments 170K-190K units
Production Volume 240K-265K units
Investments €250 M
Sınıflandırma: Genel; Classification: Public PAGE 50 APPENDICES
Sınıflandırma: Genel; Classification: Public PAGE 51 FINANCING INCENTIVE Details
The financing incentive by state banks is extended until 31.03.2020.
For locally produced passenger cars and commercial vehicles, state banks (Ziraat Bank, Halkbank and Vakifbank) will cooperate with automarkers to offer favorable loan rates for vehicle purchases. Accordingly;
Passenger cars: Loan amount: TRY50K-TRY120K Loan duration: 18-36 months Loan rate (monthly): 0.49%-0.69%
Commercial vehicles; Loan amount: TRY72K-TRY120K Loan duration: 30-60 months Loan rate (monthly): 0.49%-0.69%
Sınıflandırma: Genel; Classification: Public PAGE 52 SHIPMENTS Tofaş Shipment Volumes by Model - 4Q19
Exports 4Q19 4Q18 Δ Domestic Market 4Q19 4Q18 Δ
Tipo Sedan 6.764 5.843 921 Egea Sedan 21.046 12.182 8.864
Tipo HB & SW 17.494 17.806 -312 Egea HB & SW 1,630 589 1,041
Doblo 11.647 12.888 -1.241 Doblo 4.418 2.834 1,584 Cargo/Combi 10.309 11.460 -1.151 Cargo/Combi 4.350 2.709 1,650 Panaroma 1,338 1.428 -90 Panaroma 68 125 -117
RAM Promaster City 1.361 5.992 -4,631
MCV Fiat 6.520 8.615 -1.680 Fiorino 4.276 3.147 1,129 Cargo/Combi 5.198 6.968 -2.095 Cargo/Combi 4.143 3.052 1,091 Panaroma 1.322 1.647 -325 Panaroma 218 95 123
Others 4 8 -4 ImportedVehicles 1,807 1,798 9
Exports Total 44.790 50.785 -5.995 Domestic Total 33.215 20.578 12.637
Total Shipments 77.005 71.363 5.642
Sınıflandırma: Genel; Classification: Public PAGE 53 FIAT DOMESTIC MARKET SHARE PC Market Shares - Monthly
20,2% 19,5% 18,4% 18,7% 17,5% 17,4% 17,5% 17,0% 16,9% 16,4% 16,1% 17,1% 16,6% 15,7% 14,7% 14,5% 14,2% 13,7% 13,9% 14,1% 13,6% 12,7% 12,9% 12,9% 11,5% 11,3% 11,0% 11,1% 10,2% 10,4% 10,7% 11,1% 9,7% 8,9% 8,8% 9,3% 9,5% 8,6%8,4% 8,2% 7,9% 7,8% 9,1% 7,7% 7,2% 9,4% 8,0% 6,1% 8,9% 7,5% 6,2% 6,7% 6,7% 5,0% 6,5% 6,3% 6,3% 4,6% 5,9% 5,3% 5,7% 4,8% 4,0% 6,3% 5,0% 4,9% 4,9% 5,1% 5,0% 4,0% 4,8% 4,4% 6,0% 3,1% 3,2%
Oct18 Nov18 Dec18 Jan19 Feb19 Mar19 Apr19 May19 Jun19 Jul19 Aug19 Sep19 Oct19 Nov19 Dec19
Fiat Renault VW Hyundai Peugeot Toyota
Sınıflandırma: Genel; Classification: Public PAGE 54 FIAT DOMESTIC MARKET SHARE LCV Market Shares - Monthly
41,0% 40,4%
35,4% 36,0% 35,1% 34,4% 34,9% 33,1% 31,2% 31,7% 31,8% 30,1% 27,6% 26,0% 26,3% 24,8% 24,4% 23,3% 22,1% 20,7% 19,9% 20,0% 20,2% 20,0% 18,2% 18,0% 17,7% 17,1% 16,6% 17,1% 15,6% 13,6% 11,7% 12,2% 10,5% 11,7% 10,9% 11,70% 10,5% 9,5% 9,6% 9,7% 9,5% 10,1% 8,7% 7,10% 7,4% 7,50% 8,20% 6,70% 6,30% 8,00% 5,80% 5,90% 6,40% 5,50% 4,40% 7,80% 8,50% 3,60% 7,70% 5,00% 4,50% 5,90% 6,60% 5,50% 4,70% 5,50% 4,80% 4,90% 5,00% 4,80% 4,40% 4,50% 4,80%
Oct18 Nov18 Dec18 Jan19 Feb19 Mar19 Apr19 May19 Jun19 Jul19 Aug19 Sep19 Oct19 Nov19 Dec19
Fiat Ford VW Renault Peugeot Mercedes
Sınıflandırma: Genel; Classification: Public PAGE 55 FIAT DOMESTIC MARKET SHARE PC & LCV Market Shares - Monthly
20,3%
16,6% 17,6% 16,4% 16,8% 16,0% 16,3% 17,4% 15,2% 15,4% 14,8% 16,0% 14,9% 14,6% 14,0%14,2% 15,1% 15,3% 13,9% 12,7% 13,1% 13,8% 11,6% 10,3% 13,1% 10… 9,8% 11,5% 11,7% 12,0% 11,8% 11,3%9,5% 10,2% 11,6% 11,1% 11,2% 10,6% 10,7% 10,5% 10,4% 10,5% 10,5% 10,3% 8,4% 10,3% 9,9% 8,6% 8,8% 9,6% 7,5% 8,8% 9,2% 8,7% 8,3% 8,1% 8,2% 7,2% 6,6% 6,6% 6,4% 6,6% 6,3% 6,3% 6,0% 5,8% 5,5% 5,7% 5,0% 5,0% 5,3% 6,1% 4,6% 4,2% 3,5%
Oct18 Nov18 Dec18 Jan19 Feb19 Mar19 Apr19 May19 Jun19 Jul19 Aug19 Sep19 Oct19 Nov19 Dec19
Fiat Renault VW Ford Peugeot
Sınıflandırma: Genel; Classification: Public PAGE 56 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 57 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 58