2020-INVESTOR PRESENTATION.Pdf
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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).